CLEVELAND — The Ohio Tax Credit Authority has awarded Dan Gilbert's real estate firm, Bedrock, a $9.1 million tax credit to help redevelop the Cuyahoga Riverfront behind Tower City.
The award, announced Monday, is coming from a competitive state program for "transformational," mixed-use projects. Property owners and developers across the state applied for more than $250 million in credits this time around, but the state had only $100 million to give.
While just over $9 million is still a sizable amount, it's just a fraction of what Bedrock was seeking. Public records show the developer, the real estate arm of Gilbert's Rock family of companies, applied for the maximum possible award — $40 million.
Bedrock's project is the only Northeast Ohio winner in this round of tax credit awards.
Bedrock CEO Kofi Bonner issued the following statement about the credit:
"Today’s announcement of the Transformational Mixed-Use Development grant marks an exciting milestone for The Riverfront, and we’d like to thank the State of Ohio, Governor DeWine, Director Mihalik and the Department of Development, and the many members of the state legislature for its vision. We recognize that this is a highly competitive process with many transformative projects taking place in Ohio, and we are honored to have been awarded. As part of Mayor Bibb’s shore-to-core-to-shore plan, work along the Cuyahoga Riverfront has already commenced, and we look forward to bringing entertainment, hospitality and recreation opportunities to a reality; driving economic growth, attracting tourism and most of all, creating a premier riverfront destination for Clevelanders."
The Cuyahoga Riverfront project spans about 35 acres and is located behind Tower City. The company broke ground on the first phase of the project last year, as construction started on a new Cleveland Cavaliers practice facility and Cleveland Clinic sports-medicine hub near Stones Levee and West 3rd Street.
Gilbert, a Detroit-based billionaire, owns the Cavs.
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According to a redacted copy of the tax credit application provided to News 5 by the Ohio Department of Development, the first phase of Bedrock's project consists of the following:
- Turning about 12 acres of parking lots into a "vibrant urban district."
- Building a 17-story building that will include a hotel, entertainment venue, restaurants and retail. It also will include structured parking.
- Construction of a new plaza and staircase that will link Huron Road to the riverfront, along with a new park and kayak launch.
- The Cleveland Clinic Global Peak Performance Center, the sports-medicine and training facility that is already under way.
The state said those early stages of the project are expected to create 548 permanent jobs.
“With new development and growth comes new possibilities for Ohioans,” said Lydia Mihalik, director of the Ohio Department of Development, which administers the program. “Mixed-use developments create lively communities that attract residents and visitors, transforming empty lots into places where people can connect and thrive.”
Bedrock's broader master plan, a $3.5 billion vision for remaking the waterfront, could take nearly two decades to complete.
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