TOLEDO, Ohio (WTVG) – Will Toledo ratepayers pump in extra cash for a new housing and retail complex?
Developers say the cost is rising for the Colony project and they need the city’s help moving a sewer project to complete the housing project.
Eventually, the 42 inch storm sewer will be increased to a 72 inch line through Central Ave. near Monroe St. To develop there, the line must be moved, so the Colony project requires more money to do so.
If financial assistance is granted, the Colony project will include 262 market-priced apartments, 120 hotel rooms, retail space and a restaurant on Central Ave. near ProMedica Toledo Hospital. But, it comes with a much higher price.
“Construction prices just went up in such a way that this project is up 29% in cost. There is an $8.6 million gap between the cost of the project in 2020 and what it is. costs today due to supply chain, escalating interest rates and of course rising construction prices,” said Brandon Sehlhorst, Toledo’s Director of Economic Development.
Sehlhorst and his team are asking the Toledo City Council for an additional $700,000 to move the storm sewer to the city right-of-way. It will be increased in size and may solve some West Toledo flooding issues. Originally, the city was asked to share with the developer the $1.5 million needed for the sewer project, but now the city is being asked to pay for it all.
“Since we announced this project, there has been a hurdle with construction prices. It’s been four auctions now and each time a gap has occurred,” Sehlhorst said.
The project was originally announced in 2020 and from there the developers say the cost has increased. Some worry that aid at this cost will set a precedent for future projects. Sehlhorst says the city has paid to move infrastructure in the past and notes the benefits when it’s replaced and improved.
“We don’t have green sites, we have brownfield sites, and that’s why we have to creatively use city tools, state and federal tools,” Sehlhorst said.
It’s the same developer who made the Marina District. This complex had about 100 more units and cost $2 million more than the colony is projected to be. 13abc has been advised that federal recovery funds cannot be used for a sewer project like this.
See a spelling or grammatical error in our story? Please include the title when you Click here to report it.
Copyright 2022 WTVG. All rights reserved.