West Main apartment project fails to get tax credits

• The West Main apartment project scored a 78%2C but the minimum increased to 80 points%2C Layman said.
• Layman said he may reconsider %242.5 million project for the three-story building at 112 W. Main St.

NEWARK – Steve Layman's development plan for the former West Main Intermediate School fell just short of receiving historic preservation tax credits Tuesday.

It was the second time Layman's plan to convert the school into apartments passed the previous threshold to receive Ohio Development Services Agency tax credits only to see the new standard moved even higher.

In December, Layman's project scored a 75, a number which would have earned credits in the past, but increased competition boosted the minimum score to 77.

This time, the West Main apartment project scored a 78, but the new standard increased to 80 points, Layman said.

"Two years ago, it took 73 points to get an award," Layman said. "There's a lot of competition. The demand for this financial support is enormous."

Projects are scored on 13 criteria, including project readiness, job creation, leveraged investment and regional balance, among others. The agency received $74 million in requests but awarded $27.5 million.

Layman said he may reconsider his $2.5 million project for the three-story building at 112 W. Main St. He's open to suggestions.

"At this point, we've got to start thinking about plan B, but I don't know what that'd be."

Layman had hoped to secure the 25 percent tax credit from the state, then seek a 20 percent federal tax credit awarded to all who qualify.

The agency awarded tax credits to 19 applicants planning to rehabilitate 33 historic buildings. The projects will leverage $279 million in private investments in eight communities.

The Central Region of Ohio received three awards: two in Columbus and the Buxton Inn in Granville. The Buxton Inn received $250,000 toward a $3.14 million restoration project.

Seventeen of the 19 awards went to projects in the state's six largest cities Cincinnati, Columbus, Cleveland, Toledo, Akron and Dayton — with Cincinnati getting seven awards.

The next round of approved tax credits will be announced by Dec. 31. The application deadline is Sept. 30.

kmallett@newarkadvocate.com

740-328-8545

Twitter: @kmallett1958