Tag: 3CDC

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Development News

New Market Tax Credits Key to City’s Revival

Cincinnati’s development coffers got a little fatter last week, as $125 million in federal tax subsidies flooded into the city. These subsidies, called New Market Tax Credits (NMTCs), incentivize local investors to funnel capital into low-income communities and have essentially bankrolled Over-the-Rhine’s entire revitalization.

For example, Washington Park — perhaps the most emblematic example of OTR’s rebirth — received nearly $14 million in New Market Tax Credits (NMTC) from the Local Initiatives Support Coalition (LISC) to help support its reconstruction. Several ongoing developments have also received some or all of their funding through NMTCs, including the Market Square and Ziegler Park projects.

Ziegler Park Aerial
New Market Tax Credits helped transform parts of Over-the-Rhine like the reconstruction of Ziegler Park (Photo by Travis Estell)

Developers often balk at the prospect of developing low-income communities because they fear their investment will be wasted. NMTC are the federal government’s attempts to allay these concerns. Congress first authorized the subsidies through the Community Renewal Tax Relief Act of 2000. Over the past fifteen years, the bill’s success has earned it bipartisan support. According to the program’s 2016 report, the tax credits have created 750,000 jobs and invested over $75 billion to businesses and revitalization projects in communities with high rates of poverty and unemployment.

Less than 25 percent of the applications submitted each year are awarded, but three major Cincinnati developers beat the odds this year: Cincinnati Development Fund ($65 million), Uptown Consortium (45 million), and the Kroger Community Development Entity ($15 million).

To win an NMTC grant, a corporation — in federal parlance, Community Development Entities (CDE) — must lobby the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund on behalf of private investors like the Cincinnati Center City Development Corporation (3CDC). If the CDFI approves the application, then the investors who pledged money to the CDE will receive a seven-year tax abatement to support development.

3CDC, in particular, has secured a eye-popping $238 million since the program’s inception. Without this capital, it’s unlikely that OTR would have changed as drastically as it has. The community was a no-brainer for NMTC-driven development due to its extreme poverty. The neighborhood’s median household income during the 2010 census was a paltry $14,517. Six years and billions of dollars have certainly improved its lot, but its average income still pales in comparison to the city’s 2015 median income, $56,826.

While OTR will likely continue to receive the majority of NMTC-driven development, other distressed neighborhoods are receiving attention. According to Director of Development Thea Munchel, the Walnut Hills Redevelopment Foundation expects approximately $6.5 million in NMTC Equity for its expected revitalization of Paramount Square. “It is too early to know who all will participate in the deal,” she said. “But Cincinnati Development Fund received a huge award and has indicated that they will contribute some into the project.”

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Development News

PHOTOS: 16 Panorama Showing Over-the-Rhine’s Evolution

Cincinnati's Music Hall will close in May 2016 to undergo a $129 million renovation.

As the winter comes to an end, work has begun or will soon begin on a number of new developments around Over-the-Rhine. Today, we’re sharing 16 panoramas, taken over the past month, that show how the neighborhood is evolving. You can click on each of the images to view them full-screen and read the full description about each project.

Editor’s note: These photos were taken by Travis Estell for UrbanCincy between February 11 and March 8, 2016.

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Development News Transportation

Cincinnati’s Mandatory Minimum Parking Requirements Stall $15M Development

An Over-the-Rhine development has hit a potential challenge after a 3-3 vote at last month’s Historic Conservation Board meeting.

Grandin Properties had been planning to convert the historic Strietmann Biscuit Company building, located at 221 W. Twelfth Street, to an 88,000-square-foot office building, but must now request a zone change since it does not meeting the city’s mandatory minimum parking requirements.

In a strange twist, the vote from the Historic Conservation Board actually threatens the historic nature of the building and the surrounding neighborhood, as providing the parking being requested would necessitate that a portion of the building be converted to parking, or a nearby historic structure be demolished to make room for a parking structure.

As such, the developer is requesting to rezone the property from CC-A (Community Commercial – Automotive) to DD-C (Downtown Development – Support), which would give Grandin Properties more flexibility when it comes to the provision of parking.

In a letter submitted to City Council, the developer indicated that despite entering into agreements with 3CDC to secure 175 parking spaces for the development, which is a five-minute walk from the Washington Park Garage and City Center Garage, a split vote for a parking variance may imperil the project if the zone change is not secured.

Further supporting the developer’s case is the fact that the 126-year-old structure is located within a short walk to numerous Red Bike and Cincinnati Streetcar stations; and the location’s Walk Score is 94 out of 100 points.

“We were aware of the long history of not enforcing strict compliance with the zoning code’s parking requirements in Over-the-Rhine for both rehabilitated and new buildings,” Peg Wyant, President and CEO of Grandin Properties, wrote. “This is why we were surprised when City staff took a very hard position and required that we have guaranteed control over parking spaces ‘for the life of the project.’”

The development was slated to move forward, despite losing out on almost $2 million in historic tax credits from the state last year.

Following UrbanCincy‘s 2012 report on mandatory minimum parking requirements, City Council moved to study removing parking requirements in Downtown and Over-the-Rhine; and, in 2013, the City amended the zoning regulations to allow for both neighborhoods to remove required parking minimums with the passage of a special parking district zone. However, there has been no establishment of any special parking district zone to-date.

Further complicating the matter of parking in Over-the-Rhine is the fact that a workable Parking Permit Plan has yet to move through City Hall. While neighborhood residents and business owners have spent months developing a variety of alternatives, each has met its demise with the threat of Mayor John Cranley‘s (D) veto, which he says is due to permit prices being set too low.

As a result, parking remains a hot topic in one of the nation’s fastest developing neighborhoods. Many local developers still believe there is a market demand for one to two spaces per residential unit, while transportation options and the walkability of the neighborhood continue to improve. The increased number of visitors, including both workers and those coming to shop and dine in the neighborhood, is adding increased pressure since many residents in historic buildings utilize on-street parking to store their cars.

The next step for the project is that it will go before City Council’s Neighborhoods Committee for its potential rezoning application.

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Development News

Proposed Development at Fifteenth & Vine Lives Up to 3CDC’s Parking Promises

Rendering of Fifteenth & Vine [Provided]

When 3CDC first began developing the 359-space Mercer Commons Garage in 2012, they defended their actions for building such an over-sized garage by saying they would share the spaces with other planned nearby developments.

Nearly three-and-a-half years have passed since that time, but it is now becoming clear that 3CDC has largely lived up to the promises they made at the time.

When first criticized by UrbanCincy, 3CDC noted that the spaces at the Mercer Commons Garage were meant not only for the $50 million Mercer Commons development, but also the office space at the Paint Building, Cintrifuse, and former Boss Cox building. In total, 3CDC’s former Vice President of Development, Adam Gelter, estimated that those projects alone would need 90 to 100 spaces.

In addition to that, 3CDC’s previous plans for the former Smitty’s site called for 30 to 40 residential units, which would also have their parking provided for at the Mercer Commons Garage. Since that time, those plans have evolved, and 3CDC is now proposing a 55,000-square-foot office and retail building, which, by law, would require 155 parking spaces – much more than would have been required under the previous residential scheme.

City officials say that a potential 77-space reduction may be permitted due to the existence of the nearby Mercer Commons Garage and Washington Park Garage, which have an availability of 141 and 14 spaces, respectively.

Should 3CDC pursue to utilize those two garages to their fullest extent, then it would be feasible for the non-profit development organization to avoid providing any parking at all in the $16 million project slated for the southwest corner of Fifteenth and Vine Streets.

In addition to being located to two nearby parking garages, this site is directly across the street from a Kroger grocery store, located a block away from the Cincinnati Streetcar’s first phase, and within blocks of several Red Bike stations.

With a Walk Score of 96 out of 100 points, the proposed unnamed development at Fifteenth and Vine Streets boasts one of the most walkable locations in the region.

If all goes according to plan, and 3CDC is granted their zoning variances by City Hall, then project officials say they hope to begin construction as soon as possible, with a project completion scheduled for mid-2017.

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Business Development News

Grandin Properties To Celebrate Ribbon Cutting For $2M Hogan Building Restoration

Interior Courtyard at the Hogan Building [Provided]

Roughly two years ago UrbanCincy reported that Grandin Properties had been awarded nearly $400,000 in historic tax credits from the Ohio Development Services Agency. The past 24 months have proved fruitful, and neighborhood leaders now intend to celebrate a ribbon cutting for the $2 million project on Tuesday.

The developers say that the Hogan Building is already 50% leased, and that the 12 residences range from $995 per month for one-bedroom units, up to $2,395 per month for two-story, two-bedroom units with decks.

The restoration work brings two historic structures back to life that are now 138-years-old.

The project is named after Ohio Attorney General Timothy Hogan for his courageous role in defending German immigrants during the anti-German hysteria during World War I. Interestingly enough, Hogan is also the grandfather of Peg Wyant – the Founder and CEO of Grandin Properties.

“Few in any age have the courage to stand up to such hysteria,” Wyant said. “On behalf of two high school teachers of German, he filed suit against Ohio demanding preservation of the right to speak and use and teach the language of ones choosing.”

Wyant went on to say that Hogan won that case, which has since become known as the German School case in the Supreme Court of the United States.

The Hogan Building, of course, also represents a win for the State of Ohio’s bold historic tax credit program which is seen as saving hundreds of buildings and spurring millions of private investment throughout the state.

“This is public-private money coming together,” explained David Goodman, Director of the Ohio Development Services Agency. “Saving historic buildings strengthens Ohio’s communities which attracts businesses and visitors to the state.”

The conclusion of work at the Hogan Building also comes just after Grandin Properties announced an intention to raise $5 million to $10 million in private equity to spur even more redevelopment work in Over-the-Rhine. To date, Grandin Properties has completed seven projects tallying nearly $10 million in private investments.

Denis Back served as the project architect, while Hudepohl Construction worked as the general contractor. The property was sold to Grandin Properties by 3CDC. It was financed through PNC, with financial support from the City of Cincinnati and Ohio Development Services Agency.

Those interested in touring the remaining available units can do so by contacting leasing@grandinproperties.com or (513) 871-7110. Those looking to participate in the ribbon cutting festivities are encouraged to arrive at the project site, located at 1317 and 1319 Republic Street, by 10:30am on Tuesday, January 12.