The scope of MRN Ltd. of Cleveland’s proposed renovation of the former Voss Industrial complex, at 2168 West 25th St. south of the West Side Market, is starting to come into focus.
Legislation for the city to provide tax increment financing (TIF) for redeveloping the old factory, introduced Monday, May 22, indicates it will be a $62 million project. The measures also point to the use of the property before Voss began operations there in the 1950s, as the property first served as a producer for carriages and electric cars.
A letter from the city’s economic development department accompanying the measure provides a little more color on the retail component of the mixed-use project, including pickleball and indoor mini-golf use, as well as a food and beverage operation occupying about 50,000 square feet.
Another 25,000 square feet will be devoted to restaurant and retail use, and 24,000 square feet to office or co-working space.
The project will include 92 apartments.
The briefing document by economic development indicates the completed operation will create 125 jobs with a total estimated annual payroll of $3.75 million.
MRN has requested the typical 100% abatement for the non-school portion of property taxes for 15 years in the TIF package. The developer will provide payments to the Cleveland Municipal School District for lost taxes. The TIF also would go into effect after the standard — at least for now — 15-year tax abatement expires.
The TIF will help the developer handle debt payments on the project’s financing. Although taxes on improvements to restore the property to active use will be abated, the developer will have to continue to pay existing taxes on the land.
Cleveland City Council assigned the measure to the Bibb administration for review.
MRN also has applied to the Ohio Department of Development for a $5 million allocation of State Historic Preservation Tax Credits in the program’s 30th round, according to state records. The state has said it will announce which projects win an award at or near the end of June.
Ari Maron, spokesperson for MRN, did not reply to an email or phone call from Crain’s by 2:20 p.m. Friday, May 26.
MRN paid $7.5 million for the Voss property in 2021. It incorporates multiple interconnected buildings. The property was available after Voss moved to a single-story industrial building in Berea in 2019. Voss had created parts for aircraft since taking over the complex in the 1950s.
The complex served for years from the 1860s to the 1920s as the home of Rauch & Lang Carriage Co. The company switched to building electric cars in 1904 from horse-drawn carriages, according to The Encyclopedia of Cleveland History. After merging with Baker Motor Vehicle Co. to become Baker-Raulang in 1915, it made trucks for the U.S. in World War I.
After gas-powered cars won the auto market, the plant was put to use to become a maker of airplane parts.