Tag: economic

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Business News Opinion Politics

EDITORIAL: Cincinnati Leaders Should Implement a PAYT Waste Management System

As the new mayor and city council continue to get settled in to their new offices, we would like to suggest a policy reform that should be enacted immediately to help improve the city’s environment, balance its budget and give residents and businesses greater flexibility in terms of their trash collection.

Since the city debuted its new system of trash collection, it has been riddled with complaints from upset citizens and business owners unhappy about not being able to throw away the amount of trash that they generate. This is a problem since reports of illegal dumping have picked up in various neighborhoods.

At the same time, the new system represents an improvement over the old in terms of its efficiency. The city is now able to reduce staff levels on each garage truck, avoid safety risks associated with employees lifting and maneuvering heavy trash cans, and boost recycling rates. All of these reforms save the city money and help the city protect its workers from injury on the job.

In order to resolve the ongoing issues, while also preserving the advances that have been made, UrbanCincy urges the new mayor and city council to immediately implement a Pay As You Throw (PAYT) system.

Such a system is supported by the U.S. Environmental Protection Agency (USEPA) for its environmental sustainability, economic sustainability and its equity. What the USEPA has noticed is that communities using such a system have realized increased recycling rates, balanced and consistent revenue streams for municipalities looking to offset the costs of their waste collection, and improved equity in terms of how payments are made by the diverse range of users in the system.

As of 2006, USEPA data showed that 243 communities throughout Ohio were utilizing a PAYT system. Cincinnati should be the next.

When implementing a PAYT system, communities are able to choose from charging users a specific fee per bag or can of waste they generate. In communities where the capabilities are available, like Cincinnati, officials can be more precise and charge residents based on the weight of trash they generate.

Due to the potential complexities and higher administrative costs of managing such a variable-rate system, we recommend that city officials set a base rate for each 64-gallon can, with fixed prices for each additional can after that.

This is both a fair and effective means of managing waste collection. It allows users to generate as much or as little trash as they desire without any fear of exceeding the size constraints of their trash can. Those who recycle more, and discard less, are rewarded with lower fees.

If the new mayor and city council would like to pursue a version of this approach that could benefit low-income communities, then we would recommend developing a partnership with a local company or organization, or pursue grant money, that could cover the costs of any user within the city’s established empowerment zones. This would allow the city to continue to improve its financial standing and service delivery, while also working to aid residents and businesses within the neighborhoods that need it most.

In the last full year of budget data, the City of Cincinnati spent $11,320,530 on its Waste Collections Program. This was a $758,740 reduction from the previous year’s expenditures due largely to the elimination of 12 full-time equivalent staff positions. Meanwhile, there is no direct revenue source to pay for this program.

Of course, COAST and its allies successfully pushed through a broadly written Charter amendment in 2011 (Issue 47), which was opposed by the Cincinnati Regional Chamber of Commerce, that prohibits the City from assessing, levying, or collecting taxes or general assessment on real properties, or against the owners or occupants thereof, for the collection of trash, garbage, waste, rubbish or refuse.

What this means is that the City is permanently stuck with an $11-12 million hole in its budget every year. Most communities around the nation and throughout the region already charge their residents and businesses directly for waste collection. Cincinnati has been unique in being able to not directly charge for this service, but times have changed, and so must its policies. Waste collection should collect as much in revenue as is reasonable to help offset the costs to administer the program.

If the new mayor and city council want to get real about passing a structurally balanced budget while not severely degrading the services it provides its residents and businesses, then there should be no question about whether or not to implement a PAYT system as quickly as possible. We cannot afford to let allow an $11.3 million hole sit in our budget.

Implementing a Pay As You Throw system will help structurally balance the city’s budget. It will help improve our environment and the health of our communities. And it will improve the lives for Cincinnati residents and businesses who demand high quality public services with the flexibility they desire in their day-to-day lives. And most importantly, it has the ability to do all of this in an equitable manner for all Cincinnatians.

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Business Development News

$5M Mabley Place Project is First Phase of 4th & Race Transformation

Demolition and reconstruction of the old Tower Place Mall, now named Mabley Place, began December 16 with the installation of construction fencing around the perimeter of the old mall at Fourth and Race Streets.

Demolition of Pogue’s Garage, however, will not begin until the conversion of the mall is complete. Once the parking garage is removed, it will clear the way for construction of the 30-story apartment tower planned for the site.

Tower Place Mall, which was purchased by the city early last year for $8.5 million, came attached with the deteriorating eight-story Pogue’s Garage. Originally constructed to serve as parking for the namesake department store across the street at the intersection. The department store closed and was replaced by the mall in the 1980’s.

The mall building also supported its own parking expansion that currently is only accessible via a skybridge from the Pogue’s Garage. The parking spaces above the old mall will remain open during construction.

“The 525 parking spaces that currently exist above Tower Place Mall must be able to be accessible by other means prior to the demolition of the Pogue’s Garage. Right now, the only way to access those spaces is through Pogue’s, so the interior ramping at TPM must be completed first,” explained Stephen Dronen with the city’s Department of Trade and Development.

City officials expect the $5 million Mabley Place project to take six to nine months, and are optimistic that the parking structure will open by June. In addition to the parking, the project will include 8,400 square feet of street-level retail. One retail space has already been leased.

From there, developers of the Pogue’s Garage site can begin the laborious task of taking down the parking structure.

Due to its close proximity to other buildings, and the fact that it does not have a basement, engineers say that the garage cannot be imploded and must rather be demolished conventionally. The city estimates the demolition will take about four months and should begin this summer.

Flaherty & Collins is the lead developer on the new 300-unit apartment tower that will also include 1,000 parking spaces and 16,000 square feet for an independent upscale grocery store.

Construction is expected to commence immediately following the demolition of the garage, with the potential for a tiered opening of the garage prior to the residential tower above. Under such a model, the grocery store and parking garage components could open in early 2016, while the high-rise residential tower would open near the end of 2016 or the beginning of 2017.

Although the redevelopment project was originally planned to be funded through the long-term lease of the city’s parking assets, the deal evolved to no longer require funding from the now cancelled lease. As a result, the project is being funded private financing and a $12 million forgivable loan that, city officials say, is contingent on the satisfactory completion of the project and completion and operation of a first-class grocery store on the ground retail floor of the project for at least five years.

Photographs by Elizabeth Schmidt for UrbanCincy.

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Up To Speed

Are pay-per-minute cafes the next generation of coworking spaces?

Are pay-per-minute cafes the next generation of coworking spaces?.

Cincinnati has seen its ups and downs with coworking spaces, including our favorite but now closed Cincy Coworks in Walnut Hills. The idea was and still is great – especially for the growing number of freelance or independent professionals who would like a space to work that isn’t either their living room couch or a congested coffee shop. Well this new company out of Russian has a slight twist on the traditional coworking space, if you can call coworking spaces traditional. What they do is operate a bit like a coworking space and a bit like a café, but instead of charging monthly memberships or for the latte; they charge users for occupying the space. More from Grist:

Ziferblat, a Russian company that just opened its first branch in London, works on an unusual premise: It charges you for the time you spend in its space, rather than what you consume there…The charge for the space is 3 pence (about 5 cents) per minute, and it works out to about the same rate you’d pay in a coffee shop, if you bought a small item for every hour to 90 minutes you linger. But it’s your choice — do you actually need a fancy latte? Do you want a sandwich? If you’re not hungry or caffeine-deprived and you just want a space to work or hang out — well, that’s all that’s required here. It’s sort of like a private park, but inside and with couches and free coffee.

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Business News

Small Businesses Have Been Biting the Dust Early in 2014

Small Business ClosuresA staggering number of small businesses in Greater Cincinnati have resolved to shut their doors at the start of 2014. Already more than a dozen establishments have been effected since late last year in a downturn that has not been as drastic since 2008.

Cord Camera was the first to announce it would close. Once prosperous with over 30 stores in Ohio and Indiana, its remaining eight retailers struggled to meet expectations during the holiday shopping season. Chief Financial Officer, John Crotty, said the company’s demise was due to the increasing popularity of digital photography with smartphones and less demand for printing pictures.

The next was the shocking departure of It’s Just Crepes, with a vague note on their website that read “Thanks for a great five years!” The eatery had expanded to three locations, two downtown and another in Crescent Springs, and appeared to be constantly bustling during lunchtime. Both of the restaurant’s Facebook and Twitter accounts were shut down without notice, and the owners have not been able to be reached for comment.

Decorative retailer, Joseph Williams Home, began sounding the alarm in the fourth quarter, discounting items up to 60% off through the end of December. Owner Fred Arrowood explained that his five year lease was ending for his space at the corner of Thirteenth and Vine Street in Over-the-Rhine. Upon renegotiating, he was unable to come to an agreement for another five-year lease with the Cincinnati Center City Development Corporation (3CDC), who wanted to increase rent despite the store’s marginal sales.

“3CDC has become focused on restaurants and bars rather than retail and meeting the needs of residents,” said Arrowood. In an interview with the Cincinnati Business Courier, Anastatia Mileham, Vice President of Communications for 3CDC, attributed the increase in rent to high demand for prime real estate in Over-the-Rhine, like Arrowood’s corner store location.

Further complicating the matter locally was a combination of aging owners and slow sales, such as was the case with Chez Nora in Covington. Just shy of its 20th Anniversary, the three-floor restaurant and jazz bar never recovered from the economic decline and lost too many customers to competition across the river.

“We got culinarily passed by,” said owner Jimmy Gillece of the new eateries that developed as part of The Banks and revitalization of Over-the-Rhine.

Down the street, Behle Street Café succumbed to a similar fate. After 19 years in operation, the loss of two major companies in Covington and new competition at The Banks and in Over-the-Rhine, prompted owner Shawn Thomas to close the restaurant. “We just couldn’t keep up. Although great for Cincinnati, it’s not so good for Covington,” he stated in a release.

The litany of other lost businesses continues to grow, including: Enzo’s (Over-the-Rhine), Bayou Fish House (Newport), Spare Time Grill (Alexandria), Take The Cake (Northside), Fabulous Finds For Less (Bellevue), Mayberry (Over-the-Rhine), Smartfish Studio (Over-the-Rhine), and Past & Presents (Bellevue).

Not all the news is grim, however, as many of these locations have either already been filled by another local business, or will be soon.

Five years is traditionally the make or break point for small businesses – businesses that exist to generate a customer. It will be increasingly important going forward that entrepreneurs are creating shops that meet the demand of a community and allow for the businesses to be sustainable.

But as businesses continue to reach the end of their tenure and evaluate progress, consumers should brace themselves for the trend of closings to continue.

Next up on the chopping block will be vintage clothing shop Atomic Number Ten, which closes its doors on Saturday, January 18. Located at Thirteenth and Main Street in Over-the-Rhine, owner Katie Garber simply stated that it was time to move on to bigger and better things. “We really hope you can make it in to say goodbye,” Garber wrote to her customers in a blog post. “It’s been a great ride!”

Categories
Business Development News Politics Transportation

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.