Economic Development

Cincinnati Partners to start construction on $37 million adaptive reuse/renovation of historic landmark

Cincinnati, Ohio (April 13, 2010) – It takes nine partnering organizations,$37million and a lot of cooperation and perseverance to re-adapt an iconic 1920s hotel as an office anchor for an urban neighborhood’s revitalization efforts. Especially in this economy.

But, in Cincinnati, Ohio the project and investor teams have aligned for the 2010 construction start that transforms the former Vernon Manor hotel, where President John F. Kennedy and the Beatles once stayed, into office space for world-renowned Cincinnati Children’s Hospital’s continuing growth.

The hotel sits in the heart of a central Cincinnati neighborhood called Avondale, which has struggled with revitalization efforts.

City of Cincinnati Mayor Mark Mallory and City Manager Milton Dohoney, Jr. joined State of Ohio Regional Director Brewster Rhoads and Cincinnati Children’s Hospital Medical Center President and CEO Michael Fisher April 13 in a public celebration of the redevelopment team, schedule, and financing in place.

Laura Brunner, Executive Vice President, Al. Neyer, Inc., Ed Rigaud, Real Estate Enterprises for African-American Leaders (REEAL), LLC, and leaders from the city’s Avondale and Corryville neighborhoods also provided remarks.

The new Vernon Manor offices will accommodate more than 600 employees from Cincinnati Children’s, creating new capacity for the medical center to expand at other locations, including its main campus. Cincinnati Children’s Hospital Medical Center has signed a 17-year lease.

“This project is a key economic development project that will both be an anchor in the Avondale community and expand the capabilities of Cincinnati Children’s Hospital, which means more jobs,” Mayor Mark Mallory. “It also fits into our GO Cincinnati economic development strategy as an employment sector that will be growing over the next several years.”

Al. Neyer will start renovation work on the 171,000 square-foot, seven-story building this month. Work on a 440-car parking garage begins July 2010. City Manager Milton Dohoney, Jr., said the retained jobs from Cincinnati Children’s contribute $600,000 in annual earnings tax revenue, while the new jobs created from this expansion are likely to contribute over $800,000.

The City of Cincinnati and State of Ohio partnered on a financial assistance package worth $7.1 million to the redevelopment, including a $10.5 million public parking garage. This agreement has the City purchasing and owning the parking garage for 25 years, utilizing tax-increment financing through the Corryville neighborhood. State of Ohio has approved $7.5 million in loans that will be used to finance the garage construction as the city pays for the garage over the 25-year period. Al. Neyer will operate and manage the garage.

“When all the pieces come together, this project takes the assets our neighborhoods offer, pairs them with the world-class businesses we have, and promotes inclusiveness in economic development in our city” said Mr. Dohoney.

Developer Al. Neyer said it will finalize its closings on project financing April 15, including New Markets Tax Credits and Federal Historic Tax Credits.

Al. Neyer, Inc. Executive Vice President Laura Brunner said garnering state, city and community support early on for the complex redevelopment, working with tenant Cincinnati Children’s Hospital Medical Center on project goals, and successfully pitching project ownership to local African-American investment leadership group REEAAL, LLC., “are accomplishments that will transcend the initial success of this project for decades to come.”

REEAAL President Ed Rigaud said the African-American-led real estate investment enterprise will own 51% of Vernon Manor Offices LLC, project owner, and called it an “important step to achieving economic freedom for all of our citizens.”

We believe that this magnificent project affords the proper respect to the rich history, and to the exciting future of the Avondale community,” Mr. Riguad said. “Our investment group is fully committed to this project and to the success of Avondale.” Mr. Rigaud is an accomplished businessman and a founding director and first President of the National Underground Railroad Freedom Center in Cincinnati.


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ABOUT AL. NEYER
Al. Neyer, Inc. is a 116-year-old commercial real estate development, investment and design-build company, responsible for millions of square feet of office, medical office, industrial and residential mixed-use space that contributes to the economic vitality of cities in which we build.

Al. Neyer recently completed construction of a 120,000-square-foot medical office and treatment facility at 3430 Burnet Avenue for Cincinnati Children’s Hospital Medical Center in Avondale that includes a 1,450-vehicle parking garage, and 3-story LEED-CS Gold certified office and neighborhood retail building. The company is responsible for the 2009 redevelopment of the Offices at 444 West Third Street, headquarters for dunnhumbyUSA.

Al. Neyer leads in green building design and construction practices. Five of our staff holds LEED Accredited Professional credentials and the company has been involved in a half-dozen LEED certified/registered projects and significant redevelopment projects involving brownfields. Al. Neyer consistently ranks among Greater Cincinnati’s largest privately held companies.

www.neyer.com


ABOUT CITY OF CINCINNATI ECONOMIC DEVELOPMENT DIVISION
The City of Cincinnati Economic Development Division (EDD) is focused on major economic development projects and the revitalization of downtown Cincinnati. It serves as a liaison between City departments and the business and development communities and provides access to financial, informational, and technical assistance to those seeking to invest and grow in Cincinnati.

www.choosecincy.com

City of Cincinnati Contact: Meg Olberding, meg.olberding@cincinnati-oh.gov or 513-352-5358
Al. Neyer Contact: Gail Paul, gpaul@neyer.com or 513-379-8153