Heather McNally, representing the McCormick Arts Center (MAC), updated council on the organization’s multi-phase rehabilitation of the Hotel Couture building and explained how federal and state historic tax credits, private gifts and a bridge loan are being used to advance construction.

McNally told council the MAC has completed extended phase 1 contracts and recently received Part 3 certification of completion required by the National Park Service for historic rehabilitation. That certification opened the door for the first substantial historic tax-credit disbursements, which McNally said included a tranche of roughly $150,000 and another of about $232,000 tied to documented qualified rehabilitation expenses (QRE) of roughly $1.5 million.

Why it matters: the MAC project is a downtown preservation and economic-development effort that the organization and the county have pursued for years. McNally said receipt of tax-credit equity allowed the MAC to enter a bridge loan arrangement and to award a publicly bid construction contract to a lowest-compliant bidder so work could continue this construction season.

Scope and next steps

- Completed: extended phase 1 items (mechanical, plumbing, structural repairs, some interior finishes); required federal/state certifications obtained.

- In contract/underway: phase 2 contract (~$650,000) covering basement storage adaptations, a commercial kitchen and partial front-porch balustrade restoration; mobilization was timed to avoid rebidding delays.

- Planned: phase 3 will address an elevator and accessibility improvements to unlock additional occupiable space on the fourth floor and to meet egress/ADA requirements.

McNally described the elevator and accessibility work as the key to increasing usable/qualified space and expanding MAC programming for youth and the public. She said the project team had publicly bid the general-contract scope (eight bids were received earlier in the project) and that tax-credit syndication will fund later phases.

Council response

Council members praised progress and said the awards, tax-credit receipts and completion certification were positive milestones. Members asked about coordination with other projects (for example, a county veterans park), grant timelines and what remains to close the funding gap for the final phase. “We are prepared to share all budgets, invoices and documentation,” McNally said when council asked about transparency and reporting.

Ending: MAC leaders said they would continue to seek historic-credit equity, grants and other funding to complete phase 3 and that they expect to be able to report more progress as tax-credit syndication continues.