City officials, developers to present Painesville plans June 27
Jun. 26—City officials and developers will present their plans for new mixed-use developments at the June 27 Painesville City Council meeting.
City Manager Doug Lewis has asked the council to pass resolutions authorizing him to proceed with proposed development projects near Kiwanis Recreation Park and at Victoria Place. He requested that the council pass these resolutions under second reading at the June 27 meeting.
Resolutions 2 through 4 address the former hotel site at 257 E. Main Street, the development of which Marous Development Group has proposed under the Grand River Walk Limited Liability Corporation. Resolution 2 allows Lewis to enter into a development agreement with Grand River Walk, LLC. Resolutions 3 and 4 allow the city to lease nearby parking spaces from Lake County and sublease them to the corporation, which Painesville Economic Development Director Cathy Bieterman says "will help accommodate the full and optimal use and functionality of the development and project."
At the June 20 council meeting, Bieterman noted that the proposed mixed-use development would incorporate a "120 unit residential component with up to 20,000 square feet of commercial space on the first floor." She added that the city expects that the retail space "mostly will be focused on retail and restaurant."
Lewis noted that this development is part of a proposed entertainment district. This district would include the proposed amphitheater near the Grand River and possibly extend to include areas around Main and State streets.
Resolution 5, meanwhile, authorizes and directs Lewis to enter into a memorandum of understanding for the redevelopment of Victoria Place on Painesville Square by Renew Partners, LLC, under the Vic Place Limited Liability Corporation. Bieterman noted that this memorandum would involve a proposed tax increment financing district, which she stated "is designed for urban revitalization and will allow the funds generated within the TIF to be used to pay for...[public] infrastructure improvements as well as private improvements."
Bieterman said that the proposed redevelopment of Victoria Place "would include commercial office space, multi-family, retail and restaurant development that, again, would be a catalyst of positive change, investment and employment within our downtown."
The city and developers presented on both projects at the June 13 Painesville City Schools Board of Education meeting, as the school district would be affected by creation of the TIF.
Bieterman noted at that meeting that she has applied for grants for these projects.
A representative from Marous noted at the school board meeting that unlike other nearby communities, Painesville already has people working downtown. Lewis stated that bringing people downtown would lead to an increased demand for services.
A representative from Renew Partners said at the board meeting that the redevelopment of Victoria Place would target young professionals and empty nesters.
In addition to TIF funds, Bieterman noted that these projects may also be funded by opportunity zone funds and a transformational mixed-use tax credit program.
"The Opportunity Zone Fund allows investors to invest in the project and defer tax payments on capital gains realized from prior investments," she said. TMUD would "provide a tax credit against the development costs incurred during the construction of a project that will be a catalyst for future development in the area if awarded."
