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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.”

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Up To Speed

Tolled highways may soon become part of everyday life in Cincinnati

Tolled highways may soon become part of everyday life in Cincinnati.

The unwillingness of lawmakers to approve an increase to gasoline taxes is causing otherwise unforeseen effects. State officials from both Ohio and Kentucky have already stated that the reconstruction of the Brent Spence Bridge will require modern tolling, and now Ohio Governor John Kasich (R) is expanding the idea by proposing the use of high-occupancy toll (HOT) lanes on the reconstructed portion of I-75 through Hamilton County, in order to help pay for other state transportation projects. More from the Cincinnati Enquirer:

The Ohio Department of Transportation will launch a study in coming months to examine charging tolls to motorists who want to travel quickly in uncongested lanes. Motorists could pay to use these so-called “price-managed” lanes, or continue to travel for free in lanes jammed with heavy traffic.

Price-managed lanes have become a national trend as states face transportation budget shortfalls and rising congestion in urban areas. The two-year, $105 billion federal transportation bill passed last summer opened the door for states to do more tolling – and Ohio is jumping in.

Gov. John Kasich launched an aggressive effort early this year to consider tolling and other alternative funding to eliminate a $1.6 billion transportation deficit and move up construction schedules on projects across the state…At some point, the I-75 corridor stretching from the Western Hills Viaduct to I-275 could be added to the list of highways eligible for price-managed lanes. That’s because the $980 million I-75 construction projects – separated into two, eight-phase plans known as the Mill Creek Expressway and Thru the Valley – call for one new lane to be added in each direction.

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Business Development News

Ohio awards nearly $9M in historic tax credits to seven Cincinnati-area projects

Seven Cincinnati-area developments have been awarded nearly $9 million in tax credits from the Ohio Development Services Agency (ODSA) through the state’s historic preservation program.

Six of the seven area projects are located within the City of Cincinnati, and one is located in downtown Hamilton. The Cincinnati-area projects took home nearly 25 percent of the total $35.9 million distributed in the program’s ninth round of funding, and will create more than 130 new housing units and tens of thousands of square feet of commercial space once completed.

“The Historic Preservation Tax Credit puts empty buildings back into the economic cycle, creating jobs through construction activities and reoccupation of the buildings,” Christiane Schmenk, director of the ODSA, stated in a prepared release. “This program saves some of the state’s most significant historic structures.”


Eden Park’s 118-year-old pump station may soon see new life as a micro-brewery thanks to a $1 million tax credit from the State of Ohio. Rendering provided.

According to state officials, projects receiving funding must complete the rehabilitation work in accordance with the U.S. Secretary of the Interior’s Standards for Rehabilitation before the credits are issued to the building owner or long-term tenant.

More than $3.3 million in funding will flow into Over-the-Rhine for Losantiville Apartments, Abington Flats, and Pendleton Apartments through the program, and the Cincinnati Center City Development Corporation (3CDC) was awarded $1.8 million for its $9 million redevelopment of three historic buildings at Third Street and Main Street in the central business district.

“Without it [Ohio Historic Tax Credit] we would be unable to preserve the historic character of as many buildings as we have,” Anastasia Mileham, 3CDC’s vice president of communications, told UrbanCincy. “The cost to restore and develop them costs more than the what you can sell the condos for and lease the commercial space for. Historic tax credits help fill that gap and make the math work.”

In Mt. Adams, the Cincinnati Beer Company was awarded $1 million for its $5.2 million project that will transform Eden Park’s 118-year-old pump station into a brewery and tap room. Nearby, the Walnut Hills Redevelopment Foundation and The Model Group were awarded $1.8 million to renovate three historic structures into 30 market-rate housing units and approximately 7,000 square feet of street-level commercial space.

Elsewhere, the City of Hamilton will see more than $800,000 go towards the renovation of the 126-year-old Hamilton Journal-News Building, which will become the home of Butler Tech’s School for the Arts and Hamilton City Schools’ Adult Basic & Literacy Education (ABLE) program.

According to ODSA, this round of funding will assist in the rehabilitation of 45 historic buildings throughout the state, and leverage more than $252 million in private investments.

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Development News Politics

Report: Cincinnati’s five-year outlook for building demolitions may approach 8,000

Home demolition photograph provided by Price Hill Will.

In September, city officials stood in Price Hill alongside state officials to announce plans to demolish up to 700 vacant and blighted buildings in Cincinnati. The funding for the ongoing effort comes from a state-wide program called Move Ohio Forward, which gives demolition funding to cities from money the state won in a settlement with large banks last year over the home foreclosure process and lack of property upkeep by the banks.

City officials estimate that there are currently 1,300 vacant and blighted properties awaiting demolition. The $5.84 million grant, when matched with $5.34 million from the Hamilton County Land Reutilization Corporation and $3.49 million from the City, will provide enough funding to cover just over half of the total amount of demolitions mandated its own ordinances. The final amount of demolitions, officials say, will vary from neighborhood to neighborhood.

“The Moving Ohio Forward Grant Program provides unprecedented blight abatement opportunity for the City to clear dangerous, obsolete buildings from neighborhoods, make way for redevelopment, and eventually raise property values,” Edward Cunningham, Property Maintenance & Code Enforcement Division Manager, told UrbanCincy.

In an effort to further control what happens with the cleared sites, the City of Cincinnati will work with Hamilton County’s new Land Reutilization Program in order to acquire tax delinquent properties. Once the buildings are demolished, the City will determine if the land can be used as parks, community gardens or rehabilitated into new housing. So far, however, only enough funding for lot restoration on 200 parcels has been identified.

In cases where the lots are private properties, and are not able to be acquired, it will be up to the property owners of the vacant lots to decide the future of their property. According to Cunningham, property owners will be allowed to maintain the lots, create parks, parking or new infill construction.

More Comprehensive Plan for Demolitions Needed
Property demolition has been used by many cities including Cincinnati as a method of addressing problem vacant buildings that have been condemned because they are hazards to human health and unsafe to occupy. While the debate on the impacts of foreclosure and vacant property is far from over, some of these buildings are “too far gone” in the eyes of building inspectors that they legitimately need to come down. And according to Cunningham, the buildings being demolished under this program are buildings that are beyond repair.

Once the demolitions are completed, one-by-one, it will create more land between occupied houses thus negatively impacting the completeness of the neighborhood’s form. Without a strategic plan, vacant and unmaintained lots could end up degrading neighborhoods in the same manner as blighted homes; however, vacant lots tend to be easier to maintain and do not pose as much of a risk as a standing structure.

Furthermore, demolitions made through this program on private land will place the cost burden on the property. Should the property owner not pay the assessment for the work, then the property could be foreclosed by Hamilton County, which would then open the land up to redevelopment. This process, however, does take a considerable amount of time and offers no guarantee of redevelopment.

Projected Housing Units in Five Year Demolition Pool by City for Ohio’s “Big Eight” Cities. Source U.S. Census Bureau.

The challenge of increasing amounts of abandoned and blighted housing is not symptomatic of Cincinnati alone, as many older industrial cities are facing the similar problems. A recent report from the Brookings Institute found that Cincinnati might have close to 8,000 buildings eligible for demolition in the next five years. The report also stated that while the demolitions have the potential to stabilize neighborhoods, excessive regulations and costs prevent cities from demolishing the amount of housing that should be demolished on an annual basis.

To overcome these hurdles the report makes a series of recommendations for cities to devise their own strategic demolitions plan.

“Planners, urban designers, and residents must together evaluate how demolishing a particular building will affect the texture of its block or area,” the Brookings Institute stated in Laying the Groundwork for Change: Demolition, urban strategy, and policy reform (2012).

Cities such as Cincinnati need to have a level of transparency in place that allows for neighborhood input on the reuse of the newly created vacant lots. It is not merely enough to encourage neighborhoods to help identify future uses for vacant lots as the city is doing now, it should be required.

As previously profiled on UrbanCincy, Cincinnati’s population decline is systemic and although vacant building demolition is more a testament to the large supply of housing versus demand, absent a strategic demolitions plan, the city should be mindful that stabilizing neighborhoods relies heavily on preserving existing housing or building new housing capacity and offering incentives or neighborhood upgrades that would attract new residents.

Categories
Development News Transportation

Two Cincinnati projects make Sierra Club’s list of best, worst transportation investments

The Sierra Club has released their annual report ranking the best and worst transportation projects in the country. Smart Choices, Less Traffic: 50 Best and Worst Transportation Project in the United States provides a brief summary of each project included in their list, and a description as to why the project received its ranking.

The purpose of the report, the Sierra Club states, is to bring light the more than $200 billion worth of transportation projects that advance each year, and identify which of those meet higher national goals of “reducing oil consumption, increasing safety, improving public health, and saving local, state or federal government – and citizens – money.”

The State of Ohio had only two projects that made it into the Sierra Club’s 2012 report, and both were from the Cincinnati region.

The first was the Eastern Corridor project which was identified as one of the nation’s worst projects, with the report stating:

The Eastern Corridor Highway in Cincinnati, Ohio was first proposed in 1999 when the price of gas was $1.14. The project is currently under study, with plans to convert a road into a 10-mile, four- to six-lane expressway. The Highway poses a significant threat to the scenic Little Miami River. The route parallels the river and plans to cross it in an ecologically threatened area, where numerous rare, threatened and endangered species live. Furthermore, the highway will slice the historic village of Newton in half, which would disrupt the community and its tax base, adding traffic and pollution. The village’s mayor has been an outspoken critic of the project. The highway project is expected to cost upwards of a billion dollars.

The second area project that made it onto the environmental organization’s list is the Cincinnati Streetcar, which they called one of America’s best transportation projects.

The Cincinnati Streetcar is a new electric streetcar project that will connect key communities in the city’s urban core while improving neighborhood accessibility, stimulating development, and creating jobs. The streetcar system will go from the River to the Zoo, University, and hospital area. There are currently more than 500 vacant buildings along the streetcar’s 4-mile route. The streetcar will help attract residents and businesses to these rehabbed buildings, putting people to work and boosting the city’s tax revenue. Streetcars will increase accessibility and active transportation in the region by creating denser, more walkable, mixed use development. The streetcars are designed to accommodate both wheelchairs and bicycles and will serve as a complement to the city’s existing bus transit. Construction began in February 2012 and the streetcar is expected to open in 2014.

The full report identifies a wide range of projects including highways, bridges, mass transit, active transportation, aviation, aquatic, and multi-modal investments. Projects of all varieties made it onto both the good and bad lists, but the Sierra Club largely favored transit and active transportation projects over highways and bridges.

“Americans are struggling with the health, climate, and economic costs of our oil-centered transportation system,” the report states. “Our transportation investments should provide an opportunity to further reduce our dependence on oil, reverse climate disruption, and save money. Because transportation infrastructure lasts for decades, the impacts of transportation investments are felt for many years to come, with huge consequences for America’s ability to move beyond oil.”