The Redevelopment Authority presented our urban revitalization work at the Council of Development Finance Agencies Urban Finance Forum in Cleveland on June 7, 2018.

1. HOW CINCINNATI ADDRESSES
URBAN REVITALIZATION
June 7, 2018
Todd Castellini, Vice President of Public Finance
Melissa Johnson, Vice President of Industrial Development
Darin Hall, Executive Vice President
Robert Sanders, Director of Commercial Development
Gail Paul,Vice President of Communication Strategy

2. BOARD CHAIR VICE CHAIR
Charles J.
Luken
Manuel M.
Chavez III
Dr. Pradeep K.
Bekal, MD,
FACG
Sister Sally
Duffy, SC
Robert W.
Fisher
Damon D.
Jones
Mario J.
San Marco
David O.
Smith
Shane M.
Wright
Greater Cincinnati Redevelopment Authority
BOARD OF DIRECTORS
The Greater Cincinnati
Redevelopment Authority is a public
agency that collaborates with dozens
of economic development, community
and corporate partners, and
foundations. It is governed by a
volunteer Board of Directors; half
appointed by the City and half by the
County. Board member appointees
represent a broad mix of business
expertise including development,
design, finance, and marketing. Our
board brings a wealth of expertise and
knowledge, as well as sensitivity to
business needs and market forces in
the region. Patricia Mann
Smitson

3. OUR ROLE IN ECONOMIC DEVELOPMENT
 Combine public and private goals in innovative ways to leverage the strengths of both to work on our
community’s toughest challenges
 Acquire & reposition real estate – both neighborhood & industrial properties – to restore productive assets
and value to the community
 Execute highly specialized real estate transactions and deliver development finance programs with
integrity and precision
 Understand the unique needs and concerns of individual communities
 Partner with communities, non-profits, developers, companies, and other economic
development organizations
3
GREATER CINCINNATI REDEVELOPMENT AUTHORITY

4. Public
Finance
Industrial
Revitalization
OVERVIEW OF GCRA
THREE PRONGED STRATEGY
Neighborhood
Revitalization
4

5. 5

6. INDUSTRIAL
REVITALIZATION
Melissa Johnson, Vice President of Industrial Development

7. 7
WHY WE CARE
100,000
Manufacturing jobs lost
since 1969 in Hamilton
County
1.5
Additional jobs supported
by each new
manufacturing job
50%
Of manufacturing jobs
don’t require a college
education
$65,000
Average annual salary for
manufacturing positions

8. • Industrial land use requires less municipal support services and is
a higher contributor of revenue back to the municipality than any
other land use
• Manufacturers generally own their own real estate and relocate
less often
• Increasing interest from manufacturers in the urban environment
• Manufacturing provides a path to middle class
WHY WE CARE
8

9. PEOPLE EMPLOYED IN
MANUFACTURING
MANUFACTURING
EARNINGS
44%
DECLINE
67%
DECLINE
MADE IN HAMILTON COUNTY STUDY

10. MANUFACTURING ATTRACTIVENESS STUDY
 Cincinnati has an advantage in the presence of
industrial engineers, machinist and tool/die makers
 Cincinnati currently lacks suitable real estate
options
 Cincinnati has an attractive supply of key
manufacturing skill sets and low/average cost in
several talent segments
$90,970
AVERAGE ANNUAL SALARY
INDUSTRIAL ENGINEERS
2.13
LOCATION QUOTIENT

11. 54PROSPECT INQUIRIES
63%LAND INQUIRIES FOR AT LEAST
20 ACRES
DEMAND FOR INVENTORY
32 22
LANDBUILDING
18,000+ JOBS

12. 500 = 8,000 = 565 MILLION.
12
OUR STRATEGY
Five hundred acres = 8,000 new jobs = $565
million in new tax revenue.

13. 13
PUBLIC OWNERSHIP DE-RISKS SITES
DUE DILIGENCE
COMPLETED
EXISTING STRUCTURES
REMOVED
PROPER ZONING &
APPROVALS ATTAINED
PUBLIC OWNERSHIP
INFRASTRUCTURE IN
PLACE
SITEWORK COMPLETED

14. 14
2100 SECTION ROAD
56 ACRES

15. 5 year note
Accredited Investors only
Use of Proceeds - Capital Projects
Pooled Mortgage Security
Interest - 15 bps / year, taxable, payable at maturity
(Non-tax revenue pledge)
KEY TERMS OF PATIENT CAPITAL FUND
15

16. PATIENT CAPITALFUND INVESTORS
16

17. 17

18. 18
1
Define and agree on a common
vision with clearly defined roles and
commitments across manufacturing
ecosystem partners
2
Shared dedication of “highest and
best” land use that preserves
industrial corridors and creates
family-supporting jobs
3
Expand the number of 20+ acre
shovel-ready sites to attract large
projects
4
Bring a variety of manufacturing site
sizes to market
5
Engage land banking/fund public
ownership & stewardship of industrial
land
6
Leverage and secure future
redevelopment funding
JOBS MADE HERE

19. 19
2100 Section Rd. – 56 Acres
• Amberley Village
• $13.8MM Investment
2250 Seymour Ave. – 19 Acres
• Bond Hill (Cincinnati)
• $4.2MM Investment
SHOVEL READY SITES

20. NEIGHBORHOOD
REVITALIZATION
Darin C. Hall, Executive Vice President

21. 21
MANAGED ENTITIES

22. REACH Evanston
• Infill Housing Development
• 6 new single-family homes
• 21 historic single family rehabilitation
• First home sold for $79k
• Most recent home sold for $250k
• Near the developing Evanston
business district and Walnut Hills
High School
• Started in 2014, estimated
completion Dec 2018
22
PROJECT UPDATES

23. DRAW DOWN SCHEDULE: $1MM in 2018, 7 Year Term, Option to extend by 1 year
($20,000 Fee)
INTEREST RATE: 0% Year 1; 2.31% Years 2-7 (2% over the loan life)
PRINCIPALREDUCTION: Interest payments quarterly, in arrears
Principal due at maturity
PLEDGED FUNDS:
• Limited Recourse to the Fund and Mortgaged Assets (Pledged Revenues)
• No general pledge of the Redevelopment Authority
KEY TERMS OF THE GREATER CINCINNATI
FOUNDATION LOAN/ BOND
23

24. KEY TERMS OF THE LOANS
 The goal of the Revolving Loan Fund is financing of homes under
redevelopment by the Landbank (market-rate housing) and HURC
(affordable housing).
 Loans made based upon estimated sales price of an individual house
 Repayment upon sale of each house
 2.5% interest rate (estimated)
 Secured by properties under redevelopment with mortgages filed
24

25. REACH EVANSTON– 1520 RUTH

26. REACH WALNUT HILLS– MORGAN ST.

27. NEIGHBORHOOD
REVITALIZATION:
COMMERCIAL
Robert Sanders, Director of Commercial Development

28. FOCUS AREAS
Walnut Hills
Evanston
Bond Hill
Roselawn
Price Hill
West End
28
DOWNTOWN

29. NEIGHBORHOOD BUSINESS DISTRICT PROGRAM
THESIS: Place-based redevelopment strategy to
rejuvenate neighborhood retail and commerce with a
focus on neighborhood–serving businesses, local
micro-entrepreneurs, and creative enterprises.
OUTCOMES: Jobs, amenities, street-level vitality,
safety, wealth creation
CAPITALBARRIER: Not financially feasible given
expected rents and property values and risk profiles of
local lenders.
FINANCING TOOLS: Revolving Loan Fund; grants for
program development
29

30. LOAN FUND
 Establishment of a Cincinnati Neighborhood Commercial Real Estate Loan
Fund
 Fund is seeded by a $5 million Kresge Foundation Program Related
Investment (PRI) as part of its Mixed-Income, Mixed-Use Strategy
 Investment Thesis: Neighborhood Business Districts in targeted
neighborhoods can be rejuvenated through an actively managed
combination of place-based neighborhood serving businesses, local micro-
entrepreneurs, and creative enterprises
30

31. KEY TERMS OF THE KRESGE LOAN/ BOND
DRAW DOWN SCHEDULE: $2MM in both 2017 and 2018, $1MM 2019
INTEREST RATE: 0% 2017-2018, up to 3% thereafter
Incentive to raise additional capital
PRINCIPALREDUCTION: $500,000 12/ 31/ 23
$1MM by 12/ 31/ 24 and 12/ 31/ 25
$2.5MM by 12/ 31/ 26
PLEDGED FUNDS:
• Limited Recourse to the Fund and Mortgaged Assets (Pledged Revenues)
• If Pledged Revenues are insufficient, outstanding amounts are forgiven
• No general pledge of the Redevelopment Authority

32. KEY TERMS OF THE LOANS
 The goal of the Fund is to act as a unique financial tool, not compete with commercial
banks or other local lenders
 New capital source for the Redevelopment Authority’s revitalization efforts
 Attractive source of financing to incentivize private developers
 Loan maturity of 5-7 years
 Amortization set to reach commercially bankable levels by time of sale / refinancing
 Fixed interest rates
 Subordinated debt is permissible, but capped at 50% of the portfolio

33. 33
Kresge Foundation-seeded DREAM Loan Fund:
YEAR ONE IMPACT
DEVELOPMENT TOTAL CONSTRUCTION RLF PORTION
PARAMOUNT SQUARE $8,400,000 $500,000
TREVARREN FLATS $9,300,000 $535,000
TOTAL $17,700,00 $1,035,000

34. Trevarren Flats, Walnut Hills
BEFORE
Photos courtesy: Walnut Hills Redevelopment Authority
AFTER

35. 35
Kresge Foundation-seeded DREAM Loan Fund:
YEAR ONE IMPACT (2017)

36. 36
Kresge Foundation-seeded DREAM Loan Fund:
YEAR ONE IMPACT (2017)

37. 37
BOND HILL
MAP

38. 38
TECHSOLVE II

39. TECHSOLVE II– WULCO

40. PROJECT UPDATES
BOND HILL NEIGHBORHOOD BUSINESS DISTRICT
• Control of pad ready commercial sites along
Reading Rd.
• Goal is to create and establish neighborhood
serving, retail businesses. Important to the
community per the BH & R Plan.
• Currently in final stages of construction documents
for renovation of approx. 5,500 sq.ft. of
neighborhood serving retail space with surface
parking lot.
• Anticipated construction start date June/July 2018.
40

41. PULLOF
GENTRIFICATION
Gail Paul, VP of Communication Strategy

42. Where you
live
Matters

43. Brooking Institution and PolicyLink (Kennedy and Leonard 2001b)
FACTORS TO BE
PREDICTIVE OF GENTRIFICATION
1. High rate of renters
2. Ease of access to job centers
3. High and increasing levels of metropolitan
congestion
4. High architectural value
5. Comparatively low housing values
6. High job growth
7. Constrained housing supply
8. Large rent gap
9. Urban amenities
10.Targeted public-sector policies (e.g., tax
incentives, public housing revitalization,
construction of transit facilities, disposition of
city owned properties, code enforcement, etc.)
11.Growing preference for urban amenities

44. THANK YOU
www.cincinnatiport.org