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Development News Opinion

Two Big Ideas to Bring Cincinnati’s Urban Housing Boom to Next Level

San Diego's East Village District [Google Street View]

It has become painfully clear that we are not building enough housing supply to meet demand for center city living. In order to meet those demands, and prevent runaway price increases, now is the time to go big and develop thousands of more units.

In 2014, CBRE released a study about the strength of Cincinnati’s urban real estate market, and noted that the center city housing market could support thousands of additional residential units, even as 2,500 were under development at that time.

This was reinforced by CBRE’s economic outlook for the region released just days ago that said, “The multifamily recovery continues with unabated strength in the Cincinnati MSA with strong demand fundamentals pushing rents higher.” With occupancy hovering around 95% and the strongest demand in the urban core, their real estate analysts expect rents to continue to rise.

As of now, 3CDC is virtually sold out of all of their condos, luxury apartment buildings are being filled in a matter of weeks, and a parade of home builders continues to redirect their attention to the market. But it has not been nearly enough.

While 3CDC has done an incredible job at establishing a viable residential market in Over-the-Rhine, they have only produced a few hundred units over the past decade. Bigger projects in the central business district are turning historic office towers into posh residences, but are doing so at about 100 units per project. Even the long-planned residential tower at Fourth and Race Streets will only include 208 units once it is complete several years from now.

The rate of production at The Banks, which is by far the largest development in the center city, only averages out to a couple dozen units per year when you consider the time it continues to take to build out that massive undertaking.

Something bigger is needed. Something much bigger. Here are two options.

City Hall Quarters
Cincinnati’s majestic City Hall is unfortunately surrounded by decrepit, low-slung parking garages and a smattering of parking lots. The area’s proud history, however, can still be seen by taking a leisurely walk along Ninth Street. There, one can view the regal structures that were the original homes of Cincinnati’s economic and political elite.

Just around the corner, however, is a collection of parking lots controlled by collection of different limited liability companies. The original owner of the lots, if it is different from now, had long-planned to build offices on the site similar in nature to what was developed on its north side along Central Parkway. That building was completed in 1983, and times have certainly changed since then.

The large collection of parking lots allows for a unique opportunity to create a residential sub-district within the central business district. Look to Atlanta’s West Midtown, Chicago’s South Loop or Denver’s Cherry Creek District of examples of the type of development that could rise here.

Its density would respect its historic surroundings, but its scale could provide hundreds of residential units. Instead of lining each street with retail, thoughtfully placed corner markets and cafes could be placed intermittently in order to maintain a residential character for the sub-district.

CL&N Heights
Like its Broadway Commons neighbor to the north, this area was once part of the large warehouse district that previously occupied the site with the CL&N Railway. Those proud buildings, and the history that went along with them, are now largely gone and have been replaced by I-71. There are, however, some of the historic warehouse structures that can still be seen in the Eighth Street Design District and immediately to the south.

This collection of parking lots is largely out of site since they sit beneath I-71 and at a lower grade than the rest of the central business district. Procter & Gamble currently owns the vast majority of the site, but Eagle Realty has recently acquired some land with the interest of building a parking structure along with some office space.

Unlike the City Hall Quarters site, this location has an opportunity to go even bigger.

In order to properly develop the location, it would make most sense to raise the site up to the same level as the rest of the surrounding street grid. This would essentially create a situation akin to The Banks, where two or so levels of parking could be built as a platform, with the structures then rising from there.

Instead of building four- to five-story structures, like at The Banks or near City Hall, this site would be an ideal location for a handful of sleek, modern residential high-rises. In this case, think of Vancouver’s Yaletown or San Diego’s East Village near their ballpark.

In this location it is conceivable that four to five residential towers could be constructed, while also preserving some land for pocket parks and other neighborhood amenities. At such a scale and density, this site alone could produce upwards of a thousand residential units.

Like the City Hall Quarters site, there would be no strong need to build retail as part of this project. Instead, a small collection of service offerings, like dry cleaners and convenience stores, could be built as part of the development, thus allowing the new influx of residents to bolster the existing and potential retail offerings in the central business district and Over-the-Rhine.

Both development sites include their challenges, but they offer immense opportunities to not only provide the much-needed injection of housing, but also improve the city’s tax base, hold down skyrocketing residential prices, bolster center city retail, and rid the city of two of its largest-remaining surface parking lots.

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Business News

Cincinnati Fares Poorly When Examining Centralization of Jobs Throughout Region

A December 2014 Salon article, using statistics from an April, 2013 Brookings Institute report shed light on an increasingly-present paradox in the American economy – America’s next generation of workers prefers urban living, but jobs tend to be decentralized and located far from most region’s urban center.

The report found that from 2000 to 2007 the share of jobs located within two miles of a major urban area’s central business district declined 2%; and that by 2010, a nationwide average of 43% of jobs were located at least 10 miles from the CBD. Only 24% of jobs, meanwhile, were located within two miles of most regions’ primary downtown.

The pattern is more acute in Cincinnati than in most other metropolitan areas, where a robust urban turnaround has been taking place. Compared to the national average of 22.9%, only 17.7% of the region’s jobs were located within three miles of the CBD, which in Cincinnati’s case would also include Uptown. Furthermore, 52.8% of the region’s jobs, approximately 452,000, lie between 10 and 35 miles from downtown.

In the first decade of the new century, which was defined nationally by the huge job losses of the Great Recession, the Cincinnati region lost a total of 76,845 jobs. Of those, 67,122 were within 10 miles of the CBD. While total jobs declined 8.2%, the jobs within 10 to 35 miles of downtown Cincinnati increased 3.3%, with both other areas experiencing declines.

While these recent gains tend to buck the national trend, the Cincinnati region’s employment remains more sprawled than the average American metropolitan area. But while the region has fewer jobs than average within 10 miles its CBD, the Cincinnati region has more jobs within 10 to 35 miles than all but three Midwestern regions (Detroit – 77.4%, Chicago – 67.4%, St. Louis – 62.1%). Columbus and Cleveland come in at 35.4% and 46.5%, respectively.

What this seems to indicate is that Cincinnati has a lower reliance on jobs from manufacturing and agricultural industries than most of its Midwestern peers.

The Brookings Institute went on to find that the Great Recession stalled this trend across the board, as hard-hit industries like manufacturing and retail tend to be the most decentralized. Yet, from 2000 to 2010, 91 of the largest metropolitan areas in the nation saw the number of jobs within three miles of their CBD decline.

Washington, DC, which serves as a national economic outlier for its massive job and wage growth, was the only metropolitan area that saw downtown jobs rise as both a percentage and gross number.

Researchers say that the land-use and zoning policies of each metropolitan area affect the geographical characteristics of jobs within that area. While metropolitan areas with over 500,000 jobs tend to be more decentralized, large metropolitan regions like Chicago, Atlanta or Detroit include large secondary clusters of employment outside of their traditional downtown.

While talented young workers increasingly show their preference for walkable urban communities, jobs continue to decentralize throughout the United States. This distribution creates problems for the region in terms of building and maintaining infrastructure. It also does not bode well for more sprawled regions, like Cincinnati, in terms of being able to attract a new workforce to take the place of aging Baby Boomers.

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Up To Speed

Should Cincinnati look to Chicago’s new ARO for affordable housing guidance?

Should Cincinnati look to Chicago’s new ARO for affordable housing guidance?.

Cincinnati has experienced rising property values in a handful Census tracts in recent years, while dozens remain below median values for the region. So unlike New York or San Francisco, the gentrification taking place in Cincinnati is not what typically comes to mind when the topic is discussed. A more apt comparison may be Chicago where a more extreme version of rising property values stand in contrast to swaths of the city that remain mired in poverty, and new policies are moving forward to address the matter. More from NextCity:

The new ARO would require that at least 25 percent of affordable units be built on site, removing the ability to opt out totally. City neighborhoods would be classified into “downtown,” “high-income” and “low-moderate income,” and the in-lieu fee for the remaining 75 percent of units, if a developer chooses that option, would rise to $175,000 downtown and $125,000 in high-income areas; it would fall to $50,000 in the rest of the city. Developers would also be allowed to meet the affordable unit requirement by building or rehabbing on other lots within a mile of the main site. The aim is to create affordable units in the neighborhoods where they’re most scarce, rather than to continue to concentrate them in the city’s poorer communities.

That goal reflects what makes Chicago’s affordable housing crisis different than the ones in a handful of coastal cities that have dominated national coverage. In many Chicago neighborhoods, depopulation, disinvestment, segregation and crime have kept housing values relatively low, even just a few miles from the booming downtown. Meanwhile, communities on the North Side — as well as a handful to the south and west of the Loop — have seen rapid gentrification and skyrocketing rents. That dynamic has led to a dramatic increase in economic segregation.

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Up To Speed

American cities should be more concerned about spreading poverty, not gentrification

American cities should be more concerned about spreading poverty, not gentrification.

Gentrification is one of those topics that is difficult to write about. Simply mentioning the word or hinting at its existence is sure to stir the pot and draw a wildfire of comments, both defending and condemning it. What is often left out of the discussion, however, is that the gentrification we all imagine in our minds when we hear the word is essentially confined to just three metropolitan regions in America. As a result, the bigger concern for most cities should actually be their widespread poverty. More from Vox:

That share of people living in high-poverty neighborhoods isn’t huge — around 8.9 percent of all Americans living in poverty in 2010, according to US Census Bureau data. But the population of high-poverty neighborhoods has doubled since 1970, from 2 to 4 million. Over that same period, the US population as a whole grew by around 50 percent. In addition, the number of high-poverty census tracts in cities nearly tripled from 1,100 to 3,100.

As City Observatory highlights, we often think of gentrification as a big threat to urban areas, driving up the cost of living for people living in poorer areas and eventually forcing them out. You would think that’d lead to a lot of these neighborhoods rebounding out of poverty, albeit with mixed consequences for people there originally. But it appears the bigger threat by far is neighborhoods remaining mired in poverty and new neighborhoods falling into it.

Categories
News Transportation

Support Continues to Grow for Daily Train Service Between Cincinnati and Chicago

November 2014 SW Ohio All Aboard Ohio Meeting [Travis Estell]

Midwest Regional Rail ServiceOhio is surprisingly one of the nation’s least-served states by intercity passenger rail service, but All Aboard Ohio is working to change that.

Perhaps best well known for their fruitless advocacy for the 3C Corridor – an intercity passenger rail line that would have linked Ohio’s largest cities – All Aboard Ohio has regained relevancy as of late. While continually advocating for improvements on existing Amtrak service across the northern reaches of the state, the non-profit organization has also become increasingly involved with efforts to establish rail service between Columbus and Chicago, and Cincinnati and Chicago.

Columbus currently has no connections to the capital of the economically robust Great Lakes region, but Cincinnati does, albeit ever so slightly. As of now, Cincinnatians can get to Chicago via the scrappy three-day-a-week train service offered on Amtrak’s Cardinal Route. In addition to not being daily service, trains infamously arrive and depart in the middle of the night.

This is something, however, that area leaders and All Aboard Ohio officials are working to change. One potential example, they say, is to extend existing service offered on Amtrak’s Hoosier Route. The combination of Amtrak’s Cardinal and Hoosier routes offers Indianapolis daily service to Chicago. From there, the hope is to make gradual improvements to bring the service up to 110mph speeds.

“There is a buzz and excitement in southwest Ohio about connecting to Indy and Chicago that is palpable,” explained Derek Bauman, SW Ohio Director for All Aboard Ohio. “Even those that have not necessarily been fans of previous rail projects see the necessity of connecting to Chicago – the business and commerce epicenter of the U.S. between the coasts.”

The energy Bauman speaks of was recently seen at an area meeting held by All Aboard Ohio at the Christian Moerlein Tap Room in Over-the-Rhine. According to Ken Prendergast, Executive Director of All Aboard Ohio, such meetings are typically pretty dull, but this was not the case in Cincinnati.

“Our free local meetings are usually less extravagant than our statewide meetings, and are more akin to briefing or coordination gatherings,” Prendergast told UrbanCincy. “They generally only draw a dozen or two dozen people, so this meeting’s attendance was pretty good.”

All Aboard Ohio welcomed Cincinnati City Councilwoman Amy Murray (R) as their special guest. Over the past few months Murray has taken on a bit of a leadership role in the discussion about establishing daily rail service to Indianapolis and onward to Chicago. Her leadership has also come at a time when Hamilton County Commissioners, in a surprising fashion, voted unanimously in favor of studying the establishment of such service.

Bauman says that All Aboard Ohio has been working with the OKI Regional Council of Governments on a potential scope and funding plan for a feasibility study on the manner, following the unanimous vote from Greg Hartmann (R), Todd Portune (D) and Chris Monzel (R). He says that the group has also been meeting with local jurisdictions and business leaders to grow support even further.

“A big part of this is educating stakeholders on what our competitor regions throughout the Midwest are doing,” said Bauman. “For example, Detroit has three Amtrak roundtrips a day, Milwaukee has seven, St. Louis has five, and even Carbondale, IL has three. Simply put, we are being left behind.”

Some of that recent outreach has included both Hamilton and Oxford – communities that sit along the existing Cardinal Route and would be prime candidates for stops in a case where service is enhanced. To that extent, both communities, in addition to Miami University, have expressed their support for the effort. Now, according to Bauman, the next steps are to reach out to Xavier University and the University of Cincinnati.

“As we continue to work with business and government leaders toward establishing at least daily service to Cincinnati, coordinating with our regional institutions of higher learning will be a growing and vital piece of our advocacy partnership focus,” Bauman explained. “Bringing back proper inter-city rail services will be transformative for our region and positively impact the lives of people.”