OTR Foundation: Why it is the wrong time for the Banks

Although the agreements for the Banks have been signed, there is always room for discussion.

On October 29, the Cincinnati Enquirer featured a story about a letter it received from Over-the-Rhine Foundation Executive Director Michael Morgan, in which Morgan argued that the Banks project would hurt redevelopment efforts in his neighborhood.

While the article was generally fair, Morgan believes that it failed to address the positive visions of development that were offered in the letter.

Morgan sent a copy of the letter to Building Cincinnati and notes that it addresses sustainable development and lessons learned from other cities.

In the interest of presenting many different perspectives, the synopsis will be posted here. A link to the full letter can be found at the end of this post.


WHY IT IS THE WRONG TIME AND PROJECT FOR THE BANKS: Synopsis

1. Cities across America are facing huge lawsuits by developers because construction projects have been halted or delayed due to funding glitches. The current Banks proposal calls for moving forward with a project that could cost $1-billion without secure funding. This leaves the City of Cincinnati and Hamilton County open to potentially catastrophic liabilities.

2. The City of Cincinnati currently lacks sufficient revenue to maintain its infrastructure and existing programs. Any “new” tax revenue sources are already needed to run and maintain the city. We do not have an “extra” $27-million. We need to properly fund our infrastructure, parks, schools, and encourage sustainable investment in our existing neighborhoods.

3. What is the projected, net economic benefit of the Banks? There is no reason to believe that this proposed project will have ANY positive economic impact. The Central Business District, Over-the-Rhine, and dozens of other business districts throughout the city have vacant retail space. There is no reason to believe that additional retail space will benefit rather than harm the business community and the regional economy.

4. This project will impede existing efforts to revitalize Downtown, Over-the-Rhine, Uptown, the West End, Northside, and Price Hill. These areas already vie for scarce resources and are full of vacant buildings that could be turned into marketable apartments and residential units if they could only acquire the political will and financial support. Funneling $1-billion of public and private resources to build a new neighborhood will starve the existing ones – especially those in the urban core struggling to rebuild.

5. The money would be better invested in restoration of existing buildings. Historic preservation and restoration creates more jobs, more revenue, and more wealth than new construction. (See page 5) In addition, the existence and demolition of vacant buildings is costing the city millions of dollars a year, plus the indirect costs of crime and blight.

6. It is unwise to create financial priorities that will divert more investment away from the things that stimulate economic growth and draw people to the city. Arts organizations, cultural events, and festivals are crucial economic stimuli. They’re also what most people in the region value most about Cincinnati. However, they are currently struggling from serious budget cuts. The Banks will exacerbate the loss of jobs and business that will result from more arts funding cuts. (See page 4.)

7. Hamilton County would have a more dramatic impact and produce a greater return by investing in a holistic system for social service delivery and de-concentrating poverty. A recent Harvard study shows that modest policy changes can produce 200% increases in property values in struggling areas. Such an investment would benefit the entire region and produce hundreds-of-millions-of-dollars of increased tax revenues without raising taxes. (See page 6.)

8. Targeted investments in key neighborhoods would also improve the quality of life in the city, decrease our expenses, and increase tax revenue without raising taxes. Proper investment in Over-the-Rhine, for example, could realistically produce over $8,000,000 a year in additional real estate taxes, plus tens-of-millions more in sales tax, businesses taxes, and increased tourism. (See page 8.)

9. The Banks will do nothing to make us “a destination.” Nobody travels to a city because it has an Applebee’s in a new storefront. Tourism is driven by the things that make cities culturally, architecturally, and historically unique. Tourism is driven by what sets you apart, not what makes you like every suburb in America.

10. We are failing to learn lessons from other cities and our own past. As a recent Brookings Institute study notes: “Too often, cities’ economic development policies are more about chasing after the latest fads than strategically developing and implementing plans that capitalize on their unique assets…The proliferation of stadium and convention center building over the past 15 years illustrates this trend. Even with hard evidence that such projects rarely pay the expected dividends, city leaders continue to pursue them.” Cities fall into an “any development is better than nothing” trap. “Whether due to a genuine hope that they will beat the odds, a desire for short-term (e.g. political-cycle) returns, or simply a lack of imagination, these types of practices allow local governments to avoid the real challenges associated with fueling economic growth that is robust, sustainable, and inclusive – challenges that they must overcome.” (See page 4.)

For more information, contact the Over-the-Rhine Foundation at: otrfoundation@aol.com, (513) 721-1317, or at 1317 Main St., Cincinnati, Ohio 45202. The OTR Foundation is a non-profit dedicated to protecting Over-the-Rhine’s historic architecture, preserving and promoting its rich history and cultural heritage, and encouraging policies that support responsible development and growth.

Read the entire letter on Scribd