The Douglas Inn on Monument Square is slated to be transferred from the Community Improvement Corporation to Miami Scioto Holdings, a for-profit arm of the Miami Scioto Development Company on Monday, according to representatives of CIC and MSD. The sales price is $80,000.
John Doss, an MSD officer, said a for-profit arm of MSD had to be formed to take advantage of state tax credits that recently became available to redevelop historic properties. The window for applying for these credits is small.
"That's what we're in a mad rush to do," Doss said of applying for the credits.
An Ohio Department of Development Web site states applications for this refundable Ohio Historic Preservation Tax Credit can be made July 2. Only 100 certifications will be granted this year to owners of historic buildings.
Doss said he and partners Jon Umstead and Pat Thackery want to be among the first to apply for the tax credits. He said they should know by the end of July whether they have been successful.
The three local businessmen formed Miami Scioto Development Company in 2005 when the Douglas Inn was the focus of a court case. Since then, they have been working with CIC in an attempt to buy and preserve the structure.
"We're glad we've been able to work with them through this process," CIC Executive Director Dave Faulkner said of the sale. "We're encouraged it will mean good things for downtown Urbana and the community as a whole."
MSD already has secured city approval to eliminate small additions made over the years to the back of the Douglas. Some repairs to gutters and masonry occurred earlier this year.
Doss said the building won't be gutted, but false ceilings, partitions and such will be removed from the interior.
"Our time frame for stabilization is two years," he said of an agreement MSD has with the city and Building Regulations to stabilize the Douglas by Dec. 8, 2008. He added stabilization and redevelopment may overlap.
The goal is to transform the building into a boutique hotel with office and retail that will draw tourists and businesses to Champaign County.
The first floor would include the hotel lobby, perhaps retail and office space and perhaps a banquet room, Umstead told the Daily Citizen earlier this year.
Offices would be on the second floor. Hotel rooms would be from the third through fifth floors.
Miami Scioto is acquiring loans for stabilization and exploring options to finance the rest of the project, Doss said.
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