Committee recommends $1.5 million loan to redevelop Taylor Tudor Plaza in Cleveland Heights

The Cuyahoga County Economic Development & Planning Committee on Jan. 27 voted to send to the full council for second reading a request to authorize an economic development loan not to exceed $1,500,000 to W X Z CPV LLC / Taylor Tudor Tenant LLC to finance redevelopment of Taylor Tudor Plaza in Cleveland Heights.

Anthony Stella of the Department of Development outlined the project as the first phase of a multi-phase redevelopment called "Kane Park Village" (transcript alternately referenced "Cane Park Village"). The proposal would preserve three historic mixed-use buildings and add new infill across the street. For this phase the plan calls for 44 apartments (market-rate), eight live-work units, and about 11,000 square feet of retail. Staff presented a capital stack of roughly $26 million, including federal and state tax credits, a senior bank loan, developer equity and a county loan to close the gap.

Stella said the county loan would be made at 5.5% interest with a two-year interest-only construction period, and then a 15-year term amortized over 20 years; the county’s loan-to-value ratio was listed at approximately 84.4% based on a stabilized appraisal. Staff estimated the project would create about 43 jobs and roughly $2.1 million in annual payroll.

Council members asked about current tenancy (presenters said the subject buildings are vacant), loan security (real-estate second lien and personal guarantees discussed), affordability (units will be market-rate; average rent cited near $1,800 per unit), and timing for job creation (contracts typically allow three years from project completion to meet job commitments). The committee approved moving a substitute version of the resolution to the full council and requested that staff incorporate the agreed-upon whereas clauses and guarantees into the second-reading substitute to preserve those terms.