The developers behind Studio West 117, the mixed-used project catering to the LGBTQ+ community, have recently cleared some sizable outstanding property tax bills that clouded the project’s future.
In March, a review of properties tied to the project, which sits on the border of Lakewood and Cleveland, showed the developers were past due on $222,000 in property taxes. The biggest bill – $163,449 – was tied to the Cleveland retail and apartment building on Detroit Road that includes My Friends Restaurant. The other past-due tax bills were tied to Lakewood’s Fieldhouse, which includes a gymnasium and dining space, and the Phantasy Theater.
At the time, co-developer Daniel Budish said he was in the process of securing a new loan with a lower interest rate on the Cleveland building that would allow the project to pay the tax bills. Indeed, he has. He recently paid $186,000 to clear outstanding taxes and pay the current tax bill for the Cleveland building. He also paid $43,000 on the Fieldhouse’s tax bill.
But he owes an additional $40,000 later this month for the second half of 2023, according to Cuyahoga County property records.
Budish said this week that he continues to dispute the tax bill related to Phantasy Theater property. County records show an outstanding balance of $9,600 for the first half of 2023. Combined with the upcoming bill for the second half of 2023 – due July 18 – the bill jumps to more than $149,410. (All property taxes for the second half of a calendar year are billed in July of the following year.)
“We are current on all properties except the Phantasy because we are contesting that bill and have been meeting with and working with the county on what that number should actually be,” Budish said.
Studio West 117 has also defaulted on more than $9 million in loans, something Budish has said was the result of economic factors tied to the pandemic, including rising construction costs and inflation.
He said this week that all the attention on the project’s financial troubles is obscuring the positive progress being made toward the goal of supporting the LGBTQ+ community through its LGBTQ+ Community Health & Wellness Foundation and the Phantasy Community Foundation.
“These initiatives include providing free community meals to those facing food insecurity, organizing sports leagues and other recreational opportunities, and offering platforms for LGBTQ+ artists and entertainers,” Budish said in a statement. “Even in the face of these difficult macroeconomic circumstances, our focus remains steadfast on servicing our mission and our Cleveland community.”
