The Arcade is a Go; What Pending Downtown Development Could Be Next?

The Dayton Arcade redevelopment is now officially underway, and it’s been called a “catalytic” project for the downtown core with the potential to “spur further economic growth” in nearby areas.

So what could be the next domino to fall? This article will take a look at some of the other stalled, pending, or possible downtown development projects in the vicinity of the historic Arcade.

Several have struggled to move forward due to their challenging scope, and these large vacant properties have put areas of the Central Business District into a state of limbo. Just a few getting redeveloped would seriously tip the scales for the whole downtown, but an inability to secure financing and continued deterioration could lead to demolitions and the loss of any irreplaceable historic urban fabric would be a major blow for a city core that has already been gutted of so much.

Ongoing, Stalled or Potential Redevelopment Projects in Downtown Dayton

Hopefully now that the Arcade is happening, we’ll have the occasion to celebrate more big wins in the near future. But which ones are most likely? Let’s start with a few sites directly adjacent to the Arcade.

Dayton Grand/Doubletree Hotel

Directly across Ludlow Street from the Arcade is the former Dayton Grand Hotel, which lost over 80% of its business after reverting back to an independent hotel in 2013 following a stint as a Hilton Doubletree property. By 2016 it had completely closed, and repeated promises of a renovation were not fulfilled.

Its chances of reopening as a hotel likely aren’t great after the addition of the new Fairfield Inn and Suites to the downtown scene, as well as pending boutique hotel projects in the Barclay Building and the Fire Blocks.

But the historic building, which dates back to 1898 as the Algonquin Hotel, is in a great location so a conversion to apartments or condos could be an intriguing possibility.

It also has an attached parking garage and an indoor rooftop pool on an upper floor.

Read our full article on the Dayton Grand/Doubletree/Algonquin/Gibbons Hotel

Former Dayton Daily News Building Site

Next door to the hotel is a site that looks like it should be a slam dunk: one of the only completely vacant lots in the heart of downtown. But there are some serious complications. For one, there’s the historic Dayton Daily News building on the corner of Fourth and Ludlow, the only remnant of a horribly botched 2013 redevelopment that was set to turn the site, previously occupied by newer DDN structures and the Schwind Building (Google maps image), into 200 student apartments.

The debacle included the accidental demolition of a historic portion of the building; a stubborn deed restriction on part of the land that held up financing; ballooning costs incurred by the city to try and fix the mess; the developer being sued for non-payment by the demolition contractor; and ultimately a smoldering crater filled with debris that remained for the next three years.

Once the mess was finally cleaned up, three development proposals were submitted to the city of Dayton in 2017. These included student apartments, smaller living units with luxury amenities, office spaces, and retail, but significant funding gaps have prevented any project from moving forward.

DPS Offices/Former Reynolds and Reynolds Buildings

Staying on Ludlow Street but crossing Fourth, we arrive at a block of buildings which were once the downtown headquarters of Reynolds and Reynolds, who covered them up as part of a $3 million renovation in 1987 that took this

and left us with this

(That renovation also included the demolition of the historic Reid Hotel building at 129 W Fifth Street for a parking lot.)

More recently the site has been occupied by Dayton Public Schools offices, but they plan to shift their headquarters across the street to 124-136 Ludlow, although that move has been delayed.

DPS has cited major HVAC and water issues at the former Reynolds and Reynolds site and no concrete redevelopment proposals have yet been proposed.

But just imagine the possibilities if the right developer were to restore these hidden buildings to their original beauty.

We can’t bring back any of the countless similar structures that we bulldozed to the ground in years past, so this site represents a special opportunity to rediscover and save a few pieces of Dayton history.

Grant Deneau Tower

One of downtown’s tallest office towers, the empty Grant Deneau building at 40 W Fourth Street is not long vacant and derelict; on the contrary, it was 95% occupied by Premier Health as recently as 2012, when a game of downtown office tower musical chairs sent the firm over to 110 N Main Street.

A $40 million conversion to residential, office, and retail was proposed by New York-based Matrix Group, but that project stalled despite getting the Mid-Century Modern tower listed on the National Register of Historic Places, a rarity for a structure not even 50 years old.

In early 2019, Windsor Companies, also the lead developer of the Fire Blocks, purchased the Grant Deneau and is eyeing “creative” uses. A rehab of the parking garage, just across the street from the Arcade, is the first priority.

But given how recently the building was nearly fully occupied by Premier, one wonders whether a wholesale renovation of the building is necessary, or if some floors can still be marketed to office tenants which would bring in additional cash flow to help with future rehabs. Either way, with the Arcade right across the street, the momentum should be there for something in the near future.

Fidelity Building

Heading south down Ludlow and east on Fifth, the Fidelity Building at Fifth and Main (1918, expanded 1929) has been vacant since 2008 after a burst water pipe chased away the few remaining tenants.

It too has been slated for a mixed-use redevelopment, and in December 2018 it received $4.13 million in state historic tax credits.

The project, a $20.5 million rehab that would turn the longtime medical office building into 94 apartments with ground floor retail, has not yet moved forward but this site is also well situated close to both the Arcade and the Levitt Pavilion outdoor music venue which has proven popular since opening in 2018.

Centre City Building

Across Main Street from the Lindsey, McCrory, and Kuhns Buildings, which will all be part of the Arcade Innovation Hub, sits one of downtown’s greatest historic structures. The Centre City Building was originally the home of the United Brethren Publishing House and later became a hub for retail, but it has been vacant for years.

The sheer size and poor condition of the structure makes redevelopment a challenge but there have been multiple efforts in recent years, as well as a revolving door of ownership. As of 2017, a $46 million project aimed to turn it into 164 apartments while utilizing a variety of historic tax credits as well as the federal EB-5 program which assists with green cards for foreign investors who fund job-creating business ventures in the U.S.

In January 2019, as a deadline loomed for the developers to show sufficient progress or risk losing $5 million in historic tax credits they had been awarded, a partner assured the Dayton Daily News that “we have it worked out.”

But just a couple of days later, it was confirmed that the state had indeed rescinded the tax credits.

Directly across Fourth Street from the Centre City is the new Levitt Pavilion, so perhaps the Arcade is the final piece that finally makes this site attractive enough for the investment it needs to truly move forward.

Read our full article on the history of the Centre City Building

34 North Main / Paru Tower

Continuing north on Main Street we find another historic landmark awaiting new life. The 14-story building at 34 North Main was constructed in 1926 and was the longtime home of the Third National Bank & Trust Co. Later it became the KeyBank Building before that company moved across the street to the former Mead Tower.

In 2010, a self-proclaimed Hindu guru and mystic promised a major redevelopment, but unpaid taxes quickly piled up and the building was completely shuttered by 2012. The owner was later sentenced to 27 years in prison for tax fraud in the state of Georgia.

The building went into receivership and was later purchased by the city of Dayton, which in turn issued a request for qualifications from developers similar to the former Dayton Daily News site.

The developer picked was Coon Restoration of Louisville, who envision a mix of residential, office, and retail uses, but no progress has been made after their proposal was selected in mid 2017. In addition to the momentum of the Arcade, another potential boost to this project would be the construction of a new parking garage at Third and Jefferson by Stratacache, since parking was identified as an issue for the site.

Map of These Possible Future Downtown Redevelopments

Which do you think are the most realistic pending or potential downtown projects? Do you have any additional information about any of these redevelopments?

If so, let us know in the comments below.