CLEVELAND — Five Northeast Ohio development projects are getting a big boost from the state, landing more than $35 million in tax credits designed to help tricky deals get off the ground.
The winners range from a 22-acre waterfront project in Sandusky to the preservation of an old cigar factory in downtown Mansfield.
In downtown Cleveland, tax credits will help a local developer remake the vacant Rose Building complex as apartments and a hotel. In Brecksville, state incentives will fill a funding gap for the second wave of development at Valor Acres, the transformation of an old VA hospital site into a mixed-use district.
The Ohio Department of Development and Gov. Mike DeWine announced more than $110 million in awards Wednesday for 13 projects across the state. The incentives are from a program focused on so-called “transformational,” mixed-use projects.
Developers can use the credits to offset their tax liabilities or sell the credits to raise money for construction. The state doesn’t issue tax credits until a project is done, but developers can use the promise of an award to attract up-front investors.
The program “gives communities the tools to turn ambitious ideas into reality,” Lydia Mihalik, the state development director, said in a news release. “These projects will attract new investment, expand housing and business opportunities and create stronger, more vibrant communities across Ohio.”
Here are more details about the Northeast Ohio winners:
Battery Park Sandusky
Willoughby-based Marous Development Group and the city of Sandusky have been working on this ambitious waterfront transformation plan since 2020.
The goal is to reimagine an aging marina district along Sandusky Bay by adding apartments, condominiums, retail, restaurants, a hotel, conference center and parking garages — along with a boardwalk, a waterfront park and other public spaces.
The Battery Park project previously received state brownfield money for site clean-up, along with $1 million from a one-time investment fund approved by state lawmakers in 2024.
But the math wasn’t going to work without additional state support, according to a tax-credit application submitted to the development department and obtained by News 5 through a public records request.
“The … tax credit provides a unique and essential source of gap financing that will enable the project to move forward,” the application says.
The total cost of the project and anticipated timeline for construction are redacted in the document.
Project Scarlet, Cleveland
A $7 million state tax credit will help support the $150 million makeover of an empty downtown Cleveland office complex into apartments and a hotel.
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The award is for the Rose Building and its annex, at East Ninth Street and Prospect Avenue. The property was home to Medical Mutual of Ohio’s headquarters for 75 years, but the insurer left downtown for the suburbs in 2022.
Local developer Spark GHC bought the 10-story Rose Building and the annex, called the Sloan Building, in 2024. Working with Cleveland Construction, the company plans to fill the space with a 121-room Marriott Tribute hotel, 171 apartments and up to 15 penthouses, which will also be rentals.
The apartments will carry the Marriott brand and offer tenants access to hotel services and the ability to earn points through Marriott’s loyalty program.
"Projects like Scarlet are extremely complex and challenging to execute,” Bhavin “B” Patel, a Spark GHC principal and co-founder, wrote in an email Thursday.
He said the state’s transformational mixed-use development tax credit program and historic tax credit program are critical to making the numbers work.
“We’re grateful for the support, as it plays an important role in helping us bring a project like this to life,” he wrote.
Interior demolition and abatement on key floors of the buildings is almost done, Patel said, and the goal is to finish construction in late 2027.
Valor Acres, Brecksville
The state also awarded $7 million in tax credits to the second phase of Valor Acres, at Miller and Brecksville roads near Interstate 77.
The DiGeronimo Cos. started construction on the project in 2021. The first wave of development includes housing, office space, a hotel, restaurants and an open-air bar.
The second phase will span about 28 acres and include three buildings, according to a tax-credit application submitted to the state. A 292,000-square-foot building could hold offices and manufacturing space, the application shows. The second building is described as retail and recreation. The third will be for medical offices.
The Cleveland Clinic recently announced plans for a new outpatient health center at Valor Acres. The 60,000-square-foot, four-story building is scheduled to open in late 2027.
In a news release, the Clinic said the building will have 108 exam rooms and offer primary and specialty care, along with imaging, physical therapy and occupational therapy.
DiGeronimo's tax-credit application also mentions plans for a public plaza and trails.
“This … tax credit request will close our final financing gap and allow the project to move forward,” the application says.
Downtown Mansfield Forward, part B
A $600,000 state tax credit will go toward a small piece of a much larger downtown revival effort in Mansfield.
This project will revive the Hautzenroeder & Co. Cigar Manufacturers building at 147 N. Diamond St., filling it with apartments, offices and retail. The building is vacant now.
It sits about 60 feet away from a cluster of historic buildings slated to become apartments.
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The Hearth and Forge Hotel, Mansfield
This project will turn an aging Mansfield hotel — a onetime Holiday Inn that’s now a Quality Inn & Suites — into an upscale, boutique hotel and community space.
The building at 116 Park Ave. West is downtown Mansfield’s only hotel. The project is being tackled by former state representative Jay Goyal and hotel investor Snehal Patel.
After renovations, the property will include a banquet facility, a bar and lounge, an indoor pool and a movie theater, along with a fitness center and conference rooms. A tax-credit application filed with the state mentions a series of local partnerships and programming relationships that could lead to film screenings, performances and other public events.
“The project is intended to function not only as a hospitality asset but as an ‘indoor town center’ — a central gathering place for the community and visitors alike, and a modern equivalent of ‘Mansfield’s living room,’” the application says.
The developers won $528,220 in state tax credits.
Michelle Jarboe is the business growth and development reporter at News 5 Cleveland. Follow her on X @MJarboe or email her at Michelle.Jarboe@wews.com.
