Cleveland Development Advisors (CDA), the Greater Cleveland Partnership’s real estate and business development finance affiliate utilized $6 million of its 2013 New Markets Tax Credits (NMTC ) allocation toward the expansion of Steelyard Commons.
Project financing, which also included a $2 million NMTC allocation from JP Morgan Chase, conventional financing, and tax increment financing, closed last week.
The $20 million second phase includes a total of 90,000 square feet, anchored by the Burlington Coat Factory and is expected to create 140 additional jobs.
The first phase of Steelyard Commons brought over 700,000 square feet of retail and restaurants, a playground, hiking and biking trails to the heart of the city on a site that was once an abandoned steel mill. Since opening in 2007, the regional shopping center has created 1,100 jobs, 82 percent of which are filled by City of Cleveland residents.
Plans for additional development at Steelyard Commons had been delayed due to the recession and its impact on national retail tenants. This project is able to move forward at this time because of the equity investment generated by the NMTC allocation.
The shopping center has had a significant impact on the community by providing a major boost to the local economy and improving the quality of life for those residing in the area.
Besides the much needed jobs and new tax revenue, especially for the Cleveland Metropolitan School District, Steelyard Commons has turned a once-abandoned steel mill into a premier regional power center that provides numerous benefits and services to the community it serves.