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President Obama Shifts Attention Toward Economy, Cities in 2013 State of the Union Address

President Barack Obama (D) delivered the annual State of the Union address last evening. The hour-long speech covered a wide range of topics including gun control, military policy, immigration reform, voting rights, domestic economic programs, education reform, and energy policy.

One of the most-discussed topics of the evening was when the President announced his aspirations to see the national minimum wage raised to $9 an hour. The current minimum wage of $7.25 an hour results in an annual income of $14,500 – a number the President says keeps families with two minimum wage earners below the poverty line.

In 2006, Ohioans voted to raise the state’s minimum wage from $5.15 an hour to $6.85 an hour, with an annual cost-of-living escalator.

“This single step would raise the incomes of millions of working families,” President Obama stated. “It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets.”

Brent Spence Bridge Alternative 1

Brent Spence Bridge Alternative 2
The President called for a “Fix-It-First” program during his State of the Union address, but will it make a difference for Cincinnati’s Brent Spence Bridge Rehabilitation/Replacement project? Brent Spence Bridge replacement Alternative 1 (TOP) and Alternative 2 (BOTTOM) renderings provided.

Since the last time Congress voted to increase the federal minimum wage, which is effective for all states that have a minimum wage lower than the federal level, 19 different states have voted to raise their respective rates. The President’s $9 an hour proposal with an annual cost-of-living escalator would place it above every state in the union with the exception of Washington which pays its lowest earning workers $9.19 an hour.

In addition to raising the pay for the nation’s lowest earners, the President also pushed for new programs meant to spur job growth in a new economy. He called for the reform of high school education to more effectively train graduates to be able to fill high-tech jobs.

He also asked Congress to create a network of 15 manufacturing innovation hubs, modeled after the National Additive Manufacturing Innovation Institute (NAMII) established in Youngstown, OH in August 2012. Those cities selected, the President says, would work to partner businesses with the Department of Defense and Energy.

The President stated that the goal is to transform “regions left behind by globalization into global centers of high-tech jobs” in an effort to jumpstart the next revolution in manufacturing.

The advanced manufacturing policy proposal is one that should certainly catch the attention of local policy leaders as they work to transform Cincinnati’s Mill Creek Valley into a productive economic engine for the 21st century, as laid out in the Growth & Opportunities Cincinnati Plan published in 2008.

Another point of emphasis during the President’s first State of the Union address of his second term revolved around repairing the nation’s existing built environment.

To that end, he discussed retrofitting buildings to become more energy efficient, and announced a goal to cut energy wasted by homes and businesses in half over the next 20 years. President Obama continued by calling for a program that would prioritize infrastructure spending on existing assets in need of repair, like Ohio and Kentucky’s combined 4,054 deficient bridges.

“I propose a ‘Fix-It-First’ program to put people to work as soon as possible on our most urgent repairs,” said President Obama. “And to make sure taxpayers don’t shoulder the whole burden, I’m also proposing a Partnership to Rebuild America that attracts private capital to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children.”

Perhaps the biggest bi-partisan applause of the night went to the President’s condemnation of gun violence and call for action to prevent further atrocities like those at Sandy Hook Elementary School, and those that occur on the streets of America’s cities every day.

“Our actions will not prevent every senseless act of violence in this country. Indeed, no laws, no initiatives, no administrative acts will perfectly solve all the challenges I’ve outlined tonight,” President Obama clarified. “But we were never sent here to be perfect. We were sent here to make what difference we can, to secure this nation, expand opportunity, and uphold our ideals through the hard, often frustrating, but absolutely necessary work of self-government.”

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Business Development News Politics

Inner-City Neighborhoods Center of Population, Economic Power in Cincinnati Region

The Cincinnati region has been one of the nation’s best economic performers over the past several years, and that has resulted in a 6.4% unemployment rate that is more than a point better the national average.

According to the U.S. Census, more than 968,000 jobs are scattered all over the region, but it is the City of Cincinnati that stands out as the dominant force for the 2.1 million person region.

As the numbers in the City of Cincinnati’s 2013/2014 Biennial Budget Report show, the financial standing of the central business district is critically important to the overall financial health of the entire city and county. According to the report, income taxes brought in $234 million last year – nearly 71% of the City’s total revenue in 2012.

Cincinnati Employment Density Cincinnati Employment/Population Share
While outlying suburban communities have seen an influx of jobs over the past 30 years, Downtown and Uptown remain the region’s preeminent job centers. Employment Density Map and Employment/Population Share Map by Nate Wessel for UrbanCincy.

In the Cincinnati Metropolitan Statistical Area (MSA), center city neighborhoods account for the highest concentration of jobs, with more than 22,000 jobs per square mile in Downtown’s 45202 zip code, and anywhere from 3,000 to 9,000 jobs per square mile in Uptown neighborhoods.

“Downtown and Uptown are the City’s largest employment centers and therefore they are very important to the City’s financial health,” said Lea Ericksen, Cincinnati’s Budget Director. “We want all our neighborhoods to improve tax earnings by increasing residents, jobs and overall economic vitality, but we are focused on the six GO Cincinnati strategy areas for redevelopment.”

Cincinnati’s 2.1% income tax largely goes to support the General Fund which pays for operating expenses like police officers and fire fighters. Smaller percentages also go to pay for public transit operated by the Southwest Ohio Regional Transit Authority (SORTA) and capital investments in City buildings and infrastructure.

Ericksen projects that while income taxes will remain the same, they will grow in value by approximately 2.6% annually over the next six years.

Income & Property Tax Earnings (2004-2016)
The City of Cincinnati has experienced steady growth in income tax revenues since 2004, but it has struggled to recover from the previous decade’s housing crash. Chart produced by UrbanCincy.

Property taxes are the next largest revenue generator for City Hall – accounting for $23.9 million in 2012. City officials expect this number remain stable over the next four years following an initial $7.8 million annual bump should the current property tax rollback be eliminated and set at 6.1 mils.

Like the clustering of jobs in the city’s urban core, the most heavily populated neighborhoods are also located within the center of the region.

“People are very interested in center cities, and we have an exceptionally attractive center city,” David Ginsburg, President/CEO of Downtown Cincinnati Inc. told UrbanCincy. “The architecture here and the geography that we have being in the valley. We just have a compact, spectacular downtown, and I think we have barely touched the surface of what the market can bear.”

Some of the most valuable residences are located along the central riverfront and eastside neighborhoods, with recent growth in northern communities in Butler and Warren Counties.

Cincinnati Population Density
Several neighborhoods boast densities of 7,000 or more people per square mile, and those neighborhoods are all centrally located. Population Density Map by Nate Wessel for UrbanCincy.

Uptown neighborhoods surrounding the University of Cincinnati and Xavier University, Downtown/Over-the-Rhine, and close-in neighborhoods on the westside and along the Northern Kentucky riverfront are the most densely populated in the region.

“We’ve seen quite a bit of where we rehab a home, the neighbor decides to rehab their home,” Ken Smith, Executive Director of Price Hill Will, said about the development corporation’s Buy-Improve-Sell program which has rehabilitated 52 thus far in 30,000-person neighborhood, on episode 14 of The UrbanCincy Podcast. “People are very impressed with the housing stock in the neighborhood, and they are often quite impressed.”

Not all is well, though, for city leaders as they attempt to recover from the housing crash that took place between 2006 and 2010. Neighborhoods like East and West Price Hill are aggressively working to improve their residential housing stock by getting rid of vacant units even by taking advantage of hundreds of demolitions planned throughout the city.

“We are working with the Hamilton County Land Bank to get these empty lots into hands of those next door, but there are going to be a few houses that I wish we could save, and in better times maybe we would have the money to save it, but in better times they may not have gotten to that point,” explained Price Hill Will’s Matt Strauss, Director of Marketing & Neighborhood Promotion at Price Hill Will. “The goal is not only to bolster owner occupancy, but to increase property values in the neighborhood.”

Listen to episode 14 of The UrbanCincy Podcast with the leaders at Price Hill Will to hear more about the work being done on the westside to recover from the housing crash, and episode 15 with David Ginsburg to get the latest insight on the region’s economic engine. You can stream our podcasts online or subscribe to our bi-weekly podcast on iTunes for free.

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Business Development News

Proposed Clifton Heights Development Would Demolish Historic Christy’s & Lenhardt’s

On Tuesday, developers presented an initial concept to the CUF Neighborhood Association (CUFNA) for a proposed development at the southeast corner of W. Clifton Avenue and W. McMillan Avenue.

The development team of Gilbane and Optimus, is proposing a six-story, mixed-use development that would include 210 student apartments, street-level retail, and a 245-space parking structure. A total project cost has yet to be defined.

Clifton Heights Development_Concept Rendering
A concept rendering for what the proposed development would look like at W. Clifton and W. McMillan Avenues. Image provided.

Developers say that the two-story parking structure would be hidden by the larger apartment portion of the development, and mention that there would enough room for two retailers along both Clifton and McMillan Avenues.

“The building has an urban character that reflects and harmonizes with the new retail and residential complex across the street,” developers explained in a project report obtained by UrbanCincy. “A dramatic reduction of building scale happens as you turn the corner onto Lyon Street. The majority of this elevation is only two stories high and contains residentially scaled punched openings that are at the base of the Clifton elevation.”

Representatives from Gilbane and Optimus also say that the development will have “abundant” bicycle parking in addition to the spaces provided for automobiles.

Clifton Heights Development_Section Elevation
The concept section elevation shows how the proposed development would relate to its surroundings in Clifton Heights. Image provided.

Should everything go according to plan, the development team says that construction would start in May 2014 and open in August 2015.

The more than four-acre site currently has several houses on it along Lyon Street, the Clifton Natural Foods building, the historic mansion that is home to Christy’s & Lendhardt’s Fine German Dining, and a surface parking lot.

According to University of Cincinnati engineering student Ryan Lammi, who attended Tuesday’s meeting, the developer implied that the development could not go forward unless both buildings located along W. McMillan Avenue were demolished.

So even while the development presents a large investment in the growing neighborhood, not everyone was pleased with the initial concepts.

“The council was adamant about saving Christy’s and keeping a local retailer like Clifton Natural Foods, citing other projects that have brought national chains,” Lammi explained. “They were also pretty upset about demolishing the building at the corner because its [sic] the gateway to the last of the old building stock.”

Clifton Heights Development_First Floor Plan
The historically significant mansion that once housed Christian Moerlein’s daughter sits on the northeastern portion of the proposed development. Image provided.

Local historians point to the mansion housing Christy’s as a significant piece to the city’s beer brewing heritage. According to Steve Hampton, executive director of the OTR Brewery District, the mansion was built by Christian Moerlein as a wedding gift for his daughter in 1881.

Posing a potentially significant hurdle for the development would be the mansion’s pending historic designation.

“CUF has sent a request to the Urban Conservator requesting a designation hearing along with a formal designation application,” said Hampton, who went on to clarify that a hearing date has not been determined.

The process of attaining such designation, Hampton claims, would protect the property from demolition, under city law, until a final ruling is made.

The development team’s current schedule calls for initial site due diligence and inspection work to be completed by May of this year, followed by an eight-month period for the necessary project approvals.

As the project moves forward, Lammi says that students and neighborhood residents plan to be very involved, and intend to meet on Saturday, February 9 at 2pm to discuss the proposal at Rohs Street Café. He says that the meeting will be open to anyone interested in attending, and will offer a venue for people to voice their concerns and opinions on the development.

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Business News Opinion

Free parking crusader strikes Over-the-Rhine, channels inner Cool Hand Luke

Slashed meters and broken meter tops liter the normally beautiful Orchard Street in Over-the-Rhine, and many other streets throughout the historic neighborhood.

The epidemic of destroyed or stolen parking meters is plaguing this beautifully dense city neighborhood where on-street parking is an ever-increasing concern for new residents.

Residents began to notice the meters being vandalized in November 2012 when the city initially announced its intentions to lease its parking system to a private entity. The city insists that the vandalism and parking privatization is not connected. However, UrbanCincy’s investigative sleuthing has found that although the meters are not connected to city sabotage, they are instead connected to a lone vigilante who wants nothing more than to park…for free!


Cincinnati has its very own Cool Hand Luke!

“You shouldn’t have to pay to park,” exclaimed the culprit from a shadowy street corner.

The vigilante who goes by the name Free Space Man, agreed to speak to UrbanCincy only after we agreed to pay for his two-hour metered spot on Liberty Street so that he would not harm the meter. The vigilante described his day-to-day activities, meticulously choosing the meters to be vandalized and deciding on the best time of day to strike.

He says he travels the country, setting out to rid the world of working parking meters so he can park his 2007 Range Rover at metered spots for free. He came to Cincinnati when he heard about the parking privatization.

“I didn’t even know you had meters and now the city is selling them off. Parking should be free…why do they even charge? That’s the real crime,” Free Space Man said as he sliced off another parking meter at the corner of Elm and Green Street.

Attempts at trying to inform the vigilante on the revenues parking brings in to the city and how it allows businesses to turnover spots for patrons seemed to fall on deaf ears with this eccentric individual.

The vandal disclosed that his most brazen act of social defiance was in San Francisco, where leaders there attempted to install smart parking meter technology. One day, shortly after the new meters installation, a parking meter head was found at the foot of the mayors’ bed with coins still rolling out from its receptacle.

“That man was a menace to our town,” disclosed Tom Delegado, the mayor of San Francisco City Hall on foursquare. “He’s a terror to parking enforcement everywhere!”

Officials who have dealt with the villain have described him as squirrely and demented, and warn that the only defense measure is to throw copies of Donald Shoup’s 763-page book, The High Cost of Free Parking, at the bandit until he finally flees to another town, hopefully never to return.

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Business News

URBANexchange returns this Wednesday to Moerlein Lager House

After a nearly two-month break, the UrbanCincy team is proud to kick-off the 2013 season of URBANexchange events.

Following a successful pilot run last year, URBANexchange will return this Wednesday for a full year of events at the Moerlein Lager House.

“Dozens of people excited about cities and Cincinnati’s urban core showed up at last year’s events, and we’re really excited about the possibilities for a full year’s worth of URBANexchanges in 2013,” said Randy Simes, Owner & Managing Editor of UrbanCincy.

2013 URBANexchange Events

UrbanCincy will be giving away prizes at each of the events in 2013, with a custom tile of Carew Tower (image) from Rookwood Pottery being given away at February’s URBANexchange courtesy of Downtown Cincinnati Incorporated.

The collection of events in 2013 will take place on the first Wednesday of each month to avoid conflict with weekly bike rides that occur in warmer weather, and when there are no home Reds baseball games. The group will always meet in the northwest corner of the Moerlein Lager House’s biergarten – closest to the ‘Moer to Go’ window and outdoor bike racks.

“We are really excited to continue to offer a monthly event where fellow urbanists can get together, share ideas, and expand their social networks,” stated Simes. “The goal with our URBANexchange events is to not create a platform for one-way presentations, but rather create an opportunity for city supporters in the region to get together and meet one another.”

URBANexchange events are always free and open to the public, and take place from 5:30pm to 8:30pm at the Moerlein Lager House (map) within Cincinnati’s Smale Riverfront Park. Those interested in attending are welcome to come and go anytime during the event, and friends are always encouraged.