Sunday, March 18, 2007

tax credits, restoration, and economics

i will shout youngstown: from one theater to another theater -- Here's something unique and refreshing: Our Youngstown friend Janco shows how the numbers might work on a proposed downtown theatre restoration by the partnership of Paul Warshauer of Grand Venues in Illinois and Lou Frangos of USA Parking in Cleveland. Janco's reporting works well because he uses pictures of the legal pad on which the rough estimates appear:

Let's focus on a few of the numbers:The idea, as proposed at the meeting was to utilize the basement, the main floor for theater, and the upper floors for two small modern theaters (editor's note: hopefully with a bar serving alcohol in the back). The first photo of these easel has for all of these components the square footage, renovation cost per square foot, and total cost. So for the individual floors, this would come out to:

9,750 sq. ft. $573,250 - Basement
9,300 sq. ft. $2,785,000 - Street Level Theater
1,950 sq. ft. $585,000 - Mezzanine
4,250 sq. ft. $1,225,000 - Upper Cinemas A&B

Thus the total estimate for the project is a total of 26,950 sq ft of renovated space, at an average of $216 a sq ft, for a total of $5,829,500. So this brings up a question . . . really the 5,829,500 dollar question: Who might pony up the cash for this project?

Well, as presented, here are some numbers:

20% - Federal Historic Tax Credits = $ 1,165,900
15% - Ohio Historic Tax Credits = $ 874,425
10% - The LLC of the owners = $ 582,950
5% - "Direct Grants" = $ 291,475
50% - Dontations from public, YSU, naming rights,corporate sponsors, etc. = $ 2,914,750

You can look at the picture for further information. I'm making no judgement on this one, just reporting the news.

1 comment:

  1. What is the staus of Mr Warshauer GVI and the Paramount Theater. Where is Mike Novelli the partner of Grande Venues? We have heard Mr Warshauer is now in Grand Island, Nebraska working on a theater/condo development project in the former Masonic Temple.

    Big plans for a temple
    Chicago developer purchases Masonic Temple for $70,000