Category: Development

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Business Development News

LOT Expo Looking to Tackle Problem of Vacant Properties Throughout City

Covington MadLot [Provided]

Just think if a vacant lot near you could be turned into a solar-powered wi-fi hub and electric car charging station, a home for egg-laying chickens, or any number of other creative and productive uses. That is what a group of thought leaders are trying to accomplish with a new program they hope will gain traction at City Hall.

In an effort to promote vacant properties as entrepreneurial and sustainable turnaround opportunities, Lots of Tiny Exposition will be held this week in Over-the-Rhine.

The brainchild of local U. S. Green Building Council activists, LOT Expo is an upcoming free two-day open air exhibit in OTR to draw attention to the “sub-prime” real estate plaguing many neighborhoods.

Specifically tied to the tiny house movement, LOT presents exhibitors that showcase inventive, small scale installations for big, immediate vacant lot impact. Exhibitors will include a tiny house on wheels, vertical garden systems, solar and wind power operations, mobile mini-chicken coops, a 1950’s Airstream retrofit, and pervious parking pads.

Organizers say that they hope visitors bring property addresses for vacant lots that they believe have potential. At that moment, they say an on-the-spot professional laptop “green diagnosis” rating report will be produced. Designers who want to stimulate new ventures for abandoned property blight will be on the lookout for those projects brought to attention.

While the idea seems easy enough, vacant lot redevelopment can actually be a complicated, multi-faceted subject requiring professional knowledge.

As a result, the LOT Forum Panels at the Expo are meant to offer public and private sector professionals to bring expertise, experience, and skills to the vacant lot syndrome – the knowhow for sustainable success. Four different panels are convening under roof at a three-minute walk from the LOT Expo venue; and panel discussions will turn attention to vacant lot gridlocks and reinvestments that lessen public subsidy supports.

Individual Lots on Massive Scale
According to Vacant Lots: Occupied – a guide produced by a group of University of Cincinnati students with the help of Keep Cincinnati Beautiful, the City of Cincinnati Department of Community Development and Building Value – there are approximately 22,000 vacant properties in the City of Cincinnati. These properties are classified as land with or without a structure that have been abandoned by its owners. It is estimated that 8,000 of these are without any structures.

Though not as dismal as some other American cities, vacant properties account for about 10% of Cincinnati’s parcels.

Keep Cincinnati Beautiful has successfully ‘cleaned and greened’ vacant lots throughout the city. This typically means cleaning up the lot before planting grass that then requires continued maintenance. Not satisfied with that approach, KCB collaborated with the University of Cincinnati Horticulture Program to develop Vacant Lots: Occupied. This award-winning manual established an analytical guide to select and transform abandoned lots.

While many individuals and families are already helping to stabilize lots in their community, 8,000 is a big number. Ryan Geismar, one of the professors that led the UC students, says the guide was originally intended for KCB and other organizations, but that it became clear that collective effort is needed to address the blight problem.

From a large-scale planning perspective, Geismar says the best approach is to “Identify assets within neighborhoods and use strategic investment catalysts that inspire others to take action.”

Return on Investments
Neighborhood developers are drawn to prime property, usually clear, open lots with existing infrastructure. There is a dire need to address the marginal, by-passed lots that are an economic drain on our city and region. Though numbers aren’t available in Cincinnati, the city of Philadelphia highlights the imperative of critical action. In 2010, their approximately 40,000 vacant parcels consumed about $20 million in city services (fire, police, maintenance, pest control, etc.) and represented $2 million in uncollected property tax revenue.

Vacant properties have always been around; their numbers surged after the recent recession and spike in housing foreclosures. Many large financial institutions faced lawsuits over fraudulent foreclosures or mortgages; and Ohio’s Attorney General settled a suit against five of the nation’s largest mortgage servicers over foreclosure abuses, fraud, and unfair and deceptive mortgage practices.

A portion of that money was disbursed to Ohio counties for home demolitions. The result in Cincinnati was to tear down hundreds of buildings over the last few years, creating even more vacant lots.

Blight or Bonanza
One of the few cities with data and a comprehensive approach to the problem is Philadelphia where a study concluded that blighting effect from vacant parcels reduced values by 6.5% citywide and by up to 20% in some neighborhoods. In order to counter this epidemic, Philadelphia officials responded by offering landowners adjacent to vacant properties the land for little to no cost.

Since not every lot is the same, solutions require resourceful, frugal and innovative investments. With depreciated property values and dwindling public dollars spread thin, small business opportunists may see vacant lots as overlooked economic potential or reframe the problem as an engaging community asset.

Place from Space, a design competition to transform vacant underutilized spaces into vibrant places, awarded Renaissance Covington with a $1,000 prize to transform a parking lot into a performance space after business hours. This was achieved with financial and infrastructure support from the City of Covington, and a large amount of volunteer hours from committed citizens and professional designers. The performance space, now known as MadLot, has since hosted live music, movies, and other programming since opening.

Individual efforts should not go unnoticed. Whether guerilla gardening or picking up trash, these small steps help improve appearance and reverse the effects of the broken window theory. While the sheer number of vacant lots is large, the challenge is not insurmountable. It will take economies of thrift, practical knowhow and strategic thinking to execute solutions.

A tiny house on wheels, bocce ball court, performance stage or another enhancement might find a way to a lot near you. It might not be long before you find a goat chomping down honeysuckle next door.

LOT Expo will take place from September 19-20 from 10am to 4pm each day at the New Findlay Market Playground at 1814-1822 Elm Street. The Saturday forum panel will focus on tiny living and the Sunday forum will focus on vacant lots. Both will take place between 11am and 2pm at Rookwood Pottery Company around the corner at 1920 Race Street.

The event is free and open to the public, but organizers are asking for those interested in attending to register in advance online.

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Development News

Model Group Moving Forward With $30M Second Phase of Broadway Square

Despite missing out on millions of dollars in state historic tax credits, Model Group is moving on undeterred with the next phase of work at Broadway Square.

Project officials say that the $30 million Broadway 3, which is actually phase two, should get started within the next week and will include 30 residential apartments and 1,200 square feet of commercial space.

“It’s a pretty sterile scoring system, so it’s pretty fair and to the point,” Bobby Maly, Chief Operating Officer at Model Group, told me when asked about missing out on the tax credits.

Undeterred, Maly then quickly changed to a more positive note and spoke about how Model Group is excited about the changes on tap for nearby Ziegler Park.

“Anytime you can create high quality green space that is safe and programmed is terrific,” Maly said. “Even the planned parking can be helpful for a high density neighborhood like Pendleton.”

One of the big differences about Broadway Square from the other developments taking place in Over-the-Rhine is that it has a different and unique setting. As many longtime residents know, Pendleton is less a district, and more of a pocket neighborhood.

To that end, he says that Model Group’s Broadway Square project is trying to not recreate what is happening on Vine or Main, but rather create a nexus that has a high concentration of professionals and niche businesses in a “high energy” environment.

So far the first phase of Broadway Square has lived up to that motto by attracting a collection of small, creative businesses, along with Urbana Cafe’s first brick-and-mortar location and the recently opened Nation Kitchen & Bar. While this next phase of work will have considerably less commercial space, Maly says that they have their eyes set on a small brewery for the corner of Thirteenth and Broadway Streets.

With apartments in Downtown and Over-the-Rhine at nearly 100% occupancy, and the first phase of Broadway Square fully leased within months with new marketing, the climate seems even better for the 30 new units this investment will bring online.

“There’s so much demand for Downtown and Over-the-Rhine right now that Cincinnati is still catching up with demand in that regard,” said Maly. “This is still more the beginning, than the middle or end.”

With work expected to get started soon on phase two, project officials say that the third and final phase could break ground as soon as January.

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Business Development News

Garfield Suites Hotel To Be Converted Into 153-Unit Apartment Tower

Garfield Suites HotelLate on Friday afternoon the owner of Garfield Suites Hotel announced that the 34-year-old building would be converted back into apartments over the next year.

The news is tremendously positive for the center city’s residential and hospitality markets, both of which are experiencing their own transformations.

The 153-room hotel is one of the more dated in the marketplace, and it is facing increasing competition from new hotel operators at all price points. Such movements are forcing the hands of existing hotel owners to either make big investments to upgrade their facilities, close down or change uses. Removing these rooms from the inventory will make the market stronger for those other operators.

At the same time, there is virtually no apartment availability in the 45202 zip code, which covers Downtown, Over-the-Rhine and Pendleton. The location of this 16-floor tower is ideally situated for new residents looking to be in the heart of both thriving districts, and will almost certainly lease up in a matter of months.

Aside from the purely business aspects, this is also good for the vibrancy of the central business district. While there have been many new residential developments in Over-the-Rhine and at The Banks, it has been more difficult to inject large numbers of new apartments or condos into areas like this due to its existing buildout.

This particular location is one that is rich with jobs, but still struggling to reach a critical mass of residents that will support full-time service retail functions. Adding a couple hundred residents to the mix will go a long way to supporting that goal.

The interesting item about this project is that it is the building’s location that motivated its owners to convert it from apartments into a hotel 25 years ago.

At that time, the proximity to Over-the-Rhine was seen as a detriment and Downtown was not the place we know today. Those dramatic changes that have taken place in both neighborhoods over the past decade are now what is motivating the current owner to switch operations again.

This is a great example of urban resiliency.

The total cost of the renovation has not yet been determined, but owners intend to begin work in early 2016. They say that the plan will be to gradually make renovations so that the hotel can continue to operate as the units are gradually converted.

The owners also told Tom Demeropolis, who broke the story for the Business Courier, that they are also hoping to lease the 10,000 square feet of existing street-level retail space that sit vacant along Vine Street.

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Business Development News

New Corryville Store Design Reveals That Kroger Continues to Struggle With Urban Format

Corryville Kroger Elevations from CR Architects in 2008 [Niehoff Studio]

Located next to the University of Cincinnati and surrounded by some of the region’s largest employers, University Plaza has long sat as one of the most underutilized pieces of commercial real estate in the city.

With demolition work well underway, a new University Plaza will soon be realized, but will it be any better than what was has occupied the site since the early 1980s?

The public got the first idea of what that answer will be when the Business Courier published designs of what the new 92,000-square-foot Corryville Kroger will look like.

While no site plan has been released, the drawings show a two-level store that will face west toward Jefferson Avenue. The front façade will include numerous windows, while the other three sides would not. A drive-thru pharmacy will be located along Corry Street, and a surface parking lot will sit in front of the building, separating it from the street.

The front façade treatments and two-level store design are departures from Kroger’s previous urban store designs elsewhere in Cincinnati. The large surface parking lot, however, stays true to their typical development model and represents a departure from the earlier visions for the site that included a rooftop or structured parking facility.

In fact, the final arrangement for the redeveloped University Plaza site will most likely appear nothing like the original concepts first produced a decade ago. Over that time, dozens of concept plans have been developed for the site from the Niehoff Studio and three different professional design firms.

The Niehoff Studio has actually be researching the topic of urban grocery stores since 2002, and has published its findings on everything from the economic performance to the social impact and design of such stores.

“I applaud the initiative and risk taking involved to make this a two story format,” said Frank Russell, Director of the Niehoff Studio and Community Design Center. “This is a sensible solution to putting a sprawling large scale program on a valuable site in a dense urban setting. It relates better to the surrounding context which is multi-story, but it is very difficult to do from a functionality point of view.”

While the two-story structure is in line with the original recommendations, Russell says that the large surface parking lot is not ideal.

“That undoes some of the progressive intent of the two-story building design, especially at the important gateway corner of Jefferson and Taft,” Russell told UrbanCincy. “The best thing that I could say about that is that it is a land-bank for future structured parking and mixed-use development, notwithstanding a landscaped corner.”

While notably different than the original design concepts developed in the early aughts, the designs released yesterday appear to have not changed much from what was developed by CR Architects in 2008.

Kroger representatives say that the store will also feature an outdoor seating area, similar to what the company recently developed in Lexington. They also say that while the store will have two levels, customers will not actually use the second floor since it will be used for food preparation functions only.

Project officials say that the current store will close on September 12 so that it can be demolished. It is estimated that construction of the new store will take 12 to 14 months and open at the end of 2016.

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Business Development News

Project Officials To Move Forward With Phase III of The Banks Ahead of Schedule

The Banks [Brian Spitzig]

Business leaders and public officials from the City of Cincinnati and Hamilton County will gather tomorrow morning to celebrate the groundbreaking of the next phase of work at The Banks.

As has been done in the past at the massive central riverfront development, the first work to be done will be the construction of a public parking garage that will lift the project out of the Ohio River’s flood plain. From there, the existing public streets surrounding the project site will be extended to frame the block.

While the event is being touted as a groundbreaking ceremony, workers from Prus Construction and Beaty Construction began mobilizing on the site to perform preparation work. The news is a bit of a departure from previous announcements that said construction work would hold off until the close of the Bengals season in order to preserve parking for tailgaters at Paul Brown Stadium.

In this particular phase of work, project officials say that 690 parking spaces will be built on two levels that will be connected with the rest of the underground parking deck at The Banks, which has been casually described as one of the largest underground parking structures in North America.

This $29.3 million effort is being jointly funded by the City of Cincinnati, Hamilton County, and the State of Ohio’s Jobs Ohio program. Representatives from the various public agencies funding the project say that it will create an estimated 200 jobs, with at least 30% of the contract totals spent with Small Business Enterprises.

Such a claim for small business inclusion is on-target for what the project has been delivering thus far. As of June 2015, the latest reporting date, The Banks has had an average of 36% small business participation and approximately 17.5% minority and female workforce participation.

Nearby work continues on the private sector vertical construction of Radius, a 291-unit apartment midrise with 19,000 square feet of street-level retail, and the 340,000-square-foot General Electric Global Operations Center.

Once these two phases of work are complete, it will allow for the next phase of Smale Riverfront Park to move forward, and will set the stage for private real estate development south of Freedom Way and in between Race and Vine Streets.

So far, Carter USA and the Dawson Company have yet to reveal what will ultimately be built on top of this latest garage extension, but most suspect it will be some combination of apartments and condominiums.

While The Banks has received much positive praise as of late, it has not come without its struggles. The retail in the first phase of the project continues to find its footing, and the area continues to struggle with a brand identity and architectural designs that people feel are worthy for the prominent piece real estate that this development occupies.