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Business News

Carabello Coffee Expansion And Slow Bar Set to Open This Summer

What began with a $300 home coffee roaster and an eight-pound bag of coffee has become a mainstay of the local coffee scene. Now Carabello Coffee is set to increase its presence in Newport even further with its expansion into an adjoining storefront on Monmouth Street.

The expansion, nearly two years in the making, will open later this summer and include a new-to-market “slow bar” concept, called Analog, and a larger roasting operation. Aside from the updated offerings, the owners say the new arrangement will also free up space for 16 additional tables in the café.

One of the reasons Carabello Coffee has become well-known is due to its unique philanthropic business model in which a portion of the profits go to support causes in third world coffee-growing communities – including a signature relationship with an orphanage in Nicaragua. According to Justin and Emily Carabello, owners of the café, their mission of serving “coffee and compassion in tandem” has helped the business double in size every year since it opened.

The couple says that they started roasting coffee as a hobby in their garage back in 2009; then moved operations to a 10-foot by 10-foot space at Velocity Bike & Bean in Florence in 2011. By September 2013, the couple quit their daytime jobs to work on the venture full-time, relocated to their current 1,200-square-foot space at 107 E. Ninth Street, and broadened the original wholesale business to include a retail café.

After only a year at the Newport location, both the roastery and café had already outgrown the space. In a fortuitous series of events, the Carabellos were able to buy the building next door, which was home to a former check-cashing business, in order to expand and maintain both the production and retail on-site.

While no firm date has been set for its opening later this summer, the Carabellos say that the expanding roasting area, along with the region’s first dedicated slow bar, will offer customers a truly unique experience that utilizes manual brewing techniques.

The goal of the slow bar, Justin says, is to help customers connect more intimately with the art and craft of coffee.

“We want it to be a place for baristas and customers to get creative, explore, and experiment,” Justin told UrbanCincy.

Analog will have a large farm table bar, barista-curated menu, and specialized equipment like siphon brewers and yama drip towers. And in order to deliver on the experiential element of the slow bar, they say that nothing will be offered for take-out.

Justin and Emily say that the slow bar space will also double as a training lab for wholesale clients, as well as classes for the general public on topics ranging from coffee brewing to latte art.

In fitting with Carabello Coffee’s business model, funding the expansion has been a true community effort, beginning with a Kickstarter campaign that raised a total of $47,000 toward their $40,000 goal. This allowed for the couple to make the down payment on the new space, and move forward with the expansion.

Through assistance with the Catalytic Fund, Carabello Coffee became the first business in Newport to land a Duke Energy Urban Revitalization Grant, which was awarded in March, and is covering $42,000 in project soft costs. Another grant from the City of Newport will provide up to $15,000 in matching funds for façade improvements, while even additional financial assistance is being sought through the use of historic preservation and rehabilitation tax credits.

Carabello Coffee is open Monday through Friday from 7am to 8pm, Saturday from 8am to 8pm, and closed on Sunday. Free bike parking is available nearby, and a Cincy Red Bike station is located just two blocks from the cafe.

Categories
Development News

State Historic Tax Credit Expected to Boost $3.1M Renovation of Goetz Tower

The seven-story Middletown Building & Deposit Association tower in Butler County was one of 12 projects in southwest Ohio to receive historic tax credits last month from the State of Ohio. As part of the deal, the $3.1 million project will receive $600,000.

The redevelopment of the 85-year-old structure will result in expanded and renovated street-level retail space, with 24 market-rate apartments on the six floors above that.

The hope is that other similar, but smaller-scale, projects come online, as is expected, after the next round of historic tax credits are awarded this spring.

As earlier reported by UrbanCincy, this award was part of a larger $42 million distribution of historic tax credits state-wide by the Ohio Development Services Agency. The goal of the tax credits, public officials say, is to spark economic development while also preserving historic structures. It is anticipated that this round of awards will spur an estimated $600 million in private investment.

This award comes after nearly $150,000 in grants for assessments and site preparation awarded by the Duke Energy Foundation, US Environmental Protection Agency, and Cincinnati Development Fund. The moment that really gave the project its initial boost, however, came in 2012 when the building was donated to Grassroots Ohio by Fifth Third Bank.

In conjunction with the $10 million rehabilitation of the Sorg Opera House, city officials and private developers are expecting to leverage this initial project to spur additional development nearby. They are also hoping to leverage its location across from Cincinnati State’s Middletown campus as a walkable alternative to students who are primarily commuting from outside the city.

Built in 1930, the seven-story, Art Deco building has survived decades of changes in the heart of Middletown. Upon completion of renovations, project officials say that the building will be renamed Goetz Tower in honor of its original architect.

Construction is anticipated to start in March and last approximately 18 months.

Categories
News Transportation

Ruling From Judge Stich Potentially Very Damaging for Local Governments in Ohio

Cincinnati Streetcar Phase 1 RouteThe Business Courier reported yesterday that Hamilton County Common Pleas Judge Carl Stich (R) ruled that the City of Cincinnati must pay for the relocation of Duke Energy’s utilities along the first phase of the Cincinnati Streetcar system.

As learned from a leaked internal memo last December, this decision was expected by city officials who will now be on the hook for an additional $15 million in costs – expenses that will be covered by the project’s existing contingency fund.

In Stich’s ruling, he cited an Ohio Supreme Court case from 1955, Speeth v. Carney, that stated government-owned transit systems are proprietary functions, not government ones. This is important because that is what lays the foundation for Stich’s ruling, but also sets a potentially far-reaching precedence for what costs local governments are expected to bear when making infrastructure investments.

As a result, former city solicitor John Curp says that Cincinnati should appeal the ruling.

“The troubling element of the ruling for local governments is that the court looked under the hood of the streetcar and based its decision on one debated effect of the project rather than principal operation of the project, which is transportation,” Curp told the Business Courier – an UrbanCincy content partner. “Nearly every government project is justified as an economic development project. If applied more broadly, this decision could add significant costs to local government infrastructure projects.”

Cincinnati City Manager Harry Black seems to agree, and says that the city will in fact appeal the ruling.

Furthermore, Judge Stich did address the fact that the rulings used to make his decision were quite old and rendered during a time when private companies owned and operated public transit systems. This is a notable difference from today where that is largely non-existent, and would seemingly change the entire discussion in a case of this nature.

“The court noted that the case it found controlling was an anachronism to a bygone era where private companies ran public transportation,” Curp said. “The current reality is that government heavily subsidizes almost all forms of public transportation. No one mistakes public transportation as a proprietary, money-making venture. An appeal would help ensure that all local governments are working on equal footing and none have a competitive advantage on costs for new infrastructure projects”

In addition to Duke Energy, there are a half-dozen other utility companies that are within the project area, but all of those companies had come to terms with the City prior to the commencement of construction. The question now is what financial obligations, if any, those companies will have on future infrastructure projects pursued by City Hall.

Furthermore, the decision shines an interesting light on how infrastructure projects and their associated costs are rarely neatly defined. These utility costs, for example, are being covered through the budget for the streetcar, but have nothing to do with rail transit. In fact, a large sum of the budget for the Cincinnati Streetcar is actually allocated to things that have nothing to do (e.g. buried utilities, utility upgrades and relocations, and road resurfacing) with the direct construction or operation of the transit system.

The project, however, brings up a very convenient and cost-effective time in which to make such improvements. As has been discovered thus far, many of these improvements have been sorely needed. In Over-the-Rhine, for example, broken water mains, wooden pipes and other outdated infrastructure has been discovered and either repaired or upgraded as a result of the project.

This is a coup for any utility company that can have the cost of upgrading their systems shouldered by the taxpayers, instead of their ratepayers, as such is the case in this Duke Energy example.

Since much of the costs for the project are related to non-streetcar items, it seems to lean toward Curp’s concern of the ruling being applied more broadly.

“The case is also important for other cities in Ohio,” said City Manager Black. “The decision may ultimately dictate who pays for local infrastructure improvements that require the movement of utilities on public property: the taxpayers or the utility.”

With an appeal forthcoming, it appears that lawyers will continue to reap the benefits of this political battle. Meanwhile, construction progresses on the Cincinnati Streetcar project on-time and on-budget.

Categories
Development News

$450,000 donation from Duke Energy to advance construction at Smale Riverfront Park

Thanks to a $450,000 donation from Duke Energy, the Cincinnati Park Board will be able to move forward more quickly with the development of what was previously called the Main Street Garden at the Smale Riverfront Park.

The area is located immediately south of Great American Ball Park, and is now called the Duke Energy Garden. The narrow piece of park space is expected to be completed by spring 2013, and will connect the Smale Riverfront Park with additional riverfront parkland to the east (Sawyer Point, Bicentennial Commons, Theordore M. Berry International Friendship Park).


The Duke Energy Garden will include 12 “family-sized” porch swings, walking paths, and will help connect the Smale Riverfront Park with additional riverfront parks to the east. Rendering provided.

According to Cincinnati Park Board officials, this connection will be further established with the completion of the Ohio River Trail to Paddlewheel Park in fall 2013.

“The Cincinnati riverfront is more than just an entryway into our community,” Julie Janson, President of Duke Energy Ohio/Kentucky, stated at a Monday morning press conference. “It serves as the front porch to Ohio. That’s why Duke Energy, through our foundation, is happy to be able to support the creation of the Duke Energy Garden in the new Smale Riverfront Park.”

According to park officials, the Duke Energy Garden will include 87 trees, thousands of smaller plantings, walking paths, a 150-foot granite seat wall, and 12 “family-sized” porch swings.

The porch swings will be suspended from “undulating” pergolas that will also offer park-users a bit of shade and protection from the elements while enjoying the swings, which have long been anticipated at the park due to their popularity elsewhere throughout the country.


Three additional phases of work are planned to follow the completion of the Duke Energy Garden at Smale Riverfront Park. Image provided.

“Duke Energy’s commitment to the vitality of this region has been demonstrated again and again by the company’s substantial investments in economic development, education, environmental and energy efficiency efforts throughout the region,” said Willie F. Carden, Jr., Director of Cincinnati Parks. “The establishment of the Duke Energy Garden in Smale Riverfront Park is another such gift that will provide a stunning new public greenspace in Greater Cincinnati’s grand new front yard.”

The majority of phase one work at the Smale Riverfront Park was completed in May 2012, but several features of phase one have yet to be funded or built, in addition to future phases of park construction to the west. Some of those features include a transient boat dock, playgrounds, additional gardens and tree groves, a carousel, and more promenades and fountains connecting the central riverfront park with the Ohio River.

Three additional phases of construction work will take place following the completion of the Duke Energy Garden, and it is expected that once fully built out that Smale Riverfront Park will attract approximately 1.1 million visitors annually.