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Business Development News

Cincinnati Gentrified at One of Nation’s Fastest Rates Immediately Following Housing Boom

During the housing boom years between 2000 and 2007, many cities saw an influx of new housing and new wealth into their core neighborhoods. It was a trend that was consistent throughout America as wealthier individuals looked to move back into the cities that had been abandoned in prior decades.

This trend was more pronounced in some cities – Atlanta, Washington D.C., Denver, and Seattle – than others. But for the most part, the majority of the cities were gaining wealth relative to their regional average. Following the burst of the housing bubble, however, virtually every city saw this rate of improvement slow down.

According to research from the Federal Reserve Bank of Cleveland, the majority of 59 cities studied now fall between either a one percentile decline or one percentile increase between 2007 and 2010. This is in contrast to the housing boom period which saw cities like Atlanta and Washington D.C. move up 8.7 and 5 percentiles respectively.

“During the housing boom, a number of large cities in the United States experienced redevelopment in their lower-income neighborhoods as higher-income residents moved in, a process known as gentrification,” wrote researcher Daniel Hartley. “Since lending standards have tightened with the onset of the housing bust and the financial crisis, we wondered whether gentrification has continued after the recession in places where it was happening before.”

The results of their research found that only a select handful of regions reasonably continued to see relative wealth growth in their principal cities. The findings also detected one region that bucked the trend and actually increased its gains over the housing boom period.

“Another interesting case is Cincinnati, which barely changed in income ranking from 2000 to 2007 but has increased at a pace similar to Denver or Washington during the 2007 to 2010 period,” the research team noted.

Hints of such activity were realized in December 2013 when UrbanCincy uncovered that census tracts all over the city were experiencing wealth increases.

While the gains in wealth may seem like a positive thing for the city, not everyone is so thrilled about the changes taking place in Cincinnati.

“It seems to me what this information really indicates is how, when people experiencing poverty are systematically removed from a certain area, and housing stock is renovated with the goal of selling to wealthier people, property values increase,” says Jason Haap, an area teacher and prominent advocate for the city’s homeless population. “The fact that Cincinnati has seen gentrified growth during a time of slow economic growth in minority communities further exacerbates the situation.”

One of the tools in order to prevent the displacement Haap mentions from happening is including ‘set asides’ in new developments for affordable housing. The Cincinnati Center City Development Corporation (3CDC) has done this a bit in Over-the-Rhine at projects like Mercer Commons and Bremen Lofts, but there is no official city policy or requirement to do so.

What also factors into the relative changes studied by the Federal Reserve Bank is the widespread poverty and low income levels of those living within city limits. Thus, even nominal improvements would show up as a potentially significant increase.

We do know, however, that some housing prices, particularly in the city center where demand is highest, are starting to get out of hand. Most new apartment developments in the Central Business District now feature rents of $2,000 or more per month, and in one recent case, a three bedroom flat on Sixth Street rented for a whopping $4,600 per month.

In such cases it is leaving many now wondering if these prices are not only driving out existing residents but, paradoxically, also preventing many new potential residents from moving in.

“Demand in Cincinnati’s core is insatiable, and supply is only coming online at a trickle,” explained Derek Bauman, an urban development consultant and chairman of Cincinnatians for Progress. “Without urban housing supply, we may miss the coming wave of new residents. At nearly $2 per square-foot rents and $250-$300 a square-foot sales, we may not have Manhattan prices yet, but we’re damn near Brooklyn.”

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News Opinion Transportation

APA14: Transportation Set the Mood at This Year’s National Planning Conference in Atlanta

This year the American Planning Association (APA) National Conference was held in Atlanta from April 26 to 30 at the Georgia World Conference Center. For those who have never been, it is five days packed full of urban-focused sessions, workshops, tours, meetings, happy hours and an awards ceremony, with approximately 5,000 in conference attendees.

Cincinnati’s Department of Planning & Buildings received the prestigious Daniel Burnham Award for for Plan Cincinnati. Last year in Chicago, Cincinnati took home this same award for the execution of its Central Riverfront Plan. Plus, UrbanCincy was recognized by Planetizen immediately following the five-day event as being one of the “top influencers” at the conference. Needless to say, the mood was especially festive for the few dozen attendees from the Cincinnati region.

Attendees and experts are also able to submit ideas for presentations, and put on a session of their own. For presenters, it is a lot like show and tell. Professionals get to share lessons, valuable knowledge gained on the job or show off a successful or interesting planning project to the world.

This year’s conference program was particularly transportation-heavy, and with good reason.

Many presenters remarked on the increasing evidence that people are trading in their car for a transit pass, a bicycle or walking shoes. Teenagers, in particular, have less interest in acquiring driver’s licenses. The rate at which this is happening is significant enough that it has been covered by nearly every major news source in the United States, according to Greg Hughes from the Utah Transit Authority in a session about transit and competitiveness.

Bloomberg Business Week reported that from 2001 to 2009, 16- to 34-year-olds took 24%more bike trips and were 16% more likely to walk to their destinations. Meanwhile, from 2000 to 2010, the share of 14- to 34-year-olds without drivers’ licenses increased from 21% to 26%.

National Geographic reported in December that this trend was acknowledged in “dramatically altered projections” for transportation energy use over the next 25 years by U.S. government forecasters.

If anyone feels that Cincinnati is bucking the trend, we could take our temperature on the invisible hand.

Zipcar, Uber, Lyft and Cincy Bike Share have all moved past the market analysis phase and are providing, or will soon provide, private-automobile alternatives within the city. In addition, bus ridership in Cincinnati grew by 3.5% last year, significantly more than the 1% seen nationally, according to the American Public Transportation Association.

This same APTA report showed the highest U.S. transit ridership in 57 years. It seems that we could be entering into a new Golden Age of transit.

Atlanta had a few transportation projects of its own to showcase. One of the favorite activities for conference attendees was exploring the Atlanta BeltLine – a 25-year project that will transform old railway and industrial sites into 22 miles of multi-modal trail right in the heart of the city. It connects multiple parks and green spaces, and given that it is woven so seamlessly into the city fabric, is a viable transportation alternative to city streets.

Atlanta boasts the largest public transit system in the southern United States, and carries roughly 500,000 passengers on weekdays.

MARTA rail services were well-used by conference attendees, and some attendees even made a point to get hotels outside of downtown and utilize the subway to get to the conference venue and back. Although not yet operational, Atlanta is also in the process of finalizing its 2.7-mile streetcar project running from Centennial Olympic Park downtown to the historic Old Fourth Ward neighborhood to the east.

Atlanta’s pedestrian-oriented Midtown neighborhood became a favorite after-conference hangout, and the restaurant and pub scene in Little Five Points was both eclectic and funky. Next year’s conference will be held in Seattle.

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Up To Speed

Can good design of our communities make us happier?

Can good design of our communities make us happier?.

There is enough literature available now to know that the way we shape and build our communities has a strong impact on our individual and collective happiness. Why some communities continue to ignore these core human principles is beyond me, but if we can build places based on the fundamental knowledge we already have, then we can build better places for human interaction and happiness. More from Better! Cities & Towns:

The way we design our communities plays a huge role in how we experience our lives. Neighborhoods built without sidewalks, for instance, mean that people walk less and therefore enjoy fewer spontaneous encounters, which is what instills a spirit of community to a place…You don’t have to be a therapist to realize that this creates lasting psychological effects. It thwarts the connections between people that encourage us to congregate, cooperate, and work for the common good. We retreat into ever more privatized existences.

Groupings of four to twelve households make an ideal community “where meaningful ‘neighborly’ relationships are fostered.” But even here, design shapes our destiny. Chapin explains that strong connections between neighbors develop most fully and organically when everyone shares some “common ground.” That can be a semi-public space, as in the pocket neighborhoods Chapin designs in the Seattle area.

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Up To Speed

Is the deck stacked against cities in state legislatures?

Is the deck stacked against cities in state legislatures?.

It is difficult enough for local or regional governments and agencies to figure out how to pay for their necessary infrastructure investments, and it’s even more difficult when state legislatures dominated by rural representation do not even grant those entities the authority to hold public votes on the matter. Is this yet another example of anti-city bias in our nation’s political system? More from the Seattle Times:

When the gavel sounded adjourning the state legislative session this year, a critical piece of work was left undone. The Legislature failed to grant local cities and counties the power to ask voters for transportation funding. We will face crippling congestion in the coming year.

In 2011, the state Legislature recognized the reforms Metro made to reduce costs and run more efficiently, and partnered with King County to provide a temporary Congestion Reduction Charge, allowing Metro to avoid transit cuts for two years. A public hearing over whether the Metropolitan King County Council should enact the charge or cut transit service drew a thousand people who stood in a line around the block to testify in favor of saving transit service.They deserve to have their voices heard by leaders in the state senate.

The pending cuts to Metro Transit is an emergency that can no longer be ignored, particularly by the state Senate Majority Coalition Caucus. Transit cuts mean fewer buses, and the overcrowding and inconvenience drives people back to their cars. When there’s no more room on our crowded buses and congested roads and highways, jobs move elsewhere and we lose out.

Categories
Business News Transportation

Industry Experts Believe a ‘Parking Revolution’ is Sweeping America

In April of this year, members of the International Parking Institute, the world’s largest association representing the parking industry, surveyed parking professionals to determine trends and gain input on parking and related topics.

The survey results found that a “parking revolution” is taking place in the United States, and that the industry is beginning to embrace a variety of new parking solutions.

“The industry is embracing a variety of new technologies that make it easier for people to find and pay for parking, and for parking authorities to better manage it,” the report stated.

Cities identified as leaders in the movement included San Francisco, Portland, New York City, Seattle, Miami, Houston, Boston, Denver, Pittsburgh, Washington D.C., and Tampa.

Emerging Parking Trends

Cincinnati’s recently approved Parking Modernization & Lease Program appears to apply these top trends by moving toward technologies that improve access control, payment automation, and real-time communication of pricing and availability to user’s mobile devices.

These kinds of features are the new standard being implemented around the country, and are provided by Cincinnati’s lease agreement.

Parking professionals were also asked to identify the ten most progressive municipal parking programs in the United States, with San Francisco’s SFpark named most innovative.

“The SFpark pilot project provides real-time information on parking availability and cost; reduces double parking, circling, and congestion; and improves parking ease and convenience,” the report stated. “A high-caliber data management tool allows the San Francisco County Transportation Authority to make rate-change recommendations, supply real-time data, maintain optimum operational and contractual control, and rigorously evaluate the pilot’s various components.”

Respondents also said that SFpark was particularly bold in requiring city and government employees to pay for parking in order to bolster the program’s credibility before asking voters to consider sweeping changes in parking management.

Of particular interest is SFpark’s on-street rate adjustment policy.

Prior to the changes, rate adjustments were made during the budget-planning process. The goal with the pilot program is to take a demand-based approach in order to achieve parking availability targets in a consistent, simple and transparent manner.

Prior to the program, rates in downtown were $3.50/hour, $3.00/hour in the downtown periphery and $2.00/hour in neighborhood commercial districts, and were operational mostly from 7am to 6pm or 9am to 6pm Monday through Saturday. As part of the pilot program, demand responsive time-of-day pricing is split into three distinct rate periods: 9am to 12pm, 12pm to 3pm, and 3pm to 6pm for 9am to 6pm spaces.

These demand-responsive rate changes are made gradually, no more than once per month, and periodically near the first of the month based on occupancy in the previous month.

In order to maintain at least one parking space per block, 80% space occupancy is desired with rates increased when occupancy is greater than 80%, held constant at 60% to 80% and decreased with less than 60% occupancy on a per-block basis to more effectively redistribute parking demand.

In order to help users from having to cut trips short or risk parking tickets, time limits in the pilot areas were lengthened from 30 minutes/two hours to four hours/no limit.

Cincinnati’s program, meanwhile, will provide for public rate control and expanded hours of operation from 8am to 9pm in the Central Business District and 7am to 9pm in neighborhoods. The plan will also allow for limited $0.25 incremental rate increases, but there does not appear to be provisions for demand responsive time of day pricing, a target on-street block occupancy amount, or lengthened or eliminated time limits.

In addition to new technologies, the report indicates that parking is becoming more than just a place to store cars, and is instead moving towards more integrated forms of transportation planning – something that has also taken place locally through new bicycle parking provisions and parking requirement restructuring.

“Today, parking is about so much more than storing cars,” concluded Shawn Conrad, executive director for the International Parking Institute. “It’s central to the creation of livable, walkable communities. It’s about cars, bikes, mass transit, mobility, and connecting people to places.”