Cincinnati’s in and Northeast Ohio is out when it comes to the first award of a huge historic preservation tax credit by the state Ohio to aid a catalytic economic development project.

The Ohio Development Services Agency awarded the credit allocation for $25 million in Ohio Historic Preservation Tax Credits for the rehabilitation of Cincinnati Music Hall. Constructed in 1878, the National Historic Landmark structure will undergo a $127.5 million rehabilitation led by the Music Hall Revitalization Corp. and Cincinnati Center City Development Corp. Left in the dust are three Northeast Ohio projects that were vying for the same award: the conversion of the May Co. building to apartments and the Union Trust Co. — formerly the Huntington Bank Building — to a mixed-use project; and the former Goodyear headquarters project in Akron. A clearly frustrated Bob Rains, a partner with developers John Carney and David Goldberg in the proposed $130 million May Co. project said, “Cleveland got screwed.” Rains said he is intimately familiar with the Music Hall proposal and his group’s plan for May Co. was superior. “Our project is capable of starting construction immediately,” Rains said. “Theirs is not. Our drawings are done. Theirs are not. This project will have a multimillion-dollar impact on the surrounding area. Theirs does not. Our project would be done by the Republican National Convention in 2016. I doubt if theirs will have started. Not landing the award leaves the May Co. project financing plan with a $25 million hole that Rains said he does not know how to fill. “I’m done,” he said, although he acknowledged his team will meet later in the day to see if there is any other way to proceed. “Government is not process. It’s politics,” Rains said of the award going to Republican territory in Cincinnati while Gov. John Kasich is a Republican.

Lynn Toler, policy and communications chief for the state development director, responded by email to Rains’s comments by emphasizing the objectivity of the decision.

“The projects were scored on a series of pre-determined and objective criteria,” Toler said. “The project with the highest score received the award. It is understandable tha those who did not receive the award will be disappointed.”

Toler also teased the announcement coming later in the day on projects receiving credits of $5 million or less.

“This afternoon, the City of Cleveland will receive 7 historic preservation awards, two of which will receive awards of $5 million,” Toler said. Gostomski said the state will not identify which projects will win remaining awards until 1:30 p.m.

Toler also noted Cleveland has fared well over the years in the competition for state preservation tax credits.

“It is important to note: 60 Cleveland projects have received more than $200 million in the past and more projects from Cleveland will be awarded tax credits this afternoon.” Toler said.

David Goodman, director of the Ohio Development Services Agency, said in the state’s news release that a restored Music Hall in Cincinnati "will bring more people to Over-the-Rhine and Downtown, encouraging further development and investment. Using the hall for more performances and events will result in new demand for restaurants, housing and other services in the neighborhood.”

In its announcement of the award, the state noted the project would aid surrounding neighborhoods.

“This area includes portions of Over-the-Rhine, the West End and Downtown Cincinnati that have not seen significant revitalization,” the news release stated.

Cincinnati Music Hall has not been renovated in nearly 50 years and needs significant repairs. Substantial financial support has been raised from private corporations, foundations, individuals and the city of Cincinnati to finance the balance of the project costs.

The state initiated the program to provide more assistance to bigger-ticket adaptive reuse projects than the typical awards, which are capped at $5 million for each project.