Tag: Source 3 Development

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Business Development News

Christmas Came Early for Southwest Ohio Developers, Historic Preservationists

Rendering of $25M Freeport Row Development [Provided]

The Ohio Development Services Agency provided developers and historic preservationists around the state with an early Christmas present when they announced 18 projects that would receive Ohio Historic Preservation Tax Credits.

In total, the tax credits are worth $22.8 million and are expected to spur $225.6 million in private investment.

“A community’s historic buildings make it unique,” said David Goodman, director of the ODSA. “Giving a building new life honors the history of the building, while creating construction jobs in the short-term and opportunity for economic activity in the future.”

In recent years southwest Ohio had fared extremely well in the competitive bid process for the funds, and this round proved to be much of the same. This group of winning applicants includes five from Cincinnati, one from Hamilton, and two from the Dayton area.

One of the Dayton projects was the winner of one of the state’s two prestigious $5 million awards. That money will go toward the $46 million United Brethren Building project in downtown Dayton, which will transform the long-vacant, 112-year-old building into 164 apartments.

While the Cincinnati-region had the most number of awarded projects, most of the tax credits were small in size. Four projects, three located in Over-the-Rhine and one in Hamilton, received amounts ranging from $150,000 to $250,000. While small in scope, the projects will save numerous historic structures from demolition, while also creating dozens of residential units and commercial space.

The long-debated Freeport Row project, located at Liberty and Elm Streets, received a sizable $1,358,772 tax credit to help restore five historic structures as part of the overall $25 million development. Once complete, the project is expected to yield 110 apartments, 17,000 square feet of retail, and a total of 100,000 square feet of new construction on the vacant lots surrounding the historic structures.

Just blocks north of Freeport Row, along the Cincinnati Bell Connector, is another project that took home the largest tax credit in Cincinnati. Market Square III was awarded with $1,690,000 in tax credits and push forward the latest phase of Model Group’s massive redevelopment efforts surrounding Findlay Market.

Market Square III will renovate eight historic structures, most of which are currently vacant, to include street-level commercial space with 38 apartments in the upper floors.

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Business Development News

Revised Plan, Drawings Submitted for $27M Mixed-Use Development at Liberty and Elm

LibertyElm Site Plan [Provided]

After announcing plans for a $27 million mixed-use development at Liberty and Elm Streets, Source 3 Development, the developers of record for the project, have been met with both cheers and push back on their proposal.

Located directly on the streetcar line, the project would be the first major new construction project to occur north of Liberty Street in Over-the-Rhine in many years. As scores of historic buildings are now being renovated around Findlay Market, many see this site as a critical piece of the Northern Liberties puzzle.

While preliminary designs were not released in January when the project was announced, the developer did discuss building massings and programming. Those plans called for the creation of 15,000 square-feet of street-level retail, 165 parking spaces in a three-level garage, and 118 apartments in new buildings, and within four existing historic structures that would be renovated as part of the effort.

In response to those details, the Over-the-Rhine Foundation issued a list of 12 concerns they had about the project. One of the primary issues was related to the appropriateness of a 85-foot-tall structure in a historic district made up of buildings that are generally shorter than that.

“The proposed height of the structure dwarfs all buildings in the surrounding area especially considering the smaller scale of Elm Street and the topographic elevation change from Liberty Street northbound on Elm,” a joint committee made up various neighborhood groups wrote to City Hall March 24.

“This will not only change the historic character of Elm Street and the Over-the-Rhine Historic District, but eliminate the views of downtown Cincinnati’s skyline enjoyed by residents on Elm and Logan.”

Source 3 responded to the comments from Over-the-Rhine Foundation by varying the heights of the two buildings to be construction, and reducing their heights from 85 feet to approximately 76 feet and 54 feet. These adjustments, Source 3 says, will increase the cost of the building and also forced the development team to reduce the number of apartment units in the development by eight.

The developer has also made a variety of other changes to respond to those 12 concerns from the community, including the elimination of two parking spaces in the garage and adjustments along the Liberty Street facade to minimize garage exposure and add retail frontage.

These will be presented to Cincinnati’s Planning Commission, due to a request to rezone the properties from Commercial Community Auto (CC-A) and Residential Mutli-Family 1.2 (RM-1.2) to Planned Development, on Friday, April 15 at 9am.

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Business Development News

$27M LibertyElm Project Exposes Cincinnati’s Urban Development Struggles

Liberty and Elm Aerial [Provided]

Source 3 Development recently announced their intention to develop a $27 million mixed-use infill project at the northwest corner of Liberty Street and Elm Street.

The project’s prominent location near Findlay Market and along the streetcar line, combined with its unusual large tract of cleared land, grabbed headlines, particularly as the developer promised to create 118 apartments and 15,000 square feet of street-level retail. All of the retail, and 90 apartments, will be developed in the new structure, the remaining 28 apartments will be developed within four historic structures that will be preserved.

In addition to being bold, the proposal also illustrates the conflicts challenging Cincinnati’s development community as the city continues its rapid physical and social transformation.

Historic Preservation
The site is large and includes an unusual amount of cleared land. Of course, this land used to be occupied by historic structures.

Prior to the wave of investment that has changed the face of Over-the-Rhine, these historic buildings were left to decay to the point where City Hall issued emergency demolition permits for them. Since their demolition, the site has been used by Findlay Market as a community garden.

Cincinnati developers continue to be challenged with building in historic districts. Often, new structures struggle with balancing contemporary design with a historic neighborhood fabric. When it comes to the historic structures themselves, there still seems to be a split in the development community about whether it is more valuable to tear down aging buildings, or spend the money to breathe new life into them.

Until the understanding that historic buildings and urban fabric are what establish the value of neighborhoods like Over-the-Rhine, there will continue to be a conflict between those who wish to preserve the old, and those who think reducing the upfront capital cost is more valuable.

Transit & Parking
The LibertyElm development is arguably located in one of the region’s most walkable neighborhoods, is served by numerous bus routes, and is surrounded by the Cincinnati Streetcar.

Yet, while touting these facts, John Heekin, Principal at Source 3 Development, says that a concerted effort was made to provide enough parking to not only satisfy its new residents and businesses, but also address parking demands in the surrounding neighborhood. In order to accomplish this, a three-level, 165-space garage is included with the project.

In fact, when asked about the possibility of adding more residential to the project, Heekin explained that while more apartments are being demanded, it is the provision of parking that is the limiting factor.

“We think the market demand for residential is higher, but most people who have seen our plans want more parking,” Heekin told UrbanCincy. “This is hopefully where the streetcar will help.”

In theory, this is absolutely where the streetcar should help. But in reality, this is where the neighborhood’s walkability, bikeability and existing bus service already help. In fact, City Hall has thought so much of these aspects that it has reduced minimum parking requirements along the streetcar line, and throughout the center.

Heekin says that his development team is hopeful the project’s residential tenants will not have as much a need for cars, thus creating an opportunity to turn some of those spaces over to public use – perhaps for people visiting Findlay Market.

But it is this hope, and lack of confidence, that creates such predicament for Cincinnati’s development community. While the city is becoming more transit friendly, many see the market still demanding one to two parking spaces per residential unit, and even more for commercial retail, which has become a regional draw in Over-the-Rhine in recent years.

Having been focused on developing projects on green field sites in suburbia for several generations, challenging urban infill projects are still new to Cincinnati’s development community. This is made most obvious in Over-the-Rhine where development is at a fever pitch, and developers must deal with both the conflict of building new or preserving old, and developing around cars or not.

Source 3 Development seems to be on the right track, as compared to many other recent development projects, but the conflicts remain clear.

Heekin says they hope to break ground on the project this fall, with residents and businesses moving in a year after that. Perhaps between now and then, Cincinnati’s development community will become more comfortable with building truly urban projects that preserve and complement the city’s historic assets, and take full advantage of the walkability, bikeability and transit service offered throughout the city.