Federal Reserve Finds Cincinnati Out-Performing Many Of Its Regional, National Peers

The Vice President and Senior Regional Officer of the Federal Reserve Bank of Cleveland‘s Cincinnati Branch, LaVaughn Henry, says that the Cincinnati Metropolitan Statistical Area continues to show positive signs in recovering from the Great Recession, and is moving toward a position of long-term growth.

At approximately 2% higher than its pre-recession level, Henry says that per capita GDP in the Cincinnati area is out-performing other nearby metropolitan areas, along with the rest of Ohio.

Likewise, the unemployment rate is lower in Cincinnati than other metropolitan areas nearby. It is currently 4.1%, the lowest level in a decade. However, employment is still nearly 2% below its pre-recession level in the Cincinnati region.

The construction industry has seen large employment gains in the area, driven by increased home sales but also by Cincinnati’s ongoing center city construction boom.

Henry reports that the region’s manufacturing is also growing healthily, surpassing the growth seen both nationally and state-wide. This growth, he says, reflects increased demand from the aviation and automobile sectors of the U.S. economy. These two sectors, however, only account for 4% and 10% of the metropolitan GDP, respectively.

Larger sectors like transportation and utilities, while still seeing growth, are increasing at a slower pace.

Cincinnati Lags Milwaukee In Establishing Itself As Hub For Water Technology

Water’s importance, not only as a natural resource but as a driver of innovation and new technology, has been much-touted recently. While Cincinnati has hosted meetings and been pin-pointed as a national focus area for water innovation, impressive progress in this sector can be seen further north in Milwaukee.

Sitting on Lake Michigan, Milwaukee is a natural candidate for water innovation technology. As far back as 2006, a group of local business leaders created The Water Council with the intended goal of developing cooperation between the more than 100 water-related businesses and universities, government agencies, and other means of support.

Initiatives like B.R.E.W. (Business. Research. Entrepreneurship. In Wisconsin.) are among the many activities The Water Council supports.

Because of Milwaukee’s important water industry, those groups involved with The Water Council are creating the Water Technology District – intended to be a cluster and hub of innovation in the water industry. The city, looking to help The Water Council incubate water-related businesses in Milwaukee, has committed to developing the Reed Street Yards.

Dissected by the Menomonee River, the Reed Street Yards is a former rail yard, truck depot, and brownfield site in close proximity to downtown and with large amounts of available space for development.

The result has been the Global Water Technology Park.

Infrastructure within the park reflects the intentions of the involved organizations. The new public access road Freshwater Way, for example, is paved with PaveDrain, which is a water-friendly permeable surface. This permeable material was developed by a local company that now rents space in the business park. A special pipe system also helps pump recycled water to buildings to be used in non-potable functions like landscaping.

The city’s gamble on helping create this district seems to be paying off already: they recently attracted the global headquarters of a manufacturer of plumbing products focused on sustainability.

The Water Council’s headquarters is also in the business park, which houses university departments, startups, and other organizations. The space is 100% occupied and there are already concrete plans to open a second office.

Furthermore, the University of Wisconsin-Milwaukee now has the first graduate program in the country solely for freshwater research in their School of Freshwater Sciences; and they have since established a campus in the business park as well.

Extending beyond only water innovation and technology, the development around this sector has revitalized the local Walker’s Point neighborhood. Formerly highlighted by abandoned warehouses, the neighborhood has seen an increase in businesses and apartments.

Cincinnati, long-defined by the Ohio River, is an obvious candidate for similar development.

In March 2014, Cincinnati hosted the EPA’s Water Technology Innovation Cluster Meeting, the first gathering of its kind for national water-related groups and companies. Confluence, a local water-focused group representing Cincinnati, Dayton, Northern Kentucky, and Southeast Indiana, was present at the meeting.

And on November 12, the Woman’s City Club of Greater Cincinnati hosted an event to discuss how the region’s water technology resources can be better leveraged for innovation throughout the region. The meeting, called Liquid Gold: the Cincinnati ‘Water’ Technology Story, aimed to bring together the several clusters already focusing on this local asset; and featured local nonprofits, businesses, and other groups.

While these conferences show an interest in the topic, the region has thus far lacked a concerted effort on the part of local government, academia, and the private sector in advancing water innovation. Milwaukee has proven that this level of cooperation is needed to jump-start an industry that will continue to grow in importance (and employment) in the coming decades.

Cincinnati’s Growth in Bicycle Commuters Third Fastest in America

Newly released data from the U.S. Census Bureau shows that the number of people commuting to work by bike continues to rise all across the United States. The League of American Bicyclists took an in-depth look at these numbers and found that Cincinnati is one of the fastest-growing bicycling cities in America.

According to the data produced by the American Community Survey, Cincinnati has the highest percentage of people commuting to work by bike of any city in Ohio.

This places the Queen City in 31st place for the largest percentage of bike commuters in America. Columbus and Cleveland come in at 36th and 40th, respectfully. Toledo, meanwhile, was the only other Ohio city to crack the top 70 and came in at 67th.

“Cincinnati is leading the state in establishing bicycle commuting as a viable means of active transportation,” Frank Henson, President of Queen City Bike‘s Board of Trustees, told UrbanCincy. “We are coming to an understanding that bicycle commuting is safe, sustainable and a healthy choice for everyday transportation.”

What is perhaps more telling is that Cincinnati registered the third-fastest growth rate of bicycle commuters in American from 2000 to 2014.

During that four-year period, ACS data shows that Cincinnati saw a 350% increase in its percentage of bicycle commuters, trailing only Pittsburgh (361%) and Detroit (403%), and edging out Portland, OR (307%). Cleveland also clocked in amongst the top ten in this category with a 238% increase; while Columbus registered a 124% increase. For Cincinnati this builds on its impressive showing over the previous decade where it was a Midwest leader.

Industry experts note that a common thread between many of the communities registering the fastest growth rates is increased investment in bike lanes.

In fact, it was in June 2010 when Cincinnati adopted and began implementing its Bicycle Transportation Plan, which calls for 445 miles of on-street and off-street bike paths by 2025. While that plan mostly calls for non-protected bike lanes, best practices have quickly evolved and now protected bike lanes, like the one on Central Parkway, are widely considered the safest and most efficient alternative.

“Ironically, these days when drivers yell at me for riding in the street, they are just as likely to yell ‘Get in the bike lane!’ as ‘Get off the street!”, explained Margy Waller, who helps organize several group bike rides throughout the year. “To me this suggests that drivers understand the value of the bike lane for all street users. Unfortunately, the drivers don’t seem to realize that most streets don’t have a bike lane, but I bet they’d support more of them.”

While the growth in the number of people commuting by bike is impressive, it still accounts for less than 1% of all commute-related trips in Cincinnati. Implementation of the Bicycle Transportation Plan has been important in notching these improvements over the past four years, but that progress has been slow and inconsistent.

CDK Global Appears Poised To Bring 1,000 Tech Jobs to Norwood

On Monday it was announced that CDK Global, an integrated technology and market services provider, would relocate 1,000 jobs to the Cincinnati region. At the time of the announcement, however, a specific site was not identified.

Given the company’s focus, UrbanCincy suggested a site somewhere in the center city would make sense for CDK and their employees. Since that time we have learned that the company will most likely move into the large Central Parke office complex in Norwood.

Located at Montgomery Road and Sherman Avenue, the site is in the heart of Norwood and is just down the street from Paycor’s new headquarters in Linden Pointe. Cassidy Turley lists Central Parke as having a block of 95,000 square feet of office space available following the relocation of Cincinnati Bell’s operations to downtown Cincinnati over the past year-and-a-half.

REDI Cincinnati, the region’s job attraction and retention organization, would not confirm the location, but sources close to UrbanCincy say that a deal is in fact close to being finalized. Representatives at CDK Global also would not confirm the information, but did say that they expect to close on a deal by Monday.

If true, it would follow a trend of major employers increasingly choosing in-town locations rather than suburban alternatives that long defined economic moves over the past several decades. It would also be a major win for Norwood which has struggled to maintain its tax revenues as company after company has left the aging industrial city for other locations.

With annual payroll estimated to be around $45 million, the City of Norwood would receive approximately $900,000 annually in new tax revenues from their 2% earnings tax. This is not accounting for any types of tax breaks that may have been offered by the City of Norwood in addition to those given by the State of Ohio.

The Central Parke complex was developed on the former General Motors production plant that was shuttered, along with its 4,000 jobs, in 1987. Since that time, the City of Norwood has struggled economically and been dealt several setbacks in its efforts to diversify its tax base. Such struggles have meant credit rating hits and caused the city to drastically cut its budget and reduce public services over the years.

While landing CDK would help in the short-term, the future continues to look problematic for Norwood with fewer and fewer resources coming from the statehouse in Columbus. As a result, it may still make sense for a municipal merger with the City of Cincinnati in the future, which is both more economically powerful and stable.

The former office space occupied by Cincinnati Bell is reportedly in good condition and will require minimal upgrades in order to accommodate CDK’s staff. Its location is accessible by two Metro bus routes – the #4 and #51 – and has a Walk Score of 85.

Cincinnati Well-Positioned to Become America’s Air Pollution Leader

As if the Ohio River valley was already enough of a factor in the stagnation of air pollution in this region, now Cincinnati leaders have charted course on an effort that would advance the city’s ranking on the list of most polluted cities in America.

The list, released last month, shows that out of the top 100 metropolitan areas Cincinnati’s air quality is the eighth worst, with Cleveland coming in right behind us at number 10.

“We’re in a good position to close the gap to being in the top five over the next few years,” a layperson told UrbanCincy. “As long as our region keeps on driving everywhere those numbers are bound to increase.”

In fact, as construction continues on the new MLK Interchange along I-71, and the widening of I-75, the induced traffic demand from those two projects alone will allow for even more cars to become stuck on the region’s already gridlocked highways during rush hour.

“Widening highways to relieve traffic congestion is like an overweight person loosening their belt to lose weight,” someone smart once told us.

The $2.6 billion Brent Spence Bridge project, if it ever gets off the ground, would also do much to help push the region up the charts toward the most polluted city in America. In particular, many motorists look forward to the more pronounced smog and foggy orange haze expected to hang over the city and region for years to come.

Air quality is very important to Suburban Person, a financial analyst that works downtown. He tells UrbanCincy that he moved thirty miles out of the city just to escape the smog. Since he still works downtown he informed us he is sitting stuck in traffic on I-75 as of the writing of this article.

Time will tell if those evil progressive urbanists will get in the way of the grand plan by succeeding in actually passing some sort of regional mass transit plan, or even a streetcar extension, but until then the best way to the top is to keep on driving. Happy motoring everyone!

EDITORIAL NOTE: If it was not abundantly clear already, this is a satire post. No one should be proud of the fact that Cincinnati has the 8th worst air pollution in America.