Kevin Flanigan began buying real estate in downtown Elyria in 2015, with the vision of transforming a central business district that was badly in need of a boost.

But in early 2021, the Lorain County businessman nearly walked away.

It was then that a fire ravaged an old nightclub complex on Broad Street, just north of the city’s central plaza. This 122-year-old building, known as Uncle Vic’s, was the centerpiece of Flanigan’s plans to turn historic properties into apartments, offices, and an alley lined with shops.

Between fire damage and demolition costs, he lost over a million dollars and was forced to redesign his entire project. He considered giving up. Then doubled instead.

“It’s a bit of Elyria’s story: going through tough times and not letting it define us, but drawing strength from it,” said Frank Whitfield, mayor of this town of just over 52,600. inhabitants.

Flanigan, who controls much of three blocks on Broad Street, cooks up a $ 35 million deal. Two historic buildings will house an esports venue, with offices, podcasting and broadcast spaces upstairs. In a vacant corner to the east on Broad and Washington Avenue, site plans call for a 51-unit apartment building – a rare construction project.

Elyria, the county seat of Lorain, has been talking about downtown revival for decades.

Now, public officials and Flanigan hope the state’s new programs will help them achieve major development, which could serve as a framework for other investors.

“Elyria needed something. And Elyria has a lot of potential,” said Flanigan, a 70-year-old Grafton resident who specializes in manufacturing, technology, film production and real estate.

“If it all can come together, it will create an attractive and positive environment,” he added. “And I think the most important thing to emphasize is that it will provide a safe environment for people to go downstairs now – and not have to travel to go to restaurants or to entertainment.”

Public records show that Elyria Block Development LLC, a company owned by Flanigan and his wife, Gail, is seeking $ 3.4 million in competitive tax credits under a new program for so-called transformational projects for mixed use. Officials expect to announce $ 100 million in awards early this year. A fifth of this pool is reserved for sites outside major cities.

Flanigan is also seeking up to $ 2 million from JobsOhio, through a grant program designed to stimulate development in small and medium communities with high poverty rates. JobsOhio, the state’s private economic development company, launched the program in 2020.

“These are literally the key,” Flanigan said of tax credits and grants to close the gap between development costs and rents in places like Elyria. “Without this, we will not be able to move forward.

Stephanie Mercado, economic development consultant on the project, said Flanigan plans to work with Lorain County to seek funds from the state for the cleanup and demolition of the site. The Ohio Department of Development recently began accepting applications for a pair of new programs to revitalize contaminated properties and clean up dilapidated structures.

Today, just south of a waterfall overlooking the Black River, the historic Dixon and Robinson buildings are quiet. The only tenants are a cell phone store and a store that sells smoking accessories.

Flanigan uses historic federal tax credits to restore and amalgamate buildings. He plans to claim state preservation tax credits this year to help fund some of the work.

The esports facility and a restaurant will fill the first floor of the complex, called Forge 417. The competitive video game site will feature an arena with over 200 seats for tournaments, smaller game centers for daily use, and games. virtual reality cabins.

If the funding comes together, the facility could open in mid-2023. The new apartments could be completed in 2024.

The growing esports industry is attracting the attention of universities, big brands and Wall Street. Lorain County Community College launched a varsity esports team last year, and at least a dozen high schools in Northeast Ohio have their own play programs.

In July, Cedar Fair Entertainment Co. announced that it was exploring the potential of developing an esports stadium at its Cedar Point sports center in Sandusky. The hall could accommodate up to 1,500 spectators. An esports center is also in the works as part of the sprawling Hall of Fame Village development in Canton.

“One thing that Elyria’s offer is going to make very unique, I think, is the historic reconstruction of the block,” said Scott Norcross, a Cleveland lawyer specializing in esports deals. “Tying the historic renovation to a modern technology project will set it apart. “

Norcross, partner of KJK law firm, is a consultant on the project. He and his colleague Paige Rabatin also own Clesports Development LLC, which will lease and operate the Elyria site.

Designed by Cleveland-based OSports, the space will draw on a mix of games and other programs, such as comedy shows, educational events, and workforce development programs. The second and third floors of the historic block will likely house a mix of traditional office and co-working spaces, Flanigan said.

Floor plans also include an approximately 3,200 square foot studio for audio and video production.

Public records show Flanigan owns more than half a dozen additional properties on Broad Street, where he and several partners have opened the Foundry kitchen and bar gastropub in 2016. Since then, the downtown area has been designated a tax-advantaged opportunity area, thanks to a federal program designed to attract private investors to low-income communities.

Flanigan, who bought a former McDonald’s restaurant west of the foundry in September, said he was not looking to acquire more real estate or undertake other projects. Uncle Vic’s site, where a pile of rubble rests, will become a parking lot.

“It’s been a long process to put it all together,” he said. “And there is still a lot of work to be done, to say the least.”

In meetings and surveys last year into how Elyria is expected to spend the nearly $ 18.8 million US federal bailout law, residents highlighted the downtown area – and the mall Struggling Midway, which diverted stores from the heart of the city half a century ago – as top recovery priorities, Whitfield said.

the Elyria community partnership, a downtown-focused non-profit development company, launched last year. The city has put in place grants for homeowners who wish to rehabilitate historic buildings, and officials say there is a little-used program to help pay for facade improvements.

Whitfield, a 34-year-old mayor who took office in early 2020, just before the onset of the coronavirus pandemic, said the only direction Elyria can go is upward.

“Other people are trying to restructure and rebuild what they already had,” he said. “We were already in a place that was sort of zero point.”