CINCINNATI – Cincinnati Museum Center (CMC), Union Terminal LLC (UT) and Union Terminal Corporation (UTC) have secured historic tax credit investment and bridge financing from PNC Bank, Bank of America Merrill Lynch and Fifth Third Bank that will help fund the restoration of Union Terminal. The historic tax credits are a significant source of funding for the project.
PNC is providing $56.5 million in financing to bridge sales tax proceeds, philanthropic pledges and a State of Ohio capital grant. Bank of America Merrill Lynch has made a $40.3 million equity investment in the project in connection with federal historic tax credits. Fifth Third is lending $28.5 million to provide bridge financing for the historic tax credit investment.
“The community preservation of Union Terminal brings together public and private partners who recognize the rich history this grand building brought to our city’s past, while also appreciating the economic value its restoration brings to Cincinnati’s future,” said Kay Geiger, regional president of PNC Bank, Greater Cincinnati and Northern Kentucky. “The renewed landmark will offer educational, cultural and economic development benefits to our community for generations to come.”
“Bank of America Merrill Lynch is pleased to invest approximately $40 million in historic tax credit equity to help preserve and restore the iconic Union Terminal to house Cincinnati Museum Center,” said John Panno, senior vice president of community development banking at Bank of America Merrill Lynch. “Participating in such an important project demonstrates the Bank’s commitment to creating safe and strong communities by promoting economic development and supporting the local arts community.”
“We are proud to be a part of the revitalization of this important part of Cincinnati’s history,” said Tim Elsbrock, regional president of Fifth Third Bank, Greater Cincinnati. “The renovation of Union Terminal not only celebrates our city’s culture and our past, but it lights a spark of possibility for our future.”
In addition to historic tax credits, the restoration of Union Terminal is funded by a Hamilton County sales tax, a $5 million capital grant from the State of Ohio and $7.5 million in private philanthropy, which has already been raised for the project. The five year, one-quarter of one percent Hamilton County sales tax was approved by 62% of Hamilton County voters in November 2014 and is expected to yield $175.7 million to the project.
“What we’re seeing with the restoration of Union Terminal is more than just securing the future of a National Historic Landmark and the home of an award-winning multi-museum complex,” says Wick Ach, president and treasurer of Union Terminal Corporation. “This is the collaboration of funders, local government and businesses making an investment in our community to enrich our families, friends, neighbors and visitors.”
Originally built in 1933, Union Terminal has suffered over eight decades of water damage. Following the review of the Cultural Facilities Task Force in 2014 and an additional year of planning and analysis, construction and historic preservation crews began work in earnest in July 2016. Experienced workers are in the process of meticulously repairing damaged masonry and historic glass and metalwork on the building exterior. Outdated mechanical, electrical and plumbing systems will also be updated, making the building more efficient to operate. Inside, historic spaces are being rehabilitated and architecture and artwork are in the process of being restored.
“Union Terminal is a National Historic Landmark, architectural icon and a cultural leader of our city,” says Elizabeth Pierce, president and CEO of Cincinnati Museum Center. “We’re so thankful for the investment of PNC, Bank of America Merrill Lynch and Fifth Third and that they are committed to securing Union Terminal’s long-term future.”
About Cincinnati Museum Center
Cincinnati Museum Center (CMC) at Union Terminal is a nationally recognized institution and national historic landmark. Dedicated to sparking community dialogue, insight and inspiration, CMC was awarded the 2009 National Medal for Museum and Library Service from the Institute of Museum and Library Services and received accreditation from the American Alliance of Museums in 2012. CMC is one of a select few museums in the nation with both of these honors, making it a unique asset and a vital community resource. Union Terminal has been voted the nation’s 45th most important building by the American Institute of Architects. Organizations within CMC include the Cincinnati History Museum, Duke Energy Children’s Museum, Museum of Natural History & Science, Robert D. Lindner Family OMNIMAX® Theater and Cincinnati History Library & Archives. Recognized by Forbes Traveler Magazine as the 17th most visited museum in the country, CMC welcomes more than one million visitors annually. For more information, visit www.cincymuseum.org.
About PNC Bank
PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 46 million consumer and small business relationships with approximately 4,600 retail financial centers, approximately 15,900 ATMs, and award-winning online banking with approximately 34 million active accounts and nearly 22 million mobile active users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and a member SIPC, and, in other jurisdictions, locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. As of September 30, 2016, the Company had $143 billion in assets and operates 1,191 full-service Banking Centers, including 94 Bank Mart® locations, most open seven days a week, inside select grocery stores and 2,497 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third also has an 18.3% interest in Vantiv Holding, LLC. Fifth Third is among the largest money managers in the Midwest and, as of September 30, 2016, had $314 billion in assets under care, of which it managed $27 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Fifth Third Bank was established in 1858. Member FDIC, Equal Housing Lender.