Numerous Development Subsidies Approved, Despite Controversy, in Cincinnati

Nick Swartsell reports on a glut of development subsidies approved by the Cincinnati City Council earlier this week, ranging from an adaptive reuse project that will convert an historic office building to a 262-unit apartment building, a mixed-use development on the riverfront, and many more projects.

"But not everyone is happy about every one of those deals," according to Swartsell. "Some activist groups have objected to the foregone taxes and the lack of affordable housing in the projects. Boosters, however, say they represent valuable opportunities to spur new construction and efforts to rehabilitate significant buildings in the city."

As noted by Swartsell, the largest project is the aforementioned proposal to convert the PNC Tower, built in 1913, into 262 apartments at the cost of $103 million.

"The city has offered a forgivable $2.5 million loan — $1.5 million upfront and another million that will be released later, after the developer makes $9 million worth of facade restorations. Instead of property taxes, the developers would pay into a tax increment financing district created around the building. Eventually, the city would return more than $11 million from that TIF to the developer. The city would keep another $7.75 million. The project has also received federal Historic Preservation Tax Credits."

The Cincinnati Federation of Teachers is one of the leading critics of this development deal, among the others approve this week by the Cincinnati Council. Additional coverage of the deals, and the debate, is also available from an article by Chris Wetterich, written before the council action.