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New report confirms potential economic impacts of the Cincinnati Streetcar

A new report released by the Center for Transit-Oriented Development finds that transit investments like the Cincinnati Streetcar are winning economic winners. The report studied the three most recently opened light rail lines in the United States and discovered that urban portions of the lines were most successful at spurring economic activity and ridership.

Contrary to popular belief that rail transit is only successful in liberal bastions like Portland, San Francisco, New York, Chicago, Washington D.C., Philadelphia or Seattle, the report looked at three modest cities in terms of political affections: Charlotte, Denver and Minneapolis.

Rails to Real Estate: Development Patterns along Three New Transit Lines also identified Charlotte’s Blue Line as the most successful despite being the having the least number of years studied of the three and being the smallest of the three transit lines. The economic patterns were consistent though, with each transit line experiencing anywhere from six to ten million square feet of new development since they opened. The report attributes the success is to five main considerations:

  1. Proximity to downtowns and other major employment centers
  2. The location and extent of vacant or “underutilized” property that might offer opportunities for development or redevelopment
  3. Block patterns that influence “walkability”
  4. Transit connectivity
  5. Household incomes

“We need to make transit investments that unlock the potential for TOD, but we need to make them in the right places,” said the director of the Center for Transit-Oriented Development, Sam Zimbabwe.

Cincinnati’s modern streetcar system has recently been challenged by Ohio Governor John Kasich (R) in regards to its ability to generate economic investments and create jobs. This challenge goes against economic studies performed by HDR Economics and confirmed by the University of Cincinnati’s award-winning economist George Vredeveld. When applying the key findings of the Center for Transit-Oriented Development’s recent report Cincinnati’s streetcar system looks to be an even bigger winner than expected by the OKI Regional Council of Governments (OKI) and Ohio Transportation Review Advisory Council (TRAC) which have both enthusiastically supported the project.

The Cincinnati Streetcar meets all five of the reports key considerations for economic success along transit lines. The system runs through downtown Cincinnati and connects the regions two largest employment centers, and serves areas that include vacant and underutilized properties that offer opportunities for development or redevelopment. The Cincinnati Streetcar also connects with the region’s focal point for bus transit, serves a block pattern that is extremely walkable, and includes a diverse range of household incomes.

And while the report shows Charlotte as the big winner, its findings show that the Cincinnati Streetcar could be even more successful than the Blue Line’s approximately 9.8 million square feet worth of real estate investment between 2005 and 2009. The main reason is, of course, location.

Cincinnati’s streetcar line will serve an area better equipped and positioned for transit-oriented development (TOD) when compared to Charlotte’s Blue Line which saw economic investments drop off precipitously after leaving that city’s downtown (Uptown) and adjacent residential neighborhood (South End). When compared to Charlotte, Cincinnati’s downtown and adjacent residential areas (Over-the-Rhine, Clifton Heights, Mt. Auburn, Corryville, University Heights) served by the streetcar line represent significantly greater land area prime for TOD.

Major economic investments are already occurring on and around the Cincinnati Streetcar line in anticipation of its opening in 2013. In Clifton Heights the $70 million U Square at The Loop mixed-use development derives its name from its proximity to the streetcar’s connection to Uptown. In Over-the-Rhine Rookwood Pottery, Christian Moerlein, the $400 million Horseshoe Casino Cincinnati and dozens of small businesses have expressed their hopes for the eventual opening of the modern streetcar system. And in downtown developers of The Banks and other major developments have begun using the Cincinnati Streetcar as a marketing tool.

In addition to the existing positives for Cincinnati’s streetcar system when it comes to TOD, the planned streetcar system also has local planning efforts supporting it. In 2010 Cincinnati City Council passed a measure that will reduce or eliminate parking requirements at residential developments within two blocks of a streetcar stop. The streetcar system will also be managed with the Southwest Ohio Regional Transit Authority (SORTA) which currently operates Metro bus service and plans to coordinate the two systems.

The report noted that while transit improvements were a factor in the real estate investments, that coordination with longer-term efforts to revitalize center cities was greatly important.

“This study marks an important step in understanding the impact of transit investments in three regions, and the implications for other communities looking to transit investments as a source of long-term economic prosperity and competitiveness,” Zimbabwe stated. “Investments in neighborhood infrastructure and amenities are critical for unlocking the potential for TOD.”

When the study examined the differences between the lines in Charlotte, Denver and Minneapolis it showed that the urban portions were most successful at attracting economic investment. Charlotte’s Blue Line (9.6 miles) saw approximately 1,021,000 square feet of development per mile, while Denver’s Southeast Corridor (19.1 miles) and Minneapolis’ Hiawatha Line (12.3 miles) saw 408,000 and 545,000 square feet of development per mile respectively.

The results from this study are clear for transit-oriented development. An urban setting with opportunities for development, close proximity to job centers and transit connectivity are critical for economic success. Suburban areas show diminishing returns in the form of economic activity and real estate investment along transit line. The Cincinnati Streetcar represents all of the key considerations and more, and is exactly why the project has received TRAC’s highest score for two consecutive years out of every transportation project in Ohio.

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Business Development News

Residential development thriving in historic Over-the-Rhine

While Cincinnati deals with the news from the U.S. Census Bureau that the city lost 10 percent of its population over the past decade, there is positive news from the city’s urban core. The Central Business District had a gain of more than 20 percent, while Clifton Heights, University Heights, downtown Covington and Newport, and portions of Over-the-Rhine saws gains of 10-20 percent.

The news is particularly encouraging for Over-the-Rhine which has seen its population decrease from more than 50,000 people at its peak, to roughly 10,000 people today. The most growth in the historic neighborhood occurred in the areas where the Cincinnati Center City Development Corporation (3CDC) has focused its energies over the past five years.

“The renaissance of Over-the-Rhine continues block by block and building by building,” says Cincinnati Mayor Mark Mallory. “It is clear that people want to live in our urban core and want to be a part of the rebirth that is happening. We are going to continue to restore this historic neighborhood back to a vibrant and active community.”

The next phases of redevelopment in Over-the-Rhine are just now coming to life along Race Street. On Tuesday, March 29 3CDC will gather with the NorthPointe Group and John Hueber Homes to celebrate the opening of Westfalen Lofts. The three previously vacant buildings have been transformed into nine residential units that include townhomes, flats and a single-family residence.

“This is the first development where we have partnered with John Huber Homes,” stated Chad Munitz, Executive Vice President of Development and Operations at 3CDC. “We feel they bring a new look to the historical residential units that we have not yet seen.”

Since 2005, 3CDC has spearheaded the creation of 234 new residential units. Of those 234 residential units, 74 percent of the 182 condominiums have been sold. Additionally, 100 percent of the 52 rental units, with the 32 units in Parvis Lofts being leased in just ten weeks.

Race Street redevelopment photograph by Jake Mecklenborg for UrbanCincy.

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Arts & Entertainment Business News

New PopShop celebrates Cincinnati crafters in a DIY space

Those passing by 1301 Main Street have noticed cardboard and hot pink ducktape decorating a previously empty storefront. The new space is decked out for this Friday’s PopShop – a new pop up shop coinciding with March’s Final Friday gallery walk that brings visitors into the Pendleton Art Center, down Main Street, and over to Vine via 12th and 13th.

The new space plays host to 11 local entrepreneurs and designers, who will have their handmade and vintage housewares, accessories, clothing, and other assorted intricacies for sale. Selling a wide variety of objects d’art – from bow shaped fanny packs to jewelry designed by women in Over-the-Rhine and everything in between.

The idea for a temporary space that allows pop-culture creativity to bloom was conceived by a trifecta of local women already involved in Over-the-Rhine’s burgeoning arts scene. Jessie Cundiff, a collaborator at MUD studio, Catherine Richards, art director and program manager of the Future Blooms program, and Tamia Stinson, owner and managing editor of StyleSample magazine. After meeting at a Merchants on Main event, the co-founders wanted to open the space as a way for small business owners to try out the Over-the-Rhine location before fully committing to a gallery or retail space.

“This is perfect for us,” said Rosie Kovacs, owner of the Brush Factory. “We want to test the waters down there [OTR].” Combining many retailers into one space, not unlike the popular Holiday Shop on Vine Street in December, decreases the stress of one person paying rent, and makes the new space a one stop shop for visitors to see something new.

The space is still getting some finishing touches, but features window installations, a chandelier made of recycled materials, and furnishings constructed from found objects. The PopShop ladies decided on a deconstructed, Do-it-Yourself theme, emphasizing the pack and go nature of the pop-up shop for the interior of the store. They took inspiration from innovative storefronts like Anthropologie that utilize found and recycled materials to create ethereal, interesting windowscapes.

The PopShop will be open from 5pm to 10pm on Friday, March 25, and features an opening reception with music, treats, and an opportunity for shoppers to get crafty with an interactive DIY area. Saturday, March 26 the PopShop is open from 11am to 6 pm, with vendors on hand demonstrating their art, and a trunk show beginning at 5 pm for Dress for Success from the 4th Street Boutique. All proceeds from the sale of 4th Street Boutique merchandise will go directly to the charitable program that assists low-income women in acquiring appropriate attire for job interviews.

“We’re most excited about the opportunity to collaborate with amazingly creative folks in and around Cincinnati–there’s so much talent that deserves a voice,” said co-founder Tamia Stinson. “Our hope is that PopShop will serve as an introduction between independent entrepreneurs and Over-the-Rhine, and a foot in the door for those wanting to set up their business there.”

The Final Friday PopShop is located at 1301 Main Street and is open on Friday and Saturday, March 25-26. Vendors include Dulcet Design, Hark + Hark, Jessie Cundiff, Carla Rabbit, the Brush Factory, Saint Lexi, Dulcet Design, Katie Ferncez, the Sarah Center, and 4th Street Boutique.

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Business Development News Politics Transportation

Cincinnati region, transit projects take overwhelming brunt of recommended transportation cuts

Ohio’s Transportation Review Advisory Council (TRAC) met today in Columbus and was greeted by 32 Cincinnati Streetcar supporters, ranging from families to young professionals, small business owners, CEOs and VPs of corporations, and city staff. The council and Ohio Department of Transportation staff members, according to UrbanCincy writer Jenny Kessler who was one of those in attendance, appeared surprised at the turnout.

The TRAC held a working meeting at 10 am with the ODOT staff (as the director of ODOT, Jerry Wright is the chairman of the TRAC) to hear the staff’s drafted recommendations for which projects to cut and keep in the 2011-2015 Major Project List . The result was a recommendation of $98 million in cuts. UrbanCincy research reveals that the way in which those cuts were administered in particularly shocking.

  • 52% of all cuts came from the state’s highest-rated project – The Cincinnati Streetcar – which is positioned to now lose 100% of all funds originally recommended for the project.
  • The Cincinnati region got hit the hardest in Ohio. 82% of all cuts recommended by the TRAC are from the Cincinnati region and account for roughly $80 million.
  • $1 million was taken from upgrades to the Queensgate rail yard that would have relieved freight rail traffic.
  • Two highway projects, from Governor John Kasich‘s (R) district, totalling $7.7 million were added to the TRAC’s listed of recommended funding.
  • Non-highway investments now only make up 26% of the TRAC’s recommended transportation projects in terms of overall funding ($18.2M) and number of projects (4).

Kessler reported that Kasich’s staff advised the TRAC to reallocate $15 million from the Cincinnati Streetcar to a bus corridor project in Canton, and $35 million from the Cincinnati Streetcar to the $3 billion Brent Spence Bridge project. What many transportation experts now seemed to be concerned about is the process in which the TRAC is being advised to cut.

“There is no legitimate reason why the TRAC should cut from the top rather than the bottom,” said All Aboard Ohio executive director Ken Prendergast. “If the TRAC ignores its own scoring process, then I’m not sure why Director Wray urged the TRAC’s creation in 1997 as a useful way to limit political influence on selecting transportation projects for funding.”

Evidently several TRAC members feel the same way. As the meeting progressed, William Brennan verbally expressed concern over the state’s top-rated project shouldering the load.

“The number one rated project is recommended to take the brunt of the cuts…that’s a problem for me,” said the Toledo native. As Brennan made the statement, several other members nodded in agreement including Antoinette Maddox, Raymond DiRossi and Patrick Darrow.

Antoinette Maddox (D), the council’s only woman and African American member, spoke several times and expressed her concern for the extreme cuts made to the streetcar project.
Maddox suggested other options, such as sunsetting all new projects or making cuts to the lower ranked Tier-2 projects. These were shot down by the ODOT staff members.

It was evident to those in attendance that the real detractors to the streetcar project were not the TRAC members who had been working together in 2010, but the newly appointed “asphalt sheriff” Jerry Wray and his staff members, Jennifer Townley and Ed Kagel. Townley, who did most of the speaking during the meeting, cited the reasons for reallocating the streetcar funding to lower ranking projects “due to fiscal balancing.”

What Townley and her colleagues failed to mention was that the TRAC funding in question is federal money being reallocated through state governments. Pulling the money for the streetcar does not help to solve the budget crisis Governor Kasich is facing, it simply moves it around to much less worthy projects. The other members of the TRAC noticed this right away and voiced their concern.

When pressed for more reasons behind cutting streetcar funding for Cincinnati, Townley later replied, “because there is already a bus system in place in Cincinnati that services the same area, we don’t see why rail is really necessary.” If you would like to inform Ms. Townley as to why Cincinnati needs rail as well as a bus system, please drop her an email at Jennifer.Townley@dot.state.oh.us.

The numerous streetcar supporters in attendance were able to submit written statements, but as it was a working session where the TRAC did not make a vote, only listened to recommendations, no citizens were permitted to speak.

The council is scheduled to hold a private conference call that may or may not be legal on Friday, March 25 to discuss the recommendations further before they develop a final list on April 10 and hold a final vote and public hearing on Tuesday, April 12 in Columbus.

The underlying question still exists – if greater emphasis is going to be placed on political patronage and gubernatorial intimidation, then why does the TRAC even exist?

Operations Manager Jenny Kessler contributed to this article.

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Business Development News Politics Transportation

New provision to Ohio transportation budget represents “unprecedented attack” on Cincinnati Streetcar

In an unprecedented action, Ohio Senate Transportation Committee Chair Tom Patton allowed a provision to be introduced to the latest amendment of the state’s biennial transportation budget that would “prohibit state or federal funds appropriated by the state from being used for the Cincinnati streetcar project.”

The action comes on the heels of recent news that newly elected Governor John Kasich (R) plans to strip the project of approximately $52 million in state appropriated funds. Such an action would go directly against the state’s laws and proceedings for appropriating state and federal transportation dollars, and could be subject to legal action from the City of Cincinnati.

“So if you suddenly don’t like the process established by law that has worked well for 14 years under Democrats and Republicans, you change the process,” said Ken Prendergast, executive director of All Aboard Ohio. “This is like saying we didn’t like who won the Super Bowl, so we’re going to re-write the record books.”

Provision SC-0257-1 was approved out of committee Tuesday evening as part of an omnibus amendment, and will then go to the full Senate and House. The omnibus amendment, according to Prendergast, could then either be accepted as is, or be assigned to a conference committee if the House finds the bill substantially different from the version it passed last week that did not include the anti-streetcar provision.

The unprecedented attack against the Cincinnati Streetcar, the Ohio Department of Transportation’s (ODOT) highest-ranking transportation project pending anywhere in the state, further exemplifies the cavalier attitude of the newly elected governor and Ohio General Assembly.

Prendergast notes that the Cincinnati Streetcar was ranked as the state’s top transportation project based on economic development, cost-effectiveness and environmental impact criteria by the Transportation Review Advisory Council (TRAC), a non-political review board established by state law in 1997. The TRAC, he says, was created, urged in part by then and current ODOT Director Jerry Wray, to remove politics from the state’s transportation project selection process.

Previous actions by the TRAC include unanimous votes in support of the funding appropriations for the $128 million Cincinnati Streetcar project.

“These are not state funds, but state-administered transportation funds. If they don’t go to the streetcar, they will go to a lower-ranking road project,” Prendergast emphasized. “If state officials really want to save taxpayers’ money, they should cut from the bottom-ranked projects, not from the top.”

Prendergast went on to say that in his nearly 30 years of transportation advocacy that he has never seen such a blatant attempt to discriminate against rail projects in such a manner. And he points to a November 2009 vote in Cincinnati that defeated a measure that would have singled out rail projects for public votes by 55 to 45 percent.

“As young Ohioans flee to vibrant cities that offer transportation choices, as Baby Boomers face a future of house arrest without options to cars, and as all Ohioans face immobility from worsening global petroleum constraints, this amendment by the Ohio General Assembly to punish a very specific transportation project is worse than counter-intuitive. It’s downright mean.”