Tag: public policy

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Development News

Sewer Improvements Save Money, Reduce Environmental Impact

Changes are afoot for Cincinnati residents — underfoot, that is.

The Metropolitan Sewer District (MSD) recently unveiled sweeping changes to the region’s sewage system. By optimizing the existing infrastructure’s ability to handle wet weather, newly-installed smart technologies will reduce environmental risk, slash rates, and prolong its life.

“Our smart sewer system is anticipated to save tens of millions of dollars in capital investments in projects to control sewer overflows,” said MSD Director Gerald Checco in the press release. “This is our best chance of reducing spending and ultimately costs for our ratepayers.”

Prior to this announcement, MSD’s reputation had been marred by a string of scandals. Investigations into their financial practices exposed several improprieties and a once-in-a-century storm flooded homes across the county with backed-up sewage.

Illustration of a CSO (City of Cincinnati)

Yet, amid the hoopla, the Mill Creek basin was reaping the benefits of a smart sewer system. A centralized “brain” tracked flow rates throughout the system. New sensors and gates diverted excess storm runoff into larger pipes or other areas that weren’t full. “The ability to have a view of our entire system in real time really helps us to respond quicker to things because it raises that awareness,” said Missy Gatterdam, head of MSD’s watershed operations division, in an interview with UrbanCincy.

Outside this basin, MSD’s pipes empty into nearby streams or rivers, a process called a Combined Sewer Overflow (CSO). CSOs are legal, but they can damage the environment. Sewers combine domestic, commercial, and industrial runoff with storm runoff. On dry days, this is not a problem. Toxic wastes migrate to a treatment facility.

On particularly rainy days, however, the pipes can’t handle all of the waste and water and must dump these undesirables into the ecosystem. (Here is a video MSD made to help explain the process.)

Untreated water isn’t just disgusting; it’s also deadly. An Environmental Protection Agency report to Congress in 2001 says bacteria found in untreated waters can cause gastric disorders, typhoid, and even cholera. Thankfully, MSD’s smart system will reduces the 11.5 billion gallons of runoff and waste overflow that wind up in the region’s waterways every year.

Gatterdam remarked that the original plan was to rollout the technology to the Muddy Creek and the Little Miami River basins this year, but budget cuts by the county have halted any expansion.

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Development News

New Development Adds Affordable Housing, Restaurant to Over-the-Rhine

Another development is coming to the Brewery District. The Historic Conservation Board approved a zoning variance that will bring fifty affordable housing units and a restaurant to several vacant buildings along the streetcar line.

Affordable housing in Over-the-Rhine (OTR) has received a lot of press recently. Freeport Row, the newly-christened Source 3 development at Liberty and Elm, was heavily criticized because it lacked any affordable housing. Most recent development has been market-rate or luxury apartments, despite the fact that OTR’s average median income was $14,517 in the 2010 census.

The fears aren’t unfounded; the neighborhood has lost affordable housing. Xavier Community Business Institute determined that OTR and Pendleton have lost 2,300 affordable housing units since 2002. This project — called Abington Flats — will help replenish that stock. Three different companies banded together to create Abington: 3CDC, Model Group, and Cornerstone Corporation Renter Equity. 3CDC is developing the commercial space, while the other two control the residential space. This project is part of a larger effort by the team to develop hundreds of affordable units in OTR.

Abington Flats consists of five buildings, the largest of which is 33 Green Street. Built in 1910, the four-story building features a commercial space on the ground floor with three floors of residential apartments above. Model Group Senior Project Manager Jennifer Walke said that all five buildings need “substantial rehab.” 33 Green Street will be 100 percent ADA accessible. The team is shooting for LEED Silver certification.

In an email to UrbanCincy, 3CDC Communications Manager Joe Rudemiller said that, depending on future tenants’ needs, there will be up to four retail or office space and up to two restaurants or bars.

Finding a restaurant or bar will be key to the project’s long-term financial viability. Tax credits fund a building’s development and construction; they don’t cover operating costs. Rent from below market-rate units might not cover its full cost. Rent paid by commercial tenants offsets this difference.

This is why investors rarely back affordable housing projects. It’s hard to profit. Plus, tenants with less financial security pose a greater risk to the owners. Cornerstone’s shared equity program strives to overcome this trend. Tenants can earn equity through timely rent payments and property maintenance. Build up enough equity and — after five years — it becomes cash. Abington Flats will use their system.

Total costs hover around $17 million — $13.8 million for the residential portion and $3 million for the commercial space. Several subsidies fueled the development, including Federal and State Historic Tax Credits and Low-Income Housing Tax Credits.

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News Transportation

Cincinnati Ranks as Top Bike City

The 2016 biennial list from Bicycling.com shows Cincinnati ranked 36th out of 50 bike-friendly US cities. The ranking is determined by variables such as the number of bicycle facilities, bicycle-friendly businesses, bike-share programs, and the length and safety of infrastructure, amongst others. This year and since 2014, Cincinnati has seen a dramatic increase in bikeability, due to Red Bike and the Central Parkway bike lane, being hailed the 3rd fastest growing biking community in the US. Even with our successes, Cincinnati has fallen from last year’s rank of #35. So, why the fall from #35?

Bicycling.com claims the lack of progress on the City’s Bicycle Transportation Plan, adopted in 2010, coupled with the increasing urban population, with little access to bicycle infrastructure, for the decrease. This year, the first 4.1 miles of the potentially 7.6 mile Wasson Way was purchased just prior to the release of the biennial list. The first phase implementation of the trail, which is scheduled for next year could positively affect the city’s standings in future rankings. However; future on-street connections to the new trail would further boost the city’s access to bicycle infrastructure.

The Central Parkway Protected Bike Lane

This could mean that our rank will increase in coming years. With 100,000 people living within one mile of Wasson Way, the potential for new cyclists and trail-servicing businesses are high and will undoubtedly affect the bike friendliness of the city.

Plans are also underway to secure $21 million in funding to create 42 miles of bike paths, in order to connect Wasson Way, Oasis Trail, Mill Creek Greenway and the Ohio River Trail West. This project is known as Cincinnati Connects and if it passes, will further the city’s bikeability. Additionally, Cincy Red Bike has been an ongoing success; their annual installation of new stations, since its inception in 2014, has added to the momentum of Cincinnati’s bike friendliness.

Although change is afoot, Cincinnati still lacks the complete designation of being ‘bike friendly’ by its residents and outsiders, like those at the top of Bicycling.com’s list. When locals are asked about their view towards biking in Cincinnati, it’s still met by most with negativity: seen as an annoyance, while others are very concerned for their safety while cycling in the city. Cars still dominate the roadways, with some even parking in the bike lane along Central Parkway.

With the new year around the corner, Cincinnati appears to be on a continued path to being a top bike-friendly city however; the following issues are key: residents being made aware of the benefits and safety of cycling; continued implementation of the 2010 Bicycle Master Plan; and policy changes that mirror those cities at the top of the biennial list.

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Development News

New Market Tax Credits Key to City’s Revival

Cincinnati’s development coffers got a little fatter last week, as $125 million in federal tax subsidies flooded into the city. These subsidies, called New Market Tax Credits (NMTCs), incentivize local investors to funnel capital into low-income communities and have essentially bankrolled Over-the-Rhine’s entire revitalization.

For example, Washington Park — perhaps the most emblematic example of OTR’s rebirth — received nearly $14 million in New Market Tax Credits (NMTC) from the Local Initiatives Support Coalition (LISC) to help support its reconstruction. Several ongoing developments have also received some or all of their funding through NMTCs, including the Market Square and Ziegler Park projects.

Ziegler Park Aerial
New Market Tax Credits helped transform parts of Over-the-Rhine like the reconstruction of Ziegler Park (Photo by Travis Estell)

Developers often balk at the prospect of developing low-income communities because they fear their investment will be wasted. NMTC are the federal government’s attempts to allay these concerns. Congress first authorized the subsidies through the Community Renewal Tax Relief Act of 2000. Over the past fifteen years, the bill’s success has earned it bipartisan support. According to the program’s 2016 report, the tax credits have created 750,000 jobs and invested over $75 billion to businesses and revitalization projects in communities with high rates of poverty and unemployment.

Less than 25 percent of the applications submitted each year are awarded, but three major Cincinnati developers beat the odds this year: Cincinnati Development Fund ($65 million), Uptown Consortium (45 million), and the Kroger Community Development Entity ($15 million).

To win an NMTC grant, a corporation — in federal parlance, Community Development Entities (CDE) — must lobby the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund on behalf of private investors like the Cincinnati Center City Development Corporation (3CDC). If the CDFI approves the application, then the investors who pledged money to the CDE will receive a seven-year tax abatement to support development.

3CDC, in particular, has secured a eye-popping $238 million since the program’s inception. Without this capital, it’s unlikely that OTR would have changed as drastically as it has. The community was a no-brainer for NMTC-driven development due to its extreme poverty. The neighborhood’s median household income during the 2010 census was a paltry $14,517. Six years and billions of dollars have certainly improved its lot, but its average income still pales in comparison to the city’s 2015 median income, $56,826.

While OTR will likely continue to receive the majority of NMTC-driven development, other distressed neighborhoods are receiving attention. According to Director of Development Thea Munchel, the Walnut Hills Redevelopment Foundation expects approximately $6.5 million in NMTC Equity for its expected revitalization of Paramount Square. “It is too early to know who all will participate in the deal,” she said. “But Cincinnati Development Fund received a huge award and has indicated that they will contribute some into the project.”

Categories
Development News

Cincinnati Rent Data Reveals Housing Challenges

Prospect Hill in Over-the-Rhine [Travis Estell]

Renting an apartment in Cincinnati is comparable in price to most of the geographically close and similar-sized cities in the Industrial Midwest and Upper South regions. Apartment-finding website RentCafé investigated the average apartment size and rent in America’s 100 largest cities. Using a baseline of $1,500, the data provides a glimpse America’s most and least-expensive cities.

Cincinnati’s price per square foot comes out to be exactly $1.00 and, with an average apartment size of 863 square feet, the average rent in the city is $866. Cincinnati is identical in price per square foot with St. Louis, MO, although a smaller average apartment size makes the average rent ($839) cheaper in that city. Cincinnati’s average rent is less than in Pittsburgh, PA ($1,070) and Cleveland, OH ($927) but more expensive than Columbus ($800), Indianapolis ($758), and Louisville ($841). Besides Indianapolis and Pittsburgh, most nearby cities remained relatively similar in average rent prices.

rentanalysisohio

RentCafé’s data also shows, unsurprisingly, that New York City, San Francisco, and Boston top the list with average rents coming out to $4,031, $3,275, and $3,111, respectively. Using the baseline of $1,500, you could afford a 271 square foot apartment in New York City, a 342 square foot one in San Francisco, or an apartment with 399 square feet in Boston. Other cities at the top of the list include other expected cities such as Washington, DC, Seattle, WA, and Los Angeles, CA. The cheapest cities for rent in the nation are Memphis, TN, Wichita KS, and Winston-Salem, NC.

Despite rent in Cincinnati and related cities being relatively cheap renters in these cities’ respective counties struggle to afford a decent apartment. Based on data from the National Low Income Housing Coalition (NLIHC), a typical renter household in Hamilton County, OH (Cincinnati) will spend 36.9% of their income to afford a two-bedroom apartment. The NLIHC considers anything more than 30% to be unaffordable. In Marion County, IN (Indianapolis) that number is 35.1%, in Jefferson County, KY (Louisville) it’s 35.5%, 33.9% in Allegheny County, PA (Pittsburgh), and 37.1% in Cuyahoga County, OH (Cleveland). Franklin County, OH (Columbus) comes close to being affordable at 30.4% and St. Louis County barely makes the cut at 29.7%.

While housing crises are well-documented and discussed in America’s booming cities like New York City and San Francisco, this data shows the need for more affordable housing in many of America’s smaller metropolises as well. In fact, looking at the data from the National Low Income Housing Coalition, one would be hard-pressed to find many major American cities that meet the 30% of income threshold set by the NLIHC.