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Two panels of elected officials voted simultaneously last night to approve agreements authorizing the Downtown Lakewood development to start as early as Aug. 30, 2025. The $119 million mixed-use project will finally repurpose the former site of the city-owned Lakewood Hospital that closed in 2016 and has sat largely devoid of structures for five years.
City Council approved three ordinances — a development agreement with a team of companies led by Columbus-based CASTO, a final development plan and rezoning as a Planned Unit Development, and a school compensation agreement. The latter was also approved by the school board last night. Last night’s approvals followed those by the city’s Planning Commission and Architectural Board of Review. Lakewood-based Dimit Architects is overseeing the project’s design.
The project will include both new construction and the renovation of the historic Curtis Block. The 5.7-acre site is bounded by Detroit Avenue to the north, Marlowe Avenue to the east and Belle Avenue to the west. This project will literally fill a huge void in Lakewood’s traditional, walkable Downtown. The site was excavated for a previous attempt at developing it, leaving a low spot in its middle that’s derisively been called “The Pit.”
Construction sequencing will proceed from north to south, ultimately providing 305 housing units. Of that, 293 will be apartments spread across three new buildings, with 20 percent of those designated as affordable to families earning a median income. Another five renovated apartments will be on the second floor of the historic Curtis Block, above ground-floor retail. To be built last will be seven townhomes on Belle Avenue.
Also planned is about 25,000 square feet of new ground-floor retail in the northernmost new structure called Building One, in addition to the renovation of the Curtis Block’s first-floor retail space. A key feature of the approved development plan is a 17,000-square-foot plaza and community space set between the Curtis Block and a five-story mixed-use building at Belle and Detroit.
This public space will be used for public events and gatherings and a public-access easement was included in the development agreement for this and two other public spaces. One is a similarly sized new public pocket park further south in the development and a linear park along Belle.
A total of 567 structured parking spaces are included — a 536-space, 3.5-level parking garage with 100 of its spaces reserved for the public and 75 spaces for Cleveland Clinic’s Lakewood Family Medical Center across Belle. Another 31 garage spaces will be within Building One, a five-story commercial and apartment building.
There is a project timeline in the development agreement. The property will be transferred by the city to the developer with title taken by July 2025. As early as a month thereafter, depending on a three- to six-month site due diligence and the timely awarding of permits, construction will proceed. By June 1, the developer shall apply for all necessary permits for all buildings. All buildings in the development are to be constructed within 40 months after permits are issued by the city.
“This development will deliver hundreds of housing units with diverse options, thousands of square feet of new commercial space, new jobs and income tax revenue, a welcoming public space, high quality architectural and environmental design, historic preservation of the Curtis Block, and increased activity in the heart of Downtown Lakewood,” said Mayor Meghan George in a written statement.
“We are thankful to all the parties who worked over the years to get this project to this point,” said Brent Sobczak, president of CASTO Communities. “It took a lot of perseverance and collaboration to work through all the challenges associated with the project. Ultimately, all the hard work and patience will pay off with a development that we can all be proud of.”
“This project not only creates a new tax base where none has ever existed, but also delivers historic preservation, affordable and accessible housing, public art and green space, and further bolsters the density and vibrancy of the heart of our city,” City Council President Sarah Kepple said.
“The success of our city and our school district is intrinsically linked,” said Lakewood School District Superintendent Maggie Niedzwiecki. “This development is a once-in-a-generation project that will strengthen Lakewood as a desirable place to live and raise a family. Our board of education and our district administration are proud to partner with the city to help make this long-awaited development come to fruition.”
Three property tax increment financing (TIF) packages were approved by the city and school board for the project. They were a 15-year non-school TIF on the multifamily portion of the project, an 30-year, 85 percent TIF on the commercial uses and a 30-year, 100-percent TIF on the parking garage.
The site was designated a Community Reinvestment Area (CRA), allowing a property tax abatement on structures for up to 15 years. Although the TIF will outlive the tax abatement on the commercial and parking structures, the schools will be paid an annual service payment equal to 100 percent of taxes that they would otherwise have received if there was not a TIF, Lakewood Planning Director Angela Byington said at last night’s City Council meeting.
All three parties — the city, schools and developer — will equally split excess revenues generated by the this project’s TIFs. The school district will collect on any new voted levies outside of the term of the CRA on the multifamily component. And the school district will get a 50 percent share on all permanent income tax revenues generated over 30 years.
The city also approved a $5 million loan to CASTO to build the parking garage with the first few years requiring interest-only payments. It has a 30-year amortization but is to be paid back over 10 years, said Renee Mahoney, Lakewood’s finance director.
“The city worked closely with the school (district) to draft this agreement as both parties understand the benefits to the city and the schools with the new families, retail and community space that will provide a boost to our downtown,” Byington said. “Further, this site has not produced real estate tax in decades and the project will create new revenue for both the city and the schools.”
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