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Business Development News

Success of Hickory Place Townhomes Accentuates Avondale’s Turnaround

A long-held vision for bringing new market rate housing to Avondale is finally being realized; and its early success has surprised many. With most of the initial eight Hickory Place Townhomes already sold, developers say they are ready to invest in a second phase.

“We knew the townhomes in phase one would sell quickly, but sales outpaced our expectations,” said Beth Robinson, president and CEO of the Uptown Consortium.

Robinson says that the first five homes were sold in just 16 days, which is well ahead of the 51-day average for homes on the market in the Cincinnati area. Those first five homes, she says, also had listing prices above $175,000.

When community leaders and development officials with the Uptown Consortium broke ground on eight townhomes in early 2014, many were skeptical about whether they homes would sell.

The skepticism was easy to understand.

The site is located in the middle of a redevelopment area that has yet to be fully realized, is situated in a neighborhood that is often defined by crime and poverty, and is also located near many foreclosed or abandoned homes. But knowing the challenges of the site and project only offers a partial understanding.

The site is located just off of Burnet Avenue, which has seen tens of millions in new investment over the past decade. These investments have created new businesses and jobs, while also preserving some long-time neighborhood establishments and historic assets. Meanwhile, the nearby Cincinnati Children’s Hospital Medical Center has continued to add hundreds of high-paying medical and research jobs to its growing campus, and the nearby playground and ball field was recently freshened up thanks to an investment from the Reds Community Fund.

These new investments, combined with changing demographics more interested in urban living and working options, have set the table for a new path forward for the city’s seventh most populated neighborhood.

“We are thrilled that the market has responded so favorably to the Hickory Place Townhomes,” said Ozie Davis, executive director at Avondale Comprehensive Development Corporation. “The success of this project proves our strong belief that Avondale is the next hot residential market.”

Similar to what has been completed thus far, the $5 million second phase will include eight townhomes with approximately 1,400 square feet of living space, and including two to three bedrooms. In order to maximize the use of the land, developers are only building one-car garages for each home, but they will come with the option of an additional on-street parking space along Northern Avenue.

Listing agents with Coldwell Banker’s Metro Link office say that the prices for these homes will start at $225,000.

Developing homes in this price range within Avondale is intentional. In addition to being the largest black community in the city, Avondale is also one of the city’s poorest. This has led to numerous problems over the years, including schooling options, lack of healthy food options, crime and abandonment.

While neighborhood leaders have shown a strong commitment to bolstering affordable housing options, and improving existing conditions of the neighborhood for longstanding residents, the diversification of income levels and housing options is seen as a positive.

If recent success stories, such as the $40 million Avondale Town Center development on Reading Road, and the massive capital investment to improve low-income housing options, are any indication, then the future of the neighborhood looks as bright and as hopeful as the vision Davis has for it.

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Development News

Neighborhoods Committee Supports Additional Dense, Walkable Development in Avondale

Avondale’s desire to capitalize on the upcoming $106 million MLK Interchange with more dense, walkable development took a big step forward on Monday with the approval of the rezoning of several properties by City Council’s Neighborhoods Committee.

If approved by the full City Council on Wednesday, the move would rezone approximately 16.76 acres along Reading Road from commercial community-auto to commercial community-pedestrian.

The properties were recommended for the creation of “a more structured street edge” in the September 2014 MLK/Reading Road Corridor Study, and were chosen by the Avondale Community Council, Avondale Comprehensive Development Corporation, and Uptown Consortium.

“We really looked at the areas that they felt maybe were at the most risk for auto-oriented development,” said supervising city planner, Katherine Keough-Jurs. “Obviously they want to make this the gateway to their community, and they felt that these were the areas they really wanted to focus on.”

Under commercial community-pedestrian (CC-P) zoning, new construction must be built to the front lot line. Existing buildings can remain as they are, unless altered.

Uptown Consortium President and CEO Beth Robinson has stated that she expects the construction of at least 3 million square feet of real estate within five years of the interchange’s completion, which is scheduled for November 2016.

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Development News

Uptown Leaders Hoping $2.4M Northern Townhomes Project Accelerates Avondale’s Rebirth

Earlier this month community leaders and City officials gathered in Avondale to celebrate the groundbreaking for eight new market-rate townhomes in the long beleaguered Uptown neighborhood.

The Northern Townhomes project, named after the street on which it is located, is just the latest evidence of a startling transformation that has taken place along the Burnet Avenue corridor over recent years, which has included the construction new office mid-rises, street-level retail and renovation of historic buildings to accommodate new residences.

Much of this transformation has been spurred by the continued growth of Cincinnati Children’s Hospital Medical Center, which has added thousands of jobs since 2000. But that jobs growth, however, has not yet translated into an improved housing market in the impoverished neighborhood. Community leaders are hoping that Northern Townhomes will be the first of many more projects that will work toward improving just that.

“Any community developer knows that the key to smart growth is home ownership,” stated Ozie Davis, Executive Director at Avondale Comprehensive Development Corporation, in a prepared release.

Avondale currently has one of the lowest home ownership rates in the city at just 33%. According to the U.S. Census Bureau, the City of Cincinnati and State of Ohio, respectively, have home ownership rates of 40.5% and 68%.

The realization of this development has taken years, following a community-developed master plan for the area years ago. Correspondingly, the funding for the $2.4 million project also came from a diverse coalition of neighborhood stakeholders including the University of Cincinnati, UC Health, Cincinnati Children’s Hospital Medical Center, Cincinnati Zoo & Botanical Garden and TriHealth.

“The potential for the strong neighborhood revitalization like ours comes from good visioning, smart planning and patience, and this Northern Townhomes project proves that Avondale, Uptown Consortium and the Uptown institutional members have all three,” Davis emphasized.

Project officials say that each of the eight townhomes is approximately 1,400 square feet. Six are two-bedroom residences, while the remaining two have three bedrooms. Additionally, each home has a one-car garage and what the developers are calling tandem on-street parking.

As of now, the expected price point for each townhome is starting at $175,000, and may qualify for a 15-year LEED tax abatement should the developers successfully achieve LEED for Homes Silver certification.

If all goes according to plan, project construction is expected to be completed by fall 2015. After that project officials say that there is room for a second phase of another eight townhomes. The corner of Northern Avenue and Burnet Avenue, meanwhile, is being reserves for another commercial development.

“Avondale is key to the spirit of Uptown Cincinnati, and Avondale community leaders have been a great collaborator and convener as we have work together to revitalize the Burnet Avenue corridor,” concluded Beth Robinson, President and CEO of the Uptown Consortium. “Market rate housing is a fundamental anchor to a diverse residential neighborhood, and we are delighted to have this project be a significant milestone in the Burnet Avenue revitalization.”

Additional residential and mixed-use components remain to be realized as part of the Burnet Avenue corridor master plan, and no timeline has been identified for those elements as of yet.

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Business Development News

Uptown Leaders Aiming to Help Small Businesses with $500,000 Development Fund

Leaders in Uptown are looking for a way to further help and encourage small businesses to set up shop in region’s second largest employment center. The hope is that a new revolving loan fund will help make the business climate better for those small businesses who often have trouble with upfront capital.

Uptown Consortium President and CEO, Beth Robinson says that the decision to start such a fund came as a result of feedback received during its business retention and small business visits in 2012. Those involved expressed a frustration with being able to secure necessary upfront capital. So to help solve that, the Uptown Consortium funded a new Development Opportunity Fund with $500,000 of its own money last year.

“The whole purpose of these things is to create a supportive business environment,” Robinson explained. “We have coaching services, means of communicating and now this fund. We really want to support job creation. That’s what this is about.”

McMillan Street in Clifton Heights
Uptown neighborhoods have seen a surge of private investment in recent years, but some small businesses are struggling to get involved. Photograph by Randy Simes for UrbanCincy.

Robinson says that the fund is intended to support capital costs of new or expanding small and mid-sized businesses in the Uptown area, but that since it is funded with their own money there is a great deal of flexibility with how the money can be used.

“We’re open to whatever grows jobs in Uptown, and whatever stabilizes and moves the business districts forward,” noted Robinson.

These types of funds are typically administered by government agencies, not development corporations like the Uptown Consortium. This, in and of itself, gives the fund the much greater flexibility leaders are touting and on loan requirements.

The first and only business to take advantage of the fund so far is Stag’s Barbershop, which used $10,000 to complete a 1,400-square-foot expansion in Avondale. As a result, the neighborhood institution now offers, for the first time since its opening in the 1950s, a full beauty salon with hair, nail and feet treatments.

What that means is that applicants can apply for loans of the $490,000 in remaining funds. Should the program demonstrate viability and demand, Robinson says that it could be extended and potentially expanded.

“Since we are looking at it as a revolving loan fund, if the demand is there and it is having our desired intention, then there might be the possibility of expanding it,” Robinson told UrbanCincy.

Officials say that there are several businesses in the pipeline for loans right now, but that they are taking things on a first-come, first-serve basis. Ideally, they say, the new or expanding businesses will be located within one of the five neighborhood business districts in the area: Clifton’s Ludlow Avenue, Avondale’s Burnett Avenue, Corryville’s Short Vine, Calhoun/McMillan Streets in CUF, and Auburn Avenue in Mt. Auburn.

Those interested in learning more about the Uptown Consortium’s small business outreach programs, including this Development Opportunity Fund, are encouraged to contact Janelle Lee at jlee@uptownconsortium.org.