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Development News Politics

Smart Growth May Offer Cincinnati a Way Out of Its Structurally Imbalanced Budget

Land Use Budget ImpactsThe City of Cincinnati passed yet another structurally imbalanced budget late last week. At the meeting Vice Mayor Roxanne Qualls (C) and other council members admitted that the approved budget once again relied on a one-time fix to get the city through another budget cycle without significant layoffs and major funding cuts.

Despite having its hands tied in coming up with creative ways to find revenues, Cincinnati is not alone in dealing with this dilemma. Hundreds of cities across the nation are struggling with budget deficits with some much larger than ours.

Smart Growth America recently completed a national report, titled Building Better Budgets, with findings that could help many municipalities find long-term solutions to their budget crisis. The report makes three main arguments that smart growth development, described as compact, walkable and mixed-use overall save municipalities on upfront infrastructure costs, service costs and serve to increase the city’s tax base better than suburban style developments.

After reviewing a diverse collection of cities across America, such as Raleigh, NC,  Nashville, TN and Champagne, IL, the study found that smart growth development costs an average of 38% less for upfront infrastructure, saves municipalities an average of 10% on ongoing delivery of services, and generates approximately 10 times more tax revenue per acre when compared to conventional suburban development.

“These figures are conservative, and many communities could save even more,” authors of the report stated. “Smart growth development’s potential for lower costs and higher revenues means that many municipalities can operate smart growth development at a surplus rather than a deficit.”

How local projects stack up
Several projects on the horizon are poised to add to the tax base in Cincinnati’s urban core. Phase two of The Banks, dunhumbyUSA Centre, the 580 Building apartment conversion, hotels at the Bartlett Building and Enquirer Building, and proposed apartment buildings above Fountain Place and the parking garage at Seventh and Sycamore all offer the upfront infrastructure cost savings and long-term revenue advantages discussed in Smart Growth America’s report.

The redevelopment of the Pogue’s Garage into a 30-story apartment tower with a grocery store, and an 11-store Holiday Inn at Broadway and Eighth Street are two other projects that offer similar benefits, but are currently on hold due to the ongoing legal dispute surrounding the City of Cincinnati’s Parking Modernization & Lease Plan. Additionally, a slew of projects in Over-the-Rhine, Walnut Hills and Northside also appear poised to help stabilize the city’s finances thanks to their smart growth advantages.

Property Tax Yield

Not all is well, however, as many recent real estate investments throughout the city have taken the conventional suburban development approach. The Incline District in East Price Hill, Villages of Day Break in Bond Hill, Oakley Station in Oakley, MetroWest in Lower Price Hill, and developments along Red Bank Road in Madisonville all seem to be missing the bigger picture about the financial advantages of smart growth.

In addition to the actual footprint of the development, the report discusses the importance of a project’s site location.

“The per-acre measurement of tax revenue is extremely important because land is a precious commodity for every jurisdiction,” the report concluded. “It is true that in some cases the total dollar amount of tax revenue in conventional suburban settings can be very large, but those conventional suburban developments consume large amounts of land. Many cities in the United States have a constrained land supply and must husband their land resources carefully in order to protect their solvency.”

While many of the real estate investments throughout Cincinnati are being done in a smart manner, others seem to be squandering valuable urban land with suburban-style developments. The City of Cincinnati, and other cities around the region, might be able to make a long and sustained positive impact on their budgets by refusing to go forward with projects that offer an easy, short-term score, and instead demanding more sustainable development practices in their community.

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Business News Politics

Cincinnati’s Recommended Budget Calls for 201 Layoffs, Program Eliminations

Cincinnati City Manager Milton Dohoney released his recommended budget that makes a large number of cuts to fill the $35 million budget gap left behind following the State of Ohio’s reduction of $26 million in funding to the City of Cincinnati.

The original budget proposal from Dohoney included $25.8 million from an upfront payment included in the parking lease and modernization plan, which would have also included $3 million in annual payments thereafter. This proposal was approved 5-4 by City Council, but was put on hold by a local court until opponents were able to file petitions and get the proposal put on this November’s ballot for public vote.

“Though a legal victory is being vigorously pursued, the ultimate resolution is not assured in time to affect what must be in place by June 1 to take effect July 1, 2013,” Dohoney explained. “Should a final legal victory be realized after July 1, the Administration would presume to move expeditiously to reverse some of the impacts of the cuts contained within the recommended budget.”

Cincinnati Mounted Patrol
Cincinnati’s mounted patrol would be cut entirely if City Council passes the recommended budget. Photograph by Randy Simes for UrbanCincy.

The end result of these cuts includes the elimination of 66 police officers, 71 fire fighters, 64 city employees, and the elimination of 60 vacant positions. The recommended budget will also eliminate funding for the following items:

  • Greater Cincinnati Energy Alliance ($150,000)
  • Urban Agricultural Program ($65,000)
  • Heritage Events Subsidy – Opening Day Parade, St. Patrick’s Day Parade, Black Family Reunion, Juneteenth ($36,000)
  • Camp Washington, Fairview, Filson, Spring Grove Village, and Ziegler Pools ($167,650)
  • Bush Recreation Center in Walnut Hills ($127,710)
  • Energy Management Program ($100,010)
  • Mounted Patrol ($95,000)
  • Community Prosecution Program ($83,857)
  • Delinquent Accounts/Receivables Program ($75,460)
  • Claims Program ($55,680)
  • Tire Collection Program ($30,880)

In addition to the elimination of these programs, no funding is budgeted for either 2014 or 2015 as a result of limited General Fund resources.

Furloughs for City Management staff will also take place, and the City of Cincinnati would also use a larger amount of projected casino revenues to balance this budget, even though Dohoney has recommended against that in the past due to the unpredictability of these funds.

“While balancing a budget deficit with mostly cuts is not preferred, the timing of the new fiscal year coupled with the timing of the litigation over the parking deal makes it the only real option with a number this large,” Dohoney stated in a prepared release. “Our goal is going to be to recall staff as soon as possible and provide the best customer service we can deliver for the citizens in the meantime.”

A number of other measures are taken in the recommended budget to help close the budget gap, but the large amount of savings is realized through personnel layoffs. Dohoney has also recommended that the property tax millage increase from 5.7 mills to its maximum allowed 6.1 mills to raise an additional $1.3 million annually.

To help engage the public in this budget process, Cincinnati Vice Mayor Roxanne Qualls (C) has scheduled three public hearings. The first will take place at the Duke Energy Convention Center on Thursday, May 16 at 6:30pm, the second will occur on Monday, May 20 at 6:30pm at the College Hill Recreation Center, and the final meeting will take place at the Madisonville Recreation Center on Wednesday, May 22 at 6:30pm.

“My priority for the FY 2014 city operating budget is to make sure that all Cincinnati’s neighborhoods are safe and that we continue to attack blight that breeds crime,” Qualls stated. “As chair of the Budget and Finance Committee I will work to further reduce the number of layoffs for police, fire and health department personnel, to ensure that we keep all our neighborhoods safe and clean.”

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Development News

Cincinnati Recognized for Recent Planning Successes, Historical Achievements at APA

Last month the American Planning Association (APA) held its annual conference for planning professionals. The 2013 conference was held in Chicago and organizers made efforts to showcase planning efforts of The Second City.

The educational sessions at the conference are made up of presentations by planning officials across the country. A few of the sessions were hosted by Cincinnati Planning officials who highlighted some of Cincinnati’s recent planning successes.

Of the three sessions that featured Cincinnati city planners, one actually focused on the recently adopted PLAN Cincinnati comprehensive plan.

The Banks
Cincinnati and Hamilton County received a national award from the APA for the implementation of the Central Riverfront Master Plan and The Banks. Photograph by Randy Simes for UrbanCincy.

The plan was approved by the city in October 2012 and is the first long-term comprehensive planning vision of the city since 1980. The seminar also highlighted Cincinnati’s rich planning heritage as the city carries the noteworthy distinction of drafting the first ever city-wide comprehensive plan in the 1925 Master Plan. That plan, along with the 1907 Kessler Parks Plan, envisioned a walkable cityscape with an extensive parks system.

However, after World War II, the city drafted the 1948 Comprehensive Plan which proposed several highways and urban renewal projects. The 1948 plan was successfully implemented but instead of the promised revitalization of the city, the highway system and slum clearance policies supported by the plan drove the city’s population to the suburbs.

“The highway was unfortunately a successful implementation,” explained Gregory Dale from McBride Dale Clarion Associates, “Sixty years later we’re still trying to repair the damage.”

Presenters also highlighted how the Cincinnati’s Planning Department overcame the problems of being dissolved in 2002 and reconstituted in 2007.

“In some ways I think maybe if we had not been eliminated as a departments, maybe there would not be that strength today, maybe it wouldn’t have woken people up to see the importance of planning,” recalled Cincinnati Senior Planner Katherine Keough-Jurs.

She went on to say that she noticed the involvement and passion of participants in the new comprehensive plan was a positive sign that citizens were concerned about the future direction of the city. The citizen participation in the new plan highlighted residents desire for creating and reinvigorating walkable neighborhoods and commercial centers.

“The plan is unapologetically urban,”  Keough-Jurs told session attendees,”In many ways our new comprehensive plan returns to the vision of the 1925 plan.”

At the conference the City of Cincinnati and Hamilton County received an Excellence in Planning award from the APA for the implementation of the Central Riverfront Master Plan. That plan, which was first developed in the late 1990’s when the stadiums and Fort Washington Way were proposed for reconstruction envisioned a new mixed-use riverfront neighborhood called The Banks.

In 2011 the first phase of the mixed-use neighborhood opened to the public and the second phase is slated to begin construction this year.

The planning department’s most recent project, the adoption of the final draft of the form-based code is on City Council’s Livable Communities Committee Agenda today for their 1pm meeting.

The code was approved by the city’s Planning Commission on March 7. Once the code wins approval from the committee it will go on to the full council for a vote. The city’s planning department is looking to meet with the four demonstration neighborhoods – Walnut Hills, Westwood, Madisonville, College Hill – in the coming months to move forward with changes in the zoning map to implement the form-based code.

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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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Business Development News Politics

Cincinnati spreads neighborhood investment in 2013 budget

Last week Cincinnati City Council approved its yearly budget for the coming fiscal year. The approved budget lays out several city priorities for funding redevelopment efforts in many of the city’s 52 neighborhoods.

“This budget prioritizes our neighborhoods and will improve our economic competitiveness, make the city safer and healthier, protect our citizens who are most in need, and support our world class parks and arts,” Cincinnati Vice Mayor Roxanne Qualls (C) stated in a prepared release.

City officials say the increased funding will go towards two programs that are designed to maximize impacts on neighborhoods throughout the city.


Cincinnati’s new budget directs funding towards the city’s 52 neighborhoods and invests in walkable neighborhood districts like Calhoun/McMillan in Clifton Heights (above). Photograph by Randy Simes for UrbanCincy.

The first program creates a new fund called Focus 52, which will create a pool of $54 million designed to focus on neighborhood projects by utilizing strategies developed from the city’s successes in the urban core.

“This budget will take the lessons we’ve learned from our success in downtown and Over-the-Rhine redevelopment and give our neighborhoods the support to take that momentum into their communities,” Qualls continued.

The second program endorses 13 neighborhood enhancement projects in neighborhoods such as Avondale, Walnut Hills, Mt. Adams and Price Hill. The annual funding for these projects comes from the Neighborhood Business District Improvement Program (NBDIP), which was created in partnership between the City’s Economic Development Division and the Cincinnati Neighborhood Business Districts United.

“Thriving neighborhood business districts will not only provide a high quality of life for current residents – they’re also key to attracting new residents,” said Odis Jones, Cincinnati’s Economic Development Director. “The NBDIP process reaffirms our commitment to strategically investing in neighborhoods to grow the city and the local economy.”

This commitment to city neighborhoods was recently outlined in the city’s recently adopted comprehensive plan, Plan Cincinnati. Several of the goals outlined in the new plan focus heavily on the continued development of the city’s traditional walkable neighborhood centers. The plan outlines over 40 different centers outside of downtown and calls for the assessment of neighborhood needs and the rehabilitation of neighborhood centers by utilizing tools such as the city’s new form-based code.

Working to begin the implementation of this new plan Vice Mayor Qualls has directed staff to identify sources of capital funding to begin accomplishing some of the plans goals.

“Plan Cincinnati includes strategies that for the first time put the focus on economic development in the city’s neighborhoods,” Qualls stated. “This budget will ensure that spending supports those strategies and translates into results in our neighborhoods.”