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Press Release
March 27th, 2007
Development on the Marina
District has forward momentum!
TOLEDO, OH – A proposed
$320M mixed-use development agreement
between The City of Toledo and Dillin Corp
on the Public / Private partnership for the
development of the Marina District will go
before council in April. In the proposed
agreement, Dillin Corp will provide the
leadership, private funding and management
of the Marina District Development, a
mixed-use development to include retail,
restaurants, market-rate housing, a marina
and other uses. The City’s role is to
capture public funding from the state and
federal government as well as create a TIF
district and support the project going
forward.
"The
difference between this agreement and
agreements the city has had in the past is
that the developer isn’t saying, ‘give us
the land, give us some money and wait and
see what happens.’ In this agreement, Dillin
Corp has to bring private investment and the
riverfront park to the table before the City
turns over the land or any public dollars,"
explained Mayor Carty Finkbeiner.
The
basic points of the agreement are as
follows:
After
Dillin solidifies private funds $50M* for
vertical buildings and $15M* to fund the
balance of the Riverfront Park area, the
City will deed the land to Dillin Corp and
invest $10M* in the Riverfront Drive and
Park area.
"This
is always the role we wanted Larry to play
in the development of the Marina District,"
said Don Monroe, Economic Development
Director for the City of Toledo. "Dan
Steingraber and I originally called Larry to
recruit him back to the project – that’s
when the City gave him a consulting
agreement, but this way is better for
everyone." Better for the City, better for
Dillin and better for Toledo as a place to
live", Steingraber agreed.
Dillin
is currently in negotiations with users on
several parts of the site both commercial
and residential. "When the Waterfront Park
is delivered, there are several other
interested developers for other areas of the
land," stated Sarah Penner, Project Manager
of the Marina District for Dillin Corp. "The
backbone of this agreement is the Riverfront
Park." The Riverfront Park would typically
be funded as a "Public Works" project. In
this case, the City, State and Dillin will
all participate in the expenses.
The
City, the citizens of Toledo and Dillin Corp
benefit from the agreement. The most obvious
are that the City gets a first class
development, predominantly privately funded,
with little risk for the City and the City
will be able to collect taxes on the
property. On the other hand, Dillin Corp has
the opportunity to create a third regional
attraction in Northwest Ohio, keep local
control of the property and the development,
and possibly be the "tipping point" for the
way people think about Toledo.
After
6 months consulting for the City of Toledo
on the Marina District and formulating a
plan for the funding and development, Dillin
Corp is "…uniquely positioned to make this
Public/Private partnership work," said Bob
Gummow, CFO for Dillin Corp. "Also, the City
can collect tax on the property. As a City
owned property, the City does not pay taxes
to itself, so the sale and development of
the land would benefit the general tax base
for the City", he explained.
In
addition to increased revenue and reduced
costs for the City, the agreement shifts the
burden of risk from the City to Dillin Corp.
A TIF district created by the City, however,
would help jump start the vertical
development. Here’s how the TIF would work:
Dillin would take over the land, pay taxes
on the land, then leverage the land in a
financing package from a traditional lending
source with a City approved TIF district.
With a TIF, the City would allow a portion
of the increased tax base from the Marina
District land to go toward paying down the
debt on the loan. As the value of the
developed property at the Marina District
increases, the tax base for the City of
Toledo increases and the TIF loan,
guaranteed by Dillin, would be paid faster.
"TIF
financing is common in Public/Private
development," said Bob Gummow. "The City of
Perrysburg and Dillin have a TIF for Levis
Commons.
To
jumpstart the vertical development and
Riverfront park, Dillin will provide the
following by October 1, 2007**:
Leadership for the entire
development/master-planning process
$50M* in private
investment for building structures •
Financing for the gap in
funding to complete the Waterfront Park ($15
M*)
Vertical Development to
begin before December 31, 2007**
Dillin will provide the following for the
remainder of the project**:
Marketing and branding
Marketing to other
developers
Selection of a Marina
Operator
Management of the site
Funding of the remaining
site infrastructure needs ($31M*)
Development of the
balance of the site ($250M*)
Over the life of the agreement, the City
will provide**:
Assistance in acquiring
state and federal money
A TIF (tax incremental
financing) district
Approximately 60 acres of
the Marina District land
$10M* for the Riverfront
Park which includes monies available from
the State or Federal government
Removal of the high
voltage line towers, abandoned wires, etc.
Demolition of the Sports
Arena and Brenner Marine when vacated
Complete environmental
remediation of the Acme Plant
"We’re
excited to change the way people think about
Toledo," noted Larry Dillin, master-planner
and visionary behind the successful Levis
Commons development in Perrysburg. "Toledo
is on the verge of great things. The Marina
District gives us a chance to create
something world class in Toledo, Ohio. Like
I’ve said before, Toledo, we’re just warming
up!"
*All
numbers are approximate figures.
**Complete details and specifications as
well as additions to the mentioned bullet
points are outlined in the proposed
agreement. |
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