Tuesday, July 28, 2009

Receivership 101 shows ways to get blighted properties into hands of responsible owners

Last week, more than two dozen community development professionals from throughout Cincinnati learned about how the nuisance abatement law can be used to get blighted properties "out of bad hands and into good hands" during Receivership 101, part of the City of Cincinnati's Home Grown Expert Roundtable Series.

Receivership is a legal remedy in which a judge can grant legal access to a property to a community developer – normally a non-profit – to remediate a nuisance property, who then returns the property to the owner for the cost of the repairs or have the court offer it for sale to a third party.

Paul Rudemiller, executive director of the Camp Washington Community Board, says that receivership can be the best way to force action by a negligent or absentee owner.

The board's first receivership action, taken in 1996 against an absentee owner on a building that had been vacant for three years, eventually resulted in the owner bringing the building up to code and renting it to a tenant.

"The City couldn't make it happen," Rudemiller says. "The reason is because the City couldn't locate the guy, and they couldn't get a warrant served."

Nuisance abatement and the threat of receivership is different, he says, because a judge had the power to take his property away from him.

"All of a sudden, he comes forth," Rudemiller says. "It works very well on people who think they can avoid building inspectors."


Winning by losing

But more often than not, owners lack the ability to make these improvements, and Rudemiller cautions that community developers wishing to utilize the receivership strategy must have the proper skills and resources because the work usually results in a net financial loss.

"There's a fundamental reason why many of these properties are in the shape they're in," he says. "Generally speaking, it doesn't make economic sense to fix them up – it costs more than the building's worth. Therefore, if you accept that you can't make money on renovating and fixing the property, it follows that you have to lose money. Who would want to do that?"

Rudemiller says that this is the true test of whether or not a community developer has those required skills and resources.

"If your main goal is to improve the neighborhood and you're willing to take a loss, then you're a good candidate for receivership," he says.


Fourteen cases in 15 years

The Camp Washington Community Board has filed 14 nuisance abatement lawsuits since 1994.

Generally, the board's work involves cutting the grass and trimming overgrown trees, removing rubbish, installing new roofs and windows, and painting exteriors.

The board can then go back to the judge for a finding that the property has been abated, leaving any interior rehabilitation up to a new owner.

However, receivership sometimes can require a much bigger commitment by a community developer.

, a prominent building that had over $115,000 in liens, eventually was turned over to a third-party owner and architect.

The board settled the liens with the Internal Revenue Service and worked with the new owner on interior renovations, eventually sinking $65,000 into the project.


Some still duck responsibility

Receivership is not without its pitfalls.

In 2008, the Camp Washington Community Board tried to purchase , a flipped property that was foreclosed upon by Wells Fargo following the board's filing of a nuisance abatement lawsuit.

After submitting an offer and not hearing from the bank, a new nuisance abatement lawsuit was filed by the City of Cincinnati – only then was it discovered that the property had been sold to Blue Spruce Entities LLC of South Dakota several months prior.

The deed had never been recorded.

The board then pursued a lawsuit against Blue Spruce, but soon after the property was sold to Go Invest Wisely LLC of Utah.

The lawsuit was again amended, resulting in Go Invest Wisely deeding the property to Eco Dream Affordable Housing Inc. of California.

That deed was finally recorded on March 12, 2009, and the new owner has yet to respond to the lawsuit.

Rudemiller says that the next court hearing is on Thursday, and they hope to receive a default judgement, which could then lead to the property being declared a public nuisance.

"I suspect that we'll be appointed receiver," he says.

Then work can begin on yet another project.

"Our main mission is not to make money," Rudemiller says. "It's to improve housing in Camp Washington."

Patricia Garry, executive director of the Community Development Corporations Association of Greater Cincinnati, says that Receivership 101 attendees left with much the same outlook for their individual neighborhoods.

"Folks left feeling that receivership was a useful tool in revitalizing neighborhoods, easier to use than they thought, and that it is a process that takes time," she says. "That time is used by the court, the owner, the neighborhood and the potential receiver to work out the best way to return the house to a useful building in the community."

Previous reading on BC:
Morgan, OTR group propose changes to City code enforcement (7/21/09)
Group petitioning council to stop Over-the-Rhine demolitions (6/10/09)

Cincinnati EDC to consider rezoning for UC student apartments

On August 4, Cincinnati City Council's Economic Development Committee (EDC) will consider a rezoning request that could bring two new six-unit apartment buildings to Corryville.

Daniel Schimberg of Uptown Rental Properties has applied for a zoning change at from RMX Residential Mixed District to RM 1.2 Residential Multi-Family District to construct the two new infill buildings, which would be geared toward student housing.

The buildings – one facing Jefferson Avenue and one facing W Charlton Street – would include basement parking, and an existing 10-unit apartment building on site would be renovated as part of the project.

Schimberg owns all of the subject property except for 2706 Jefferson Avenue, whose owner has agreed to the zoning change.

Because the 2005 Corryville University Village Urban Renewal Plan found that the existing structures are non-contributing residential properties and proposed the site as a redevelopment area, suggesting much higher densities, the Corryville Community Council unanimously supported the zoning change.

The City Planning Commission approved of the rezoning at its June 19 meeting.

If approved, ground is likely to be broken by mid-August, meaning that units could be available for the 2010-2011 academic year.

Transfer of federal HOME funding could bring senior infill to Avondale

A Cincinnati City Council approval on August 5 could provide $775,000 for affordable senior housing in Avondale.

Model Management is seeking the federal HOME funding to construct Forest Square, a new 21-unit, LEED-certified infill building at .

The funding would be drawn from three existing HOME project accounts: $586,000 from Deferred Rehab Loans & Lead Grants '07, $162,000 from Deferred Rehab Loans & Lead Grants '08, and $27,000 from American Dream Downpayment Initiative '08.*

Model Management is seeking LEED certification for the project.

Created in 1990 and administered by the U.S. Department of Housing and Urban Development, HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households, allocating approximately $2 billion annually.

Figures rounded to the nearest thousand.

Ordinance would fund infrastructure for Citirama 2010

A new capital improvement program project account could be created for public infrastructure to support Citirama 2010, if an ordinance is approved by Cincinnati City Council.

The Home Builders Association of Greater Cincinnati (HBAGC) has selected the second phase of in Northside as the site of the home show, tentatively scheduled for June of next year.

Because of the timing, infrastructure work needs to begin this fall; however, the funding appropriated for the project is part of the Department of Community Development's 2010 capital improvement program project budget, meaning that is cannot be spent this year.

To keep the project timeline on track, the ordinance would allow the City to transfer $700,000 from the Downtown Housing Development '09 capital account into the new Citirama capital account.

Next year, $700,000 from the Citirama 2010 capital account will be transferred into the Downtown Housing Development '10 capital account.

The 37-home second phase of Rockford Woods was originally planned for Citirama this summer, but the HBAGC canceled the event due to the depressed housing market.

Early last year, many residents surrounding the newer development requested that the City abandon the proposal altogether, citing the inability of Rockford Place to handle the additional traffic, hillside erosion, the lost of woodlands, and the poor experience suffered by homebuyers in the project's first phase.

That 16-home first phase, featured in Citirama 2001, was plagued with problems for several years after developer EEHV, LLC walked away from the project and failed to record many important subdivision documents.

2010's home show will be the ninth held by the HBAGC.

In addition to Rockford Woods, past Citirama events have been held at Betts-Longworth and St. Ann's Common I and II in the West End, Brodbeck Park and Woodcrest Park in Westwood, Spencer Hill in Mount Lookout, and the Villages of Daybreak in Bond Hill.

Previous reading on BC:
Cincinnati approves $1M for Rockford Woods improvements (8/12/08)
Cincinnati to vote on CiTiRAMA road improvements (7/30/08)
Rockford Woods pitting neighbor against neighbor (7/8/08)
Amendment made for, questions asked about Rockford Woods (3/4/08)
Rockford Woods aid passes unanimously (2/19/08)

USGBC issues call for ideas

The U.S. Green Building Council (USGBC) has issued a LEED Call for Ideas to gather input on ways it can improve upon its green rating system.

Feedback will limited to improvements to the technical criteria, proposals for new credits, and the program's overall effectiveness.

The survey is open to the public and will be available online until August 7.

Wrecking Cincinnati, 7/28/09


Single-family
DOB: 1870
Died: March 2009
Cause of death: No clue, although there were orders for the repair of exterior walls dating back to 2007. The Department of Buildings and Inspections received complaints of possible squatters in early 2008.

The house was owned by Northside-based Adco Realty, Inc.

Remembering Cincinnati, 7/28/09

One year ago:

Monday, July 27, 2009

Frost Brown Todd inks deal for Great American Tower; Building 80 percent leased

Frost Brown Todd and developer Eagle Realty Group have announced that the law firm has signed a long-term deal to move its Downtown Cincinnati office to the $322 million, 41-story Great American Tower at Queen City Square, currently under construction on Third Street.

The firm's 300 office employees will move from the PNC Center to more than 100,000 square feet of space, on floors 30 to 33, in late 2011.

"We are a regional firm, but our biggest office is here in Cincinnati, and this move demonstrates our confidence in this city and its downtown," said Jill P. Meyer, member-in-charge of Frost Brown Todd's Cincinnati office.

With the announcement of its newest tenant, only seven of the building's floors – approximately 20 percent of its leasable space – remain available.

"We are extremely pleased to have Frost Brown Todd become a key tenant in the newest, largest and most prominent office tower in downtown Cincinnati," said Mario San Marco, president of Eagle Realty Group. "Our building – the first 'green' building in Cincinnati's central business district – will offer Frost Brown Todd incredible views, state-of-the-art features, and brand new construction."

The building's key features include a 1,700-space parking garage, an entry plaza and grand rotunda at Fourth and Sycamore streets, and a spacious pedestrian promenade with 20,000-25,000 square feet of ground-level retail.

The building, designed with abundant natural light and energy efficient mechanical systems, has been registered with the U.S. Green Building Council for LEED certification.

The Queen City Square complex is co-sponsored by its funding partners, the Port of Greater Cincinnati Development Authority and the City of Cincinnati.

Turner Construction Company is the general contractor.

Great American Tower at Queen City Square photo courtesy of 5chw4r7z.

Previous reading on BC:
Great American Tower at Queen City Square photo update, 11/3/08 (11/12/08)
Random projects photo update (8/11/08)
Queen City Square agreements approved (6/12/08)
Queen City Square land transfers approved, agreements pending (6/6/08)
Land conveyances needed for Queen City Square (5/19/08)

OHFA to administer program to keep college grads in Ohio

Over the next several months, the --> --> --> (OHFA) will begin implementation of the Grants for Grads program, designed to help keep Ohio's college graduates from leaving the state.

Introduced by Senator Stephen Buehrer (R-Fremont) and included in this year's biennial budget bill, Grants for Grads will provide graduates with down payment and closing cost assistance in exchange for their promise to remain in Ohio for at least five years.

Graduates receiving any kind of degree are eligible and must obtain a 30-year, fixed-rate mortgage through OHFA's First-Time Homebuyer Program within 18 months of graduating.

A recent Thomas B. Fordham Institute study of 800 students at seven Ohio colleges found that 51 percent of native Ohioans plan to leave the state after graduation, and 79 percent of non-natives said that they plan on leaving.

Tax incentives and mortgage assistance were cited by students as one of the best ways to get them to remain in the state.

Ohio ranks 38th nationally in the number of residents with college degrees – just 24 percent have bachelor's degrees, compared to the national average of 27.5 percent.

Image courtesy of Independent Icelandic News.

Previous reading on BC:
Two Cincinnati projects win federal tax credits (7/7/09)
Cincinnati supports tax credits for Evanston rental project (3/18/09)
$10.2M St. Leger Place rental project seeks tax credits (3/10/09)
Affordable housing projects win federal tax credits (8/9/07)
Model Property Development seeking federal funds for fourteen-building rehab (7/3/07)

Greater Cincinnati in June

The following photos were taken throughout the month of June.

The Northside photos were taken during a media event and tour held by the City of Cincinnati, kicking off National Homeownership Month by highlighting CNCURC's and Working in Neighborhoods' work with the Fergus Street Homeownership Project.

The photos of the West End and South Fairmount were taken during my tour of three Cincinnati Public Schools buildings, which were going up for public auction the next day.

The Downtown photos were taken during a break from Queen City Survey's happy hour at the Cincinnati Athletic Club.

The new gallery for Covington's Westside neighborhood is populated with photos taken during the dedication of Henry Farny Park.

The Over-the-Rhine and Downtown Covington photos were just random shots taken for no good reason.

The 36 photos in this slideshow have been added to the following galleries:

  • Westside (Covington) +8 (8 photos)
  • South Fairmount +7 (25 photos)
  • West End +7 (39 photos)
  • Downtown +6 (255 photos)
  • Northside +4 (162 photos)
  • Over-the-Rhine +3 (262 photos)
  • Covington Downtown +1 (32 photos)
These galleries, and galleries for dozens of other Greater Cincinnati communities, can be found in the drop-down menu at the top of the right-hand column.

Hover over the slideshow to bring up the controls. You may stop the slideshow by clicking on the square "stop" button, allowing you to scroll through the photos at your own leisure. To get a better view, click on each image to enlarge to 800 x 600. Photos will open in a new browser window.

OKI wins international award for use of GIS technology

The Ohio-Kentucky-Indiana Regional Council of Governments (OKI) was one of 145 worldwide winners of a Special Achievement in GIS Award, chosen from the more than 300,000 organizations using ERSI's geographic information system (GIS) technology.

The award, given for the most innovative uses of the company's product, was presented at the 2009 ERSI International User Conference in San Diego.

GIS combines computer hardware, software and data to collect, manage, and analyze geographic information, giving users the ability to see relationships, patterns and trends in the form of maps, reports, and charts.

OKI established its GIS department in 2002 and has utilized the technology throughout its many programs, projects, and initiatives.

Its broadest use of the technology is in its OKI Travel Demand Model, which uses GIS to store and maintain a highway network and street centerline database for the entire region.

This database allows OKI to model and forecast regional travel demand, informing transportation decisions such as signal timing, new turn lanes, accommodations for pedestrians and transit, and roadway capacity.

The GIS department also uses the technology to help communities develop land use plans, capital improvement plans, economic development and greenspace strategies, and to address infrastructure concerns.

"We are extremely proud of the work our GIS department has accomplished and honored to receive such a selective award," said OKI board president and Campbell County judge executive Steve Pendery. "The vast range of projects undertaken by our GIS department deserves recognition."

ESRI estimates that more than 1 million people worldwide use their technology, including each of the 200 largest cities in the United States, more than two-thirds of Fortune 500 companies, and more than 7,000 colleges and universities.

"Our world is being challenged by rapid change," says Jack Dangermond, ESRI president. "GIS technology is increasingly being deployed as a way to understand the issues facing our society. At ESRI, we are always extremely impressed with the work of our users and want to recognize their efforts with our Special Achievement in GIS Award. Their work is a great example of using GIS to improve our world."

Photo credit: "ESRO UC 017" by , courtesy of Flickr. Creative Commons Attribution 2.0 Generic.

Previous reading on BC:
Interactive OKI bike route guide now online (7/15/09)
2009 Cincinnati Bike Route guide released (5/19/09)
OKI bike plan updated, Cincinnati's moving forward (5/5/09)
OKI releases 2008 annual report (4/30/09)
OKI conducting travel survey (3/12/09)

New 3CDC website features more photography, projects

Stanard Design Partners and Atlas Design & Technology have unveiled a redesigned website for Cincinnati Center City Development Corporation (3CDC), with bold photographs of the City's urban core and a special emphasis on the non-profit's development projects.

A "Newsroom" feature highlights the appearance of 3CDC's projects in local and national news outlets, and an "About Us" section allows users to peruse the organization's monthly reports and membership.

"What we wanted the new site to catch most of all was the vision of Cincinnati that 3CDC embodies – not just the vision of what Cincinnati could be tomorrow, but what it is today – a city with a thriving and vibrant urban heart," says Cynthia Stanard, design partner at Stanard Design.

Many of 3CDC¹s success stories, including the redeveloped Fountain Square and Gateway Quarter, and future projects, like the redesigned Washington Park, are prominently displayed.

"Seeing what 3CDC has already done, and what's in development, makes me very excited for the direction Cincinnati is headed in," says Davis Stanard, design partner at Stanard Design. "And we're proud to be playing a role in that."

Mount Washington-based Stanard Design Partners is best known for developing Space513.com, but has also created projects for companies such as Kao Brands and Lasik Plus; Atlas Design & Technology, located in Green Township, has developed websites for Taste Cincinnati Magazine, and the Walton Verona Independent Schools, among others.

Both firms recently collaborated to create a new website for the Cincinnati USA Convention & Visitors Bureau.

Previous reading on BC:
Cincinnati approves funding for permanent supportive housing (7/2/09)
OTRCH: Jimmy Heath House is not 'shelter', but a proven concept (6/22/09)
Go OTR 5K Run/Walk and Summer Celebration to show off neighborhood's best (6/17/09)
Group petitioning council to stop Over-the-Rhine demolitions (6/10/09)
Cincinnati approves payment for Walnut Street streetscape (4/28/09)

Wrecking Cincinnati, 7/27/09


Single-family
DOB: 1905
Died: May 2009
Cause of death: A one-alarm fire causing extensive damage to the entire structure, including the roof and siding, creating an unihabitable shell. Broken and missing windows allowed children and stray animals to get inside, and an open swimming pool in the back yard was identified as a neighborhood hazard. Assorted fire-related debris littered the property.

The house was condemned in October 2006, and a criminal case is pending against the owner. There is a lien on the property and more than $15,000 in back property taxes owed.

It was declared a public nuisance in November 2008 and razed by the City following asbestos abatement.

Remembering Cincinnati, 7/27/09

Two years ago:

  • The City of Cincinnati received $3 million in Clean Ohio Revitalization Funds for environmental remediation work at the MetroWest Commerce Park site.
  • It was discovered that Vladimir Putin is a Cincinnati property owner!
  • The Cincinnati USA Regional Chamber, Cincinnati.com and CincyTechUSA were sponsoring a "Best Blogs" contest.

Tuesday, July 21, 2009

Morgan, OTR group propose changes to City code enforcement

A group led by Over-the-Rhine Foundation executive director Mike Morgan and neighborhood resident Danny Klingler has submitted a 29-page report to Cincinnati City Council, outlining changes he believes will both save historic buildings and spur economic development.

Calling a recent surge in demolitions an "imminent threat", especially to historically significant areas such as Over-the-Rhine, the group has been meeting since last September in an attempt to alert council about aspects of the Cincinnati Municipal Code (CMC) that promote demolition of buildings over rehabilitation.

This synopsis of the report includes ideas and quotes from Morgan, who researched, wrote, and signed the document.


Administrative overhaul

Morgan's first suggestion is to refer significant code violations to administrative boards much earlier inthe process, and to empower building owners to make repairs.

Morgan says that both the Board of Building Appeals and the Board of Housing Appeals both become involved after code complaints are filed, but offer few remedies and cannot order repairs to be made.

Additionally, the Public Nuisance Board can declare a property condemned and can order its demolition, but also cannot order repairs.

"The presence or absence of historic significance is essentially irrelevant in the analysis," Morgan says.

Morgan says that the solution is to make the boards more outcome-oriented than reactionary by empowering them to engage property owners, ordering repairs when the owner refuses to remedy the problem and the historic character or neighborhood makes repair more desirable than demolition.

This could be done through revisions to sections 1101-81 and 1101-83 of the CMC, he says.

"Most of these changes are relatively simple in that they utilize existing code and administrative functions," Morgan says.


Use some demolition funds for repairs

Demolition is often chosen as a solution to blighted buildings due to the lack of a funding source for repair work.

Morgan recommends channeling some of the hazard abatement funds into saving building, with changes to CMC sections 1101-63.4 and 1101-63.4.5 calling for repairs and compliance, whenever reasonable, for any historic landmark or contributing structure.

Several changes to Chapter 1101 of the CMC would add preservation as a factor when considering whether or not to demolish a building.

For example, a change to Section 1101-57.1 would provide for a temporary waiver of Vacated Building Maintenance License (VBML) requirements, make enforcement of vacant building standards preferable to demolition of historic buildings, and make receivership preferable to demolition.

"In its current form, Section 1101-57.1 makes a building subject to demolition simply if the owner has failed to comply with the minimum standards required for a vacant building, regardless of whether it poses an actual threat to safety," Morgan says.

Additionally, any historic or contributing building subject to demolition would require notice to be sent to the Urban Conservator and non-profit organizations active in neighborhood rehabilitation, and public hearing notices would be required to be posted both on the building and in the City Bulletin.

The Urban Conservator would then determine the historic significance of the structure, and a reputable, experienced contractor would be required to survey the condition of the building.

All interested parties could testify at the public hearing.

Following the hearing, the building could only be demolished if the value of historic preservation is outweighed by the threat to public safety, and no viable alternative to demolition has been presented.

"Then the director (of the Division of Buildings & Inspections) shall direct the subject building to be demolished and its premises restored to a safe condition, free from any public nuisance," Morgan says. "The director shall reduce the order to writing and incorporate the findings and conclusions supporting the order."

This order would be subject to appeal.

If a building includes usable interior or exterior elements of architectural or historic value, the director of Buildings & Inspections may cause their removal prior to demolition, with the cost of their removal included in the total demolition budget.

The cost for permits to demolish a historic or contributing building would also be raised to $5,000 for the first 1,000 square feet and $1,000 for each additional 1,000 square feet of total floor area. (Comparatively, permit fees for non-historic buildings are $59 for the first 1,000 square feet and $30 for each additional 1,000 square feet of total floor area.)

"None of these changes will generate undue delay or unsafe conditions," Morgan says. "They are intended to simply codify a policy that demolition is a less attractive option for code enforcement when historic buildings and districts are involved."


The VBML

Any order requiring a building to be vacated would include instructions on how the owner could obtain a VBML and how the owner could obtain a certificate of appropriateness for any repair materials.

"The existing code still fails to adequately recognize the number of hurdles and amount of time required to redevelop long vacant properties in areas of disinvestment, e.g. Over-the-Rhine," Morgan says. "The text of VBML requirements also treats redevelopment and demolition as equal options, even in historic districts. The net result is to encourage demolition where redevelopment is preferrable."

Morgan says that the VBML's retention of records of fees and attachment of liens on properties creates a "trap" for purchasers of vacant properties.

Because these liens are not reported to the Hamilton County Recorder, title exams prior to the purchase of the property will not reveal them to a prospective buyer.

Additionally, successive fees of $3,500 per year (properties vacated or vacant for at least five years), over several years, can often exceed the value of the building.

"This helps fuel legal challenges to the VBML, as well as being simply unfair to innocent buyers," Morgan says. "Secondly, it can discourage redevelopment and in some circumstances may even result in an unconstitutional taking."

To remedy this "trap", Morgan recommends having the Board of Housing Appeals aid in the enforcement of the preservation of historic structures and districts by delaying provisions and fees of the VBML by three years -- if the owner can demonstrate "extenuating circumstances".

All liens would be required to be filed with the Hamilton County Recorder, and new property owners could petition the Board of Housing Appeals for forgiveness of the lien.

The board could release the lien if the new owner brings the building into compliance within one year of acquiring title, remains code compliant, and obtains a certificate of occupancy within up to five years after purchase.


Receivership

Receivership is a legal remedy that allows non-profits and municipalities to enter and remediate a nuisance property, then either offer it back to the owner for the expense of the rehabilitation or, if the owner is unwilling or unable to pay, to sell it to a qualified third party.

"Regardless of whether the property is sold to a rehabber, developer, placed in a land bank program, or returned to the owner, the result is to bring non-compliant buildings up to code, remediating blight and dangerous situations and, when the buildings are historic, better conservation of our historic neighborhoods," Morgan says. "The process can be time consuming, but simply being willing and able to proceed with a nuisance abatement suit has proven likely to stimulate the owner to remediate problems in a large number of instances."

Morgan says that Cincinnati's decision to raise VBML fees in 2006 has had a positive effect on pressuring negligent property owners and spleculators to improve their properties or transfer them to someone who can, but it's not a sufficient solution to address the estimated 4,500 vacant buildings in the City.

He says that nearly half of the owners of the 1,600-plus buildings under VBML orders are ignoring them completely, and only 5 percent of code violations are prosecuted by the City solicitor.

"When this occurs, demolition is typically the city's most potent weapon, but an unattractive option in a historic district that is at a tipping point of physical destruction," Morgan says.

Morgan says that the cost of bringing an urban core building of an average size of 3,500-square-feet is typically between $50,000 and $55,000 per building, based on a cost of $15.50 per square foot.

If a receivership action has been initiated, a stay of demolition could be issued during legal proceedings, and during a "reasonable" time thereafter to bring the building into compliance.


Financing rehabilitation

"The vast majority of development occurring in Over-the-Rhine is being accomplished by skilled developers and benefits from some sort of subsidy," Morgan says.

But the kind of owner-occupied "sweat equity" rehabilitation that builds neighborhoods on the grassroots level is missing, he says.

"This is primarily because financing the complete restoration of vacant properties is difficult," Morgan says. "Even before the collapse of many lending markets, most lenders refused to appraise properties in light of the neighborhood's redevelopment and budding market-rate rent potential. Now, obtaining financing for these projects can seem impossible."

Morgan says that this is due mainly to the lack of residential loans for rehabilitation, the refusal of lenders to finance mixed-use buildings, appraisals that look at comparable property sales instead of future potential, and a permit and inspection process that can be daunting to rehabbers.

"The building stock presents unique challenges that call for special expertise, and many contractors refuse to work in the neighborhood [OTR] due to crime," Morgan says. "There is a market for owner-occupant rehabbers, but we lack a program that can help these people navigate rehab projects."

A "Live Buy Design" program, implemented by the City several years ago, was supposed to help owner-occupant rehabilitation projects by combining homeownership classes, a $1,000 down payment assistance grant, and access to traditional Federal Housing Administration (FHA) loans.

Morgan says that the program failed for several reasons: loan officers were poorly educated about the program by lenders, the City provided little incentive to lenders, and the education component didn't cover basics such as navigating the complex FHA loans or the City's permitting and inspection process.

"All of these shortcomings can be corrected," he says. "Whether a loan program utilizes the existing 203(k) [FHA] loan or is modeled on similar loan programs used in other cities, the most potent tool for blight reduction, better historic preservation, and increased taxable land values may be the creation of a city-backed loan program."


Historic preservation

Morgan says that few changes to Chapter 1435 of the CMC, which governs historic conservation, are necessary.

"The key is to take these sections of code seriously," he says.

However, more clarity is needed.

Morgan says that developers continue the guidelines too cumbersome, while historic preservationists believe they are too lax and lead to too many unnecessary demolitions.

"'Economic hardship' exceptions have also been applied inconsistently," he says. "This creates an atmosphere of uncertainty over redevelopment and rehabilitation work in historic neighborhoods."

He adds that the CMC is written to prevent overzealous enforcement of historic guidelines from constituting an unconstitutional taking of property without just compensation, leading to demolitions in the name of financial infeasibility.

Non-profits also enjoy an exemption from historic preservation guidelines.

Morgan says this is irrational, self-contradictory, and damaging to neighborhoods like Over-the-Rhine that have a large percentage of buildings owned by non-profits.

"The clause appears to make demolition easier for a non-profit by stating that exceptions can be granted if preservation would merely deny a non-profit owner of use compatible with the organizations plans, which would essentially constitute a free pass to demolition; but the clause goes on to state that preclusion of the intended use must also constitute a taking of the property," Morgan says.

He says that the primary value of the clause seems to "reside in the potential to generate litigating over its meaning and purpose", and should be removed.

Form-based codes, which outline what is proper rather than what is prohibited and take a shared neighborhood vision into account, could serve as an example that would make both development and preservation much easier.

"These principles could be applied to generate consistent, detailed, neighborhood-specific guidelines with numerous visual examples," Morgan says. "The guidelines could be informed by a series of public meetings designed to clarify the community's vision and search for solutions to typical problems – 'problems' from the perspective of both preservationists as well as owners and developers."


Tax abatements

Tax abatements for rehabilitation and new construction are allowed by Ohio Revised Code Section 3735.67, and municipalities are given the ability to create Community Reinvestment Areas (CRA) in which to apply these incentives.

In Cincinnati, the entire City has been declared a CRA.

"Over-the-Rhine, Avondale and Price Hill are treated as being equally in need of reinvestment as Hyde Park, Mt. Lookout, and Mt. Adams," Morgan says.

One way Morgan says that this is unfair is that the maximum valuation for an abatement is the same for rehabilitation and new construction, but the valuation on a rehabilitation project starts with the existing value of the land and structure – new construction counts only the value of the land.

In other words, if a $60,000 building is rehabilitated and infill is built on a $10,000 vacant lot – and both produce end products worth $275,000 – the owners of the new construction infill will pay significantly less in property taxes.

"And the length of abatements exacerbates this inequity, granting the larger new construction abatement for five years longer [15 years versus 10 years] than the rehabilitation project," Morgan says. "This provides more incentive for demolition and new construction than historic preservation and rehabilitation."

And because the entire City is a CRA, the abatements are less likely to stimulate development in the areas that really need it.

"The current mean cost of residential condo units in Over-the-Rhine is around $185,000," Morgan says. "Even though initial land values will be greater in more prosperous neighborhoods, this still presents the possibility that an abatement on a maximum $275,000 value of improvements will be worth more in more affluent neighborhoods than in struggling ones."

The neighborhood's building stock also presents problems, he says, because buildings with more than three residential units require a cumbersome application process and additional fees.

These mixed-use buildings also require $100,000 in rehabilitation work to qualify for the abatement, more than the $2,500 that would be required by a two-family house of the same size.

Overall, Morgan says that these abatements are a reduction in tax revenue.

"They only constitute good fiscal policy if they lead to greater long-term land valuations, sales tax generation, and economic development than they forfeit in the short-term," he says. "It is difficult to understand how Cincinnati's abatement decisions achieve this goal. Rehabilitation project produce more jons and retain more money in the local economy than new construction, yet we are providing more incentive for new construction than rehabilitation."

Morgan says that the greatest potential to increase land values, add taxpayers to the City, and grow a concentration of residents resides more in the redevelopment of Over-the-Rhine than in any other public project -- including The Banks.

"But as long as tax abatements are given in areas where the market is more lucrative and less challenging, community reinvestment will not occur where it is needed most," he says.


Preservation as economic development

Charleston, Savannah, Boston, New Orleans, New York, Philadelphia, San Antonio, San Francisco....

All of these cities conjure images of living history.

Morgan says that this is no accident.

"These cities all value and promote their history," he says. "They do not do so because they are populated and governed by history buffs. They do it because history sells."

This unique sense of place sets the each city apart from all others, and has the direct effect of producing both private and public income through jobs, tourism, and the businesses and creative professionals needed to employ them.

"Economic development today is won and lost in the battle for young talent, as firms and businesses make location decisions first and foremost on the basis of the access they have to pools of skilled young workers," Morgan says.

Morgan says that the good news is that Cincinnati is rich with the kind of vibrant, eclectic urban neighborhoods that these young professionals crave; The bad news is that the Brookings Institution has found that the City is lagging behind its peers in leveraging these assets.

"We appear to be destroying our most critical assets faster than we can develop them," he says.

Morgan says that historic preservation, the reduction of urban blight, stimulating the economy, and creating sustainable neighborhoods are not mutually exclusive goals.

"We simply need to commit to leveraging the economic value of historic preservation and start understanding that bulldozers are not always the best answer to remedying blight," he says.

Previous reading on BC:
Group petitioning council to stop Over-the-Rhine demolitions (6/10/09)

Agenda 360 announces council to implement regional action plan

Agenda 360, a strategic regional action plan, has appointed a new team of leaders to help implement the plan it released in February that calls for the addition of 150,000 young professionals to the region's workforce, the addition of 200,000 net new jobs, and the elevation of all households to an income at a minimum of 250 percent above the federal poverty level by the year 2020.

Council 360, created out of a diverse group of civic, business and educational professionals, will be charged with setting annual goals for Agenda 360's priorities and strategies, tracking and communicating progress, engaging in community-wide participation, and maintaining the plan's direction and momentum.

Council leaders will serve on committees focusing on the six Agenda 360 priority areas.

These leaders include:

Each of these leaders soon will begin recruiting others to join their teams.

"The selection process involved looking at those leaders region wide that represent key stakeholder groups who need to be involved in the further implementation of the work and/or subject matter experts that can effectively deliver alignment and momentum for the strategies across the region," says Myrita Craig, executive director of Agenda 360.

Kevin Ghassomian, attorney with Greenbaum Doll & McDonald PLLC, and Mary Stagaman, associate vice president at the University of Cincinnati, will serve as co-chairs of the council.

Yet to be announced are a Board of Overseers that will provide executive leadership to Council 360 and a Citizens Advisory Committee that will give support and feedback through community engagement and the spread of civic pride.

A Council 360 orientation session will be held August 19, followed by the definition of performance metrics in each priority area.

"Since it is a 12-year plan, we wanted to be very thoughtful about putting together a framework that would be inclusive, effective and sustainable," Craig says.

Since launching, Agenda 360 has presented to over 40 community organizations, kicked off its Transformational Dialogue series, and funded conversations and dialogue to determine how best to launch the plan, Craig says.

Previous reading on BC:
Agenda 360 named finalist for national award (7/13/09)
Agenda 360 in OTR tonight (2/7/08)

Preferred alternative for Harrison Avenue reconstruction presented

A preferred alternative for the reconstruction of Harrison Avenue through South Fairmount and Westwood was presented at a public open house at Midway Elementary School on Thursday.

The $6.8 million project will include the building of consistent lane widths, intersection improvements, the addition of left-turn lanes, the smoothing of sharp curves, and signal operation changes along the four miles of roadway .

According to studies by the Department of Transportation and Engineering, the accident rate on the stretch of roadway is nearly twice the City average, with some locations, such as the S-curve between White and Biegler streets, approaching a rate of nearly five times the City average.

Andrea Henderson, project manager for the City of Cincinnati, says that the selection of a preferred alternative design was based on comments received from the City and community members since the last community input session, held last November.

"Of course we'll still take comments and are still asking for suggestions and further comments," Henderson says.

The preferred alternatives are available for viewing and comment on the .

Henderson also says that the project remains on schedule.

"Even though the design schedule has changed slightly we still anticipate construction in 2012," she says.

In May, Cincinnati City Council approved an ordinance allowing the City to enter into a local public agency agreement with the --> --> -->, making $5.44 in federal Surface Transportation Program funds available.

The remaining local match will come from Department of Transportation and Engineering capital budget accounts, Ohio Public Works Commission funding, and Hamilton County Municipal Road funds.

Previous reading on BC:
Cincinnati on board with Harrison Avenue safety improvements (5/27/09)
Harrison Avenue improvements could begin in 2012 (4/9/09)

Wrecking Cincinnati, 7/21/09


Three-family
DOB: 1890
Died: May 2009
Cause of death: A missing roof, broken and missing windows, and falling bricks. The City ordered the building vacant in June 2008.

The building was razed by the neighboring property owner, who purchased the property in February for $50,300.

Remembering Cincinnati, 7/21/09

One year ago:

Monday, July 20, 2009

Center for Great Neighborhoods wins $10K green building grant

The --> --> -->Center for Great Neighborhoods of Covington --> --> --> (CGN) has been awarded a $10,000 grant by the Home Depot Foundation and Local Initiatives Support Corporation (LISC) to improve energy efficiency in Covington's single-family houses, rental units, and office space.

CGN will use the grant to hire a green building consultant, who will assess properties in predevelopment, make recommendations on energy-efficient materials, oversee construction, and evaluate completed projects.

At Seneca Place in the City's Austinburg neighborhood, CGN has built four modular houses that have achieved 5-star Energy Star ratings, and one of the houses is pursuing LEED Gold certification.

However, the majority of CGN's projects involve the rehabilitation of century-old buildings in areas in and around the city's Arts District, making the implementation of green building techniques much more difficult.

"The Cincinnati area has some of the oldest housing stock in the nation, and this grant provides an important opportunity to renovate older houses in a way that makes energy efficient and sustainable," said Kathy Schwab, executive director of LISC of Greater Cincinnati and Northern Kentucky. "Homeowners and residents will benefit, as will Covington and the entire region by the lessons learned from these projects."

CGN is the third Greater Cincinnati area community development corporation to win a Home Depot Foundation grant this year.

In April, Price Hill Will and Cincinnati Northside Community Urban Redevelopment Corporation each won $10,000 grants to promote green redevelopment and urban greenspace.

Since 2002, the Home Depot Foundation has granted nearly $30 million to non-profit organizations to aid in the development of more than 40,000 affordable, healthy homes. Since 1980, LISC has raised more than $7.8 billion to build or rehab nearly 215,000 affordable homes and to develop 30 million square feet of retail, community, and educational space nationwide.

Photo of 308 W Robbins Street courtesy of the Center for Great Neighborhoods of Covington.

Previous reading on BC:
LISC wins funding, AmeriCorps to begin work here in September (7/7/09)
Covington's newest pocket park features tributes to artist Farny (7/1/09)
Covington Quest offers prizes and fun, helps build communities (6/15/09)
City kicks off National Homeownership Month in Northside (6/8/09)
Inside Seneca Place (8/1/08)

Krohn closes today, re-opens in six weeks

Following the hugely popular "Butterflies of India" event, Krohn Conservatory is closing temporarily to make some much-needed improvements.

While the main reason for the closure is the collapse of the original 1933 main sewer system in front of the building, the closure will also give the facility the opportunity to demolish and rebuild the Show House, including the installation of new flooring and its original exits; and to construct a catwalk in the Fern House to allow for maintenance of its mist watering system.

Krohn Conservatory will re-open on August 29.

The surrounding gardens will remain open during the $200,000 reconstruction project.

Previous reading on BC:
Krohn Conservatory and the Butterfly Show (6/30/08)

Inside Roosevelt School

Roosevelt School, at in South Fairmount, was open to the public on June 8 prior to a June 9 public auction by Cincinnati Public Schools (CPS) and Higgenbotham Auctioneers International, LTD, Inc.

Built in 1925 in the Jacobethan and Neo-Classical Revival styles by Fechheimer and Ihorst, the 24,300-square-foot building has been vacant for several years.

Riverside Academy superintendent Roger Conners and his wife Debra submitted the winning bid of $30,000, which was immediately accepted by the CPS board.

The school is a non-conforming use in a SF-2 Single-Family Residential zone, but no plans have been announced for the property.

A four-classroom, 5,100-square-foot structure at , built in 1964, was also part of the sale.

Of the three schools I toured, this one was in the worst condition, by far. While the outside is much more interesting than the inside, the interior does feature some interesting 1920s stenciling, wood trim and a fantastic wood-clad gymnasium/auditorium, and transom windows.

There are 50 photos in this slideshow.

Hover over the slideshow to bring up the controls. You may stop the slideshow by clicking on the square "stop" button, allowing you to scroll through the photos at your own leisure. To get a better view, click on each image to enlarge to 640 x 480. Photos will open in a new browser window.

Wrecking Cincinnati, 7/20/09


Single-family
DOB: 1925
Died: April 2009
Cause of death: A large hole in the roof, vagrancy and drug activity.

Deeded to Shriner's Hospitals for Children, headquartered in Tampa, FL, in May 2008. The house had been vacant since at least 2006.

The City ordered the house vacant in August 2008. It was demolished privately.

Remembering Cincinnati, 7/20/09

Two years ago:

  • The Hamilton County Regional Planning Commission approved Anderson Township's Clough Pike Business District Redevelopment Plan.

Wednesday, July 15, 2009

Interactive OKI bike route guide now online

Previously only available in printed form and as a static online PDF, the Ohio-Kentucky-Indiana Regional Council of Governments (OKI) 2009 Cincinnati Bike Route Guide is now available in an interactive online map.

Prepared by OKI with assistance from the City of Cincinnati Department of Transportation and Engineering, Bike/PAC, the Cincinnati Cycle Club, and other area bicyclists, the map covers most of Hamilton County in Ohio and the northern parts of Boone, Kenton and Campbell counties in Kentucky.

Like its print counterpart, the map includes preferred routes, bicycle lanes, hills, and bicycle racks.

Users can also toggle between various maps and aerials, and a drawing tool allows cyclists to customize and print their own maps.

Print copies are still available by contacting Don Burrell at .

Previous reading on BC:
Initiatives serve to improve Cincinnati's environment (6/9/09)
Dohoney: Spring Grove bike lanes need more study (5/14/09)
OKI bike plan updates, Cincinnati's moving forward (5/5/09)
Cyclists to advocate for safety, input (10/22/08)

Inside Heberle School

Heberle School, at in the West End, was open to the public on June 8 prior to a June 9 public auction by Cincinnati Public Schools (CPS) and Higgenbotham Auctioneers International, LTD, Inc.

Built in 1929 in the Collegiate Tudor style, the 93,500-square-foot building has been vacant since the 2006-2007 school year.

Carolyn Scheve, an interior designer who would like to open an outreach center for artists and community children, submitted a high bid of $35,000, which was among six bids rejected by the CPS board for being too low.

On Monday, two of those six rejected bids – Swifton School in Bond Hill and Windsor School in Walnut Hills – were settled and approved by the board.

The parcel on which the school sits is zoned RM-0.7 Residential Multi-Family.

Of special note are the gymnasium/auditorium, the cafeteria, the library, and the rooftop, which was shot through a tiny window on the top floor.

There are 55 photos in this slideshow.

Hover over the slideshow to bring up the controls. You may stop the slideshow by clicking on the square "stop" button, allowing you to scroll through the photos at your own leisure. To get a better view, click on each image to enlarge to 640 x 480. Photos will open in a new browser window.

Wrecking Cincinnati, 7/15/09


Residence used as office/warehouse
DOB: ???
Died: April 2009
Cause of death: Owned by Holtmeier Plumbing Co., Inc., it was likely demolished to expand the company's parking. There were no building code violations.

Remembering Cincinnati, 7/15/09

One year ago:


* Hover over the slideshow to bring up the controls. You may stop the slideshow by clicking on the square "stop" button, allowing you to scroll through the photos at your own leisure. To get a better view, click on each image to enlarge to 800 x 600. Photos will open in a new browser window.

Tuesday, July 14, 2009

Can $1.7M save Sedamsville?

The core of the Sedamsville neighborhood consists of three streets – – nestled in a valley between Embshoff Woods Nature Preserve and Mount Echo Park.

Recent estimates are that 278 people call the area home.

"It's just a place to live, and you drive away to get someplace," says John Klosterman, who over the last 20 years has been rehabilitating neighborhood buildings for mostly low-income tenants.

Of the 149 houses in the core area, 65 are for sale, in foreclosure, or condemned.

"Nobody ever goes down to Sedamsville," Klosterman says. "Not unless they get detoured up Delhi. And it looks pretty grungy, so you want to get through it as quickly as possible. You might get shot. But it's the lowest crime rate in the City of Cincinnati. And people don't realize that."


A 'New Sedamsville'

In March, a 42-page "New Sedamsville" business plan, written by business partner Jim Grawe, called for an investment in neighborhood infrastructure, a zoning overlay, and $1.7 million in gap financing.

According to the plan, the financial backing could give Klosterman and Grawe the ability to buy out the remainder of the available properties, giving them control of nearly 75 percent of the neighborhood.

It's the culmination of Klosterman's 20-year vision, and he estimates that they could transform Sedamsville by tearing down 25 blighted properties, rehabilitating 101 properties, and building 78 new housing units.

"Geographically, it's the smallest community, and there's no other encroaching neighborhoods," he says. "It's got the right things wrong with it, so it's amazing how it hasn't caught on."


Build around musicians

"What we'd like to promote is a music community, if you will," Klosterman says. "A music colony. That was Jim's brainstorm."

"What we're considering doing is marketing the core area of Sedamsville as a musician's colony," Grawe says. "Just to get a higher-quality, creative-type person here who maybe doesn't have a lot of money."

With an abundance of available large buildings, Grawe sees plenty of opportunities to make that happen.

"We thought of just clearing out a building and letting musicians just play there," Grawe says. "And we could make it a private club – you don't need a liquor license for a private club – bring your own whatever, and just hang out with lots of entertaining musicians."

But Klosterman says that it's a tough sell because Sedamsville lacks bars, restaurants, grocery stores, and other amenities.

"So we have to create all that," he says.

While the neighborhood used to have a grocery store, bakery, and other commercial enterprises, a drop in population made the storefronts no longer viable.

Today, only three commercial businesses are based in the community – a T-shirt factory, a lawn service business, and the Firehouse Nursery.

Klosterman says that he can envision new tenants for some of the surviving storefronts along Delhi Avenue.

"What we would like to do later on is make that a little bar area," he says, pointing to one of the neighborhood's turn-of-the-century buildings. "We could cook food and hamburgers and stuff like that downstairs, bring it up the steps inside. Just a little, small...kind of like Zip's in Hyde Park."

Other ideas include a bakery and coffee shop, an ice cream shop, a pizzeria, or a catering operation.

"All Sedamsville needs is one bar, one good restaurant," Klosterman says. "I will literally give the space away for a year, for free, in any of those places to put a business in there just to get some activity going."

But they aren't even sure if current zoning would support the idea.

"We spoke with Economic Development, and we want an overlay zoning – a mixed-use zoning," Grawe says. "I know they're talking about form-based zoning or smart code zoning or that kind of thing. That's one of the concessions we'd like to have from the City. We're selling a lifestyle here, and if we could attract those kinds of people, that's what it's going to take."

Grawe says that's how the neighborhood was zoned initially.

"The zoning laws changed over the years," Grawe says. "Now, they're reverting back to that."


A creative surge

The same idea would be applied to the many vacant residential properties, where Klosterman says he'd be willing to charge just enough rent to allow him to pay the mortgages.

"I've got enough properties that I would give away space in apartments," he says. "We could rent that for a trade-off of a musician playing Saturday night with his band, you get the place for free. I don't care. We have to have some income from some of these places, but a couple hundred bucks for a musician for one bedroom and a little practice area...some of them are 600 or 700 square feet, a nice size."

The hope is that a surge of creative residents will help brand the neighborhood as a cool, welcoming, underground place.

"It can become trendy for any reason," Grawe says. "But once it's perceived as trendy by the right class of people, then they come in and they start doing it. I think the business plan speaks to that, and hopefully lays the foundation for that."

"And at least you've narrowed it down to one community, a musician's community, where they'll feel accepted going there," Klosterman says. "Where if they're playing their music on their porch, you're surrounding by people who either like to entertain or like to be entertained."


'I'm not the problem, I'm part of the solution'

"If we were in it for the money, we would have never done it," Klosterman says. "It's amazing how 20 years flies by."

Klosterman purchases many of his properties through sheriff's sales – one, condemned by the City, was bought for $20 plus $500 in board-up fees. Another was picked up recently for $1,800.

"Stuff is so very reasonable here," he says. "But it's just the maintenance issues to keep up with all of this stuff while we wait to launch."

Because 70 percent of the neighborhood's buildings were constructed before 1937 and have recently been held by slumlords or low-income tenants, many have severe maintenance issues.

"So you've got a lot of work that these people didn't do, which makes them in such poor condition when I get them," Klosterman says. "But they're historically viable as the fabric of the community holds together to re-do. But it takes talent, it takes money, and it takes patience. Of which the City has none."

Due to a limited amount of funds, Klosterman generally rehabs only one or two properties at a time.

"It's all I can do," he says. "I'm only one person, and I'm the only developer in Sedamsville. The rest of them are slumlords. I'm one of the very few landlords that gives a shit about their properties."

But he says that it's becoming emotionally and economically draining.

"It's getting old," Klosterman says. "And the City, it's not that they're badgering me, but they are. Every time I buy a building, it's like, 'Well, you have to have a vacant building maintenance license, the thing's condemned, we're gonna haul you into housing court.' People see me around here nicely dressed on a Friday and they're like, 'Oh, you've been to housing court.'"

Klosterman just wants the City to buy in to the business plan; In 20 years, he has never received so much as a phone call from the City, he says.

"So, either I have to get full understanding by the City to just leave me alone – I'm not the problem, I'm part of the solution," he says. "It really gets so frustrating working with the City, you just cannot believe it. I mean, they're just not understanding. I'm trying to save one of the oldest communities in the City of Cincinnati."


Repurposing an icon

The spire of Our Lady of Perpetual Help Church towers over Sedamsville, its peeling paint belying the possibilities that the building holds.

In 1995, fearing that the iconic structure might be razed, Klosterman purchased the church from the Archdiocese of Cincinnati.

Code violation orders against Klosterman for the property were recently dropped, but the building still needs some work.

He's now working through Department of Community Development director Michael Cervay's office to attract City funding for stabilization, and he says that the City has indicated that it's in no hurry to tear the church down.


"Which is counterproductive to doing something with it," Klosterman says. "So, why don't you give us some money – $30,000 to $40,000 – to re-do the box gutters and fix the bricks. Oh, and now they stole the downspouts because they found it they were copper, just two weeks ago. And I just take a deep breath and keep going, because what else can you do?"

Grawe says they would be willing to "give" the church to somebody who would redevelop the property "in a manner that would complement the business plan".

"We need to find somebody who wants to take advantage of an opportunity – and profit from it himself – to invest in the church, to develop it into something that's the center of a progressive community," Grawe says. "We're thinking about a music venue. I think a music venue would be pretty damn cool."

"But they have to keep the stained glass windows, they can't sell any of the architectural elements," Klosterman says. "It's a small church, but it's not a tremendously high-maintenance thing. The steeple's the biggest thing – it needs to be painted and all that stuff."


A new center

The plan from the City calls for a "center of town", and Klosterman and Grawe believe it should be located on the hillside behind the old Sedamsville School, between Steiner and Delhi avenues.

"We think this is where it needs to be, right in back of the school," Grawe says.

Klosterman owns the school, which currently houses apartments, via land contract.

A few weeks ago, kids kicked in the windows and stole copper from four apartments, causing between $20,000 and $25,000 in damage.

"The City doesn't care," Klosterman says. "That's the price you pay for doing development in the City of Cincinnati."

Eventually, Klosterman and Grawe would like to see the creation of a two-terraced hillside, with a performance space on the top terrace.

A majority of the old oak trees would be kept, and spaces would be created for people to sit and gather.

The school could be converted for community use.

"We talked to Economic Development the other day and made that proposal and said, 'Look, it's your suggestion that this is what you need, why don't you invest some public dollars in the public realm so that we can, it turn, attract some private investment,'" Klosterman says. "'We'll donate the property to you in order to do that.' And they said, 'Well, how much is it going to cost?' So they always want someone else to do their work for them, you know?"


Generating interest

So far, developer interest has been spotty at best.

"Arn Bortz toured this area and was very intrigued," Klosterman says. "Model Management has been down here as well. Both agreed that we could put houses on both sides [from Delhi Avenue to Sedam Street]. The views...can you imagine the views out the back yard with a deck to the Embshoff Park Preserve?"

Klosterman also has an option for 3/4 of an acre on the hillside across Fairbanks Avenue, where he'd like to build a small cottage settlement.

"We've talked to Embshoff Park Preserve, and they've said that they'd put horse trails in," Klosterman says. "And we could put fences in and have horse crossings going across Fairbanks and over into Sedamsville, and just give it a real nice feel of – it's an exclusive area."

But while they're eager to get the word out, both Klosterman and Grawe are aware of what can happen when word gets out too fast.

"It's kind of a Catch-22," Grawe says. "You don't want to make it too public for fear that investors are going to come down here and speculate and drive the price up, at the same time you've got to get the word out to the people that can make it happen and can profit from it as well."


West Riverside Drive?

Sedamsville is a little-known neighborhood, but there are differing opinions of why – a lack of resources, its relative poverty, its lack of government representation.

"You've got people going over to the East Side buying stuff on what is now called 'Riverside Drive,'" Klosterman says. "Well, we don't have the leadership here, as we spoke to in the business plan. But there's no reason why we can't call this 'West Riverside Drive' instead of River Road. Just those image things that they did over there, well, why can't we do it over here? Because nobody's asked."

To Klosterman, this problem exists for all of the West Side neighborhoods.

"The Kroger up on Warsaw is the best thing they've done in 20, 30 years over there," Klosterman says. "But the eastern side of town, Hyde Park, boy they'll put new lights in and new sidewalks...Mount Adams...they've got the tax base up there. Well, they could have the tax base here, as well. But it's going to take 15 years to start to get it back because of the tax abatement."

He also believes that the City's being short-sighted by even considering the Queensgate Terminals container-to-barge operation that's been proposed for Lower Price Hill's riverfront, and he's not buying the promise that millions in tariff revenues will be channeled into the West Side neighborhoods.

Instead, he believes that money will go into the general fund and end up financing more beautification projects in Hyde Park, Mount Lookout, and Oakley.

"We almost have to stop that before we even start working on Sedamsville," Klosterman says. "I mean, who wants to drive past that, as eco-friendly and green as they say it's going to be?"


More cheerleaders needed

"Where can I get some money?" Klosterman says. "We'll pay it back, we promise. I mean, $1.7 million is chump change. And I would leverage all of my properties to get it if I knew a bank that would give it to me."

Klosterman says that he and Grawe are urban planners, but, not being politicians, they're not entirely sure where to go next.

And both believe that one possible source, the City of Cincinnati, is being evasive in assisting with their proposal.

"At least you'd like them to say, 'Hey, it's a great idea and I support you,'" Grawe says. "You need cheerleaders within the City, and there are none. All they're trying to do is get their paycheck and do the least amount of work possible, it seems like."

"The cheerleading is helpful," Klosterman says. "But it would be so much nicer to have the fun of redeveloping, because that's what we do. We do historic rehab, and it's just so delightful to see buildings come back that are, if you would have seen them before, you just wouldn't believe it."

Grawe sometimes wonders why the City even has an Economic Development Department.

"I'm sitting here talking to the head of Economic Development for God's sake, and you're asking me to come up with a figure on what it costs to put a parking lot in?" Grawe says. "Give me a damn break! You're the one who said we need parking down here, you're the one who came up with the plan – the City – my tax dollars helped pay for the plan, and now you turn around and you're asking me to come up with the numbers? Isn't there someone in this City who can look at a vacant piece of property and tell me what it costs to tear down some buildings and pave it?"

They have also been told to have a private developer price the project out, with no guarantee of winning the contract.

"And you're asking me to have a private developer do that?" Grawe says. "What is his incentive to do that for me? Is he going to get the job if, in fact, it's in the budget that gets passed? Are you going to honor him with the contract, then, for doing the work? I mean, how difficult can you make it for a guy?"

Klosterman says that some very preliminary estimates from "people in the know" indicate that implementation of the business plan could result in a $55 million project that could more than double the area's population to 579.

"That's a chunk of change," Klosterman says. "For economic activity, materials at Lowe's and Home Depot, and all the grocery stores and restaurants in this area, to say nothing of what it employs. But you've got to have somebody to jumpstart the damn thing."

In the meantime, Klosterman and Grawe will continue to meet with the City, and with possible project funders.

"We need to move population back from the suburbs," Klosterman says. "What better place than Sedamsville?"

Previous reading on BC:
Sedamsville fighting for another church; New business plan proposes 'New Sedamsville' (3/24/09)
St. Martin's German Evangelical Church, 1892-2008
Demolition begins on historic Sedamsville church (10/2/08)
Centerpiece of historic Sedamsville threatened (8/22/08)
City has little say in Sedamsville demolitions (5/14/08)

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