Category: Development

Categories
Business Development News Politics Transportation

Parking Lease Deal to Move Forward Following Appeals Court Ruling

Vandalized Parking Meter in OTR

photo (5)This morning the Hamilton County Court of Appeals released its decision on the court case (Lisa McQueen, et al. vs. Milton R. Dohoney, Jr., et al.) concerning whether the City of Cincinnati had the right to enact emergency ordinance provisions in leasing its parking assets to a third party. The decision from the court struck down a lower court’s ruling and in turn upheld the city’s parking lease ordinance and the right for City Council to enact emergency ordinances.

The decision means that the City of Cincinnati can enact its Parking Modernization & Lease Plan, which was passed by City Council 5-4 in March. The ruling also states that citizens do not have the right to file a referendum on items passed with an emergency clause, thus eliminating the possibility of a public vote on the parking lease deal this November.

Immediately following City Council’s March vote, opponents of the plan filed a taxpayer lawsuit against the plan and Judge Robert Winkler issued a restraining order preventing the city from using the emergency ordinance clause for this issue or any issue before the City of Cincinnati. In this particular case, Judge Winkler’s restraining order was issued within minutes of its vote.

Judge Winkler then heard arguments the following week and made a ruling in early-April that allowed a referendum on the emergency ordinance to move forward by questioning the clarity of the city’s charter provisions on the matter.

In May the Court of Appeals heard arguments from both sides. Today the long-awaited decision was announced. In making its decision the Court of Appeals considered several things.

  1. Whether the Plantiff in the case followed the proper legal procedure in filing for the taxpayer lawsuit. The decision documents state in three separate paragraphs that the plaintiffs failed to make the necessary $325 deposit. “The plaintiffs-relators intimate that they cured the deficiency by paying the $325 deposit after the common pleas court had entered its judgment. But the record certified on appeal does not demonstrate that any deposit was made.” Paragraph 23.
  2. Emergency Ordinances are subject to referendum if provisions are provided within the city’s charter: The city’s charter has language outlining the way the city can pass ordinances and emergency ordinances. It also outlines the provisions for referendums. The charter also defaults to state law provisions for what the charter does not cover. Since there were no provisions in the charter for referendum of emergency ordinances, they cannot be challenged to referendums.
  3. The court found that the Emergency Powers provision was backed up by 90 years of case law. In the 90+ years since the enacting of the city’s charter government, Hamilton County and State level courts have ruled in defense of the city’s emergency powers provisions.
  4. The court found that the city properly outlined the nature of the emergency in enacting the emergency ordinance.
  5. The City’s Charter was not ambiguous. The court took the path of interpreting the charter as a whole instead of the sum of its parts.

The ruling is being considered a major victory for the City of Cincinnati as it is now able to move forward with its Parking Modernization & Lease Plan, which will provide an upfront payment of $92 million and annual installments of $3 million from the Port of Greater Cincinnati Authority.

It also defends a wide array of city actions, that are passed with the emergency ordinance clause, from being subject to public referendums. Over the past several years, a host of decisions made by a plurality of City Council had been subject to what some believe is an inefficient way of running a government.

“While Cincinnatians for Progress did not take a position on the parking lease, we believe that good governance is critical to the city of Cincinnati, and we believe that our representative democracy as outlined in the city’s charter is good governance,” Derek Bauman, Co-Chair for Cincinnatians for Progress, told UrbanCincy. “In addition, it is vital for the city to have the ability to pass ordinances as an emergency when necessary. We welcome the appeals court ruling.”

What has yet to be decided is what will happen with the $92 million upfront payment, which was originally planned to cover the city’s budget gap and provide funding for a host of economic development deals.

Since that time, the City of Cincinnati has passed a budget, which originally was to get $25.8M from the parking lease deal, and found alternative funding sources for a number of the projects ($20M for MLK Interchange, $12M for 4th/Race Apartment Tower) involved in the original list.

The result is a $57.8 million question now put before Mayor Mallory’s Administration and City Council.

Categories
Business Development News Politics

Cincinnati Receives Federal Approval for Innovative Green Infrastructure CSO Fix

Last week the U.S. Environmental Protection Agency (EPA) approved the solution proposed by the Metropolitan Sewer District of Greater Cincinnati (MSD) for fixing its combined sewer overflows (CSOs) into the Mill Creek.

Cincinnati is one of many cities struggling to fix their CSOs, which are caused by a combination of higher water runoff and sewer systems that were designed to accommodate both stormwater runoff and sewage. What it means in real terms is that when there are heavy rain events, the stormwater fills up the sewers and then mixes with the sewage.

According to the EPA, raw sewage contains pathogens that threaten public health, leading to beach closures and public advisories against fishing and swimming, and is a problem that particularly affects older urban area.

Lick Run Project
MSD’s plan to reduce 1.5 billion gallons of CSOs from the Mill Creek will include the transformative Lick Run project in South Fairmount.

As a result, under a 2010 consent decree, the MSD was required to either construct a deep-tunnel system under Mill Creek, or conduct further analysis and propose an alternative plan. What is unique about Cincinnati’s approved plan is that it deviates from the standard ‘gray’ tunnel solution, and instead proposes using green infrastructure fixes to reduce stormwater runoff.

“We are very excited to move forward with our innovative wet weather solution that not only provides highly cost-effective compliance with our Consent Decree but simultaneously sets the groundwork to enhance our communities,” James A. “Tony” Parrott, MSD’s Executive Director, said in a prepared release.

In addition to the environmental benefits of Cincinnati’s alternative plan, it is also expected to save taxpayers approximately $200 million upfront and remove 1.78 billion gallons of CSOs annually from the Mill Creek.

The savings come from not building a new deep-tunnel system to accommodate the excess stormwater runoff, and instead aiming to reduce the amount of stormwater flowing into the sewer systems during heavy rains.

The green infrastructure solution being pursued by Cincinnati is already being viewed as a national model for other cities looking to clean up their waterways.

Lick Run View (Northwest) Lick Run View (Southwest)
The $192M Lick Run project would create a linear park through South Fairmount along a newly ‘daylighted’ stream. Images provided.

The hallmark feature of the plan is the $192 million Lick Run Project, which will ‘daylight’ the former creek through the heart of South Fairmount and creating a linear park that officials say will convey stormwater and natural drainage to the Mill Creek. This project alone is estimated to reduce overflows into the Mill Creek, from the largest CSO in the system, by 624 million gallons annually.

“This plan is good news for the residents of Cincinnati and for communities along the Ohio River,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Not only will this innovative plan ensure that significant volumes of polluted stormwater and raw sewage are kept out of local waterways, but it will also cost less than more traditional approaches, saving money for ratepayers and the city.”

In addition to the Lick Run Project, MSD’s phase one fixes will also include upgrades to the West Fork, Kings Run, and Bloody Run watersheds that will result in an additional 422 million gallons CSO reduction.

The combined phase one work is planned to take place over the next five years and is estimated to create nearly 1,000 full-time equivalent construction jobs.

MSD officials say that plans for phase two work will be submitted in 2017, and will aim to address CSOs in the Lower Mill Creek watershed. While the plans are not yet finalized, both MSD officials and regulators believe the final remedy will also use an integrated watershed plan approach.

Categories
Development News Politics

Smart Growth May Offer Cincinnati a Way Out of Its Structurally Imbalanced Budget

Land Use Budget ImpactsThe City of Cincinnati passed yet another structurally imbalanced budget late last week. At the meeting Vice Mayor Roxanne Qualls (C) and other council members admitted that the approved budget once again relied on a one-time fix to get the city through another budget cycle without significant layoffs and major funding cuts.

Despite having its hands tied in coming up with creative ways to find revenues, Cincinnati is not alone in dealing with this dilemma. Hundreds of cities across the nation are struggling with budget deficits with some much larger than ours.

Smart Growth America recently completed a national report, titled Building Better Budgets, with findings that could help many municipalities find long-term solutions to their budget crisis. The report makes three main arguments that smart growth development, described as compact, walkable and mixed-use overall save municipalities on upfront infrastructure costs, service costs and serve to increase the city’s tax base better than suburban style developments.

After reviewing a diverse collection of cities across America, such as Raleigh, NC,  Nashville, TN and Champagne, IL, the study found that smart growth development costs an average of 38% less for upfront infrastructure, saves municipalities an average of 10% on ongoing delivery of services, and generates approximately 10 times more tax revenue per acre when compared to conventional suburban development.

“These figures are conservative, and many communities could save even more,” authors of the report stated. “Smart growth development’s potential for lower costs and higher revenues means that many municipalities can operate smart growth development at a surplus rather than a deficit.”

How local projects stack up
Several projects on the horizon are poised to add to the tax base in Cincinnati’s urban core. Phase two of The Banks, dunhumbyUSA Centre, the 580 Building apartment conversion, hotels at the Bartlett Building and Enquirer Building, and proposed apartment buildings above Fountain Place and the parking garage at Seventh and Sycamore all offer the upfront infrastructure cost savings and long-term revenue advantages discussed in Smart Growth America’s report.

The redevelopment of the Pogue’s Garage into a 30-story apartment tower with a grocery store, and an 11-store Holiday Inn at Broadway and Eighth Street are two other projects that offer similar benefits, but are currently on hold due to the ongoing legal dispute surrounding the City of Cincinnati’s Parking Modernization & Lease Plan. Additionally, a slew of projects in Over-the-Rhine, Walnut Hills and Northside also appear poised to help stabilize the city’s finances thanks to their smart growth advantages.

Property Tax Yield

Not all is well, however, as many recent real estate investments throughout the city have taken the conventional suburban development approach. The Incline District in East Price Hill, Villages of Day Break in Bond Hill, Oakley Station in Oakley, MetroWest in Lower Price Hill, and developments along Red Bank Road in Madisonville all seem to be missing the bigger picture about the financial advantages of smart growth.

In addition to the actual footprint of the development, the report discusses the importance of a project’s site location.

“The per-acre measurement of tax revenue is extremely important because land is a precious commodity for every jurisdiction,” the report concluded. “It is true that in some cases the total dollar amount of tax revenue in conventional suburban settings can be very large, but those conventional suburban developments consume large amounts of land. Many cities in the United States have a constrained land supply and must husband their land resources carefully in order to protect their solvency.”

While many of the real estate investments throughout Cincinnati are being done in a smart manner, others seem to be squandering valuable urban land with suburban-style developments. The City of Cincinnati, and other cities around the region, might be able to make a long and sustained positive impact on their budgets by refusing to go forward with projects that offer an easy, short-term score, and instead demanding more sustainable development practices in their community.

Categories
Business Development News Transportation

VIDEO: Cincinnati Officials Celebrate Groundbreaking for $6.9M Uptown Transit District

Southwest Ohio Regional Transit Authority (SORTA) officials were joined by community members and political leaders from the City of Cincinnati this morning in Clifton Heights to celebrate the groundbreaking for the $6.9 million Uptown Transit District.

The Uptown Transit District, once complete by the end of 2013, will create a secondary hub for Metro bus service, and will allow the bus agency to continue to move away from its long-used ‘Spoke and Hub’ system that fed all routes to the Government Square Transit Center in the Central Business District.

Metro officials say that new routes, including the agency’s new Metro*Plus service, will utilize the new uptown transit hubs. Additionally, direct service from Metro’s Glenway Crossing Transit Center will be able to take advantage of the new facilities.

Transit officials believe the Uptown Transit District will be a critical improvement for the regional bus network, allowing more direct and better access to the region’s second largest employment center.

“It is a wonderful concept and I’m so pleased that Metro is undertaking this because we really need it,” explained Cincinnati City Councilmember Wendell Young (D). “Uptown is a very important economic engine in this city, with 50,000-plus jobs up here.”

The Uptown Transit District will include four distinct bus hubs throughout the area including the Clifton Heights Business District at Calhoun Street and Corbett Drive, Vine Street between Calhoun and McMillan Streets, Jefferson Street at University Avenue, and the Medical Center Area.

The stations will include enhanced shelters and will also include real-time arrival information.

“We’ll have informational kiosks that will provide real-time information…so therefore you know exactly when you can embark upon your destination,” Terry Garcia Crews, CEO of Metro, told the crowd at the ceremony. “We want to make sure that we’re designing a system that meets the needs of our consumers.”

Construction was originally anticipated to begin in April 2013. Approximately 72% of the funding was provided by the Federal Government with the remainder coming from the City of Cincinnati, Metro and the OKI Regional Council of Governments.

Categories
Business Development News

PHOTOS: U Square at The Loop Almost Entirely Leased

On Thursday Towne Properties partner Arn Bortz led the media on a tour of U Square @ The Loop, the $80 million mixed-use project stretching several blocks adjacent to the University of Cincinnati campus.

The project broke ground in January 2012 and a move-in date of August 1 is scheduled for apartments.

According to Bortz, the project’s street-level retail and upper floor apartments are each 85% leased. The project’s office space has been leased to the University of Cincinnati and talks are ongoing to attract a hotel to remaining space along McMillan Street.

The planned hotel for the site will be competing against a flurry of new hotel developments throughout Cincinnati’s urban core that are adding hundreds of new rooms to the market, including a proposed rehabilitation of Old St. George into a 60-70 bed hotel just blocks away.

Once completed, Bortz anticipates that the hotel at U Square @ The Loop to be approximately as tall as the apartment building on the project’s western block.

The developers also announced that the project achieved Leadership in Energy and Environmental Design (LEED) certification, which qualifies the project for a 15-year city tax abatement, due to its proximity to public transportation and a variety of design decisions including choice of windows and use of Energy Star appliances in apartment units.

Bortz also explained that the project’s two city-built parking garages will not be subject to any lease of the city’s parking facilities.

More than 20 retailers have been named as tenants of the 80,000 square feet of retail, including: Altar’d States, bd’s Mongolian Grill, Body Central, Chase Bank, Elephant Walk, Euro Wax, Firehouse Subs, Great Clips, Highway 55, Keystone Bar & Grill, Lime Fresh, Moksha Yoga, Mr. Sushi, Orange Leaf, Rally House, Rue 21, Starbucks, The Brass Tap and Waffle House.