Council committee approves forgivable loans and TIF to advance Warner Swayze adaptive-reuse project
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Summary
A Cleveland committee approved emergency ordinances to allow two forgivable loans (up to $400,000 each) and a tax-increment financing agreement to Penrose Holding LLC to support a $64M adaptive-reuse of the Warner Swayze complex into 112 affordable units, backed by a newly signed community benefits agreement.
A Cleveland City Council committee on Nov. 10 approved emergency ordinances that authorize the director of economic development to enter forgivable loan agreements and a tax-increment financing (TIF) agreement with Penrose Holding LLC to finance the Warner Swayze adaptive-reuse project at 5701 Carnegie Avenue.
Edward Peppers, vice president of economic development at Midtown and a Penrose project partner, said the development is "a little over $64,000,000 in total project cost," with a targeted mid-December 2025 closing and a 24-month construction schedule. The first phase would create 112 affordable housing units — 56 for families and 56 for seniors — with rents set at up to 60% of area median income (AMI).
The ordinances as amended convert references to a single loan into two loans with the change that "each loan shall not exceed $400,000," and rename the file suffix to -b as part of clerical updates. Council members approved both companion pieces after the presentation.
Director Rose introduced project staff and hailed the project as "an incredible example of an adaptive reuse project," noting long-term city involvement and multiple funding sources. Peppers said securing the TIF and forgivable loan authority is intended to position the project before low-income housing tax credit and CRA expirations create a tax-cliff risk later in the affordability period.
City staff also reported a community benefits agreement signed the day of the meeting. The CBA commits to local hiring and contracting goals, workforce-development elements such as registered apprentices and paid resident interns, and neighborhood infrastructure work including curb repair, tree canopy replacement, lighting upgrades and coordination with the RTA and law enforcement on cameras and transit stops.
Community-development staff described minority-, female- and small-business spending targets in the low‑to‑mid millions and milestones for quarterly stakeholder reporting and local hiring. Council members including Hairston and Starr expressed support for unbundling large contracts to increase opportunities for MBEs and small businesses.
The committee recorded no objections and the ordinances "stand approved" for signature. Next steps cited by the project team include closing financing, finalizing construction timetables and beginning site work on schedule.