$10 million local vision could transform former Holiday Inn into downtown gem

MANSFIELD — Jay Goyal was just 4 years old when the Holiday Inn on Park Avenue in downtown Mansfield opened in 1984.

Over the last four decades, like other area residents, he has seen the once thriving 160-bed hotel, conference center and popular gathering place sink, rise and sink again over the years, primarily in the hands of out-of-town owners.

Now 45, the Mansfield business owner and engineer is leading a group of local investors who plan to bring the former downtown hotel back to life at 116 Park Ave. West, sparked by a plan that will pump around $10 million into the facility.

The Lexington High School graduate and president of Goyal Industries said the investment into Mansfield is “very much in line” with what he had in mind when he made the decision to step away from politics more than a decade ago after three terms in the Ohio House of Representatives.

“When I was in the House, I did a lot of work around the state budget and economic development. That’s one of the areas in which I really enjoyed working …. helping create policies that would create jobs and improve the lives of people,” Goyal said Thursday morning.

“(But) there’s only so much you can do when you’re in office … when you’re in government … when you’re on the official side, so to speak. There’s so much more you can do when you’re a private citizen,” he said.

“This (new project) fits in exactly with kind of that mentality and mindset,” said Goyal, who earned a bachelor’s degree in industrial engineering from Northwestern University in 2003.

He later graduated from the MPP and MBA joint-degree program between the Harvard Kennedy School and Harvard Business School in May 2015, shortly after leaving state office as one of the rising stars in Ohio’s Democratic Party.

Planned hotel redevelopment adds to downtown momentum, Goyal says

The project is in keeping with other downtown momentum projects, including the Main Street Corridor Improvement Project and the Richland County Foundation to create downtown living spaces in buildings donated by John and Mimi Fernyak.

“I have been interested in downtown revitalization and how I might be able to play a role in it,” Goyal said. “My business partner approached me about this deal and I just thought it would be a great opportunity to contribute to the growing momentum we have downtown,” he said.

“I don’t think the need for what we’re doing would have been any less 10 years ago. But I do think that all of these things happening at the same time will just build on one another and reinforce one another and hopefully contribute to the success of one another,” he said.

The plan is to redevelop the former Holiday Inn into an upscale boutique hotel designed to serve both business and leisure travelers, as well as the local population.

It includes a proposed Community Reinvestment Area agreement and development partnership set for consideration by Mansfield City Council on Tuesday. That agreement would provide a 75-percent property tax abatement for 12 years.

The project — led by Goyal and his business partner Snehal Patel — represents a “significant step toward revitalizing a long-standing community asset through a combination of private investment and public partnership,” according to the group.

The project is backed by a broad coalition of local investors, including Mark and Beth DeLaney; David and Leslie Eichinger; the Gorman Family; Rich and Gayle Gorman Green; Chuck Hahn; John and Maura Siegenthaler; and Rick and Carol Taylor, reflecting strong community support and alignment around the vision for downtown revitalization.

Local control of the site is key, according to Goyal.

“It’s essential (when putting) in the amount of money that we’re talking about putting in, particularly to elevate it to the level we’re talking about. Maybe even more importantly beyond that … operationally, it needs to be run by people who live here, who know the community and care about the community in order to be successful,” he said.

“We see this as more than a hotel project,” Goyal said.

“It’s an opportunity to contribute to the continued momentum of downtown Mansfield and create a place that reflects the strength and potential of our community.

“This property was once a vibrant community hub and we intend to bring that back. For me personally, this hotel was a big part of one of the most important moments in my life – my wedding. Today, it no longer serves that role. Our goal is to restore it to that standard and beyond – to create a true gathering place for Mansfield, an indoor town square,” he said.

City helped when original downtown hotel was built for $7 million

The city assisted when the hotel was built at a price tag of $7 million.

“The city recognized how important it was for a community such as Mansfield to have a downtown in its urban core and have a full service hotel in its downtown … one that had a conference space … one that had food and beverage,” Goyal said.

“That need didn’t necessarily go away even though the hotel has declined over the years,” he said.

The redevelopment, currently planned under the working name The Hearth & Forge Hotel, will include a comprehensive renovation of the entire property, with improvements to both the interior and exterior.

Plans include the reopening of the banquet and event center, along with upgrades to guest rooms, conference spaces, pool area, bar, and restaurant, positioning the hotel as a high-quality destination in downtown Mansfield.

Initial design and pre-construction work are already underway, Goyal said.

“This is a rare opportunity to take an underutilized asset and reposition it in a way that meets the needs of today’s market while still serving the local community,” said Patel, already in the local hotel business.

“We’re approaching this with a long-term mindset – focused on quality, execution, and creating something that the community can take pride in,” he said.

Goyal said the development team is working in close collaboration with The Renaissance Theatre, with plans to create a complementary relationship between the hotel and the Renaissance’s programming and events.

The partnership is intended to enhance the visitor experience while strengthening downtown’s role as a regional destination for arts, culture, and gatherings.

“This is the kind of project that brings people together,” said Gayle Gorman Green. “It’s more than a building – it’s creating a place for connection, events, and community life in downtown Mansfield.”

David Eichinger said everyone has seen what the property once meant to Mansfield.

“There’s a real sense of excitement around bringing it back in a way that reflects where the community is today and where it’s going, while also addressing the need for a high-quality hotel in the downtown core,” he said.

Local restaurateur Dan Lew is involved

In addition, the team is in discussions with local restaurateur Dan Lew regarding a potential food and beverage concept within the property.

“Mansfield has a strong and growing dining scene, and we want to be additive to that,” said Lew, owner of DLX downtown.

“The goal is to create a concept that complements the hotel and supports the broader downtown ecosystem – something that works alongside existing restaurants and gives people another reason to spend time in the district.

“I’m especially excited about the opportunity to create jobs, partner with local vendors, support culinary incubation, and help attract additional visitors through events, conventions, and conferences,” Lew said.

The proposed development agreement outlines a public-private partnership structure designed to support the project’s financial feasibility while delivering long-term economic benefits, including increased visitor traffic, job creation, and additional tax revenue.

The property remains under contract, and the transaction has not yet closed. The development is contingent upon final approvals, including action next week by City Council.

If approved, the project team anticipates moving forward with detailed planning and initial improvements in the coming months.

“We’re encouraged by the conversations we’ve had so far,” Goyal added. “There’s a shared belief that this project can play a meaningful role in Mansfield’s next chapter.”

The current owner, Ken Pansuria of California, owes $89,105 in back property taxes, according to the Richland County Auditor’s website. That and other issues will be resolved before the deal closes, according to Goyal.

He credited Mansfield Mayor Jodie Perry, Barrett Thomas with the Richland Area Chamber & Economic Development, Richland County Commissioner Tony Vero and state Sen. Mark Romanchuk for their assistance to this point in the process.

“Anytime we’ve had a question or needed some information or needed assistance with something, they have been willing to do whatever they can to be supportive of the project,” Goyal said.

Community Reinvestment Area Tax Incentive agreement spells out details

The Community Reinvestment Area program is an Ohio economic development tool allowing municipalities/counties to provide real property tax exemptions for property owners who renovate existing buildings or construct new ones. It acts as an incentive for investment in designated areas.

According to the CRA headed to council, the hotel “no longer fulfills its intended role.”

“In its current condition, it does not support tourism, business activity or community events at the level required for a healthy and growing downtown,” it said.

“Instead, it represents a visible gap in the city’s core infrastructure and a missed opportunity to fully realize the potential of downtown Mansfield,” the agreement said.

The CRA said the redeveloped hotel will offer about 102 rooms, multiple conference and meeting spaces and a banquet facility capable of hosting up to 250 people.

“More than a building renovation, the project is designed to reestablish this property as a central hub for business activity, tourism and community engagement in downtown Mansfield,” the CRA said.

The tax agreement said 9.5 new jobs will be added at the facility with an estimated additional payroll of $728,000.

The CRA said the local investment group will spend $2.5 million to buy the building and will spend more than $6.1 million in renovations.

“Without public participation, the project is not economically viable at the level necessary to deliver a high-quality, competitive asset,” the CRA said.

“The development team is aware that the current property ownership has outstanding delinquent real estate taxes. As part of the acquisition and closing process, any delinquent taxes will be satisfied in full at or prior to closing.

“Upon completion of the acquisition, the (hotel) will be under new ownership and management, with a clear commitment to reinvestment, ongoing operations and compliance with all tax obligations,” according to the CRA.

From the city administration’s standpoint, “It is also important to note that, absent this project, the property is likely to remain underutilized without significant investment and the conditions necessary to justify a CRA incentive would not exist.”

The city said the CRA is tied specifically to the new owners and will not benefit the current ownership.

“(It’s a) tool to enable new investment that will restore the property as a productive, tax-generating asset for the city.”

Goyal said council’s support of the CRA is needed to make the deal work.

“I would say it’s extremely crucial. We’re doing this, and if you talk to any of those investors, I think they tell you the same exact thing: they’re not going to invest with the hopes of making some cash return,” he said.

“They’re investing because they want to see Mansfield thrive. There is an enormous amount of risk in doing this project and so all the support and help that we can get is crucial.”