The Metropole is located at 609 Walnut Street in downtown Cincinnati’s Backstage entertainment district. Constructed as a luxury hotel in 1912, the ten-story, 200,000 square feet structure (3) included an elegant hotel lobby, a formal dining room, a grand ballroom, a semi-circular staircase that extended from the basement to the second floor, and ornate plaster ceilings. In 1924, the hotel constructed a mezzanine between the first and second floors, and added an 11th floor for a penthouse apartment.(7)
In 1971,(1) the Metropole underwent a $3.55 million remodeling, funded in part through Federal Housing Administration loans, to convert the hotel into a low- and moderate-income residential mid-rise.(7)
The majority of the 230-unit complex are 312 square feet with shared bathrooms.(1)(2) Showe Management Corporation of Columbus, Ohio, the owner of the complex, contracts with the U.S. Department of Housing and Urban Development annually to offer subsidized rents for the residents.(2)
In April 1999, Showe hired Vice President John Thompson with Everest Real Estate Group Inc. of Evendale to find a tenant for the former restaurant space, which included 50 feet of street-level frontage, 8,000 square feet and 12 foot ceilings.(3) An additional 4,000 square feet was available downstairs. The restaurant was being pitched at $12 per square foot, and was located at one of the busiest pedestrian corners in the city.
The Metropole has become a focal point for continued police enforcement. In 2006, the building was the target of a two-month investigation by Cincinnati police that led to the arrest of numerous individuals for drug and weapon charges.
In June, the Metropole was listed on the National Register of Historic Places as a result of cooperation between Showe and Cincinnati Center City Development Corp. (3CDC).
As of September 2009, only 208 units were occupied.(2)
Redevelopment
3CDC began discussions with Showe in 2004 to acquire the property for redevelopment.(1) Showe was listed as part owner of the Metropole,(2) although other reports indicate that Showe was the sole owner.(3) It was appraised at $3.7 million by Hamilton County’s property auditor.
Showe had been in discussions with other possible buyers for the property, and was looking to exit the subsidized-rental business at the Metropole.(2)
In April 2008, the 21c Museum Hotel began discussions with 3CDC in locating a boutique hotel in downtown Cincinnati.(6)
In September 2009, Showe notified HUD that they planned to sell the 97-year-old property. Cincinnati Councilman Chris Bortz, chairman of council’s Economic Development Committee, stated that he had conversations with 3CDC about the potential reuse of the Metropole into a boutique hotel.(2)
The Cincinnati Business Courier reported that the 21c Museum Hotel was a lead candidate in the Metropole.(5)
The Metropole resides within the burgeoning Backstage enterainment district, home to the Arnoff Center for Arts and the Contemporary Arts Center.(2) Nearby developments have benefited from millions of dollars in investments from 3CDC. 3CDC was the company responsible for the $45 million renovation of Fountain Square, and was instrumental in redeveloping vacant parcels along Walnut Street.
“Nothing official has come before the city, but I know there is interest in pursuing an acquisition of that location. 3CDC has been in those conversations, and obviously as a private non-profit that’s interested in advancing the city, it’s a good group to be looking at something like that.”
-Chris Bortz, chairman of council’s Economic Development Committee (2)
Even with a new owner, no major changes would take place at the Metropole until 2011.(2) The property’s contract with HUD is up for renewal in February 2010, and 3CDC would have to give at least nine months notice if they choose to opt out of the housing subsidy.
On November 3, 3CDC purchased the Metropole for $6.25 million.(1)
Some of the building’s residents have already sought legal advice in an attempt to stop the pending conversion of the complex into a hotel.(1) In reply, 3CDC stated that it was giving tenants time and assistance to relocate to more modern units. In addition, 3CDC plans to pay for all relocation costs, and at the minimum, tenants will have one year to seek a new residence.
Roma Trattoria, an Italian restaurant on the first floor, and the Subway Lounge, a bar located in the basement, will be relocated.(6)
“This is not going to be without its challenges. We realize there will still be residents who are nervous about this, but I am confident that we are going to be able to give them the dignity and discretion they deserve as we work to relocate them.”
-Stephen Leeper, president and CEO of 3CDC (2)
That has not curbed the criticisms of the renovation plan. Some of the residents have complained that they were not informed of the negotiations between 3CDC and Showe. Roughly forty members of the tenants association have requested assistance from the Legal Aid Society of Southwest Ohio.(1)
“No one has asked the tenants what they want, and the tenants association truly believes they should have the right to stay in downtown Cincinnati. My clients believe they’ve been discriminated against as well because they are primarily elderly, disabled and African-American,” she said. “They are being kicked out because of who they are.”
-Rickell Howard, lawyer from the Legal Aid Society of Southwest Ohio (1)
In defense, Leeper stated that 3CDC could not disclose details to any of the residents until the non-profit owned the building due to legalities.(1) Walnut Hills based Brickstone Property Management will oversee the relocation. Brickstone is a division of Model Group, which has partnered with 3CDC in redevelopments in Over-the-Rhine, and has overseen 2,000 relocations in the Cincinnati metropolitan area.
Leeper has stated that the residents will receive the opportunity to move into larger, updated and safer units.(1) In addition, fifteen residents currently employed in the building will keep their jobs under the management. Residents will be able to move to a property owned or managed by the Model Group, or receive a Section-8 voucher that can be used within Hamilton County. A majority of the Model Group properties are in Over-the-Rhine’s Gateway Quarter and in East Walnut Hills.
Model Group also plans on transferring the Metropole’s Section-8 Housing Assistance Payment (HAP) contract to other units that it owns.(1) HAP contracts proivide a housing subsidy specific to a building, unlike Section-8 vouchers, although the federal government has historically not allowed the transfer of HAP contracts in most instances. But through an earmark passed by Congress as part of the Housing and Economic Recovery Act of 2008 granted the Model Group the right to divide and transfer the contracts.
“This is really going to be our saving grace as far as our ability to do this as well as possible to help further eliminate anybody that may fall through the cracks, so to speak,” Leeper said. “People will have opinions about how we intend to live up to what we think is our obligation to help these residents relocate. The proof will be in our actions, and I think our actions will speak for themselves.”
-Stephen Leeper, president and CEO of 3CDC (2)
On November 4, Laura Lee Brown and Steve Wilson, who owns the renowned 21c Museum Hotel in downtown Louisville, announced that they will open another 21c hotel at the Metropole.(4)(6) Renovation plans include an 8,000 square foot contemporary art museum, a 160-room boutique hotel and a Proof restaurant and bar. New York City-based Deborah Berke & Partners Architects LLP, who designed the Louisville 21c location, will head up the design for the Metropole. Alan Weiskopf of Pittsburgh-based Perfido Weiskopf Wagstaff + Goettle will serve as executive architect.
The renovation, which is expected to cost $48 million,(6) is scheduled to begin in fall 2010.(4) Preliminary renderings feature a new exterior facade on the first two floors.(7) On the inside, the first two floors will showcase the art gallery, conference space and Proof. The remainder will be used for hotel rooms.
It is expected that 540 construction jobs will be created, and 160 employees will work at the hotel.(7)
Financing
Approximately 95 percent of the Metropole redevelopment will be privately financed by 3CDC and the 21c Museum Hotel.(6) 3CDC is requesting for a $2.5 million grant from the city of Cincinnati and $7 million in federal Historic Preservation Tax Credits.
Sources
- Bernard-Kuhn, Lisa. “213 Metropole tenants face relocation.” Cincinnati Enquirer 4 Nov. 2009. 4 Nov. 2009.
- Bernard-Kuhn, Lisa. “Metropole building may be future hotel.” Cincinnati Enquirer 24 Sept. 2009. 4 Nov. 2009.
- Hemmer, Andy. “Next Backstage chow station: Metropole?.” Business Courier of Cincinnati 16 April 1999. 5 Nov. 2009 Article.
- “21c hotel to open in Cincinnati.” Business First of Louisville 4 Nov. 2009. 5 Nov. 2009 Article.
- Karman III, John R. “21c, as in Cincinnati: Boutique hotel’s investment team considering Ohio city for concept.” Business First of Louisville 25 Sept. 2009. 5 Nov. 2009 Article.
- Bernard-Kuhn, Lisa. “Metropole to become world-class hotel.” Cincinnati Enquirer 4 Nov. 2009. 5 Nov. 2009.
- “The Metropole Hotel Building Fact Sheet.” 3CDC 3 Nov. 2009. 5 Nov. 2009 Fact Sheet.