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Robin Whitney, who is spearheading ProMedica’s move downtown to the former Toledo Edison Steam Plant, told business leaders Tuesday that tax credits to help defray the costs are a critical piece of the financial plan for the $40 million project.
ProMedica, which operates a dozen Toledo-area hospitals, announced plans earlier this year to move 700 or more employees from 12 locations and consolidate its operations in one campuslike setting along the Maumee River.
The headquarters would occupy the former power plant and part of the adjacent KeyBank building.
Ms. Whitney, vice president of property acquisition and development for ProMedica, addressed the Toledo Regional Chamber of Commerce during its monthly breakfast meeting about plans to update the KeyBank building and create a modern open concept office inside the historic facade of the steam plant.
Funding for the renovation will come from multiple sources, including the sale of ProMedica-owned properties, such as its current headquarters on Richards Road, ProMedica officials previously said.
Ms. Whitney said ProMedica is applying for competitive historic tax credits for the steam plant renovation, and for new market tax credits to help make the project “economically viable.” In an email statement to The Blade late Tuesday, Ms. Whitney said the tax credits are an essential funding source and without them, “we will have to re-evaluate.”
“We are talking about something in the neighborhood of $12 or $13 million of incentive that’s obviously critical to the finances of the project and really was important in our decision making to pursue the project — that and parking are still critical decisions that still need to be vetted out before we would make sure that we’re coming,” Ms. Whitney said at the breakfast meeting.
She said the tax credits are also dictating the timeline for completion of the project. “The new market tax credits, we are going to submit for those in September but we won’t hear until next summer, so we likely can’t start construction until probably fall of 2015.”
Lisa Ward, a city spokesman, said the city is hopeful that ProMedica will get the tax credits.
“Bottom line is they have to do what’s most economically feasible for them,” she said.
Rudolph/Libbe Inc. has been hired to oversee the renovation project, Ms Whitney said. ProMedica is hoping to move in the fall of 2016, she said. The KeyBank building renovation could occur sooner so some employees, including ProMedica president and chief executive officer Randy Oostra, may move downtown earlier, Ms. Whitney said.
ProMedica also sees the parking garage as a key piece toward moving the project forward, and Ms Whitney said she is working to finalize a solution in the next few months.
The health-care company would like to build an underground parking structure adjacent to Promenade Park on the site of the former Federal Building.
Contact Marlene Harris-Taylor at email@example.com or 419-724-6091.