Community revitalization - Final

Crunch Time for CommunitiesA Business Case For Investing in Neighborhoods

Presentation to:Port of Greater Cincinnati Development Authority Board of Directors

Presented by Darin HallOctober 14, 2015

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Port of Greater Cincinnati Development Authority

By Many Indications – Our Region Is Booming

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Booming: Over the Rhine

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Improving: Population

Cincinnati's population grew for the third year in a row, rising to 298,165 last year – the highest level this decade.

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5 Looking Forward“What are we doing to ensure that we are all empowering

communities to participate in the prosperity?”

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Many Neighborhoods have been left behind

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Poverty continues to undermine the American Dream

That is more than 1 in 10 Americans

48.8 million Americans live in poverty1

48.8 million > the entire populations of Canada, Denmark, and Ireland combined

of children born to parents in

the bottom fifth of the economic distribution remain in the bottom as adults2

23% rise only to the second fifth2

1 U.S. Census Bureau, American Community Survey Briefs: Household income – 2012, 2National Center for Children in Poverty “Child Poverty and Intergenerational Mobility”

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Children experience poverty at even higher rates

16.1 million children live in poverty

That is 1 in 4 American children

Of poor children live in concentrated poverty

Concentrated poverty: >30% lives below the poverty line

Childstats.gov Forum on Child and Family Statistics http://www.childstats.gov/americaschildren13/eco1a.asp

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Living in concentrated poverty often has dire implications for childrenof 3rd graders living in concentrated

poverty read below grade level• 2x as many adults living in areas of

concentrated poverty lack a high school diploma

• Residents of areas of concentrated poverty can experience 12 times higher homicide rates.

That is more than 6 out of 7 children Annie E Casey Foundation :”How Third Grade Reading Skills and Poverty Influence High School Graduation” http://gradelevelreading.net/wp-content/uploads/2012/01/Double-Jeopardy-Report-030812-for-web1.pdf

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Port of Greater Cincinnati Development Authority*Key Drivers for Inner City Growth – Michael E. Porter

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RAJ CHETTY, ECONOMIST

In climbing the income ladder

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Raises health expenditures by

Raises the cost of crime by

Reduces productivity and economic output by

$150 billion

$160 billion

$160 billion

The total costs to the United States associated with childhood poverty equals

$500 billion per yearSources: Center for American Progress (2007)

It is estimated that childhood poverty…

The human and economic costs of childhood poverty affect everyone

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Cincinnati Life Expectancy

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These Same Areas Report:

• Higher Crime Rates

• Less Home Ownership

• More Condemned Structures

• Largest Population Decline

• Less Employment

• Lower Life Expectancy

• Higher High School Drop-Out Rates

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Comprehensivecommunity revitalization strategy to move region forward

If we don’t…

If we do…

Provide thought leadership on one of county’s most pressing issues

Build capacity of community organizations

Use our professional approach to convene, partner and bring best practices

Benefit municipalities: more property tax, more income tax,

less cost for crime and blight

Improve lives of residents better housing, access to jobs, less crime,

more amenities, opportunities for engagement

Improve lives of residents better housing, access to jobs, less crime,

more amenities, opportunities for engagement

Disinvested neighborhoods have higher crime and blight

Disinvested neighborhoods have higher crime and blight

Loss of competitiveness few homes for millennials; lack of development sites

Loss of competitiveness few homes for millennials; lack of development sites

Fragmented organizations working in silos; wasted resources with little results

Fragmented organizations working in silos; wasted resources with little results

Tale of two cities:economic stratification continues

Continuing decline of property valuesContinuing decline of property values

Less blight and crime

No income tax from vacant homesNo income tax from vacant homes

Importance of Revitalization

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We Have a Dream

• Healthy, Vibrant neighborhoods where people feel safe have opportunities to work and great housing options

• This is now a national conversation with experts from many different “silos” working to develop & execute cross functional strategies to drive change into disinvested neighborhoods

Non-profit consulting firm that works side-by-side with local leaders to plan and implement a holistic revitalization effort.

Nonprofit research and strategy organization and the leading authority on U.S. inner city economies and the businesses that thrive there.

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What We Can Do

REBUILD THE RIGHT NUMBER OF HOMES IN THE RIGHT AREAS

REVITALIZE BUSINESS DISTRICTS

SUPPORT/DEVELOP LOCAL COMMUNITY

LEADERSHIP

BUILD WEALTH IN NEIGHBORHOODS

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Intentional Approach: How We Select Neighborhoods

• Community invitation

• Eliminate blight & dangerous crime hot spots

• Anchor Organizations

• Lead Organization (capacity)

• Established Housing Plan

• Acute disinvestment & fallout from foreclosure crisis

• Additional City/County resources

• Private developers already working in neighborhood

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Scalability

• Developed a collaborative model for community revitalization to address multiple communities

• 10 neighborhoods over 10 years

• Roles are different in each neighborhood

• Model allows us to respond to varying community needs

Some neighborhoods will have:

• Disinvested commercial & neighborhood business district, no lead community partner

• No residential housing market, disinvestedbusiness district, strong stakeholder & community partnerships

• Redevelop commercial and business districts, catalyze high performing lead organization

• Eliminate blight, reestablish residential market & business district

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Intentional Approach: Economic Inclusion

Project Type % MBE % WBE % SBE Comments

HCLRC (Landbank) 26% 24% 54% Includes demolition of housing and stabilization

Aspirational Goal 25% 7% 30%

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21Work Has Begun: Bond Hill, Roselawn & Evanston

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Bond Hill + Roselawn Project Summary

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Bond Hill + Roselawn Project Summary

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Team Facilitation

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Workforce Development –Lawn LifeStarted with simple yard maintenance

They have grown into an important REACH Evanston partner

Since March 2014, Lawn Life has employed around 80 people - nearly half of those people have worked on REACH projects

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Community Partner – Building Value

• Has employed 32 associates in the workforce development/transitional employment program

• Has resulted in 10,960 training hours

• 85% of graduates stay on with full-time jobs for a year or more after graduating from the program

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27 Revitalizing Business Districts: Closing the Gap

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Knowledge

Networks

Capital

MarginalizedCommunity

EntrepreneurialEcosystem

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Communities can transform by closingthe microbusiness gap ‐ families will

be better supported by localbusinesses; vacantbuildings will

become occupied;and outsiders willvisit more often

Stimulating the “right mix” of K,N, and C

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Healthy Neighborhoods Comparison

Study by Emory University

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Business District – Historic Stabilization of OMAR

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31Revitalization Requires Strong Partnerships, Patience and Capital

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How We Gain Momentum

• Revitalization Requires Strong Partnerships, Patience and Capital

Invest Build Raise

Continue to invest in national best practices, research and policy advocacy

Build our team in number and expertise to accelerate work

Identify additional revenue sources to accelerate work and impact

- Dr. Michael Porter, Harvard Business School & Founder of ICIC

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Estimated Investment

• $4.5 million per community• $4M real estate, $.5M soft costs

– Of the $4.5M, $3.2 residential, $.8 commercial• 90% renovation, 10% demo for residential

• Homes start to sell in year 2, lots all in year 5• Takes until year 5 to sell commercial lots• Need $2.5 million additional annual revenue

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What is Our Intended 10 Year Impact?

10 communities

300 homes

50commercial

acres

400,000 sq feet and 130 new

businesses

$ PropertyTax

Revenue ROIDecrease in poverty

Increase neighborhood leadership

Decrease in crime

Blight removal

Opportunity for community

entrepreneurism

Attraction of new residents

Accelerate development

Raise housing market values

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We Have A Dream• Core to our work• Accelerate and amplify our initiatives• Encourage job creation• Facilitate capital access• Diversify Hamilton County’s economy

Documents

Community revitalization - Final