Friday, July 5, 2013

City to forgive nearly $15K for failed OTR project

The City of Cincinnati will excuse an Over-the-Rhine developer from repaying half of a Community Development Block Grant (CDBG) loan and execute a release of mortgage on the real property that secures the loan, thereby making the properties available for another developer to complete their rehabilitation.

The City made the agreement with Big Dog Holdings, LLC in June 2006 to renovate 11 units at 10-14 E 15th Street and has provided $29,701.06 in CDBG funding to date.

Under terms of the agreement, the project was required to be completed by May 2007. The developer was unable to complete the project and has asked for the City to accept half of that amount, or $14,850.03, to satisfy the loan.

According to Hamilton County Auditor records, all three buildings have sold: 12-14 E 15th Street was sold for $57,000 to Sosco Realty LLC on May 30, and 10 E 15th Street was sold to Joe Retford on June 4 for $27,000. It also shows that the developer no longer owns any properties in Hamilton County.

This is the second time that the City has released a mortgage in order to facilitate redevelopment of the properties. In 1990, the City made a $134,000 loan to S.J. Sales, Inc., secured by a mortgage, which was released following the failed redevelopment and the subsequent acquisition by Big Dog Holdings, LLC.

Previous reading on BC:
Cincinnati approves $187K for Meiner Flats stabilization agreement (9/18/08)
City considers $187,000 for Meiner Flats stabilization (9/2/08)
New Meiners Flats blog to aid in preservation effort (5/7/08)
Preservation Magazine spotlights Meiners Flats (5/1/08)
Over-the-Rhine news, 3/3/07 (3/3/07)