Discussion continuing on whether $1.3 billion Hollywoodland project will break ground, benefit Middletown

The proposed $1.3 billion entertainment and destination district that would encompass more than 50 acres in downtown Middletown and along the Great Miami River either is a “once-in-a-lifetime” opportunity or an economic development project doomed to fail in the city.

It depends on who’s talking.

Ever since the city and out-of-state developers released information about Hollywoodland at a council meeting two weeks ago, there has been much discussion and debate throughout the region, and the project has drawn national media attention.

Hollywoodland would be located on nearly 12 acres of city-owned land off Water Street and First Avenue and on 41 acres currently owned by Forest Hills Country Club.

On Oct. 5, City Council heard the first reading of legislation that would authorize City Manager Jim Palenick to enter into an agreement with Main Street Community Capital LLC for the development of a riverfront destination entertainment district and theme park estimated to attract 3.5 million visitors annually to the city.

City Council will hold a special meeting at 5:30 p.m. Thursday in Council Chambers to further discuss the project and vote on the second reading. If the legislation is considered an emergency, it would have to pass by at least a 4-1 margin. If it’s changed to a non-emergency, it would have to pass at least 3-2.

Mayor Nicole Condrey has said she’s against the project, and council members Tal Moon, Monica Nenni and Ami Vitori have said they support Hollywoodland. Vice Mayor Joe Mulligan, whose family lives on South Main District in the Historic District near where the project is expected to be built, announced he will recuse himself from voting on the project.

I’m recusing myself from voting on the Hollywoodland development project before council, and I want you to hear from me...

Posted by Joe Mulligan for City Council on Saturday, October 16, 2021

Regardless of how council members vote Thursday, Condrey believes Middletown residents will file a petition against the project to put it in front of voters.

The city is selling 12 acres along the river to the developer for $1. The city has the 40 acres at Forest Hills under options, and that land would be transferred to the developer.

Much of the discussion about the project has focused on whether such a large-scale development can succeed in downtown Middletown miles off the interstate and the history of the developer, Main Street Community Capital, formerly Opportunity Zone Hotels & Resorts.

Palenick said the city would utilize $7.5 million in American Rescue Plan Act Funds and would combine that with financial support from the state.

City Council approved spending $250,000 in March on a redevelopment study to determine if a large-scale, hospitality and destination entertainment-focused project could be “economically viable and sustainable,” the city said.

The city expects to spend $700,000 to $800,000 more in legal, engineering, lobbying, and professional consulting services and activities in support of the public improvements, according to the staff report.

As part of the proposed agreement with the city, Main Street Community Capital is required to commit $200 million in equity in the private portion of the development. David Elias-Rachie, one of the three principles of Main Street Community Capital, has said the partners haven’t started raising funds because they don’t know the maximum cost of the project from the contractor.

He said all the partners have been involved in more than $1 billion worth of projects at various firms.

Main Street Community Capital is partnering with DLR Group as its architect. Gilbane would build Hollywoodland with Greenfire Management Services. The Producers, which specializes in production and design services, is part of the team.

Main Street Community Capital plans to secure $1.1 billion in bond financing, Elias-Rachie said.

Palenick has said the city plans to provide a 30-year, 100% property tax exemption and create a community authority. He said no local tax dollars will fund Hollywoodland.

He said the city has a “limited risk” for the potential of “an incredible reward.”

Condrey said that if the plan is approved, $2 million would be released to Main Street two weeks later, followed by $2 million after eight weeks, $2 million after 24 weeks and the last $1.5 million before construction begins.

She believes the developers should front the money and be reimbursed once the project is underway. She said Elias-Rachie has said he has spoken to five of the top pension funds about financing the project.

“That’s a bold statement,” said Condrey, who added Elias-Rachie couldn’t name the funds. “Facts are not adding up. I don’t see it starting.”

The Hollywoodland concept is the first for Main Street, which plans to build several similar projects, Elias-Rachie said. The company’s portfolio includes the development of the Mason City Hyatt Place in Mason City, Iowa; the Marriott Racine Harbour and Convention Center in Racine, Wisc.; and Novelty Iron Works in the company’s hometown of Dubuque, Iowa.

Middletown native John Langhorne, who opened the Swire Inn three years ago, said he has an option to sell his restaurant on South Main to the developers. He has been told it will remain the Swire Inn and an Ohio State-themed bar/restaurant will be connected to his restaurant and share the kitchen.

He said no project “is perfect,” but this provides “low risk” to the city.

“This is our one chance,” he said. “If not now, when?”

Palenick said the city needs to take “a bold step” and say yes to the project.

The developers, financial consultants, outside legal consultants and Middletown city staff are “the absolute dream team,” according to Palenick. “These are the best. I’m very comfortable it will work.”

If the concept doesn’t happen in Middletown, Palenick said the developers will take the project elsewhere in the state. He “guaranteed in an instant” another Ohio city would welcome the project.

The Sorg Opera House, located across the street from the proposed entrance to Hollywoodland, responded on its Facebook page after Palenick said the restored music venue wasn’t interested in participating in the project.

“We have never been asked to be a part of the effort,” the letter written by the Sorg board read. “We have never been part of any communication or negotiation as such.”

The letter said the historic Sorg is not for sale and the goal is to fully renovate the theater and commercial building and to serve as an “economic driver” for the downtown.

“The Sorg Opera Revitalization Group remains neutral despite Hollywoodland’s proposal to include a competing theater,” the letter read. “We wish the city nothing but the best with all its future endeavors.”

Doug Bean, former director of the Middletown library, sent an email to City Council members expressing several concerns, including the $250,000 feasibility study being “not widely disseminated,” the City of Middletown entering into an agreement with a company that admits it has not begun to raise $200 million and putting the Forest Hills Country Club in the hands of this company, which he said is is “terribly unfair” to the Historical District.

“I respectfully urge you to vote against this project,” he wrote to council members.

Credit: Nick Graham

Credit: Nick Graham

Credit: Nick Graham

Credit: Nick Graham


The Hollywoodland development is expected to include:

  • A destination Marriott hotel and attached, publicly owned convention center with roof-top bar, themed restaurant and assorted amenities.
  • A second, family-oriented hotel and water park.
  • A third, historic, boutique hotel located within the adaptively-redeveloped First National Bank building.
  • A major, indoor entertainment and concert venue for large, nationally and internationally acclaimed artists and touring Broadway productions.
  • An indoor amusement park containing multiple, themed entertainment-based rides, virtual reality experiences, immersive entertainment opportunities and integrated retail, food and beverage.
  • Structured and integrated underground deck-based publicly-owned parking with more than 3,000 spaces.
  • On-site, mid-rise, luxury, market-rate apartment units and/or condominiums.
  • Permanent, pre- and post-production motion picture studio sound stages and support offices and infrastructure.
  • Multiple, restaurants, bars, brewpubs, and cafes, and a likely comedy club.
  • Integrated fashion, electronic, lifestyle, convenience, and recreational retail.

SOURCE City of Middletown

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