Committee clears amendment to Warner & Swayze redevelopment, pares ERA2 acquisition loan to $2.9 million

The Community Development and Housing Committee on June 2 approved an amendment to prior council authorization for the Warner & Swayze redevelopment in Cleveland, changing the funding mix and unit count for the historic adaptive reuse of the former Warner & Swayze manufacturing plant.

Sarah Parks Jackson of the Department of Housing and Community Development told the committee the amendment responds to new U.S. Treasury guidance that requires Emergency Rental Assistance (ERA2) funds to be committed to specific project activities before the ERA2 expiration. “These funds actually expire September 30 and we have to have funding committed to a project by September 30,” Parks Jackson said, noting the county has until Jan. 31 to pay out but must show commitment by the September deadline.

Under the amendment, the previously authorized ERA2 amount was reduced from $3,350,000 to $2,900,000 and the project’s description was changed from construction of 140 units to the creation of 112 affordable housing units; $450,000 in HOME funds was separated out because those dollars will be used for construction and will be returned to the county’s HOME allocation process and handled through board of control. Parks Jackson said the ERA2 funds as amended are “specifically for the acquisition of the property and the related expenses.”

Representatives for the project — including Jeff Mills, director of development for Penrose, and Ashley Shaw of Midtown — described the long development timeline and said they were aiming to close by late in the year. “We’re closer than we’ve ever been. We're aiming for a November closing date this year,” Mills said; later in the discussion Mills said the team was “working towards a December 15 closing date” while continuing to raise a remaining financing gap. Mills described a current financing gap that would be roughly $2 million after a planned $5 million Opportunity Zone equity bridge, but said the team was “working hard every day” to secure the balance.

Committee members asked about legal and federal requirements attached to the different funding sources. Parks Jackson said county law staff and project counsel were negotiating protections and that Treasury rules require specific activity commitments for ERA2 money. She also said previously allocated local funding given directly to a nonprofit remains “secure” and that Treasury guidance allows repurposing returned funds for the original intent.

A motion to move the amendment to the full council under second‑reading suspension was made, properly seconded and approved by voice vote. The ordinance before the committee is listed as Resolution R20250251, amending Resolution R20250038 to change terms and amounts for the Warner & Swayze financing package.