Plans unveiled for historic buildings

Mich. firm outlines strategies for downtown's Spitzer, Nicholas

The developers propose turning the Spitzer Building, left, into a mix of office, retail, and apartments and the Nicholas Building into an ‘artist community’ of residential, studio, and display space.

A Michigan-based company has grand plans for two historic buildings in downtown Toledo.

Ojibway Development LLC of Berkley, Mich., has a contract to purchase the landmark Spitzer Building and its cousin the Nicholas Building at Madison and Huron streets. Bruce Michael, company co-owner, said he wants to renovate the properties, turning the Spitzer Building into a mix of office, retail, and apartment units and the Nicholas Building into an “artist community” where creative people would live, work, and display their wares.

It’s not the first time development strategies for the buildings and other downtown landmarks have been unveiled, many times only to get stuck in a state of limbo. Ojibway Development must wait for foreclosure proceedings against the building’s current owner — a San Francisco private equity firm owned by Koray Ergur — to be complete so it can follow through with the purchase.

However, officials involved in downtown development efforts and the Spitzer Building Co., which holds the note for both buildings, said they are convinced Ojibway is serious about the project and lauded what they believe will be a massive boost to the revitalization of Toledo’s core.

“It’s the best plan that I’ve seen,” cheered Bill Thomas, chief of the city’s downtown improvement district. “I’m very excited about the project. I think the project itself is very realistic and has a lot of pragmatism surrounding it as far as how much money should be invested to turn this into a viable project.”

Mr. Michael said his firm, which has experience renovating old buildings in other states, plans to invest $30 million in the Toledo project, taking advantage of government incentives such as historic and low-income-housing tax credits. He said he has spent almost a year working on the plans, coming up with designs and meeting with stakeholders, particularly artists, in the downtown community.

Central to the plan is converting the now-shuttered Nicholas Building into a work and living space for artists, complete with studios, a performance area, art gallery, and affordable-rate apartments.

The upper 15 floors of the 17-story building would be converted into loft apartments, with 37 of the 145 units set aside as “live-work” dwellings for people in the creative trades. These apartments would be marketed primarily to those working in artistic fields and would be priced to accommodate their income level, Mr. Michael said.

The idea grew out of meetings with Toledo’s Arts Commission and other local entities and people involved in artistic work, the developer added.

For those with higher incomes, Mr. Michael said he plans to convert the top five floors of the 10-story Spitzer building into market-rate apartments. He would consolidate existing offices on the lower four floors and retain a retail area on the first floor. He said he also hopes to convert the nearby Nasby and Wayne Buildings — both also known as the Madison Building — into automatic parking facilities while restoring their outer historic features. That effort would depend on decisions by the city, which now owns the buildings.

Mr. Michael said he is convinced his firm’s plans will work, both for the company and for downtown Toledo. He cited high occupancy rates in other downtown rental buildings, including the Commodore Perry and the LaSalle and demand for units at the recently opened Standart Lofts, as evidence of a resurgence of interest in downtown living.

The housing crisis, along with a tendency among young people to marry later and change jobs more frequently, has pushed up demand for rental apartments in central-city areas across the nation, Mr. Michael said.

“There’s a trend going on nationally and also in downtown Toledo: that is that downtowns are filling up,” he said. “We’ve gone from downtowns being places that were shunned by people moving into the suburbs for a bigger lot … to where that trend has reversed and now we’ve got significant development that’s occurred in downtowns.”

Key to revitalizing downtown areas is bringing more people in to live in them, Mr. Michael explained. Once the population increases, businesses such as retail, entertainment, bars, and restaurants will follow, he indicated. He said a similar turnaround has occurred in Grand Rapids, Mich.

Toledo’s downtown has a great deal of pent-up demand for rental living space, Mr. Thomas said. The Huntington Center, Fifth Third Field, and clubs and restaurants in the area are drawing people into the city, he said.

“People want to be downtown to just be a part of all of that,” he said. “We’re on a rebound right now.”

Councilman Paula Hicks-Hudson, whose district includes downtown, said she is very excited about Ojibway’s plans. The Huron and Madison street intersection is at the epicenter of the city, and bringing the buildings there back to life would have a huge impact, she said.

“While you’ve got development in the Warehouse District and the Marina District shaping up, there really hasn’t been a lot of activity [at that intersection],” she said. “This will hopefully bring that critical mass of people working and living downtown that will bring in additional businesses.”

Councilman Rob Ludeman, who is a real estate agent, echoed her enthusiasm. “I see this as being at the heart of downtown Toledo. That intersection really is considered to be the center point for downtown,” he said. “I think it’s really an exciting opportunity for the developer, for future tenants and for the city.”

Mr. Michael said he is hopeful the sale will be finalized in the spring so construction can begin this summer.

Business owners inside the struggling arcade on the first floor of the Spitzer Building meanwhile expressed cautious optimism about the project.

“I’m hopeful, but I’m guarded,” said Sharon Cummings, owner of the Downtown Print Shop, who has been in the building 28 years. “We’ve heard things before. I don’t want to exactly say I’ll believe ‘em when I see ‘em … “ she trailed off.

Inside the convenience store Shop Shop, owner Angela Nochle gave a less tentative response.

“It can happen. Why not?” she said. “This is such a beautiful building. We need somebody to bring it back alive, because now it’s dead.”

Contact Claudia Boyd-Barrett at cbarrett@theblade.com or 419-724-6272.