Kroger Bakery project, others seek state brownfield remediation funds

(COLUMBUS BUSINESS FIRST)-- The team planning to redevelop the former Kroger Bakery near downtown Columbus is seeking a piece of the half a billion dollars Ohio has designated for brownfield remediation.

The state's operating budget, adopted in July 2021, includes $500 million to support brownfield remediation, building demolition and site renovation grants to revitalize neighborhoods and improve sites for future development. The program will distribute $1 million to each county in Ohio; the remaining funds will be competitive.

The funds, which will be managed by the state's Development Services Agency, come from federal Covid-19 relief money.

Columbus City Council recently passed resolutions of support for four projects within the city to get some of those funds, including the closely watched redevelopment of the Kroger Bakery project.

Brent Sobczak, president of Casto Communities, told Columbus Business First that getting the brownfield remediation funds would be vital for starting the $125 million project.

The proposed development would add to the historic buildings at 427 and 457 Cleveland Ave. and would include restaurant, retail, office and multifamily space.

The exterior of the two historic buildings, which are almost 100 years old, will not change. One was a Ford Motor Co. factory used to produce the Model T, while the building at 457 Cleveland Ave. was built in 1927 as the Kroger Bakery. Together they total 375,000 square feet.

The redevelopment plans include 49,000 square feet of office space, 8,850 square feet of restaurant space and 364 apartments.

Casto, Kelley Cos. and Robert Weiler Co. bought the property for $8.15 million from Cincinnati-based Kroger Co. after the grocer closed the bakery in 2019. Sobczak said there is demolition and abatement needed at the site. According to city documents, Casto has asked the state for about $5.5 million to help with the project.

The state already awarded the project $5 million in historic tax credits back in December.

Sobczak said the developers hope to start interior demolition work late this summer and start outside work in the fall.

The project still needs to get final approval from city council.

The state said it received a total of 204 applications across 59 counties. In total, those applications, which are now under review, requested about $262 million in brownfield remediation funds, according to the Department of Development.

A second round of applications will open on March 1 for counties that still have funds from their dedicated set-aside available. That round will conclude April 30, with a third round starting July 1 and concluding Sept. 30 or when funds have been depleted.

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