The Gateway66 affordable housing development located on East 66th Street in Cleveland’s Hough neighborhood just got a $3 million boost from University Hospitals. This view is looking north on East 66th at Linwood Avenue. A corner of Historic League Park is visible at far right (PCI). CLICK IMAGES TO ENLARGE THEM.
Gateway66 to offer mixed-income apartments
Two big actions happened in the past week to support new affordable housing next to Historic League Park in Cleveland’s Hough neighborhood. One was a $3 million investment by University Hospitals in the proposed Gateway66 apartment complex. The other was a building permit application submitted to the city for that project.
However, Gateway66, costing $14.55 million according to the permit application filed Feb. 4, still has a long way to go in securing additional financing, including Low Income Housing Tax Credits (LIHTC) and a loan from the Ohio Housing Finance Agency (OHFA). The 80-unit housing development at 1521 E. 66th is proposed to rise on vacant land as a pair of four-story buildings on both sides of East 66th, just north of Linwood Ave.
In a neighboring block bounded by East 66th, Linwood, Lexington Avenue and East 70th Street stands Historic League Park. It is where major league baseball teams like the Cleveland Spiders, Cleveland Naps/Indians and Cleveland Buckeyes played from 1891 to 1950, plus the National Football League Cleveland Rams and college football games. Most of it was demolished in 1951 but surviving parts were renovated in the past decade.
As part of its Community Health Investment Strategy that prioritizes well-being, maternal and child health and economic opportunity, the University Hospitals (UH) Board of Directors approved a $3 million mission-related investment in Gateway66 last week. UH officials say stable housing creates thriving communities and is a key component of well-being.
Leading the project is Frontline Development Group, LLC, a minority- and female-owned real estate development firm. Partnering with Frontline is Woda Cooper Development Inc. of Columbus. The project will join other recent developments nearby including a new Hough Branch of the Cleveland Public Library, Fatima Family Center, Dave’s Market and Eatery, and Baseball Heritage Museum.
Site plans for the proposed Gateway66 development with Linwood Avenue along the bottom of the image and north at the top. The development will be on both sides of East 66th Street (PCI).
UH’s investment will be structured as a soft-debt mortgage providing a below-market interest rate and financed by UH’s endowment fund. It is expected that the principal will be paid back over a 15-year term, according to a press release posted on UH’s Web site.
“This commitment builds upon UH’s existing initiatives in the Midtown-Hough corridor, including the UH Rainbow Babies & Children’s Ahuja Center for Women & Children and the soon-to-open UH Diabetes Research and Wellness Center in the Midtown Collaboration Center,” explained Heidi L. Gartland, UH chief community and government affairs officer in a written statement.
She said this investment will complement earlier East Side investments by UH in a wellness center and teaching kitchen at The Davis housing complex in the Glenville neighborhood. And it follows the community resources provided at the UH Otis Moss Health Center in the Fairfax neighborhood.
“Together, these investments demonstrate a holistic, place-based strategy that fosters economic vitality, community health, and access to opportunity,” Gartland added. “With Gateway66, this work takes on even greater meaning, creating pathways for employees, residents, and community members to live, thrive, and actively participate in the area’s growth.”
Gateway66 will be a new, 82,237-square-foot, mixed-income development. Eight units will serve residents earning at or below 30 percent the Area Median Gross Income (AMGI); 16 units will serve residents earning at or below 50 percent AMGI; 32 units will serve residents earning at or below 60 percent AMGI; 20 units will serve residents earning at or below 80 percent AMGI; and four units will be market-rate.
An aerial view of the proposed Gateway66 development and its proximity to Historic League Park, much of which is visible at right (PCI).
“Hough is a neighborhood with a rich legacy of community pride and resilience,” said Sheila Wright, CEO of Frontline Development Group. “It has long been home to families and residents who have sustained its vibrancy despite cycles of disinvestment.”
Investment began returning after Councilwoman Fannie Lewis got League Park restored as a community park in 2014. In Gateway66 will be 56 single-bedroom units and 24 two-bedroom units. Amenities will include an on-site management office, a community room with kitchenette and more. The development will be accessible for a variety of populations including singles, young professionals, seniors, single-parent households and small families.
“The ongoing revival of Hough reflects a shared effort among community members, institutions, and partners like University Hospitals to create a future where everyone has access to opportunity,” she added. “We are deeply grateful to University Hospitals for their support, not only with this investment but with the additional strategic guidance they have provided.”
While no LIHTC and loan applications were posted yet for Gateway 66 at the OHFA Web site, a member of the development team said they would. Joseph DiCesare, development specialist at Woda Cooper Development Inc. notified Cleveland City Council in November about their intent to pursue the OHFA applications.
The development, publicly announced a year ago as Anchor 66, will be financed with Federal Housing Tax Credit proceeds, permanent first mortgage, first soft debt mortgage — University Hospitals of Cleveland, second soft debt mortgage city of Cleveland general funds, third soft debt mortgage, Community Development Financial Institutions funds and a deferred development fee.
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