Music Hall Financing in Place
Posted on October 13, 2016 by jrudemiller
Project leaders breathe easier as fundraising continues
CINCINNATI (October 11, 2016) – The Cincinnati Center City Development Corporation (3CDC), Music Hall Revitalization Company (MHRC), and the City of Cincinnati reached the long-awaited closing on the historic tax credit and bridge loan financing for the $135 million renovation of Cincinnati’s Music Hall. The closing, which occurred last week, puts in place a complicated structure that includes four banks, two forms of tax credits, and dozens of major philanthropic donors.
U.S. Bank, PNC Bank, and Fifth Third Bank are providing the bridge loan financing to the project, a $62.5 million loan to bridge construction costs as multi-year philanthropic pledges are realized over time. The debt also bridges part of the $45 million in Ohio and Federal historic tax credit equity, provided by AIG Global Real Estate, U.S. Bank Community Development Corporation, and First Financial Bank.
“The process of securing these loans with multiple sources proved to be a complicated exercise,” said Stephen G. Leeper, 3CDC’s president & chief executive officer. “But the credit goes to our local banking community for ensuring that one of the nation’s most treasured performance venues receives the necessary capital for massive improvements that will enhance the performer and patron experience.”
The project has approximately $3 million left to raise toward its goal. MHRC is spearheading that fundraising effort with $65 million already in place from major donors such as the Carol Ann & Ralph V. Haile, Jr. / U.S. Bank Foundation.
The rest of the project funding is coming from the City of Cincinnati and the State of Ohio through the Ohio Facilities Construction Commission.
“The renovation of Music Hall is made possible through a strong partnership,” Mayor John Cranley said. “I want to express my gratitude to 3CDC for their outstanding development efforts and to the Lindner Family, the Haile Foundation and Otto Budig for their generous financial contributions. The City, 3CDC, MHRC and many project stakeholders have collaborated to ensure that Cincinnati can enjoy this architectural gem for the next 150 years.”
The renovation began in August of 2015 with preliminary work backstage in Springer Auditorium. Work in the North and South halls commenced in December 2015, and Music Hall’s venerable performing arts tenants moved out in the second quarter of 2016 when the building closed for comprehensive work throughout. Music Hall will reopen in October of 2017.
Music Hall is owned by the City of Cincinnati and leased to MHRC, which contracts with the Cincinnati Arts Association (CAA) to manage the building. 3CDC is serving as the developer on the renovation project, with Messer Construction as the construction manager. The design team is comprised of PWWG, Martinez + Johnson, Schuler Shook, and Akustiks.
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