Forest Park K-Mart Study

Transcription

Redevelopment Strategies for the
Former K Mart Property in Forest Park
Prepared by:
Hamilton County Development Company
Economic Development Office
June 2007
Table of Contents
Section
Page
Executive Summary..................................................3
Introduction..............................................................5
Existing Conditions.................................................. 6
Redevelopment Options..........................................17
Conclusions..............................................................33
Appendix
Demograhics..................................................35
Maps...............................................................41
Forest Park - Former Kmart Property
2
Executive Summary
Hamilton County Development Company‘s Economic Development Office conducted a study of the former K Mart site located at
the corner of Hamilton Avenue and Waycross Road. For over a decade this property lay fallow, as other commercial spaces in the
immediate area followed it into decline.
The Economic Development Office (EDO) has taken an extensive look at the K Mart site, proximate properties, and retail/service
alternatives readily accessible in the greater area. It has conducted interviews with governmental, business, and development
interests in search of options for re-use. EDO also investigated possible re-use categories in terms of supply & demand, relative
marketability, and suitability. Lastly, we reviewed a range of site expansion options based on maximizing the prospects for
redevelopment and mitigating negative site impacts.
A majority of the information and observations in this study will be familiar to local officials and other interested parties in Forest
Park. The community’s reputation in economic development is highly regarded among other practitioners in the region. Our charge
has essentially been to bring new eyes to the K Mart issue. To its credit, Forest Park has taken a decisive step in purchasing the K
Mart site. One cannot overstate the benefit of local control. This is especially significant in light of more than a decade’s worth of
frustrating attempts to stimulate the site’s redevelopment.
We cite the accessibility afforded by quick access the I-275 interchange at Hamilton Avenue. Of additional note is that the
scheduled roadway improvements upgrading Hamilton Avenue from two to four lanes greatly increases development. The 21,700vehicle daily traffic count will now flow more freely and permit the area to capitalize on the road improvements.
Though there is always a distinct possibility of attracting a more traditional user to the study site solely on the basis of excellent
highway access, our study advocates exploring uses that will broaden further development for the Hamilton Avenue interchange.
This study cites several observations that we feel are imperative regardless of specific redevelopment choices:
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Expect a long-term timeframe: Local officials should consider this redevelopment program as a long-term effort. Accordingly,
once cleared, it will likely remain in that state for some time. Contemporary market information used to evaluate redevelopment
options should be updated periodically.
»
Purchasing and clearing the K Mart site alone will not be enough to foster a realistic development: Though K Mart’s
exodus from Forest Park may have initiated much of the decline, properties located in close proximity in neighboring
Springfield Township have become equally blighted. The final site configuration must be as large as necessary to eliminate the
negative impacting elements. Given the sizeable expense involved in this venture, the redevelopment partners should outline
acquisition phases, securing options that correspond with those phases.
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Forest Park should form a Joint Economic Development District (JEDD) with Springfield Township: This is both a more
potent and equitable development vehicle for improving the study area. Public improvements, land acquisition, and possible
relocation expenses will likely be involved.
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Decline has accelerated: Lower-tier businesses continue to occupy marginal properties. The stretch of Hamilton Avenue from
Roosevelt Drive to Waycross Road contains five “payday” lending businesses. Perhaps more distressing, Dollar General, usually
one of the first businesses attracted to areas with depressed real estate, has moved from its Waycross Point location.
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Crime and the perception of decline continue to plague the area beyond deteriorated real estate: Multiple social issues in
the Seven Hills and Roosevelt Dr. areas need aggressive enforcement by agencies involved with the various elements of this
problem.
3
Executive Summary
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As sites are acquired, they should be swiftly converted to green space: Structures that lay fallow in long-term vacancy or
languished with lower -tiered tenants and diminished maintenance reinforce the perception that the area is in accelerated
decline. Green space signifies a new start for the property. A cleared site provides the opportunity to market interest in
redevelopment aggressively.
We recommend several options that may lend themselves well in terms of strengthening the I-275 interchange.
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Lodging for business travelers: Though a major addition to Forest Park’s hotel community waits with the Marriot Corporation’s
planned conversion of the former Auto Nation site on Winton Road to a full-service, business-meeting hotel, we predict the
potential and need for an extended stay business-oriented lodging with accompanying amenities on out lots at the Hamilton
Avenue interchange.
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Outpatient Medical Facilities: These units are the primary source of outpatient treatment in today’s medical paradigm.
Facilities typically affiliate with the larger, local medical alliances. The study site’s quick access to I-275 is an attractive
recruitment tool.
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Senior Uses: A growing senior population has stimulated an expansion of goods & services, residential communities, assisted
living, etc. Demographics in Forest Park and the overall area suggest an aging population. Facilities for the growing senior
population are rapidly diversifying. The field is no longer limited to residential and assisted living complexes. Wellness centers,
professional medical offices, food, and retail often accompany these more traditional facilities. This demographic will continue
to generate development possibilities.
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Increased educational and human services presence: The Civic Center North area brings together a broad range of public
services oriented toward education and related human services. The Cincinnati and Hamilton County Public Library’s North
Central branch, the Hamilton County Educational Services Department, and the Hamilton County Sheriff’s Department each
front Hamilton Avenue. This presence can conceivably be extended across the avenue to similar facilities on the K Mart site
After exploring traditional office, commercial, and retail development categories, it is our opinion that these options present
relatively weak prospects. Declining local demographics, weak demographic support form surrounding jurisdictions, proximate
declining properties, and insufficient size for development of a park-like or other communal business setting hamper this site.
Lastly, current local initiatives in new office/commercial imply a continuing marketing and promotional commitment. Attempts to
promote similar, though isolated development on the study site would appear to detract from those initiatives.
4
Introduction
Hamilton County Development Company (HCDC) conducted this study for the City of Forest Park with funding provided by The U.S.
Department of Housing and Urban Development’s (HUD) Community Development Block Grant funds (CDBG) allocated by the
Hamilton County Board of County Commissioners.
An older, built-out community, Forest Park is an example of the first wave of suburban development in the two decades following
World War II. The community stands as a strong example of the “first suburbs,” older suburbs that currently face issues relating to
housing, the retail/service sector, and the scarcity of “development-ready” sites.
Though the region has seen a significant expansion in new development, much of it has been at the expense of older, suburban
communities in Hamilton County. The rapid growth of residential and commercial development has radically changed the face
of formerly small communities to the north and east of the Cincinnati beltway. Though development has been vigorous in these
areas, an increasing regional population has not driven it. The new, high growth suburban phenomenon is in large part the result
of present residents relocating within the region. The region as a whole is not growing.
This study examines redevelopment prospects for the long vacant structure at the corner of Hamilton Avenue & Waycross Road on
Forest Park’s western border. Redeveloping this former K Mart site has eluded Forest Park for more than a decade.
The site’s long-term vacancy reflects the fundamental changes in the retail/service business paradigm and significant demographic
shifts in the Cincinnati area.
These recent shifts represent rather different phenomena when viewed through different lenses. Economic and community
development practitioners view this latest exodus as suburban sprawl. Developers and the welcoming jurisdictions see the
trend as robust, market-driven growth, with new housing options, fresh opportunity in schools, lifestyle changes, and an overall
identification with affluence and achievement.
The challenges of meeting market competition, creatively re-using real estate, and assembling land in a built-out environment are
daunting. Forest Park officials are no doubt familiar with most, if not all the points made in this study.
It is our hope that data, insights, and recommendations offered in this document will aid Forest Park in its strategic approach to
redevelopment at the subject site.
At this writing, Forest Park has successfully acquired control of the K Mart site at Sheriff’s Sale, with the community finally gaining
the ability to eliminate a blighting condition and plan for its re-use. To some, this may represent an almost cathartic event, given
that the abandoned site has been a grim reminder of business loss and the accompanying revenue.
The professional real estate industry tends to “write off” properties neglected by owners, leased to marginal tenants, or subjected
to long-term vacancy. Under city ownership, a thoughtful, realistic, redevelopment plan can transform a formerly derelict property,
into one that can attract new attention from real estate and development interests.
Obviously, it is unrealistic to expect a community to embark on a property acquisition program as a long-term strategy for protecting
its interests. Purchasing the K Mart property represents a rare opportunity. The purchase with public assets, however, signifies the
community’s commitment to reverse perceptions of a commercial area in decline.
This study will examine several basic demand elements, determining Forest Park’s demographics and market strength.
5
Existing Conditions
Full size maps maybe found in the Appendix
Forest Park is widely regarded as one of the most ambitious residential real estate ventures in Cincinnati’s early suburban
development. Driven by the housing boom of the 1950’s and 1960’s, as well as the idealism of planned communities, Forest
Park’s development concept and its residents’ ambitions found full expression in a comprehensive, community plan.
Forest Park’s developers at first envisioned their development as an extension of the Village of Greenhills, one of the three
pioneering Federal WPA era efforts to provide equitable, affordable housing in a socially and environmentally planned setting.
Forest Park’s community vision was considerably less doctrinaire. The development plan acknowledged the need for recreational
areas, commercial districts, sites for churches and synagogues, and a range of residential sizes and price points. In addition, it
made provisions for office, commercial, and light industrial areas. Its community plan extended to establishing an egalitarian,
integrated community, the first in a suburban setting.
With 18,069 residents, Forest Park is Hamilton County’s third largest city, with excellent transportation linkages to major interstate
highways I-71, I-74, and I-75, proximity to Hamilton County Park District’s Winton Woods, and a solid, diversified business base.
The city continues to be committed to the founders’ legacy of a diverse multi-racial, ethnic, and socio-economic residential
community in a suburban setting. Economic and social change continually exerts new pressures on sustaining that legacy.
Forest Park has matured to the point that it boasts established community institutions, families that have raised a generation of
children, and residents who remain strongly committed to the community’s historic ideals. Its vulnerability is in large measure
determined by its ability to compete in a much larger development environment.
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Existing Conditions
The Kmart Site:
The subject site is located at 2215 Waycross Road (Parcel ID 591-0026-0044-00) on the southeast corner of the intersection of
Hamilton Avenue and Waycross Road. The full site encompasses 8.162 acres, with a 68,160 sq. ft. structure. Parking is extensive,
with access lanes running from out lots to the main shopping area. An aerial map below provides a broader view and setting for
the study site pictured on the previous page.
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Existing Conditions
Adjoining property:
Waycross Point: This 3.06-acre commercial site’s listed address is 2219 Waycross Road. The development contains 26,750 sq.
ft. of commercial strip space. Daffin Jolly Investments, a local Cincinnati entity, owns the property. A tower sign is located at the
Waycross/Hamilton corner. The K Mart structure and Waycross strip property share a common wall. Waycross Point is on the
market with an asking price of $1.12 million.
The following photograph illustrates Waycross Point’s tower sign dominating influence over the landscape at the corner of Waycross
Road and Hamilton Avenue.
Waycross Point Tenants include:
Dollar General, until recently, the center’s anchor tenant, closed its store and vacated the facility. Many economic & community
development interests consider this company’s appearance as a harbinger of an area’s commercial and demographic decline.
Ironically, it has been unable to conduct the required business to sustain operations at this location.
Aside from the perception that it is a lower-tiered business, Dollar General pioneered the “dollar” concept. It is a formidable and
well capitalized, Fortune 500 Company with 8,164 stores located in 30 states, granting it a major presence in the convenience
store industry.
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Existing Conditions
Overflow Ministries: Is a non-denominational religious congregation with 250 members. As of this writing, it is the strip center’s
dominant tenant. The congregation utilizes additional space for related activities. In addition, there are two unrelated businesses
involving computer repair and tax preparation.
The organization supports a number of community-based enterprises. There is a K-6 private religious school, a day care facility,
and motivational/educational programs organized under a separate, non-profit corporation.
The congregation’s pastor, Bennie Fluellen, outlined an ambitious growth program during an interview conducted in the early
phase of this study. The business plan, however, was unclear and/or undeveloped. A portion of the organization’s agenda is
to fill community needs neither fully serviced nor found within Forest Park’s government-sponsored programs. Recreational
opportunities for local youth appear to have an especially high priority.
Overflow has a land contract or other installment agreement that according to the Pastor, applies rental payments toward future
ownership equity. Considering Dollar General’s recent exodus, the property would no longer appear to be a reasonable option.
Overflow submitted a bid of $801,000 for the K Mart site at its first sheriff’s auction on June 29, 2006. The opening bid was set at
$800,000. Officials declared Overflow’s bid invalid when it was unable to produce the 10% cash requirement to bind the sale.
The Waycross Point property’s footprint extends over the Forest Park city border into neighboring Springfield Township.
Dollar General’s departure will no doubt have an impact on the current ownership’s prospects for selling the complex.
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Existing Conditions
Properties with frontage on Hamilton Avenue:
Cashland: Originally a Burger King Franchise restaurant, the current tenant occupies a 1.21-acre site fronting Hamilton Avenue,
with an address, however, listed as 2299 Waycross Rd. The 3,000 sq ft building was constructed in 1982. The property owner is
the J & E Investments Limited Partnership, located in West Chester, Ohio. This property is currently on the market @ $299,000.
The listing notes that the property is a prime candidate for a 1031 tax trade.
Cashland is a “payday loan” business. The enterprises are widely perceived as harbingers of commercial and economic decline.
In addition, this financial services category has been the subject of numerous predatory lending allegations. Cashland’s presence
strongly implies that the local customer base is economically unstable and lacking in traditional institutional financial facilities.
There is no commercial bank presence in this portion of Forest Park.
This business is an uncomfortable fit in a building quickly identified with a fast food franchise. Once again, a common perception
links this tenant with the businesses failure of the original occupant.
Taco Bell & Pizza Hut: This combination unit occupies the second 1.0-acre site.
The Taco Bell Corp., headquartered in Memphis, Tennessee, renovated this structure in 2002. Its bright colors and clear branding
typify a contemporary operation. The new multi-brand configuration reflects the current wave of consolidated food brands on a
single site. One assumes that the facility’s high maintenance level is an indicator of its successful business volume.
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Existing Conditions
Surrounding Area:
Civic Center Shopping Center
Located just north of the study site, Civic Center is a 94,972 sq.ft. retail strip center, with significant long-term vacancies, most
notably Thriftway and Blockbuster Video. When Thriftway, Cincinnati’s second largest local grocery chain left the market, the
company offered the store locations to Kroger. Kroger selected several sites. The freestanding store at Civic Center was not among
them.
A second, large, vacant structure formerly occupied by Blockbuster Video, sits within the complex, bordering Waycross Road. It has
been vacant over a year. The brand, however, relocated to the Kemper Road retail strip containing a large, Kroger. Hollywood Video
competes with Blockbuster from its location at the southeastern corner of the Kemper/Winton Road intersection.
The Blockbuster Video site, though long vacant, is well maintained. Civic Center’s leasing agent from Phillips Edison & Company
is aggressively marketing the facility for re-use. The firm considers a grocery operation as a highly desirable candidate. The strip
retail has a number of vacancies that Phillips Edison stated are relatively easy to lease to small, independent tenants. Though the
two larger freestanding buildings are a challenge, the center overall is well maintained. Each of the three supporting out lot uses,
Frisch’s, Arby’s, and McDonald’s, appears stable. Civic Center is just south of the I-275 exit, serving a local as well as transient
clientele.
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Existing Conditions
Hamilton County Civic Center North: Residing on Hamilton Avenue, across from the shopping center bearing its name, Hamilton
County has developed a commercial park, making sites available to educational and human services entities, including the
county’s Mental Retardation and Development Disabilities Center and daycare facilities. The Hamilton County Educational Service
Center fronts on Hamilton Avenue.
The Cincinnati & Hamilton County Public Library: The North Central regional branch facility on Hamilton Avenue is just north
of the Hamilton/Waycross intersection. The North Central branch seeks out and caters to students, their families, seniors, as
well as the casual library patron base. Libraries generate visitors who can also be shoppers or diners. The scheduled roadway
improvements widening Hamilton Avenue will likely include improved pedestrian access to the opposite side of Hamilton Avenue.
The branch is a significant community asset, frequently overlooked in economic development discussions.
The Hamilton County Sheriff’s Department: The County has a large complex to the south on Hamilton Ave. The Civic Center
Commercial Park, an area developed by Hamilton County in neighboring Colerain Township sits behind the offices. The broad
tenant mix is a good market for the restaurants currently located on Hamilton Avenue and other convenience uses that might
locate in the shopping center.
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Existing Conditions
Proximate Housing:
Apartments, back up to the study site and the adjoining strip center. There are three additional apartment complexes running
east on Waycross Road. Their physical condition improves as one travels east. Businesses located across Waycross Road cite
few instances of problems from these areas. Future site configuration must provide for sufficient buffering from these apartment
units.
Seven Hills Drive and Roosevelt Avenue: contain a number of poorly maintained and partially vacant multi-family housing units.
The housing stock shifts to single-family dwellings as one drives further into the neighborhood. There are, however, numerous
single-family home rentals and other residences in a poor state of maintenance and repair. The Springfield Township Police
Department reports a disproportionate number of runs to Sector 14, the area that includes the aforementioned residential &
commercial property. This two-block area is significant in that it further reinforces the perception that the area is in decline. Multifamily properties run along the site’s eastern boundary. Buffering the proposed project is essential for aesthetic and security
considerations.
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Existing Conditions
There is a dilapidated structure approximately fifty yards from the corner that bills itself as a village food store. It resembles a
roadside farm stand.
The relationship between this housing community and myriad social problems within the commercial area is no mere coincidence.
Law enforcement and other agencies need to improve conditions generating disruptive and criminal behavior if there is to be
significant redevelopment at the study site and other properties within the commercial area.
Hamilton Avenue:
The avenue has experienced considerable vacancy and a lower tier of replacement users. Between Seven Hills Dr and Waycross
Road on the avenue’s west side, there are 5 auto-related users, including a regional chain auto parts store, three repair facilities,
and a used car lot specializing in a high risk [credit] clientele. A La Rosa pizza restaurant and a self-storage facility complete the
business grouping.
The east side of the avenue consists of out lots from the 7 Hills Center that include 2 payday loan stores, a Taco Bell restaurant,
and a vacant Mexican restaurant. At Seven Hills Drive, a newly constructed five bay concrete block retail building currently houses
three tenants, a fish/chicken restaurant, a loan office, and a tax preparation enterprise.
Businesses set back further from the road consist of a large full service car wash, an oil change facility, and a regional chain auto
parts dealership.
The quality of uses improves as one moves north, bolstered to a significant degree by public/governmental facilities in the Civic
Center North Park and the well maintained out lot restaurants in front of the Civic Center Shopping Center.
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Existing Conditions
Demographics:
The local community’s demographic profile appears to explain the appearance of marginal, lower-tiered businesses.
Forest Park faces several challenges:
Population loss is accelerating: Between 2000 and 2005, population loss was 5.6%. Projected loss from 2005 to 2010 is at
an accelerated rate of 6.3%. The obvious concern here is the community’s ability to sustain itself. The lifeblood of any community
is new residents. Public services, schools, institutions, and a community’s social fabric depend upon successive generations
of residents to maintain quality, growth, and progressive ideas. There is an economic dimension as well. Real estate valuations
reflect population growth or loss. Though the county is losing population as a whole, individual community losses are not equally
distributed.
Households are similarly decreasing at an accelerated rate: The rate of decrease, however, is also accelerating. Households
numbered 7505 in 2000, 7243 in 2005, and projections for 2010 indicate a further decrease to 6900. Traditional household
structure strengthens the market for a community’s single-family homes and is a general barometer of stability.
Housing units are decreasing with the same pattern: Housing loss represents residences demolished pursuant to condemnation
orders, structures destroyed by fire, and those lost to natural disasters.
Increasing Median Age: This figure indicates that the community is aging. As the population ages, incomes become more
moderate, individuals or couples move from larger family homes to smaller, more efficient housing for retirement. In a majority of
cases, they leave the community to find this housing. Though people age, retire, and often leave the community, young families
are not replacing them. These residents power new generational cycles that sustain communities.
Owners vs. Renters: As the population decreases and total housing units decrease, the ratio of owners to renters will change
slightly in favor of renters. It is fair to assume that an increased number of traditional single-family homes are entering the rental
market. Homeownership was the driving force in suburban development. It continues to be a basic benchmark of stability in
suburban communities.
Household Size: This category shows modest decreases from 2000 through 2010. The rate of decrease however, accelerates
through the projection span.
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Existing Conditions
2005 Claritas Intelliset Demographics
Source: Claritas, 2005.
Forest Park - Kmart Site
1 Mile Radius
Forest Park
Hamilton County
2005 Population
13,265
18,376
812,803
2005 Population Density (per Sq. Mile)
2,297
2,823
1,995
2005 Households
4,935
7,243
337,837
2005 Household Density (per Sq. Mile)
855
1,113
829
5,088
7,481
363,641
2005 Housing Unit Density (per Sq. Mile)
881
1,149
893
2005 Median Age
34.2
35.9
38.20
Land Area in Square Miles
5.8
6.5
407.37
2005 Housing Units
2005 Median Value, Owner-Occupied Housing
Units
$115,591
$116,667
$122,736
2005 Average Household Size
2.68
2.52
2.35
2005 Population Age 15+ Never Married
2939
28.94%
4,278
29.38%
199,213
30.79%
2005 Population Age 15+ Married, Spouse
Present
5703
56.15%
7,377
50.66%
306,973
47.44%
2005 Population Age 15+ Married, Spouse
Absent
270
2.66%
459
3.15%
28,365
4.38%
2005 Population Age 15+ Widowed
482
4.75%
796
5.47%
47,374
7.32%
2005 Population Age 15+ Divorced
Total Population Age 15+
762
7.50%
1,653
11.35%
65,113
10.06%
10,156
100.00%
14,563
100.00%
647,038
100.00%
2005 Owner Occupied Housing Units
3,433
69.56%
4,504
62.18%
204,819
60.63%
2005 Renter Occupied Housing Units
1,502
30.44%
2,739
37.82%
133,018
39.37%
2005 Per Capita Income
$22,680
$24,553
$27,603
2005 Median Household Income
$55,612
$53,557
$53,557
2005 Average Household Income
$60,948
$62,013
$65,749
Aggregate Household Effective Buying Income
$25,586,726
$352,197,500
$17,715,012,500
Aggrgte. Hshld. Effective Buying Income Density
(per Sq. Mile)
$4,431,369
$54,109,310
$43,486,723
Median Household Effective Buying Income
$44,410
$43,450
$43,450
Average Household Effective Buying Income
$47,794
$48,626
$52,437
Observations: These demographic categories relate to the entire community of Forest Park. The study, however, concerns the
community’s western edge, a corridor that has suffered inordinate long-term vacancy, lower tiered replacement tenants, and
problematic multi-family units proximate to the study site. Demographics apply to an area within a 1-mile radius.
The accompanying Appendix includes a full demographic profile.
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Redevelopment Options
General Goals:
As an economic and public policy undertaking, the K Mart site redevelopment needs to address several concepts that are
common to Forest Park’s particular situation as well as those of other, aging suburban communities previously referred to as
“First Suburbs.”
Overcoming the limitations of the “built out” community: Offer the site as “build ready.”
New development where possible, seeks “the path of least resistance.” The built out status of older communities is the key
impediment to site selection in this development paradigm.
In an urban, industrial setting, environmental remediation is the characteristic physical hurdle. In suburban settings, this is still
an issue, but considerably less the case than vacated, deteriorating commercial/retail/service properties that have been eclipsed
by more contemporary development. In the K Mart example, clearing the site is a crucial element. However, older properties of
an earlier vintage lent themselves well to adaptive re-use, frequently based historic and/or aesthetic considerations, the generic
structures typically found in situations similar to the study site are less attractive. In addition, developers are primarily interested
in beginning with a clean slate in terms of site configuration, building placement, design, etc. The user’s business plan dictates
these considerations.
The final, configured, site is akin to a “ready to build, green field” equivalent.
The site needs to become a literal green space. Landscaping and promotional signage, raises both community and professional
real estate development interest. This should be a high priority for all future projects.
Conduct a comprehensive pre-development phase.
Forest Park, to its credit, has been able to retain many businesses within its borders in large part due to its economic development
acumen. These talents and skills have produced an aggressive economic development effort on a par with any in the region. Property
ownership affords Forest Park the opportunity to place a close focus on determining final site configuration and presentation to
prospective developers with the aid of its resident staff and outside professional consulting, design, and other project-related firms
to bring fresh eyes and expertise to the site. A variation of traditional due diligence, pre-development in this context is valuable in
firmly conceptualizing the project and/or range of possibilities. The pre-development phase strengthens RFQ/RFP process.
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Promote a unique sense of place:
It is certainly no surprise that commercial property requires a different marketing approach than that typically used in general
community promotion.
Rapid development to the North and East of Hamilton County is fueled by a shift in both residential population and commercial
enterprises relocating to these new areas. The result is an intensely competitive market within the Cincinnati region for the
economic and social benefits of commercial activity resulting from real estate investment. Marketing and branding programs
abound in an attempt to distinguish locales.
Other communities are fortunate in having a unique sense of place, supported by excellent transportation linkages, proximity to
large, dominant retail and service complexes, and being bordered by communities possessing complementary demographics.
Forest Park needs to develop an identity based on a candid assessment of its strengths & weaknesses. In this study context, we
identify the following:
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Value: affordable office, commercial and other business space.
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Business Relationships: tenants and owners in Forest Park’s commercial, office, and industrial/light manufacturing
areas note a high level of positive business relationships. Many suppliers and customers are located within a short drive.
Effective marketing promotes this as a positive aspect of doing business in Forest Park.
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Forest Park is currently and historically a community with a strong commitment to egalitarianism and broad diversity.
Though typically promoted to prospective residents, business recruitment efforts need to address and promote these
attributes.
Access to Interstate 275, with linkage to all major routes
Promotion and support of the commercial community: the City of Forest Park has a well-documented record of aggressive,
thoughtful, and continually supportive, approach to economic development.
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Site Options/Configuration:
KMart property:
This is the core site for redevelopment. Given the right user(s), with sufficient buffering and other mitigating site elements, this
option could serve as an independent development that might spark additional development interest in the corridor, or as a first
phase in a long-term multi-site project. in the Hamilton Avenue/Waycross Road corridor. The City’s $806,000 (approx. $98,750
per acre) investment provides an opportunity to sell the 8.167-acre parcel at an attractive price.
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The KMart site cannot stand alone: To be successfully developed the blighted conditions in its immediate vicinity must
be eliminated.
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Neighboring Waycross Point is a marginal property: There are no satisfactory solutions that in our opinion provide a
serious opportunity to market redevelopment of the study site other than gaining control of or an optioned interest in the
Waycross Point property. In addition, the KMart and the Waycross structures share a common wall.
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Out Lots: The above approach applies equally to the out lots. Of all the out lot structures along Hamilton Avenue between
Waycross and Seven Hills Drive, the Pizza Hut/Taco Bell site is the sole viable user. Out lot occupants compatible with the
redevelopment may choose to remain within the site.
19
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Additional capital needs: The acquisition and planning process will need to be phased. It would benefit from an interjurisdictional effort to redevelop the area. This second point clearly implies formation of a Joint Economic Development
District (JEDD), A JEDD is a valuable tool for maximizing the skills and resources of incorporated communities and
townships. Typically, the major benefit to both jurisdictions is the creation of new tax revenues and in most cases, additional
infrastructure. In the townships’ case, a share of local income tax levied by the incorporated partner enhances new
revenue. Obviously, the employment component of any proposed project will drive its prospects for selection and support.
Aside from its structural characteristics, the collaborative effort rewards both jurisdictions in terms of addressing their
respective declining areas.
The Civic Center Shopping Center:
This is not a development option, but rather, an opportunity for the City of Forest Park to create incentives for the Center’s
ownership to complement the K Mart initiative. The K Mart redevelopment might extend an expanded TIF district to include the
center property.
Phillips Edison & Company, a major Cincinnati-based commercial real estate firm specializing in secondary market retail properties,
owns both Civic Center Shopping Center and Forest Park Square. The company is on an aggressive drive to acquire and renovate
many of its properties. An article in Lexdon Business Library on 1/31/06 describes this initiative:
“Phillips Edison & Company, a retail real estate owner, manager and developer, announced today the final closing for Phillips
Edison Shopping Center Fund III (“Fund III”), on January 26th, 2006. The $750 million fund will serve as the company’s third valueadded retail acquisition fund. Fund III will acquire anchored shopping centers throughout the United States.
The fund held 12 centers comprising 1.6 million square feet of retail space at closing.
“We are excited about the opportunities Fund III will provide for the company and we appreciate the support we have received
from our investors. Through Fund III, we plan to acquire anchored shopping centers in both single asset and portfolio transactions.
We expect to add value to the acquisitions and enhance cash flow and market position through leasing, redevelopment, and costeffective operations,” said Jeffrey Edison, Chief Executive Officer. “ 1
The Civic Center Shopping Center is in considerably better physical condition than its counterpart across Waycross Road. Obviously,
maintenance is consistent on both tenanted and vacant properties within the complex. The company appears to be aggressively
marketing leasable space. Two major vacancies, the Thriftway, and Blockbuster Video properties are also highly visible elements in
the immediate area. We assume that some level of dialogue is already in ongoing, as the city has no doubt sought to be proactive
with regard to these properties. The K Mart initiative may be sufficient incentive for Phillips Edison to consider allocating a portion
of their Fund III resources to the Civic Center property.
1
Lexdon Business Library, January 2006
20
Prospective Development Users:
Retail:
Retail remains the weakest option for redevelopment. The Civic Center Shopping Center has a considerable vacancy challenge.
Fortunately, the owners provide an admirable degree of maintenance. With aggressive marketing, it has potential to benefit from
an upgraded roadway and related efforts to strengthen the development potential at the I-275 interchange.
The above map clearly illustrates that there are plentiful retail/service offerings within a short distance of the study site.
»
A large, full service Kroger grocery anchors the Kemper Center, complemented by a broad range of viable service & retail
uses. It is perhaps the most centrally located shopping within the community, situated at the corner of Kemper and
Winton Roads. The center is across Kemper Road from Forest Park’s Administrative Building.
»
The Cobblewood Center has recruited the area’s first “super” Wal-Mart. There are a series of strip centers within this
property. Originally a big box center with supportive, smaller service uses, the Cobblewood suffered through several
waves of vacancies bringing it toward visible decline. The area’s first Super Wal-Mart now dominates the inner retail ring.
Additional new construction on the outer ring includes McSwain’s Carpet and a free standing PNC bank.
21
»
The Winton/Gilmore corridor contains two big box retailers with in-store grocery areas, big box hardware, a broad array
of fast food and traditional chain dining. Finally, the area hosts the Mills of Cincinnati, a traditional enclosed mall with a
more eclectic mix of retailers than commonly found in other similar facilities. This complex has emerged from the site of
the original Forest Fair Mall. This complex is one exit east of the study site on I-275.
»
»
Tri-County Mall is three exits on I-275 east of the project site.
The Northgate Mall area is located one exit to the west on I-275.
Clearly, a plentiful selection, larger, regional, facilities, and centrally located convenience & service retail are all conveniently
located in areas surrounding the study site. One can reasonably conclude, especially when considering that a similar problematic
retail issues exists in the Northland Boulevard corridor, that the general area has too much retail/commercial space.
22
The Retail Property Market:
The accompanying chart developed by CB Richard Ellis illustrates various markets’ retail activity. Demographic shifts and
accompanying commercial/retail development have had an affect on many of these properties.
Forest Park has approximately 7.7% of the documented retail space. This figure in and of itself, does not reveal an accurate
assessment of this situation. Much of this property is “ prematurely obsolete” in terms of issues regarding first suburbs, rapidly
changing business plans, and population shifts within the region.
Market
Rentable Space
Vacancy Rate
Beechmont
2,361,476
8.90%
50,000
$11.28
Eastgate
4,830,834
9.61%
380,000
$12.00
Kenwood
4,250,896
7.00%
280,000
$28.00
Fields Ertel`
6,223,316
11.51%
140,000
$14.42
Florence
5,069,917
5.38%
90,000
$16.78
Northgate
3,149,812
4.10%
0
$11.45
Hyde Park/
Norwood
3,712,365
13.25%
250,000
$27.00
Tri-County
9,634945
11.95%
80,000
$10.00
Forest Park
4,902,981
11.85%
0
$11.00
Western Hills
4,043,822
14.08%
610,000
$16.89
CBD
4,620,748
6.01%
300,000
$21.00
Remainder KY
5,168,404
12.79%
0
$13.55
Remainder OH
6,080,433
18.86%
0
$ 8.40
63,689,943
10.91%
(Avg)
2,090,000
$15.52
(Avg)2
Total
Under Constn
Sq Ft 2007
Avg
Rate(sf/yr)
12
2
CB Richard Ellis, 2006
23
Strengths/Opportunities:
»
As cleared land, the site and/or a combination with the Waycross Center might be attractive to a big box user or a large
user supplemented by a cluster of potential out lot tenants. This opportunity relies mainly on proximity to the Interstate. Out
lots could be more efficiently consolidated in a retail configuration developed by Core Resources and others calls for a four
unit building with services (bank, wireless phone, eat-in fast food, such as Chipotle Grill, Starbucks, etc).
»
The corridor contains a significant auto parts, maintenance, and servicing presence. Appearing at first inconsistent with
the redevelopment concept, these viable businesses could spawn additional product & service-related businesses. These
configurations are, however, a poor re-use in terms of capital investment in buildings, equipment, and earnings tax revenue.
»
Proximity to Interstate 275 is an underutilized resource. The Hamilton Avenue interchange has lagged others in retail
& service offerings. Businesses oriented toward the auto traveler appear to do well in this area. This suggests that retail &
service needs an associated prime use to be an attractive prospect. Hotel development is a primary candidate, discussed
later in this text.
Threats/ Weaknesses:
»
Space Oversupply: As mentioned earlier, Forest Park, as is the case in other established suburban communities, has an
oversupply of retail/service space.
»
»
Surplus property attracts lower tier tenants.
Proximity to major retail/service complexes: Forest Park is fortunate in that large retail/service concentrations are located
within its borders: Kemper Rd, Cobblewood, Cincinnati Mills, and the adjoining big box retailers in the Winton/Gilmore corridor.
These areas are convenient to residents and offer the broadest range of products at numerous price points. Retail & service
offerings available at these large centers greatly diminish prospects for duplication in a local context.
»
Regional malls: The site is almost equidistant between Northgate and Tri-County, two major regional mall complexes. Both
malls are the anchors within their respective corridors (Colerain Ave & Kemper Road), well populated by freestanding retailers
and others residing in smaller strip centers. Superstores (Wal-Mart & Target) are either located or under development in both
corridors.
»
Lower-tier failures: The recent Dollar General closing does not bode well for new retail at any level. This event may solidify
the perception that retail is not viable at this site or in the immediate area.
24
Office:
Suburban office development is increasingly concerned about being either proximate to or a convenient commute between
employees’ residence and the workplace. Two decades ago urban affairs professionals predicted the development of “edge
cities.” The concept intended to minimize the contrast and distance between the urban workplace setting and peoples’ residential
environments. Employees would have access to amenities formerly associated solely with residential communities.
Though fully realized edge cities have not materialized in the Cincinnati area, the trend toward office development in suburban
settings continues. The Kemper Meadows project is an example of office settings proximate to both suburban communities and
their retail/service base. The Reed Hartman /Hunt Rd corridor in Blue Ash is an excellent example of vigorous office development.
This corridor has successfully accomplished the goals of locating relatively close to attractive suburban communities and building
a tax base for its host community that translates into high quality public services.
Procter & Gamble built a professional center on Mason Montgomery Road in an area that is experiencing rapid growth, an affluent
population, and a prime source of professional employees for the company’s workforce. P & G’s presence is a catalyst for further
development to attract and accommodate businesses that support the larger company.
The Current Office Development, Vacancy and Absorption Ourlook 31
3
CB Richard Ellis, 2007
25
Opportunities/Strengths:
»
Interstate 275 proximity: The site is less than a quarter mile from the intersection of Hamilton Avenue and Waycross
Road. The highway offers direct access to the Western Hills, Harrison, Dearborn County, Indiana, and Northern Kentucky.
To the east, one can connect to Interstates 75 and 71.
»
Footprint: The site, by itself or expanded as described earlier, offers a generous footprint for a single user or multiple user
development.
»
Access to Civic Center North: The human and educational services presence across Hamilton Avenue may be rather
attractive to [private] service providers, support enterprises, and other government-oriented commercial concerns.
Threats/Weaknesses:
»
Standing Commitments to local business parks: The community has been closely involved in the development of,
Kemper Meadows on Winton Road and most recently, Carillon Business Park on Waycross Road. Both developments offer
attractive sites. Kemper Meadows is the earlier development. Both offer the ambiance of a business park, with a uniform
sense of infrastructure, landscaping, maintenance, and security.
»
Vacant Space: in the larger community: There are other office concentrations within the Forest Park community
Northland Blvd for example, has a sizeable volume of office space in older, smaller buildings, attractive to more modest
needs. Much of that space is available for sale/lease at relatively affordable cost.
»
»
Borders: The site borders on problematic situations previously cited.
»
Perception of the immediate area and the larger community: A candid assessment of the immediate area would not
be encouraging in terms of developing a tranquil, secure environment. A closer look within the community would reveal
much stronger options.
»
Competition: The subject site does not present itself as an attractive option within the current marketplace. New
construction within Hamilton County is concentrated as of late in Blue Ash’s Reed Hartman/Hunt Rd corridors. These
areas, particularly Reed Hartman, benefit greatly from superior access provided by I-275, I-71, and the Reagan Cross
County Highway. The area’s commercial residents are becoming more diverse, with significant, new medical and other
professional office users. This is a particularly attractive market advantage. The major office development area lies along
the I-71 corridor. The new construction has moved beyond the county borders into Warren County. In the past, the I-75
corridor witnessed office development at the intersection with I-275. The construction activity has moved north into Butler
County, particularly at the new Union Center Boulevard exit.
»
Statistics: At the end of 2005, there was an 18.9% vacancy rate in the overall Cincinnati market area. Total square
footage was 34,856,169 with vacancies totaling 6,575,739 sq ft. The absorption rate was 2.4% (838,234 sq ft).
Visual clutter: Out lots, hamper the view from Hamilton Avenue. Even if the structures are oriented to Waycross, the out
lots compromise the development’s ability to serve as a gateway.
26
»
Assumption: Office space developed in Forest Park falls under either or both the Tri- County and West areas (4,350,273
sq ft and 232,267 sq ft respectively), the vacancy rates in 2005 were 18.1% and 13.4% respectively. Both areas viewed
in combination have an effective vacancy rate of 17.9%. Absorption rates: 2.9% and 2.8% respectively.
»
New Construction: New office space developed during the two previous years was 32,000sq ft and 28,000 sq ft
respectively. The vast majority of the total space under construction, attributed to demand in the Blue Ash sector41Light
Manufacturing Note: The site zoning designates commercial use. A change would only be justified if an extraordinary
opportunity presented itself, fully utilizing the final site configuration.
Light Industrial:
»
A Loop Net search for property currently available in Forest Park shows industrial/lt mfg/warehouse space: 142,000
sq ft available for lease at an average of $5.70 sq ft., this is an aggregate figure representing many small facilities. There
are two light industrial/commercial parks within a mile of the site off Waycross Road. 52
»
The closest industrial/light manufacturing parks are Civic Center in Colerain Township located behind the Hamilton
County Educational Resources Department. This development has been ongoing for over 10 yrs as a Hamilton County
project. The park still has building sites and vacant commercial space.
CD Richard Ellis, 2007
The park at Sebring and Waycross is within ½ mile of the site. This is an established, well maintained, business “community.”
There is available space. A drive through the area revealed two sites for “build to suit” prospects. Two buildings were for
sale, and a third building had vacant (3,500sq ft) of commercial space for lease within its existing building. That building
has since come under contract to purchase by Westech Environmental Solutions, a company moving to Forest Park from
Cleves. The largest and perhaps most flexible property accessible through Sebring Drive is the former Surf Cincinnati
complex.
»
4
5
Several commercial light industrial, light manufacturing and professional firms have buildings fronting on Waycross
Road. Two of these firms have expressed a need to expand, but find that they are essentially landlocked. The site might
be a viable opportunity for such expansion. There is the perception, however, that locating on the site would isolate
potential users from the readily available “community” sense that is located along Waycross Road. Some businesses
have also expressed a hesitation to move closer to the apartments, etc., that they see as a source of problems in the
immediate area.
Loopnet, Inc., 2006
Loopnet, Inc., 2006
27
»
Absorption rates: These compare favorably with the county as a whole, but do not appear competitive with other
jurisdictions.
»
Isolation: The study site is in proximity to other commercial users, but isolated at the same time. Though it might not
be attractive to prospects seeking a park or commercial community environment, it may prove desirable for current
commercial entities in the Waycross or perhaps Southland corridors looking for expansion space and desirous of remaining
in Forest Park. The site is large enough to accommodate multiple users whose site requirements are relatively modest.
»
Prior Commitments: The city has substantial involvement and commitment to the sizeable office and commercial
area emerging at Carillon Park. This should be the community’s highest profile development. Recruitment efforts and
accompanying incentives will likely be intense. Similar development at the study site could detract from that effort.
Hospitality/Lodging:
This option may not appear attractive at this report’s delivery. The success or completion of several projects and initiatives may
come together in the near future to strengthen prospects considerably.
»
Close proximity to I-275: This is the major factor in initially considering this category. The beltway carries a significant
traffic volume and offers connections to several interstate highways. It also offers a relatively expeditious route to the
airport via 275 west.
»
Increased business travel for site visits: Much of this activity involves foreign business. Though largely anecdotal at this
stage, it would behoove Forest Park to add this inquiry to its periodic business visitations.
»
Concentrated presence of educational and human services facilities is a potential market: Most governmental
agencies generate personal meeting contacts with the private sector suppliers, outsourced professional & technical
services, and other governmental jurisdictions. Many involve distance travel and possibly lodging. Facilities serving this
potential market are at an advantage and may in fact generate some of their own business by being in the immediate
vicinity of the meeting site.
»
Extended stay facilities: This lodging format is more likely to be attractive to a business-based traveler clientele. There
are traditional motor inn/motels at most I-275 exits. There are hotel facilities within Forest Park. The AmeriSuites and
Lees Inn & Suites are both located at the Winton/ I-275 interchange. The prospective Marriott conversion of the Auto
Nation site is business-oriented, but less convenient to the majority of Forest Park commercial locations that will likely
generate routine business travel.
»
Site Capabilities: The site is large enough to accommodate lodging and out lot development offering food, goods &
services.
»
Maximized opportunity: Though we mention the prospective Marriot Hotels project being considered at the former Auto
Nation site at Winton Road and I-275 as a challenge, one should also consider that the corporation might have several
lodging products that do not compete with one another. They may strengthen the company’s presence and long-term
commitment.
28
Threats/Weaknesses:
»
Single Use Properties: Lenders consider hotel/motel structures as single purpose buildings. Accordingly, corporate chains
build the structures themselves. Independent operators typically lease these properties or contract to manage them.
»
Growth: Admittedly, the lodging growth has been to the northeast in the general vicinity of Kings Island and related facilities.
Forest Park’s concentrated commercial community and those in neighboring areas may support an extended stay facility.
»
Paradigm shifts driven by telecommunications technology affect business travel: The continuously increasing, high-speed
broadband access to the internet makes secure, interactive, video conferences a more attractive option.
»
Fringe location: Until convenient business travel lodging is a significant factor in the I-275 corridor, these facilities will be a
less desirous redevelopment choice at the subject site. Cincinnati lodging development presently fares best in the northeast,
I-71 corridor. This area is home to Kings Island, golf, and tennis tournament facilities, intense retail concentrations in Kenwood,
and the Reed Hartman office/commercial corridor.
»
Current Involvement: Forest Park is currently involved in prospective redevelopment of the “Auto Nation” property located
at I-275 and Winton Road. It is our understanding that the proposed facility follows convention center concept. This recent
opportunity does not rule out our site recommendation. Conceptually, the two facilities would serve distinctly different markets,
with little if any overlap. If Marriott has a business-travel product, they should be consulted before other operators.
Senior Residences/Assisted Living Facilities:
This is an emerging market, as medical science extends senior life expectancy and creates new markets/services/facilities to
accommodate the increased population. Marriott and other developers in the hospitality industry have added senior living to their
portfolios.
»
Assisted Living complexes are an increasing presence in the Winton Road, Montgomery Road and other corridors: Hamilton
Avenue does contain the Twin Towers complex one of the largest developments in the area, consisting of assisted living, full
care, and condominium units. The Maple Knoll community is perhaps the area’s oldest and largest senior development. The
site’s proximity to I-275 is a major asset. Waycross Road runs through the broadest range of uses in Forest Park.
»
Forest Park is a central location: When one considers communities in the local area. Greenhills, Colerain Township, Fairfield,
and Springdale all border Forest Park. Assisted living facilities are more attractive to prospective residents when they are
located close to a former residence or near family members.
Threats/Weaknesses:
»
Remoteness: Developers may see the site as too far removed and isolated from other residential areas. Site location is a
highly competitive process in this field. Proximity to amenities in the host community is essential.
»
Blight: The blighted housing areas to the south and north may generate a perceptual; issue regarding safety, nuisance
situations, etc.
»
Proximity: Senior, assisted living facilities are proposed for the county-owned property in Colerain Township. The study site’s
proximity would compromise the market viability of a similar development.
29
Satellite/Allied Medical facilities:
Local medical groups such as the Health Alliance, Tri-Health, and Franciscan have developed outpatient medical facilities in
numerous communities across the metropolitan area. HMO’s and other medical groups such as Group Health Associates (GHA)
have been particularly aggressive in this development. Units follow demographics. They do consider the aging of particular areas
as well as the ease and speed of access. For example, Group Health Associates has seven facilities in the Cincinnati metropolitan
area. Of that total, three units, Kenwood, Anderson, and Springdale are in close proximity to a major interstate or highway. The
remaining facilities in Clifton, Western Hills, Colerain, and Finneytown are at some distance from these routes. The study area
would be a strong candidate as an expansion site.
»
»
»
»
»
Proximity and ease of access to I-275
Lack of medical facilities within Forest Park
Daytime commercial population adds a significant component.
Opportunities exist for combining medical
Seniors are increasingly expressing a preference for living within the community in which they raised their families.
Threats/Weaknesses:
»
»
»
Mercy Hospital is located on Mack Rd, adjacent to the Winton/Gilmore shopping area.
Several medical professional buildings are in close proximity to the hospital campus.
Complementing development is limited, as uses such as pharmacies, medical supplies, etc have a proprietary presence
within the medical facility.
30
Redevelopment Strategy:
»
»
Acquisition: As of this writing, the City of Forest Park has acquired the site for the sum of $806,000.
»
Determine Desired Project Site: Our recommendation in this study favors a project site composed of the K Mart and
Waycross (Daffin) properties. This approach offers a greater opportunity to screen and buffers the site from remaining
issues.
»
Acquire/Incorporate Out Lots: Direct purchase may be beyond the city and township short-term capabilities. Options
would be ideal. The extended site would yield approximately 14 acres.
»
Determining the Project Use: We recommend development activities that further the I-275 interchange’s full potential.
The other categories (office, light manufacturing, warehouse, and distribution) suffer from both an overstocked and
competitive marketplace.
»
»
Consider Project Phasing: Financial and other controls will likely warrant subdividing the project into phases.
Acquisition of the adjoining Waycross Point (Daffin) property: This is imperative in the sense that it eliminates the
blighted retail space. The property is currently on the market. The community should engage in discussions with the
owners, if they have not already done so. If a direct purchase is not feasible at present, an option, equity position, or some
other mechanism is necessary to provide some sense of inclusion for this property.
Incentives: Some form of subsidy will most likely need to be included in an incentive package. Accruing to the developer,
these incentives should in turn be a significant factor into attractive tenant leasing costs.
Tax increment financing (TIF): This tax incentive technique enables the project to obtain crucial infrastructure
improvements. Public improvements have their greatest impact when the public entities designate a TIF district. The
district should span the length of the proposed development and include properties to the north of Waycross Road
if they engage in complementing redevelopment activities. The likely candidate in this scenario would be the Civic
Center Shopping Center.
Assuming that TIF investment will be included, the incremental increase in taxes through the project (and any related
improvements to the north) converts to service payments necessary to amortize bond debt. This leaves no option
for tax abatement. Accordingly, the major source of subsidy will likely be property write-downs on those portions of
the site owned by Forest Park. As an alternative, the City could maintain ownership and negotiate a highly favorable,
long-term lease sufficient in term to meet lenders’ needs.
Land write-downs are the most direct subsidy to capital investment. The site cost was relatively inexpensive; the
subsequent cost to a developer represents a subsidized land cost. Considering the site size, this cost carries a
built-in subsidy. Any further subsidy relating to land cost would be the city’s prerogative.
31
Tax Abatement: If the development seeks a subsidy to ease its early operating cash flow, tax abatement is the
essential incentive tool. The jurisdiction can justify this action in terms of alternate revenue streams such as a city
income tax that flows from new employment created by the development.
Debt Instruments: Depending on the development’s capital investment scale, there are public lending programs
designed to provide lower cost debt instruments. The Small Business Administration can address needs of many
developments. Normally, the SBA’s 504 program can consider loans up to $1.5 million. This figure represents 40%
of the project total with 50% coming from a private lender and 10% from the borrower. This represents a $3.75
million project. An exception lies with single use properties, which require a 15% payment from the borrower with a
corresponding reduction in the loan amount to 35% of the project cost. It is interesting to note that SBA 504 loans
are the product of a debenture offering. Investors purchase this debt instrument. These are not funds allocated by
Congress to the SBA. Accordingly, they are not Federal funds in the strictest sense of the term and do not require
Davis-Bacon prevailing wages.
The maximum SBA position can increase to $2 million (based on a $5 million total project cost. To qualify, an applicant
must demonstrate that the project is a difficult redevelopment venture and the site’s previous use has had a negative
impact on the surrounding area. The host jurisdiction is the main advocate for this increase. The study site displays
most of the characteristics that would warrant an increased SBA participation.
The Hamilton County Development Company’s affiliate Horizon Certified Development Company is the regional source
for SBA lending.
»
The RFQ/RFP Process: A coherent, manageable, thorough, and orderly selection process designed to select the optimal
developer and development concept for a building site.
Request for Qualifications (RFQ): This process seeks to determine an applicant’s qualifications and suitability for the
project. The search must identify a development firm that has both the experience and insights to execute the physical
project in a problematic setting. Get a sense of the firm’s understanding of the project’s conceptual elements. Identify
comparable experience with the project similar to that conceived by the requesting authority. Determine if the firm
recognizes and understands the project setting’s historical context. It is important to note that an RFQ is not a solicitation
for a specific project proposal.
Request for Proposals (RFP): This is a more definitive exercise. The RFQ process narrows the applicant field. The RFP
evaluation strives to determine interpretation of the proposed project, as competing teams present multi- dimensional
renderings reflecting their conceptual understanding of the project.
This phase provides an opportunity to determine the applicant team’s professional temperament, flexibility, willingness
to extend exploration concepts, etc.
The presentation includes basic architectural, site design, landscaping, generic land use, and zoning issues, development
timeline, and financial aspects of the development. Though a selection committee does not expect fully developed plans
in this phase, one should note that individual developers or joint venture teams reaching this round incur significant
expense preparing these materials, both within their own firms and in consultation with engineering and design specialists.
Accordingly, the public entity should be fully prepared to move on a selection, contract, and active development in
consideration of the efforts of RFP competitors.
32
Conclusions
HCDC has conducted an inquiry concerning recommendations for the eventual re-use of the site at the intersection of Hamilton
Avenue and Waycross Road.
In the course of this inquiry, we have examined the current development activity in numerous fields, surveying the overall activity
in these respective categories, and determining the prospects for each as future redevelopment uses at the study site.
We examined demographics, both current and projected, to note areas of strength and weakness in various redevelopment
scenarios.
The inquiry identified indicators of decline and causes both specific to Forest Park and generic to most, if not all, older, “first
suburb” communities.
It is significant to note that the issues common to the first suburbs have had an especially strong impact on Forest Park. The
community seems to have a disproportionate amount of commercial property as opposed to a contained business district found
in other communities. The impact of the new suburban sprawl development has been particularly noticeable in Forest Park.
We referred to a certain group of businesses that consistently seem to signal a community’s onset of commercial deterioration.
The term “harbingers of decline” aptly applies. The current crop includes “payday loans,” nail salons, generic phone stores, and
variations on the “dollar store” concept. Some have well-defined business plans, while others are merely seeking inexpensive,
transient, locations.
At first glance, these new businesses appear incompatible with a traditional suburban retail/service mix. This typically leads to a
perception of the onset of decline. The study site’s proximate socio-economic weaknesses, however, strongly suggest that these
businesses have not located randomly, but rather, have arrived due to the attraction of target demographics.
Forest Park has a “tattered” western edge. Venturing along Waycross Road past the vacated retail/service properties reveals a
vibrant and diverse manufacturing, light industrial, and office community extending over a mile to Mill Road. In the course of that
distance, one finds developed and emerging commercial parks, established independent businesses, anchored by the Union
Central Life Insurance Company on its eastern edge. Looking back toward the Waycross/Hamilton intersection, there is a solid,
stable, government/education/human services presence across Hamilton Avenue in the Civic Center North area. It appears that
a relatively small demographic area has had an inordinate influence on the wider vicinity’s economic health.
33
Conclusions
As stated previously in the redevelopment section, the study concludes that the best course of action in this redevelopment
process would include:
»
Forest Park’s broad goal should involve taking steps necessary to establish an increasingly higher profile for the I-275
interchange at Hamilton Avenue. Efforts would facilitate the emergence of a “gateway” to the Waycross Road commercial
corridor.
»
The community should pursue new uses that would benefit from proximity to I-275 and the commercial concentrations in
the aforementioned corridor.
»
Municipal staffs need to monitor demographic trends that indicate an aging population, the goods, services and residential
options that will inevitably emerge to serve this population.
»
Residents and public officials should acknowledge that plentiful retail/service businesses are easily and quickly accessible
to residents living in close proximity to the site.
»
»
Establishing a comprehensive, insightful RFQ/RFP process for developer selection.
»
Be especially attentive to serendipitous opportunities that may arise. Though conventional wisdom may be to the contrary,
businesses may locate at sites that represent a special opportunity for them. In the course of this study, HCDC has
conferred with various public officials who have mentioned such possibilities. In the case of grocery chain interest, it might
be better to defer to the Phillips Edison center across Waycross Road, as they are poised to offer the former Thriftway and
possibly the former Blockbuster site as a re-configured development opportunity.
It is fair to say that the study site should remain a green space for a time. Public officials should carefully monitor
commercial property trends to see if the site becomes more competitive as an office or light manufacturing opportunity.
Additionally, Forest Park should maintain contact with industry providers and their corporate and local development
counterparts to monitor trends within the industries recommended in this study. Lodging, senior facilities, and medical
services location decisions are likely in flux, as new products and services continually emerge.
34
Appendix
Demographics:
Source: Claritas, 2005.
Forest Park - Kmart Site
1 Mile Radius
Forest Park
Hamilton County
2005 Population
13,265
18,376
812,803
2005 Population Density (per Sq. Mile)
2,297
2,823
1,995
2005 Households
4,935
7,243
337,837
2005 Household Density (per Sq. Mile)
855
1,113
829
5,088
7,481
363,641
2005 Housing Unit Density (per Sq. Mile)
881
1,149
893
2005 Median Age
34.2
35.9
38.20
2005 Housing Units
Land Area in Square Miles
2005 Median Value, Owner-Occupied Housing Units
5.8
6.5
407.37
$115,591
$116,667
$122,736
2.68
2.52
2.35
2005 Average Household Size
2005 Population Age 15+ Never Married
2939
28.94%
4,278
29.38%
199,213
30.79%
2005 Population Age 15+ Married, Spouse Present
5703
56.15%
7,377
50.66%
306,973
47.44%
2005 Population Age 15+ Married, Spouse Absent
270
2.66%
459
3.15%
28,365
4.38%
2005 Population Age 15+ Widowed
482
4.75%
796
5.47%
47,374
7.32%
2005 Population Age 15+ Divorced
762
7.50%
1,653
11.35%
65,113
10.06%
10,156
100.00%
14,563
100.00%
647,038
100.00%
Total Population Age 15+
2005 Owner Occupied Housing Units
3,433
69.56%
4,504
62.18%
204,819
60.63%
2005 Renter Occupied Housing Units
1,502
30.44%
2,739
37.82%
133,018
39.37%
2005 Per Capita Income
$22,680
$24,553
$27,603
2005 Median Household Income
$55,612
$53,557
$53,557
2005 Average Household Income
$60,948
$62,013
$65,749
Aggregate Household Effective Buying Income
$25,586,726
$352,197,500
$17,715,012,500
Aggrgte. Hshld. Effective Buying Income Density (per Sq. Mile)
$4,431,369
$54,109,310
$43,486,723
Median Household Effective Buying Income
$44,410
$43,450
$43,450
Average Household Effective Buying Income
$47,794
$48,626
$52,437
35
Appendix
2005 Employed Population Age 16+ by Industry
Agriculture, Forestry, Fishing, Hunting, and Mining
Construction
Manufacturing
Wholesale Trade
0
0.00%
7
0.07%
532
487
6.70%
302
3.03%
22,099
0.13%
5.58%
1,377
18.96%
1,828
18.37%
57,379
14.50%
378
5.20%
448
4.50%
15,072
3.81%
1,093
15.05%
1,138
11.43%
45,078
11.39%
Trasportation, Warehousing, and Utilities
481
6.62%
622
6.25%
18,592
4.70%
Information
249
3.43%
355
3.57%
10,999
2.78%
Finance, Insurance, Real Estate, Rental and Leasing
595
8.19%
892
8.96%
31,247
7.89%
Retail Trade
Prof., Scientific, Mngmnt Admin. and Waste Management
Educational, Health, and Social Services
414
5.70%
1,130
11.35%
45,205
11.42%
1,230
16.93%
1,733
17.41%
82,294
20.79%
Arts, Entertmnt., Rec., Accommodation & Food Services
405
5.58%
647
6.50%
33,502
8.46%
Other Services
285
3.92%
418
4.20%
18,072
4.57%
Public Administration
Total
270
3.72%
432
4.34%
15,744
3.98%
7,264
100.00%
9,952
100.00%
395,815
100.00%
2005 Employed Population Age 16+ by Occupation
Mangmnt., Business, and Financial Operations Occupations
833
11.47%
1,253
12.59%
58,334
14.74%
1,208
16.63%
2,169
21.79%
88,689
22.41%
919
12.65%
1,418
14.25%
59,059
14.92%
2,206
30.37%
3,052
30.67%
111,546
28.18%
0
0.00%
0
0.00%
424
0.11%
Construction, Extraction, and Maintenance Occupations
723
9.95%
409
4.11%
27,809
7.03%
Production, Transprt., and Material Moving Occupations
1,375
18.93%
1,651
16.59%
49,954
12.62%
Total
7,264
100.00%
9,952
100.00%
395,815
100.00%
Blue Collar
2,098
28.88%
2,060
20.70%
77,763
19.65%
White Collar
4,247
58.47%
6,474
65.05%
258,409
65.29%
919
12.65%
1,418
14.25%
59,643
15.07%
Total
7,264
100.00%
9,952
100.00%
395,815
100.00%
2005 Workers Age 16+ Avg. Travel Time to Work
26.4
Professional and Related Occupations
Service Occupations
Sales and Office Occupations
Farming, Fishing, and Forestry Occupations
Service & Farm
27.0
25.0
36
Appendix
2005 Estimated Consumer Buying Power by Retail Store Type (in
Thousands)
(Density by
Square Mile)
(Density by Square Mile)
All Retail Stores
$145,577
$25,213
$205,143
$31,517
$9,527,779
Grocery Store
$29,379
$5,088
$40,545
$6,229
$1,878,035
$4,610
Eating Places
$17,330
$3,001
$23,959
$3,681
$1,163,577
$2,856
Drinking Places
$23,389
$823
$143
$1,135
$174
$60,283
$148
Health & Personal Care Sotres
$8,775
$1,520
$13,068
$2,008
$620,409
$1,523
Building Material & Garden Equipment & Supplies Dealers
$657
$4,170
$722
$5,691
$874
$267,801
Hardware Stores
$468
$81
$647
$99
$30,329
$74
Lawn & Garden Equipment & Supplies Dealers
$640
$111
$896
$138
$41,035
$101
Furniture Stores
$3,271
$567
$4,690
$720
$229,180
$563
Other Home Furnishing Stores
$2,418
$419
$3,413
$524
$165,515
$406
$137
Appliance Stores
$851
$147
$1,199
$184
$55,835
Radio, TV & Other Electronics
$1,734
$300
$2,483
$382
$118,076
$290
Department Stores
$14,489
$2,509
$20,590
$3,163
$959,712
$2,356
Clothing & Clothing Accessory Store
$9,900
$1,715
$14,213
$2,184
$658,840
$1,617
Shoe Stores
$1,296
$224
$1,807
$278
$80,120
$197
General Merchandise Stores
$21,253
$3,681
$29,962
$4,603
$1,401,635
$3,441
Warehouse Clubs & Superstores
$5,291
$916
$7,284
$1,119
$342,586
$841
Full-Service Restaurants
$9,555
$1,655
$12,945
$1,989
$673,794
$1,654
Fast Food restaurants
$7,776
$1,347
$11,015
$1,692
$489,783
$1,202
Jewlery Stores
$1,384
$240
$2,123
$326
$109,041
$268
Book Stores
$1,123
$194
$1,548
$238
$90,870
$223
Gift, Novelty, & Souvenir
$882
$153
$1,181
$181
$60,135
$148
Florists
$241
$42
$341
$52
$15,879
$39
Hobby, Toy, & Game Shops
$1,072
$186
$1,486
$228
$67,768
$166
Sporting Goods Stores
$1,294
$224
$1,844
$283
$87,309
$214
Camera & Photographic Supply
$139
$24
$199
$31
$9,080
$22
Luggage & Leather Goods
$119
$21
$173
$27
$8,281
$20
Sewing, Needlework & Piece Goods Stores
$208
$36
$292
$45
$13,613
$33
Convenience Stores
$1,570
$272
$2,066
$317
$101,423
$249
Home Centers
$1,024
$177
$1,401
$215
$66,481
$163
Nursery & Garden Centers
$530
$92
$749
$115
$34,268
$84
Computer & Software Stores
$961
$166
$1,407
$216
$65,339
$160
Clothing Acessory Stores
Auto Dealers
$151
$26
$224
$34
$10,806
$27
$29,847
$5,169
$42,379
$6,511
$1,892,079
$4,645
Automotive Part, Accessories & Tire Stores
$1,478
$256
$2,090
$321
$88,964
$218
Gasoline Stations with Convenience Stores
$8,210
$1,422
$11,159
$1,714
$514,636
$1,263
Gasoline Stations without Convenience Stores
$3,422
$593
$4,831
$742
$209,813
$515
Electronic Shopping & Mail Order
$4,285
$742
$6,200
$952
$295,577
$726
Total Accomodation & Food Services
$21,735
$3,764
$30,244
$4,647
$1,477,071
$3,626
Sporting Goods, Hobby, Book & Music Stores
$4,039
$700
$5,654
$869
$282,618
$694
$300
$52
$429
$66
$20,802
$51
$44,833
$7,765
$63,591
$9,770
$3,002,649
$7,371
Office Supplies & Stationary Stores
GAFO: General Merchandise, Apparel, Furniture, Other Stores
37
Appendix
2005 Establishments by Type
Private Sector
270
82.57%
640
85.33%
28,808
Government
57
17.43%
110
14.67%
4,383
86.79%
13.21%
All Industries
327
100.00%
750
100.00%
33,191
100.00%
20.59%
2005 Establishments by Sector
All Retail
61
22.26%
185
27.25%
6,833
Fianance-Insurance-Real Estate
29
10.58%
64
9.43%
3,221
9.70%
Services
121
44.16%
284
41.83%
15,159
45.67%
1.38%
Agriculture
1
0.36%
1
0.15%
459
Mining
13
4.74%
36
5.30%
11
0.03%
Construction
17
6.20%
40
5.89%
2,184
6.58%
All Maunufcaturing
13
4.74%
18
2.65%
2,160
6.51%
Transportation, Communication, & Public Utilities
13
4.74%
23
3.39%
936
2.82%
4.61%
Wholesale Trade
Total
6
2.19%
28
4.12%
1,530
274
100.00%
679
100.00%
32,493
Establishments by Service SubSector
Hotels & Other Lodging
1
0.63%
2
0.64%
111
0.78%
Personal Services
12
7.59%
14
4.49%
1,696
11.88%
Business Services
33
20.89%
75
24.04%
1,816
12.72%
Repair Services
8
5.06%
25
8.01%
1,241
8.69%
Motion Picture & Amusement
9
5.70%
6
1.92%
755
5.29%
Health Services
0
0.00%
0
0.00%
2,575
18.04%
Leagal Services
48
30.38%
65
20.83%
938
6.57%
Educational Services
21
13.29%
56
17.95%
764
5.35%
Social Services
9
5.70%
21
6.73%
2,921
20.46%
Engineering & Mgmt Services
17
10.76%
48
15.38%
1,457
10.21%
Total
158
100.00%
312
100.00%
14,274
100.00%
Building Materials & Garden Supplies
6
9.84%
14
7.57%
382
5.59%
3
4.92%
12
6.49%
197
2.88%
Food Stores
11
18.03%
17
9.19%
675
9.88%
Auto Dealers & Service Stations
6
9.84%
12
6.49%
652
9.54%
Number of Retail Establishments by Type
Apparel & Accessory
2
3.28%
26
14.05%
550
8.05%
Home Furniture
7
11.48%
20
10.81%
798
11.68%
Eating & Drinking Places
15
24.59%
39
21.08%
1,794
26.25%
Miscellaneous Retail
11
18.03%
45
24.32%
1,785
26.12%
All Retail
61
100.00%
185
100.00%
6,833
100.00%
Building Materials & Garden Supplies
$6.4
8.90%
$58.8
12.38%
$940.90
7.16%
$2.2
3.06%
$44.4
9.35%
$1,025.70
7.81%
Food Stores
$25.6
35.61%
$180.2
37.94%
$2,299.10
17.51%
Auto Dealers & Service Stations
$7.8
10.85%
$43.5
9.16%
$2,965.70
22.58%
Apparel & Accessory
$0.6
0.83%
$17.8
3.75%
$381.70
2.91%
Home Furniture
$7.9
10.99%
$41.7
8.78%
$1,658.30
12.63%
Eating & Drinking Places
$12.5
17.39%
$45.9
9.66%
$1,723.30
13.12%
Miscellaneous Retail
$8.9
12.38%
$42.7
8.99%
$2,138.80
16.29%
All Retail
$71.9
100.00%
$475.0
100.00%
$13,133.50
100.00%
Estimated Sales by Industry Type (in Millions)
38
Appendix
2005 Employees by Industry Type
All Industries
5,889
100.00%
13,478
100.00%
583,521
100.00%
Private Sector
4,720
80.15%
11,992
88.97%
486,310
83.34%
Government
1,169
19.85%
1,486
11.03%
97,211
16.66%
19.29%
2005 Employees by Sector
All Retail
688
12.57%
4,980
38.39%
108,174
Finance-Insurance-Real Estate
891
16.28%
1,252
9.65%
42,080
7.50%
2,008
36.70%
3,113
24.00%
240,902
42.95%
Agriculture
66
1.21%
36
0.28%
3,095
0.55%
Mining
0
0.00%
0
0.00%
139
0.02%
Construction
646
11.81%
1,089
8.40%
23,419
4.18%
All Manufacturing
417
7.62%
1,428
11.01%
92,483
16.49%
Transportation, Communication, & Public Utilities
93
1.70%
294
2.27%
24,886
4.44%
Wholesale Trade
663
12.12%
779
6.01%
25,674
4.58%
5,472
100.00%
12,971
100.00%
560,852
100.00%
Services
Total
Employees in the Service SubSector
Hotels & Other Lodging
13
0.65%
25
0.84%
3,342
1.42%
Personal Services
37
1.86%
168
5.65%
8,772
3.74%
Business Services
208
10.47%
284
9.56%
25,374
10.82%
Repair Services
40
2.01%
100
3.37%
7,437
3.17%
Motion Picture & Amusement
223
11.22%
199
6.70%
9,915
4.23%
Health Services
29
1.46%
317
10.67%
72,487
30.90%
Leagal Services
Educational Services
2
0.10%
4
0.13%
7,663
3.27%
576
28.99%
359
12.08%
40,998
17.48%
Social Services
176
8.86%
620
20.87%
33,544
14.30%
Engineering & Mgmt Services
683
34.37%
895
30.12%
25,068
10.69%
1,987
100.00%
2,971
100.00%
234,600
100.00%
Executive & Professional Total
5,884
60.87%
5,100
37.83%
200,787
34.41%
Administration & Support Total
1,819
18.82%
3,627
26.91%
165,597
28.38%
507
5.24%
1,529
11.34%
75,073
12.86%
Trade & Labor: Total
1,457
15.07%
3,224
23.92%
142,139
24.36%
Total Employment
9,667
100.00%
13,480
100.00%
583,596
100.00%
Total
Employees by Occupation Sectors
Service Personnel: Total
Employees by Occupation SubSectors
Total Employment
9,667
13,480
583,596
Executive & Professional
Management
499
8.48%
1,031
20.22%
45,462
Sales & Marketing
673
11.44%
2,820
55.29%
66,370
33.05%
Health, Legal & Social
93
1.58%
197
3.86%
32,819
16.35%
Engineers, Scientists & Computer Professionals
347
5.90%
473
9.27%
16,397
8.17%
Educatiors
377
6.41%
378
7.41%
27,053
13.47%
Journalists & Creative Professionals
Total
22.64%
112
1.90%
201
3.94%
12,686
6.32%
5,884
100.00%
5,100
100.00%
200,787
100.00%
Administration & Support
Management Support
Administrative & Clerical Support
Technical Support
Total
259
14.24%
453
12.49%
22,320
13.48%
1,316
72.35%
2,787
76.84%
118,034
71.28%
244
13.41%
387
10.67%
25,243
15.24%
1,819
100.00%
3,627
100.00%
165,597
100.00%
39
Appendix
Service Personnel
Health Care
25
4.93%
109
7.13%
13,028
17.35%
Food & Beverage
307
60.55%
1,037
67.82%
38,901
51.82%
Personal Services
112
22.09%
270
17.66%
15,266
20.33%
Protective Services
63
12.43%
113
7.39%
7,878
10.49%
Total
507
100.00%
1,529
100.00%
75,073
100.00%
Trade & Labor
Construction
357
24.50%
597
18.52%
18,955
13.34%
Installation & Repair
308
21.14%
659
20.44%
35,991
25.32%
Craft Production
135
9.27%
427
13.24%
13,956
9.82%
Machine Operators
106
7.28%
377
11.69%
20,165
14.19%
Assemblers
101
6.93%
215
6.67%
10,501
7.39%
Transportation
154
10.57%
303
9.40%
17,364
12.22%
Agriculture
87
5.97%
78
2.42%
5,406
3.80%
Laborers
209
14.34%
568
17.62%
19,801
13.93%
1,457
100.00%
3,224
100.00%
142,139
100.00%
Total
40
Appendix
Maps:
Full Size Maps will follow this page.
41

Forest Park K-Mart Study

Transcription

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