A deadline looms for a stalled downtown Dayton project, but officials hope this change gives it new life

Fire Blocks project may get new developer as tax credit deadline looms.

A project to transform the Fire Blocks district of downtown Dayton could get some “new blood” from an unnamed developer as a deadline looms for millions in tax credits to be used, CityWide president Brian Heitkamp said.

Work to redevelop the Fire Blocks District has largely centered around the 100 block of East Third Street. The project has not made much progress even though the Ellway Group acquired multiple commercial properties in the area around year or so ago and announced that construction was imminent.

Heitkamp would not say who the potential developer is but said it likely will not be long before an official announcement is made.

“I’m sure it’ll be a matter of weeks, not months,” Heitkamp said. “I just can’t tell you if it will be one or two or three or four weeks.”

» RELATED: Dayton’s Fire Blocks faces deadline, could lose $4.5M in funds

The Fire Blocks district project is part of a larger move to reshape and revitalize the downtown Dayton area. If the project moves forward it will join a number of others, including a renovation of the Dayton Arcade and new construction on the former Montgomery County Fairgrounds.

The new firm that could take over the Fire Blocks venture has the “capacity and the vision” to get the long planned project done, said Sandy Gudorf, president of the Downtown Dayton Partnership.

“We’re making progress on the project, but it will be several weeks (or longer) before its finalized,” Gudorf said.

The Ellway Group’s plan to transform the Elks Building and the Huffman Block building on the 100 block of East Third Street was awarded about $4.5 million in state historic tax credits in June 2016. But the deadline to use the credits is fast approaching.

Earlier this year, the state of Ohio told the group that it had until June 30 to prove it had financing for the rehab work or forfeit the tax credits. The state said the project had not demonstrated “sufficient evidence” of progress.

Lisa Bronwell, tax credit program manager at the state did not return calls Friday for a comment on the latest development on the Fire Blocks project.

» RELATED: Fire Blocks plan to reshape downtown Dayton faces growing pains

Gudorf said the development team is looking at all of the issues related to the redevelopment plan and the tax credits are part of that.

The city of Dayton recently issued a few commercial building permits for interior demolition for properties in the Fire Blocks District.

The district covers multiple blocks but centers around the 100 block of East Third Street. Winfield Scott Gibson, CEO of the Ellway Group, and companies his group control own about nine buildings in and around downtown Dayton.

Gibson could not be reached for comment.

The Fire Blocks developers proposed to overhaul multiple underutilized and vacant commercial buildings to create new housing, swanky restaurants, offices and other amenities. But the projects never got rolling.

The redevelopment efforts hit some stumbling blocks.

A former contractor obtained mechanics liens against the Ellway Group’s properties, alleging nonpayment for work provided. But Gibson sued the contractor, claiming the complaint was based on fraudulent information.

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A creative consulting group that worked with Gibson and the Ellway Group also parted ways. Plans for a new taco and tequila bar at the corner of East Third and Jefferson streets never materialized.

Past proposals shared by the Ellway Group were ambitious, calling for more than $100 million in investments in the district. Wells & Co. Custom Tattoo opened in a ground-floor space of a commercial building in early 2017. The Funk Music Hall of Fame and Exhibition Center opened for business in December.

“It would be significant for East Third Street, connecting Main Street to Webster Station and the Oregon District,” Heitkamp said. “Its been on the drawing board for a while. If there’s a role we can play in the project now that it’s gained a little steam here and has a sense of urgency, then we want to.”

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