Keystone Parke tweaked

Due to a change in the bond market and some unanticipated streetscape improvements, bonds have been re-approved for the Keystone Parke project in Evanston.

City Council unanimously approved the issuance of $4.2 million in economic development bonds for the first phase of the $100 million project.

The bulk of the project's first phase, a 60,000-square-foot office building that will house up to 250 employees, is currently under construction.

Developer Neyer Properties has also added to the first phase a 0.79-acre site at the southwest corner of Dana and Realistic avenues (BIRD'S EYE), which will be developed as a restaurant.

The restaurant was originally scheduled for the project's second phase.

Debt on the bonds will be serviced by tax increment financing (TIF) revenues generated by the development site.

The new arrangement will not change the City's plans to issue $21.5 million in bonds for the entire campus.

At buildout, Keystone Parke will also include a 10-story, 240,000-square-foot office building with restaurant and retail space; a 7-story, 160,000-square-foot office building; a 4-story, 69,000-square-foot office building; and improvements to Evanston Playfield.

Previous reading on BC:
AndyHemmer.com: Green building and Keystone Parke (1/2/08)
Keystone Parke photo update (11/6/07)
City authorizes $71.1 million in bonds for projects (8/6/07)
Keystone Parke TIF agreements established (7/5/07)

TIFs and streetscapes

Yesterday morning I posted a story about the City's desire to float bonds for streetscape projects, which would be paid for through tax increment financing (TIF) district revenues.

Since then, the Enquirer has reported that seven City TIF districts created in 2005 have been rejected by the state of Ohio.

The City had used the same format to create the 2005 districts as it used to create 11 districts in 2002. However, between 2002 and 2005 the state changed the rules to require all property owners within a TIF district to be up to date on their property taxes.

Cincinnati enacted its current TIF policy (PDF) on August 1. The research makes no mention of this change in the law.

TIF districts for Avondale, East Price Hill, Lower Price Hill, Madisonville, Oakley, Riverside/Sedamsville, West Price Hill and Westwood will likely have to be re-drawn and then re-codified by City Council.

City wants to float bonds for streetscapes

The City of Cincinnati wants to float $3.75 million in bonds for improvement projects in five neighborhoods.

The $750,000 that each project would receive would help pay for:

* Intersection redesign and a parking garage in Oakley
* Blighted building acquisition and demolition in Westwood
* General streetscapes on major streets in Evanston, Walnut Hills and West Price Hill

All of the projects are within Tax Increment Financing (TIF) districts. Funds generated from each TIF district will service the bonds.

The ordinances authorizing the bonds are currently in the Finance Committee.

Service agreement, funds for Columbia Square

The City has authorized a service agreement with Al Neyer, Inc. (Neyer) and Columbia Square, LLC for the Columbia Square development at Columbia Parkway and Delta Avenue.

The service agreement sets the terms for the issuance of bonds for each of the project's three phases.

As reported yesterday, the City authorized the issuance of $4.3 million in bonds to help pay for the parking, site improvements and utilities.*

Debt on the bonds will be serviced by tax revenues generated in an already established Tax Increment Financing (TIF) district.

City Council approved the use of TIF for the site in 2003 and codified it by entering into a development agreement with Neyer in June.

The City also has replaced $500,000 taken from the Columbia Square capital project account, which will fill a financing gap and allow Neyer to proceed with their construction loan from National City Bank.

In 2005, the City transferred those funds from that account to cover costs for the Stetson Square project. They recently found a source for reimbursement in three other project funds (figures rounded):

* Retail/Commercial Opportunities 2007: $165,000
* Downtown Housing Development 2007: $95,000
* Neighborhood Housing/Commercial Development 2007: $240,000

Later this month, the City will use these funds--in conjunction with the unspent $150,000 in the project account--to purchase land from Neyer for construction of public surface parking.


The three-phased project

Phase I will consist of the construction of a 49,000-square-foot office building and public parking on the southeast corner of Columbia Parkway and Delta Avenue.

Phase II will be 29,000-square-feet in neighborhood retail buildings on the south side of Columbia at Hoge Street. These possibly could include restaurants and a bank.

Phase III will be a 34,000-square-foot office building on the northwest corner of Columbia and Delta.

Residential uses, which at one time were numbered as high as 72, are absent from current plans.

The project cost is estimated at $23 million.

The city has already spent nearly $850,000 for the local share of the $1.6 million Columbia Parkway streetscape project, which was necessary to make the project feasible.

The streetscape was dedicated June 21.

City authorizes $71.1 million in bonds for projects

Cincinnati City Council unanimously passed six emergency ordinances that will help fund local development projects.

The ordinances authorize the City's Director of Finance to bonds for the following:

* Baldwin 300: $30 million for a public parking garage and other non-enumerated work;
* One River Plaza: $17.295 million for a parking garage, terrace and plaza;
* Cincinnati Encenter: $9.75 million for sidewalks, street lighting, sewers and roads;
* Madison Circle: $5.68 million for roads within the development as well as improvements to Madison Road (including a new traffic light);
* Columbia Square: $4.3 million parking, site improvements and utilities; and
* Keystone Parke: $4.075 million for a public parking garage.

All six projects are located within TIF (Tax Increment Financing) districts. Tax revenues from the developments will service the debt on the bonds.

City approves rezoning for The Yards

At their June 27 meeting, City Council unanimously approved rezoning for Vandercar's mixed use project called The Yards.

The zoning change, to PD Planned Development District (PD 48), means that the City has accepted the concept plan for development of the site, which straddles the neighborhoods of Riverside and Sedamsville.

Vandercar will now need to submit a more thorough final development plan to the City Planning Commission. The City Planning Commission disapproved of the concept plan in March, citing its failure to conform to the existing Land Use Plan and its lack of a fiscal impact analysis.

If ultimately approved, the rezoning will allow Vandercar to channel TIF money into infrastructure improvements to the site. These improvements include raising the site out of the 100-year flood plain, building a retaining wall along River Road, installing sewers and improving the River Road/Fairbanks Avenue intersection.

The $60 million-$80 million project for the old Conrail transfer station on Cincinnati's western riverfront will contain around 1 million square feet of big-box, retail, office and hotel space.

Only one retailer, Lowe's, has signed a letter of intent for a store on the site. Vandercar is still trying to land a second big-box tenant.

A previous estimate for completion -- if the final development plan was approved by this summer -- was around the third quarter of 2009.

A more detailed description of the project can be seen here:
Building Cincinnati: Riverside/Sedamsville: The Yards (5/15/07)

Keystone Parke TIF agreements established

Rendering: Click to enlarge

Cincinnati City Council has approved an ordinance authorizing a service agreement and a development agreement with Neyer Properties for the Keystone Parke office project on in Evanston.

The agreement establishes a Tax Increment Financing (TIF) district for the site of the project's first phase, a $15 million, 67,000 square foot office building.

The TIF district contains land with a Dana Avenue frontage, roughly between Realistic and Floral avenues.

The City also established a TIF fund into which debt service for the issued bonds can be depositied.

The project, which is estimated to cost $100 million, will include three buildings totalling 465,000 square feet of Class A office space.

Streetscapes along Dana Avenue and a refurbishing of the adjacent Evanston Playfield are also part of the project. Parking will be supplied in the lower levels of each of the three buildings and on surface lots.

An early estimate for completion of the three phases was 2010. This has not been officially revised.


Layout of Phase I TIF: Click to enlarge

WINDOWS LIVE BIRD'S EYE VIEW
GOOGLE AERIAL VIEW

City authorizes TIF agreements for Humana HQ

Cincinnati City Council has approved an ordinance authorizing a service agreement and a development agreement with Corporex for the Baldwin 300 project on Eden Park Drive.

Terms of the agreements require Corporex to pay equivalent exempted property taxes directly to the City to pay down debt on bonds that the City will issue. This will help finance an 1,100-space, four-story parking garage. $19.95 million of the $21.34 million garage costs will come from these Tax Increment Financing (TIF) funds.

Corporex had asked the City to establish the TIF district to get financing in place so they could start construction as soon as possible.

To expedite the process, the City removed the 4.4-acre parcel from Walnut Hills TIF District 6 and effected the new district immediately through emergency ordinances.

In addition to the parking garage, the $86 million Baldwin 300 project includes a $45 million, 250,000 square foot office building which will allow Humana of Ohio to consolidate its 900 local employees and to add up to 300 new jobs.

Also included will be a 123-room hotel on the south side of the Baldwin Center. No hotel chain has been named, but it is expected to serve primarily corporate guests.

The project is expected to be complete in 2010.

WINDOWS LIVE BIRD'S EYE VIEW
GOOGLE AERIAL MAP