The Dayton Arcade District project has been awarded nearly $14 million in tax credits from Ohio's Transformational Mixed-Use Development Program.
The development team, Model Group and Cross Street Partners, said the credits are critical to completing the next phase of the Arcade District Development, which also includes the Centre City building and Air City Garage.
The project represents over $200 million of investment in what was originally 10 historic buildings. It spans two city blocks and over 810,000 square feet in downtown Dayton.
The first phase of the project started in April 2019, with the first tenancy in early 2021. Now, thanks to the nearly $14 million in new tax credits, the next phase is closer to the finish line.
“This award is a unique funding opportunity that is geared toward large transformational projects in Ohio,” said Taylor Vogt from development partner, Model Group. “In order to continue and take the development further and really fill out the entire district, these tax credits were essential to even make the project go. The Centre City building, for instance, without these tax credits could not happen. So it's a major factor in the development.”
These tax credits will help complete the next $139.8 million portion of the Arcade District Development, which includes the following phases:
- South Arcade Phase 2: This $12.2 million project will complete the overall South Arcade development. This includes the expansion of the Arcade Innovation Hub, Artist Resource Center and space for multiple restaurants.
- North Arcade: This $23.3 Million phase will complete the Hilton Garden Inn, pop-up retail and neighboring grocery store.
- Centre City Building: This $91.9 million phase includes 200 mixed-income apartments, and up to 53,000 square feet of commercial retail and office.
- Air City Garage: This $12.4 million project will provide 380 parking spaces and additional street-level commercial spaces within the district.
“The tax credits are meant to be the final missing piece to get the project across the finish line and to help to compensate for inflation and the lending environment,” Vogt said.
