CONTINUING COVERAGE
We do local best: The Journal-News provides regular updates on the activities of the nonprofit Consortium for Ongoing Reinvestment Efforts (CORE) Fund and Hamilton city government’s property purchases.
July 2014: As CORE Fund grows, director separates for-profit, nonprofit work
Nov. 2014: Hamilton acquires nearly 200 properties in 2-year span
Dec. 2014: With new business openings, Hamilton 'reclaiming downtown'
Feb. 2015: How Hamilton landed largest job announcement in a decade
March 2015: Downtown Hamilton's recovery making strides
April 2015: Hamilton's CORE Fund leads new investment in Main Street area
June 2015: CORE Fund property acquisitions grow
Sept. 2015: Downtown Hamilton grocery store now open for business
Sept. 2015: CORE Fund properties still a hard sell to private investors
The next big property purchase in the Main Street area for redevelopment could involve a prominent street corner at the cost of about $700,000 to city taxpayers.
Plans are for Hamilton city government to borrow that amount from the Hamilton Community Foundation, and grant it to the nonprofit CORE Fund for purchasing and renovating 205 Main Street, the building that housed street-level retailer Mazagan Urban Ware at the corner of Main and South C Street, and an adjacent house, said City Manager Joshua Smith. The loan would also cover the costs of buying 9-11 South C Street and demolishing those buildings.
By borrowing the money from the foundation instead of a private bank, the city saves money on origination fees and will receive a low, two percent interest rate over a two-year payback term, Smith said.
Hopes are to use proceeds from the sale of the fixed-up properties to payback the borrowing, he said.
“We see this building to be as catalytic as the Mercantile Lofts were at High Street,” Smith said. “For us, this is going to be ground zero on Main Street.”
“Once we get this building under control and developed, we’re going to see a very dramatic change start happening.”
City council members will consider approving the loan deal at their meeting Wednesday, Sept. 23, held in council chambers at 345 High Street.
Historic Mercantile Lofts, at 236 High Street, was an $8.6 million project by Canton-based Historic Developers to convert three buildings into 29 residential units and five commercial spaces. Commercial tenants include Community Design Alliance, Art Off Symmes, Millikin and Fitton Law Firm, and ACS Title and Closing Services.
Renovations by Historic Developers of the Mercantile building, as well the former Journal-News building on Court Street and the Robinson-Schwenn building have been credited by the city as a catalyst for spurring more investment in downtown Hamilton.
An additional $15 million has been spent on surrounding downtown redevelopment projects as of May 2015 by the CORE Fund, Artspace and others, according to the city.
The United States Environmental Protection Agency honored this month the partnership between the local government and Historic Developers with a Smart Growth Achievement award that recognizes approaches to development that protect the environment, encourage economic vitality and enhance quality of life.
Earlier this year, the city and the CORE Fund began shifting investments to the Main Street area in an effort to see a repeat of success filling storefronts along High Street in another major corridor.
The pending purchase of 205 Main Street, also known as the Hemmerle Block; the South C Street property; as well as plans by CORE to buy 302 Main Street, which houses Hughes Pharmacy; and 135 Main Street, which housed Tom's Cigar shop for almost 100 years; adds up to a total approximately $1.9 million investment by CORE into its Main Street initiative, said executive director Mike Dingeldein. That includes Main Street properties previously purchased by CORE such as the former Homestead restaurant at 139 Main Street, a duplex at 310-312 Main Street and more.
Launched in December 2012, the Consortium for Ongoing Reinvestment Efforts (CORE) Fund is a private nonprofit that has raised millions to acquire blighted properties and make non-traditional loans to developers for projects in the area of High and Main streets.
“We want to close the revitalization gap by improving enough property on Main Street to make the next person’s property more valuable,” Dingeldein said.
The Mazagan building could be renovated for street-level commercial space and upper-level residential living, Dingeldein said.
Altogether, if the new Main Street purchases close, the CORE Fund’s holdings could grow to about 30 properties in the city including commercial and residential building uses, Dingeldein said.
As part of this month's special Following the Money series, the Journal-News previously reported that the CORE Fund has so far bought 26 properties but only sold one to a city employee.
The goal is to restore empty buildings and turn them over to the private sector, but the buildings have proved so far to be a hard sell, officials say.
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