Development beyond the basin

Exciting news: Hamilton County is growing! The population of the City of Cincinnati, the largest municipality in the county, grew 4.1% from the 2010 to the 2020 census. The county population outside of Cincinnati grew 3.1% in the same period, reversing a decades long decline. This is good news for municipalities (more people = more tax base), businesses (more people = more consumers/employees), and design professionals (more people need more places to live, work, and play). Neighborhoods, townships, villages, and cities are building new commercial, residential, and mixed-use projects to accommodate, and attract, new residents.

Communities Directing Development
Cincinnati neighborhoods outside the urban core, including Pleasant Ridge, Madisonville, and College Hill, and inner-ring suburban municipalities like Silverton and Blue Ash, as well as  Deerfield Township, are pursuing growth to address their unique community needs. The process for collecting and implementing community input on a project typically occurs based on the requirements of the municipality (e.g. a community benefits agreement) or at the request of the developer.

“Every community has a different process, but at the end of the day developers want a level of buy in from the neighborhood or community council,” said Seth Oakley, AIA, of MA Design. “Even though it might not be required, it’s desired; that endorsement is important and can help projects move forward.”

In some neighborhoods, community development corporations (CDC) are tasked with leading both community and development efforts. The College Hill Community Urban Redevelopment Corporation (College Hill CURC), for example, focuses on the Hamilton Avenue Business District.

“College Hill CURC’s engagement efforts start at the board level by including representatives from specific groups like the residents’ forum and business association,” said Ross Battoclette, AIA with Champlin Architecture and College Hill CURC Advisory Board member. “They bring information from their organizations to the board and take College Hill CURC info back to their constituents. Feedback from neighborhood residents is also sought for planning and on specific projects. For example, the College Hill Station project included monthly community meetings to talk about the design and materials of the building.”

Ownership of land, by a CDC, municipality, or land bank, can also shape the conversation about community needs and developer accountability.

Reztark Design StudioBlue Ash wanted to control what was developed in their downtown and purchased two key acres as part of their strategic plan.“When Blue Ash developed a downtown strategy in 2020, the first priority was strengthening the quality of place by encouraging a diversity of uses,” said Dean Lutton, AIA with Reztark Design Studio. “The city wanted to control what was developed in their downtown and purchased two key acres as part of their strategic plan. For The Blue, the developer used market research and the downtown plan to identify the uses for the project that would draw people to the neighborhood and support the residents’ sense of community. In coordination with the city, the uses coalesced into a synergistic project.”

One of the challenges for small developers is the up-front costs of acquiring property then paying taxes on it through the lengthy design, permitting, and construction process, in addition to managing the construction costs. It may not be feasible to have so many assets tied up when projects can take years from start to finish. Community control of the land can encourage new development by reducing risk for the developer.

“College Hill CURC recently released a request for proposal for College Station III,” said Battoclette. “Because College Hill CURC owns the property, they are paying all of the holding costs until a developer is brought on board.”

Planned development projects requiring new infrastructure (i.e. roads and utilities) are especially impactful on a community. Advance coordination with permitting bodies can facilitate the process for a large project.

“Big projects are complicated so it’s good to meet early with all the stakeholders,” said Michael Stehlin, AIA, Chief Building Official for Hamilton County. “The building department will, on request, organize pre-development meetings to review a developer’s plans. We gather representatives from the township, Metropolitan Sewer District, Greater Cincinnati Water Works, flood and storm water officials, and the fire officials to review the plans and identify any issues.”

Where to Build
For communities cultivating growth, stakeholder engagement and thoughtful development processes aren’t always enough, they also need adequate land to support new development.

“Developers in the 1950s and 60s were looking for nice flat land for their projects,” said Stehlin. “There’s nothing flat left. What we’re seeing is developers making it work in the leftover land, like hilltops or hillsides. We’re also seeing developers trying to squeeze more in on the land that’s left, like smaller townhomes on smaller lots.”

Developers and municipalities are also watching for vacant or underutilized land that could be redeveloped to provide increased tax revenue, services, and population for a community.

“In Silverton, the ah-ha moment for them was the tax base,” said Oakley. “The AG47 project provided a significant increase to the city’s tax income. Projected tax from office construction or other projects doesn’t even come close if you look at the square foot cost. And, as more people work from home, more residential units can keep payroll tax revenue in the community.”

Communities are identifying underutilized sites as opportunities for new developments, from vacant shopping malls and factories to brownfield sites. Many large, planned developments can take a decade to complete as each new phase relies on the success of the previous phase. Occasionally those plans are adjusted to meet the changing needs of the marketplace.

“The planned development for the old Oakley Drive-In Theater site included senior living, offices, and dog spa but when the 2008 recession hit, the office piece was dropped,” said Lutton. “For The RED, a major modification to the planned development was required to shift to multifamily. Now the last parcel, which is closest to Red Bank Road, is ready for development, the owner will be exploring retail and restaurant uses that fit the Madisonville community. A diversity of uses can work in a planned development.”

Reztark Design StudioFor The RED, a major modification to the planned development was required to shift to multifamily. While a recession seems an obvious reason to reconsider development plans, social and cultural trends also impact development. The growth of online shopping and the COVID shift in workplace needs are causing communities and developers to reevaluate existing resources and future plans.

“We’re seeing new apartment buildings replacing strip centers in Anderson, Delhi, and other townships,” said Stehlin. “It’s a step forward and better use for too-large parking lots. With the shrinking of retail, we will see more and more of those areas developed into housing.”

In Deerfield Township, a parcel of farmland surrounded by retail was not the best use for the property. While converting greenfield sites to buildings is fraught as no one wants to lose more greenspace, in certain contexts it supports the greater good. The expense of converting a property (creating roads, bringing in utilities, etc.) is recovered in the increased tax revenue that also supports future maintenance.

“The District at Deerfield project started with a medical office building, then a multifamily parcel was developed, and finally a vertical mixed-use parcel which is now under construction,” said Lutton. “Soon they will have a downtown square for concerts and community gatherings, filling the community’s desire to have a ‘center of gravity’ for the township, and differentiate themselves.”

Regaining local ownership of community assets is also important to future development. CDCs leverage the success of their previous developments to purchase new buildings or land for future projects and repeat the cycle. For the properties they own, CDCs recruit tenants that will be a fit for the community.

“Control of the properties has been a big driver for College Hill CURC,” said Battoclette. “Our most recent acquisition from an out of state developer is the College Hill Plaza, one of the last large properties in the business district. Another reason why College Hill has seen success over the years is that some of the business owners live in College Hill or have a strong connection to the neighborhood. They’re committed to the success of the community because they are part of it.”

If you build it, will they come?
For communities interested in growth, attracting developers and residents requires a mix of incentives and amenities. Projects only succeed if they’re meeting a need in the marketplace, and commercial tenants need a base of residents to support businesses. It can present a chicken/egg situation for community leaders.

“For the most part, the residential is the driver of business,” said Oakley. “The mixed-use projects with retail space on the first floor are counting on the residents coming in then the retail follows. But a development like Liberty Center, or Easton in Columbus, destination retail is the driver and residential is added afterwards.”

The uncertainty about whether to move forward first with residential or commercial can present challenges for communities, which is why having a long-term strategy is important.

“Each community has different levels of comfort with residential mixed-use projects, some understand it as a vital component,” said Lutton. “Cincinnati has a history of streetcar suburbs with town squares where the streetcar stopped surrounded by buildings with retail on the ground floor and residential above. Many of these mixed-use projects harken back to these small village/neighborhood centers. In addition to looking at what the future residents want, it’s important to look at the existing neighborhood around it. Is there a restaurant nearby? If not, is there an opportunity to provide that on-site? Is there a 24-hour gym in the neighborhood? If so, there might not need to be a fitness center in the rental community.”

Existing community assets can also prompt more development. The region around Summit Park in Blue Ash has seen mixed-use and residential construction with more on the way. A similar pattern occurs around the county.

“In Sycamore Township, across from Kenwood Mall we’re seeing a lot of development of large apartment buildings,” said Stehlin. “Sycamore Township is not geographically big, but a lot of development is happening there because of the mall and offices. The projects aren’t all mixed-use but end up working that way because of their proximity to each other.”

Market research is critical to development. Before construction can begin, the financial aspects of a project – the costs, financing, and future revenue – have to add up. State government and municipalities typically use incentives to help those projects “pencil out” and attract development: Tax Increment Financing (TIF), Historic Tax Credits, or tax abatements are commonly used mechanisms. Muncipalities may leverage other tools to encourage development such as reducing parking requirements and form-based code.

“Transit oriented zoning is allowing more projects to happen by relaxing the parking requirements,” said Oakley. “Parking takes space which means less units, less density, less people and less income. But there is also a risk when you don’t provide parking; some people expect, need, and want parking. Developers know that and choose who they’re building for, so projects will likely provide some parking, but maybe not to the level required before.”

Developers and municipalities often work together, or in tandem, to ensure projects are attractive to businesses and residents.

“The street calming efforts taking Hamilton Avenue and North Bend down to two lanes has slowed down drivers and made a significant impact on the walkability of the outskirts of the College Hill business district,” said Battoclette. “We have very low commercial vacancies but there is a worry about saturation: if we don’t create more residential units with the density, can we keep building business spaces and be able to support them?”

Walkability is either the trend or the brand of the moment. More people are renting than ever before, and fewer young adults are owning cars. As market demand changes, so do communities. Employment centers, like central business districts, become denser, but so do outer neighborhoods and suburban cities as they revive neighborhood business districts and town centers. Parking and cars aren’t going away, but as people have more choices over where to live, and remote work, places like College Hill, Silverton, and Deerfield Township are leveraging the appeal of being ‘alive after five’ to encourage growth of their residents and businesses and secure the future of their communities.
 
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Read more articles by Julie Carpenter.

Julie Carpenter has a background in cultural heritage tourism, museums, and nonprofit organizations. She's the Executive Director of AIA Cincinnati.