Part 4: 1980-2020

From Ruin to Rebirth

By: Caelan Danbury, Brody Hannan, and John Walker, with contributions by Dr. Caroline Waldron Merithew and Dr. James Todd Uhlman. Edited by Hannah Kratofil.

Introduction: The Arcade’s Uncertain Era

The story of the Dayton Arcade after 1980 is one of renovation, stagnation, ruin, and eventually, rebirth. The Arcade’s decline continued in the late-1970s and 1980s as it faced growing competition from the suburban malls such as those in Salem and Dayton.[1] In response, during the late-1970s and then again in the mid-1980s, the Arcade underwent renovations intended to restore the building’s luster. The changes alienated business owners and residents of the Arcade, forcing a number of them to leave. At the same time, the updates aroused popular support. The events revitalized but also significant changed the way the Arcade served as a civic space.

The Arcade continued to have financial woes contributing to changes in ownership, and ultimately ending in closure in early 1991. While it was briefly reopened for the holiday shopping seasons of 1992 and 1993, the Arcade never again fully reopened. After 1993, the building began to suffer from neglect: ownership changed several times through the 1990s and 2000s, the building languished as unpaid tax bills accrued, and the complex was allowed to decay. A grassroots movement emerged in the late-1990s to save the building, even as public officials moved forward with urban revitalization projects in the downtown area that did not include the Arcade. Finally, after the city considered destroying the buildings, fresh efforts were made in 2015 to bring the complex back to life. 

Dayton Daily News Collection, Wright State University Special Collections

Change in Ownership and Late 1970s Renovation Project

Through the early part of the 1970s, the Arcade had continued to experience the steady decline discussed in the previous essay. There was concern growing within business community and broader public that the landmark, like the downtown more broadly, was in irreversible decay. But then, on June 27, 1975, the Arcade was placed on the National Register of Historical Places.[2] Efforts to get it on the National Registry coincided with group of investors led by Bruce Bedford of the Mead Corporation and Albert Sealy, a partner in the law firm of Smith & Schnacke, that comprised the Arcade Square Ltd.—or Arcade Partnership—to purchase and remodel of complex.[3] 

The Journal Herald, Monday, February 6, 1967

The partners purchased two parts of the Arcade in November 1975 for $2.25 million.[4] The deal included an option for the Partners to acquire the approximately 1,000 shares for $1.95 million that were held by the owners and comprised the remaining portions of the complex, including the rotunda and Arcade itself. The deal also included an option to buy the Arcade lane and adjacent Third Street properties still owned by the trust of M.J. Gibbons for $300,000 .[5] Plans were announced in early May of 1976 that included building a Fourth Street parking garage and another building on the corner of Third and Main.[6] Soon after, the Arcade Partnership hired the consulting firm Halcyon Ltd. that had previously redeveloped aged urban shopping centers.[7]

In 1977, majority owner Robert Shapiro and minority owners that comprised the Gibbons Estate finally moved to sell the property. The complex was purchased by the Arcade Partnership. Now in full possession of the property, the partnership quickly moved to revitalize the Arcade. An advertising campaign was launched with the declaration by the new owners to spend $10 million dollars renovating the landmark, which was projected to reopen sometime in 1978.[8] Press releases announced the growing number of tenants that planned to open stores after remodeling.[9]

Despite the grand announcements, however, the Partnership had already had trouble raising the necessary funds. Back in 1976, Citywide had agreed to loan the group a portion of what it needed. Once Shapiro agreed to sell the property to the Partnership in 1977 under the option previously signed, Gem Savings promised to lend money. In June of 1977 it also appeared the Partnership had secured nearly $4 million in public funding. Renovations began in late-1977 despite disputes over the bid processes and problems with the funding that continually delayed construction. The efforts encountered further trouble in 1977, when the Partnership was denied an Urban Development Action Grant. It was a deadly blow to the Partnership’s plans.[10] The Federal grants on which the project relied had begun in 1977; they were part of a national program intended to provide seed money to revitalize severely distressed urban areas by encouraging private sector investment that would not otherwise have materialized without the backing of the federal government. Luckily, the revised proposal was accepted in early 1978. That was soon followed with the promise of $1.5 million in tax abatements by the city in March 1978. As anticipated, when the UDAG was finally approved in later 1978, other private sector investors began to line up. These successes encouraged local investors to come aboard. Corporate partners such as Dayton Newspapers, E.F. MacDonald, Mead, and NCR, along with individuals, were given the opportunity to purchase “limited-partnership” shares in the Arcade for $2,500 per share. In this manner nearly $1.5 million was raised.[11]

The Dayton Daily News, Tuesday, November 4, 1975

Dayton Daily News Collection, Wright State Archive and Special Collections

The Journal Herald, Wednesday January 31, 1979

By January of 1979, Albert H. Sealy, attorney for Arcade Partnership, expressed optimism that the public and private renovation efforts will be completed ‘in time for the Christmas shopping season.’[…] Sealy noted that the $9.105 million in private financing planned for the project was contingent on receipt of the grant.[12] The next day, the tone of the Dayton Daily News was ebullient. The supporters of the project were clearly enthused about the prospects of the Arcade following the renovation. The newspaper offered a glimpse of what the planners envisioned: “The re-done Arcade promises a self-contained complex of interesting shops, restaurants and entertainment.”[13] Equally important was the palpable enthusiasm for the city as a whole.

“What the Arcade certainly does is fill in a major piece in the community-development jigsaw puzzle, a puzzle that takes years to assemble but is fun to work. As in much of the rest of the development program, credit the canny use of public policy and public seed money by the City of Dayton, private-sector financial commitments motivated as much by community interests as by hopes for profit, and, in this instance, the specific interest of the Carter administration.”[14]

By Valentine’s Day of 1979, the city had organized builders for the construction that was slated to begin by March 1979. The only potential problem was “the city’s initial timetable of having all its renovation work completed by September has now been revised to about Thanksgiving because of the delays caused by past bidding results and uncertainty over funding.” Federal funding was crucial in alleviating this sort of budgetary uncertainty.

“[…] the city received a $3.18 million federal grant of which $1 million will be used to complete the Arcade renovation work. This $1 million will be added to the $1,855,000 the city received from a previous federal grant and $315,000 in city funds for the work. Another $9.1 million in private financing is planned for the Arcade complex to renovate the commercial space for night clubs, restaurants and specialty shops.”[15] 

The public financing referred to here was the Urban Development Action Grant that Dayton received from the U.S. Department of Housing and Urban Development.[16] 

The Partnership relied heavily upon the public financing to inspire private interests to financially contribute. Thanks in large part to this sort of public funding, additional private money materialized. The Dayton architecture company that would lead the renovations for the Arcade, Lorenz & Williams, planned for the old post office nearby to become its headquarters. At the same, time plans were made to rejuvenate the Dayton Inn.[17]

The Journal Herald, January 6, 1978.

One of the objectives of the renovation was to restore the rotunda’s glass dome. It had been painted over during the Second World War to meet blackout protocols. Dayton was never subjected to bombardment, but the dome remained darkened after the war’s conclusion. The cost of installing new glass was one of several renovation plans which the uncertainty in funding nearly killed.  Ultimately, restoration of the glass dome began in March of 1979. One local newspaper explained:

“Work on the downtown Arcade is in full swing with tentative completion scheduled for the Christmas holiday season. Here, workers weld framework for the Arcade’s new glass dome. The framework will hold special glass panels to give an open skylight effect.”[18]

The entire project was set to cost approximately $14.5 million. Part of the money the city pledged would be used to acquire the Arcade land that it would lease to the Arcade Partners. More than $440,000 would be used to relocate tenants in the apartments on the upper floors.

Problems with Community: Race and Longtime Tenants?

Alongside the problems with raising enough funds to complete renovations, other aspects of the processes were problematic. Black contractors felt locked out of the bidding processes. Public funds were being used to rebuild a city landmark, but many black contractors felt they were not going to benefit from the jobs this would create. Meeting with the Dayton City Commission they asked that 45% of contracts, equal to the percentage of African Americans in the city, be filled by minority firms. Arcade Square Ltd. did not join the negotiations but promised to ensure that 15% of all contracts went to minority builders.[19]

One of the less discussed but important events surrounding the late 1970s renovation was its impact on the people who lived and worked inside the Arcade complex. The changes planned were extensive. More than 114,000 square-feet of retail, restaurant, and entertainment space were set to be refurbished. The extensive nature of the plan required that the businesses currently occupying the buildings as well as those living in apartments would need to be relocated.

The Dayton Daily News, Thursday, March 2, 1978

Tenants under Robert Shapiro were required to move out in order to make way for construction. Realty agent William Fitzpatrick was in charge of lining up tenants to that the re-developers vision of the new Arcade.[20]  Many shop owners were not informed about these plans until late in the process; when they finally were informed, some were told they could not return. Leo McGarry, owner of the Arcade Food Market that had operated since 1955, learned he could not return unless he converted his store to a boutique food shop. The Blue Lounge, better known as “Old Blue” or “The Blue Lagoon,” was also told it would not be allowed to return. The tavern had been in Arcade since 1951.[21]  Ruth Disher, who for 52 years owned a cheese stand in the corner of the Arcade, would also not be allowed to return.

The Dayton Daily News, Wednesday, May 18, 1977

The Dayton Daily News, Friday, October 14, 1977

While Disher and McGarry were among the many who expressed hope that the renovations would give new life to the building they loved, but also were saddened by the end of what they saw as the “old Arcade.” For Morris E. Friedman, owner of the famed Arcade’s Fish Market, the changes were bittersweet. He was sad to see Ruth and others go. At 59 he had been working in the Arcade in one capacity or another since time he was twelve.

Residents of the Arcade apartments were also told they wouldn’t be allowed to return. For many, eviction meant the end of an entire way of life.  Figures 1 and 2 below show the history of the number of tenants in the Third and Fourth Street buildings between 1930 and 1985. The charts reveal that tenancy in the building increased over time. While the number of people living in the Arcade peaked in the 1950s and 1960s, it remained high up until the remodel with approximately 140 tenants in the entire complex. In addition to finding a new apartment, Jim Hegyi, who had lived there for ten years and liked to spend time at the Blue Lounge, explained that he would have to rebuild his social life.[22] Many of the tenants were elderly and had lived in the Arcade for decades.[23]  Threats of lawsuits surrounded the eviction. Other retailers simply could not anticipate making enough money to cover rents that were more than doubling. Although the plans for the renovations called for the complex’s 131 various apartments to be converted to 45 efficient one-two bedroom units, the work was never completed.[24]

Figure 1: Number of tenants in the Fourth St. Building over time.

Figure 2: Number of tenants in the Third St. Building over time.

Guest Jeffrey, “Aspects of the Dayton Arcade.”

The Dayton Daily News, Wednesday, October 26, 1977 and The Dayton Daily News, Monday, December 19, 1977

Grand Reopening

The new Arcade was unveiled in a three-day grand reopening between October 9-11, 1980. Advertising for the event highlighted the new businesses in the Arcade. Much of an October 8, 1980 supplement in the Dayton Journal Herald was devoted entirely to the new Gem City Savings bank location in the Arcade. The prominent place of a bank in what had begun as a food market is illustrative of dramatic change in the types of businesses operating in the Arcade eighty years after it first opened. Gem City was very insistent in their advertisement that the Arcade office of their bank contained a “Passcard Teller” machine—an ATM.  Shoppers would now have access to cash on demand for their purchases without having to leave the premises. The ATM was part of their central marketing strategy.

“Grand Opening Sweet: Come see us during the Arcade Square grand opening, October 9-11. You’ll receive a coupon for a free ice cream cone at the Arcade’s Baskin-Robbins or The American Way just for making a deposit or watching a Passcard Teller demonstration.”[25]  

Dayton Daily News, Wednesday, October, 26, 1977

The hope was that the renovation of the Arcade had recreated a shared community space in downtown Dayton. The community itself already existed, but the new dome and new businesses simply updated their surroundings, making them more useful for community activities. Arcade Square Magazine, a publication which advertised the activities at the Arcade by the early 1980s, highlights the sorts of entertainments that the renovated space allowed. Most conspicuous on the front page were the weekly “Tea Dances” of October 1983, sponsored by the Eastway Mental Health Center. These dances featured music, food, tea and dancing instructors, all located underneath the Arcade Rotunda.[26]

This example is also illustrative of the symbiotic relationship that exists between the public and private sectors in the functioning of the Arcade. The public sector put forward money in order to renovate the Arcade building itself; once private investors saw the public investing, they felt secure in contributing their own money. Later on, private interests felt secure enough in the stability of the publicly-restored building to put on events such as a weekly tea dance.

Brochure of the Arcade’s Grand Reopening in 1980, Private Collection. Cover image of Progressive Architecture, Vol. 61, No. 11 (November 1980), 106-111.

Images from the article on the Arcade in Progressive Architecture, Vol. 61, No. 11 (November 1980), 106-111.

Public Response to the Renovations

In an 1983 issue of the Arcade Square Magazine, quotes of Arcade patrons, many of whom had frequented the Arcade since their youth, offered thoughts on the renovation. One of them, Ms. Pat Russell-Campbell declared:

“I am now much older and much taller, but I still think of Walker’s [a juice stand that used to be in the Arcade] every now and then when I’m in the new Arcade. I work downtown and am in the Arcade at least two or three times a week. I think the renovation is beautiful. They did a great job.”[27]

As the use of above quote in The Arcade Square Magazine supplemental suggests, it was a strategy to draw on nostalgia for the old Arcade while highlighting the increased usability of the rotunda space. The testimonials also served as a vehicle for praising the work done to the building as part of its renovation.

Not all of the coverage in Arcade Square Magazine was positive, however. Negative responses to the renovation of the Arcade include the following quote from Arcade Square Magazine by an Evelyn B. Walker. Her negative outlook spoke to certain problems that the Arcade faced in the 1980s, leading up to its eventual failure: “As an older adult,” she said, “Saturday shopping spree/nostalgia trip after several years in the suburbs. The Arcade had changed so drastically—all downhill and very disappointing.[28]

Walker’s disappointments suggest one of the central problems the new Arcade faced. People like Walker were the type of consumers the new Arcade management sought to bring back. But in the 1980s, suburban middle class whites viewed the downtown surrounding the Arcade as less than appealing. Centerville and Trotwood both experienced continued growth during the 1960s, changing from rural villages to cities practically overnight. Oakwood maintained its status quo, and Fairborn’s growth began to level out. Vandalia, Kettering, and Huber Heights all continued to expand.[29] A woman like Walker wouldn’t have had to come into the city. When she finally did return to the city, she was disappointed by the Arcade, which had gone “downhill.” This was likely due to the fact that it lost patrons like her.

At the same time, the renovations process had managed to alienate many who had for decades worked at, owned shops in, lived in, or visited the Arcade. By the changing the building and targeting consumers who had gradually come to abandon it, the change weakened the downtown communities link to the complex.

Dayton Daily News Collection, Wright State University Archives and Special Collections

Foreclosure, Sheriff Sale, and the Banks Take Over

This suburban dilemma was part of the overarching problem the new Arcade faced. Signs of the Arcade’s problems were evident shortly after it reopened in 1980. On July 18, 1981, explained the article,

“Arcade owners, citing poor cash flow and increased operating costs, say they will delay six months’ payments on a $7 million debt while trying to improve occupancy. Third floor still vacant after public television station and disco operator pull out of lease agreements.”

Several problems were readily apparent. An entire floor of the building was empty months after reopening, indicating the Arcade was not as profitable as anticipated. Moreover, the references to a public television station and a disco club indicate the competition the Arcade faced from suburban malls. By January 1982, “Owners say failure to lease third floor will mean foreclosure.” Foreclosure was averted that April, when Bell Publicom, Inc. moved into the third floor of the Arcade. “Management avert[ed] “disaster” by raising $1 million in new capital, $180,000 of which to be used for renovation of Bell Publicom space.”

Whatever Bell Publicom paid in rent as a tenant of the Arcade must be measured against the $180,000 the Arcade spent on refurbishing their space. Ultimately, Bell Publicom was in the Arcade only a short time. “March 23, 1984: Bell Publicom, Arcade’s largest tenant, closes after default on loans from Huntington National Bank.” By then, the effects of not being able to secure renters and positive cash flow had already led to the sale of the Arcade.[30]

Back in 1981, problems had already led the Arcade Square to stop paying lenders. On Thursday June 28, 1984, the Dayton Daily News announced that the primary lenders to the Arcade Square Ltd. took formal action to force a foreclosure of the complex. It was the first major step in what had already been a nine-month-long attempt by Aetna Life & Casualty Co., Gem Savings Association, and Third National Bank to recoup their investment. In late 1983, they had finally taken action to recover some of the $7 million of unpaid interest on their loans. Back in the Spring of 1981, the Arcade Square Ltd. had “stopped making monthly payments of the $5 million debt because the Arcade wasn’t generating enough cash.”[31] The grace period given to the Partnership had ended in July 1983. In the interim, the lenders had hired a marketing firm to see what could be done. On October 26, 1984, four years since the 1980 reopening, the Arcade Square Ltd. lost control of the building. The Arcade, appraised at $3.3 million, was sold for $2.2 million at a one-minute sheriff’s sale to Aetna Life & Casualty, Gem Savings, and Third National.[32]

Top: Cover of the Arcade Magazine, October 5, 1983. Bottom: Dayton Daily News Collection, Wright State University Archives

The Hole in the Floor:  The Food Court Innovation, 1986

The banks now in possession of the property were eager to recoup their losses. Plans soon began for another renovation of the building. “May 15, 1985. Arcade management plans basement food court to house most fast-food outlets. Remodeling to cost $1.5 million or more.”[33] Less than five years after the dome renovation that created an open space beneath the skylight, that space would once again be renovated; this time it would be replaced by a hole with restaurants in it. The Arcade management obviously believed in the idea, but it would have an unfortunate effect on the usability of the Arcade rotunda as a venue for community events. The construction of the food court itself was straightforward.

Broadside Advertisement for Arcade Sale, 1983, Private Collection

“Work crews started the renovation in mid-March by creating a 54-foot hole in the floor of the shopping center’s rotunda, opening up the Arcade’s basement for 14 food stalls that will encircle the opening. The opening will give Arcade patrons a four-story view up to the rotunda dome and will provide seating for 300, four times the seats available in the old rotunda.”[34]

At the time, the Arcade rotunda was used for community activities such as “Tea Dances” beneath the dome. The food court renovation negatively impacted the usability of the Arcade rotunda for such events. 1985 was the last Christmas before the food court renovation, and 1986 would be the first Christmas with the hole in the rotunda floor.

The Dayton Daily News provided a full page of advertisements regarding holiday-themed events taking place in the city of Dayton from the beginning of December to the weekend before Christmas in 1985. Activities were located in various buildings downtown. Several were located in the Arcade, such as the Northmont Junior High Chorus, the Fairport Intermediate Magnet Band and Chorus, and the Southern Ohio Tuba Quartet, all under the dome.[35] These are all activities which require space for the performers and audience.

But in 1986 the hole in the floor severely limited such events. That Christmas, when the Dayton Daily ran a Holiday Events section in early December 1986, the list of activities slated for the Arcade rotunda was significantly smaller. In the December 2, 1986 issue of the paper, only one activity is listed as taking place in the Arcade rotunda—a gingerbread village.[36] No mention is made of any musical acts, as these would have required floor space that the rotunda no longer possessed

Critics of the food court renovation were quick to point out other problems with such a drastic change to the layout of the building. The recurring theme of the complaints was inconvenience. When the Journal Herald asked Leanna Kellog, an Arcade patron who worked downtown, about how the Arcade’s new renovation would be received, she replied:

“It’s not going to hurt me because I have too many other places to go,” said Kellog, an administrative secretary at Dayton Power and Light. Kellog, who eats at the Arcade two or three times a week, said, “I’m really sorry to see them going downstairs because it’s going to be an inconvenience to go to the lower level. It’s going to hurt a lot of businesses. People are used to just walking through, stopping where they want and getting back to their businesses.”[37]

Guest Jeffrey, “Aspects of the Dayton Arcade.”

Dayton Daily News Collection, Wright State University Archives and Special Collections

Judging from the descriptions of the new food court offered by representatives of the Arcade, the intention was to foster a relaxing, picnic-esque atmosphere. Daley’s article in the Dayton Daily specifically refers to a “park-like atmosphere right here in Arcade Square.”[38] This contradicts Kellog’s view of the Arcade. She sees it as a temporary stopping point, a place where patrons go to quickly get food before heading out to their next task.

A “food park,” complete with trees and a four-story view up to the glass dome, is less of a stopover point and more akin to a place that encourages patrons to loiter. The rationale was likely to urge Arcade patrons to visit the retail stores and spend money. That implies a drive on the part of Arcade management to appeal to this sort of committed shopper. However, the drive for creating a mall-like shopping space hindered the Arcade as stopover point for the busy downtown worker that Kellog described.

Bigger and Bust:  Arcade Centre

The food court renovation was only part of a much larger plan for the development of the Arcade. The Arcade Centre was a twenty-floor office building located on the corner of Main and Third Street that would be connected to Arcade. The original plan called for two (later reduced to one) office towers. The hope was that the office towers would be filled and their workers would visit the Arcade at lunch and at the end of the day to shop.

At this time, Dayton also gave up control of the thorough fairs through the Arcade. Up until 1985 those paths had been public walkways.[39] Handing them over to the private owners of the Arcade would create, along with the food court and the Centre office towers, a self-contained business and recreation area at the Arcade.

The Arcade Centre project was be partially supported by federal funding. The majority of funding came from loans that the Arcade developers themselves took out of Huntington National Bank—$31.5 million of $45 million. Once again, however, the government stepped forward to contribute to the overall financing.

“City officials also received word that the U.S. Department of Housing and Urban Development will accept changes in a development agreement and shortly release its $6 million Urban Development Action Grant.”

Just as in 1980, the federal government contributed a small amount of money, leaving private interests to cover the remainder. The 1980 renovation demonstrated the wisdom of this policy. A federal grant assured private financiers by indicating the Arcade would be a safe investment to make.[40]  Before the federal government investment in 1987, preliminary work for lining up the financing of the Arcade Centre had begun in 1985. It was in that year that Dayton put “$9.5 million ‘up front’ money into Arcade Centre for acquiring land, relocating tenants and demolishing buildings.” Later, in November 1985, the city approved “$42 million [in] development agreements for Arcade Centre.”[41]

After nearly two years of working to secure the necessary funds, the Dayton Daily reported that the work of pouring the foundation would begin by the week of January 18, 1988. At this point in the development process, the Arcade Centre complex was comprised of “an office tower at Third and Main streets, a parking garage at Third and Ludlow and retail space.”[42] By August 1989, however, plans to build a second tower were scrapped.  “Mayor Richard Clay Dixon said frequent delays in the project and slow leasing at the first Arcade Centre indicate a second building may not be needed for a long time.”[43]

Dayton Daily News Collection, Wright State University Archives and Special Collections

The demise of plans for a second office tower was a significant blow to the overall viability of the Arcade and reveals the overarching problem with the larger business strategy. Arcade businesses could not rely upon foot traffic generated by downtown business if there were no downtown businesses.

Part of the Larger Problem: Limits in Public Investment during the 1980s

The lack of adequate funding was a critical reason for the failure of the 1980s remodeling plans. Changes in government attitudes at the same time also played a role. The $3 million put up by the Department of Housing and Urban Development for the 1980 renovation of the Arcade had led to private investment.

Seven years later, Housing and Urban Development under the Reagan administration would give the city of Dayton an even larger amount of money for the purposes of beginning work on the Arcade Centre. This was at odds, however, with the attitudes of the administration towards such government expenditures. The negative attitude of the Reagan administration was evident as early as 1982 in the Dayton Daily News. At the time, Reagan was blaming the former administration for the recession of the U.S. economy that he felt he had to manage.

Dayton Daily News, Sunday, April 6, 1986

“In the economic portion of his speech, Reagan said, ‘Yes, we are in a recession. Our administration is a clean-up crew for those who went on a non-stop binge and left the tab for us to pick up.’”

While Reagan argued that his administration needed to clean up the “mess” of the Carter administration, there was the presumption that federal spending will be reduced. In the same speech, Reagan’s disdain of government’s problem solving role was displayed. According to Reagan, “big government” was “hurting the people it intends to help.” He declared that business and private charities were more effective in dealing with social problems.[44]

In the example of the Arcade, this logic did not entirely prove itself. In both the 1980 and 1987 renovations the bulk of money came from private sources. What is lost in the attitudes of the Reagan administration and their proposals to eliminate these types of federal grant programs was the role federal money, played in encouraging private investment. In both the 1980 renovation and the 1987 Arcade Centre plan, the amount of federal money was smaller than the contributions private money, or the business loans from private banks.

In both instances the backing of the City, State, and Federal government was essential in securing that private financing. In 1980, for example, private money was contingent upon receiving federal money. This implies that the contribution of money from the federal government confers upon a project a sense of legitimacy. It serves as a stamp of approval from a venerable, seemingly permanent institution—the government. The willingness of the government to commit taxpayer money to a project would seem to inspire faith among private lenders and investors.

The threat to public funding programs in the 1980s appears to have had chilling effect upon private investment. Although the Urban Development Action Grant program at HUD was not eliminated by the budgetary ax of the Reagan administration, its demise was certainly considered. When Reagan released his budget proposal for the U.S. Fiscal Year 1987 in February of 1986, several social development aid programs were considered for cuts. The Dayton Daily ran an article indicating which programs would be cut and how much money those cuts were expected to cost the state of Ohio.

“About $150 million for the Community Development Block Grant program would be cut by $52 million, Falle [Gary Falle, described as the assistant director of the Washington, D.C. office of Ohio Governor Richard Celeste] said. The Urban Development Action Grant program, which subsidizes local economic development, would be eliminated, costing cost Ohio $26 million.”[45]

In the case of the Arcade, there were two results. First, the limited funding led to an incomplete and poor quality renovation plans. Second, the lack of sufficient reserves did not give the Arcade time to build its customer base.

Dayton Daily News Collection, Wright State University Archives and Special Collections

The Final Years, 1990-1993

The Arcade Centre finally opened on March 3, 1990. Optimistic predictions were trumpeted by management and local newspapers. The Centre was “working out details on proposals for leasing 160,000 square feet, equivalent to half the total space.”[46] This optimism was short-lived. Issues with tenancy were already evident only a few months after opening. By July 1990, the building had only one retail tenant. Efforts to lease the building for events helped relieve some of the cash flow problems. These events were of a wide variety, including “political fundraisers and private parties sponsored by the Dayton Philharmonic Orchestra, Dayton Ballet and the Dayton Area Chamber of Commerce. Next Saturday, a wedding reception is scheduled.”

Essentially, the lobby of the Arcade Centre tower had become a new version of the pre-1986 rotunda dome, a place for social events to occur.

This time, however, the social space was not necessarily planned, but rather a necessity due to a lack of actual retail tenants in the building. Moreover, social events at the building were a source of contention. Those events were at the heart of a dispute between the tower’s leasing agent and the only occupant of the 35,000 square-feet of retail space on the tower’s first and second floors. Kamal Harjani, owner of Kamal’s Gold Center in the tower lobby, said he was told to vacate the building by Sunday in a dispute over a late rent payment. Harjani said he withheld one rent payment after complaining that the events hurt his business, as Harjani believed a casually dressed customer would be intimidated by the private receptions being held in the Arcade lobby.[47]

This represented a no-win scenario for the Arcade Centre. Less than six months after opening they had only one tenant on their first two floors. To make up for the lack of tenant revenue, they turned to holding social events in the lobby. This brought protest from the only business. When he withheld payment in protest, he was asked to vacate. This ensured the Arcade Centre would lose the revenue from his rent.

Trouble at Arcade Center heightened the problem at the Arcade and the rotunda itself. It had been the hopes of the banks to keep the complex alive long enough to recoup their investment. Long term, they believed the office workers at the Arcade Center would be provide the daily clients necessary for Arcade businesses. John Gower, who was privy to the details of these business decisions, discussed the specifics of the Arcade’s financial struggles and its marketing strategies.

“They [the Arcade owners] had to keep this out of bankruptcy for 60 months [beginning from the 1980 renovation] because they [Arcade management] were leveraging something called accelerated depreciation, which preceded federal historic tax credits. They went into bankruptcy in the fifty-fifth or fifty-sixth month. So, all of the partners who helped raise the equity for this ended up having to pay back Uncle Sam. So, a lot of people feel like they got pinched.”[48] 

The Arcade Center’s problems in finding tenants meant the Arcade would also struggle. The Arcade itself saw an erosion in the number of businesses but managed to keep much of the spaces on the lower floor open. The biggest problem for the Arcade was the decline in visitors. The anticipated boost in customers from the Arcade Center never got a chance to develop. Even before the Arcade Center officially opened, the banks holding the Arcade ran out of money and patience.

Figure 3: Number of business and Vacancies in the Arcade

Guest Jeffrey, “Aspects of the Dayton Arcade.”

The Arcade Closes Full-time Operations

The end of 1990 would bring about yet another change in ownership. On Christmas Eve, “Dayton developer Tom Danis purchased the financially plagued Arcade this past week and announced it will remain closed until he figures out what to do with it.”[49] According to John Gower,

“By 1990—they didn’t sell it by 1990. They [the banks who owned the Arcade] said ‘we’re done.’ So they called Tom Danis. Tom Danis of Danis Development. Tom was in his early days as the CEO. He told the story that he got a call literally in the middle of the night from the two local bankers. Doc Hawthorne from Third National and Fred Schantz from First National. They said, ‘we want you to take this [the Arcade] because we don’t want this to be bought by somebody not from Dayton.’ Tom said, ‘I have no idea what to do with this.’ Danis Development did new construction, they didn’t do rehab.”[50]   

The closing of the Arcade remained a deeply unpopular decision with the businesses who would be forced to shut down. Charley’s Restaurant brought a lawsuit against Danis to force the Arcade to remain open. In the same article, Huffman describes both this anger, as well as the despondency of many of the business owners at the prospect of losing their business space, which were also their livelihoods. Morris Friedman, who had run a fish market in the Arcade for 46 years, said he didn’t want to leave. “It hurts. I want to stay here. This is my whole life. It’s just a sad situation.”

Within days, another food vendor in the Arcade filed suit against Danis. The demand was also that the Arcade remain open. Signs in empty storefront windows began appearing in January, like the one at Cooper’s Watchworks in the middle of the Arcade’s long ground-floor hallway which read “Sorry…we’ve been forced to close this store,” as lawsuits were filled.[51] A $1.75 million lawsuit was filed in Montgomery County Common Pleas Court by Jim Xarhoulacos, the owner of Xar’s Greek Deli, What-a-Burger and Xar’s Lotto, against Danis and the banking consortium that formerly owned the building. This lawsuit joined the previously mentioned action by Charley’s. Despite the filing by Xarhoulacos, Danis had not changed his position on the Arcade, and his company was still resolved to evict all of the tenants by January 31, 1991.[52] The Arcade did not close on January 31, however. Danis extend the closing deadline to March 31, giving the merchants more time to relocate.[53] But the end had only been delayed. Danis spent nearly $500,000 to settle and help relocate the remaining 28 tenants. On the Arcade’s last Saturday, March 30, 1991, the Dayton Daily issued a full page article on the event. The mood captured is a combination of sadness and bitterness. It is clear that the businesses in the Arcade did not want to leave.

In the wake of the closure the City of Dayton considered trying to regain …

“control over portions of the downtown Arcade Square marketplace that it gave up in 1985, before it was purchased by Dayton developer Tom Danis. Mayor Richard Clay Dixon on Wednesday asked City Manager Rick Helwig to study the possibility of redesignating the walkways and rotunda of the Arcade as public rights of way, much like public streets and alleys.”

The walkways in the Arcade had before 1985 been public thoroughfares. The walkways were handed over to the private owners of the Arcade during renovation project because “the Arcade’s owners said the action would help stabilize the struggling marketplace and address security and other concerns raised by patrons.”[54] The closing of the Arcade and the Lazarus department store on January 21, 1992 led Dayton Mayor Richard Clay Dixon to insist the public needed access to aid the vacant Arcade Square marketplace. “There is absolutely nothing definite, but one of our top priorities will be to open up the Arcade,” Dixon said. “We think that may be easier than finding a tenant for Lazarus.” The closing of the two buildings means the loss of one-third of the active retail space in downtown Dayton—about 417,000 square feet, or the size of two Meijer department stores.

The problem for downtown shopping by 1992 was a continuing trend of the suburbanization of shopping since the postwar era. “In the three years leading up to the Lazarus closing, 10 department stores were built in Dayton’s suburbs and six more are under construction, according to city statistics.” The picture was much bleaker than even these numbers suggest. 

The Dayton Daily News articles. Top: December 18, 1990. Middle: March 31, 1991. Bottom: December 19. 1990.

Advertisement for Hollydays, Private Collection.

Unfortunately, sales in 1992 dropped by 25%. The next year city officials decided not to sponsor the event. The strands of lights would remain hanging in the Arcade after the end of the festivities. They would remain in place until new renovation work began in the 2010s. Hollydays brought no renewal of the Arcade, and the 1990s—2010s would be a period of inactivity, stagnation, and abandonment for the Arcade building.

Covering only the period between 1989 until 1992, they ignore the larger decline that had taken place over the previous decade. Over “the past 25 years, downtown [Dayton] has gone from having four of the region’s five major department stores to having two of 40.”[55] It seemed to many that the wider changes which had taken place between 1967-1992 made the prospect of any future hope to revitalize the Arcade unlikely.

“Hollydays”:  The Winter Festival at the Arcade 1992-1993

Although Danis closed the Arcade on March 31, 1991, there would be brief openings of the Arcade for the holiday shopping season in 1992 and 1993. In 1992, the city spent $200,000 to reopen the Arcade. Short-term leases were given to merchants between November 12 and December 28. An estimated 150,000 people attended the 1992 event.[56] The events were planned by city officials eager to keep the memory of the Arcade alive and thereby improve its chance of being purchased and remodeled.[57] In 1993, the city sponsored a second Arcade Hollyday shopping season. It began with a preview event on November 24, 199 that featured over 100 vendors—including around a dozen not at the 1992 Hollydays—on the first and second levels of the Arcade. The decorations were impressive as well, including 50,000 lights.[58] 

Photograph of Hollyday festivities, Dayton Daily News Collection, Wright State University Archives and Special Collections

Dayton Daily News articles. Top: May 24, 1999; Bottom: May 20, 1999.

The Danis Years:  Waiting for a Plan

Although popular, the Hollyday events failed to spark the hoped-for interest among re-developers. Danis continued to conduct basic maintenance on the property until 2004. After 1993, the city declined to sponsor further Hollyday events, and for most Daytonians, Christmas of 1992 was the last they saw of the Arcade. In the following decade, Danis was unable to find reliable buyer for the aging buildings. Plans for reopening the buildings came and went. Through it all, Danis held the property through a company named the Dayton Arcade Community Urban Redevelopment Corp. and privately financed its maintenance, an expense of approximately $130,000 a year.

In 1994, $250,000 was donated by an anonymous donor for the Arcade to house eight museums; the Arcade Museum Center Foundation was promptly set up to orchestrate this.[59] However, within six months, the estimated $33 million needed to reopen the complex killed interest. Michael Ervin, head of the committee created at the time, concluded that Arcade redevelopment “cannot be funded as an independent project”.[60]

The failure of this project led Dayton Mayor Mike Stern’s to redirect his attention and forge urban redevelopment plans for the downtown that did not include the Arcade. He and city planners pressed forward with the construction of RiverScape, Fifth-Thirds Field, and restoration of the Lazarus department store. He stated it was now a long-term goal but prior to the project’s inception seemed very enthusiastic calling the building “a crucial block which would help the whole region”.[61]

It was not until 1998 when the Arcade was listed on the National Registry of Historic Places that significant interest in the complex reemerged. The opportunity to receive federal tax breaks encouraged developing companies such as Landmark Management and Preservation Dayton to propose restoring the Arcade into offices, retail, apartments, and an art gallery.[62] Unfortunately, none of these developers were able to come to an agreement with the city officials on a way to re-purpose the buildings.[63] Mayor Mike Stern thought retail, not housing, was the key to downtown’s revitalization. If the city and developers were going to come to an agreement, there had to be significant confidence in its success due to the projected price tag of revitalization ($15-$33 million). But the fact that so many local investors had taken significant loses in the earlier restorations discouraged private funding.

During these years, Danis played a significant role in attaining the government funding ($120 million project) for the Schuster Center, but he struggled to do so for the Arcade.[64] This is due in large part to the city’s plans for downtown that would take place from the late-90s to the early-2000s. With a price tag of $90 million, these projects were already ambitious. The city struggled to find the money needed to carry out these downtown revitalization efforts.[65] 

A renovation of the Arcade seemed too costly to include. Danis showed a commitment to the Arcade’s revitalization, but without the city’s support he struggled. Maureen Pero, president of Downtown Dayton Partnerships (city officials responsible for overseeing the revitalization of downtown) stated Danis was “being careful and wants to make the Arcade ends up in the right hands”.[66]  Despite all of this, the Arcade remained an attractive destination. In 2001, two companies, Cohesia Corp. and Excellence in Motivation Inc., proposed relocating their offices to the Arcade and turning it into a ‘Digital Dayton Arcade’.[67] However, these plans never came to fruition. Then in 2002, Bob and Nancy Shiffler purchased the Kuhn’s Building located next to the Arcade. After a $2.5 million renovation, the building attracted tenants. In 2003, Al Neyer Inc., a development company from Cincinnati, also showed interest in the Arcade during Tom Danis’ ownership. It looked as if the property’s misfortunes might be coming to an end.[68]

A New Owner and New Problems

By the mid-2000s, however, Danis was eager to unload the property. In 2004 he donated it to his friend and owner of Brownfield Charity, Tony Staub. Staub had experience with redevelopment, having renovated numerous aging buildings in the Dayton area. Staub believed the whole community, including the government, individuals, and himself, had to come together and support the opening of the Arcade. Rhine McLin’s election as Mayor was promising in terms of gaining the city’s financial support. McLin believed that they had to “do something for the Arcade; it’s the missing piece.”[69] Staub believed his previous successes would entice people at all levels to join in the effort of revitalization despite never offering a clear plan on what that revitalization would look like.[70] As one observer put it, Staub seemed to believe that “the answer will come as people with the big money will come out the woodwork”.[71] When Staub could not find the money to pay off the buildings taxes and maintenance, one sarcastic critic quipped he was surprised that Staub just didn’t hold a bingo night and sell postcards with the Arcade on it.[72]

Still, the Mayor’s Institute on City Design (an agency dedicated to finding the design and livability of American cities) described the Arcade as a “extraordinarily high quality complex of buildings.” [73] In 2006, Staub drew interest from the Kettering developer Themed Environments and Special Events, but the plans fizzled. [74] Unable to pay the taxes on the complex, Staub panicked and put the complex up for sale on eBay at an asking price of $4 million.[75] He also set a reserve of $3 million, which he said was needed to cover the expenses. No buyers materialized.[76]

The National Economic Recession of 2007-2008

The misfortunes of the Arcade during this period were about to become magnified by the Great Recession of 2007-2008. Since the decline in manufacturing jobs in Dayton and throughout the nation accelerated during the 1980s, one of the few positive areas of growth in the U.S. economy was in real estate and financial markets. Reduced oversight of banking and Wall Street, coupled with the growing trend in economic inequality, encouraged the flow of cash into securities. Earlier instability in the markets during the 1980s had failed to warn policymakers away from the risks of loosening regulations. By the early-2000s, this combination had resulted in the formation of toxic financial instruments. The sale of these instruments enriched brokers, banks, and the large investors while the growth in markets that they fueled produced a financial bubble in both securities and home mortgages. When the bubble inevitably burst in early 2007, the crisis spread, producing a general slowdown in the U.S. economy. Only intervention by the federal government under Presidents George W. Bush and Barack Obama to bailout financial institutions prevented a disastrous collapse of the nation’s and world’s financial system. The event nonetheless triggered a global economic recession.

The Dayton Daily News, Thursday October 16, 2008.

Already reeling from the changing economy over the previous decades, Dayton was hit hard by the recession. Like many locations, the subprime mortgage schemes offered by banks who used lax and fraudulent underwriting practices that induced buyers into risking investments ended up leading to the foreclosure of many homes in the Dayton area. Nationally, between mid-2007 and late-2008, Americans witnessed a 25% drop in the household net worth.[77] Dayton was hit even harder. Over the next decade, Dayton employment in the city dropped from 65,139 to 55,689 for a total loss of nearly 15%. The number of people living poverty rose to nearly 35% and the average household income was $28,745.[78] Census data reveals the median household income for the Dayton metro area had declined since 2008.[79]

Delinquent Taxes and the Birth of a Grassroots Movement

The broader recession provides a backdrop for the growing financial woes of the Arcade. Staub entered 2007 with a $270,000 tax lien on the complex. Staub had begun to fall behind in tax payments back in 2004. The Arcade was appraised at $2.5 million in 2007. Two Daytonians, Leon Bey and Diane Wallace, learned of Mr. Staub’s inability to pay the taxes and devised a plan to save the Arcade. The pair, who were both retired Dayton Metro Library workers, sought to begin a grassroots campaign to save the Arcade from demolition and keep it under Staub’s ownership. To accomplish this goal, Bey and Wallace created the “Friends to Save the Arcade,” a nonprofit group whose mission was to raise enough money to pay off the tax lien.[80]

The Friends to Save the Arcade first met on Wednesday, June 13, 2007 at the Dayton Metro Library. Around twenty-five people attended. The group was led by Leon Bey, Maribeth Graham, and Joanne Granzow. The first objective the group focused on was raising $270,000 to pay off the tax bill.[81] The Friends to Save the Arcade learned in late July that the deadline to pay off the tax lien was November 19, 2007, not December 31, 2007 as previously thought. They also learned the tax lien had increased from $270,000 to $318,600. They were told that if the tax lien was not paid by the November 19 deadline, the Arcade would enter Sheriff’s Sale. To generate more revenue, they created and sold buttons and bookmarks. Local artists David Smith began reprinting note cards he sketched as part of the 1980 redevelopment of the Arcade. The group also issued a public plea for donations.[82]

The Dayton Daily News articles: Left: July 7, 1999; Middle: December 1, 2008; Right: June 30, 2008.

Just months before the tax bill was due, the Arcade was opened as part of the Downtown Dayton Partnership’s Urban Nights event. Held biannually, Urban Nights sought to draw more people downtown for shopping, dining, business, art, and housing. Friends to Save the Arcade pushed for the inclusion of the Arcade in the September edition of Urban Nights because they felt it would be an excellent opportunity for people to see the beauty of the building and hopefully then join their movement to preserve the structure. [83] During the event, more than 500 people lined up to tour the Arcade, which had been closed to the general public since 1991. Officials with Friends to Save the Arcade had prepared to do four tours an hour, but due to the number of people they had to conduct around twenty tours an hour.[84]

Efforts to save the Arcade continued through the fall of 2007. While many people within the Dayton community, including noted preservationists, offered vocal support for the grassroots effort, few backed their words with financial support. In another effort to raise funds the Friends to Save the Arcade opened a gift shop at 137 N. Main Street, Suite 200. The shop operated on Fridays from noon to six. They sold Arcade T-shirts, buttons, CDs featuring pictures of the Arcade, bookmarks, note cards, and 2008 calendars, with nothing costing more than $10.[85] However, by early November 2007, they knew they would be unable to raise the money needed to pay off the delinquent taxes. They decided to shift their efforts to preserving the structure, seeking to pay for critically needed repairs to the structures iconic dome.[86]

Staub’s failed attempt to sell the Arcade on eBay in 2006 was a clear signal to observers that Arcade’s fate had entered a critical juncture. The building could not continue to as is. It was at this time that Bob Shiffler and Dave Bohardt stepped forward with a plan to redevelop the Arcade. They proposed turning the Arcade into a hotel, residential apartments, office space, and a parking space. While it would not be the Arcade of old, they argued the changes would give the Arcade the best chance of being profitable and having a lasting presence within the downtown community.[87]

Meanwhile, after failing to pay the delinquent taxes, Tony Staub tried to sell the Arcade to avoid it going into foreclosure during the first quarter of 2008. Shiffler, seeking to buy the Arcade, approached Staub, but Staub rejected the bid for being too low. Staub was asking for $2.3 million, the amount the Montgomery County Auditor’s Office appraised the building’s value at in December 2007.  On December 13, 2007 Staub once again decided to put the property up for sale on eBay, with the stipulation that the minimum bid had to cover the costs of the taxes.

The Dayton Daily News, Wednesday June 21, 2006.

Staub’s justification for doing this was that local efforts to sell the building had failed, and an online sale would be more successful since it would reach a wider audience of prospective buyers.[88] Once again, the sale failed.  The Arcade entered 2008 with an uncertain future, but that did not stop the efforts of the Friends to Save the Arcade. The group incorporated and renamed themselves the Friends of the Dayton Arcade. They decided to create a book with oral interviews from people who had experiences with the Arcade. They contacted local historian Curt Dalton, who agreed to take the lead on the project. Dalton conducted oral interviews from February to May and published the book in December. In an opinion piece in the Dayton Daily News Staub asked the public for its support, which would give him and the Arcade more time before it would be put on the auction block.[89]

The Sheriff Sale

After Staub’s eBay sale failed, the Arcade went up for Sheriff’s Sale on March 12, 2009. The minimum bid was set at $615,106, which covered the delinquent taxes, interest, and attorney fees.[90] The complex was not expected to garner anywhere close to its appraised value. The Arcade’s structural condition had deteriorated rapidly, and crime in the Arcade neighborhood had increased. Electrical wiring had been stolen, prompting electrical failures of the buildings’ sump pumps. This caused water to pool and mold to grow, leading the structure into further deterioration.[91]

 

Right: The Dayton Daily News, December 17, 2007.

The Dayton Daily News, Thursday September 6, 2010.

The Arcade was purchased at the Sheriff’s Sale by Wisconsin developers Gunther Berg and Wendell Strutz for the minimum bid. They immediately announced their plans to redevelop the Arcade by creating office, residential, restaurant, and commercial spaces. They sought to bring back the Arcade of the past. Berg and Strutz determined the buildings were largely structurally sound. After only paying the required $1,000 deposit on the day of the sale, Berg and Strutz purchased of the Arcade on May 6, 2009.

The next day, they announced plans to begin a $30 million restoration project early in 2010 with the hope of reopening the Arcade by 2013.[92]

They estimated it would take $30 million to redevelop the Arcade, part of which would be dedicated to replacing what they saw as the poor craftsmanship of the 1970s and 1980s renovations.[93] They planned to fund this restoration project by a combination of German and U.S. financial sources.[94] It appeared in the early summer of 2009 that the salvation of the Arcade was at hand. Unfortunately, the optimism did not last.

Hope Begins to Fade

Berg announced in July that work on the façade of the Arcade would begin in August and visitors to the September Urban Nights event would be able to see notable restoration done to the exterior of the structure.[95] However, August came and went with no work being done on the Arcade. During the Urban Nights event, it was announced that renovations would begin in the coming weeks and that it would be the last time the public would be able to go inside the Arcade until renovation was complete.[96] However, by December, work had yet to commence on the physical restoration of the Arcade. Berg pledged it would begin soon, but declared they wanted to get the work done right, so they were taking their time in the planning stage. They were working with Dayton officials to get historical blueprints and renderings of the building as well as an architect who specialized in restoring historical buildings. The public optimism that had exploded during the summer months began to dissipate as people feared this would yet again be another failed attempt at restoring the Arcade.[97]

The next year began with an uncertain future for the Arcade as the restoration project still had not yet begun. The first public update on the Arcade came in March of 2010, when co-founder of the Friends of the Dayton Arcade, Leon Bey, gave a presentation at Kettering’s Charles I. Lathrem Senior Center. Bey expressed his optimism. The Friends of the Dayton Arcade had weekly talks with the Arcade owners and had reviewed the extensive behind-the-scenes planning. Around the same time, the Kuhn’s Building, purchased and renovated in 2002, underwent foreclosure.[98]

As for the Arcade, the issue of property taxes came to the forefront again later in March. Once again the Arcade owners were behind in taxes, $89,000 in total. Owner Gunther Berg stated that he would pay the tax bill while trying to gain tax abatement from the city as part of the restoration project. To reassure the public, which was growing increasingly skeptical that the Arcade restoration would be successful, Berg began to pitch the idea of moving the Dayton Metro Library’s main branch into the Arcade. However, Tim Kambitsch, the Dayton Metro Library’s executive director, opposed the move because he felt it wasn’t in the best interest for the library.[99]

These images were taken by the authors on the tour of the Arcade in May of 2019. They provide a sense of dilapidated state of the complex.

In late March, it was announced by owner Gunther Berg that financing had been secured to move forward with the restoration project. There was one caveat, however: the investors wanted to ensure that the Dayton community was committed to the Arcade. Therefore, the investors asked that $5 million be raised by the community as proof of a commitment to the Arcade’s future.[100] But by mid-2011, it had become evident that despite repeated statements to the contrary, the owners had no concrete plans to move forward with the restoration nor the funds needed to maintain the property and pay the taxes.

Nonetheless, in June, the owners of the Arcade once again set a date for the renovated building to reopen. This time it was December. They announced they only needed $3.5 million more of the $40 million price tag for the restoration. They stated how they remained confident that the money would be in place by the end of the summer. Work would begin as soon as the remaining money was brought in. The owners also were working with city officials to get tax abatement for the $89,000 they owed in back property taxes.[101] A similar pattern to what had taken place before began to appear when, by late August, the taxes had not yet been paid. The tax bill had increased to $141,665.[102] If the bill was not paid, declared Montgomery County officials, another Sheriff sale would take place.[103] In reality, the city had few good solutions to the problem. If it sold the structure at auction there was little hope it would find a suitable buyer. The county had little choice but to wait. Predictably, in January of 2012, Berger declared that work would be delayed again, this time until an anchor tenant was found. The owners wanted a strong anchor tenant to ensure the viability of the restored Arcade.[104]

In November 2012, the 1908 Commercial Building was labeled by the city as a public nuisance due to the instability of the structure’s windows. The city was forced to block off the sidewalk in front of the structure to prevent pedestrians from being hit with shards of falling glass. Work on the restoration had yet to begin on the building, as the owners had not found the anchor tenant they were looking for. By then, the delinquent tax bill had grown to $272,199. Pressed by the county in the previous year, Berger had agreed in June to pay the bill off over three years through a $12,798 per month payment plan. By November, however, they had failed to pay any of their monthly installments.

Beginning to Consider Demolition

At the beginning of 2013, the owners had repeatedly lied to the community and county officials about plans and there was little confidence anything would be done by them. Some members of the Dayton community began to question if the city should order the demolition of the structures, as they lacked confidence that restoration would ever be successful.[105] The Arcade was again suggested as a potential home for the Dayton Metro Library in April 2013. This was despite the fact that the owners had not started restoration work and had fallen behind in taxes, owing $309,132.[106] Understandably, on April 17, 2013, the Dayton Metro Library board refused to accept or reject the Arcade as a future home for the library. They wanted a feasibility study and a condition assessment completed before making a final decision.[107] However, on May 1, 2013, it was announced that the library would not consider moving to the Arcade because of the building’s deteriorating condition, safety concerns, and limited parking. At its current location the library paid no rent–why would they abandon that arrangement when the Arcade would not be viable in the long run, potentially costing them a home in the future.[108]

The complex’s deteriorating prospects were symbolized by the city’s decision on April 24, 2013 to board up windows that were dropping glass onto the sidewalk.[109] Soon after, city officials ended public tours of the Arcade due to safety concerns. They cited the prevalence of black mold, standing pools of water, a lack of sprinklers, smoke alarms, and electrical services, as well as fallen ceiling debris.[110] Although the owners had once again negotiated a payment plan with the Montgomery County Treasurer’s Office to pay $336,209 in delinquent taxes, only the first installment of $2,673.17 was paid.[111] Frustrated Montgomery County Treasurer Carolyn Rice announced that the complex would go up for a tax lien sale if the owners did not pay off the delinquent taxes by November 22, 2013. [112]

The Dayton Daily News, Wednesday August 13, 2014.

The Dayton Daily News, Saturday January 4, 2014.

With no hope, the last tenant of the complex, the Arcade Seafoods shop, closed its doors permanently on January 4, 2014. The business had been one of the last to leave the Arcade when in closed in the 1990s.[113]

Improving Economy

The U.S. economy began to recovery from the Great Recession in June of 2009. In late 2008, the Troubled Asset Relief Program (TARP) was signed by George W. Bush, allowing the government to step in and purchase toxic assets and thereby strengthen its financial markets. Soon after taking office in January of 2009, President Barak Obama signed the American Recovery and Reinvestment Act (ARRA) that aimed to save jobs made vulnerable by the downturn and speed recovery by creating temporary relief programs, as well as invest in infrastructure. Gross domestic product, which had been contracting sharply before the passage of these measures, began to recover. Since mid-2009 the economy has averaged 2.2% annual growth.[114]

The effects of the recovery in Dayton, however, were not as beneficial as elsewhere. Household income in Montgomery County was $51,285 in 2008 but only $47,755 in 2017. The long-term decline in high-wage manufacturing jobs accelerated after 2008. According to Hannah Halbert, the project director for Policy Matters Ohio, the numbers reveal that “Top-line economic indicators [of national economic growth] like job growth and the unemployment rate mask deep inequality that intensifies along racial lines.”[115]

Figure 4: National GDP Growth by Quarter

Figure 5: National Unemployment Rate Since 1995

Graphs taken from the “Chart Book: The Legacy of the Great Recession,” Center on Budget and Policy Priorities, June 6, 2019.

However, there have been multiple signs that downtown Dayton began to recover in 2008. One positive sign was that the poverty rate in Montgomery County dropped over that period and the wider Dayton Metro Area had done somewhat better with increasing household incomes. Unemployment since 2014 declined considerably in part because several large investments had been made in the downtown area, including the building of downtown’s first new office tower in more than a decade. During this period, the University of Dayton began purchasing and repurposing parts of the older NCR properties. In addition, there has been significant public investment in transportation projects. In 2010, the “Greater Downtown Dayton Plan” was announced. This redevelopment initiative sought to leverage downtown’s heritage in order to make it a creative and entertainment hub. [http://plan.downtown-dayton.org] [http://www.downtowndayton.org] The initiative had brought in over $200 million in downtown reinvestment. This was followed in 2014 with the creation of the Dayton Region Manufacturing Task Force by Dayton Mayor Nan Whaley. Part of this task force’s mandate was to find ways to stimulate the growth of technical jobs within the city. According to the Mayor’s office, between 2010 and 2018 the total investment in revitalization of Dayton’s downtown exceed one billion dollars, with nearly half a billion more underway.[116]

Figure 6: Dollar Investment in Downtown

Figure 7: Locations under Redevelopment in Downtown

Graphs taken from the “Downtown Dayton.” http://www.downtowndayton.org

Hope Returns

It is within the wider context of the nation’s and City of Dayton’s recovery that the recent developments with the Arcade must be seen. In the years after the Great Recession, the Arcade’s future had become football in local politics. With the complex sitting empty and becoming a public nuisance, something had to be done. On August 13, 2014, Mayor Nan Whaley announced the creation of a task force to evaluate the Arcade complex that would determine if the Arcade should be demolished or redeveloped. Mayor Whaley’s goal was to preserve at least some of the complex’s historical ties to the downtown community while at the same time avoiding a costly financial commitment from the city. [117] On December 24, 2014, it was announced that the task force and city officials were conducting a feasibility study for the Arcade. The future of the Arcade would rest on its physical condition, rehabilitation costs, and demolition costs.[118]

While many signs pointed towards the building’s eventual demolition, experts hired by the task force reported it would cost a minimum of $8 and as much as $12 million to remove all of the buildings. None of the stack holders appeared eager to write the check. The reality, of course, was that few actually wanted it removed anyway. The “cost” to the city was more than just the money. Centrally located in the heart of downtown, the complex had long served as a nexus for city foot traffic. The empty lots, of which there were too many in Dayton already, would become another sign of the city’s decline. However, it was hard to conceive of how this multi-pronged city-wide revitalization plan would succeed without a solution to the Arcade complex problem.

In sum, the task force determined the city had no easy solution. However, the realities of what demolition meant had the effect of reinvigorating serious discussion about what could practically be done to save the Arcade. Still, city financial resources were already stretched thin by other revitalization efforts, and the Arcade had understandably remained out of the plans because of its massive cost. And yet, demolition would leave a massive hole in the city and create its own problems.

The Way Forward

Thanks in part to overarching improvement in the nation’s economy, the Arcade Task Force considered redevelopment plans for the Arcade to have realistic possibilities for success. On June 4, 2015, the task force released its findings and recommendations. They announced that the Arcade could be saved and transformed into a viable apartment complex and business hub. Since the Arcade is a historic structure, it would be possible to acquire historic tax credits as part of the adaptive reuse of the complex.[119] The task force also recommended that the city pay nearly $2 million to keep the Arcade “warm and dry” because future freezing and thawing would do great damage to the structure.[120]

To accomplish this, a $700,000 Arcade repair plan was announced on September 22, 2015 by city officials. Under the plan, the city would contribute $450,000 toward the repairs, while $250,000 would come from an unnamed developer. These repairs would maintain the structure of the Arcade for three to five years, allowing a developer to create a master plan for restoring the Arcade.[121]

The Dayton Daily News, Thursday July 9, 2015.

On January 29, 2016, it was announced that the Arcade’s restoration project would be done by a joint partnership between Cross Street Partnership in Baltimore, Maryland, and the Miller-Valentine Group in Dayton. The partnership signed a contract, stating their intent to purchase the entire Arcade complex by early 2017, provided financing was available. The first phase of the restoration project would cost between $12 and $15 million and create 60 housing units and community space for local artists. To help finance the project, the developers planned to seek low-income housing tax credits and historic preservation tax credits.[122]

The first test for the developers in this effort to restore the Arcade came in the form of low-income tax credits. The developers sought $1 million in tax credits per annum for a period of ten years.[123] On June 15, 2016, state officials with the Ohio Housing Finance Agency awarded the Arcade restoration project the $10 million the developers were seeking over ten years, as well as pledging to award another $10 million the following year for a total of $20 million in low income tax credits for the Arcade’s restoration.[124]

The project hit a snag when it was announced by Montgomery County officials that the unpaid tax bill of $529,400 would have to be paid as a condition of the sale.[125]

However, on September 22, 2015, the Montgomery County Land Bank agreed to take ownership of the buildings in lieu of foreclosing. As a result, the tax bill was eliminated, and the land bank agreed to sell or lease the properties to the developers so that the restoration project could move forward.[126]  After getting over the tax bill hurdle, the Arcade’s developers applied for $5 million in state historic preservation tax credits in October 2016.[127] However, on December 21, 2016, it was announced that the Arcade was denied the highly competitive historic preservation tax credits. Instead, the credits went to the Centre City Building in Dayton for its redevelopment project. [128] After intense lobbying by local officials, the state reversed course and awarded the Arcade the tax credits during the next round in June 2017.[129] The state followed up the initial award of $5 million in June with an additional $4 million award in December, making the award for the Arcade project the biggest in the Dayton Metropolitan Area’s history. [130]

During this same period that the Arcade was receiving greater state tax credits, the University of Dayton announced that they would serve as an anchor tenant in the restored Arcade. During his inauguration as UD’s 19th president, President Eric F. Spina announced plans to place faculty, staff, and students in the restored Arcade. UD would also create an “ideation center” within the Arcade to focus on entrepreneurship and economic growth. President Spina described the space UD would occupy at the Arcade by saying, ‘“It will be a place where students can gain confidence that they can indeed work in community to change the world.”’[131]

The developers acquired eight of the nine buildings that make up the Arcade complex in November 2018, with the ninth building under contract. With ownership of the buildings, the developers successfully applied for permits to begin work on the complex.[132] Then, on December 14, 2018 it was announced that demolition work had begun inside the Arcade complex, allowing for the restoration project to move forward. This was made possible through a $10 million loan from the city of Dayton to the developers while they finalized their financing.[133] The developers hit a milestone in January 2019, when they acquired the ninth building, the Kuhns Building for $1.28 million.[134]

Students from the class touring the ruins of the Arcade before it began to be remodeled.

Artists rendering of what the remodeled Rotunda will look like when complete.

Endnotes

[1] Lisa Powell, “The Arcade: Dayton’s Crowning Jewel.” The Dayton Daily News, July 13, 2016, pgs. SB1-SB2.

[2] William Hershey, “Arcade Named Historic Site.” The Dayton Daily News, June 28, 1975, pg. 8.

[3] Greg Moore and Andrew Alexander, “Arcade plan wins $3 million grant.” Journal Herald, 4 Jan. 1979, pg. 1, 5.

[4] Jay Smith, “Options to Buy Arcade Key Parcels Acquired.” The Dayton Daily News, November 4, 1975, pg. 17B.

[5] William Hershey, “Arcade Named Historic Site.” The Dayton Daily News, June 28, 1975, pg. 8.

[6] “A closer look at the past decade of Arcade development.” The Dayton Daily News, April 6, 1986, pg. 10A.

[7] Darwin Sator, “Tour in Harford: Execs see example of Arcade’s promise.” The Dayton Daily News, December 17, 1976, pg. 30.

[8] Moore and Alexander, “Arcade Plan.”

[9] David Dykes, “Officials list 26 businesses in the new Arcade.” The Dayton Daily News, April 5, 1979, pg. 1, 13.

[10] Moore and Alexander, “Arcade Plan.”

[11] “A closer look at the past decade of Arcade development.” The Dayton Daily News, April 6, 1986, pg. 10A.

[12] Wes Hills, “Arcade gets grant,” The Dayton Daily News, January 4, 1979, Main Edition, pg. 12.

[13]“Grant assures Arcade will join downtown revival,” The Dayton Daily News, January 5, 1979, Main Edition, pg. 10.

[14] Ibid.

[15] Wes Hills, “Bidders give city go-ahead on Arcade job,” The Dayton Daily News, February 14, 1979, Main Edition, pg. 31.

[16] _____,”Arcade spokesman: Downtown to sparkle,” The Dayton Daily News, January 4, 1979, Main Edition, pg. 1.

[17] James C. Bohman, “Dayton Inn, Arcade Remodeling to Sink or Swing Together,” The Dayton Daily News, December 27, 1978.

[18] “Silhouette on steel,” The Dayton Daily News, March 4, 1979, Main Edition, pg. 15.

[19] Bette Owens, Black contractors’ appeals fail; Arcade tax abatement gets OK,” The Dayton Daily News, March 2, 1978, pg. 19.

[20] James C. Bohman, “Redevelopment of Arcade Leaves status of the present shops p in the air,” The Dayton Daily News, September 16, 1977, pg. 18.

[21] Dale Huffman, “The Blue Lounge has a Final Toast,” The Dayton Daily News, December 19, 1977.

[22] _____, “The Blue Lounge.”

[23] _____, “Arcade veterans glad, sad at renewal,” The Dayton Daily News, May 16, 1976, pg. 1-C.

[24] Wes Hills, “Rent won’t be cheap in the renovated Arcade,” The Dayton Daily News, March 26, 1978, pg. 26. Mike Seemuth, “Arcade lost $1.2 million in ’82,” Dayton Daily News, July 22, 1983, pg. 2.

[25] “Arcade Square. Gem City’s newest (and handiest) office.” The Journal Herald, Advertising Supplement, October 8, 1980, pg. 7. Places—Dayton Historic Sites—Box 14—Folder 8, Archives and Special Collections, Paul Laurence Dunbar Library, Wright State University. 

[26] “Put on your dancing shoes!” Arcade Square Magazine, Advertising Supplement, October 5, 1983, pg. 1. Places—Dayton—Historic Sites 1, 1978-1991—Box 14—Folder 1, Archives and Special Collections, Paul Laurence Dunbar Library, Wright State University.

[27] “The memories still remain in the old Dayton Arcade,” Arcade Square Magazine, Advertising Supplement, October 5, 1983, pg. 2. Places—Dayton Historic Sites 1, 1978-1991—Box 14—Folder 1, Archives and Special Collections, Paul Laurence Dunbar Library, Wright State University.

[28] Ibid.

[29] Steven Avdakov, Deborah Griffin, Kathy Mast Kane, and Nathalie Wright, Ohio Modern: Preserving our Recent Past: Dayton and Surrounding Area Survey Report (Columbus, OH: Ohio Historic Preservation Office of the Ohio Historical Society, 2010), 69.

[30] “A closer look at the past decade of Arcade development,” The Dayton Daily News, April 6, 1986, Main Edition, pg. 10.

[31] Mike Seemuth, “Lenders seek 1st step to Arcade sale,” Dayton Daily News, June 28, 1984, pg. 1.

[32] “A closer look at the past decade of Arcade development,” Dayton Daily News, April 6, 1986.

[33] Ibid.

[34] Dave Daley, “New Arcade food court to open in August,” Dayton Daily News, June 23, 1986, Main Edition, pg. 3.

[35] “Holiday Festival,” Dayton Daily News, December 1, 1985, Main Edition, pg. 44.

[36] “Holiday Festival,” Dayton Daily News, December 2, 1986, Main Edition, pg. 22.

[37] Derek Ali, “Vendors prepare for move,” Journal Herald, August 6, 1986. Places—Dayton Historic Sites—Box 14—Folder 8, Archives and Special Collections, Paul Laurence Dunbar Library, Wright State University.

[38] Dave Daley, “New Arcade food court to open in August,” Dayton Daily News, June 23, 1986, Main Edition, pg. 3.

[39] Mizell Stewart III, “Dixon hopes to regain city control of rotunda, walkways in Arcade,” Dayton Daily News, October 3, 1991, Main Edition, pg. 35.

[40] Rosemary Harty, “Developers get loan to start Arcade Centre,” Dayton Daily News, October 16, 1987, Main Edition, pg. 3.

[41] “A closer look at the past decade of Arcade development,” Dayton Daily News, April 6, 1986, Main Edition, pg. 10.

[42] Doug McInnis, “Developer: Arcade work begins next week,” Dayton Daily News, January 16, 1988, Main Edition, pg. 29.

[43] Rosemary Harty, “City scratches second Arcade tower,” Dayton Daily News, August 30, 1989, Other Editions, pg. 3.

[44] “Reagan asks spirit of shared sacrifice,” Dayton Daily News, January 15, 1982, Main Edition, pg. 5.

[45] “Proposed budget could cost Ohio more than $500 million,” Dayton Daily News, February 6, 1986, Other Editions, pg. 6.

[46] Benjamin Kline, “Arcade Centre to open with show of charity,” Dayton Daily News, February 3, 1990, Main Edition, pg. 31.

[47] Mizell Stewart III, “Arcade Centre, beset by vacancies, lets in social events,” Dayton Daily News, July 14, 1990, Main Edition, pg. 3.

[48] John Gower. Interview by Dr. Todd Uhlman, April 27, 2019. Transcript, Dayton Arcade History Project, http://www.arcade.daytonhistoryproject.org

[49] Dale Huffman, “As if retail news isn’t bad enough, Dayton’s Arcade Square is closing,” Dayton Daily News, December 24, 1990, Main Edition, pg. 3.

[50] John Gower, Interview by Dr. Todd Uhlman, April 27, 2019. Transcript, Dayton Arcade History Project, http://www.arcade.daytonhistoryproject.org.

[51] Dale Huffman, “As if retail news isn’t bad enough, Dayton’s Arcade Square is closing,” Dayton Daily News, December 24, 1990, Main Edition, pg. 3.

[52] Mizell Stewart III, “Tenant joins suit to keep Arcade open,” Dayton Daily News, December 28, 1990, Main Edition, pg. 13. Jim DeBrosse, “Danis recedes, resettles,” Dayton Daily News, June 8, 2003, pg. A1-A6.

[53] Katherine Ullmer, “The Last Days of the Arcade,” Dayton Daily News, March 30, 1991, Main Edition, pg. 23. Jim DeBrosse, “Danis recedes, resettles,” Dayton Daily News, June 8, 2003, pg. A1-A6.

[54] Mizell Stewart III, “Dixon hopes to regain city control of rotunda, walkways in Arcade,” Dayton Daily News, October 3, 1991, Main Edition, pg. 35.

[55] Mizell Stewart III, “Dayton says its first priority is to have Arcade reopened,” Dayton Daily News, January 22, 1992, Main Edition, pg. 1.

[56] “Arcade Square to reopen for holiday shopping, activities,” Dayton Daily News, November 12, 1992, Main Edition, pg. 18.

[57] Derek Ali, “Arcade opening brings hope,” Dayton Daily News, November 9, 1992, Main Edition, pg. 9. Debra Jasper, “City sees new plan for Arcade,” Dayton Daily News, November 12, 1992, pg. 1B.

[58] Julia Helgason, “All that glitters…is at the Arcade,” Dayton Daily News, November 25, 1993, Main Edition, pg. 4. Debra Jasper, “Spending less for Christmas,” Dayton Daily News, September 15, 1994, pg. 1B.

[59] Holmes, David. “Community must work together for a strong downtown,” Dayton Daily News, Aprily 10, 1995.

[60] Mendell, David. “Proposal for arcade museum dies for lack of public, private support,” Dayton Daily News, June 23, 1995.

[61] Jasper, Debra. “Donor plants $250,000 seed for art,” Dayton Daily News October 19, 1994.

[62] Tokarsky, Frank. “We’re Losing Our Memory of a Community Gem.” Dayton Daily News, March 19, 1999.

[63] Bebbington, Jim. “City: Shift Arcade Proposal,” Dayton Daily News, August 22, 1999. McCarty, Mary. “Arcade awaiting champion.” Dayton Daily News, July 8, 2001.

[64] Mendell, David. “Danis his reputation may be forever stained by his handling of Arcade Square,” Dayton Daily News, June 8, 2003.

[65] Bebbington, Jim. “Dayton eyes $80 million in rehab project,” Dayton Daily News, October 2, 2003.

[66] Mendell, David. “Danis his reputation may be forever stained by his handling of Arcade Square,” Dayton Daily News, June 8, 2003.

[67] Biscof, Laura. “Arcade Proposals Drawing Interest,” Dayton Daily News, March 06, 2001.

[68] Bebbington, Jim. “Arcade: interest stirs anew for vacant Dayton landmark,” Dayton Daily News, February 14, 2004. Shannon Joyce Neal, “Oakwood couple buys Landmark Building,” Dayton Dailey News, October 26, 2002.

[69] Bruning, John. “Rhine Mclin: Dayton’s new leaders talks about her job and goals,” Dayton Daily News,

[70] Belcher, Ellen. “Arcade Worth Treasuring.” Dayton Daily News, April 11, 2004.

[71] Huffman, Dale. “Arcade: Owner hopes to bring historic center back to life,” Dayton Daily News, April 11, 2004.

[72] Giovis, Jaclym. “Arcade owner calling for bingo night,” Dayton Daily News, May 24, 2005.

[73] Brooks, David. “Faith needed on Arcade complex,” Dayton Daily News, December 22, 2004.

[74] Smith, Huiste Smith. “$19M Plan Proposed for Arcade,” Dayton Daily News, December 7, 2007.

[75] Neal, Shannon and Jim Bebbington. Arcade: Owner Frustrated by Redevelopment of Downtown Arcade Dayton Daily News, January 29, 2005.

[76] Smith, Huist. Joanne. “Owner trying to sell before property goes to auction.” Dayton Daily News, June 21, 2006.

[77] Tami Luhby, “Americans’ wealth drops $1.3 trillion: Fed report shows a decline of home values and the stock market cut the nation’s wealth to $50.4 trillion”, CNN Money, June 11, 2009. Accessed June 12, 2019.

[78] Michel B. Sauter, “10 years later, these 28 U.S. cities never recovered from the Great Recession,” USA Today, October 12, 2018. Accessed June 12, 2019.

[79] Kaitlin Schroeder, “Local Incomes Still below Recession Levels, Census Data Show,” Dayton Daily News, Sept 15, 2018, https://www.daytondailynews.com/business/local-incomes-still-below-recession-levels-census-shows/q4yyllAT4HWodO9lcugGlJ/.  Accessed June 12, 2019.

[80] Dale Huffman, “Hope is still alive for Downtown Arcade building,” Dayton Daily News, June 7, 2007, 6.

[81] Kayla Dunkman, “Locals look to save the downtown Arcade,” Dayton Daily News, June 14, 2007, 9.

[82]Evan Milward, “Group hopes to spare Arcade from demolition,” Dayton Daily News, July 27, 2007, 4.

[83] Terry Morris, “Arcade opens for Urban Nights,” Dayton Daily News, September 14, 2007, 4.

[84] Ryan Justin Fox, “Arcade impresses Urban Nights visitors,” Dayton Daily News, September 15, 2007, 1.

[85] Dale Huffman, “Arcade rescue efforts continue,” Dayton Daily News, October 2, 2007, 5.

[86] Joanne Huist Smith, “Arcade’s friends shift focus from taxes to preservation,” Dayton Daily News, November 4, 2007, 12.

[87] _____, “A new plan for Arcade promotes optimism,” Dayton Daily News, November 4, 2007, 1.

[88] _____, “Arcade owner says latest bid too low,” Dayton Daily News, December 12, 2007, 4.

[89] _____, “Folks with downtown Arcade memories sought for project,” Dayton Daily News, January 25, 2008, 4. Tony Staub, “Keep the Arcade off the Action Block,” Dayton Daily News, December 17, 2007.

[90] _____, “Historic Arcade can by yours for a mere $615,106,” Dayton Daily News, February 18, 2009, 5.

[91] _____, “Historic Arcade falls prey to time, thieves,” Dayton Daily News, March 12, 2009, 4.

[92] _____, “Arcade’s Buyers have a May 8 deadline,” Dayton Daily News, April 21, 2009, 2.  Joanne Huist Smith, “Owners say Arcade may reopen in 2013,” Dayton Daily News, May 7, 2009, 1.

[93] _____, “Restoration isn’t new to buyer,” Dayton Daily News, March 13, 2009, 12.

[94] _____, “New owners plan to restore Arcade,” Dayton Daily News, March 13, 2009,1.

[95] _____, “Arcade rehabilitation set to begin,” Dayton Daily News, July 7, 2009, 3.

[96] Margo Rutledge Kissell, “Get a peek into Arcade,” Dayton Daily News, September 8, 2009, 1.

[97] Joanne Huist Smith, “Arcade repairs will take time,” Dayton Daily News, December 4, 2009, 4.

[98] _____, “What will happen with the Arcade?,” Dayton Daily News, March 12, 2010, 4. Lucas sullivan, “Kuhns owners says he will pay what he owes,” Dayton Daily News, May 20, 2010.

[99] _____, “Arcade $89K behind on taxes,” Dayton Daily News, March 13, 2010, 1.

[100] _____, “New Arcade owner wants $5M from the community,” Dayton Daily News, March 18, 2010, 1.

[101] Lucas Sullivan, “Owner says target date for Arcade is late 2012,” Dayton Daily News, June 6, 2010, 4.

[102] Joanne Huist Smith, “Delinquent taxes a priority, Dayton Arcade owners say,” Dayton Daily News, August 24, 2010 3.

[103] _____, “Montgomery County seeks $9.1M in unpaid taxes with sale of debts,” Dayton Daily News, May 6, 2011,7.

[104] _____, “Work on Arcade delayed until anchor tenant found,” Dayton Daily News, January 15, 2012, 17.

[105] _____, “Nuisance’ Arcade costing taxpayers,” Dayton Daily News, November 21, 2012, 1,7.

[106] _____, “Library, Arcade talks continue,” Dayton Daily News, April 18, 2013, 11,18.

[107] Ibid., 16.

[108] Joanne Huist Smith, “Library won’t consider Arcade move,” Dayton Daily News, May 1, 2013, 12.

[109] _____, “Dayton Arcade windows being boarded up,” Dayton Daily News, April 24, 2013, 11.

[110] _____, “Safety concerns end public tours of Arcade,” Dayton Daily News, April 27, 2013,15.

[111] _____, “Arcade’s owner makes tax payment,” Dayton Daily News, June 14, 2013, 13.

[112] Jeremy P. Kelley and Joanne Huist Smith, “Downtown Arcade in jeopardy again,” Dayton Daily News, October 29, 2013, 1,4.

[113] Mark Fisher, “Arcade Seafood ends run,” Dayton Daily News, January 4, 2014, 5.

[114] “Chart Book: The Legacy of the Great Recession,” Center on Budget and Policy Priorities, June 6, 2019. Accessed on June 14, 2019.

[115] Kaitlin Schroeder, “Local incomes still below recession levels, census shows,” Dayton Daily News, September 15, 2018. Accessed on June 14, 2019.

[116] “The Greater Downtown Plan: 2018 Progress,” http://www.downtowndayton.org/wp-content/uploads/2019/04/GDDP2018Update.pdf. Accessed June 14, 2019.

[117] Cornelius Frolik, “Task force to review Arcade’s potential,” Dayton Daily News, August 13, 2014,12.

[118] _____, “City seeks Arcade feasibility study,” Dayton Daily News, December 24, 2014, 9, 16.

[119] Cornelius Frolik and Thomas Gnau, “Study: Complex can be revived,” Dayton Daily News, June 4, 2015, 1,9.

[120] Cornelius Frolik, “Dayton urged to pay to protect the Arcade,” Dayton Daily News, July 9, 2015, 1, 8.

[121] _____, “Arcade plan: $700,000 for repairs,” Dayton Daily News, September 22, 2015, 9, 16.

[122]  _____, “Arcade redo expected to take years,” Dayton Daily News, January 29, 2016, 13, 22.

[123] _____, “Tax deal critical test for Arcade,” Dayton Daily News, February 29, 2016,1,5.

[124] _____, “Dayton Arcade gets $20 million in state help,” Dayton Daily News, June 16, 2016, 1, 7.

[125] _____, “Tax bill among hurdles for Arcade redevelopment,” Dayton Daily News, June 25, 2016, 2, 7.

[126] _____, “Arcade’s $500K tax bill eliminated,” Dayton Daily News, September 23, 2016, 1,12.

[127] _____, “Arcade requests $5M in support,” Dayton Daily News, October 8, 2016, 11, 18.

[128] _____, “Downtown project wins tax incentives,” Dayton Daily News, December 21, 2016, 1.

[129]  _____, “Arcade to be site of state tax credit awards,” Dayton Daily News, June 27, 2017,1.

[130]  _____, “$95M Arcade project wins key tax credit,” Dayton Daily News, December 20, 2017, 1, 5.

[131]  Cornelius Frolik and Jeremy P. Kelley, “UD may anchor Downtown Arcade,” Dayton Daily News, April 5, 2017, 1, 10.

[132]  _____, “Arcade developer acquires buildings,” Dayton Daily News, November 15, 2018,17, 24.

[133] _____, “Demolition work finally gets underway in Arcade,” Dayton Daily News, December 14, 2018, 13, 22.

[134] Thomas Gnau, “Developer hits milestone with ninth Arcade building,” Dayton Daily News, January 9, 2019, 5.

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_____, “Vendors prepare for move.” Journal Herald, August 6, 1986.

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_____. “Dayton eyes $80 million in rehab project,” Dayton Daily News, October 2, 2003.

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_____. “Arcade developer acquires buildings.” Dayton Daily News, November 15, 2018.

_____. “Arcade plan: $700,000 for repairs.” Dayton Daily News, September 22, 2015.

_____. “Arcade redo expected to take years.” Dayton Daily News, January 29, 2016.

_____. “Arcade requests $5M in support.” Dayton Daily News, October 8, 2016.

_____. “Arcade to be site of state tax credit awards.” Dayton Daily News, June 27, 2017.

_____. “Arcade’s $500K tax bill eliminated.” Dayton Daily News, September 23, 2016.

_____. “City seeks Arcade feasibility study.” Dayton Daily News, December 24, 2014.

_____. “Dayton Arcade gets $20 million in state help.” Dayton Daily News, June 16, 2016.

_____. “Dayton urged to pay to protect the Arcade.” Dayton Daily News, July 9, 2015.

_____. “Demolition work finally gets underway in Arcade.” Dayton Daily News, December 14, 2018.

_____. “Downtown project wins tax incentives.” Dayton Daily News, December 21, 2016.

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_____. “Tax bill among hurdles for Arcade redevelopment.” Dayton Daily News, June 25, 2016.

_____. “Tax deal critical test for Arcade.” Dayton Daily News, February 29, 2016.

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_____. “Arcade spokesman: Downtown to sparkle.” Dayton Daily News, January 4, 1979.

_____. “Bidders give city go-ahead on Arcade job.” Dayton Daily News, February 14, 1979.

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_____. “As if retail news isn’t bad enough, Dayton’s Arcade Square is closing.” Dayton Daily News, December 24, 1990.

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_____. “Arcade: Owner hopes to bring historic center back to life,” Dayton Daily News, April 11, 2004.

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Milward, Evan. “Group hopes to spare Arcade from demolition.” Dayton Daily News, July 27, 2007.

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            October 5, 1983, pg. 1. Places—Dayton—Historic Sites 1, 1978-1991—Box 14—Folder

            1, Archives and Special Collections, Paul Laurence Dunbar Library, Wright State

            University.

“Reagan asks spirit of shared sacrifice.” Dayton Daily News, January 15, 1982.   

“Silhouette on steel.” Dayton Daily News, March 4, 1979.

Smith, Joanne Huist. “$19M Plan Proposed for Arcade,” Dayton Daily News, December 7, 2007.

_____. “A new plan for Arcade promotes optimism.” Dayton Daily News, November 4, 2007.

_____.. “Arcade $89K behind on taxes.” Dayton Daily News, March 13, 2010.

_____. “Arcade pushed as home for library.” Dayton Daily News, April 17, 2013. 

_____. “Arcade rehabilitation set to begin.” Dayton Daily News, July 7, 2009.

_____. “Arcade repairs will take time.” Dayton Daily News, December 4, 2009.

_____. “Arcade’s Buyers have a May 8 deadline.” Dayton Daily News, April 21, 2009.

_____. “Arcade’s friends shift focus from taxes to preservation.” Dayton Daily News, November 4, 2007.

_____. “Arcade owner says latest bid too low.” Dayton Daily News, December 12, 2007.

_____. “Arcade’s owner makes tax payment.” Dayton Daily News, June 14, 2013.

_____. “Dayton Arcade windows being boarded up.” Dayton Daily News, April 24, 2013.

_____. “Delinquent taxes a priority, Dayton Arcade owners say.” Dayton Daily News, August 24, 2010.

_____. “Folks with downtown Arcade memories sought for project.” Dayton Daily News, January 25, 2008.

_____. “Historic Arcade can by yours for a mere $615,106.” Dayton Daily News, February 18, 2009.

_____. “Historic Arcade falls prey to time, thieves.” Dayton Daily News, March 12, 2009.

_____. “Library, Arcade talks continue.” Dayton Daily News, April 18, 2013.

_____. “Library won’t consider Arcade move.” Dayton Daily News, May 1, 2013.

_____. “Montgomery County seeks $9.1M in unpaid taxes with sale of debts.”  Dayton Daily News, May 6, 2011.

_____. “New Arcade owner wants $5M from the community.” Dayton Daily News, March 18, 2010.

_____. “New owners plan to restore Arcade.” Dayton Daily News, March 13, 2009.

_____. “‘Nuisance’ Arcade costing taxpayers.” Dayton Daily News, November 21, 2012.

_____. “Owners say Arcade may reopen in 2013.” Dayton Daily News, May 7, 2009.

_____. “Owner trying to sell before property goes to auction.” Dayton Daily News, June 21, 2006.

_____. “Restoration isn’t new to buyer.” Dayton Daily News, March 13, 2009.

_____. “Safety concerns end public tours of Arcade.” Dayton Daily News, April 27, 2013.

_____. “What will happen with the Arcade?” Dayton Daily News, March 12, 2010.

_____. “Work on Arcade delayed until anchor tenant found.” Dayton Daily News, January 15, 2012.

Stewart III, Mizell. “Arcade Centre, beset by vacancies, lets in social events,” Dayton Daily News, July 14, 1990.

_____. “Dayton says its first priority is to have Arcade reopened.” Dayton Daily News, January 22, 1992.

_____. “Dixon hopes to regain city control of rotunda, walkways in Arcade.” Dayton Daily News, October 3, 1991.

_____. “Tenant joins suit to keep Arcade open.” Dayton Daily News, December 28, 1990.

Sullivan, Lucas. “Owner says target date for Arcade is late 2012.” Dayton Daily News, June 6, 2010.

“The memories still remain in the old Dayton Arcade,” Arcade Square Magazine, Advertising

            Supplement, October 5, 1983, pg. 2. Places—Dayton Historic Sites 1, 1978-1991—Box

            14—Folder 1, Archives and Special Collections, Paul Laurence Dunbar Library, Wright

            State University.

Tokarsky, Frank. “We’re Losing Our Memory of a Community Gem.” Dayton Daily News, March 19, 1999.

Ullmer, Katherine. “The Last Days of the Arcade.” Dayton Daily News, March 30, 1991.