MANSFIELD — More than 240 skilled cigar rollers worked in a building at 147 N. Diamond St. for The Hautzenroeder Co. more than a century ago.
The building has sat empty for many years, standing in silent vigil to a time when Mansfield’s cigar industry was among the national leaders at the turn of the 20th century.
The insides of that historic building may soon come back to life as part of the Downtown Forward project, aimed at creating 102 residential living units in 14 historic downtown buildings.
The Ohio Dept. of Development announced Wednesday that the effort to revitalize that particular building will receive $600,000 in tax credits through the state’s Transformational Mixed-Use Development program.
It was one of two awards announced for Mansfield. The other was a $528,220 TMUD grant for The Hearth and Forge Hotel on Park Avenue West, a project by a local development group led by Jay Goyal.
The TMUD program provides a tax credit against eligible expenditures paid or incurred during the development of a mixed-use real estate project.
According to the ODOD, a TMUD project can include new construction and/or improvement of vacant buildings that will have a transformational economic impact on the project site. This project must include a combination of retail, office, residential, recreation or hotel and hospitality uses into one mixed-use development.
Gov. Mike DeWine and ODOD Director Lydia Mihalik on Wednesday announced state support for 13 mixed-use development projects, expected to create more than $318 million in new payroll and $1.3 billion in investments across Ohio.
More than $110 million in state support was awarded through the fifth round of the TMUD program, supporting projects across 10 communities, including seven major city projects.
“Ohio’s continued success depends on communities that are vibrant, welcoming, and ready for growth,” DeWine said.
“Through the Transformational Mixed-Use Development Program, we’re proud to help our local partners reimagine these properties as places where families can live, friends can gather and Ohio’s next generation of entrepreneurs can invest in their futures.”
Mansfield Mayor Jodie Perry on Thursday said the state tax credits are important to both projects.
“It’s a huge impact and I think it really sends a message from the state that they support revitalization in downtown and they believe in these projects,” Perry said.
She said the tax credits are “crucial” to moving projects such as these forward.
“When you are dealing with historic buildings, everything tends to cost more. These tax incentives help bring these to life. I am thrilled,” the mayor said.
Jennifer Kime, CEO of Downtown Mansfield Inc., also hailed the announcement.
“We are thrilled to have two TMUD awards in downtown Mansfield and another Historic Tax Credit project,” she said.
“It really shows the broad-based support for downtown development,” Kime said.
Downtown Forward project now ready to move ahead
According to the ODOD announcement, the 147 N. Diamond St. project will create “mixed-use development with retail, office and residential space.”
“The adaptive reuse project will restore a long-vacant historic building while preserving an important part of Mansfield’s industrial heritage. The redevelopment will bring new activity to downtown and support the city’s ongoing revitalization efforts,” the announcement said.
The building definitely has history, according to RichlandCountyHistory.com.
“There were three major cigar manufacturers in Mansfield in the early 20th century: one of them was The Hautzenroeder Company. Founded in 1870, they lasted longer than any other of the city’s cigar works, and occupied a greater variety of sites all around the Flats. The place they stayed the longest was on N. Diamond just south of Fifth Street, where there were 247 skilled rollers turning out LaRonas and Recruits until 1929. Hautzenroeder also had a plant in Galion to receive, strip and prepare tobacco on the way to Mansfield,” according to the website.
The Downtown Forward project will use 14 buildings around the Brickyard downtown that Mansfield residents John and Mimi Fernyak are donating through Engwiller Properties to the Richland County Foundation. It’s one of the single largest and most public gifts in the history of the 81-year-old philanthropic organization.
Richland County Foundation will partner on the project with Windsor Companies, a vertically integrated real estate development firm in Powell, Ohio, in Delaware County.
Windsor Development specializes in historic redevelopment and community-centered downtown revitalization.
On June 24, the project got a $5 million boost when ODOD announced the overall local effort will receive the requested funds in the form of a Ohio Historic Preservation Tax Credit.
The phased project will restore historic buildings, introduce new housing and activate commercial spaces in the heart of the city. The historic tax credits were awarded to maintain the integrity of the historical structures of the buildings.
Maura Teynor, the chief advancement officer for the RCF, said Thursday the TMUD is the last piece of financial news needed for the project to begin by the end of September.
“This is what we have been waiting for,” she said, “in addition to the previously announced historic tax credits. We are very excited to receive the TMUD.”
Downtown Forward will restore historic buildings, activate underutilized upper floors and bring new residents to the city center, supporting existing businesses and increasing daily activity and foot traffic, essential components of long-term economic vibrancy, according to Allie Watson, president and CEO of the Richland County Foundation.
New boutique hotel downtown moving closer to fruition
Goyal said the half-million tax credit through the TMUD will be “an enormous amount of help” as he and his business partner, Snehal Patel, move forward with their plans to revitalize the former Holiday Inn at 116 Park Ave. West.
“It’s something we built into our capital stack and we very excited we were able to receive the grant,” Goyal said Thursday.
According to the ODOD grant announcement, “The Hearth and Forge Hotel project will redevelop a long-underutilized property into a full-service boutique hotel and community gathering space, helping fill a need for high-quality lodging in downtown Mansfield. Located in the heart of the city, the historic hotel will support tourism, business travel, and community events while connecting visitors to nearby businesses and attractions.”
Goyal said the TMUD provides tax credits “based on you completing your project in a satisfactory manner.” He said the application for the grant was filed in April.
He said the purchase of the hotel, built in 1984, is nearly complete and should be done by the end of the summer.
“There are just a couple of outstanding issues we are working through,” Goyal said.
Goyal, a Mansfield business owner and engineer, is leading a group of local investors who plan to bring the former downtown hotel back to life, sparked by a plan that will pump around $10 million into the facility.
On Thursday, he thanked Mihalik, state Sen. Mark Romanchuk and state Rep. Marilyn John for their assistance with the TMUD effort, which he said included an in-person visit to the site by Mihalik.
In April, City Council unanimously gave its stamp of approval to the project on Tuesday evening by passing legislation that grants the proposal a 12-year, 75-percent property tax abatement.
Goyal told lawmakers at the time renovations could begin in August or September with a grand opening in May or June of 2027.
The project is backed by a 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.
