Tag: Kentucky

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Up To Speed

Incentive-fueled competition between local governments is a failed experiment

Incentive-fueled competition between local governments is a failed experiment.

Kansas City is famous for its “border war” between Kansas and Missouri. The city, oddly enough, sits right on the state line and therefore the two states and counties are in constant competition to undercut one another and poach businesses for their side. Cincinnati’s “border war” is perhaps less publicized, but just as significant due to the fact that the greater downtown area sits in two states, three counties and five cities. The competition to lure businesses and people from one side to the other is counterproductive, and should end immediately. More from Governing Magazine:

For several decades we have been conducting an economic-policy experiment in state and local governments, and now it’s time to stop the testing because the results are clear: The dominant paradigm, incentive-fueled competition among these governments, does not create economic prosperity…Two big facts confirm this conclusion. First, as the New York Times reported last December, states, counties and cities are giving up more than $80 billion each year to companies in tax breaks, outright cash payments, and buildings and worker training. Second, the wages of the taxpayers who have been footing the bill for this stuff have been flat since at least 1979.

We need a national law that prohibits corporations from extracting bribes from state and local governments and bans governments from donating tax dollars to private entities — a sort of domestic equivalent of the Foreign Corrupt Practices Act, which prohibits American companies from bribing foreign governments… It’s time for experiments aimed at testing and developing a new paradigm for economic development, one that channels capitalism’s strengths while protecting the commons and producing a more broadly shared version of prosperity.

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Business Development News Politics

Cincinnati’s New-Found Buzz Helping Attract Retailers to Region

There were many significant achievements and trouble spots for Mayor Mark Mallory (D) over his past eight years as the face for the 2.1 million person Cincinnati region. Perhaps one of his largest accomplishments, however, was changing Cincinnati’s image nation-wide from a city in decline to one that is on the rise and doing innovative things.

For the first time national publications began to look at Cincinnati for its accomplishments in public education, sustainable redevelopment, environmental policy and even transport.

Yard House Cincinnati
Thanks in part to the aggressive marketing of Cincinnati by Mayor Mallory, new national chains like Yard House and Ruth’s Chris have begun filling store fronts throughout the city. Photograph by Randy Simes for UrbanCincy.

Each of these items involved a number of more detailed pursuits in order to make them happen. One of those pursuits was to attract new retail businesses to the region. In order to accomplish this, Mayor Mallory went on a full campaign touting the amenities and demographics Cincinnati has to offer.

After much work, the efforts started to yield fruit.

According to the mayor’s director of public affairs, Jason Barron, Mallory met personally with Potbelly (Downtown), Chipotle (Corryville, Downtown) and Panera Bread (Clifton Heights, Downtown) in an effort to get them to expand their presence inside city limits.

“We’ve been aggressive at national events for about six years now,” Barron explained. “We weren’t able to go this year in May, but Mayor Mallory has met with a number of these businesses over the years.”

The mayor also met directly with a number of other national chains in order to make the case that they open a location in Cincinnati. Those successes include Yard House (Downtown), Ruth’s Chris (Downtown), Orange Leaf (Clifton Heights, Downtown, Oakley, Westwood), Season’s 52 (Norwood), Capital Grill (Norwood), and Save-A-Lot (Roselawn).

For many of these businesses it was not only their first location in Cincinnati, but also their first in Ohio, Kentucky or Indiana. Barron says that it is thanks in part to the efforts made by Mallory on the road at events like the International Council of Shopping Centers (ICSC) annual meeting.

The efforts do require a bit of patience, as Barron says that not only has the administration been courting new businesses for years, they also believe that some of the benefits have yet to be realized.

“One of the things we’re always trying to do is create a buzz about Cincinnati to other leaders, businesses and investors,” said Barron. “The mayor’s making connections now that will pay off down the road.”

While the buzz can often times be attributed to the spirited Mallory, the mayor’s office is quick to point out that much of the heavy lifting has been done by local experts like Mark Fallon at Jeffrey R. Anderson. Most recently Fallon has been responsible for leasing both U Square at The Loop and The Banks.

More national brands appear to be on their way to Cincinnati, but the mayor’s office refuses to speak about the deals before they are finalized. But in addition to new restaurants and bars, Cincinnatians might expect to see other businesses opening up shop in the Queen City over the next one to two years.

Certainly chain restaurants are not the only retailers Cincinnati has been lacking, but the outside investment is certainly welcome. The next step will be to attract more clothing retailers to the city, and to expand the base of independent shops around town.

But luckily, as people close with the mayor might say, the buzz is starting to take shape.

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Up To Speed

Brent Spence Bridge on the outside looking in as Tappan Zee Bridge replacement gets $1.6B DOT loan

Brent Spence Bridge on the outside looking in as Tappan Zee Bridge replacement gets $1.6B DOT loan.

Originally built during the Korean War, the Tappan Zee Bridge is in need of replacement. The structure is old and requires a number of upgrades – much like Cincinnati’s Brent Spence Bridge. The State of New York was in need of financial assistance to get the $4 billion project moving (sound familiar?). That assistance came last week when the Federal Government announced a $1.6 billion loan for the project, thus ensuring its completion within five years. More from Engineering News Record:

New York Gov. Andrew Cuomo (D) made the announcement Oct. 31, calling it “the largest loan the U.S. Dept. of Transportation has ever made for any project like this.”

The loan was made through the DOT’s Transportation Infrastructure Finance and Innovation Act (TIFIA) program. Established in 1998, TIFIA has ramped up its lending recently, spurred by last year’s Moving Ahead for Progress in the 21st Century Act (MAP-21). The DOT also began taking steps earlier this year to speed up the TIFIA loan approval process.

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Business News Politics

UVA Demographer’s Map Illustrates Cincinnati’s Racial Segregation

Dustin Cable, a demographic researcher at the University of Virginia’s Weldon Cooper Center for Public Service, recently published a map of the United States that shows an individual dot for each of the nation’s 308,745,538 people.

On their map each dot was assigned one of five colors based on the racial and ethnic affiliation. Whites are blue; African-Americans, green; Asians, red; Hispanics, orange; and all other racial categories are coded as brown. Cable used publicly available 2010 data from the U.S. Census Bureau.

When viewed in its entirety from afar, the map makes cities look like integrated places with a merging of all the colors to create a purple shade. This, however, is not the most accurate portrait of the racial segregation found throughout American cities.

When viewing Cincinnati at a more detailed level, for example, one can see the clear separation of White, Black, Hispanic and Asian populations.

The dots are evenly distributed throughout their assigned Census Block, so some dots (or people) appear to be living in areas where they cannot (i.e. parks, water, streets).

The specific areas of interest inside Cincinnati city limits are several Uptown neighborhoods where a dense cluster of Asian individuals live, and the Lower Price Hill and East Price Hill area where a small concentration of Hispanic individuals call home.

When looking elsewhere around the region it is also interesting to observe the Hispanic population cluster in Butler County near in and around the City of Hamilton.

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Business News Politics Transportation

President Obama Shifts Attention Toward Economy, Cities in 2013 State of the Union Address

President Barack Obama (D) delivered the annual State of the Union address last evening. The hour-long speech covered a wide range of topics including gun control, military policy, immigration reform, voting rights, domestic economic programs, education reform, and energy policy.

One of the most-discussed topics of the evening was when the President announced his aspirations to see the national minimum wage raised to $9 an hour. The current minimum wage of $7.25 an hour results in an annual income of $14,500 – a number the President says keeps families with two minimum wage earners below the poverty line.

In 2006, Ohioans voted to raise the state’s minimum wage from $5.15 an hour to $6.85 an hour, with an annual cost-of-living escalator.

“This single step would raise the incomes of millions of working families,” President Obama stated. “It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets.”

Brent Spence Bridge Alternative 1

Brent Spence Bridge Alternative 2
The President called for a “Fix-It-First” program during his State of the Union address, but will it make a difference for Cincinnati’s Brent Spence Bridge Rehabilitation/Replacement project? Brent Spence Bridge replacement Alternative 1 (TOP) and Alternative 2 (BOTTOM) renderings provided.

Since the last time Congress voted to increase the federal minimum wage, which is effective for all states that have a minimum wage lower than the federal level, 19 different states have voted to raise their respective rates. The President’s $9 an hour proposal with an annual cost-of-living escalator would place it above every state in the union with the exception of Washington which pays its lowest earning workers $9.19 an hour.

In addition to raising the pay for the nation’s lowest earners, the President also pushed for new programs meant to spur job growth in a new economy. He called for the reform of high school education to more effectively train graduates to be able to fill high-tech jobs.

He also asked Congress to create a network of 15 manufacturing innovation hubs, modeled after the National Additive Manufacturing Innovation Institute (NAMII) established in Youngstown, OH in August 2012. Those cities selected, the President says, would work to partner businesses with the Department of Defense and Energy.

The President stated that the goal is to transform “regions left behind by globalization into global centers of high-tech jobs” in an effort to jumpstart the next revolution in manufacturing.

The advanced manufacturing policy proposal is one that should certainly catch the attention of local policy leaders as they work to transform Cincinnati’s Mill Creek Valley into a productive economic engine for the 21st century, as laid out in the Growth & Opportunities Cincinnati Plan published in 2008.

Another point of emphasis during the President’s first State of the Union address of his second term revolved around repairing the nation’s existing built environment.

To that end, he discussed retrofitting buildings to become more energy efficient, and announced a goal to cut energy wasted by homes and businesses in half over the next 20 years. President Obama continued by calling for a program that would prioritize infrastructure spending on existing assets in need of repair, like Ohio and Kentucky’s combined 4,054 deficient bridges.

“I propose a ‘Fix-It-First’ program to put people to work as soon as possible on our most urgent repairs,” said President Obama. “And to make sure taxpayers don’t shoulder the whole burden, I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children.”

Perhaps the biggest bi-partisan applause of the night went to the President’s condemnation of gun violence and call for action to prevent further atrocities like those at Sandy Hook Elementary School, and those that occur on the streets of America’s cities every day.

“Our actions will not prevent every senseless act of violence in this country. Indeed, no laws, no initiatives, no administrative acts will perfectly solve all the challenges I’ve outlined tonight,” President Obama clarified. “But we were never sent here to be perfect. We were sent here to make what difference we can, to secure this nation, expand opportunity, and uphold our ideals through the hard, often frustrating, but absolutely necessary work of self-government.”