State approves $16M tax credit for Hall of Fame Village in Canton

The Hall of Fame Resort & Entertainment Co. is receiving a $15.89 million state tax credit to help build a hotel and water park at the Hall of Fame Village in Canton.

The state announced the preliminary approval Wednesday through the Ohio Tax Credit Authority.

The Hall of Fame Village is one of 12 projects statewide receiving financial help in the second round of the state's Transformational Mixed-Use Development Program. The Hall of Fame Village is the only Stark County entity named as a recipient this round.

“We are incredibly excited to have been selected to receive this tax credit award, which by its very nature is further evidence of the state’s confidence in the significant economic impact the Hall of Fame Village is having on Stark County and the entire region," Hall of Fame Village Chief Financial Officer Benjamin Lee said in a statement.

“This support is an important piece of our financing model that allows us to responsibly bolster our capital stack without incurring additional debt. ... There is tremendous momentum around the entire project that reflects that work and the impact that it is already having within our communities. The power of the economic engine that we are building will be felt for many years to come."

The Hall of Fame Village's application said the total cost is $536 million to build a complex that includes a 180-room Hilton Tapestry hotel and football-themed water park located by the Pro Football Hall of Fame.

Hall of Fame Resort & Entertainment President and CEO Michael Crawford held a groundbreaking ceremony on Monday for the water park, which will feature high-thrill rides, football-themed decor, swim-up bars and giant television screens.

"Part of a larger vision of transforming the area, the project is the final step in the Hall of Fame redevelopment project including youth fields, a field house and an assisted living facility focused on memory care and drug addiction for former professional football players and coaches," according to the state paperwork. "The project is expected to create more than 1,000 permanent jobs and 473 construction jobs."

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Transformational economic value

State Sen. Kirk Schuring, R-Jackson Township, who helped create the state program, said the tax credits are designed to be less than the future state and local tax revenue generated from the development.

"As an Ohio legislative leader, I authored the law based on a 55-story office tower that was being planned to be built in Cleveland," Schuring said. "The purpose of the law was to give a special tax credit to projects that would have a transformational economic value. Accordingly, the new state and local taxes generated will exceed the amount of the tax credit producing a net tax gain. I’m glad that the Hall of Fame Village development project met those standards."

Other projects on the list include:

• An $8 million tax credit for building apartments, a hotel, retail and restaurant space, and Martin Luther King Jr. public library in the University Circle neighborhood in Cleveland.

• A $11.7 million credit for the rehabilitation of three historic buildings in downtown Cincinnati.

• A $13.09 million tax credit for rehabilitating the Erieview Tower and attached Galleria complex in downtown Cleveland.

• A $34 million credit for the North Market mixed-use project in the Merchant Building in Columbus to create residential units, office space, retail space and parking.

Ohio Transformational Mixed-Use Development program by Rick Armon on Scribd

The deadline for entities to submit their applications to the Ohio Department of Development to get the credits for the 2023 state fiscal year was July 8.

Gov. Mike DeWine's administration said the projects are expected to result in $1.29 billion in new payroll and $2.3 billion in Ohio-based investments.

“These projects will transform not only the sites themselves, but also the look and feel of entire neighborhoods,” DeWine said in a news release. “We’re changing the face of these communities and bringing Ohio into the future. I’m looking forward to seeing the tremendous change these projects create in their communities.”

The Ohio Tax Credit Authority preliminarily approves the tax credits prior to the development. But the credits are granted once development is complete.

The state law allocated $100 million each for fiscal years 2022 and 2023 for the program, with the Ohio General Assembly in September 2021 extending that to fiscal years 2024 and 2025.

No more than $80 million of the $100 million in tax credits can be allocated to projects within 10 miles of a major city, which is considered Akron, Cincinnati, Cleveland, Columbus, Dayton and Toledo. For the fiscal 2023 funding round, projects near major cities got $74.1 million in tax credits and those more than 10 miles from major cities got $25.9 million, according to the DeWine administration's press release.

Reach Robert at robert.wang@cantonrep.com. Twitter: @rwangREP.

This article originally appeared on The Repository: Hall of Fame Village and 11 projects get share of $100M in tax credits