greenhills study-1182007.indd

Greenhills Commercial Corridor Study

Submitted by the Hamilton County Development Company,Economic Development Offi ce

October 2007

Greenhills Commercial Corridor Study 2

I. Executive Summary Page 3

II. Introduction Page 6

III. Existing Conditions Page 10

IV. Survey of Redevelopment Issues Page 13

V. Redevelopment Options Page 33

V. Recommendations Page 47

VI. Appendix Page 53

Table of Contents


Executive Summary

Hamilton County Development Company‘s Economic Development Offi ce conducted a study of the Village of Greenhills’ commercial corridor located along Winton Road, between Sharon and Andover Roads. The study area includes the town center businesses, buildings, institutions, schools and churches. The defi ned street boundaries include Eswin, Endicott, and Enfi eld Streets, Cromwell Road, and Farragut Road east of Winton Road.

The Economic Development Offi ce (EDO) has taken an extensive look at the corridor’s component properties, and has identifi ed retail/service alternatives readily accessible in the greater area. It has conducted interviews with governmental, business, and development interests in search of a range of redevelopment options. EDO also investigated these re-use options in terms of supply & demand, relative marketability, and site adaptability.

A majority of the information and observations in this study will be familiar to local offi cials and other interested parties in Greenhills. Our charge has essentially been to bring fresh eyes to the corridor. It should come as no surprise that the major emphasis in this study is devoted to the Greenhills Shopping Center. Aside from its physical dominance, it is signifi cant for numerous reasons outlined later in the text.

Our second objective offers a series of recommendations derived from the available empirical data, interviews with key business, government, real estate, private sector developers, and our own observations.

Lastly, the study offers a resource guide to aid Greenhills in marketing, development incentives, fi nancing, and other technical assistance.

This study is the result of a thorough investigation of the commercial assets in context within the Village community. The center’s future signifi cantly affects discussion of other commercial properties.

Our recommendations and survey of redevelopment options grew in large part from the particular conditions, impressions, and other observations about Greenhills. The study text fully discusses each of these observations/recommendations.

Community Setting: After numerous visits, we conclude that the community’s social climate and leafy setting best express its legacy. The Village’s quiet, unpretentious atmosphere continues to create a true respite from the monotony of the contemporary American street, highway, and subdivision.

“Old is New”: The Village’s hidden asset is its adaptability to “new urbanism” principles. In its present form, Greenhills refl ects the majority of characteristics that new urbanists are striving to create in other settings. Accordingly, the Village should seek developer interest in creating a mixed-use project on the shopping center site that further reinforces the new urbanism environment.

Dominant Property & Problem: The Greenhills Shopping Center, once a noted community asset, now threatens to diminish the public and market perception of the Village as a viable residential choice or as a place to do business. Though it is not the sole commercial property, the shopping center dominates the redevelopment issue. Accordingly, it has received the greatest amount of research time, writing, and other considerations

Two Sets of Goals: HCDC has suggested short and long-term approaches to this facility. The short-term approaches relate to the current ownership. Long-term issues imply future owners or a group including the present owner as an equity investor.

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Financial Feasibility: HCDC considers this an overvalued property (approx. $2.9 million). It also carries a mortgage, constituting an encumbrance of approximately $2.2 million. In the absence of offsetting incentives, these fi gures inhibit if not eliminate the likelihood of signifi cant post-purchase investment necessary to either renovate the facility or demolish it for new development.

Decline over Time: The center’s decline, in terms of diverse, relevant businesses preceded the current ownership’s tenure. These losses resulted from dynamic changes in retail business plans, the advent of comprehensive big box retailers, and the consolidation of retail locations.

Dialogue with Present Ownership: It is imperative that Village offi cials engage the current ownership in candid, non-acrimonious discussions to determine if there is serious interest in improving the property. This need not be a protracted dialogue.

Strategic Development: In the event that these discussions clearly indicate that the current ownership has no viable improvement plan, the Village must develop a strategy for navigating a path toward property control.

Statutory Changes in Eminent Domain: Given the recently revised requirements and conditions outlined in the Ohio Revised Code, the exercise of eminent domain for property acquisition is not an option.

First Suburbs: Current public policy regarding First Suburbs seeks to devise a more aggressive and expeditious process for local access to control of abandoned, foreclosed, tax delinquent, properties. We would recommend that Greenhills and other First Suburbs advocate an expansion of this effort to include “greyfi eld” properties.

Demographic Realities: Contrary to a widely held belief that lower tier businesses locate indiscriminately, they do correlate location decisions with trends in area demographics. Their presence, appearance, and operational style, however, can be encouraged or regulated by strong property ownership.

Return of Small Business: If the consuming public concludes that it desires a return to personal service, a slower pace, and a socially oriented, neighborhood shopping experience, developers will respond but remain on the currently charted path in areas with the strongest demographics.

Our Lady of the Rosary Elementary School, closed by the Archdiocese last year, presents a number of opportunities elaborated in the text. We assume that Village offi cials will continue to be in contact with the Archdiocese of Cincinnati regarding the school’s eventual disposition. We discussed a number of options for the structure with the Archdiocese Real Estate Manager and elaborate on them in the text.

Johnny’s Toys remains a viable, commercial retail asset. To date it has been able to maintain its hold on a regional customer base amidst the convulsive impacts within the toy industry and the current herd of retail behemoths dominating market sales. In the event the ownership decides that operations cannot continue, the building has amenities that make it a relatively attractive property for a commercial successor. The property’s parking, accompanying warehouse facility, and relatively fl exible building layout make it an attractive marketing prospect.

The Greenhills public library branch is a key element in the community’s shopping and social environment. The record is clear on the community’s support for this branch. We assume its continued presence as a signifi cant element in any redevelopment scenario.

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Executive Summary


LEED: Where possible, the Village should consider pursuing redevelopment under sustainable development principles known as Leadership in Energy and Environmental Design (LEED). We have reviewed the materials presented by the student group from the University of Cincinnati’s DAAP studio. The study addressed both residential and commercial categories. Though continuity of effort would reinforce the identity as an energy conservation community, our study addresses the commercial category only. Assuming a realistic perspective on cost differentials between this and conventional construction, the Village may opt to incorporate LEED certifi cation within an incentive-based program such as a Community Reinvestment Area (CRA).

Relocating Greenhills Lanes: In the event that a developer the shopping center property is demolished, Greenhills Lanes may be a good candidate for the Johnny’s Toys site. A combination of tax incentives and benefi cial fi nancing would make the move more attractive.

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Executive Summary


Introduction

A Signifi cant Historic Past:

It is a disservice to characterize the Village of Greenhills as “another, typical, suburb.”

Whereas suburban development bases its legacy upon the optimism and energy in the post- WWII years, Greenhills’ legacy is fi rmly rooted in the Great Depression and the idealism of the New Deal.

Greenhills is one of three “greenbelt” communities developed in the later years of the Depression. Congress passed Public Resolution # 11, known as the Emergency Relief Appropriation Act of 1935. The Act provided funds for Greenhills’ land acquisition and construction. Total farmland acquired totaled 5,930 acres.

While ostensibly considered as another dimension of the WPA’s goal of putting people back to work, the Greenbelt communities were rooted in egalitarian ideals that passionately advocated for peoples’ need for relief from the dense, malodorous, and cacophonous environment of the central city. The Greenbelt concept provided residents this relief by encircling the community with green space. The Greenbelt communities were living experiments in the development of responsible home ownership. Most of its residents were unable to either fi nd or afford entry into home ownership. Finally, the Villages stressed their respective communal character. Village planners provided all its residents with housing set in the natural environment of the surrounding woods. It created a network of small sub-communities, each with plentiful pedestrian access to all points in the Village.

A booklet entitled Act of Congress, Greenhills, Ohio 1938-1976(interestingly with a front cover stamp from Sherman Real Estate, was a promotional pamphlet for the community), lists shopping center occupants during the Center’s best times: 53 stores in the Center. The goods & services represented were extremely broad convenience in the truest sense of the word. Shoppers in Greenhills did not need to venture beyond the center for everyday goods/services. The tenant role refl ected a solid fi nancial and professional base, specialty foods coexisting with an IGA, restaurants, insurance, home furnishings, hardware, etc….all the small businesses served the immediate community and customers from outlying areas as the center expanded its market reach to a regional destination. It is reasonable to assume that a signifi cant number of adult residents in Greenhills remember the center in its halcyon days. This extended to the mid-1970’s. However, it would be somewhat naïve to think that all these goods & services are restorable as small business tenants. This does not rule out the emotion al impact of seeing the center fall into such a profound state of decline.


Community facilities provided for gathering in all seasons. The shopping center, though not one of the original structures, extended the concept to include convenient access to goods & services. In the spirit of the larger community, the shopping facility stressed pedestrian access, though it did emerge at the early stage of the automobile’s dominance over all other transportation modes. Spring and summer seasons afforded a green canopy over the entire Village.

The shopping center itself became a community center on its own, as shoppers, overwhelmingly from the community, encountered neighbors and friends on an almost daily basis, exchanging news, conversation, gossip, etc. Children also considered the shopping center a gathering spot and frequented the center after school and on weekends. Earlier communities expressed many greenbelt environmental concepts. Wyoming, Glendale, and former independent communities now part of the City of Cincinnati such as Avondale, developed in the late 19th century as retreats for the affl uent. Greenhills was the sole planned community in Cincinnati based on a set of sociological concepts. As one of three Greenbelt communities built by the Federal Government, the Village was an experiment in suburban living, using the green space as a major planning concept, and developing a program to prepare residents to assume the responsibilities of home ownership.

Today, the mature, lush, green canopy above the Village is part of the community’s realized plan. It is an amenity found in few other settings within the Cincinnati area.

The Legacy:

Greenhills’ appears to be a community without pretense. This impression is not pejorative, but rather, evidence that the community has continued low-keyed temperament. Architectural styles range from multi-family dwellings possessing a “barracks” look, eclectic, stylized versions of other original dwellings, to modest Cape Cod houses evocative of the post- WWII demand that sparked the modern suburban movement. Many of these freestanding and semi-detached homeowners expanded their properties over the years to meet the demands of family and lifestyle.

Approaches to the Village from the north and south along Winton Rd.. are free of the banal visual clutter found in most other communities. Winton Woods, one of the gems within the Hamilton County Park District literally surrounds the Village with greenery.

Greenhills Community Building- presently owned by Winton Woods Schools

Introduction


Many families include third and fourth generation descendants from original “pioneers” who occupied the fi rst modernist-style town homes built in the Village. Over the years, these structures often have been referred to in moderately pejorative terms as “barracks.” The original government planned project area is listed on the National Register of Historic Places.

Commemorative Greenhills bench Original Greenhills Residence

Village residents, to one degree or another, generally feel a desire, if not a responsibility, to preserve the Greenhills’ physical character, ambiance, and historic legacy.

Many Village residents maintain deep roots within Greenhills. Most are concerned about the state of the community’s shopping center. Some are willing to contribute in some way to beautifying the facility. Remarkably, during the course of a special meeting in late January, 2007, Village residents appeared willing to consider making improvements to the center with their own materials, labor, and time. Though perhaps imprudent in terms of economics and equity, it does suggest an unusually strong civic sensibility within Greenhills. It is equally regrettable that little if any response has come from the present ownership regarding that meeting.

The Village does not exist in a vacuum. A broad range of factors infl uence real estate values, attractiveness to new residents and families, as well as those interested in doing business within a community.

We are prepared to discuss the commercial facilities’ infl uence on these factors. Business presence refl ects much about a community’s economic and social characteristics. Commercial properties in poor repair and with signifi cant vacancy are lacking customers, and businesses to serve them. The perception is negative and the inference is that businesses do not succeed in a community with this presence. People tend to forget their appetite for larger, more comprehensive stores and concentrations of competitors. This has played a major role in emptying local community shopping areas. This paradigm shift began in the 1960’s as suburban communities fl ourished while urban neighborhoods lost population and for many businesses located with them, a customer base. We are now in the midst of a second generation of this dynamic, albeit an accelerated one, as the business plan, once a time-proven entity, has become increasingly more fl exible to the point of approaching being fl uid. Store size changes, strategic location moves, expanded diversifi cation of inventory, and lastly, an ever-increasing consolidation of shopper trip demands has placed enormous pressures not only on business itself, but also on where business locates. Communities often compete in vain for store locations within their jurisdictions as retail and service businesses continue to optimize their business model.

Introduction


Perhaps the root cause for these changes lies in the lack of coherent policies relating to the concept of [urban] sprawl. Commenting on “Motels and Highways”, a print in a 1960 exhibition of Saul Steinberg’s works, poet Stephen Spender noted …”[an] American hunger for space….a hunger that recognized no debts to the past and no need to fi t its ubiquitous forms in the surrounding scenery which it tramples down to suit its purposes.” 1

The result in Hamilton County and likely to be found in a score of other metropolitan areas, is a surplus of commercial real estate. In development, fi rst suburbs, and new urbanism vernacular, these sites are “greyfi elds,” properties. They are obsolete and underutilized. Some of this seriously debilitated stock has become victim of an accelerated obsolescence. We are not suggesting that small businesses serving a primarily local clientele have all gone the way of the dinosaur. They are, however, few in number, and still need to be mindful of traditional fi nancial indicators.

Most retail analysts would agree that the United States is largely “over-retailed.” That is, there is currently an over supply of retail space. According to one source, the amount of retail space per capita has increased 20 percent since 1970. The reasons for this overbuilding include the evolution of new retail formats, consumer preferences for new retail locations and attempts by national chains to gain greater market shares. As retail continues to evolve, less competitive retailers have been forced into bankruptcy or have downsized. Older retail space has become less attractive to retailers looking to develop a new image. As a result, there is a glut of vacant retail facing many communities. Increasingly, one fi nds this retail space in “Greyfi elds” and “Ghostboxes.” 2

Surplus real estate does not generate premium-leasing rates. The perception among prospective businesses is that sales prospects are not good. Developers are typically attracted either where the population is moving or to areas in which something different is emerging. Examples locally include the condominium development surge in downtown Cincinnati.

HCDC’s task is to identify potential strong points and/or trends that apply to Greenhills.

1 Stephen Spender, comments on “Motels and Hotels” (1959), included in Saul Steinberg exhibition “Steinberg in the West” (1960).2 Matthew Kures, Greyfi elds and Ghostboxes Evolving Real Estate Challenges, Lets Talk Business, Issue 81 May 2003

Introduction


Existing Conditions

The Village of Greenhills is located in north central Hamilton County. It is unique in Hamilton County in that it resides within Winton Woods, one of the Park District’s most active facilities. Interestingly, in 1940 the Hamilton County Park Board leased 900 acres of land and developed an 18 hole golf course.


Demographics*

Greenhills is a “fi rst suburb.” The term refers to communities that became home to and hosted the fi rst generation of families leaving the urban core and surrounding city neighborhoods. These communities share common trends with one another; however, their impact varies from one area to the next. Taken together, these trends form a picture of what the community may look like in the future. Traditionally, communities based their continued existence on new families raising children, replaced by successive generations. First suburbs should be in the midst of a second generation. In numerous instances, however, this sustaining process has been short-circuited by suburban sprawl in the Cincinnati region that has drawn new residents from among the older suburban communities. In the absence of signifi cant regional growth, there is a lowered demand for the fi rst suburbs. Numerous variables not explicitly measured in demographic statistics contribute to this lowered demand. Issues involving schools, housing amenities, and proximity to optimal shopping all factor in the demand matrix. Many of these elements are subjective. Many fi nd constructive approaches or solutions through strategic planning. Our study addresses commercial real estate issues. The changing residential character in the community however, directly affects these. Ultimately, in the absence of other mitigating issues, they determine the prospect and course of redevelopment.

* A complete set of demographic data is located in the Appendix.

Existing Conditions


Highlighted below are selected categories that bring demographic changes into sharper focus:

Population loss: 2000-2005 (7.7%), 2005-2010 (7.9%) – this is a development common to fi rst suburban communities and other jurisdictions within the county. The point to note is the rate of loss. The rate is accelerating, but not at an alarming rate. The implications of population loss are quite direct. A shrinking community implies a reduction in services, a revised view of its consumer market, its ability to sustain institutional entities such as religious congregations, and the effects of surplus residential facilities. In a commercial context, this may manifest itself in vacated facilities.

Decrease in Households: This is also an issue with the rates of loss being: 2000-2005 (5.8%), 2005-2010 (6.8%). This is not entirely clear in terms of cause & effect impact. In a physical sense, conversion of multi to single-family usage results in a net loss in the absence of compensating housing units. Extended families may affect this rate. Elderly parents often move in with one of their children’s families when independent living is no longer an option. The direct commercial effects involve a change in the demand goods & services, as well as the amount of physical space supportable for commercial, especially consumer uses.

Number of Housing Units Decreasing: This is a highly charged issue in the Village. The Village acquired a number of properties. New, single family homes replaced multi-family unit demolition. The Village renovated several multi-family structures. The fi gures are as follows: 2000-2005 (5.9%), 2005-2010 (6.8%). The 2010 census will refl ect this change.

Median Age Increasing: The Village population is getting older as indicated by the following: 2000-2005 (3.89%), 2005-2010: (3.75%). The rate of median age increased but at a slower rate. One interpretation of this might involve an exodus of the most senior residents suffi cient to keep the remaining population aging at a slower rate. An aging community not replenished by youthful families, results in less pressure on schools. In another context, an aging population having no use for public schools may become increasingly reluctant to support them through taxation. An aging population changes its consumer behavior. Products, services, and the physical nature of facilities become signifi cant.

Median Housing Value – Increasing: 2000-2005 (+ 19%); 2005-2010 (8.5%). Housing price increases are rooted in demand. If the residential stock becomes less competitive with housing in other communities, its valuation slows down. Commercial developers and individual businesses regard this trend with suspicion, as it implies that the community is becoming less desirable to one degree or another. In the absence of a newly identifi ed market, development interests do not see long- term growth or appreciation with regard to their investments.

Household Size is Shrinking: An indicator that there are fewer children living at home. Families are not attracted to the community. Supportive institutions, goods, & services related to families are in less demand.

Household Income increasing: Though below Hamilton County fi gures, both median and average fi gures have increased in Greenhills. Assuming no counterbalancing economic factors, this usually translates into more income available for consumer products and services.

Owner-Occupied Housing Units Decreasing: These fi gures imply absentee ownership, as the units are typically single-family dwellings.

Renter Occupied Units Decreasing: This would seem contradictory with the above fi gures. Plausible explanations may include a decrease due to consolidating units and/or conversion to owner-occupied status, with a resident owner occupying a former rental unit.

Existing Conditions


Survey of Redevelopment Issues

This study intends to examine the Greenhills commercial corridor’s history, present condition, and redevelopment potential by offering a range of recommended directions in pursuit of a viable redevelopment strategy.

Our initial step looks at the community history in terms of its fundamental planning concepts, its amenities, and its relative proximity to other areas. One also factors profound changes that have had an impact on the nature of local commercial activity in terms of both consumers and businesses.

An examination of current conditions determines the degree to which market forces, changing retailing logistics and community demographics affect the existing commercial facilities. Considering that our focus has been the Greenhills Shopping Center, we examine that facility in a series of situations, ranging from little or no action to an entirely new development concept.

Entering this inquiry raises some assumptions about development in general and communities such as Greenhills:

Redevelopment among older, local commercial properties is subject to the following:

Developers and existing owners are averse to change and risk. Established themes, plans, high-demand locations, and new construction are all established factors that reduce developer risk. Older properties are a challenge in physical, market, and economic terms.

Demographics and location dominate commercial development decisions. Additional factors such as an alternative demographic base arouse greater interest if marketed in a creative and compelling manner.

Retail and service business has been pursuing the “upscale,” the widely used euphemism to connote higher income products and customers. With the exception of Wal-Mart and its fellow behemoths, which feature value, this polarity widens and appears to favor the more affl uent demographic for high-quality developments.

Many older commercial facilities are candidates for further redevelopment if they are fortunate in one of a number of crucial categories:

Relatively fast, easy vehicular access for a maximized customer base

Successful and proximate retail/service areas that draw other businesses looking for acceptable space

Positive, reinforcing demographics from surrounding communities

Proximity to an institution, venue, or other large-scale attraction generating a very sizeable group of patrons, all of whom are potential customers

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Some examples illustrate this point. Cincinnati’s Oakley neighborhood benefi ts from its location as an expansion of Hyde Park and the I-71 corridor’s commercial appeal. Montgomery and Blue Ash’s potent demographics, coupled with their respective proximity to the Kenwood Towne Center, and location astride the Ronald Reagan Cross County Highway provide opportunities for retail and service users. To a lesser degree, the City of Loveland, located on the Little Miami Bike Trail, has developed a limited commercial presence serving the needs of cyclists and others attracted to the area.



Greenhills Commercial Properties:

The Greenhills Shopping Center: In terms of size, physical condition, and tenant mix, this is the key property in terms of driving redevelopment in Greenhills

Origins: The 87,000 sq. ft.. retail/service facility was designed to provide the Village with comprehensive retail and service needs. It also served a larger customer base of persons living in the sparsely populated semi-rural areas surrounding both Winton Woods and the Village. Built at the beginning of the marriage between shopping and the automobile, centers of this type pre-date other non-downtown commercial areas by between one and three decades.

Costs: Management offi ce notes that rent rates run from $3-5 sq. ft.. in the rear areas to $8-8.50 sq. ft.. in the spaces fronting Winton Road. There is also a CAM charge of $0.45 per sq. ft.. CAM (common area maintenance) duties typically include maintenance of attractive street furniture, plantings, walkways , and regular trash collection.

The Present: The center continues to cater to a number of community needs, albeit in a much diminished fashion. The center is 70% occupied at this writing. The tenants are a combination of convenience retail & service businesses in addition to a number of businesses that are ephemeral operations enabled by modest rents or businesses that have a primarily non-local clientele and fi nd the modest overhead costs and ambiance adequate. The restaurants offer both convenience and social gathering opportunities.

There are remnants of the original tenant mix, such as the barbershop, insurance agency, and laundromat. The longevity for these businesses depends primarily on their proprietors, as successors are diffi cult to identify. The parking areas surrounding the center are Village property, sparing the owner the accompanying snow removal and other [recurring] maintenance tasks. Tenants pay utilities & water. This is characteristic of strip centers of this vintage.

The center’s owner is a principal of Agragen, Inc., a company involved in the development of pharmaceuticals produced from genetically modifi ed crops. A Google search suggests that the company is aggressively moving its product toward market acceptance. The company has a relationship with the University of North Dakota in Grand Forks, ND.



Valuation:

Hamilton County Auditor lists the shopping center’s market value at $ 2,943,900.

Land value is $140,800 of that total. The site contains 2.671 acres. This computes to $ 52,415 per acre or $ 1.20 per sq. ft..., which is in the lower range of commercial land values.

Taxes: The current annual taxes for the shopping center are $88,592.82


Current Greenhills Shopping Center Tenants

Ameritstop Convenience goods Back Door Saloon Tavern Body by Todd Personal Trainer Consolidated Floor Coverings Bldg. products Creamy Whip Seasonal soft ice creamCurves Fitness salon D & D Chili Restaurant Dollar General Discount general merchandiseGlass Block Windows Bldg. products Greenhills Barbershop Barber Greenhills Branch Library Public LibraryGreenhills Family Dentistry Dental practiceGreenhills Lanes Bowling AlleyGreenhills Laundromat Laundromat Greenhills Tanning Salon Tanning Gypsy Moon Imports Clothing Jan Ellers Florist Mc Connell Insurance On Style Salon Pioneer Garage Automotive service PNC Bank ATM Prime Cut Salon Riley’s Restaurant/Bakery Short Stop T Shirts Simons Insurance Independent insurance agentUs Post Offi ce Postal station We Care Adult Workshop Wm Broughton Dentist

*As of 6/1/2007

“Greyfi elds” Properties: A Redevelopment Frustration: The present condition, poor appearance (from which one can infer poor maintenance), and what appears to be signifi cant deferred maintenance, give the center the tired look that indicates decline rather than promise. In an article on the topic of greyfi eld redevelopment, author David C. Bucher noted: “According to Life Cycle Theory, retail properties depreciate in value without ongoing capital expenditures and maintenance, or occasional modernization or renovation. The majority of greyfi eld malls are privately owned; this may result in a lack of working capital needed to maintain the properties. Other important variables that reinforce deteriorating mall sales are changing demographics of the market area over time, changing consumer patterns, and changing retail strategies.”31

3 Case study: Greyfi elds as an emerging smart growth opportunity with the potential for added synergies through a unique mix of uses Real Estate Issues, Summer 2002 by Bucher, David C



Greyfi elds properties are maintained to a point that they comply with minimal physical and fi nancial requirements. Taxes are paid. Code violation compliance is as good as the jurisdiction’s inspection vigilance. Unlike abandoned properties facing foreclosure proceedings, extensive tax delinquency, and periods of virtually no maintenance, lower-tier tenants willing to operate under minimal conditions typically occupy Greyfi elds properties. Accordingly, there is no distinct public policy remedy, process, or expeditious route to place such properties under public control. To do so would violate private property rights. Utilizing a jurisdiction’s eminent domain authority ignites a controversy over what constitutes blight and meets the test for government action. The recent decision against the City of Norwood clearly indicated that a community’s aspirations for new development is not a suffi cient reason to take action against a property owner who is incapable or fi nancially unwilling to make an investment toward the community’s redevelopment goals.

Historic preservation:

In a 2006 report to the Village, that included an historic review by Sullebarger Associates: the shopping center was noted as follows:

“Of all the buildings in the Village, the shopping center presents the most dilapidated appearance and negative image. Its location on Winton Road, a major thoroughfare, makes it very visible. If the owner continues to be unwilling to sell, explore enforcement of maintenance codes, receivership, and eminent domain as ways to gain control of the property. The building’s appearance could be greatly enhanced by installing consistent and attractive signage. Perhaps a facade improvement program with fi nancial assistance could be a relatively inexpensive way of enhancing its appearance. It may be possible to convert the space for use as small offi ce park similar to examples on Chesterdale and Nilles Road. The nearby golf course could be an asset for doing business. Demolition and replacement is a last resort.”41

Greenhill’s historic value is cultural, less expressly intellectual, from a stronger sociological context……[still] articulating the goals, ideals, and optimism expressed in the Depression era Federal Greenbelt Program…..unpretentious, egalitarian environment, attuned to natural environment, almost continuous communal contact. Communities with clear histories that still include those who experienced it are unique. (referred to as “Pioneers”).

The Village has historic ties to the Federal Greenbelt movement. They extended to the shopping center when it was under cooperative community ownership. Architecturally, the center shares little with other Greenhills buildings. The site, however, resides in the midst of a community that historically defi ned a unique concept of suburban living. The physical setting and the overall village design lend themselves especially well for contemporary “new urbanism” theories.

Essentially, the center is functionally obsolete. Restoration would improve the facility’s physical appearance, but yield few if any contemporary usage opportunities.

4 Sullebarger Associates, 2006



A sampling of current tenants: We selected a sampling of properties to illustrate the range of issues that one identifi es at the shopping center.

Convenience Needs/Services:

Ameristop Food Mart: Well regarded, but aesthetically poor: Ameristop is the center’s source for convenience goods. The national chain store provides a congenial atmosphere with a selection of goods customers purchase frequently. Prices are for the most part, on a par with grocery chains. The selection, however, is extremely limited to mainline items in their most popular packaging sizes. The selection of fruits & vegetables appears intended for single users or couples.

Family Dentistry: Shopping center does not appear to justify the tenant investment: This facility represents the single example of interior renovation in the shopping center. Two dentists are engaged in an ostensibly local practice. As with other tenants, the dental offi ce employees noted the indifference of both the property owner and the skeletal management staff. There were two additional dentists on the second fl oor of the Eswin Bldg. They moved to follow patients moving north.

Greenhills Family Dentistry Ameristop Food Mart

Greenhills Barber Shop: Uncertain legacy: A shopping center fi xture from the beginning, the barbershop has had several owners over its years of operation in Greenhills. It maintains the look and ambiance of truly old style men’s barber shop. Appointments dominate the business. The shop draws from Greenhills and Forest Park. The almost extinction of formal barber training severely limits the future operation. It competes against chain hair-cutting chains and traditional salons, staffed by licensed cosmetologists.

Greenhills Barber Shop



Dollar General: Ubiquitous Presence in Older Commercial Settings: Though often associated with the fi rst signs of commercial decline, this is a well-capitalized national company with sales in excess of $ 8 billion, placing it a 256th in the Fortune 500.

The core of its business plan is as convenient alternatives for goods normally purchased at Wal- Mart. In a more general sense, the store is a cross between value shopping and convenience, with items not available at the Ameristop, in larger sizes, at lower prices. Many business owners and shoppers cited Dollar General as a convenience when picking up last minute items.

Dollar General favors space formerly occupied by pharmacies, grocery, and other users in areas ranging from 8,000 to 14, 000 sq. ft. In the absence of either jurisdictional and/or owner façade and signage requirements, the chain merely erects the minimum signage. In other situations, where controls are more stringent, Dollar General has increased the level of fi nish. A local example is at the White Oak area, where a Dollar General occupies a former chain pharmacy building. The comparison can be dramatic.

Jan Ellers Florist: Traditional service business/adapting to new times/needs better surroundings: This shop dates back to the original center tenant roll. The current owner has had the business since 1990. There are several loyal local customers. Business volume, however, comes through the Internet. Several social/cultural facts have altered the business. Flowers as an expression of condolence at funerals has diminished greatly, as bereaved families direct attendees to donate to charitable causes. Weddings, banquets, and prom corsages remain a strong part of the business as do traditional holidays in which fl owers are iconic, such as Valentine’s and Mothers’ Days. The original store was located in the rear. That area saw as much if not more customer activity than the present Winton Rd. location. The space is old, but well adapted to the décor theme for the business.

Jan Ellers Florist

White Oak –Jessup/Cheviot RoadsGreenhills Shopping Center




Pioneer Garage: Remnant of broader automotive service facility: This is a standard auto service/repair facility today. In earlier years, it also served as a gas station. Though functional and seemingly busy, the facility’s parking arrangement is poor and it shares the same tired look with the rest of the center. It is a major Greenhills convenience business likely to survive in a mixed-use development. It would also likely occupy the same, but better shielded location in a re-confi gured site plan

Pioneer Garage

Icons:

Riley’s: Successful business with better physical options: Riley’s has been at the center for over 25 years. Though a healthy business, it has seen better times and physical surroundings. It has made plans to open a second location at a new retail strip center sponsored by the City of Springdale on Rt.. 4. There has been no decision to date regarding the continuation or vacation of the Greenhills site.

Riley’s serves existing and former residents who get together on a regular basis or re-unite on special occasions. Former residents continue their relationships in a comfortable, familiar setting. A redevelopment strategy must be mindful to integrate such businesses where feasible.

Riley’s



Greenhills Branch, Cincinnati, and Hamilton County Public Library: Prime location, poor facilities:

Library service to Greenhills began in 1939, upon the project’s completion. The branch occupied space in the community building, along with the Village school. It was an original tenant in the Greenhills Shopping Center. Its location on the Commons is a wonderful setting. The leased space, however, is fraught with issues of space and maintenance.

Community outcry and public pressure mounted a formidable stance responsible for this small branch’s survival in the round of closings proposed by the Library Board several years ago. The branch is perhaps one of the smallest in the system, but after several visits, one cannot ignore the value of this facility as a destination within the commercial shopping center environment. Not unlike other branch libraries that have their respective devotees, the Greenhills branch is both literary and community-oriented. Active book clubs, engaging branch staff, and the close quarters provide a welcome intimacy. Not to overstate the point, a more generous physical layout would not sacrifi ce ambiance. In addition, the facility soldiers on despite maintenance faults that poses a threat to personnel and the library collection.

Greenhills Branch Library

Creamy Whip: An asset and a liability: Some consider this seasonal business to be a local icon, while others perceive the operation a nostalgic remnant that needs to be refreshed with a new business plan. It occupies a choice location at the center’s south corner across from the commons. Highly coveted in many communities, these family-owned and operated businesses typically occupy a freestanding building. They are winterized during the off-season. A strip shopping center does not lend itself well to a seasonal operation, especially in light of the higher vacancies and present facility maintenance. Sitting vacant on the most visible corner reinforces negative perceptions. The area appears especially barren, with a poorly maintained kiosk adding to the overall look. This business would benefi t both itself and the community with a year-round operation.

Creamy Whip


Body by Todd: Lack of signage controls confuses image: The proprietor attempts to offer his customers a discrete and private personal training setting by blocking public view to the interior. The door and front window contain a plentiful amount of promotional material.

The effect, unchecked by any discernible signage controls, presents a rather ominous, menacing appearance. By contrast, chain/franchise fi tness facilities provide a more open view of their space to attract customers. Signage is an important component in their respective marketing plans. The irony of Body by Todd is that in an attempt to provide privacy and discretion, the “over the top” effect of the business façade and signage refl ect a rather garish, overly aggressive image, totally at odds with the surroundings. The same facility could achieve a more subtle effect with some management-imposed restraint

Body by Todd Body by Todd Door

We Care Homes: Inexpensive occupancy costs vs. incompatibility

This is a daytime workshop setting for developmentally disabled adults. It is part of a large provider company for this client group. The facility works well for the workshop operation. The location is desirable in light of the low-cost space, ample parking, and maneuvering for buses that transport clients, and somewhat isolated location. Despite its seeming incompatibility in a shopping center, the tenants have brightened up the space and have provided a splash of color in an otherwise drab exterior that spans the center’s length. If the center were more active, this site would be less attractive and fl exible for the tenant. This well-maintained facility warrants a new site that provides it to function fully. The former elementary school would be a good fi t if redeveloped to accommodate human services users.

Though the Greenhills Shopping Center has entered some form of decline, it has largely avoided the “harbingers of decline,” such as the now ubiquitous “pay day loans” stores that either suggest or sadly, refl ect diminished demographics. We do not wish to conjecture on whether this is due to the center’s resistance to such tenants or for the community’s relative demographic stability. The loss of PNC’s fi nancial presence, however, is a blow to the center’s viability as a true convenience center. The presence of an ATM is a poor substitute for banking service. An opportunity at the Wal-Mart-revived Cobblewood Center prompted the PNC branch move. It would be nevertheless interesting to know if the center mounted an effort to retain the bank.

We Care Homes




Other, Proximate Commercial Properties:

Greenhills Swim Club/Nine Hole Golf Course: The village has a recreation program operating a nine-hole par-three executive golf course and an outdoor pool, both open to the public. The swimming pool draws an especially high user volume. Though refreshments are available on-site, numerous retail/service opportunities are lost during these visits due to the shopping center’s dearth of tenants and physical condition.

The golf facility, a signifi cant amenity in the Greenhills community, is open to the public. Though its sense of panache may have passed as major golfi ng facilities have developed in relative proximity, most notably the full-size Winton Woods course, a casual golfi ng experience combined with supporting leisure and equipment venues could be an attractive destination.

Swim Club

Molloy’s on the Green:A popular wedding reception site, Molloy’s is truly a regional business. Prospective clients and reception guests must pass around the shopping center property to reach the facility. The contrast is extreme. Endicott St. straddles two distinct environments. The facility is well maintained and set in a quiet area with adequate parking. As one descends from Winton Road, the shopping center poses a stark appearance. Approached from the south, the contrast is less severe, as one drives past the village green and the softest side of the shopping center. From the north, the center’s most deteriorated area dominates the visual approach. The lack of physical and aesthetic continuity cannot help but compromise one’s fi rst impression of Molloy’s.

Mention of Molloy’s and the golf course highlight the need to integrate the shopping center with its surrounding area.

Molloy’s on the Green



Johnny’s Toys: The signifi cant traffi c counts of 26,200 cars within the Greenhills corridor on Winton Rd. @ Sharon Road have over the years delivered Johnny’s clientele from a broad regional area. The site and buildings are adaptable to the widest range of commercial activities. The major concern might be a lower tier retail user, making less than full use of the facilities. After speaking with the company owner, this possibility seems remote. At present, this family-owned 60 yr. old specialty retailer has no immediate plans to close their Greenhills location. It maintains a regional customer base, has an established niche market identity, but still must compete in the toys arena, profoundly impacted by increasingly technological products, foreign manufacture, and competition with the massive retail purchasing power of Wal- Mart and its peers.

Johnny’s Toys

We met with Mr. Mike Wagner, the store manager who has been associated with the business for 28 years, moving through the ranks from stock boy after school to manager. He is also a resident of Greenhills, offering a unique view on how things have transpired over time…in terms of business, relations between the Village and its government, etc.

The toy business in general: this business in particular was built on the general presence of large families…reasonable enough when considering the number of purchases. Hand-me-downs aren’t that signifi cant when considering toys as a gift everyone gets a toy. Obviously, family size has shrunk over several decades and that has resonated in the sales volume.

The Davis family founded Johnny’s 65 yrs ago in Latonia, Kentucky. Its new (rebuilt) main store remains in Latonia. There was a store in Milford that closed several years ago. At this writing, the Latonia store and the Greenhills facility are the company.

The Greenhills store is a 30 yr. old building with 33,000 sq. ft. situated on 4 acres adjacent to the Greenhills Shopping Center. The original occupant was Albers, a local grocery chain that left the market some time ago. The building is quite versatile, with an attached warehouse and loading dock.

Johnny’s has an unusually high longevity among its employees. Many staff members have worked in the store over 20 yrs, some with a generational connection in that their children may have started on a part-time basis in high school, moving to full time after graduation. This company loyalty has also strengthened the customer base.

The toy industry has been greatly affected by game systems, which knocked numerous, smaller toys out of the market. The game system obviously generated accessories, additional games, etc. Inventory costs and effective retail prices limit the company’s involvement with these toys. The huge discounters such as Wal- Mart are the preferred venues for these products.



They are, however, sold in numerous other settings, as the toy store is no longer (nor has been for at least two decades) the exclusive venue for toys.

Greenhills is a relatively weak customer group. The strongest demographic for several decades has been the City of Hamilton, Ohio. That community’s overall demographics fi t well with both the price point and store features (layaway) offered at Johnny’s Toys. The situation is all the more remarkable when one considers the range of venues between the Greenhills location and Hamilton. Customers pass over numerous opportunities to purchase the same item. Mr. Wayne attributes much of this to the layaway system, but also cites tradition…..maintained through the “Birthday Castle” promotion that is as old as the business. Several generations of parents/children have participated. The customer database runs into six fi gures.

Johnny’s Toys generates virtually no advertising. Its business is almost entirely by family tradition reputation, and word of mouth.

If Johnny’s Toys ceases operations at its Greenhills location, the owners will likely place the property on the market. The attractive site, high traffi c volume, and favorable access attributes make this property an attractive, commercial site.

Wright Patterson Credit Union/Village Keg:These two businesses sit astride the shopping center property but are fi guratively miles apart in terms of general appearance, maintenance, and marketing. They soften the otherwise harsh segue between the shopping center site and the Village-owned facilities. The credit union is the sole fi nancial institution in Greenhills. PNC’s presence has been reduced to an ATM at its otherwise vacated site. Either or both businesses easily integrate into a mixed-use development, as they offer attractively housed, convenience services

Wright Patterson Credit Union Village Keg


Archdiocese Properties: A victim of local parochial school enrollment decline and triage, The Our Lady of the Rosary School is now vacant and has reasonable commercial adaptability.

A driveway separates the two- story structure from both the church sanctuary and parish rectory. Church parking lies behind the school and on its east side. The Village has initiated discussions with the Archdiocese of Cincinnati regarding the disposition of this property. We do not recommend that the Village acquire the building in expectation of sponsoring its redevelopment. We recommend securing a purchase option. This approach provides the Village with a right of fi rst refusal that may create a window for identifying developer interest in the school. We contacted the Archdiocese and spoke with their property manager. The Archdiocese’s perspective on re-use includes both social and economic development considerations. It additionally sees an opportunity to provide space for a variety of human services activities. School buildings have become a signifi cant source for new uses. They have been popular as business incubator facilities, taking advantage of the room layout, charter schools, and back offi ce facilities. When architecturally attractive, schools have been converted to housing.

OLR Elementary School



Competing Area Retail/Service Locations: Greenhills residents have reasonable access to numerous retail, service, big box centers, grocers, and malls. Chain grocery shopping is available at Kroger at Kemper & Winton Roads in the Kemper Shopping Center. Diagonally across the intersection, value grocery shopping is available at the Aldi store. Both areas are less than 2 miles from the village center.

Moving up Winton Road an additional ½ mile, one fi nds the redeveloped Cobblewood Plaza, hosting a Wal- Mart Superstore, a free standing PNC Bank, and other retail/ food/service businesses. As one crosses north over I-275 the big box stores are in plentiful supply in addition to the Cincinnati Mills and its out lot businesses.

Traditional shopping malls are all within a reasonable drive. Three are accessible directly from I-275 (Tri-County – 3.3 mi., Northgate: 4.3 mi., Cincinnati Mills-2.2 mi.) The Ronald Reagan Cross County Highway makes the Kenwood Towne Center a 30-minute drive. The Village lacks close access to the Cross County, being approximately 5 miles north of the closest exit.

Finally, Brentwood, 4.5 mi south on Winton Road, offers a lengthy, retail /service corridor running from Compton Road south to Galbraith Road.




Are traditional strip centers feasible?

Our study contains two examples of renovated/well-maintained retail/service centers similar in many respects to Greenhills.

1. White Oak Center:The White Oak Center is located in Green Township at the corner of Cheviot and Jessup Roads. Roughly, the same age as Greenhills’ shopping center, White Oak is in an area of intense auto traffi c. Cheviot Road’s commercial corridor runs from I-74 to Galbraith Road. Extensive shopping brackets the center.

Owner: The ILIA Corp. purchased in1998 for $2,300,000. Square footage: 35,454 Acres: 5.466Current land value: $846,000 Total market value: $2,473,600. Taxes: $44,523.32

This is a relatively straightforward strip center confi guration with several out lots characteristic of the mid to late 1960’s. At approximately 36,000 sq. ft., the center offers traditional retail facilities updated within the past decade at rents averaging $12.50 sq. ft. CAM charges are included in that fee. A freestanding PNC branch anchors the center at the north end. Tenants include a convenience food store, a specialty nut & candy business, a Fitworks franchise, La Rosa’s, Piazza Discepoli Wines, and Servatti’s Bakery.

There is no dollar store per se within the center. A Dollar General unit is located diagonally across from the center at intersection of Jessup and Cheviot Roads. It is an attractive example of national chains adapting to local or property owner standards. In this case, Dollar General has remodeled a former freestanding national chain pharmacy (CVS) that relocated to a more advantageous location. As the photos on page 22 indicate, signage, fi nish, and basic maintenance can signifi cantly increase perception.

White Oak Center, Cheviot Road


The center sits almost equidistant between two signifi cant retail/service corridors. The Northgate Mall is approx. 3 miles north via the Colerain Avenue corridor. The Monfort Heights area, less than two miles south, contains a remodeled Kroger, food, retail goods, and a broad range of services. The area also includes entrances to Interstate 74.

The White Oak center is proximate to a number of other smaller retail/service areas including a butcher shop, located directly across Cheviot Road.

Discussions with businesses, area residents, and realtors revealed a consistent point about the White Oak center’s apparent viability. St. James Parish and School are located on Cheviot Road within one-half mile from the center. The center, the butcher shop across Cheviot, and the local bank branch are all gathering spots for parishioners. St. James membership numbers over 2,300 families. The vast majority of members live in White Oak, an area of Green Township lacking specifi c boundaries. The center‘s role as a gathering spot reinforces the community feel. Considering the center’s location at Jessup and Cheviot Roads, the businesses can count on additional traffi c from Mt. Airy and Monfort Heights. The St. James parish serves as the veritable “glue” to defi ne both the White Oak community as well as the core market for the retail/service center.

2. Brentwood Plaza: Springfi eld Township’s Brentwood/Finneytown area spans the length of Winton Road essentially from Galbraith Road to Long Lane. The major business concentration is the Brentwood Plaza Shopping Center, a traditional strip mall of a vintage similar to Greenhills Shopping Center. At its high point, the strip center included a full complement of retail and service businesses one would expect to service the Finneytown area and other communities within Springfi eld Township. Brentwood also draws shoppers from the Wyoming area, College Hill, and North College Hill. The completed Ronald Reagan Cross County Highway has improved access from these areas

Brentwood PlazaKroger @ Brentwood Plaza

A grouping of smaller retail/service businesses complements the strip center’s core offerings. Out lots at the center were devoted to various food enterprises, most recently, an Applebee’s restaurant.



The property changed ownership in 1994, purchased by New Plan Realty Trust based in New York. The property purchase price was $9,900,000. The Ronald Reagan Cross County Highway reached completion within months of the transaction. Kroger, wishing to gain the greatest advantage from being proximate to the highway, moved back to the south end of the Brentwood property. Springfi eld Township offi cials took a rather pragmatic view toward the site’s re-development. In exchange for a capital improvement program targeted at street, landscaping, signalization, and road improvements, township offi cials were able to obtain an increased maintenance commitment and a uniform exterior design theme, giving the center and its adjoining properties a cohesive appearance. Considering the length of retail & service presence along this length of Winton Road, The Township decided to fund public improvements through the establishment of a Tax Increment Financing (TIF) District. The developer’s purported capital investment in façade, parking, and miscellaneous improvements was $10 million.

The Brentwood facility’s current listed market value is $16,262,800.

Annual property taxes are $540,346.74.

Surrounding commercial properties on both sides of Winton Rd. give the impression of a signifi cant retail/service presence.

The new Kroger, @ approx.. 73,000 sq. ft. has carried the design motif & roof line applied to the strip center.

A third structure, destined to be a Chipotle Grill, also carries the exterior motif.

The extensive parking/out lot space now includes a Kroger gas station.

Why do these strip centers succeed?We note fi ve factors that in various combinations provide a basis for these otherwise exceptions to general rules:

1. The property serves a demographic that extends over a number of areas (Brentwood).

2. The center is located in a robust retail corridor, offering convenience, opportunity to socialize, and serve as a defi ning base in a community lacking distinct boundaries (White Oak, Brentwood)

3. The center is proximate to a major commuter route (Brentwood- Cross County HWY)

4. The property has been assisted with tax incentives (abatement, TIF) in consideration of the ownership’s investment (Brentwood , White Oak- TIF’s)

5. The center is closely patronized by a sizeable identifi able group or organization (White Oak- St. James Roman Catholic Church has a parish membership of over 2,300 families).

The Greenhills Shopping Center currently serves a relatively small, local customer base. Its original incarnation was appropriate to the times. Customers with few if any retail & service alternatives supplemented the Village population.

Winton Road is a robust retail area, except that its business concentrations are concentrated, with Brentwood at the south end and the Winton/Gilmore /I-275 interchange concentration at the north. I-275 is approximately 2 miles to the north. The Cross County Highway is 5 miles to the south.

Green space from Kemper Road to Sharon Road from the north and Winton Woods from the south frame Greenhills with a natural landscape.



Development incentives will permit a prospective developer either cash fl ow or capital investment savings. Granting similar incentives to the present ownership may or may not be a controversial issue. That assumes of course, that the proposed scale of redevelopment was comprehensive.

Considering that the center does not appear to be a good prospect for a return to its original character, a new and non-traditional customer base might be a serious consideration.

Either the shopping center or a new mixed-use development will need to develop a completely new, singular identity and aesthetic. We strongly feel that the social history of Greenhills’ role in the Greenbelt project, its location adjacent to Winton Woods, its green-canopied environment, and identifi cation with the environmental movement might all combine to establish a relaxed, casual identity catering to specialized goods & services as opposed to the mass-market mentality of other shopping areas.



Redevelopment Options

A. Shopping Center Options under the Present Ownership:If the aforementioned Village/owner discussions fail to indicate reasonable prospects for an improvement plan, the Village must develop a strategy for gaining some measure of property control, be it an option, a workable lease, or outright ownership. Village-owned land the center uses for parking is an asset that can assist in expanding a redevelopment site. This is most likely to be a long-term goal. That said, the Village must recognize that in the interim, the center will remain essentially unchanged.

Any initiative to promote improvement under the present ownership implies some form of public incentive. That most likely incentive is tax abatement. Commercial properties pursuing redevelopment incentives within a Community Reinvestment Area (CRA) can receive abatement for a term between 1 to 12 years and an actual abated amount up to 50% of the incremental tax increase without school district approval. The incremental tax valuation increase is the key factor. Improvements must be extensive enough and of substantial property impact to warrant a signifi cant tax increase.

The current value listed by the Hamilton County Auditor is $2,943,900. The land represents $140,800 of that total value. In HCDC’s opinion, the property is unrealistically valued. It may be a functional amount in another fi nancial context, but not as a redevelopment prospect.

The present ownership might at best propose little more than cosmetic improvements such as signage, exterior resurfacing, design motif, improved street furniture, etc. However, not without merit, this approach does not begin to address the center’s problems. The Village and owner need to agree on a qualitative and aesthetic standard for these improvements. In addition, especially if incentives are involved, the Village can include structural issues that warrant immediate concerns. The Village’s building code enforcement offi cials should update this agenda. Code compliance would be the fi rst priority, and additionally serve as a type of quid pro quo for receiving incentives. Without signifi cant structural upgrades, the total value of these improvements might not have suffi cient tax impact to generate an incentive suffi cient to motivate the owner.

Tax incentives will be an issue for those in the community who view the center’s decline as partly attributable to [owner] neglect. In order for the owner to realize a fi nancial incentive, the investment would need to be signifi cant enough to affect the property’s tax valuation.

The following options range from conservative to aggressive.

1. The Status Quo Position: This implies accepting the center for what it is at present, with minimal expectations for dramatic change. It is not a position of resignation. It does assume that progress under the current ownership will be minimal at best. The hypothetical position for this option is as follows:

- Despite its lamentable condition, the facility provides frequent shoppers with easy access to an admittedly, limited, convenience goods & services. - One does not feel particularly unsafe at the center, though some of the corridors to the lower level appear somewhat forbidding. - The facility seems, however, relatively free of vandalism. This is further evidence that the center is a poor indicator of the community’s overall health. - Businesses serving the market have limited selections. Their prices are, however, comparable to supermarkets. Obviously, selection is the limiting factor. Convenience is the key element. - Several tenants are fi xtures within the community. - The best-case scenario looks to the owner to grow tired of the headaches, controversy, and liabilities involved in continued ownership. At that point, the hope is that he would sell, with luck, to a more enlightened and less risk aversive successor.


2. Façade and signage improvement: The shopping center’s present ownership improves the facility’s appearance. One must assume that incentives will drive this decision. The extent of incentives will depend upon their signifi cance in terms of increasing the center’s value. However, this scenario contemplates no major renovation. The rationale for this position might read as follows:

- Minimal but aesthetically attractive exterior work could provide the center with a new face. - The center remains a blighting element in the Village despite the otherwise leafy, quiet atmosphere. It is quite visible from Winton Road. In the absence of new, more progressive ownership, the center continues to affect community with its negative image.


Views 1 around the shopping center Views 2 around the shopping center

- What began as an integral part of the Greenhills community in cooperative ownership has descended to a mere remnant - The ownership should not be able to absolve itself of a civic responsibility to the community. It is reasonable to expect commercial facilities to benefi t rather than impair their host communities. The current ownership needs to meet these civic responsibilities. - Though there has been much anxiety, uncertainty, and some animus over the physical structure and present ownership, creating some form of incentive would be a signifi cant, pragmatic approach to the present impasse. - If not for the community plantings that accent the front parking area and the wealth of mature trees and other greenery, the structure would look decidedly harsher and more debilitated. - Though the effort would be the proverbial band-aid on an elephant, it gives the center some added respectability. However, it does not pursue the long-term issue of sustainability.

We do not foresee this program moving forward. - The owner steadfastly maintains that the center cannot recapture or realize a return on capital investment through the current market rental rates. We further think that the ownership will not take the initiative necessary to overcome this inertia with an aggressive marketing effort, pursuing a new clientele, etc.

- The owner correctly views capital investment as questionable, given the current tenant roll and accompanying income. This does not include expenses for on-going maintenance. When extended to that level, the argument becomes specious.


- Suddenly, regular maintenance becomes the equal of capital investment. Using this logic, investing in maintenance becomes a poor use of funds. The basis for this position is the idea that rents cannot increase suffi ciently to show a return on the investment. These increases are unlikely among present tenants and unattractive to prospective tenants. The argument is specious on the grounds of being a self-fulfi lling prophesy and in regarding maintenance as an investment rather than an operating expense.


Long-term vacancy coupled with a lack of maintenance

The post offi ce sign is perhaps an expression of whimsy or an absence of façade controls

- The owner noted that the center had approximately 87,000 sq. ft. of leasing space. The current occupancy rate is 70%. The current rent role includes 30 businesses offering a mix of retail, consumer service, and human service needs. Three offi ces, including the center’s management offi ce are located in the otherwise vacant Eswin Building at the center’s north end



B. Shopping Center Options under New Ownership:

The Basic Conundrum: Acquisition: It is reasonable to conclude that the current owner has little if any interest in upgrading the existing shopping center beyond a minimal cosmetic level. The owner’s candid position is that probability for a return suffi cient to justify such an investment is remote.

The Village’s past purchase overtures and similar gestures from the current owner appear to indicate either the owner’s indecision, or disingenuousness. Such discussions/negotiations have broken down in the late 11th hour.

The owner appears to be more of an investor than an active shopping center operator. The management does not appear aggressive in terms of tenant recruitment, advertising, and other promotional activities.

The current recorded market value of $ 2,943,900 is an extremely high fi gure for an obsolete structure on 2.671 acres. If renovated at a conservative fi gure of $50.00 per square foot, the improvements require an additional investment of $4,350,000. The net result would be questionable. We have cited examples of well-maintained, refreshed, traditional strip centers. They typically have a dominant factor in their favor, be it their logistical advantage in terms of access, their role as community gathering spot, or their close association with a high volume attraction that generates a sizeable customer base.

Many passive investment properties “take care of themselves,” usually through the tenants’ business management style and long-term lease commitments. Passive investments of older, often obsolete properties combined with minimal management and resources committed to the physical asset, produces the aforementioned “greyfi eld sites,” with signifi cant vacancy, transient and/or marginal tenants, and a perception of decline that affects the economic and market health of surrounding community.

This conundrum is fi nally compounded by the fact that most development in the “new” suburbs is taking place in the absence of signifi cant regional growth. As a result, redevelopment and continued health in older areas suffers from insuffi cient demand.

The §1031 Exchange:The shopping center passed to the current ownership through a §1031 exchange. The most likely buyer would be one capable of making a trade as described below.

Revenue Code §1031 allows the tax deferred exchange of investment real estate. Any rental or investment property in the United States is eligible for §1031. For example, a rental condominium may be exchanged for a farm; an offi ce building may be traded for an apartment building. In this case, a shopping center was exchanged for farmland.

The core benefi t in this arrangement is the exemption from capital gains taxes.

In a tax deferred §1031 exchange taxation on the sale of the “old property” is postponed if a new property is acquired within the time frames allowed by §1031 of the Internal Revenue Code.



These trades require that all encumbrances be removed from the property. Existing mortgages must be paid off. A highly leveraged property can render it a poor choice for exchange.

Many property owners thinking about selling discard the like-kind exchange option because they are tired of being landlords.

In a §1031 exchange for real estate, any (US) real estate qualifi es, even if the owner is not actively involved in the management or operation of the property.51

The current ownership acquired the shopping center in a §1031 trade from Towne Properties in exchange for farmland in NE Hamilton County.

If the level of maintenance and resolve is any indication, the owner would be motivated to search for a §1031 exchange transaction that left him with an investment property relatively free of management obligations.

Discussions should be initiated with the current owner center on the issue of his interest in Village and professional assistance to identify and locate potential §1031 trades.

On a cautionary note, we should note that an exchange might yield a new owner with a similar ownership style. The new owner needs encouragement from the Village and others. If new ownership enthusiastically embraces this support, an agenda for signifi cantly improving the existing center or redeveloping a new facility may have some potential.

Greyfi elds: Local governments have vigorously lobbied for statutory approaches to expedite the time frame for public control of vacant, abandoned, tax delinquent properties, both commercial and residential. Unfortunately, similar approaches have not emerged to address properties owned as passive investments.

A new project would require demolishing the original property. The site would need to be appraised at land value (presently approximately $146,000).

Assuming that a subsequent owner purchased the property at the most recent asking price of approx.. $3 million, additional investment would be prohibitive. A developer would need to receive rents in the $12-15 sq. ft. range to make a comprehensive renovation remotely feasible. Accordingly, tax incentives need to overcome the fact that the building’s “value” is essentially in the structure. The land value is minimal. An appropriate, suffi cient incentive would be based on the new investment in buildings and related on-site infrastructure.

5 Copyright 1998, Marc S. Weissman Weiss & Weissman, San Francisco, California


Public Acquisition:We do not advise outright property acquisition as it represents the highest level of risk. The Village as shopping center owner faces the fi nancial burden of debt service and signifi cant interim maintenance costs. The search for a developer with a proposal the Village fi nds acceptable may take some time. Public acquisition carries several strong caveats. Purchasing an overvalued property compels the Village to fi nd a method for “writing down” the property in order that redevelopment, whatever the form, represents a fi nancial incentive to a prospective developer.

We have made inquiries among local developers and others regarding costs necessary to bring the center to a level at which it can attract quality tenants. This of course, assumes a marketing and development strategy targeting businesses and other uses likely to fi nd market promise in this setting (to be discussed further in the text).

A preferred approach involves a purchase option. Options involve payment in return for the right to purchase a property within a specifi ed time frame. Options can be renewable and/or assignable, depending upon the willingness of the parties involved.

An option provides the Village with an opportunity to purchase time. That time needs to be devoted to a search for new market opportunities, site promotion, and identifi cation of development interests capable of realizing the Village’s redevelopment aspirations. The RFQ/FRP process is essential element during this period.

The key to obtaining an option may be dependent upon the tone of the aforementioned discussions with the present owner. These discussions should be free of acrimony. Though previous encounters have been either frustrating or rancorous, these talks will need to be both persuasive and pragmatic.

Presently, Hamilton County does not have a comprehensive land bank entity that in addition to obtaining tax foreclosed properties might additionally have the capacity to purchase property, loan option funds, and loan funds directly to communities seeking to purchase property on behalf of the jurisdiction. At this writing, no such entity is in place. Its creation will depend on identifying appropriate and suffi cient capital sources from the public and private sectors. Hypothetically, if such an agency were in place, capital requests would be judged on the strength and timeliness of a thoroughly articulated redevelopment plan, preferably the product of an RFQ/RFP process.

Eminent Domain:Traditionally, invoking the right of eminent domain has been a jurisdiction’s most aggressive approach to acquiring real property. Declaring a public purpose for this action triggers the process. Local governments recognize that defi ning public purpose does not easily include economic development. In addition, an increasing number of local public offi cials and their constituents have come to see private property rights as sacrosanct.

The key element in employing the right of eminent domain involves defi ning public use. This traditionally meant public infrastructure (purchasing public right of way for highway construction or improvement), parks, and other facilities devoted to public use.

In the wake of the Norwood decision on the eminent domain case, the State of Ohio declared a moratorium on eminent domain for economic development until December 31, 2006. The State assembled a legislative task force to study eminent domain practice and use in Ohio.

Using eminent domain for economic development now requires a defi nitive blight “test” as outlined in Senate Bill 7 (passed by both the House and the Senate on June 27, 2007, taking effect 90 days after that date).



“Senate Bill 7 provides for a Revised Code defi nition of blight for all purposes (other than those in Revised Code Chapter 725), containing a requirement that at least 70 percent of parcels in a designated area qualify as blighted parcels for an area to be deemed blighted. These factors constitute the evidence necessary for a blight determination as specifi ed in the Bill. To determine whether a property or area is blighted, no person may take into account whether there is a better use for the property or area or whether the property could generate more tax revenues if put to another use…”61

Ohio Revised Code 725.01(B):“Blighted area” means an area within a municipal corporation, which area by reason of the presence of a substantial number of slums, deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions to title, or the existence of conditions which endanger life or property by fi re and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of a municipal corporation, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use.72

Eminent domain is the government’s right to acquire private property without the property owner’s consent. Where private property is needed for a public purpose and the landowner does not voluntarily sell the land, the government may use its eminent domain power to force the property from the landowner. The landowner may not be able to prevent the taking but does receive compensation for the property.

Municipalities and their boards or commissions may exercise the power of eminent domain for any public purpose. County commissioners, on the other hand, may appropriate property only for specifi c uses, such as parks, county ditches, highways, and county offi ce buildings. Township trustees are limited to taking property only if needed for parks, cemeteries, or certain buildings.

Eminent domain is also referred to as “condemnation,” “taking,” and “appropriation.”83

The blight test referenced above in ORC 725.01(B) combined with the commentary strongly indicates that the community and other interested parties’ perceptions of “blight” are clearly outside the new criteria.

If hypothetically permitted, the shopping center would not constitute blight in an empirical sense:Demonstrating that impairment to residential and economic growth is measurable would be almost impossible. Demographics indicate that property values are increasing, albeit modestly. The center itself has increased in valuation, though one might question this fi gure in light of the observable physical condition and leasing within the premises. There are few if any comparable properties to reference. The correlation between property values and the center cannot be adequately established.

6 Squire, Sanders & DempseyL.L.P., All Rights Reserved, July 20077 Ohio Revised Code8 Peggy Kirk Hall, Legal Educator, Ohio State University Extension

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Essentially, eminent domain is no longer an option in redevelopment scenarios such as those developed to address the shopping center.Re-use: Assuming the property can be acquired, one must consider whether the original confi guration and layout can attract and accommodate a new category of tenants. A comprehensive structural/architectural evaluation would provide the level of adaptability for re-confi guring spaces and uses.

Expectations: Some community members are encouraged by the increasingly popular notion that retail/service customers long for a return to a shopping experience that promotes meaningful personal interaction with businesses and shopping on a smaller scale. Under the right conditions, the center could be transformed into an innovative and attractive shopping and gathering venue. These variables will be discussed later in the text.

C. The cleared site option:

The existing property may prove to be relatively infl exible for an effective renovation. A new site may be the sole method for expressing the chosen development concept. Redevelopment costs take on a new dimension once one is dealing with a cleared site. Though grade issues are signifi cant, a new development could be fashioned through capitalizing on the topographic oddities. The current complex has two levels. The top level is accessible from the Winton Rd. side. The lower level is easily accessible from parking at the rear.

Mixed-Use: Greyfi eld sites benefi t from a mixed-use redevelopment strategy that includes residential, necessity retail and services, and civic uses that include an educational component. The concept represents a clear break from the past commercial environment. These uses are more in line with contemporary community needs and are more apt to create externalities that reinforce usage. “I see this as one of the prime opportunities to repair the (fi rst-ring) suburbs.” says Peter Calthorpe, principal of Calthorpe Associates, a Berkeley, California, urban design fi rm that specializes in developing pedestrian-friendly, mixed-use communities.91

Marginal growth and new development have diluted demand in older areas. Naturally, situations may change, especially in terms of larger business relocation decisions. As the region’s manufacturing sector cedes its dominance to technological, medical, and service industries, the demand may increase dramatically. Nevertheless, there are likely some property interests both local and national, that may have suffi cient foresight to recognize this potential of older obsolete building and sites within Cincinnati’s First Suburb communities.

9 Case study: Greyfi elds as an emerging smart growth opportunity with the potential for added synergies through a unique mix of uses Real Estate Issues, Summer 2002 by Bucher, David C.



Tenant Mix:The right tenant mix in suburban mixed-use is challenging.

Retail is the biggest draw in mixed-use developments. A successful retail mix includes bookstores, fast-casual dining, bakeries, coffee shops, and boutiques. Many of these uses have a certain entertainment component, which is benefi cial to the overall feel of the project.

Financing mixed-use projects often can be diffi cult, if the project’s mixed-use components include retail, offi ce, and/or multifamily. Lenders may be comfortable with one property type but not the others. “Managing offi ce space is very different than managing a multifamily project, and of course, retail management has its own nuances,” Obtaining fi nancing is a challenge. In some cases, “The only way to make projects economically viable is to dramatically increase their density by adding a mix of uses and integrating them vertically,” People want to live and shop somewhere that is eye-catching and attracts more visitors and new residents to the town. “From a design perspective, there is a lot of tension between what people crave and how they really live…”101

A typical mixed-use project often consists of ground fl oor retail with either housing or offi ce space above. Some mixed-use projects are not limited to uses within one building and may include entire neighborhoods where different uses are mixed together in close proximity. Many planners see mixed-use projects that have a housing component as an important factor in reviving decaying urban and industrial areas.

Mixed-use sometimes gets confused with development objectives such as increasing density, reducing the number of vehicles, creating localized employment, gentrifi cation of urban neighborhoods, and providing dynamic living environments. In this sense, mixed-use is often associated with terms like “smart growth,” “new urbanism,” “transportation-oriented development” and “traditional neighborhood development.”

New Urbanism: A mixed-use, “New Urbanism”-styled project could improve the site and perhaps even extend these principles to the residential community.

New Urbanism principles are applicable to multi-use, higher density, projects. The shopping center footprint added to currently Village- owned parking areas offer the potential for a well-defi ned mixed-use site in that it incorporates not only residential and commercial uses, but additionally, the principles articulated by the new urbanism movement:

Walk ability: Most things within a 10-minute walk of home and work.

Connectivity: Interconnected street grid network disperses traffi c & eases walking. By extension, connectivity would be a feature linking a multi-use project to other elements that remain in the area.

Mixed-Use & Diversity: A mix of shops, offi ces, apartments, and homes on site. Diversity of people - of ages, income levels, cultures, and races

Mixed Housing: A range of types, sizes and prices in closer proximity.

Quality Architecture & Urban Design: Emphasis on beauty, aesthetics, human comfort, and creating a sense of place. Special placement of civic uses and sites within community. These might also be placements of public art or display sites for changing works. Human scale architecture & generously landscaped surroundings are a nourishing aesthetic element.

10 Excerpted from: Stephanie Bell, Mixed-use Developments Bring the City to the Suburbs Copyright © 2005 CCIM Institute

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Traditional Neighborhood Structure - Discernible center and edge - Public space at center - Importance of quality public realm; public open space designed as civic art - Contains a range of uses and densities within 10-minute walk - Transect planning: Highest densities at town center, progressively less dense towards the edge. The transect is an analytical system that conceptualizes mutually reinforcing elements, creating a series of specifi c natural habitats and/or urban lifestyle settings. The Transect integrates environmental methodology for habitat assessment with zoning methodology for community design. - The professional boundary between the natural and man-made disappears, enabling environmentalists to assess the design of the human habitat and the urbanists to support the viability of nature. This urban-to-rural transect hierarchy has appropriate building and street types for each area along the continuum

Increased Density - More buildings, residences, shops, and services closer together for ease of walking, to enable a more effi cient use of services and resources, and to create a more convenient, enjoyable place to live - New Urbanism design principles are applied at the full range of densities from small towns, to large cities

Smart Transportation - A network of high-quality trains/buses connecting cities, towns, and neighborhoods together - Pedestrian-friendly design that encourages a greater use of bicycles, rollerblades, scooters, and walking as daily transportation

Sustainability - Minimal environmental impact of development and its operations - Eco-friendly technologies, respect for ecology and value of natural systems - Energy effi ciency - Less use of fi nite fuels - More local production - More walking, less driving

Quality of Life - Taken together these add up to a high quality of life well worth living, and create places that enrich, uplift, and inspire the human spirit.1

11 http://www.newurbanism.org/new urbanism/principles.html

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Greenhills is New Urbanism’s natural, development-ready site: Ironically, the most vivid, historic example of such a community setting lies in Greenhills. The three examples of the Federal Greenbelt movement were the conceptual predecessor of the current movement known as New Urbanism. The shopping center, commons, and community building are centrally located. Pedestrian access is effi cient, within a short 10-minute walk to most if not all destinations.

New urbanism in its effort to return to a slower, more intimate living environment carries some caveats. The fi rst is to avoid projects that suggest a highly derivative look. Many projects articulate new urbanism principles as caricatures. They have the look and feel of a movie set. Others are cobbled together with spare parts from a shopping mall. Some projects carry both residential and commercial space price points that essentially create exclusive enclaves. Others in an attempt to achieve some continuity in design motif take on architectural pretensions that appear banal. These may all be market realities. However, in a mature community such as Greenhills, with almost identical community planning principles in place for at least three generations, newer projects can adapt almost seamlessly, if they are developed with a deft hand and a deep understanding of the Village’s historic intent.

Mixed-Use Development challenges :Most local municipalities and agencies are now encouraging mixed-use redevelopment.

Because of increased costs of this type of development, government agencies’ involvement is necessary and their participation is often quite helpful. Dismantling the “built-out environment” is both timely and expensive in terms of acquisition, site assembly, environmental remediation, and site preparation.

In return for including affordable housing components within mixed-use projects, developers are awarded subsidies that strengthen the enterprise by mitigating risk, making the project more economically viable.

Some developers shy away from mixed-use because of the unpredictable economic return, especially if governmental support and subsidies are uncertain or too expensive or time consuming to obtain. In short, mixed-used development often requires long-term perspective, especially when trying to do it on a large scale.

If governmental fi nancial incentives are not available, sometimes government agencies may include non-monetary incentives to encourage mixed-use, such as an increase of the fl oor area ratio in the downtown zone for including a residential element, or permitting neighborhood zones that make it a lot easier to build commercial and offi ce services in the neighborhood.

Another challenge in mixed-use developments involves market economics, which may govern the predominant use for the project, such as offi ce or multi-family. Some retail use at the ground fl oor is often successful, especially when the demand is high. One rule of thumb is that when it costs more to buy land than it costs to add vertical improvements, then you build up.



Preliminary questions

What are some key questions to ask before the project gets under way?

Consider the following: What is the highest and best use for the property being considered for redevelopment? How does it function in the context of everything around the property? How can the redevelopment respond to changes in the neighborhood? What needs in the neighborhood and region are currently unfulfi lled? What are the long-term prospects for the area?

Developer concerns- fi nancialWhat are the property owner’s needs and objectives, and how are they achieved through fi nancing? What are the fi nancial objectives (i.e., long-term income stream, income tax credits, or short-term profi t maximization)? How can the project achieve the highest returns with the least risk? What are the fi nancing constraints and objectives? What are the critical paths and time lines to getting the project done on budget and on time?

There are, of course, numerous other questions that will need to be answered and issues to resolve, as the framework for the redevelopment gets under way. Constant tension will surface as competing priorities become apparent, and as the parties attempt to answer these questions and resolve pressing issues.

Competing priorities:Experience with mixed-use development shows that success is often determined through balancing various priorities, be they legal, political, economic, or social. By way of example:

The mixed-use development concept often resonates best in run-down neighborhoods where the community is eager to see change. Usually, fi nancial incentives such as tax breaks and bond fi nancing are required to jump-start mixed-use development projects. In some instances, businesses are concerned that mixed-use development will actually reduce property values, although most critics say that is unfounded. The changing dynamics of mixed-use projects often displace some businesses whose rents become unaffordable as the property values skyrocket. Some fi nd that their businesses no longer match the residential complexion of the neighborhood.

Any number of challenges confront the developer and planner proposing mixed-use projects, including added complexity because of the multiple uses, restrictive zoning codes, increased construction costs, diffi cult-to-obtain fi nancing, wary equity investors, and a lack of suitable locations. Market readiness for unique and tough-to-locate projects is another real concern for the developer.12

12 Excerpted from: Bryan E. Powel Mixed feelings about mixed-use, Urban Development 2004, October 7, 2004 Copyright © 2004 Seattle Daily Journal and DJC.COM.

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A Cincinnati Perspective:Many older commercial facilities and cleared sites can be reclaimed for further redevelopment if they are fortunate in one of a number of crucial areas. These may include:

Relatively fast, easy vehicular accessSuccessful and highly proximate retail/service areas that draw other businesses looking for acceptable spacePositive, reinforcing demographics from surrounding communitiesProximity to an institution, venue, etc. , attracting very sizeable patrons, many of whom can be converted to form a customer base

Greenhills’ “Score”:

The Village’s closest major roadway is I-275, approximately 2 miles north. The closest entrance/exit from the Ronald Reagan Cross County Highway, an east/west connector, is approximately 5 miles to the south. Winton Road, accessible from the Reagan Highway, is essentially a local thoroughfare. Ironically, these access issues do not appear to discourage visitors to Winton Woods. Of course, there is a distinction between a recreational trip demand and one intended for shopping. Winton Woods visitors constitute a potential customer base for Greenhills. Using this reasoning, the access issues become secondary.

There is a sizeable massing of retail at the I-275/Winton Road interchange. Additional retail extends approximately 1 mile south, ending at Kemper Road. The remaining distance to Greenhills has no commercial presence nor provides for one through zoning. Any commercial development hoping to become associated with the areas to the north would be hard –pressed to rationalize a Greenhills location if their goods & services offerings were an extension of those in the Winton/Gilmore area.

If a community seeks a higher level of retail & service, it must be able to demonstrate that there are demographics suffi cient to support such business. The demographic profi le of Greenhills and its surrounding communities are relatively modest.

Proximity to a venue with a large patron base is clearly in the Village’s favor. Winton Woods has an annual visitorship of approximately 1.7 million, roughly equal to the greater Cincinnati area population. Considering that the Parks base this fi gure on cars entering Winton Woods, it is reduced by a signifi cant percentage when factoring in commuters who take a diagonal route through the park or otherwise use its roads as an alternative route to the main thoroughfares.

A commercial area situated astride the commercial and residential portions of a signifi cantly affl uent community may revive based on proximate, available space. O’Bryonville, a stretch of Madison Rd. from roughly Grandin Rd. to Annwood Park grew from a decidedly unglamorous area to an extension of sorts, to the Hyde Park Square shopping district. Oakley, east of Hyde Park, shares the general perception along with its more affl uent neighbor as a strong customer draw by virtue of its attractive setting and immediate access to I-71.

Community personality/ambiance: One encounters evidence of this around the entire Village. Straightforward, simple park benches carry the names of their donors or persons commemorated. The original “barracks” structures, though long since eclipsed by more ornate, modern housing evoke a part of the Village’s legacy. The remaining core of original residents is referred to with reverence as “Pioneers.” This is not a common feature in most local suburbs. Greenhills is not eccentric, but rather atypical in terms of the communities it competes against in the marketplace of lifestyles.

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Environment/Setting: Greenhills offi cials have discussed the possibility of a trail linking the Village with the park. Continuing these discussions is a priority. A trailhead at the commons for example, could be a boon to development of recreational goods, entertainment, and services.

The Village’s striking environmental ambiance sets it apart from to other suburban communities. Though there are picturesque, leafy, Victorian, patrician communities, they are to one degree or another, enclaves. Greenhills sits astride Winton Woods’ harbor area, where the traffi c is highest and the range of activities is broadest. The connection has commercial implications and potential. Recently, the Parks System began to permit access to the lake with private watercraft. After extensive lobbying, local canoe and kayak enthusiasts won the right to put their boats in from the Winton Lake dock. In the past, the park controlled access with its proprietary boat and pedal craft rental operation. Interestingly, one of the area’s most well regarded kayak and canoe dealers operates out of an industrial building in nearby Forest Park. There are possible opportunities for such a business to locate a satellite facility closer to the park. Fishing at Winton Woods has improved signifi cantly since the lake was dredged. However, the park does have retail bait & tackle available on-site, again, there is potential for more traditional offerings close by. It should not be ignored that massive super stores such as Wal- Mart offer these items along with a broad range of sporting equipment. The more than casual kayak, canoe, or fi shing devotee is more likely to seek out the decreasing number of specialized retailers.

The kayak and canoe enthusiasts are likely to be both affl uent and appreciative of environmental quality. They consume products and services but also enjoy gathering places in a relaxed setting. There are few if any venues for these activities in the metropolitan area that have a casual, places to relax, eat, drink coffee, beer & wine, etc., and perhaps shop for related goods. The area along the bike trail running through downtown Loveland and Milford are the current examples.

Sustainable development in the context of this study involves balancing residents’ needs for economic development with the need to protect the natural and built environment in order that such needs can be met both in the present and the foreseeable future. This concept addresses design and operational characteristics for new development.

One of the emerging concepts expressing “sustainability” is LEED (Leadership in Energy and Environmental Design). This is the current benchmark for environmentally sensitive and sustainable development. Recently, a team of architectural students from UC’s renowned “DAAP” surveyed Greenhills original residential, community, and commercial buildings to determine whether they could achieve LEED certifi cation.

Additional research will determine the Village’s level of interest, commitment, and fi nancial capability for adopting LEED standards. An incentive policy needs to stimulate both new and existing development. Assuming the existing community shows a signifi cant interest and commitment to sustainable development it can be marketed as the standard for future development.

Traffi c Counts: Winton Road is a major commuting route in the northwest Cincinnati area. The key intersection for Greenhills is the intersection of Winton and Sharon Roads; County Engineer data estimates 26,200 vehicles move through this area daily on a north/south route. The shopping center fronts on Winton Road. The entrances often frustrate present or potential tenants that can attract traffi c.



General:

Short vs. Long-term goals:For the purpose of this inquiry, we defi ne short-term goals as actions completed within a year, drawing on existing resources, procedures, or authority.

Short-term: The Greenhills Shopping Center: Considering the absence of tangible proposals for cosmetic improvements, seemingly passive efforts in leasing, and levels of maintenance, we recommend taking a basic status quo approach.

The Village should conduct a comprehensive site inspection to determine code violations that currently exist within the shopping center property. Defi nitive performance dates and penalties for non-performance need diligent enforcement.

Review/revise building code signage provisions: though this may impact on other businesses such as Johnny’s Toys and the Village Keg, the Village should require the shopping center’s compliance with a signage standard.

The Village should no longer pursue efforts to purchase the center on its own. - Village should hold discussions with the current ownership to determine if a purchase option is feasible. The option would provide the Village with a interest it can use to attract redevelopment - Discussions should assess whether the owner has a willingness to sell the property or participate in a §1031 exchange transaction. The Village may imply that it could be of some assistance, while also getting a sense of prospective purchasers and their interest in improving the facility.

The Village needs to establish a Community Reinvestment Area (CRA): This development tool promotes an incentive-based approach to redevelopment in both residential and commercial settings. The essential element in the CRA program is the community’s ability to abate taxes on new investment for the critical periods in a project’s early operation. In the commercial context, CRA incentives would be instrumental in encouraging development of the shopping center property if new construction was involved or for that matter, a comprehensive renovation designed to retain the original facility. It can also serve as an incentive tool for pursuing LEED standards.

Long-Term: These goals will require several years to plan, identify prospective development interests, and ultimately select a project concept.

Develop marketing approach to promoting the community as a solid residential value. Village residents need to achieve consensus on how they perceive their community and how others, especially commercial interests, view them. We recommend a series of facilitated workshops or community meetings. The second requires an inquiry into how developers and users conduct demographic analysis when searching for viable community locations.

Greenhills needs to identify new market generators:The Village is small and situated within close proximity to a plethora of retail goods and services. Accordingly, we recommend re-defi ning Greenhills’ market identity. The Village’s relative isolation from communities to the north and south fortunately brackets it in green space. In this sense, it does not benefi t from being a part of a business corridor in either direction. The task is to determine the contemporary reasons for visiting the village in search of goods & services.

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Recommendations


Initiate or Reinstate an active dialogue with the Hamilton County Parks to address a stronger relationship between Greenhills and Winton Woods

- We encourage Village offi cials to establish a collaborative relationship with the Hamilton County Parks System conveniently headquartered within Winton Woods. Greenhills has the singular distinction of being encircled by the park. Linkages are, however, mainly vehicular. - There is inadequate pedestrian access, especially along Winton Road. Trail access would be a tremendous bonus near the commons, the community center, and the shopping center. Village offi cials have discussed this possible linkage with park offi cials in the past. We strongly advise resuming such discussions. A less dramatic compromise might involve a trail along the park exterior on the eastern side of Winton Road.- The park is well attended, offering broad recreational opportunities. An estimated 1.7 million persons entered through the park in the past year. This fi gure needs to be adjusted to refl ect the signifi cant number of motorists who use the park as a short cut on their daily work commute. Park offi cials could not provide an accurate net fi gure, but we think it is reasonable to attribute approximately 25% of the total fi gure to commuters.- The District’s headquarters are located within Winton Woods. The recent Winton Harbor & Lake renovation project opened the lake to visitors with privately owned kayaks and canoes, expanding the ability to more fully navigate its areas. The jogging, walking, and biking path is a popular combination of exercise and socializing. The enormous Baby Boomer generation is approaching senior status. It is relentlessly committed to staying active, especially in low contact activities…Kayaking, canoeing, naturalist pursuits, walking/hiking…and the post-recreational activities…dining, drinking (coffee/alcohol), shopping for related goods/services, quality crafts, art, etc.

Retain the Bowling Alley within Greenhills: The owner stated that a once local trade is now almost exclusively league-based. Bowlers come from the metropolitan area. There are all types of leagues. This ten-lane bowling alley is a nostalgic trip back into bowling of the 1950’s.

The owner considered moving his business through buying and renovating Johnny’s Toys for new lanes when and if the opportunity were to arise. Investment in fi xtures and new equipment would be high. HCDC could work with this individual to develop an attractive loan package, mixing conventional fi nancing with SBA 504 or other secondary fi nancing instruments to achieve a fi xed, blended rate, with a favorable term. Local incentive benefi ts would make the prospect more attractive.

Relocate the Public Library: It is our understanding that the Village has had discussions with the Winton Woods School District, the building’s current owner, on the subject of incorporating the library facility into the Community Building. This would be an interesting return to the library’s original site (assuming concurrence from the Library Board). The location change would be relatively close and not likely to affect the volume of shoppers at the center. This of course, assumes that the center would be operating at the time of the library’s move.

The library can bolster cultural/historic tourism by displaying WPA- commissioned murals and other Greenhills historic materials in the new library space. The Winton Woods School District may be convinced to see the educational value of further integrating the community’s history into a gallery space.

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Recommendations


Encourage small, professional offi ce development on the shopping center site, if feasible, within a renovated facility, or a new, mixed-use project:

The Village should explore opportunities for marketing the commercial area as an attractive professional offi ce setting: This initiative focuses on the presence of Winton Woods, as an active recreational venue and a bucolic setting for a professional practice or offi ce. The current Cincinnati market heavily favors new, Class A offi ce space. Existing space, usually characterized as Class B, has been a major source of new tenants for Class A in the absence of area newcomers. Lowered demand for Class B has predictably lowered demand among Class B properties.

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Suburban Offi ce Vacancy 2nd Quarter, 2007

Area Class A Space Class B Space ( sq. ft.) (sq. ft.)

Blue Ash 13% 344,346 26% 283,703

Kenwood 3% 36,860 4% 25,715

Montgomery/Milford 12% 80,685 27% 190,818

N. Kentucky 22% 673,365 22% 89,628

Tri-County 13% 275,777 27% 466,447

I-71/Warren Co. 14% 392,871 48% 143,062

Total 14% 1,803,904 25% 1,199,373

Suburban Offi ce Demand (Net Absorption), 2007

Second Quarter Year to Date

Class A 6% 103,634 10% 189,378

Class B 3% 33,962 0% 3,490

These fi gures are not particularly encouraging. Smaller offi ce space for individual professionals and medical group facilities in either new or renovated form would likely be classifi ed as Class B space. It would need to be strongly reinforced by the physical setting. (Chart13 )

13 Cincinnati Commercial REALTORS, 2007


Maximize attractiveness of Village-owned real estate: Many communities participate in programs that employ decorative artifacts…fl ying pigs, squirrels, vases, etc. In some instances, prior exhibitioners donate these artifacts. In others, artists create the works as part of a resident artist program. The community typically selects the motif. The positioning of these elements should surround the center.

The Village has considerable leverage through its ownership of the center’s front and rear parking areas. The Village can use this advantage to exert pressure on the current owner to take action to improve the property. Redevelopment prospects increase signifi cantly if Village land augments the center’s footprint to create a new, expanded, site plan. The fi rst leveraging approach implies a punitive approach and would likely result in the threat of or actual litigation. The second approach is more constructive in that it would add an attractive incentive to the property’s redevelopment potential.

Develop an historic tourism program: This is less a structural-oriented activity in Greenhills than an environmental experience. A physical and social intimacy attracts visitors seeking some sort of vicarious experience or identifi cation with the historic greenbelt program. This may become a more viable activity if the historic art, literature, and project information are brought together in a central facility. The commercial component of historic tourism in Greenhills is, in our opinion, relatively small.

Explore the Feasibility for Senior Residences/Assisted Living Facilities: an emerging market, as medical science extends senior life expectancy….and creates new markets/services/facilities to accommodate the increased population. Marriott and other developers in the hospitality industry have added senior living to their portfolios.

- Assisted Living complexes are an increasing presence in the Winton Road, Montgomery Road and other corridors. The Maple Knoll community is perhaps the area’s oldest and largest senior development. The site’s 2-mile proximity to I-275 is a major asset. - Greenhills is a central location when one considers communities in the local area. Forest Park, Springfi eld Township, and Springdale all border Greenhills. Assisted living facilities are more attractive to prospective residents when they are located close to a former residence or near family members. The Alois Center on Damon Road has been a community presence for over a decade. - Seniors are increasingly expressing a preference for living within the community in which they raised their families. The attachment to place is likely to be strong in Greenhills, augmented by plentiful documentation on previous generations’ history in the community.- There have been successful new residential construction projects that have drawn heavily from a senior customer base. Condominiums on the east of Winton Road, approximately two streets south of the commons have numerous senior residents. Seniors have purchased majority of new, single-family homes in the DeWitt Landing project. - The Village’s pedestrian-oriented character and Winton Woods offer low impact exercise opportunities.- Though the Village’s median age is increasing, projections indicate that it is growing at a slowing rate. This may be attributable to person’s desires to move from the Village or for the lack of suffi cient, contemporary residential product.

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Recommendations


Pursue opportunities for attracting satellite medical facilities: Local medical groups such as the Health Alliance, Tri-Health, and Franciscan have developed outpatient medical facilities in numerous communities across the metropolitan area. HMO’s and other medical groups such as Group Health Associates (GHA) have been particularly aggressive in this development. Units follow demographics. They do consider the aging of particular areas as well as the ease and speed of access. For example, Group Health Associates has seven facilities in the Cincinnati metropolitan area. Of that total, three units, Kenwood, Anderson, and Springdale are in close proximity to a major interstate or highway. The remaining facilities in Clifton, Western Hills, Colerain, and Finneytown are at some distance from these routes. The study area would be a strong candidate as an expansion site.

- Proximity and ease of access to I-275 interchange at Winton road.- Lack of medical facilities within Greenhills.- Daytime commercial population adds a signifi cant component.- Opportunities exist for combining medical and senior residential facilities.- Mercy Hospital is located on Mack Rd., adjacent to the Winton/Gilmore shopping area. Its Mt. Airy campus is approximately fi ve miles southwest of Greenhills. Opportunities exist for satellite facilities from the Mercy Group. - Complementing development is somewhat limited as satellite facilities include proprietary pharmacies, medical supplies, etc within the medical facility. That does not rule out the possibility of professional medical offi ces from assuming a complementary presence.

Establish an RFQ/RFP process: This is a coherent, manageable, thorough, and orderly selection process designed to select the optimal developer and development concept for a building site. The process should be established regardless of whether the community considers a comprehensive redevelopment of the existing facility under a prospective buyer or decides to initiate a new, mixed-use development with a re-confi gured site plan.

The process has two phases:

RFQ: Request for Qualifi cations: this process is essentially a way to determine if a developer is the best choice for an intended project. The process seeks to:

- Evaluate competing fi rms’ staff credentials.- Assess a fi rm’s experience in a specialized area of redevelopment.- Identify comparable experience with the project similar to that conceived by the requesting authority.- Assess a fi rm’s understanding of the project’s conceptual elements.- Assess a fi rms’ recognition of context provided by the project setting and history.- Evaluate a fi rm’s apparent compatibility with representatives of the local searching jurisdiction.

It is important to note that an RFQ is not a solicitation for a specifi c project proposal. A competing fi rm is not expected to develop extensive renderings, site plans, etc. A search committee should be primarily concerned with an applicant’s breath of experience and “feel” for the project, in terms of how that meets the understanding, intentions, and expectations of the project’s host jurisdiction.

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The RFP Phase: This is a more defi nitive exercise. The RFQ process yields a pared down group of teams. The fi nal developer evaluation is based on the following elements:

- The fi rm’s interpretation of the proposed project- Teams present a two-dimensional rendering refl ecting their conceptual understanding of the project. - The presentation includes basic architectural, site design, landscaping, generic land use, and zoning issues, development time line, and the development’s fi nancial aspects.- This phase provides an opportunity to determine the applicant team’s professional temperament, and conceptual fl exibility.- Teams discuss their relationships with local peers and allied fi rms regarding a collaborative workfl ow.

Determine subsidy approach: There are several potential subsidy concepts available in the pursuit of a quality development. Subsidies address capital investment and cash fl ow. A specifi c subsidy addresses each issue. These approaches below are the most direct subsidy to capital investment.

- Land write-down: If we assume that the Village has acquired the shopping center directly, it will create the need for writing down the price as a means of make the site acquisition feasible in terms of the developer’s investment and risk. Tax abatement is an alternative approach to an actual price reduction. Tax incentives reduce the cost over time by returning dollars to the project’s cash fl ow. - Tax Increment Financing is a secondary approach, in that it essentially fi nances capital improvements that serve both private and public interests. The “service payment” created from the new taxes generated by the development is actually debt service amortizing bonds issued for TIF improvements by the host jurisdiction. The developer is spared the [private] capital investment through this approach.- Tax Abatement: If the development seeks a subsidy to ease its early operating cash fl ow, tax abatement is the essential subsidy. The jurisdiction can justify this action in terms of alternate revenue streams such as a city income tax stream from new employment created by the development. The vehicle for this incentive is the Community Reinvestment Area (CRA) outlined in the Appendix.- Debt Instruments:

o Though the Small Business Administration’s (SBA) 504 loan program is not applicable for speculative development, it might be used if the redevelopment site involves freestanding out lots developed on a “built to suit” basis for an end user. An example might involve a medical facility or professional group. o Development bonds are accessible through CIC’s, providing relatively low cost, highly leveraged, developer fi nancing.

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Appendix

Commercial Properties in Greenhills

Name/Address Size-Acres Size sq. ft. Owner Contact Information

Greenhills Shopping Center 2.954 87,000 Samuel Huttenbauer Jr. 20 Eswin St., Cincinnati, OH

Johnny’s Toys

20 Enfi eld St./30 Eswin St. 3.860 51,455 Johhny’s Toy Shop , Inc. 4314 Boron Dr., Covington, KY

41015

Alois Alzheimer’s Center

70 Damon Rd. 7.550 30,827 Crystalwood Real Estate 70 Damon Rd., Cincinnati

Holding Company, LLC 45218

Wright-Patt Credit Union

3 Enfi eld St. 0.198 2,205 Wright-Patt Credit Union 2455 Executive Park Blvd.

Fairborn, Ohio 45324

Village Keg Wine & Spirit Shop

5 Enfi eld St. 0.254 2,790 Wm H, & Alice Haggedorn 5 Enfi eld St. Cincinnati, Ohio

45218

Molloy’s on the Green *

10 Enfi eld St. 17.821 8,485 Village of Greenhills 11000 Winton Rd.

Cincinnati, Ohio 45218

Mobilecomm

1222 W. Sharon Rd. 9.787 13,400 Conrad Radio Service 1211 W. Sharon Rd..

Cincinnati, 45212

Totals 42.424 196,162

* this acreage includes all other activities- swimming pool, Molloy’s, golf


Appendix

Development Tools:

Community Reinvestment Area (CRA)Community Reinvestment Areas are areas of land in which property owners can receive tax incentives for investing in real property improvements. Personal property exemptions are not granted under this program. The CRA program is a direct tax exemption program benefi ting property owners who renovate existing or construct new buildings. The provisions outlined in ORC Chapter 3735 permits municipalities or counties to designate areas where investment has been discouraged as a CRA to encourage revitalization of the existing structures and the development of new buildings. The program can be used as an economic development tool to encourage commercial and industrial renovation, expansion, or new construction. CRA’s are also used to promote historic preservation and residential construction.

There are two types of CRA’s in Ohio, those in existence before 1994 and those created after 1994. The regulations governing each type vary considerably. However, in each type of CRA, it is the local legislative authority with jurisdiction over the designated area that determines the size, number of areas as well as the term and extent of the real property exemptions.

Additionally, a municipality or county must undertake a housing survey of the structures within the area proposed as a CRA. The results of the survey must support the fi nding that the area is one in which new construction or renovation has been discouraged.

A CRA is not currently in place in Greenhills.

Contact:Hamilton County Economic Development Offi ceAttn: Barry I. Strum/Ms. Stacey Dietrich(513) 631-8292www.hcdc.com


Appendix

Community Improvement Corp. of Greater Cincinnati (CIC)The Community Improvement Corporation of Greater Cincinnati (CIC) was established to encourage overall economic development and growth within the community. Often a CIC is established to revitalize a particular area of a community as it allows community leaders to create a separate entity to monitor revitalization efforts. A CIC has the ability to sell and acquire properties, allowing it to act as a private corporation within the public sector realm. Additionally, a CIC can borrow money and acquire, sell or lease personal property, stocks, corporations, and other investment options. Another key aspect of a CIC, though often only used in more moderately distressed areas, is its ability to make loans to businesses and individuals that have been refused fi nancing through traditional lending sources. A CIC must develop a revitalization plan for the proposed area. Its own board of directors governs it.

Greenhills does not currently have an active CIC. An entity could be created were the village to pursue a more active role, such as acquiring property, in the development process. We feel that given the Village’s current commitments in its recent housing ventures, this option is a fi nancially untenable course of action. The CIC serving Hamilton County would be a realistic surrogate.

At this writing, the CIC of Greater Cincinnati is primarily involved in approving applications for conduit bond fi nancing. It has not adopted a comprehensive position regarding underutilized commercial (greyfi eld) properties in First Suburbs communities. Hypothetically, the CIC has the ability to become actively involved in acquisition fi nancing, purchase options, and site assembly, as a lender or as investor. This initiative will require extensive analysis, a structured project select approach, and extensive discussion. Finally, any initiative depends upon a clear mandate from the Hamilton County Commissioners.

Contact:The Community Improvement Corporation of Greater CincinnatiC/o Hamilton County Economic Development Offi ceAttn: Barry I. Strum(513) 631-8292www.hcdc.com


Appendix

Special Improvement District (SID)A Special Improvement District (SID) is a district where an assessment is made on every property and the collected funds are used in one, or combination of several of the following areas: marketing, landscaping and streetscape, business recruitment and retention, special community events, general maintenance, parking, or security and other public works improvements. An example of a SID is the Backstage District near the Aronoff Performing Arts Center in downtown Cincinnati.

A SID differs from most other economic development programs in that a petition of local property owners and not the local unit of government create it. A SID can be created by a petition of:

A minimum of 60% of the frontage property owners (for example, 60% of the land owners on Winton Rd..) or

75% of the total land owners in a proposed district (for example, 75% of property owners in the Winton Rd.. Corridor, regardless of whether they own frontage property)

All of the property owners within the SID are included in the assessment (excluding religious institutions and municipal/county governmental properties, unless they request to be included in the SID). The law excludes federal or state government properties from being included in a SID. All the properties are subsequently assessed a fi xed amount of money based on individual front footage, assessed valuation, a proportion of the benefi ts resulting from the district or a combination of all three factors. The SID funds are then used on improvements and programs that will benefi t the entire district. A non-profi t board of trustees governs the SID with a minimum of fi ve members; one of those members must be a resident of the community.

This economic development and marketing program may be applicable for Winton Rd.. It is typically used to maintain and promote areas after signifi cant investments have been made in streetscape and infrastructure.

The SID is a highly desirable tool when businesses make the decision to essentially tax themselves for their mutual benefi t.

Contact:Hamilton County Economic Development Offi ce(513) 631-8292

www.hcdc.com

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Appendix

Tax Increment Financing (TIF)Tax Increment Financing (TIF) has become an accepted method of funding numerous public works projects across the country and in Greater Cincinnati. With TIF, real estate taxes that are created by the “tax increment” (i.e. the increase in real estate value caused by the improvements to the property) generated by a new or rehabilitated development in a defi ned TIF District can be “captured” for reinvestment in the area around the development. Typically, TIF funds are used for infrastructure (roads, sidewalks) to support the new automobile and pedestrian traffi c caused by the new development. Upwards of 100% of the real estate taxes, for a period up to 30 years, can be captured for the improvements. Permission would be required from the Winton Woods School District if the TIF were greater than 75% or the time period is greater than 10 years. Should Greenhills elect to pursue a TIF District on the corridor for a 75%/10-year time frame, approval would not be needed from the schools, though cooperation is recommended.

In the event of a TIF District formation, a developer would be selected to plan and construct the new development. That company is required to pay an annual service payment in an amount of up to 100% of the tax savings. The service payment is then placed into one of the following funds:

A public improvement tax increment fund that is used to fi nance public improvements associated with the development; orAn urban redevelopment tax increment equivalent fund that can be used to fi nance public improvements as approved by the TIF ordinance or resolution.

There are several advantages to TIF usage, though it can be contentious given the school district’s loss of funding. Nonetheless, the advantages include:

Similar to an Enterprise Zone Agreement, once the TIF exemption has expired, Greenhills will realize the additional income generated by the project.Most new TIF developments generate additional jobs for the community.Since the public improvements would be fi nanced by the new development, the burden will not be on the Village to pay for them through increased taxes or other costly measures. Although the Village is liable for tax repayments should the increment taxes realized from the project fall short of projections. This contingency is generally supported by the developer’s guarantee of a suffi cient service payment through a standing letter of credit or other appropriate indemnifi cation technique.A TIF District typically promotes economic development in areas such as Greenhills’ length of the Winton Rd.. Corridor, where development has been constrained by market dynamics.

TIF’s are used for a wide variety of both small and large commercial, industrial, and public projects. Examples of TIF districts utilized in the State of Ohio include:

Springfi eld Township: Brentwood Plaza Shopping CenterSycamore Township: Kenwood Towne CenterCity of Cincinnati: Nu ToneCity of Norwood: Linden PointeCity of Harrison: Harrison Commerce Center

In our opinion, TIF should only be considered if a site is re-built, with the new site plan departing signifi cantly from the previous interface with roads walkways, traffi c controls, and other public improvements. However, this opinion is tempered by the likely and essential use of tax abatement incentives, designed to mitigate the high acquisition cost of properties in a built-out environment.

Contact:Hamilton County Economic Development Offi ceAttn: Mr. Harry Blanton(513) 631-8292www.hcdc.com

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Appendix

SBA 504 LoansHCDC is a lender, certifi ed by the U.S. Small Business Administration (SBA), to provide guaranteed loans to businesses expanding or locating in southwestern Ohio. The 504 Program allows business owners to have a fi rst mortgage with only 50% exposure. HCDC is one of only twenty-fi ve development companies in the country selected by SBA for its Accredited Lender Program.

HCDC provides subordinated, fi xed interest rate, long-term loans for up to 40% of project costs or $750,000 ($1 million in special cases). Terms are 10 and 20 years, depending on the economic life of the asset being fi nanced. The SBA 504 program is primarily for the fi nancing of real estate. Interest rates for the 40% HCDC portion of the loan will always be competitive with, and usually slightly below, current market rates. The rate for the 504 portion will be fi xed for the term of the loan.

Loan funds may be used to fi nance land acquisition, building acquisition, construction, renovation, or expansion. It can also be used to fi nance machinery and equipment with a useful life of 10 years or more, and the cost for appraisals, general surveying, architectural work, and installation.

Speculation, non-profi t institutions, lending or investment ventures, and rental property held primarily for sale or investment are all uses that are ineligible for SBA 504 funds.

Eligible business entities include for-profi t corporations, partnerships, and proprietorships. However, these businesses cannot have a net worth that exceeds $6,000,000. In addition, the company’s net profi t after taxes must average less than $2,000,000 during the previous two years.

Other conditions include that at least one job must be created or retained for each $35,000 in 504 funds loaned and that all owners of 20% or more of the company stock will be required to personally guarantee the loan.

This program is restricted to owner-occupied business facilities. In theory, an end user such as a medical facility, legal fi rm, accountancy group, or other professional organization/business purchasing a freestanding building in a “build to suit” arrangement could pursue this fi nancing.

Contact:Hamilton County Development CompanyAttn: Andrew Young(513) 631-8292www.hcdc.com


Appendix

Small Business Development Center (SBDC)SBDC exists to provide management assistance to existing small business owners in order to promote growth, expansion, management improvement, and increased productivity.

The Small Business Development Center is partially funded by the Ohio Department of Development and the U.S. Small Business Administration.

SBDC provides current and prospective business owners with the following: free one-on-one business counseling, research assistance to solve small business problems, and provide contacts for fi nancial, legal, insurance services. SBDC consultants will also help small business owners develop:

Business/Financial ManagementAnalyze fi nancial statements to see if owners can improve their bottom line. In addition, HCDC provides assistance in creating fi nancial projections for a loan package. Business PlanningHCDC provides the tools to assemble a well-organized business plan. Entrepreneurs will understand what a business plan entails and how to research certain parts of the plan. After the client has written a rough draft, HCDC will review it and make suggestions on how to improve it. Human Resource ManagementAnswer your questions and/or can make referrals to a human resource professional to assist a business owner with employee issues, benefi t, and retirement planning. Marketing StrategyThe SBDC can assist in creating a marketing strategy for a small business. Strategic PlanningCounselors are available to conduct strategic planning sessions. These sessions review how a business has done in the past year(s) and helps defi ne where to take a business in the upcoming year(s).

The SBDC does not make loans; however, the Center does have information about various fi nancial resources. Guidance is given to businesses to identify the appropriate fi nancial resources and assist in loan packaging.

SBDCV services might prove invaluable to prospective commercial tenants, especially in terms of marketing themselves in a non-traditional location.

Contact:Hamilton County Business CenterAttn.: Mary Meyers(513) 631-8292www.hcdc.com

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Appendix

Business Retention ProgramThe Hamilton County Offi ce of Economic Development plays an important role in ensuring that local businesses have the ability to grow and succeed by eliminating red tape and other obstacles to staying in Hamilton County. HCOED staff participate on the Regional Businesses Retention Committee, which is an “early warning” business contact system established by the Greater Cincinnati Chamber of Commerce. Along with other economic development professionals and private sector volunteers, the goal of the Retention Committee is to meet with at least 250 area businesses in 2000. HCOED staff has personally met with over 30 businesses in Hamilton County within the last year alone, and have provided assistance with the growth needs of many of those companies.

In addition to participating on the Retention Committee and meeting with individual businesses, HCOED also performs community wide business retention surveys. These surveys help gauge the business and economic “health” of a community, and have resulted in meeting important needs of expanding companies. Through both the Retention Committee effort and community survey activity, HCOED provides assistance that businesses need in a competitive environment. Every company’s assistance requirements are unique; recommendations typically include tax incentives, fi nancing programs, and training programs that will most benefi t that company.

Though its commercial community is relatively small, local offi cials can benefi t by identifying businesses with possible expansion plans or conversely, frustrated by the lack of same and looking to other locations outside the Village. Local offi cials and HCOED can provide a forum for business owners to cite their issues and have the township address their concerns.

HCOED can provide Greenhills with copies of retention programs that have been conducted for other Hamilton County communities as an example of a valuable program that could be instituted within the Village.

Contact:Hamilton County Offi ce of Economic DevelopmentAttn: Mr. Harry Blanton(513) 631-8292www.hcdc.com


Appendix

Linked Deposit Programs: These programs offer small businesses the opportunity to obtain a reduced fi nancing rate at approved lending institutions. The State of Ohio’s program is described below:

Ohio Treasurer of State Linked Deposit Programs: Small Business Linked Deposit

THE PROGRAMThe Treasury’s Linked Deposit Program for Small Business has assisted thousands of Ohio businesses across all 88 counties since its inception in 1983. The program’s purpose is simple: to help preserve or create jobs for Ohioans. Ohio law authorizes the State Treasurer to place up to 12 percent of the state’s investment portfolio in reduced-rate investments at local lending institutions, which, in turn, lend the funds to qualifying small businesses at below-market rates.

Well into its second decade of operation, the Linked Deposit program is one of Ohio’s most popular and widely used economic development tools.

ELIGIBILITYIn order to qualify for the Linked Deposit Program, the small business must meet the following requirements:

Be organized for profi t;Maintain offi ces and operating facilities exclusively in Ohio; and,Employ fewer than 150 people at the time of application, the majority of whom must be Ohio residents.

OTHER PROGRAM GUIDELINESIn addition to the above requirements, the following guidelines apply to the application process:

A small business owner should contact a lending institution that is a state depository and obtain a loan as they normally wouldThe applicant should document the number of jobs that will be saved or createdOnce approved by the lending institution, the application is sent to the Treasurer of State’s offi ce for approval;The Treasurer’s offi ce evaluates applications on a fi rst-come, fi rst-served basisEligibility is determined by a jobs-to-dollars ratio – that is, one full-time-equivalent job must be created or saved for every $25,000 requested;If the loan is approved, the Treasury purchases a reduced-rate certifi cate of deposit with that lending institution in the amount requested, provided the latter agrees to lend such funds at a reduced rate to the borrower

Applications for the Linked Deposit program are also available at eligible lending institutions . For more information about this or other Treasury programs, call the State Treasurer’s offi ce toll-free at 1-800-228-1102. 14

14 Offi ce of the Ohio Treasurer of State, 2007

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Appendix


Appendix

Maps

Full size maps to follow this page.

greenhills study-1182007.indd

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