She said the nomination will enable the redevelopment partner to compete for historic tax credits to help defray the cost of renovating the 92-year-old hotel. She hopes the Manchester Inn will be eligible to receive state and federal tax credits that could reduce some of the expenses associated with repairing downtown hotel, which typically are higher because of the age of the property.
Illinois investor William Grau, owner of Historic Urban Development, LLC, has made the repairs to the hotel’s leaking roof and treated it for mold, Hamet said. Grau has said he plans to invest $10 million in the property. Grau has until Sept. 1 to take over ownership of the Manchester Inn, according to the development agreement.
In February, City Council voted unanimously to sell the Manchester Inn to Grau. The city purchased the Manchester for $175,000 after it closed in 2011 and forgave about $150,000 in debt as part of a bundle of downtown properties when it thought Cincinnati State Technical and Community College was going to use the Manchester for its culinary and hospitality programs as part of its Middletown branch campus.
The city was asking $325,000 for the Manchester, but accepted Grau’s $1 offer.
Grau, who has more than 30 years in the construction, contracting and development industry, said he’s performing a feasibility study to determine the best use of the Manchester. He has said he plans to convert the hotel into catering and banquet facilities; a café and brewpub; office spaces; a large courtyard; and 60 market rate apartments that will not be Section 8 units.
Grau said he’s never worked with Section 8 and that wasn’t his intent with the Manchester. He said the units are going to be one- and two-bedroom apartments.
In his original plan, Grau said he wouldn’t renovate the hotel’s ballroom, which some consider the hotel’s biggest asset. But when pressed about that issue, Grau said a decision will be made based off the feasibility study to determine if it makes financial sense.
Hamet has said that city has contacted local businesses to gauge the need for downtown hotel space.
She called the Manchester “an important landmark” for the city and it will serve as a key component helping to move Middletown’s urban revitalization forward. The redevelopment of the Manchester, she said, has the potential to engage many elements of the community, including Cincinnati State Middletown through culinary and/or hospitality programs.
Hamet said the city also is working on the nomination for the adjacent Dan Snider Ford building.
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