The former Wheeling-Pittsburgh Steel headquarters on Market Street in downtown Wheeling is expected to be converted into the Historic Wheeling-Pitt Lofts. (Photo by Eric Ayres)

WHEELING – Officials in the city of Wheeling took a road trip this week to Northeast Ohio to get an in-person update on the status of the Historic Wheeling-Pitt Lofts project, Mayor Glenn Elliott said during Tuesday night’s city council meeting.

The mayor was accompanied by Vice Mayor Chad Thalman, Councilman Ben Seidler and City Manager Robert Herron on a Monday visit with developer Steve Coon of Coon Restoration & Sealants, which is headquartered outside of Canton in Louisville, Ohio.

City leaders indicated that the meeting helped reassure them that the private investment to transform the former Wheeling-Pittsburgh Steel headquarters building on Market Street in the heart of downtown will be converted into a new, 12-story apartment complex with street-level retail units.

Earlier this month, Seidler publicly raised his concerns about the seeming lack of progress on the development. The city agreed to construct a new, six-story parking structure nearby at the corner of 11^th and Market streets to help facilitate the Wheeling-Pitt Lofts project with needed parking for future tenants. The city’s $12.3 million parking garage project has shown significant progress in recent months, but little if any work has been seen taking place at the Wheeling-Pitt building.

Coon is the developer on the Historic Wheeling-Pitt Lofts project, and Dr. John Johnson is the owner of the building. The partners had joined with the city in January of 2021 to announce that this major project – a long-awaited endeavor in downtown Wheeling inside the city’s tallest building – was moving forward.

Despite delays and some rising costs, the project is still going to take place, city officials said Tuesday.

“We talked about the project from start to finish, and all of the different things that are currently in motion and all of the efforts that are taking place to get this project moving forward,” Elliott said. I know there’s been a lot of frustration with some delays with the project. After the conversation with the developer, I think it’s clear that he’s very actively engaged in this project.”

Initially, the Wheeling-Pitt Lofts project was touted as a private investment valued at nearly $30 million. On Tuesday, the mayor said the current economic climate has contributed to the increase in that overall cost estimate significantly.

“His team is working on it and doing the best they can to cut some costs and shave some areas off of this budget,” Elliott said. “The budget has gone from the high $20 million range to roughly $41.5 million right now. That’s a big, significant chunk of a percentage increase in cost, not to mention that the cost of interest rates having risen from the 3% range to over 7% now for a project like this.”

Despite these challenges, the project is being spearheaded by a team of leaders with a track record of proven success. Johnson is founder and CEO of Dayton, Ohio-based Access Ohio, one of the state’s largest independent behavioral health centers. He led the team that reopened East Ohio Regional Hospital in Martins Ferry after it closed its doors. The Wheeling-Pitt Lofts project is being performed by Access Infrastructure LLC, also founded by Johnson.

Coon has helped transform a number of historic structures in Ohio and beyond. He led the restoration of the Capitol Theatre in Wheeling and the Belmont County Courthouse in St. Clairsville, as well as a list of major restoration projects in Northeast Ohio, including the Terminal Tower and Progressive Field in Cleveland, the Pro Football Hall of Fame and other landmarks. Coon also owns the Longaberger Basket Building in Newark, Ohio.

But with the COVID-19 pandemic, supply chain issues and a tough economic climate, major construction projects like the Wheeling-Pitt Lofts have been beset with delays.

“There’s been a pause in the project,” Elliott said. “Based on our conversations, though, we feel that at some point in the spring, we’re going to see a groundbreaking on this project.”

Because of the escalating costs, Coon is seeking additional sources of funding to help bring the project to fruition. Elliott noted that Coon joined the team of area officials to encourage lawmakers in Charleston to raise West Virginia’s Historic Tax Credit from 10% to 25%, a move that was eventually approved to help spark economic development throughout the state. Officials said the Wheeling-Pitt Lofts project would not have been possible without this boost to the state’s Historic Tax Credit percentage.

“The developer is now looking at some other forms of financing, including a certain type of tax credit program called New Market Tax Credits, which are a little complicated and difficult to use, but they really help make this project make more sense,” Elliott said. “We’re going to do everything we can to move this project forward. I really appreciated the time up there. It was a helpful meeting, and I’m glad we all did it.”

Following the announcement of the Lofts project, crews worked to complete the removal of everything from the Wheeling-Pitt building, and city leaders said the hulking structure has since been gutted. City officials said that in the coming weeks, they expect to hear about a date being set for a groundbreaking for construction of the apartment complex.

“It’s an exciting project,” Thalman said. “When that project is complete, I’m confident that it will not only be a great building and a true gem for downtown Wheeling, but it will be a true gem for the entire Ohio Valley.”

Coon could not be reached for comment Tuesday night, but representatives of his office confirmed that the meeting Monday with Wheeling city leaders was “excellent” and that the Lofts project has been delayed in the wake of the pandemic, but it is definitely “a go.”