Euclid Avenue’s John Hartness Building has long been on the list of imminent luxury-hotel makeovers downtown. The 2010 out-of-state purchase of the complex was something of a downtown development bellwether — hospitality snazz promised amid the long-forsaken patches of blight along the Euclid corridor. The city rejoiced.
But as similar projects have risen up and cast a sparkling glimmer across Cleveland’s outward revitalization, the impending Le Meridien development at the JHB has been a vortex of legal wrangling and refinancing. Presently, project heads are lining up their plans to meet a Sept. 1 state deadline — the end-point of a fresh 90-day extension to close on financing the project and activate $11 million in preservation tax credits first allocated to the project eight years ago.
The team behind the hotel project is coming out of a legal settlement — one brought on by seven eastside residents who had raised nearly $1 million for the project four years ago and who were becoming concerned with their investment.
But that’s just a small portion of the overall cost of this thing. The development team is presently seeking a $36 million loan. Another $10 million is expected to come from the buzzworthy EB-5 U.S. visa investment program. In short, as part of that program, 20 overseas investors would put up a combined $10 million and promise to “create” 10 new jobs through their investment.
For now, we’ll wait for the tax credit deadline to arrive.
We’ll also wonder aloud whether the context of the Le Meridien project has changed at all. Is Cleveland — the quickly evolving U.S. city du jour, and our home — different than it was in 2010? Should the state be contorting itself to extend tax credit privileges for massive upscale hotel projects in downtown Cleveland?
Tourism rates are up, yes, but as of March 2015, according to the Downtown Cleveland Alliance, hotel occupancy downtown sits at 67 percent (more or less in line with 2014’s average).
To get back to the simpler numbers at play, the Le Meridien hotel is expected to include 206 rooms. Its opening date is set nebulously for “2017.”
Subscribe for News
Join Professionals on EB5Projects.com →
This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. EB5Projects.com LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.