New hotel, retail space in downtown Dayton apart of next phase of Dayton Arcade project

DAYTON — It took 30 years for downtown Dayton’s most beloved building, the Third Street Arcade, to open back up, and now the next phase of redevelopment could soon begin.

The owners of the Dayton Arcade, Dayton Arcade Partners, LLC, submitted an application to the City’s Housing for a community reinvestment area (CRA) tax exemption to begin phase two of the redevelopment project in mid-March.

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Phase two of the project would invest roughly $40.4 million to overhaul other areas of the Dayton Arcade, which bring a 94-room Hilton Garden Inn, pop-up retail, and a grocery expansion. According to the project narrative supplied to the Dayton City Commission, the grocery expansion would expand on the nearby Stop n’ Save grocery store for additional fresh food options.

The pop-up retail spaces would allow food entrepreneurs “to test and promote thier products” in a fully equipped space. According to the project narrative, this will allow entrepreneurs to build management skills to operate a full-scale business. The pop-up spaces would have short-term, 6-12 month leases that would be affordable.

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Once the project is complete, it is estimated the hotel will create 35 full-time jobs, and the retail spaces will create 15 full-time and 15 part-time jobs.

The second reading of the ordinance took place at the Dayton City Commission meeting on Wednesday.

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“I just want to express the importance from an economic development standpoint, we bring great people to the Dayton Arcade on weekly basis, to have a hotel there will be instrumental for these people. Every company we talk to is ecstatic about what is going on,” on person said before the commission.

The City Commissioners voted to approve the tax abatement, 4-0 with Commissioner Shaw abstaining.

The exact timetable of when phase two will begin is unknown at this time.

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