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Business Development News

Will Saks Fifth Avenue Remain in Downtown Cincinnati Following Collapse of its Kenwood Move?

Kenwood Collection [Provided]

News spread quickly yesterday that the deal for Saks Fifth Avenue to relocate from downtown Cincinnati to Sycamore Township at the new $200 million Kenwood Collection had fallen through.

The announcement drew immediate speculation about what happened and where the high-end department store might locate instead, if anywhere at all. Since representatives at Saks Fifth Avenue have been mum during the whole process, little information is known about what will happen in 2016 when they had been expected to relocate to Kenwood.

Here’s what we do know.

The current Saks Fifth Avenue store downtown opened in 1983 and was renovated in 1996 and again in 2003 thanks to $8.7 million in city funds. The 2003 renovation also included a stipulation that Saks extend the lease for their downtown Cincinnati store for 15 years (2018), and not open another store within 30 miles for at least seven years (2010). For what it’s worth, Kenwood Collection is located approximately 11 miles from Fountain Square.

The terms of that 2003 agreement, however, are a bit murky. According to the Business Courier,

Part of the agreement with the city says Saks can be released if “Saks sells the Saks store on the property to an entity which acquires the majority of the Saks stores then located in the states of Ohio, Michigan, Illinois, and Pennsylvania.” Toronto’s Hudson’s Bay Co. acquired Saks in a deal that closed at the beginning of November.

The clause basically appears to give Saks an out on their lease agreement that would otherwise keep them at 101 W. Fifth Street until 2018. While the existing store is 72,640 square feet, Saks had reportedly signed a letter of intent with Kenwood Collection for a slightly larger 80,000 square-foot space.

The rumors following yesterday’s announcement largely discussed one of three potential scenarios: 1) Saks closes its only store in the Cincinnati region as it has done in other mid-sized markets; 2) Saks relocates into the retail space at the $140 million dunnhumby Centre, which, interestingly enough, was to become the home of a Maison Blanche in 1998 and then eyed for a Nordstrom in 2000; or 3) Saks relocates into the retail space at a restructured unnamed development at Fourth/Race.

The first scenario is something that would be very difficult to predict, but the second and third scenarios present interesting opportunities and challenges.

The biggest challenge with Saks moving across the street into the dunnhumby Centre is that it only has 30,000 square feet of retail space. Since the building is already far along in construction, it seems unlikely that the development team would be able to modify it in a manner to provide an additional 50,000 square feet of space for Saks.

The unnamed development at Fourth/Race had a grocery store lined up to occupy its even smaller 20,000 square feet of retail space, but that development agreement has since been substantially restructured and is currently being reworked. This leaves open the possibility that Flaherty & Collins and the Cincinnati Center City Development Corporation (3CDC) could adjust the design as to accommodate Saks.

In both of these cases it would allow for the redevelopment of Saks’ existing structure at the southwest corner of Fifth and Race Streets. This would prove to be important in order to clear the way for developers to build a new residential high-rise in its place. Both of these options would also keep Saks within a block of Macy’s 180,000 square-foot downtown store, and along the stretch of Race Street that city officials hope to turn into a shopping corridor.

The combined demolitions of the aging Pogue’s Garage and existing Saks Fifth Avenue store would also allow for the removal of two to three skywalks/bridges over Race Street.

Of course, there is one more option. Saks could simply stay where they are and live out their lease through 2018, or even renew it beyond that.

CORRECTION: In the original story it was incorrectly stated that the existing Saks Fifth Avenue store in downtown Cincinnati is 185,000 square feet. The store is actually 72,640 square feet.

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Up To Speed

Until the region’s sewer problem is fixed, you might want to hold off on flushing your toilet

Until the region’s sewer problem is fixed, you might want to hold off on flushing your toilet.

By now just about everyone in the region knows we have a combined sewer overflow problem. If you think it sounds pretty technical and boring, you’re right. But the reality is that it’s pretty gross. To put it in simple terms, next time it rains you might want to avoid flushing the toilet. More from Next City:

Every time it rains, stormwater runoff from roofs, parking lots and driveways washes pollutants into the nation’s streams, rivers and lakes. At the same time, in many cities with antiquated infrastructure, combined sewer overflow systems send untreated sewage into waterways. The resulting contamination often entails violations of the federal Clean Water Act.

…

“Who ever thinks about the plumbing code? On the other hand, there is a simplicity to the concepts. When it’s raining, when you flush the toilet, what you flush goes straight to the river. If you can wait until it stops raining, you should do that.”

 

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News Transportation

PHOTOS: Cincy Red Bike Quickly Taking Shape Throughout City Center

Last week’s press conference on Fountain Square revealed a number of new details regarding Cincinnati’s new bike share system. In addition to unveiling the design of the bikes, stations and membership cards, officials also finally shared the system’s name – Cincy Red Bike.

Jason Barron, executive director of Cincy Red Bike, said that dozens of volunteers quickly assembled 260 of the bikes that will populate the initial 35-station system. Barron further clarified a point discussed in our analysis from just before the conference, and stated that each station will have between 13 and 19 docks, thus giving the system an initial docking capacity of 520 bikes. This would easily exceed the ideal 50% space contingency.

The press was also informed that the station at Union Terminal, which would have been a far off island from the rest of the initial system, has since been scratched for that very reason.

“Research indicated that having an island station like that is difficult for system balancing and that it typically does not get much use,” Barron told UrbanCincy. “An exception may be a park or someplace where people check out the bike ride it around the park and them check it back in.”

In terms of handling the balancing for such a large initial system, Cincy Red Bike will be utilizing a small van at first, but may add a trailer or a bike trailer to the balancing fleet at a later date depending on the system’s needs.

The process of getting a system like this operational so quickly comes with some challenges. While installing two to three new stations a day, officials are also still trying to work out the final membership and daily rates for users. Barron also says that the system map has changed some since initial releases, and that a new map will be released soon.

Those who want to stay up-to-date on the rapidly evolving system can do so now by following Cincy Red Bike on Facebook and on Twitter @CincyRedBike.

EDITORIAL NOTE: All 24 photos were taken by Breanna Tracy for UrbanCincy on August 16, 2014.

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Up To Speed

Are ‘poor doors’ the best affordable housing practice in America?

Are ‘poor doors’ the best affordable housing practice in America?.

Affordable housing is always a hot-button issue. In cities like Cincinnati it typically revolves around some communities believing that they have too much affordable housing, with others also claiming that there is not enough affordable housing out there to meet the need. What it ultimately boils down to is a location and distribution issue.

In the case of larger cities where housing prices are incredibly higher, a different discussion takes place. In New York City, for example, providing affordable housing units can buy a developer increased density rights, but some have taken to creating separate entrances for the lower income residents. While such practices have been widely condemned, is it an example of the best practice currently in place in America? More from Next City:

Of course, it is disgusting to even have to express that every resident should enter through a main entrance, an entrance of dignity. The idea of residents entering some type of back alley or service door to their home is unacceptable. In making this the focus, we are being distracted into an attention-grabbing and very visual battle — we can picture the different door. But we are losing sight of the context I have outlined here. As far as inclusion goes, for better or for worse, the poor door is about as good as the U.S. gets precisely because many of the people expressing outrage over the poor door would not support any of the set aside schemes outlined above at the ballot box.

 

Categories
Business News

Apple Street Market Cooperative Hoping to Fill One of Cincinnati’s Food Deserts

For the first time there are no grocery stores in College Hill, Northside or Clifton. At one time each neighborhood had their own store including a Kroger in College Hill, IGA in Clifton and Save-A-Lot in Northside.

When Save-A-Lot closed its Northside store in November 2013, however, it got the attention of the Cincinnati Union Coop Initiative (CUCI) and sparked an effort to open a community-owned grocery store in its place called Apple Street Market.

There is only one full-service grocery store within a three-mile driving distance from Northside – a Kroger on Mitchel Avenue. That Kroger, however, is not served by Metro’s #17 bus route, thus leaving carless households with only Metro’s #16 route as their option. The problem is that the #16 bus route does not run on Sundays and only runs every half-hour after 4pm.

“This makes a grocery trip an arduous and time consuming journey if you do not have a car,” said Casey Whitten-Amadon, legal counsel for Apple Street Market. “The trip can take more than three hours, in all types of inclement weather.”

It was the closing of the Save-A-Lot, however, that really sparked the effort to open a new community-owned grocery store in Northside.

“I knew that CUCI had been starting worker owned ventures. So, I approached them about a grocery store within the first week of Save-A-Lot closing,” said Heather Sturgill, a Northside resident and community advocate.

CUCI did a lot of searching to find the best fit for the new store. They were not specifically tied to Northside, but after surveying about four different neighborhoods, along with conducting market studies and market analysis for grocery stores, they found Northside to be the perfect fit. One of the key reasons for this, they say, is that Northside had an existing space that was in great shape and needed little to no demolition or remodeling.

This was important, and stands in contrast to the ongoing difficulties Clifton is having in trying to open their own cooperative grocery store on Ludlow Avenue, because they did not have the capital nor did they have a large investor that would finance the project.

This is particularly complicated by the financial model of union co-op businesses, where a large investor cannot have a larger share of the profit or a larger share of the governance rights. Rather, each person or entity that invests in the store gets an equal share and one vote regardless of the investment.

In the case of Apple Street Market, CUCI is accepting $100 or $10 from lower-income investors.

While raising the capital for a union coop startup can prove to be extremely difficult, Northside’s effort has been aided by a large number of enthusiastic volunteers that also set the community apart from others in the city.

While this collection of neighborhoods represents a relatively new and small food desert in Cincinnati, it comes at a time when many policy makers are looking to fix such problems.

“This is another reason that we decided to go ahead with the project in Northside,” said Whitten-Amadon. “The main benefit to community ownership is the opening of a unique store that is owned by the workers and the community.”

He also says that success and profitability will be shared by the community, and that being able to make decisions collectively will help create a sense of pride in the neighborhood store.

While community leaders are excited about the potential benefits for the community investors and workers, they are also looking forward to the local specialty items that will be stocked at Apple Street Market. Organizers say that the plan is to provide a larger than average organic and produce section, and sourcing much of it from Our Harvest – another area worker-owned business started by CUCI.

But Sturgill says that they will also be including up-and-coming brands to give the store an affordability that most health food cooperatives do not have.

“We tried to get fresh foods in some of the other corner type shops but the owners didn’t seem interested enough to follow through,” Sturgill told UrbanCincy. “This is intended to be the first in a chain of worker/community owned groceries.

A future additional location for this type of store, she says, could be in College Hill at the new development planned for North Bend Road and Hamilton Avenue.

An official opening date has not yet been set for Apple Street Market, but Sturgill says the goal is to have it completed by spring 2015. Those who are interested in providing funding and making an investment in the store can do so by buying a share online.