Placement on the National Register would qualify the 23-story building at 40 W. Fourth St. for tax credits, which its ownership says are needed to help finance a proposed $35 million to $40 million renovation project.
Local officials said the building has a rich history that practically guarantees its acceptance for the register.
The challenge was convincing the preservation advisory board to support the tower’s nomination even though the building is not old enough to meet the standard criteria for the list.
The building’s ownership and local officials said the Grant Deneau renovation project could be an economic jolt that starts a wave of redevelopment downtown.
“This is big — Dayton is going to change because of this project,” said Aaron Smiles, managing director of commercial leasing for The Matrix Group, which owns the building.
The Ohio Historic Site Preservation Advisory Board on Friday reviewed the nomination of the Grant Deneau Tower for the National Register.
The board unanimously recommended approval of the nomination, which now heads to the State Historic Preservation Officer. The National Park Service will make the final decision in the case, which is expected in about three weeks.
Amy Walbridge, the city of Dayton’s special projects administrator, said the service typically follows state recommendations.
Local officials said without question the Grant Deneau Tower has sufficient historical significance to be added to the National Register. But whether it was eligible now was the big question.
In general, properties must be at least 50 years old to qualify for the historic listing. Buildings younger than that must have “exceptional importance” to meet eligibility criteria.
The Grant Deneau is historically important because of the role it played in developing downtown Dayton, said Tony Kroeger, a planner with the city.
The office tower was the tallest building in Dayton when it was constructed in 1968, and it was the first building taller than 15 stories built downtown since 1931, said Kroeger, who helped put together the nomination application.
The building was a key part of the development strategy downtown to offer high-quality modern office space to compete with newly constructed malls and shopping centers in suburbia, Kroeger said.
“Obviously, this effort is still very relevant today, and the Grant Deneau Tower was the pioneering building in the strategy,” he said.
The tower typifies the prevailing architectural styles of the time, which is usually called new formalism and is highlighted by the dramatic arches at the top, he said. Architect Paul Deneau designed the tower and built it with his business partner Richard Grant.
The advisory board’s decision could be a turning point for the mostly vacant Grant Deneau Tower.
New York-based real estate investment and management company Matrix proposes spending as much as $40 million on renovations to offer attractive office space on the lower five floors and market-rate housing on the upper floors. The plan is to offer a restaurant with outdoor seating on the first floor, as well as a retail component.
But the adaptive-reuse project hinges on acquiring state and federal historic tax credits.
The tax credits give developers much-needed access to capital that reduces the amount of debt they need to take on to complete a project. In most cases, developers who are awarded tax credits sell them to investors for 92 to 95 cents on the dollar.
Assuming the 23-story building is approved for the register, developers will have to apply for the state and federal tax credits. The state credits are competitive, the federal incentives are not.
Smiles said downtown Dayton is a challenging environment to lease office space. But, he said, the historic tax incentives will greatly reduce the costs of renovating the Grant Deneau to create high-quality space attractive to employers and apartment-seekers.
“Cleveand’s booming because of tax credits,” he said.
The tower today is more than 90 percent vacant. It was more than 90 percent occupied until 2012, when Premier Health relocated its headquarters from the building to 110 N. Main St.
Deneau’s daughter, Lisa Deneau, said her father wanted to design buildings that had a lasting impact on the community, and the Grant Deneau Tower was built as a commitment to the revitalization of Dayton.
“It was kind of an emblem of modernist architecture and commitment to growth in the city,” she said.
Deneau designed hotels, medical offices, commercial properties and multi-family housing units.
Deneau was a visionary, and the building’s current ownership envision downtown revitalization spurred on by the transformation of one its most recognizable buildings.
Staff Writer Steve Bennish contributed to this report.
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