New Downtown Coworking Space More Than Just A Number

1628. What’s in a number? Is it a year, an address, or something else? Actually it is the name of downtowns newest co-working location. 1628 is named for a year of several noteworthy events including the setting of “The Three Musketeers,” and the founding of the oldest educational institute in North America, the Collegiate School. But most importantly it is the year that the word coworking was first published in a book by John Jackson called, “The Worthy Churchman.”

Coworking spaces are typically an open office environment where entrepreneurs and other different business owners can work together in shared space. Members typically get access to an office setting, Internet connections and a community without signing a lease for their own office.

Tamara Schwarting, founder and CEO of 1628 is positioning the space to go beyond the typical definition of coworking. The venture out of a desire to run her own business, TLS Consulting Group in a space other than her home or a coffee shop.

“I found myself as a mid-career consultant with over two decades of corporate experience.  I started my first year in consulting as an independent professional working from home or coffee shops,” Schwarting told UrbanCincy, “However I found myself longing for the community and efficiency of an office, I built 1628 to reflect the desires of others who like me want a workplace designed to inspire.”

This slideshow requires JavaScript.

1628’s facilities are targeted at the mid-career professional looking for a more sophisticated location and could be a sub-contractor to one of Cincinnati’s many corporate headquarters.

Located along Piatt Park at 11 Garfield Place and next door to Cafe Paris, it is centrally located just two blocks from Fountain Square, a Cincinnati Bell Connector stop and across the street from a Cincy RedBike station at the Public Library.

What sets 1628 apart from other coworking spaces is the quality of its amenities for members. These include five conference rooms, each equipped with Smart TV’s, speakerphones and iPads, secure Cincinnati Bell FiOptics in addition to quiet rooms, a kitchen and a media room for breaks. At capacity the space can hold anywhere between 40-50 people at one time and has flexible space for events.

1628 opened at the start of this year and interested parties can learn more about the space through their website.

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.

Popular Brewery Rhinegeist Prepares Restaurant Space

Rhinegeist, the popular brewery in Over-the-Rhine, recently received approval from the city’s Historic Conservation Board to make alterations to the space at the southwest corner of their building, at the intersection of Elm and Eton Place.  Specifically, they requested to make the following modifications:

– Install a new lift/elevator and stairwell entrance

– Install new two-over-two windows

– Repair and improve stairs at entrance

– Install new entrance door

Within their application, they include proposed drawings for the space.  The renderings are of a restaurant that includes a kitchen, bar, dining area, and a private event/dining space.  Rhinegeist declined to comment or provide any further details on the space, saying they are not yet ready to make a detailed announcement.

This development follows a flurry of investments that Rhinegeist has made since opening in June of 2013.  Rhinegeist then invested $10 million to expand operations.  This included the purchase of their building from Orton Development for $4.2 million in November of 2014, new brewing equipment in early 2015, and the 4,500 square foot deck that opened in 2016.  The new production equipment enabled them to triple production from 11,000 barrels in 2014, the first full year of operation, to 31,000 barrels in 2015.  Rhinegeist also built an almost 8,000 square foot private event space in 2015 that began holding weddings and other events in September of 2015.

Besides changes made inside the building, several assets have been added outside of Rhinegeist since their opening in 2013.  In 2014, Rhinegeist was the first business to pledge funding for streetcar operations at $5,000 per year.  The Brewery District stop for the Cincinnati Bell Connector, which began operations in September earlier this year, is located just outside of Rhinegeist’s entrance.  In addition to the streetcar stop, Cincy Red Bike also opened a station outside of Rhinegeist’s entrance in July of this year.  Additionally, ArtWorks completed a mural outside the brewery last month.

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.”

Cincinnati Rent Data Reveals Housing Challenges

Renting an apartment in Cincinnati is comparable in price to most of the geographically close and similar-sized cities in the Industrial Midwest and Upper South regions. Apartment-finding website RentCafé investigated the average apartment size and rent in America’s 100 largest cities. Using a baseline of $1,500, the data provides a glimpse America’s most and least-expensive cities.

Cincinnati’s price per square foot comes out to be exactly $1.00 and, with an average apartment size of 863 square feet, the average rent in the city is $866. Cincinnati is identical in price per square foot with St. Louis, MO, although a smaller average apartment size makes the average rent ($839) cheaper in that city. Cincinnati’s average rent is less than in Pittsburgh, PA ($1,070) and Cleveland, OH ($927) but more expensive than Columbus ($800), Indianapolis ($758), and Louisville ($841). Besides Indianapolis and Pittsburgh, most nearby cities remained relatively similar in average rent prices.

rentanalysisohio

RentCafé’s data also shows, unsurprisingly, that New York City, San Francisco, and Boston top the list with average rents coming out to $4,031, $3,275, and $3,111, respectively. Using the baseline of $1,500, you could afford a 271 square foot apartment in New York City, a 342 square foot one in San Francisco, or an apartment with 399 square feet in Boston. Other cities at the top of the list include other expected cities such as Washington, DC, Seattle, WA, and Los Angeles, CA. The cheapest cities for rent in the nation are Memphis, TN, Wichita KS, and Winston-Salem, NC.

Despite rent in Cincinnati and related cities being relatively cheap renters in these cities’ respective counties struggle to afford a decent apartment. Based on data from the National Low Income Housing Coalition (NLIHC), a typical renter household in Hamilton County, OH (Cincinnati) will spend 36.9% of their income to afford a two-bedroom apartment. The NLIHC considers anything more than 30% to be unaffordable. In Marion County, IN (Indianapolis) that number is 35.1%, in Jefferson County, KY (Louisville) it’s 35.5%, 33.9% in Allegheny County, PA (Pittsburgh), and 37.1% in Cuyahoga County, OH (Cleveland). Franklin County, OH (Columbus) comes close to being affordable at 30.4% and St. Louis County barely makes the cut at 29.7%.

While housing crises are well-documented and discussed in America’s booming cities like New York City and San Francisco, this data shows the need for more affordable housing in many of America’s smaller metropolises as well. In fact, looking at the data from the National Low Income Housing Coalition, one would be hard-pressed to find many major American cities that meet the 30% of income threshold set by the NLIHC.