TOLEDO, OH (WTOL) – City of Toledo leaders are regrouping after a major downtown redevelopment project was put on hold. The Berdan Building may soon have a new owner.
During a council committee hearing, scheduled to discuss the stalled plan to convert the former warehouse building into apartments, it came to light the current owner is defaulting on a loan. The building is scheduled to head to a sheriff's sale later this month.
Council members and city administrators discussed a $10 million federal loan which could not be guaranteed by the city because it would have tipped the city over the amount of HUD money allotted for slum and blight projects.
Some council members said they have had discussions with the Cleveland developer interested in participating in this $22 million project. However, since the ownership situation is unclear for now, the city will be back to square one. It still will be committed to redeveloping the old warehouse regardless of who is the owner.
"All sorts of things can happen. We could end up with a new owner of that property that has the ware with all to develop it and if that is the case, you can rest assured we will come forward to assist in any way possible," said Toledo Deputy Mayor Tom Crothers.
City leaders are also concerned about the conditions of the building's roof. Once the ownership situation becomes clear, they are committed to addressing emergency roof repairs to put the redevelopment effort back on track.
Read more on the Berdan Building:
Copyright 2012 WTOL. All rights reserved.
730 North Summit Street