Flanigan project in Elyria seeking $3.4 million in Ohio tax credits

ELYRIA — A project by developer and businessman Kevin Flanigan, who owns a number of properties on Broad Street in downtown Elyria, is in the running for more than $3.4 million in state tax credits, the Ohio Department of Development announced last week. Flanigan's group, Elyria Block Development LLC, has applied for $3,414,100 in general Transformational Mixed-Use Development tax credits for its Downtown Elyria Redevelopment plan. The tax credit would help Flanigan redevelop 7 Kersetter Way and 100 Washington Ave. (formerly Uncle Vic's), 401-415 Broad (the Robinson building), 417-425 Broad St. (the Dixon building, former home of the Powerhouse Gym), and 381 and 371 Broad St. (formerly the Mussey Block) in downtown Elyria. A transitional mixed-use development, or TMUD, is defined as "a project that consists of new construction or the redevelopment, rehabilitation, expansion, or other improvement of vacant buildings or structures, or a combination of the foregoing," that "will have a transformational economic impact on the development site and the surrounding area" or "integrates some combination of retail, office, residential, recreation, structured parking, and other similar uses into one mixed use development." The tax credits result from a portion of the property owner's share or insurance company's share of the increase in tax collections. Because the proposed project is more than 10 miles away from the nearest major city (Cleveland), it must include at least one new or previously vacant building taller than two stories or with a floor area of at least 75,000 square feet or two or more new buildings on the same parcel of land or adjoining parcels with at least 75,000 square feet of floor space, according to Ohio law. Eleven total projects are vying for approximately $32.8 million, according to a list of applications for the program submitted to the state DOD earlier this month and obtained by The Chronicle-Telegram through a public records request. Flanigan, of Grafton, bought the former Powerhouse Gym at 419 Broad St. in downtown Elyria for $157,000 in September 2020. The Robinson building at 401-405 Broad St., which he also owns, nearly caught fire when the former Uncle Vic's between Kerstetter Way and Washington Avenue burned down on Feb. 24. Flanigan tore down his Mussey Block property this year rather than rehabilitate it. Companies tied to him now own the entire city block between Kerstetter Way and Washington Avenue. A message seeking comment on the tax credit application was left for Flanigan on Friday. Elyria Mayor Frank Whitfield shared some visions of what a redeveloped downtown block atop the former Uncle Vic's property might look like during his March 2021 State of the City address. Contact Dave O'Brien at (440) 329-7129 or dobrien@chroniclet.com. Follow him @daveobrienCT on Twitter.