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Cincinnati spreads neighborhood investment in 2013 budget

Last week Cincinnati City Council approved its yearly budget for the coming fiscal year. The approved budget lays out several city priorities for funding redevelopment efforts in many of the city’s 52 neighborhoods.

“This budget prioritizes our neighborhoods and will improve our economic competitiveness, make the city safer and healthier, protect our citizens who are most in need, and support our world class parks and arts,” Cincinnati Vice Mayor Roxanne Qualls (C) stated in a prepared release.

City officials say the increased funding will go towards two programs that are designed to maximize impacts on neighborhoods throughout the city.


Cincinnati’s new budget directs funding towards the city’s 52 neighborhoods and invests in walkable neighborhood districts like Calhoun/McMillan in Clifton Heights (above). Photograph by Randy Simes for UrbanCincy.

The first program creates a new fund called Focus 52, which will create a pool of $54 million designed to focus on neighborhood projects by utilizing strategies developed from the city’s successes in the urban core.

“This budget will take the lessons we’ve learned from our success in downtown and Over-the-Rhine redevelopment and give our neighborhoods the support to take that momentum into their communities,” Qualls continued.

The second program endorses 13 neighborhood enhancement projects in neighborhoods such as Avondale, Walnut Hills, Mt. Adams and Price Hill. The annual funding for these projects comes from the Neighborhood Business District Improvement Program (NBDIP), which was created in partnership between the City’s Economic Development Division and the Cincinnati Neighborhood Business Districts United.

“Thriving neighborhood business districts will not only provide a high quality of life for current residents – they’re also key to attracting new residents,” said Odis Jones, Cincinnati’s Economic Development Director. “The NBDIP process reaffirms our commitment to strategically investing in neighborhoods to grow the city and the local economy.”

This commitment to city neighborhoods was recently outlined in the city’s recently adopted comprehensive plan, Plan Cincinnati. Several of the goals outlined in the new plan focus heavily on the continued development of the city’s traditional walkable neighborhood centers. The plan outlines over 40 different centers outside of downtown and calls for the assessment of neighborhood needs and the rehabilitation of neighborhood centers by utilizing tools such as the city’s new form-based code.

Working to begin the implementation of this new plan Vice Mayor Qualls has directed staff to identify sources of capital funding to begin accomplishing some of the plans goals.

“Plan Cincinnati includes strategies that for the first time put the focus on economic development in the city’s neighborhoods,” Qualls stated. “This budget will ensure that spending supports those strategies and translates into results in our neighborhoods.”

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Report: retailers ‘vastly overestimate’ the role of free parking

Report: retailers ‘vastly overestimate’ the role of free parking.

We hear time and time again that urban retail centers need free and plentiful parking, and without it the customers will not come. New research, however, shows that the actual evidence for such claims is scant at best, and that retailers “vastly overestimate” the role free parking plays in their success. More from The Atlantic:

The review was conducted earlier this year by the cross-party policy group London Councils. The group performed a thorough meta-analysis of the existing academic and public agency research on the role of parking in urban commerce. It also sent parking questionnaires to all 33 London boroughs (comprising the city center, as well as inner and outer areas) and conducted market research with shoppers at three commercial centers in the outer regions. The findings can be reduced down to four main reasons retailers don’t need free parking to thrive.

1) Free, plentiful parking often hurts more than it helps, 2) shopkeepers overestimate how many customers arrive by car, 3) they also overestimate how much car customers spend, and 4) a mix of retailers is more important than parking supply.

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Development News Politics

Report: Cincinnati’s five-year outlook for building demolitions may approach 8,000

Home demolition photograph provided by Price Hill Will.

In September, city officials stood in Price Hill alongside state officials to announce plans to demolish up to 700 vacant and blighted buildings in Cincinnati. The funding for the ongoing effort comes from a state-wide program called Move Ohio Forward, which gives demolition funding to cities from money the state won in a settlement with large banks last year over the home foreclosure process and lack of property upkeep by the banks.

City officials estimate that there are currently 1,300 vacant and blighted properties awaiting demolition. The $5.84 million grant, when matched with $5.34 million from the Hamilton County Land Reutilization Corporation and $3.49 million from the City, will provide enough funding to cover just over half of the total amount of demolitions mandated its own ordinances. The final amount of demolitions, officials say, will vary from neighborhood to neighborhood.

“The Moving Ohio Forward Grant Program provides unprecedented blight abatement opportunity for the City to clear dangerous, obsolete buildings from neighborhoods, make way for redevelopment, and eventually raise property values,” Edward Cunningham, Property Maintenance & Code Enforcement Division Manager, told UrbanCincy.

In an effort to further control what happens with the cleared sites, the City of Cincinnati will work with Hamilton County’s new Land Reutilization Program in order to acquire tax delinquent properties. Once the buildings are demolished, the City will determine if the land can be used as parks, community gardens or rehabilitated into new housing. So far, however, only enough funding for lot restoration on 200 parcels has been identified.

In cases where the lots are private properties, and are not able to be acquired, it will be up to the property owners of the vacant lots to decide the future of their property. According to Cunningham, property owners will be allowed to maintain the lots, create parks, parking or new infill construction.

More Comprehensive Plan for Demolitions Needed
Property demolition has been used by many cities including Cincinnati as a method of addressing problem vacant buildings that have been condemned because they are hazards to human health and unsafe to occupy. While the debate on the impacts of foreclosure and vacant property is far from over, some of these buildings are “too far gone” in the eyes of building inspectors that they legitimately need to come down. And according to Cunningham, the buildings being demolished under this program are buildings that are beyond repair.

Once the demolitions are completed, one-by-one, it will create more land between occupied houses thus negatively impacting the completeness of the neighborhood’s form. Without a strategic plan, vacant and unmaintained lots could end up degrading neighborhoods in the same manner as blighted homes; however, vacant lots tend to be easier to maintain and do not pose as much of a risk as a standing structure.

Furthermore, demolitions made through this program on private land will place the cost burden on the property. Should the property owner not pay the assessment for the work, then the property could be foreclosed by Hamilton County, which would then open the land up to redevelopment. This process, however, does take a considerable amount of time and offers no guarantee of redevelopment.

Projected Housing Units in Five Year Demolition Pool by City for Ohio’s “Big Eight” Cities. Source U.S. Census Bureau.

The challenge of increasing amounts of abandoned and blighted housing is not symptomatic of Cincinnati alone, as many older industrial cities are facing the similar problems. A recent report from the Brookings Institute found that Cincinnati might have close to 8,000 buildings eligible for demolition in the next five years. The report also stated that while the demolitions have the potential to stabilize neighborhoods, excessive regulations and costs prevent cities from demolishing the amount of housing that should be demolished on an annual basis.

To overcome these hurdles the report makes a series of recommendations for cities to devise their own strategic demolitions plan.

“Planners, urban designers, and residents must together evaluate how demolishing a particular building will affect the texture of its block or area,” the Brookings Institute stated in Laying the Groundwork for Change: Demolition, urban strategy, and policy reform (2012).

Cities such as Cincinnati need to have a level of transparency in place that allows for neighborhood input on the reuse of the newly created vacant lots. It is not merely enough to encourage neighborhoods to help identify future uses for vacant lots as the city is doing now, it should be required.

As previously profiled on UrbanCincy, Cincinnati’s population decline is systemic and although vacant building demolition is more a testament to the large supply of housing versus demand, absent a strategic demolitions plan, the city should be mindful that stabilizing neighborhoods relies heavily on preserving existing housing or building new housing capacity and offering incentives or neighborhood upgrades that would attract new residents.

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Business Development News Politics

Cincinnati aims to further incentivize green building

The City of Cincinnati will announce proposed amendments to its tax abatement program for buildings built in adherence to Leadership in Energy and Environmental Design (LEED) standards. Sponsors of the changes say that the amendments will further incentivize developers to reach for even higher LEED certifications.

“I think this change by the City will convince people to invest a little more upfront to get to a higher LEED level,” Marc Hueber, president of John Hueber Homes, which has built 22 LEED-certified homes in Cincinnati, stated in a prepared release.


Mayor Mark Mallory (D) makes a statement at the ribbon cutting for Over-the-Rhine’s first LEED certified residential project in 2009. Photograph by Randy Simes for UrbanCincy.

First approved in 2009, Cincinnati’s incentives offer a 15-year, 100% tax abatement valued up to $562,792 on new residential construction; and a ten-year tax abatement on improvements up to a maximum of $562,792 market value, and are considered to be among the most generous in the United States.

Once of the constant criticisms, however, of LEED incentives is that builders go after low-hanging fruit and end up more often than not developing properties at lower LEED levels. Cincinnati’s present incentives do work to combat that by removing the value limit for new and rehabilitated residential structures that achieve LEED Platinum certification.

“My family invested in building a LEED Gold home in Cincinnati in 2011, so I’m aware of how tweaking our LEED program will benefit consumers and our entire community,” said city council member Laure Quinlivan (D), who sponsored the changes.

Community leaders will gather with members of the development community tomorrow in Northside at 10:30am to announce the proposed changes, and city officials will be on-hand to answer any questions about the amendments to residential and commercial abatements.

Following the announcement, council member Quinlivan says that she intends to bring up the amendments in City Council’s Strategic Growth Committee at noon, and act to implement the changes at that time.

“The City of Cincinnati’s LEED tax abatement is an innovative model—and currently unparalleled in scope—to support energy and resource efficiency in homes and buildings,” says Doug Widener, director of community advancement for the United States Green Building Council (USGBC). “The program serves as a model for other cities and the proposed changes ensure that it remains at the forefront of such municipal efforts nationally while continuing to drive conservation and innovation locally.”

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Financial incentives not paying dividends for state, local governments

Financial incentives not paying dividends for state, local governments.

State and local governments are paying huge prices to companies as they desperately struggle to attract and retain jobs in their communities. New analysis, however, suggests that those incentives may not be paying dividends, and shows that the payouts may actually be more damaging than helpful long-term. In a region like Cincinnati, where its downtown traverses two states, three counties and four to five cities, the problem of wayward incentives is even more apparent. More from the New York Times:

A portrait arises of mayors and governors who are desperate to create jobs, outmatched by multinational corporations and short on tools to fact-check what companies tell them. Many of the officials said they feared that companies would move jobs overseas if they did not get subsidies in the United States. Over the years, corporations have increasingly exploited that fear, creating a high-stakes bazaar where they pit local officials against one another to get the most lucrative packages. States compete with other states, cities compete with surrounding suburbs, and even small towns have entered the race with the goal of defeating their neighbors.

Nationwide, billions of dollars in incentives are being awarded as state governments face steep deficits. Last year alone, states cut public services and raised taxes by a collective $156 billion, according to the Center on Budget and Policy Priorities, a liberal-leaning advocacy group. Incentives come in many forms: cash grants and loans; sales tax breaks; income tax credits and exemptions; free services; and property tax abatements. The income tax breaks add up to $18 billion and sales tax relief around $52 billion of the overall $80 billion in incentives.