Qualls on The Banks

One of the most important decisions that Cincinnati City Council will make over the next few years will be its decision on The Banks, that area of Cincinnati's central riverfront between Paul Brown Stadium and the Great American Ball Park. I was closely involved with this project when I was Mayor. I and the City Council partnered with the Hamilton County Commissioners and jointly retained Urban Design Associates to develop the Central Riverfront Master Plan. Council and the Commission then jointly appointed the Riverfront Advisors Commission that issued its report, The Banks, in September 1999. Both of these documents were the product of extensive community input and direct involvement of key stakeholders. They became the documents that to date have guided the development of The Banks.

Recent media coverage has focused a lot of attention on issues that have arisen as the result of the Cincinnati City Planning Commission approving a Planned Development (PD) for the Banks that increased the allowable density of the overall project. This is only one of three items that will come before the council for approval. The other two are the Development Agreement with the developer and the Cooperative Agreement between the City and the County. City Council must approve all three for The Banks to proceed.

There are other issues not addressed to date by any of these documents that relate to the quality of the design and architecture of The Banks. It is very important that the highest standards of urban and architectural design be established and that we do not get a functional, but mediocre product. It is important to incorporate the visual arts into the design and construction. It is important that the design and construction of the entire Banks built to at a minimum to the United States Green Building Council's (USGBC) LEED silver standard.

Why is it taking so long to get The Banks done?

City leaders have envisioned a vibrant, central riverfront since the 1940's. If it were easy to achieve this goal, past generations of civic leadership would have done so.

The original Riverfront stadium was intended to jump-start the redevelopment. It did not. Why? First, because the riverfront is in a floodplain, and any development must be built on structures that raise them out of the floodplain. This is very expensive. In fact, in 1997 the estimated cost to construct the garages that would raise the development out of the floodplain was $100 million. Second, Fort Washington Way was a gigantic cavern that had more exits and entrances in a two-mile stretch of expressway than any other stretch of expressway in the country. Pedestrians literally took their lives in their hands when trying to cross through traffic to get from the riverfront to downtown. Fort Washington Way had to be put on a "diet" if the riverfront and downtown were to connect. Fort Washington Way was cut in half, but financing of the garages to create the base for the development became a major obstacle.The original sources of revenue did not materialize, and in the meantime the City of Cincinnati has contributed substantial amounts of its own capital funds to streets and roads at the riverfront. The City of Cincinnati will have to contribute more for the project to move forward.

What are the Issues?

Numerous issues have arisen and will arise based upon the content specific to the Planned Development (PD) Concept Plan, the City-County Cooperative Agreement, and the Development Agreement.

1. The Planned Development (PD) Concept Plan as approved by the Planning Commission

The Proposed Changes

The recent coverage of The Banks has focused on issues involving the revised concept plan. The concept plan was approved by the Cincinnati Planning Commission on August 16th. The revised plan increases the amount of allowable development from 1.4 million square feet and a maximum height of 16 stories to 2.8 million square feet and a maximum height of 30 stories. The maximum amount of retail space has increased from 300,000 square feet to 400,000 square feet. Residential space increased from 745,000 square feet to 1.8 million square feet. Office space increased from 200,000 square feet to 1 million square feet. Hotel space increased from 200,000 square feet to 400,000 square feet.

The developers have proposed the increased density because they believe the increase is necessary to make the project both financially feasible and to insure that there is sufficient density to support retail and other commercial activity.

The following are three of the key issues being raised by a number of downtown office owners and managers.

A Changed Vision:

The Riverfront Advisors Commission, a group of Cincinnati citizens appointed by the Cincinnati City Council and the Hamilton County Commissioners, created a comprehensive development plan that was approved by the city in 2000. It was the product of extensive community input, and discussions with numerous downtown stakeholders, all of which produced a pedestrian-oriented, neighborhood plan that complemented, rather than competed with downtown Cincinnati.

Many downtown property owners and investors made investment decisions based upon an approved plan that was to guide the mixed uses and the form of any development at the riverfront.

Negative Impact on Downtown:

It is estimated that there are 2.2 million square feet of vacant office space in downtown Cincinnati. This includes Class A, B, and C space. It would be preferable to get Class B and C space off the market by converting as much as possible to housing. The result would be that Class A space may be able to start getting the rents needed to support it and eventually encourage new space.

The revised concept plan would allow an additional 800,000 square feet of commercial space at the riverfront. A major question is whether this office space will "cannibalize" downtown space and further erode values. This question is especially salient given the recent investment in the area surrounding Fountain Square for the purpose of reinforcing and increasing property values. The strategy behind Fountain Square was to work out from the Square in concentric rings to improve property and increase values.

Making Worker Parking Scarcer:

Many of the workers in downtown office buildings rely on access to affordable riverfront parking. The lack of viable transit in the region and the dependence on cheap parking combine to make the displacement of worker parking from the riverfront a very serious concern. Monthly parking at the riverfront currently costs about $50-60. Once the garages are built the cost will be between $120-$150 per month. This will price parking out of the reach of many administrative support personnel who earn from $25K-$35K a year. One possible consequence of this could be that downtown businesses would choose to leave the city for suburban locations with "free" parking when their leases expire. Another consequence would result in pressure on the fringe of the central business district to tear down buildings to create more cheap surface lots.

2. The Cooperative Agreement

City of Cincinnati and Hamilton County will enter into an agreement that will govern a number of items. Among them are the oversight of the project, the role of each political entity, the financial contributions of the city and the county, and how each jurisdictions contribution will be credited.

For Phase 1A the City of Cincinnati will put at least $22 million more of its capital funds into this deal. Hamilton County will contribute about $17 million. The balance is from different federal and state sources with a minimal contribution from the developer. As of last week, the total cost for Phase 1A was an estimated $75 million even before any of the residential and commercial are built. Phase 2 will require a minimum additional contribution from the city of $14 million.

The Cooperative Agreement should outline in very specific detail the means by which the project will be competently managed and how management will be accountable to the city and the county. As of today, the council has not seen a proposed agreement.

3. The Development Agreement

The Banks Working Group is negotiating with the developer. The City Council has not seen the agreement. This will be a very detailed document that will spell out a long list of requirements, some related to performance and timing. It will include provisions to protect the publics' investment in the event the developer fails or decides to exit the deal. At this point any discussion of specifics is impossible. I will share the agreement with you once it is put in front of council.

The Banks will be the "front door" to Cincinnati and the region. It will take many years to fully build out. Once completed, it should be our generation's proud legacy to future Cincinnatians. While we proceed to realize this legacy we cannot be afraid to ask questions, consider unanticipated consequences, and deal with this decision with the critical, hard-headed thinking that it demands. If we are unafraid of questions and challenges and we are willing to address the legitimate concerns, we will insure that The Banks will be the focus of pride that the entire community desires. The decisions regarding The Banks should not be made in the heat of the campaign season. They are much too important.