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Council committee clears tax-increment and PACE support for Westinghouse redevelopment on West 58th
Summary
The committee approved tax-increment financing and a PACE energy assessment to help convert the vacant Westinghouse complex at 1200 West 58th Street into a mixed-use residential development with 116 units and streetscape improvements; the measure includes a 30-year TIF and an estimated $15 million PACE allocation.
The Development, Planning and Sustainability Committee on March 9 authorized city staff to finalize financing agreements that will help redevelop the vacant Westinghouse property at 1200 West 58th Street into housing and commercial space.
Development staff said the project, led by TWW58 Cleveland, will adapt roughly 158,000 square feet into 116 residential units (106 market-rate and 10 workforce/affordable units), add ground-floor commercial space and parking, and is expected to cost about $81 million in total. Staff described a financing package that includes a 30-year, 100% non-school tax-increment financing (TIF) agreement that they estimate will deliver about $11 million in project support to the developer and approximately $23 million in payments to the city and the Cleveland Metropolitan School District over the term.
City staff also requested authority for a property-assessed clean energy (PACE) financing component of up to $15 million over a 28-year term to underwrite energy-related upgrades such as roofing, HVAC and electrical improvements that exceed energy-code requirements.
Developers and staff said the site had been remediated as a brownfield with state and county support. They described community benefits in a negotiated community benefits agreement (CBA) that includes minority- and small-business contracting goals, streetscape and safety improvements (four speed tables), bicycle racks and funding support for the nearby Herman Park Trail.
Council members asked for details on the affordable-unit rent levels (staff said the 10 units target workforce housing at about 120% of area median income and estimated rents roughly in the $1,400–$1,500 range for small units) and for a timeline; staff said shell permits were issued and construction was expected to begin in May with a completion window of 18–24 months. There was also discussion about how the PACE assessment ranks relative to mortgage liens and how lenders underwrite PACE in their debt stacks.
Council offered and approved an amendment adjusting a line-item amount in the ordinance; the ordinance was approved as amended in committee. The transcript records committee approval but does not include a roll-call tally in the public transcript.
