Tag: urban design

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Business Development News

Cincinnati Aims to Use P3 to Upgrade Parking Assets, Leverage Economic Development

Last week, Cincinnati City Manager Milton Dohoney unveiled the city’s plans for modernizing its parking assets through what he called a public-public partnership.

The plan calls for a 30-year lease on thousands of on-street parking meters, and a 50-year lease on 2,363 spaces in five city-owned garages and four city-owned lots. The deal includes an initial $92 million upfront payment, and an estimated $3 million annual installment payment.

The other public partner in the deal is the Port Authority of Greater Cincinnati, who would oversee the operation of the parking assets. Xerox would work with the Port Authority to manage on-street spaces, while Denison Parking would help manage the garages and lots. The financing muscle behind the deal would be AEW Capital Management and Guggenheim Partners.

City officials note that the collection of private partners will be known as the ParkCincy Team.

Organizational Structure
The organizational structure under the proposed parking asset deal would keep the City of Cincinnati in charge. Provided.

In addition to the complex financial structure of the deal, the City of Cincinnati will see its parking assets dramatically modernized in the coming years. All on-street parking meters will be replaced by electronic meters that accept credit cards, and will be monitored to allow for those searching for a parking space to get real-time information on parking availability.

Several parking structures throughout the center city will also be overhauled. The crumbling Pogue’s Garage at Fourth and Race Streets will be torn down and replaced by a 30-story residential tower with a 1,000-space parking garage that will reserve more than half of the spaces for public use. Across the street, the 500-space Tower Place Garage will be renovated and expanded into the existing and vacant Tower Place Mall by another 500 spaces.

The improvements to be made to the Pogue’s Garage site and Tower Place Garage are being assisted by $12 million in city financing made available through the lease’s upfront payment.

Current-vs-Proposed
The proposed deal would significantly simplify the City’s accounting responsibilities with regards to its parking assets, but it would shift the bulk of annual revenues to the ParkCincy Team. Provided.

As part of that $12 million deal, the Port Authority will work with the developer to construct the planned $14.2 million 725-space parking garage, near the Horseshoe Casino at Seventh and Sycamore Streets, in place of the deteriorating parking garage at that site. The new garage’s development, meanwhile, is expected to jump-start the adjacent development of the proposed 115-room Holiday Inn & Suites.

In order to make the deal worthwhile for the Port Authority and the ParkCincy Team, parking meters will be in effect from 8am to 9pm downtown, and 7am to 9pm in other neighborhoods. Parking rates will remain the same downtown, but rates will increase to $.75 an hour once meter upgrades have been made.

Mayor Mallory’s Administration reviewed the bids and decided to take a lesser upfront payment in order to avoid some of the pitfalls experienced in Chicago, as pointed out by critics of Cincinnati’s deal. The City of Cincinnati sacrificed roughly $50 million in order to maintain control over certain aspects of the parking inventory including first ten minutes free at downtown meters, free parking on Sundays and holidays, and oversight on rate increases and enforcement.

One very crucial aspect is that the city will retain control over the price of parking, which will be determined by a board made up of City and Port Authority representatives, and rate increases will be capped at 3% annually.

In addition to the $12 million for the development at Fourth and Race Streets, the remaining $80 million from the upfront lease payment will go towards the following items:

  • $20 million to jump-start the Martin Luther King Drive Interchange at I-71;
  • $4 million to accelerate the next phase of Smale Riverfront Park in order to be complete in time for the 2015 All-Star Game;
  • $3 million to acquire the Wasson Corridor right-of-way;
  • $6.3 million to bring the City’s reserve savings account to its goal of 8%;
  • $25.8 million to balance the City’s 2014 budget; and
  • $20.9 million to balance the City’s 2015 budget.

City officials hope the $20 million for the MLK Interchange will accelerate its construction, but is contingent upon the Ohio Department of Transportation (ODOT). The project, officials say, will have a $750 million economic impact and create between 5,900 and 7,300 permanent jobs.

Should ODOT officials turn down the deal, City officials have said that they are prepared to redirect the funds to a 2,500-job “mega deal.”

The administration’s parking modernization and lease agreement requires approval from the Planning Commission and City Council before being finalized. The Planning Commission will vote on the matter this Friday at 9am, with a full City Council vote expected shortly thereafter.

Randy A. Simes contributed to this story.

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Up To Speed

Has the United States given up on building subway systems?

Has the United States given up on building subway systems?.

Everyone knows that America’s roadways and bridges are crumbling, but the United States has also seemingly given up on its subway systems. Atlanta’s subway system was the last subway system started in the U.S., and its construction commenced in 1979. Since that time no other American city has been able to figure out the financing of a subway system with the disappearance of federal funding support. More from Governing:

The rapid pace of subway construction, especially in developing countries, has driven the number of systems in the world to more than 190, according to the Economist. One reason for the boom has to do with government stimulus programs that followed the financial crisis, allowing investment in subway construction to soar. One country that’s noticeably absent from the project lists that appear in trade publications is the U.S.

With transit funding still uncertain, given the lack of a stable, dependable funding stream from Congress, all but a handful of cities have decided to stay clear of such money-draining projects…Some might argue that we don’t need such large-scale transit systems, which are not only expensive to build but expensive to run. Indeed, debates over the pros and cons of a subway system have killed many plans while delaying some construction projects for decades, not just in the U.S. but in other countries as well. Still, we can’t ignore the fact that the U.S. is becoming an increasingly urbanized country, with more people working and living in cities every year.

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Business Development News

Pogue’s Garage to Make Way for 30-Story Residential Tower, Grocery Store

Former Design Concept [Provided]

Cincinnati City Manager Milton Dohoney briefed City Council’s Budget & Finance Committee of the specifics of a plan to modernize and lease some of the city’s parking assets. Part of the immediate $92 million infusion, as part of the plan, would be used to spark the redevelopment of Tower Place Mall and Pogue’s Garage.

Dohoney stated that the vacant Tower Place Mall would be converted into a 500-space parking garage, with 20,000 square feet of street-level commercial spaces fronting onto Race and Fourth Streets.

“Residential is a huge factor in the ability to attract and retain retail, but what retail really wants is customers,” explained David Ginsburg, President/CEO of Downtown Cincinnati Incorporated (DCI), with regards to the state of the center city’s retail scene.

285333_10151760214824698_747240426_n Pogue's Tower
The City of Cincinnati has struck a deal that would tear down the crumbling Pogue’s Garage and replace it with a mixed-use residential high-rise. Renderings provided.

To that end, the adjacent Pogue’s Garage, as part of the project, would be torn down and the site rebuilt with a 30-story mixed-use tower with 300 luxury apartments, 1,000 parking spaces, and a 15,000-square-foot grocery store.

The reconstruction of Tower Place Mall, city officials say, would be overseen by JDL Warm, and would begin as early as fall 2013. The redevelopment of the Pogue’s Garage site would be overseen by Flaherty & Collins, which would be funded with $82 million in private investment and $12 million from the City through its new parking lease.

Project officials say that all of the financing is in place, and a new-to-market grocery store has been secured for the new mixed-use tower.

The new tower’s contemporary architecture would contrast the historic high-rises flanking it along Fourth Street, and would dramatically change the street’s landscape.

One other component of the project requires the developer to also build the planned 725-space parking garage on Sycamore Street, which is adjacent to the proposed 200-room Holiday Inn & Suites.

A timetable has not yet been set for the $94 million project, but work would seemingly be able to begin as soon as the proposed parking lease is approved by City Council. The City of Cincinnati and DCI are currently working with Paragon Salon regarding its space in the Pogue’s Garage. No details have been shared, but Paragon’s lease runs through 2017.

“We need to make sure that everything is working all the time on all cylinders,” Ginsburg told UrbanCincy with respect to the hierarchy of needs for downtown investment. “If I were to get a bumper sticker for my bicycle or my car it would just be one word – more. Downtown needs more residents, it needs more businesses, it needs more workers, it needs more diversity.”

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Development News Politics Transportation

OKI Survey Results Show Preference for Compact, Walkable Communities

The OKI Regional Council of Governments has released the findings from its 2012 How Do We Grow From Here survey, and is reporting a record response.

According to OKI officials, the survey received 2,474 responses and more than 1,200 comments. In the past, the organization had received around 100 responses for similar surveys, but was hoping for higher numbers this time around due to a larger outreach effort.

The survey is intended to take the pulse of the Cincinnati region with regards to regional vitality, sustainability, and competitiveness with a special focus on land use and transportation policy. The results of the survey are then intended to be used when updating the metropolitan planning organization’s Strategic Regional Policy Plan (SRPP), which was last updated in 2005.

OKI 2012 Survey Results

“While much has been accomplished since the plan’s adoption in 2005, much remains to be done to reach its goals,” state OKI officials. “The SRPP needs to be updated to reflect the impacts of subsequent events such as the Great Recession and significant changes in our demographics, particularly as the baby-boom generation ages.”

Of the survey’s 21 total questions, seven offered particularly revealing insights into the psyche of those from around the region concerning transportation options, economic development strategies, and land use policy.

The survey results indicate a clear preference for sustainable and urban communities. Approximately 60% of respondents said that they felt urban revitalization and neighborhood redevelopment efforts are paying off, and a whopping 88.5% said that it is important to have safe pedestrian and bicycling options in their community.

While the 2,474 respondents stated that they wanted to see existing infrastructure maintained and their communities built in a way to support walking and bicycling, it does not appear that they feel the region is heading in that direction.

“Bicycle infrastructure can play a big role in enhancing public health, providing additional options for transportation, and reducing pollution,” commented one responder. “I also would support a comprehensive transportation plan that includes the extended streetcar line and light rail. This could reduce traffic congestion and pollution and enhance economic growth for our neighborhoods.”

More than a third of those responding said that they feel the region is growing in an unsustainable manner, and more than two-thirds expressed concern about how the region’s housing, transportation, healthcare, and recreation options will support aging individuals and younger generations that desire walkable urban communities.

A 2011 report from Transportation For America found that more than 64% of Cincinnati’s population between the ages of 65 and 79 will have poor transit access by 2015 – ranking the region as the 17th worst out of 48 regions with 1-3 million people.

When asked about energy and the climate, approximately 74% said that rising energy costs have impacted their lifestyle choices surrounding transportation and utilities. With nearly 85% of those same respondents feeling confident about knowing where to go to get more information or help to achieve greater energy efficiency, it appears that organizations like the Greater Cincinnati Energy Alliance are making a positive impact.

“OKI needs to develop renewable energy sources for our area and eliminate all fossil fuel usage in the next 10 years,” responded one individual on the survey. “OKI needs to actively promote the Greater Cincinnati Energy Alliance that has enough funding to upgrade close to 70,000 homes and business in the Hamilton County and northern Kentucky.”

OKI officials state that while they currently have no authority, and seek no authority, over local land use decisions, they hope that the results of their updated SRPP will bring about more consistency between local land use planning and regional transportation planning.

On episode two of The UrbanCincy Podcast we discussed the issue of transportation poverty facing Cincinnati’s aging population, and how unsustainable development patterns are hurting the region’s environment and economy. You can stream our bi-weekly podcasts online for free, or download the podcasts on iTunes.

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Up To Speed

San Francisco looking to create $1.6B mixed-use environment around AT&T Park

San Francisco looking to create $1.6M mixed-use environment around AT&T Park.

The San Francisco Giants are not only looking to remain on top of baseball following their World Series Championship, they are also looking to improve the environs surrounding one of the league’s most unique ballparks. Just as was the case in Cincinnati with the Reds, the Giants are leading the charge to redevelop a parking lot into a mixed-use attraction. More from the San Francisco Chronicle:

The plan to put the long-awaited $1.6 billion Mission Rock development on the cold, desolate parking lot across the channel from AT&T Park is nearly complete, and the prospective landlords couldn’t be happier.

The development, now scheduled to break ground in 2015, would put an entirely new neighborhood on the 16-acre waterfront site known as Seawall Lot 337, providing space for 2,000 residents, 7,000 workers and hordes of visitors to the area’s planned parks, restaurants, shops and attractions.