A series of agreements setting up financing for the $322 million Great American Insurance Building at Queen City Square has been approved by Cincinnati City Council.

The financing package between the City, the Port of Greater Cincinnati Development Authority and Western & Southern Life Financial Group allows construction of the 41-story tower at to begin.

Included in the financing package are:

* Cooperative Tax Increment Financing and Redevelopment Agreement
* Service Agreement
* Public Improvements Construction Agreement
* City Funding Agreement

Western & Southern/Eagle Realty Group will provide $40 million in developer equity, $225 million in lease bond financing, and coverage of $54 million in tax increment financing bonds.

The Port will facilitate the issuance of the bonds, and the City is chipping in $3.75 million for infrastructure improvements such as sidewalks, streetscaping and utilities.

Councilmembers Chris Bortz and Chris Monzel voted against the financial package because of a clause that would allow the Western & Southern janitors to unionize.

At buildout, Queen City Square will feature 800,000 square feet of office space, 20,000-25,000 square feet of street-level retail, a pedestrian promenade, an outdoor plaza, and a 1,700-car parking garage on eight above-ground levels and three below-ground.

The tower has been designed to achieve LEED certification from the U.S. Green Building Council, making it one of the first, largest, and tallest such projects in the nation.

Demolition of the parking structure is expected to begin in early July, followed by excavation and foundations this fall.

The building shell is expected to be completed by December 2010, with tenants arriving in early 2011.

Photo credit: Cara Owsley, Cincinnati Enquirer

Previous reading on BC:
Queen City Square land transfers approved, agreements pending (6/6/08)
Land conveyances needed for Queen City Square (5/19/08)
Urban Design Review Board to critique Queen City Square (3/18/08)