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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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