Cleveland State University Abandoned $5 Million Tax Credit

The university completed the $18 million Fenn Tower renovation without using the awarded state funding.

Updated on Sept. 23, 2026 in Financial Aid

Isometric editorial illustration of a historic university tower with scaffolding, representing an institutional building renovation. — Cleveland State University completed its $18 million Fenn Tower renovation without using a $5 million state tax credit to retain project control. AI Illustration. Upload story photo >

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Should public institutions prioritize saving costs through tax credits over meeting project timelines?

Cleveland State University has completed its renovation of Fenn Tower for $18 million. Officials opted to forgo a previously awarded $5 million historic preservation tax credit to avoid project complexities.

Why it matters

University leaders cited significant project risks and the necessity of unbudgeted student room upgrades as the primary reasons for abandoning the state financial award. The decision allowed the school to maintain control over the renovation process rather than transferring ownership to a for-profit entity.

The Ohio Department of Development initially authorized a $5 million tax credit for a project with an estimated cost of $50.36 million. The final renovation of the Cleveland building was completed for $18 million.

The players

Cleveland State University

This is a public research university located in Cleveland, Ohio, that manages various campus housing facilities.

Ohio Department of Development

This state agency oversees economic growth initiatives, including the administration of historic preservation tax credits.

Euclid Avenue Development Corporation

This is a non-profit entity often utilized by the university to manage real estate projects and development partnerships.

The details

To qualify for the state tax credit, the university had initially authorized a 27.5-year lease extension and a plan to transfer ownership to the Euclid Avenue Development Corporation. Ultimately, the university determined the administrative and financial burdens were too high to pursue the credit.

May 2024: Fenn Tower closed for facade safety assessments.
March 20, 2025: Trustees authorized a lease amendment to pursue tax credits.
June 2025: The state awarded a $5 million historic preservation tax credit.
Fall 2026: Fenn Tower reopened to students.

Roadmap

This move highlights a broader trend of institutions weighing the benefits of public preservation incentives against the restrictive ownership requirements of the Ohio Historic Preservation Tax Credit program. Universities are increasingly favoring project flexibility over the complex financing structures required by state grants.

Students and faculty can now access the fully renovated Fenn Tower following its reopening. The university's decision to forgo the tax credit ensures that the residential space remains under direct institutional control without long-term for-profit ownership requirements.

The takeaway

Large-scale campus renovations involve navigating complex state financing requirements that may not always align with institutional timelines. Institutions often prioritize project speed and ownership control over the potential savings offered by historic tax incentives.