PHOTOS: Downtown Construction Boom Underway

With well over $2 billion in new construction projects underway in Cincinnati’s urban core it is not hard to miss with construction fencing, cranes and lifts working at full tilt all over downtown and Over the Rhine. Many new construction and building renovations are underway throughout downtown and Over-the-Rhine. This gallery features photos of 16 projects taken this month. If added up the projects in the photos below are just a fraction of overall development with just over $400 million in construction activity.

 

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Cincinnati Neighborhood Wins Major Preservation Award

In 2006, Over-the-Rhine was listed as one of America’s Most Endangered Places by the National Trust for Historic Preservation. Today that very same neighborhood is celebrated as a tale of monumental historic revitalization and revival. That effort was honored yesterday at an awards ceremony in Washington D.C.

At a reception that is part of National Historic Preservation Advocacy Week, representatives from the City of Cincinnati’s Zoning Department, Cincinnati Center City Development Corporation (3CDC) and the Over-the-Rhine Foundation were presented with the “Preservation’s Best” of 2016 award by the group.

The event is sponsored by Preservation Action, American Institute of Architects, National Trust for Historic Preservation, National Trust Community Investment Corporation, Unico, Inc., and Center for Community Progress and aims to highlight significant projects developed through federal incentives such as Historic Tax Credits.

“Through federal incentives like the Historic Tax Credit, historic preservation drives economic development and community revitalization across the nation by taking historically significant buildings that are dated and abandoned and turning them into viable community assets for a 21st century economy.” spokesperson Rob Naylor said in a statement.

On hand from Cincinnati to receive the award was Kevin Pape of the Over-the-Rhine Foundation, Zoning Administrator Matt Shad and Historic Conservator Beth Johnson from the city. West side Congressman Steve Chabot (R) also attended.

Naylor stated that the award, “highlights exemplary Historic Tax Credit projects that revitalize our cities and small towns and breathe new life into our communities. At a time when the future of the Historic Tax Credit is uncertain, these projects help to highlight the impact the program has had in communities across the country.”

Since 1981, federal tax credits have helped save over 377 buildings in Over-the-Rhine for a total of $267 million dollars. Despite losing 50% of its housing stock since the 1930’s the neighborhood is still considered the largest collection of 19th century Italianate architecture in the country and has been regarded  as “the coolest neighborhood in America.

Editors Note: Mr. Yung is a member of the Over-the-Rhine Foundation Board of Trustees.

New Development Adds Affordable Housing, Restaurant to Over-the-Rhine

Another development is coming to the Brewery District. The Historic Conservation Board approved a zoning variance that will bring fifty affordable housing units and a restaurant to several vacant buildings along the streetcar line.

Affordable housing in Over-the-Rhine (OTR) has received a lot of press recently. Freeport Row, the newly-christened Source 3 development at Liberty and Elm, was heavily criticized because it lacked any affordable housing. Most recent development has been market-rate or luxury apartments, despite the fact that OTR’s average median income was $14,517 in the 2010 census.

The fears aren’t unfounded; the neighborhood has lost affordable housing. Xavier Community Business Institute determined that OTR and Pendleton have lost 2,300 affordable housing units since 2002. This project — called Abington Flats — will help replenish that stock. Three different companies banded together to create Abington: 3CDC, Model Group, and Cornerstone Corporation Renter Equity. 3CDC is developing the commercial space, while the other two control the residential space. This project is part of a larger effort by the team to develop hundreds of affordable units in OTR.

Abington Flats consists of five buildings, the largest of which is 33 Green Street. Built in 1910, the four-story building features a commercial space on the ground floor with three floors of residential apartments above. Model Group Senior Project Manager Jennifer Walke said that all five buildings need “substantial rehab.” 33 Green Street will be 100 percent ADA accessible. The team is shooting for LEED Silver certification.

In an email to UrbanCincy, 3CDC Communications Manager Joe Rudemiller said that, depending on future tenants’ needs, there will be up to four retail or office space and up to two restaurants or bars.

Finding a restaurant or bar will be key to the project’s long-term financial viability. Tax credits fund a building’s development and construction; they don’t cover operating costs. Rent from below market-rate units might not cover its full cost. Rent paid by commercial tenants offsets this difference.

This is why investors rarely back affordable housing projects. It’s hard to profit. Plus, tenants with less financial security pose a greater risk to the owners. Cornerstone’s shared equity program strives to overcome this trend. Tenants can earn equity through timely rent payments and property maintenance. Build up enough equity and — after five years — it becomes cash. Abington Flats will use their system.

Total costs hover around $17 million — $13.8 million for the residential portion and $3 million for the commercial space. Several subsidies fueled the development, including Federal and State Historic Tax Credits and Low-Income Housing Tax Credits.

New Market Tax Credits Key to City’s Revival

Cincinnati’s development coffers got a little fatter last week, as $125 million in federal tax subsidies flooded into the city. These subsidies, called New Market Tax Credits (NMTCs), incentivize local investors to funnel capital into low-income communities and have essentially bankrolled Over-the-Rhine’s entire revitalization.

For example, Washington Park — perhaps the most emblematic example of OTR’s rebirth — received nearly $14 million in New Market Tax Credits (NMTC) from the Local Initiatives Support Coalition (LISC) to help support its reconstruction. Several ongoing developments have also received some or all of their funding through NMTCs, including the Market Square and Ziegler Park projects.

Ziegler Park Aerial

New Market Tax Credits helped transform parts of Over-the-Rhine like the reconstruction of Ziegler Park (Photo by Travis Estell)

Developers often balk at the prospect of developing low-income communities because they fear their investment will be wasted. NMTC are the federal government’s attempts to allay these concerns. Congress first authorized the subsidies through the Community Renewal Tax Relief Act of 2000. Over the past fifteen years, the bill’s success has earned it bipartisan support. According to the program’s 2016 report, the tax credits have created 750,000 jobs and invested over $75 billion to businesses and revitalization projects in communities with high rates of poverty and unemployment.

Less than 25 percent of the applications submitted each year are awarded, but three major Cincinnati developers beat the odds this year: Cincinnati Development Fund ($65 million), Uptown Consortium (45 million), and the Kroger Community Development Entity ($15 million).

To win an NMTC grant, a corporation — in federal parlance, Community Development Entities (CDE) — must lobby the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund on behalf of private investors like the Cincinnati Center City Development Corporation (3CDC). If the CDFI approves the application, then the investors who pledged money to the CDE will receive a seven-year tax abatement to support development.

3CDC, in particular, has secured a eye-popping $238 million since the program’s inception. Without this capital, it’s unlikely that OTR would have changed as drastically as it has. The community was a no-brainer for NMTC-driven development due to its extreme poverty. The neighborhood’s median household income during the 2010 census was a paltry $14,517. Six years and billions of dollars have certainly improved its lot, but its average income still pales in comparison to the city’s 2015 median income, $56,826.

While OTR will likely continue to receive the majority of NMTC-driven development, other distressed neighborhoods are receiving attention. According to Director of Development Thea Munchel, the Walnut Hills Redevelopment Foundation expects approximately $6.5 million in NMTC Equity for its expected revitalization of Paramount Square. “It is too early to know who all will participate in the deal,” she said. “But Cincinnati Development Fund received a huge award and has indicated that they will contribute some into the project.”

PHOTOS: 16 Panorama Showing Over-the-Rhine’s Evolution

As the winter comes to an end, work has begun or will soon begin on a number of new developments around Over-the-Rhine. Today, we’re sharing 16 panoramas, taken over the past month, that show how the neighborhood is evolving. You can click on each of the images to view them full-screen and read the full description about each project.

Editor’s note: These photos were taken by Travis Estell for UrbanCincy between February 11 and March 8, 2016.