On April 17, Cincinnati City Council approved three ordinances that will advance construction of the $122 million dunnhumby Centre, already underway at Fifth and Race streets Downtown.
The first ordinance authorized the use of tax increment financing (TIF) funds to pay for the 1,093-space parking structure and the 30,000 square feet of street-level retail space in the development. The improvements, to be financed through federal tax credits and bonds issued by the Port of Greater Cincinnati Development Authority, would be exempt from property taxes for 30 years and would be serviced by dunnhumbyUSA and the building's commercial tenants.
The second ordinance authorized a 15-year Community Reinvestment Area (CRA) LEED property tax exemption agreement with dunnhumby HQ Building Company, LLC. The company is seeking LEED Silver certification through the U.S. Green Building Council.
The final ordinance executed a second amendment to the October 2012 property sale and development agreement with Cincinnati Center City Development Corp. (3CDC) affiliate Fifth and Race, LLC and dunnhumby HQ Building Company, LLC that makes five changes from the original agreement, including:
- The removal of all references to the residential portion of the project, eliminated due to the end user's office needs and logistical issues;
- Clarification that service payments from the end users will be paid to the Port of Greater Cincinnati Development Authority, rather than a loan from PNC Bank and Fifth Third Bank;
- An opportunity for garage manager 3CDC to purchase the three above-ground levels of the garage from the City, for $1 per level, should dunnhumbyUSA need to expand;
- The fact that dunnhumbyUSA intended to seek a CRA LEED tax exemption, which was granted; and
- A statement that the lenders are entitled to certain third-party beneficiary rights.
The property has been a parking lot since 2000, when the Fifth & Race Tower was demolished for an unspecified redevelopment project, including an unsuccessful overture to retailer Nordstrom. In 2008, following a condominium proposal by Eagle Realty Group that failed to materialize, 3CDC was brought on board to find a user for the site.
Just ten years ago, dunnhumbyUSA launched with four employees.
Previous reading on BC:
Fifth and Race awakes with dunnhumby Centre groundbreaking (2/1/13)
Agreements approved for Fifth and Race (7/2/12)
New Fifth and Race proposal could reach 30 stories in height (6/15/12)
Amended agreement provides up to $12M for dunnhumbyUSA building, relocation (3/26/12)
dunnhumbyUSA unveils new Downtown HQ (9/30/09)
