Category: Development

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Business Development News

Redeveloped warehouse to include largest solar photovoltaic project in the Midwest

Cincinnati-based Neyer Properties is working on $4 million worth of improvement to a large structure along I-75 in Sharonville. The 1.1 million square-foot building will soon become a “major distribution hub” for Hamilton County while also becoming the largest solar photovoltaic project in the Midwest.

While officials expect the redevelopment of Gateway 75 to increase tax revenues and spark additional investments in downtown Sharonville, the development’s focus on sustainable building practices is what has caught the eye of many in the industry.

“Energy savings at Gateway will average 40 to 60 percent annually compared to power generated by fossil fuels,” said Dan Neyer, president of Neyer Properties. “This is a great opportunity for companies that want to lease space at a building that not only saves energy and the planet, but saves on utilities, too.”

In addition to the seven-megawatt solar plant on the roof of Gateway 75, developers hope to make the structure the first LEED-certified industrial building in Ohio and one of only 51 in the nation.

Once installed in 2011, the rooftop solar plant will be leased to a third-party, through a Power Purchase Agreement, that will operate the utility and then sell back the power to Neyer. Developers say that the solar energy generated at Gateway 75 is the equivalent of offsetting roughly 10 million pounds of carbon per year.

Sharonville officials also state that the successful completion of Gateway 75 will result in a major economic gain for the city, and as a result, have contributed $1.8 million in tax increment financing (TIF) to the project. A fully occupied structure, analysts say, will lower bulk warehouse vacancy rate in the Sharonville area from 30 percent to 6 percent.

Developers are finalizing improvements to the building now, and will complete the project as tenants are secured for the refurbished warehouse space.

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Business Development News

Home ReStart partnering with Neyer Properties to renovate, sell historic Cincinnati homes

Since the inception of Neyer Properties in 1995, the company has developed hundreds of projects totaling over $1 billion in both construction and development in the Cincinnati region.  While the company has typically focused on commercial development, they have begun investing in a new real-estate company called Home Restart. The relatively new endeavor specializes in buying distressed homes, making renovations, and re-selling the properties.

Over the past year, the company has purchased, renovated, and prepared seven houses for re-sale. In that time, they have intentionally focused their efforts in more desirable urban neighborhoods like Hyde Park, Oakley, Edgewood and Fort Thomas.  According to the company’s leadership, this was done to help make the projects successful in an otherwise difficult market.

“The housing market has taken a hit throughout the Greater Cincinnati area, but neighborhoods such as Hyde Park and Fort Thomas always have a relatively active market,” explained Anne Pond, Vice President of ReStart. “By focusing on these areas, we can decrease the number of days that our houses sit on the market.”

According to Pond, the large stock of historic homes in these neighborhoods is another key selling point, as they have a charm that cannot be replicated in new construction.

“Over the years, many older homes have fallen into disrepair and have been converted into two-family homes,” Pond continued. “We work very hard to maintain the charm and character of historic homes, while bringing them up-to-date for modern living.”

Pond says that ReStart typically purchases homes from anywhere between $50,000 and $200,000.  After the initial purchase, ReStart then renovates and sells the properties for prices ranging between $130,000 and $350,000. Following this work, ReStart then turns to Neyer Properties for its expertise in purchase approval, renovations, and finance management.

Of the seven homes purchased and renovated through the program thus far, five have been sold and another is currently under contract.

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Development News Politics Transportation

3C Rail not dead yet according to All Aboard Ohio leaders

Throughout his campaign for governor, Governor-Elect John Kasich (R) repeatedly stated that he had no intention of ever moving forward with the 3C Rail project, a train that would have connected Cleveland, Columbus, Cincinnati, and Dayton. So with Secretary LaHood’s announcement on Thursday that the $400 million for the 3C rail project was being taken away, he made Kasich’s campaign promise of “the train is dead” a reality, right?

Well, All Aboard Ohio, an advocacy group for inter-city travel in Ohio, is saying otherwise. In fact, in a press release they stated that the Dept. of Transportation is moving prematurely in redirecting the funds.

“Until grant agreements with the new state recipients have been signed, we don’t consider this a done deal,” said All Aboard Ohio President Bill Hutchison, noting that it often takes months to finalize such agreements.

With just under a month left in the term of Governor Ted Strickland (D), the nonprofit believes there is still time to act.

“We are calling for an open, honest dialogue between Governor Strickland, Governor-Elect Kasich and potential 3C partners to consider an alternative that could be instituted within the same time frame ODOT was expected to move forward with 3C,” said Hutchison.

Ironically, Thursday’s announcement came only hours after a plan to pursue the 3C project without state involvement was released. Created by All Aboard Ohio and others, the plan calls for the creation of a Joint Powers Authority (JPA). If created, the JPA would consist of local governments and transit authorities which could then grant a franchise to a private group who would operate the rail service. The group would finance the project through, among other things, revenue generated by station leases, food service, and advertising.

“With looming threats of unprecedented global oil shortages by 2015, the Baby Boom generation starting to turn 65 years old in 2011 and young Ohioans leaving for states that don’t force them to drive everywhere, now is not the time for Ohio leaders to let this money slip away,” Hutchison concluded.

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Development News Politics Transportation

Cincinnati secures full funding for first phase of modern streetcar system

The Transportation Review Advisory Council (TRAC) of the Ohio Department of Transportation (ODOT) announced yesterday that they have unanimously recommended an award of $35 million for the construction of phase one of the Cincinnati Streetcar. The $35 million award means that the first phase of Cincinnati’s modern streetcar system is now fully funded.

To date, the Cincinnati Streetcar has secured $150 million through a variety of public and private resources to fund the first phase of the system which is estimated to cost $128 million.

“Today was a great day for our streetcar project,” exclaimed Cincinnati Mayor Mark Mallory in an email yesterday. “We now have the full amount needed to complete the first phase. This will help grow our city and improve our financial future.”

In addition to $35 million for construction, TRAC also recommended $1.8 million for planning and preliminary engineering work for phase two of the project which will extend further throughout Cincinnati’s uptown neighborhoods.

The Cincinnati Streetcar project scored 84 out of a possible 100 points in TRAC’s ranking – by far the highest total of all transportation projects from around the state. As a result of that robust score, ODOT officials approved TRAC’s $15 million recommendation for the Cincinnati Streetcar project in May 2010.

During recent budget debates, some advocacy groups have lobbied against the Cincinnati Streetcar project and said that the money should be instead used for other purposes – mainly preserving police and fire sources.  City officials have responded by repeatedly stating that the capital funds identified for the Cincinnati Streetcar are restricted funds that can only be used on capital projects – not operating expenses like personnel. Furthermore, city officials also believe the streetcar investment will return an estimated $3 for every $1 invested.

“In light of the budget problems facing the city, I am convinced that we must use every economic development tool we can to bring residents, jobs, businesses – and tax revenue – to the city,” explained City Manager Milton Dohoney. “Together, the streetcar, casino, The Banks, 21c Hotel, and other investments generate bigger returns that will stabilize and grow our local economy.”

Once complete, the system will be managed and operated by the Southwest Ohio Regional Transit Authority which currently manages and operates Metro bus service. Phase one of the Cincinnati Streetcar is expected to take on its first passengers in spring 2013.

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Business Development News

Jimmy Heath House to start welcoming new residents to Over-the-Rhine today

These days, development news in Over-the-Rhine is seemingly ubiquitous. The historic neighborhood is growing at a rapid rate and with new businesses constantly opening; new residents are flowing in. However, starting today another group will be calling the neighborhood home.

On Friday, Over-the-Rhine Community Housing (OTRCH) hosted a ribbon cutting for the Jimmy Heath House (map). The new permanent supportive housing development transformed 14,300 square feet of space in six historic buildings. The housing development includes 25 apartments for the chronically homeless, offices for case managers, as well as public meeting spaces to accommodate the social service needs of its residents.

OTRCH officials say that the development, named after homeless advocate and former Streetvibes editor Jimmy Heath, is based on the housing first principle; a concept that clinical and social stabilization is more affective when homelessness is eliminated.

“Housing First is a nationally recognized evidence-based best practice. Many cities and counties around the country already have Housing First programs in place or plans to initiate one,” Mary Burke Rivers, OTRCH Director, said in a press release. “The positive outcomes from the model are astonishing, and we are proud of our partners who have joined us in this progress.”

The benefits, of these new housing developments, extend beyond their social benefits. Studies show that significant economic gains can be had as well by reducing the cost often associated with homeless individuals. On average, studies indicate that it costs between $35,000 and $150,000 annually to support a homeless individual, while housing communities such as the Jimmy Heath House lower that average to just over $16,000 annually.

“People who are chronically homeless make up 34 percent of the homeless population and spend years cycling between the streets, shelters, jail cells, and emergency rooms,” Rivers said.

Residents of the complex are scheduled to start moving in as early as today.

“We’re looking forward to the possibilities for our residents: being able to connect with family members for the first time in years, going to a clinic instead of the emergency room, not drinking just to numb the bitter cold,” said Andy Hutzel, director of housing services for OTRCH. “We have one tenant, Paul, who will be able to get off of crutches after nine years because he can finally rehabilitate an injury following his fall from a roof – an impossibility while he was living under the 6th Street viaduct.”