Tag: John Cranley

Categories
Development News

Revised Agreement for Redevelopment of Pogue’s Garage Poised to Advance This Week

More than a year after an initial deal was proposed to redevelop the aging Pogue’s Garage site into a sleek residential tower, a new deal may actually move forward that will allow for construction to finally move forward.

In November 2013, the City of Cincinnati had entered into a Development Agreement with Flaherty & Collins to build a 15,000-square-foot grocery store, 950-space parking garage and a soaring 30-story residential tower with 300 units costing $94 million. As part of this deal, the City had committed to providing a $12 million forgivable loan to the project. This came after an initial deal to fund the project through the proceeds generated by the then proposed Parking Modernization & Lease program.

The Parking Modernization & Lease program, however, was almost immediately cancelled upon the arrival of Mayor John Cranley (D); who then subsequently stated that the $12 million forgivable loan for the project was “too rich”, and that the entire project should be rethought.

This led to the engagement of the Cincinnati Center City Development Corporation (3CDC), and the new deal that will go before City Council’s Neighborhoods Committee, chaired by Vice Mayor David Mann (D), at 2pm today.

According to a leaked memo from City Manager Harry Black’s office, the new deal is substantially different from the previous Development Agreement. Instead it calls for a $5.5 million grant to Flaherty & Collins to construct an eight-floor residential tower including 208 units, and a $4 million loan to 3CDC to construct a 925-space parking garage and 25,000 square feet of street-level retail space.

The Cranley Administration is touting the deal as a savings for taxpayers, while also not sacrificing too much.

“We inherited an overly rich deal,” Jay Kincaid, Mayor Cranley’s Chief of Staff, told UrbanCincy. “This new deal saves taxpayers $6.5 million, and gives the City control over the garage.”

Much of the savings is realized through the changes to the parking agreement. The previous deal provided the developer a grant to build and operate the parking structure, while the new deal utilizes a $4 million performing loan to be repaid later by 3CDC. Once the loan is paid off, the revenue stream from the parking structure would be shared by the three parties.

The emergency ordinance that will be put before the Neighborhoods Committee today, and then most likely be voted on by the full City Council on Wednesday, also includes a 30-year property tax abatement for the apartment component.

As of now, property tax abatements in Downtown and Over-the-Rhine filter 25% to Cincinnati Public Schools, with the remaining 75% being the actual realized abatement. Starting on January 1, 2015, however, that latter number would be reduced to 67.5% with the 7.5% difference being put into a fund to help cover the costs of operating and maintaining the Cincinnati Streetcar.

With the development losing approximately two-thirds of its height, but only one-third of its number of residential units, it signals that the new development will look quite different than the initial renderings released to the public. The final result may mean smaller residential unit sizes or a wider tower that utilizes more of the site’s footprint.

Yet unanswered is what will happen with Paragon Salon, which has remained in operation at the site despite being served eviction notices from the City. Since the original Development Agreement was signed more than a year ago, the owners of Paragon have claimed the City is violating their lease agreement, and has requested assistance in finding a new location. The City, meanwhile, has rebuffed Paragon and said they will not submit to paying for the costs of its relocation.

One item previously holding up construction on this still unnamed project was the redevelopment of Tower Place Mall into Mabley Place. Now that the parking garage is complete and open for business, City leaders say they feel more confident in closing down Pogue’s Garage to allow for construction to commence.

Categories
News Transportation

System Designs Unveiled, Operating Agreement Reached for Cincinnati Streetcar

Brewery District Streetcar Station [Provided]

Officials with the City of Cincinnati and Southwest Ohio Regional Transit Authority (SORTA) made several major announcements last week pertaining to the rollout of the Cincinnati Streetcar system.

While the design of the rolling stock and the system’s color scheme were revealed more than a year ago, the official branding for the new mode of transit for the Cincinnati region had not. SORTA officials say that the branding will be utilized all throughout the system including its fare cards, ticketing machines, uniforms, wayfinding, brochures, website and social media, and, of course, the trains and their stations.

The branding scheme was put together by Kolar Design, whose offices are located in the Eighth Street Design District just two blocks from the nearest streetcar stop, after competing with more than 100 other firms interested in the opportunity to developing the design scheme.

Project officials say that the $25,000 cost for the branding effort was paid for through Federal funds.

Founders Club Card Sales
At the same time, SORTA and City officials announced the availability of 1,500 Founders Club Cards. The sale of the cards, officials said, would help raise some initial funds to be used to help offset initial operating expenses.

Project officials have informed UrbanCincy that approximately half of the 1,500 cards were sold within the first 24 hours of going on sale; and that more than 1,000 had been sold by Friday. A limited number of Founders Club Cards are still available for purchase at the Second Floor Cashier’s Office at City Hall, Metro’s sales office in the Mercantile Arcade across from Government Square, and online at Metro’s website.

There are three card options available. The first goes for $25 and allows for unlimited rides for the first 15 days of service, which is currently pegged for 2016. The second and third options go for $50 and $100, and allow for unlimited rides for the first 30 and 60 days, respectively.

The commemorative metal cards and matching metal cases were seen by some as one of the first ways for Cincinnati Streetcar supporters to show their support. Having experienced strong sales thus far, it seems as Metro’s strategy may prove to be a success.

“This is one of the first tangible opportunities streetcar enthusiasts can show their support,” said City Councilwoman Amy Murray (R), Transportation Committee Chair. “This is a great idea that Metro has developed to generate excitement. I think many will appreciate the privilege of being a Founding Club Member with this commemorative card.”

Operating Agreement Finalized
Perhaps lost amid the other news was the signing of an official operating agreement. Under the current structure, the City of Cincinnati is building the system, and is its owner, but will contract out its operations to SORTA.

The Cincinnati Streetcar Operating & Maintenance Agreement first came out of Murray’s Transportation Committee and was approved 7-2 by City Council in early November. It calls for expanded on-street parking enforcement in Downtown and Over-the-Rhine until 9pm, an increase in parking rates in those two neighborhoods, and a set streetcar fare of $1 for two hours.

The agreement also utilizes an innovative technique that would lower property tax abatements 7.5%. This is an important component of the agreement as it addresses a longstanding call from opponents for those benefiting from real estate valuation increases to cover more of the costs of modern streetcar system. It also eliminates the need to utilize the Haile Foundation’s $9 million pledge, and would instead only tap into those funds in a worst-case scenario.

Project officials estimate that the system will cost approximately $3.8 to $4.2 million annually to operate, and that those costs would be covered by $1.5 million in additional on-street parking revenue in Downtown and Over-the-Rhine, $1.3 million from fares and advertising, and an estimated $2 million annually from the tax abatement reductions.

“This is the most innovative plan I’ve seen in the United States,” stated John Schneider, noted transit advocate and real estate developer, at the time of City Council’s approval in November.

The SORTA Board approved the agreement last week and touted the benefits of having operations of the Cincinnati Streetcar be handled through Metro, which also runs the region’s largest bus service.

In addition to the critical financing elements of the agreement, it also delineates various responsibilities once service goes into effect. To that end, the City of Cincinnati will be in charge of maintaining traffic signals, clearing blockages from the streetcar path, cooperation on utility interfaces, safety and security; while SORTA will be responsible for operating the system, maintaining vehicles and facilities, fare collection provision and maintenance, marketing and advertising sales.

Construction on the $148 million first phase of the Cincinnati Streetcar continues to progress, with most track work in Over-the-Rhine now complete and track work now progressing through the Central Business District. Current time frames call for operations to begin in September 2016.

Categories
Development News

St. James Pocket Park To Clean Up Eye Sore, Crime Hot Spot in Walnut Hills

St. James Pocket Park [Provided]

The St. James cut through in Walnut Hills has been the focus of a significant amount of attention in recent months. It is a pedestrianized walkway between McMillan Street and Curtis Street that has been a crime hot spot.

As the City’s NEP program – a targeted 90-day sweep of code enforcement, law enforcement and beautification – moved into Walnut Hills, Curtis Street and the St. James cut through became focal points of the program.

The cut through is street-width with an adjacent parking lot to the west. It is a high traffic pedestrian path due to the presence of Kroger and a CVS across McMillan Street at the cut-through terminus. It currently contains post-modern design elements with existing, neglected raised cement beds for landscaping.

In order to improve the aesthetics and safety of the space, neighborhood leaders have begun raising funds to improve it. The rejuvenation of the space will not require an entire overhaul, but rather a reimagining, which has been led by MKSK Design, an architectural firm with offices in Covington.

“We hope to facilitate the activation of a vibrant, positive urban space through design,” said the lead designer of the project, Julianna Silveira of MKSK. “The design now is harsh, with a lot of concrete – the design will make it greener, with bright colors, and an ideal location for arts and cultural events.”

The parking lot portion of the park will be “depaved”, a process whereby parking lots are dismantled, and re-designed using naturalized elements and pervious surfaces. The kiosk in the middle of the park will be repurposed into a book-share station.

Over the past month, volunteers have been picking up garbage, painting, planting and have otherwise been active in the space’s incremental transformation. The St. James cut-through is affectionately being called the St. James Pocket Park within the neighborhood, as it is now looking more like a place one might stop and enjoy, rather than just, well, cut-through.

Although there is still work to be done, the park was chosen as the wrap-up location for the NEP on November 14. The event was attended by Mayor John Cranley (D), numerous city and neighborhood leaders, as well as the Walnut Hills Redevelopment Foundation and The Model Group, who unveiled renderings for the Trevarren Flats, a mixed-use apartment project that will utilize a historic structure a stone’s throw away from the park.

Later that night, a jazz concert was held in what is now the parking lot portion – event organizers were pleased to discover that the acoustics in the space were ideal for concerts, and provided encouragement for future events that could be held there.

So far the idea for the pocket park has been well-received, and the community’s ideas for how to improve it even earned it a spot in the finals of The Orbit Challenge, which could mean a $5,000 grant to help further the progress.

If any members of the public seek to be involved in any part of the park’s transformation, either through submitting ideas or volunteering, information can be found at the kiosk in the center of the park or on the St. James Pocket Park Facebook Page.

Categories
News Transportation

EXCLUSIVE: Donald Shoup Talks Parking Policy, OTR Permit Fees With UrbanCincy

Unused Parking at The Banks [Randy Simes]

Donald ShoupIn advance of his lecture Tuesday at the Mercantile Library, UrbanCincy was able to get an exclusive interview with Dr. Donald Shoup to discuss a variety of issues ranging from Cincinnati’s own parking management efforts, the controversial OTR Parking Permit proposal and how parking reform is changing with the emergence of ride sharing services.

The digital interview took place on Thursday, October 23 and included the following discussion.

John Yung: Last year the City of Cincinnati almost committed to leasing its parking meters and some garages to a private corporation (Xerox) for a lump sum payment and yearly revenue for 40 years. What are your thoughts on cities attempting to lease or sell their parking assets to generate revenue?

Donald Shoup: Like burning all the furniture to stay warm on a cold night, selling a city’s parking meters for an upfront payment to cover current operating expenses is a bad idea. Some cities are considering more farsighted parking contracts that share the annual revenue rather than maximize the upfront payment. A contract with a professional operator who meets performance pricing goals and shares the resulting revenue with the city can give the city two big advantages: a well-managed parking system and a perpetual stream of income.

For example, a city can require its private contractor to set meter rates that keep the curb occupancy rate between 75% and 95% on every block for at least a certain number of hours every day, with penalty payments for failure to meet the occupancy goal. If professional operators can manage parking more effectively and at lower cost than cities can, private contracts with performance goals can be a good deal for almost everyone.

Xerox already manages the prices for on-street parking in downtown Los Angeles, and the program is a great success. Charging the right prices for curb parking produced some surprising benefits. The Express Park program showed that many meters had been overpriced, especially in the morning. During the program’s first year, 59% of the meter prices decreased and only 29% increased. Average meter prices fell by 11% and average parking occupancy increased by 17%. Total meter revenue increased by 2.5%. Parking reform is working well in Los Angeles.

Yung: Cincinnati political leadership is currently looking at increasing meter rates, hours and implementing a residential parking plan for Over-the-Rhine, a neighborhood that is next to the central business district. The residential permits are proposed to be $300 a year, which will be the highest permit price for on-street parking permits in the country if implemented. The neighborhood is very walkable; however, many employment centers and retail destinations are not very accessible by transit therefore many residents of OTR still have to drive.

Do you think that this is a fair market price for a neighborhood in a city like Cincinnati where approximately 10% of the population utilize some form of alternative transportation?

Shoup: The proposed price of $300 a year for a residential parking permit seems chosen to generate revenue rather than to manage parking. It is less than $1 a day, but an on-street parking permit may not be worth even that low price to some residents. I would instead aim for the fair market price, which means the price at which demand equals the available supply.

Yung: The city is currently in the midst of a zoning code rewrite and the topic of parking requirements is up for debate. Last year the city eliminated parking requirements in the CBD and OTR; however, there is little appetite from city leaders and planners to expand the effort to other areas.

In discussions, some developers advocated for parking requirements as a way to protect on-street parking impacts around the University of Cincinnati and other high-traffic commuter areas. They argue that there are not enough parking options in the area and other developers, eager to cut costs by cutting out parking if the requirement is eliminated, would incidentally create more demand for scarce on-street spots for students and visitors.This is similar to a debate in Portland regarding high-density apartments. What would your response to this be? Are there instances where you think parking requirements would need to be preserved?

Shoup: If Cincinnati uses fair market prices to manage on-street parking – the lowest prices that will leave on or two open spaces on every block at every time of the day – it won’t have to require off-street parking spaces for every land use. If the government regulated any other aspect of our lives as precisely as it regulates the number of off-street parking spaces everywhere, everyone would join the Tea Party.

Yung: Futurist seems to be talking about driverless cars as a way to streamline commutes for suburbanites however there is also some discussion on utilizing them as a automated taxi service in cities. What are your thoughts on driverless cars and what do you think their impacts will be on cities and parking reform?

Shoup: I don’t think driverless cars will have a big impact on cities during my lifetime. I do think that Uber, Lyft, Zipcar and the like are already having a big impact.

Yung: Can you elaborate on how car sharing services are impacting the parking demand market in cities?

Shoup: Uber, Lyft, and Zipcar reduce parking demand because they can substitute for a second car or even a first car for some families. Several studies of carsharing services like Zipcar have found that each shared car replaces between 9 and 13 privately owned cars because carshare members reduce the number of cars they own or avoid buying a car as a result of joining. Here is the link to a recent article about how carsharing reduces vehicle ownership and thus parking demand. And here is the link to another article about how dedicating an on-street parking space for a shared car reduces the demand for car ownership and thus parking demand.

Yung: SFpark has been widely discussed as a success in national urban blogs. Do you think this system is the ideal model for ensuring demand driven market pricing for parking in cities? Are there any suggestions that you would make to change or improve this system?

Shoup: SFpark, San Francisco’s new pricing program, aims to solve the problems created by charging too much or too little for curb parking. If the price is too high and many curb spaces remain open, nearby stores lose customers, employees lose jobs, and governments lose tax revenue. If the price is too low and no curb spaces are open, drivers who cruise to find an open space waste time and fuel, congest traffic, and pollute the air. SFpark bases the price adjustments purely on observed occupancy.

Planners cannot reliably predict the right price for parking on every block at every time of day, but they can use a simple trial-and-error process to adjust prices in response to occupancy rates. This process of adjusting prices based on occupancy is often called performance pricing. Beyond managing the on-street supply, SFpark helps to depoliticize parking by setting a clear pricing policy.

San Francisco charges the lowest prices possible without creating a parking shortage. Transparent, data-based pricing rules can bypass the usual politics of parking. Because demand dictates the prices, politicians cannot simply raise them to gain more revenue. Here is the link to a short article that explains SFpark.

Immediately after conducting this interview with Dr. Shoup, it was revealed that many recently constructed parking garages in Portland, as required by law, are now sitting mostly empty.

Dr. Donald Shoup’s lecture at the Mercantile Library will take place tomorrow at 6pm. The Mercantile Library is located less than a block south of Government Square and is accessible by a plethora of Metro Bus routes. It is also located near the Fountain Square Cincy Red Bike station.

Categories
Up To Speed

Is an apartment development at Eighth and Sycamore worthy of public financing?

​Is an apartment development at Eighth and Sycamore worthy of public financing?.

As was previously teased by Cincinnati Mayor John Cranley (D), there is the possibility of building a residential mid-rise atop the planned parking garage at Eighth and Sycamore Streets. The developer initially engaged, however, is saying that they will need some gap financing from the City to make it happen. Do you think it’s worth the public investment? More from the Business Courier:

Rick Kimbler, a partner at NorthPointe Group, which is developing the project along with North American Properties and Al Neyer, said the group is trying to assemble financing for the project.

“We don’t have the financing put together, so it’s not really a project yet,” Kimbler said. “We will definitely need some gap filler from the city. There’s no question about that because mid-rise construction downtown is expensive, and the city is straining, trying to be helpful, but their funds are limited.”