New Corporate Headquarters Replaces Surface Parking
In June 2013, The Port issued facilities revenue and improvement bonds to finance the construction of a public parking garage at Fifth and Race streets in downtown Cincinnati.
Fifth and Race is a mixed use project that will include a $125 million new corporate headquarters for 84.51 for 1,000 employees, a 1,000-car below- and above-ground parking garage, and approximately 25,000 square feet of ground-level commercial space. 3CDC is the developer of the project and will own and operate the parking garage and commercial spaces and 84.51 will own and operate their office building.
The Port served as the conduit issuer for $36 million in first mortgage loan bonds. Two-thirds of the bonds are tax-exempt and one-third of the bonds are taxable. The proceeds of the bonds were used exclusively for the construction of a public parking garage. The bonds will be paid from Tax Increment Financing (TIF) service payments, special assessments, and special funds as well as revenue from the parking garage.
Total project costs for the parking garage and ground-level commercial space are $62.5 million. In addition to the Port Authority bonds, project financing includes $37 million in New Markets Tax Credits, a $7 million loan from JobsOhio, a $3.4 million loan from the Cincinnati New Markets Fund II, and a $5.3 million loan from the Cincinnati Equity Fund II. Financing for the construction of the office tower took place as a separate transaction.