Category: Development

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Is the Eastern Corridor Project a Trojan Horse for an Extension of I-74?

The Eastern Corridor Program has been part of Cincinnati’s political landscape since 1999. That year the Ohio, Kentucky, Indiana Regional Council of Governments (OKI) completed a Major Investment Study that envisioned construction of a new expressway between I-71 and I-275 and commuter rail service on existing freight railroad tracks as a multi-modal solution to limited east-west travel in eastern Hamilton County.

But are the incremental upgrades planned for Red Bank Road that appeared in the Ohio Department of Transportation’s (ODOT) December 21, 2013 Preferred Alternative Implementation Plan part of a long-term plan to extend Interstate 74 across Hamilton County and east to Portsmouth, OH?

A veteran of Cincinnati transportation planning thinks so. Speaking on terms of anonymity, a source claims that he was approached in the mid-1990s by Hamilton County officials and out-of-state toll road builders who sought to extend I-74 from its current terminus in Cincinnati at I-75 to SR 32 in Clermont County.

According to the individual, the Eastern Corridor Program charts a different route for I-74 across Hamilton County but it achieves a similar end. Specifically, it aims to open eastern Hamilton County and Clermont County to development in a way that interstate-quality upgrades to SR 32 east of I-275 could not alone achieve.

Extension of I-74 east to Portsmouth was widely discussed in the Cincinnati media in the early 1990s. On November 11, 1991, The Cincinnati Post reported that the newly passed Intermodal Surface Transportation Efficiency Act of 1991 named “an extended I-74 – and a new I-73 between Detroit and Charleston, SC, through Ohio – as one of 21 high-priority corridors”.

Planning for new sections of I-74 began in the early 1990s in North Carolina, and today 122 miles of I-74 are now open in that state.

While ODOT has never explicitly studied an I-74 extension, it did begin planning I-73 immediately after passage of the highway bill. This planning took place in an unorthodox manner when, in 1991, former Ohio Governor George Voinovich (R) directed the Ohio Turnpike Commission (OTC) – not ODOT – to study construction of a new interstate highway connecting Toledo, Columbus and Portsmouth.

An 80% toll hike in 1995 raised suspicions that construction of I-73 was imminent, however the OTC ended its planning 1997. This event appears to have coincided with West Virginia’s decision to slowly build its section of I-73/74 as a public/private partnership with various coal companies. With the end of I-73 planning also went any expectation that SR 32 might soon be upgraded to I-74 between Cincinnati and Portsmouth.

Since the conclusion of the Ohio Turnpike Commission’s study in 1997, ODOT has not explicitly planned for I-73 or the I-74 extension. However, many of its recent activities are consistent with the OTC’s plans in the 1990s.

On July 22, 2013 Governor John Kasich (R) announced that excess Ohio Turnpike toll revenue will fund construction of the $450 million Portsmouth Bypass, which was part of the Ohio Turnpike Commission’s 1990’s-era I-73 study, and is a critical link in the national I-73/I-74 plan. To be initially signed as SR 823, the Portsmouth Bypass will be a fully grade-separated and access-controlled highway – an interstate highway in everything but name.

No mention of I-73 or an I-74 extension appears on ODOT’s website; but an October 12, 2010 post on the National I-73/I-74 Association’s website named Steven Carter, Director of Scioto County (Portsmouth) Economic Development, as well as two officials from the Toledo area, as attendees at the association’s fall 2010 “Road Rally” in Washington, D.C.

Near Cincinnati, improvements to SR 32 are bringing the roadway closer to Interstate Highway design specifications. A new $32 million interchange is under construction at I-275, and the Clermont County Transportation Improvement District is studying full grade separation and controlled access from Batavia to the Brown County Line.

Within Hamilton County, ODOT divided a possible I-74 route into two separate projects: SR 32 Relocation and Red Bank Road upgrades. At an August 2011 public meeting, ODOT displayed drawings of Red Bank Road reconstructed as a fully grade separated and access controlled expressway. Those drawings do not currently appear on the project’s website.

New drawings shown at ODOT’s Oct 2, 2013 meeting and in its December 21, 2013 report are less ambitious but do not preclude a future full conversion of Red Bank Road into an interstate highway.

The project website states that the relocated SR 32 will “feel like a boulevard or parkway…it will not be a highway like I-71 or I-75”. However, no design feature presented to-date by ODOT prevents relocated SR 32 from being improved to full grade separation and limited access. In the meantime, planning and promotional activities for the future I-74 connecting the Midwest with the coastal Carolinas continue in earnest.

Editorial Note: In the coming weeks, we will publish two follow-up stories related to the Eastern Corridor Program. The first will take an in-depth look at the Portsmouth Bypass and West Virginia portion of the I-74 extension, and the second will provide an updated look at the program’s proposed Oasis Commuter Rail line.

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Business Development News

$7.8M Renovation of Historic Pabst Bedding Warehouse to Start This March

The Cincinnati Center City Development Corporation (3CDC) plans to begin a $7.8 million renovation project at the northwest corner of Twelfth and Walnut Streets this March.

The project received a critical boost in late December when the Ohio Development Services Agency (ODSA) awarded a $778,000 Historic Preservation Tax Credit to 3CDC.

Officials with ODSA say that the project received the tax credits because it was financed, showed a good return on investment, represents a building of significance to the neighborhood, and is ready to move forward immediately.

“The project was funded because it scored well within our criteria,” explained Stephanie Gostomski, Public Information Officer with ODSA. “Also, this is one of the newer structures that contributes to the significance of the Over-the-Rhine Historic District and will retain its warehouse and industrial character upon conclusion of the project.”

Due to the building’s relatively good condition, 3CDC officials say that they expect construction work to take several months and hope to move into what will become the development corporation’s new headquarters this summer. Once complete, 3CDC will occupy 12,000 square feet of the building’s office space, while another tenant will use the remaining 6,000 square feet of office space.

As 3CDC’s success in Over-the-Rhine has mounted, its staff has grown along with it – now with 50 full-time employees and 43 seasonal workers. But 3CDC officials say they are not the only ones placing a premium on office space in the city’s largest historic district.

“There is a lot of demand for larger floor plates with more square footage, and there are plenty of smaller office users,” explained Anastasia Mileham, Vice President of Communications at 3CDC. To that end, Mileham says that the final product will include open floor plans and will reopen the large windows on the building’s north façade.

As part of the move 3CDC will be vacating their existing office space on Race Street near Washington Park. Due to the strong demand for office space, Mileham did not express concern over filling that space and informed UrbanCincy that they are currently finalizing a lease for a new tenant.

In addition to the 18,000 square feet of office space, the prominent warehouse building will also include 9,000 square feet of street-level retail space

The building is one of the largest single structures in Over-the-Rhine south of Liberty Street and was originally a warehouse for Pabst Bedding. The structure then had been used by Society National Bank and later Fifth Third Bank before it was abandoned in the early 2000s.

According to Hamilton County property records, the Art Academy of Cincinnati then purchased the building in 2007 for $450,000 when it relocated its school to Over-the-Rhine, but never utilized the space. The 84-year-old structure was finally sold to 3CDC in September 2013 for $550,000.

The renovation of the Pabst Bedding Warehouse building joins an increasing amount of historic building renovation work along Walnut Street including a frenzy of work for Mercer Commons just to the north, and the renovation of a storefront diagonally across the street to make way for a new beer café called HalfCut.

“The Ohio Historic Preservation Tax Credit strengthens local communities by restoring a piece of its history,” David Goodman, director of the Ohio Development Services Agency, stated in a prepared release. “These projects help enrich cities across Ohio, preserving the character and charm of buildings that may have otherwise been demolished.”

Photographs by Randy Simes for UrbanCincy.

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Development News Transportation

Elm Street Cycle Track Would Provide Critical Link for Region’s Bike Infrastructure

The city will start construction on physically separated bike lanes along Central Parkway, from Downtown to Clifton, this coming spring. Following a community engagement process, a final design was selected in recent weeks, and the large addition to Cincinnati’s bike network is expected to make a significant impact.

Not only will it be one of the most impressive bike facilities installed in the region to-date, but it will also link neighborhoods together that have large percentages of bicyclists. Furthermore, it will link other bike facilities with one another, and come close to linking even more.

Some of the existing facilities include numerous bike lanes and the Mill Creek Greenway, but the Central Parkway bike lanes will come about 12 blocks shy of connecting with the Ohio River Trail, which then links to the Little Miami Scenic Trail.

A two-way cycle track should be built in order to connect the new Central Parkway bike lanes with the Ohio River Trail and beyond.

Elm Street Cycle Track

There are two streets that connect from Central Parkway to the Ohio River Trail along Mehring Way without interruption: Main Street and Elm Street. Both of the streets have one-way traffic heading northbound, but Main Street is considerably more congested with cars and buses heading to Government Square.

Elm Street, however, has some of the least congestion of any north/south street in the Central Business District and could easily connect the Central Parkway cycle track with the Ohio River Trail. A reorganization of the street would need to occur however.

Presently Elm Street, from Central Parkway to Mehring Way, lacks consistency in its design with on-street parking located haphazardly along both sides of the street. A reconfiguration of the street could consolidate all on-street parking to the east side of the street, thus eliminating only a nominal number of on-street parking spaces, and maintain 2 to 3 moving traffic lanes (the parking lane could be restricted during rush hours to allow for a third travel lane).

The Elm Street cycle track, meanwhile, would be located along the west side of the street and be buffered from moving traffic by a row of bollards. Such a redesign of Elm Street would be a bit of a road diet, but one that seems reasonable for this stretch of overbuilt roadway.

Planners with the City’s Department of Transportation & Engineering (DOTE) said that the idea of an Elm Street cycle track had not come up before, and has not been presented to any formal committees or community councils to-date. Such coordination, they say, would need to take place prior to the idea moving forward.

With future phases of The Banks and the yet-to-be-named residential tower on Fourth Street set to begin construction soon, there seems to be an opportunity to rebuild this roadway along with those projects. This would help offset some of the costs and make for a more seamless transition.

Projects like this are low-hanging fruit for the new mayor and council, should they wish to pursue investments that improve the city’s bike infrastructure. They should work with the bike community and come up with a strategy that provides a clear path forward to make this happen.

An Elm Street cycle track like this would provide a critical link in the region’s bike network, make the street safer, more accommodating to more users and more attractive to those who currently find themselves along the now bleak and desolate stretch of roadway. Let’s get to work.

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Business Development News

Gentrification Occurring in More Than Cincinnati’s Center City Neighborhoods

Like many cities across the United States, the City of Cincinnati is gentrifying, but it is doing so at a faster rate than most of its Midwestern peers – ranking fourth only behind Chicago, Minneapolis and St. Louis. When compared with the primary city in each of the nation’s 55 most populated metropolitan areas, Cincinnati is in the middle of the pack. Those cities that are gentrifying most quickly are located in the Northeast and along the West Coast.

The information comes from a new report published by the Federal Reserve Bank of Cleveland, which also dove into the financial implications of what is often generally considered a bad thing.

Gentrification is generally understood as the rise of home prices or rents in a particular neighborhood. In Cincinnati this has most vigorously been discussed as it relates to the transformation in Over-the-Rhine from what was one of the city’s poorest neighborhoods, to now being one of its trendiest.

Clifton Heights
The Clifton Heights neighborhood, which continues to see a surge of private real estate investment, was found to be one of several Cincinnati neighborhoods that gentrified between 2000 and 2007. Photograph by Randy Simes for UrbanCincy.

“Gentrification is sometimes viewed as a bad thing. People claim that it is detrimental to the original residents of the gentrifying neighborhood,” stated Daniel Hartley, a research economist focusing on urban and regional economics and labor economics for the Federal Reserve Bank of Cleveland. “However, a look at the data suggests that gentrification is actually beneficial to the financial health of the original residents.”

What Hartley’s research found is that credit scores for those living in a neighborhood that gentrified between 2000 and 2007 were about eight points higher than those people living in a low-price neighborhood that did not gentrify. He also discovered that delinquency rates, as represented by a share of people with an account 90 or more days past due, fell by two points in gentrifying neighborhoods relative to other low-price neighborhoods during the same period.

Some, however, caution against drawing conclusions about the data presented in Hartley’s report.

“I don’t see any reason why gentrification would affect the credit scores of existing residents – those who lived in the neighborhood prior to gentrification occurring,” commented Dr. David Varady, a professor specializing in housing policy at the University of Cincinnati’s School of Planning. “It was my impression that banks and other financial institutions were not supposed to take the neighborhood into account but rely on the family’s financial characteristics.”

The practice Dr. Varady describes of banks and financial institutions taking neighborhoods into account is called redlining. It is a practice that was rebuffed by the Fair Housing Act of 1968 and the Community Reinvestment Act of 1977, but some believe the practice persists in more abstract forms today.

One of the biggest concerns shared by those worried about the gentrification of neighborhoods is that it is particularly those that rent, rather than own, who are affected most. This too, however, is challenged by Hartley’s research.

“Mortgage-holding residents are associated with about the same increase in credit scores in gentrifying neighborhoods as non-mortgage-holding residents,” Hartley explained. “This result suggests that renters in gentrifying neighborhoods benefit by about the same degree as homeowners.”

Cincinnati Gentrification (2000-2007)
The Federal Reserve Bank of Cleveland noted gentrification in a wide variety of Cincinnati neighborhoods between 2000 and 2007. Map produced by Nate Wessel for UrbanCincy.

What is even more intriguing about the report’s findings is that original residents who moved from the gentrifying neighborhood, who many would consider displaced residents, experienced a 1.5 point higher credit score improvement than those who did not move.

The Federal Reserve Bank of Cleveland provided UrbanCincy with the data broken out by Census tract for Cincinnati. Approximately 72% of the city’s 104 Census tracts are defined as low-price, and of those 75 Census tracts with home valuation data, nine were found to have gentrified between 2000 and 2007.

When examined more closely it becomes clear that the neighborhoods experiencing the biggest gains in home value and income in Cincinnati are those that are in the center city. Specifically, and perhaps not surprisingly, five of the nine are located in the neighborhoods of Clifton Heights, East Walnut Hills, Fairview, University Heights and the East End. Outside of the center city, Pleasant Ridge, Oakley, Columbia Tusculum and Mt. Airy also experienced gentrification over the past decade.

Community council leaders for these neighborhoods did not respond to multiple requests for comments from UrbanCincy.

Unfortunately, the two neighborhoods where many expect gentrification has occurred most – Downtown and Over-the-Rhine – did not have median home value data available for the Federal Reserve Bank of Cleveland to study.

While the report has generally positive findings about the impacts of gentrification, Cincinnati is at a disadvantage when it comes to improving the financial health of its neighborhoods.

According to the report, the percentage of low-price Census tracts in Cincinnati beneath the median home value of the metropolitan area is 14 percentage points higher than the national average, and the rate at which Census tracts are gentrifying in the Great Lakes region is approximately 4.5 points lower than the national average.

“I don’t have a clue what Hartley meant by the phrase ‘neighborhoods with a potential for gentrification’ but the assertion that 95% do in Baltimore is rather ludicrous given the high rate of abandonment,” Dr. Varady scoffed. “Baltimore certainly can use more gentrification but how the city can promote this is an open question.”

With the nine identified neighborhoods in Cincinnati spread throughout a mix of expected and unexpected locations, it is probably safe to say that the Census tracts in Downtown and Over-the-Rhine also gentrified during this period, or have since 2007.

Change in cities is inevitable, but whether these changes sweeping Cincinnati are good, bad or indifferent is probably still open for spirited discussion among those most interested.

“In general I think that gentrification presents benefits and costs,” Dr. Varady concluded. “Anyone who says it is all bad or all good is not contributing to the debate.”

This story originally appeared in the December 20, 2013 print edition of the Cincinnati Business Courier. You can view that story online for additional comments and discussion. UrbanCincy readers can take advantage of an exclusive premium digital Business Courier subscription that includes access via the web, smart phone or tablet applications for just $49 per year.

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Business Development News

Walnut Hills Redevelopment Foundation Had Banner Year in 2013

Walnut Hills had a big year in 2013, and it seems as though the Walnut Hills Redevelopment Foundation (WHRF) is only just now starting to flex its muscle.

The Walnut Hills neighborhood and neighborhoods surrounding it like East Walnut Hills and Evanston are beautiful gems in the Queen City’s crown, but they were gems that had not received the attention and care that they deserved. Kevin Wright, a former UrbanCincy team member who left the site in 2011 to serve as WHRF’s executive director, has guided the neighborhood’s recent resurgence.

One of the things the neighborhood has been most effective at over the past two years has been its community engagement and implementing placemaking strategies. The Five Points Biergarten, monthly community get-togethers, annual street food festival and various neighborhood cleanup activities seem to have sparked a renaissance there. In the fall of 2012 we even hosted a couple of story telling events in East Walnut Hills on DeSales Plaza.

Now all of those social events and neighborhood gatherings are being joined by public and private money that’s renovating historic buildings and creating new businesses like Hinge and Fireside Pizza, to name just two.

We are looking forward to what our good friend Kevin and his team have on-tap for 2014, but for now we are proud to look back on the terrific 2013 they had.