COLUMBUS, Ohio (COLUMBUS BUSINESS FIRST) -- Without a $3.4 million tax credit from the state, Columbus-based RiverWest Partners wouldn't have been able to fulfill its vision for its $35 million Delaware development.
But now that the project has been granted a transformational mixed-use development tax credit, Principal Brenen Palma said the firm is confident it can make its plan a reality. He said the incentive will help the firm “go above and beyond” when restoring the historic Delaware Company Manufacturing building, which will serve as the development's centerpiece.
“This will help us retain that building both for the soul of the project and for its future use,” Palma said.
The state opened applications for its inaugural transformational mixed-use development program in September 2021 in an effort to transform and revitalize downtowns. To land the credits, developments must include an influence on the economic and social well-being of the immediate site and surrounding area that will influence long-term change on the area.
The tax credit can be used to help finance thing such as new construction or the improvement of vacant buildings, according to the Ohio Department of Development.
Applications closed in October and credits were doled out last week.
RiverWest was one of five Central Ohio projects to receive a tax credit. Others include the second phase of Gravity, Connect Realty’s project on the former Value City property, CoverMyMeds’ new Franklinton campus and the Newark Arcade redevelopment.
The Mill on Flax will bring 180 residential units, 3,000 square feet of residential amenity space, and 5,000 square feet of commercial space to 4.6 acres at 1 Flax St., east of downtown Delaware.
The firm and the city of Delaware hope the project will serve as a catalyst, kicking off development in the new Riverfront District, Palma said. RiverWest has been working closely with the city on the project but has not formally submitted any applications.
"It seems that with this incentive and our planned project over there, we have alignment with all stakeholders involved which makes for an exciting project," Palma said.
The tax credit will not be issued until the project is completed and the developer or applicant shows they incurred the costs they said they would, according to the Department of Development. Eligible costs include building acquisition, demolition, site improvement, and new construction of the site.
For more business headlines, go to ColumbusBusinessFirst.com.
