Vitality Over-the-Rhine to create incentive district

BY KEVIN LEMASTER | BUILDING CINCINNATI

October 29, 2007

 

OVER-THE-RHINE - Vitality Over-the-Rhine has launched an initiative targeted at clean and safe issues and long-term development along the Main Street corridor. The working group, which is composed of professionals with a stake in the neighborhood, is investigating the feasibility of creating a special improvement district (SID).

 

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I thought that this was news worthy and that it might be worth discussing on here.  I know a lot of people on here have a vested interest in OTR...so what do you all think of this idea, and do you have any ideas on what could be done with the money that could potentially come from this?

SIDs require agreement from 60% of owners on a frontage basis or 75% of owners on a total assessed value of a contiguous district basis.

 

It's not easy to get that kind of buy in. The trick is to set the assesment at a level that is acceptable but that can also fund services. They might have to gerrymander the district around agreeable properties. I wish them luck, it's not easy.

 

SIDs (sometimes known as Business Improvement Districts) are public-private partnerships in which property owners agree to a special tax assessment that will be used for anything from development projects to maintenance to additional safety personnel.

 

I am understanding this right?  Are SIDs kind of like a subsidized-commercial version of the residential Home Ownership Association?

 

If so, it sounds like a good deal for the main st. district.  This would give business owners a larger stake in the neighborhood, while protecting their interests.

 

 

 

The most visible local SID, the Downtown Cincinnati Improvement District, has been in operation since 1998 and consists of over 300 property owners.

 

I found This Brochure that offers some good information on the Downtown Cincinnati Improvement district.  Does anyone know what businesses are involved and how successful the district has been?

 

 

Rando, I will sue you for posting my stories!!!  :D

 

Are SIDs kind of like a subsidized-commercial version of the residential Home Ownership Association?

 

Somewhat.  I've heard them be compared to shopping malls, but I don't believe that's a very good comparison either.  It would be closer to a HOA.

 

As for the makeup of Downtown's district, I do not have a list of the property owners involved.  Perhaps you should contact DCI.

The DCID funds DCI. The funding is a formula based on value, which means DCI has a healthy operating budget. Obviously, the OTR SID would be more modest.

 

Essentially, the SID is a way to self-tax and then control that money directly. DCI uses it for promotions, the ambassadors, cleaning, etc. They must be renewed every 5 years.

Although the OTR fund would be more modest, I think it demonstrates a commitment by the members to self improve.  I hope they get buy-in on this.   In the past, OTR property owners were not known for their cooperation on efforts.  Perhaps that is changing.

 

Is there any indication yet of the streets that would be included?

It's not easy to get that kind of buy in. The trick is to set the assesment at a level that is acceptable but that can also fund services. They might have to gerrymander the district around agreeable properties. I wish them luck, it's not easy.

 

 

Is there any indication yet of the streets that would be included?

 

Several possibilities are being looked at now.  And there is more than just the funding and buy in that is at play here. 

*Time to get up and running

*defining an area that will demonstrate a change

 

By including all of OTR it will take us a huge amount of time (measured in years) and although raising more funds, some areas would take a disproportionate amount of resources.  So as it stands, we are trying to narowly focus on an area that we can have up and running hopefully, by mid of next year.

 

Are SIDs kind of like a subsidized-commercial version of the residential Home Ownership

Association?

 

It is more akin to a self government.  The property owners are the ones who decide what services are employed and has taxing powers.  This will allow the owners to fix their own problems without having to solely depend on City Hall to dole out the necessary services to a couple of streets, within one neighborhood within a 52 neighborhood city.

 

And one more point.  The Vitality working group is only in place to get this up and running.  Ultimately, the board of the SID (mayor, one appointed by the City Council, and at least 3 property owners) will make all decisions and the working group will disolve. 

In the past, OTR property owners were not known for their cooperation on efforts.  Perhaps that is changing.

 

I was at a meeting and I overheard some very interesting comments about, or relating to, a lack of cooperation between various areas in OTR - Main Street vs. Gateway vs. Washington Park.  Maybe it was just the one person speaking but I was surprised to hear it.

There historically has been in fighting within OTR at almost every level.  But this is where the SID differs.  The SID is not a new organization, it is not a group who is coming in and saying here is the initiative for you to inact that will solve all of your problems.  The SID is a funding mechanism that will help inact initiatives of the property owners by way of the service plan.  We do not have the answers, the property owners do, and this is a way for them to do the things they need to do.

 

 

Essentially, the SID is a way to self-tax and then control that money directly. DCI uses it for promotions, the ambassadors, cleaning, etc. They must be renewed every 5 years.

 

The etc. part is very important.  It is used to do what the property owners within the defined geography say it will be used for and I would imagine that when polled, the property owners of OTR will differ somewhat from CBD and different property owners will have different visions based on the type of property they own.  That is why it is important to have a board made up of a true mix. And the in fighting that was talked about above can not exist because the service plan will dictate to the board what services are enacted, not the board dictating to the SID.

There is a new official website for the OTR South SID proposal. Residents/property owners who live inside the proposed SID area will be getting petitions in the ballot next week, and they are asking for the petitions to be signed and returned by April 3.

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Proactively work with City and County on built-environment issues (e.g. news racks, sidewalks, benches, bikeways, etc.)

 

Bikeways? That's interesting, but not sure where or how they plan on cutting street parking for bike lanes though

OTR property owners were initially asked to respond by April 3, but due to Covid-19, the deadline is being extended. Hopefully the SID proposal can pull through this and still pass.

The OTR SID has been approved!