Cleveland – November 21, 2023 — Cleveland Development Advisors closed on financing for CentroVilla25, providing $10.5 million of federal new markets tax credits (NMTC) allocation, $1 million of state NMTCs, and $612,891 capital campaign bridge loan. This project serves as a pivotal anchor in the broader La Villa Hispana mission, seeking to redefine Cleveland’s Clark-Fulton neighborhood into an inclusive and vibrant Latino cultural district. Notably, this neighborhood houses Ohio’s largest Hispanic population.
NMTCs, recognized as a potent tool for community development, offers tax incentives to investors supporting projects in low-income communities. CDA was previously awarded the allocations by The Ohio Department of Development and the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of Treasury.
CDA previously provided a $500,000 acquisition loan to the Hispanic Business Center to acquire the vacant 32,500 square foot warehouse in March 2019, along with an additional $470,000 predevelopment loan. CentroVilla25 is an adaptive reuse of the vacant warehouse into a mixed-use space featuring 20 micro-retail areas, a commercial kitchen, offices for local organizations, a specialty grocery store, an inviting outdoor plaza, and dedicated spaces for arts and cultural events.
Led by the Hispanic Business Center, CentroVilla25 envisions the project as a driver of substantial economic impact, fostering job creation, supporting business development, and nurturing a flourishing local economy. Moreover, it aims to cultivate a distinctive atmosphere that honors and celebrates the rich Latino heritage woven into the fabric of this community.
Yvette Ittu, President & CEO of Cleveland Development Advisors, expressed deep enthusiasm for supporting this transformative endeavor, emphasizing its pivotal role in helping to grow entrepreneurs. Additionally, the planned galleria and plaza are envisioned to serve as focal points for community engagement, showcasing local arts, culture, and businesses. “We are so gratified to support this project,” she said. “CentroVilla25 embodies the type of catalytic projects we look to support because they have a cascading impact on the adjacent community – in this case along West 25th and throughout Clark-Fulton.”
Jenice Contreras, president and CEO of the Hispanic Business Center, underscored the critical role of the CDA funding in bridging a substantial financing gap that could have impeded the project’s progress. “The project has received generous support from public and civic and individual sources over the past several years, but a significant gap remains. This funding was pivotal in ensuring the project’s viability, preventing higher costs and further funding shortfalls.
With CDA’s support, Centro Villa 25 is poised to become a transformative force in revitalizing Cleveland’s Clark-Fulton neighborhood, fostering economic opportunity, and celebrating the rich cultural heritage of the Latino community.