The city sold two large, empty commercial buildings on that block for $10 each.
One has become a much-celebrated and popular event venue and office building, while the other is on track to become a tech hub with modern offices and a large number of high-salary jobs, officials said.
JUST IN: Historic downtown building to be re-branded The Manhattan
The city has invested about $965,000 in that block, which is leveraging about $18.7 million in private dollars, Dickstein said.
“In the few times we acquire properties — and it is few, because we know that’s not our role — we have yielded great returns for the city and the citizens,” Dickstein said.
On Monday, Woodard Development announced plans to revitalize the six-story building at 601 E. Third St. into a tech hub with offices.
Last year, the city sold the property, called the J.K McIntire building, to Woodard for $10 after paying $465,000 for it six years earlier.
MORE: Dayton paid $450K for property and sold it for $10. Why the city made that deal.
Woodard Development plans to restore the 55,000-square-foot structure and rename it the Manhattan, which is just the latest project in an area of the city the company has helped transform with new housing, offices, restaurants and other amenities.
Two growing tech companies, Mile Two and Battle Sight Technologies, have committed to occupying space in the Manhattan building.
The investment in the building will likely exceed $10 million when the tenant improvements are complete, Dickstein said.
The building will house about 175 full-time tech jobs with an estimated annual payroll of $12 million, Dickstein said.
The city has long worked to try to facilitate the redevelopment of the 601 E. Third St. building, as well as two other buildings on the block at 607 and 617 E. Third St.
The Manhattan project, Dickstein said, “was better than what we had dreamed.” Past proposals for the building included housing and retail.
The city in September 2015 agreed to sell the Dayton Power and Light building two doors down for $10 to developer St. Peters Partners LLC.
The company, owned by wealth manager John Riazzi, spent about $3.2 million transforming the vacant building at 617 E. Third St. into offices and an upscale wedding and event center called the Steam Plant.
PHOTOS: You’ve got to see these gorgeous photos of The Steam Plant, Dayton’s newest venue
The city acquired the property through a sheriff’s deed, meaning it was basically donated, officials said, and the city provided St. Peters Partners with a $90,000 grant to help with the project.
The city maintained control of the parking lot behind the property and invested $500,000 to help create a shared lot for the three buildings on the block.
The new parking lot helped with Woodard Development’s revitalization of the 607 E. Third St. building, which has been renamed the Avant-Garde.
The Avant-Garde is 100 percent leased and its tenants include Tangram Flex, JJR Solutions and Business Furniture.
“We’ve been successful because we’ve provided something in high demand for the region,” said developer Jason Woodard. “Unique work spaces that preserve the integrity of historic buildings, attractive to the changing workforce.”
The city’s return on investment in the block is almost 20 times the $965,000 it spent, and the projects are generating 275 high-paying jobs that will have a $19 million annual payroll, Dickstein said.
MORE: Big downtown Dayton developer to turn empty property into offices
The developments will generate almost $500,000 annually in city income taxes, which means the investment will pay for itself within about two years, Dickstein said.
The trio of buildings sat empty for more than two decades, as did many other properties in that area, called Webster Station.
Webster Station is now one of the hottest parts of the city, and the Manhattan building will only add to rebirth of the former industrial district.
“It’s another example of what we do with leveraged investment,” said Dayton City Commissioner Chris Shaw. “What we invest in yields significantly more than what we put into it.”
Woodard has applied to expand the Community Reinvestment Area to include the Manhattan building and plans to seek state historic tax credits, which helped with the renovation of the Steam Plant and other Woodard-owned properties.
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