Plans to revitalize the Dayton Arcade could change under the GOP’s new tax plan, according to a story published Friday by the Wall Street Journal.
Under the new law signed by President Donald Trump last month, the 20 percent reimbursement provided to developers who are awarded federal historic tax credits is spread out over five years instead of one, which reduces the incentive to rehabilitate historic structures, according to WSJ’s report.
A number of local developers, preservationists and elected leaders from the Dayton area in December called on U.S. lawmakers to preserve the federal tax incentive program that has helped redevelop dozens of historic and iconic buildings in Dayton, resulting in an estimated $270 million in investment.
Here is what the Dayton Daily News reported: LOSS OF INCENTIVES WOULD BE DEVASTATING
The program is widely used by developers to finance restoration projects on former factories, empty department stores and other disused buildings, which helps to “inject life into sagging main streets,” according to WSJ’s report.
In December, the Dayton Daily News reported that Dayton Arcade’s development partners Cross Street Partners and Miller-Valentine Group were awarded $4 million in historic state tax credits on a proposed $41 million project to overhaul the collection of eight buildings in downtown Dayton. Those buildings, which once housed shops, a farmer’s market, apartments and offices, were closed 26 years ago.
The redevelopment plans include putting in pop-up restaurants and apartments around one anchor tenant yet to be announced.
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WSJ reports that developer Cross Street Partners rushed to finish long-term leases on the Dayton Arcade’s eight buildings at the end of last year in the hopes of qualifying under the old tax-credit rules.
WSJ reports that David Williams, senior director at Cross Street Partners, said the weakened tax-credit program could have threatened a carefully constructed financing plan, which includes multiple tax incentives.
“A hiccup like that can be pretty devastating,” Williams is quoted in the report.
The Dayton Daily News will continue providing ongoing coverage of the efforts to redevelop the Dayton Arcade, a collection of eight buildings