Raising the Stakes in Northern Kentucky

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Hear about how Northern Kentucky is positioning the region for economic development, what financing opportunities are available, and the recent success of Bellevue's public participation in urban planning.

Presented at the CREW Luncheon on Tuesday, June 8, 2010.

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  • Frame presentation; excitement along the urban core; TriED’s role and refer to cdfc and Bellevue
  • Tri-ED’s role in marketing Northern Kentucky and the region with Cincinnati USA and KCED; additional allies
  • Maturing community with new drivers; tie-in and importance to overall region; call out target industry focus and value proposition
  • bioLOGIC: life science incubator and their commitment to Covington/NKY; Defender Direct out of Indy – non traditional retail space results in 100 jobs
  • Defender- initial use of KBI program through KJDA (750K) and bioLOGIC and subsidiaries – several million in grants through DCI
  • Thank you very much for this opportunity to talk about a very important Vision 2015 initiative called the Catalytic Fund. This morning I would like to share with you our vision for this newly formed company ask for your assistance with uniting our community in supporting this effort.
  • With this guiding principles and research as a basis, the Catalytic Fund was formed in late 2008 as a specific tool to implement urban renaissance initiatives and to create an urban core that is a place of choice to live and work. LNK Economic Development Day 2010
  • The mission of the Catalytic Fund is to accelerate our urban renaissance through targeted investments in catalytic development and redevelopment projects in urban neighborhoods. Its intended results, which will be tangible and measurable are as follows: LNK Economic Development Day 2010
  • So why does this matter? I would like to suggest that the goal that we keep focusing on (50,000 new jobs by 2015) will not happen without a focused effort and an allocation of resources toward the revitalization of our urban core. Urban revitalization is directly linked with regional economic competitiveness and growth. LNK Economic Development Day 2010
  • So why does this matter? I would like to suggest that the goal that we keep focusing on (50,000 new jobs by 2015) will not happen without a focused effort and an allocation of resources toward the revitalization of our urban core. Urban revitalization is directly linked with regional economic competitiveness and growth. LNK Economic Development Day 2010
  • So why does this matter? I would like to suggest that the goal that we keep focusing on (50,000 new jobs by 2015) will not happen without a focused effort and an allocation of resources toward the revitalization of our urban core. Urban revitalization is directly linked with regional economic competitiveness and growth. LNK Economic Development Day 2010
  • In creating the Catalytic Fund, our guiding principle is that neighborhood revitalization and repopulation of the urban core is economic development. Cutting edge research has demonstrated that population growth creates a multiplier effect in terms of jobs. The multiplier effect is higher when the population growth is in the 25-34 year old age group. Housing vacancy is a detractor to growth and places with higher home values create more people and income. Places with high poverty rates are associated with low rates of population growth. Basically what this means is that growth is interdependent – employment, per capita income and population growth are synergistic and complementary. Housing market stability is very important to growth – the data suggests that cities should work not just on creating affordable housing to attract jobs but market rate and higher value housing as a means to attract population. LNK Economic Development Day 2010
  • This is important because although there are a lot of government programs to assist housing production, most are designed for the production of low income or affordable housing. There are really no programs or subsidies designed to encourage market rate housing in a variety of price ranges. LNK Economic Development Day 2010
  • LNK Economic Development Day 2010
  • LNK Economic Development Day 2010
  • LNK Economic Development Day 2010
  • LNK Economic Development Day 2010
  • LNK Economic Development Day 2010
  • And regional economic development recognizing that our region’s urban core includes both sides of the river – neither side is complete and vital without the other. LNK Economic Development Day 2010
  • Why do we need the Catalytic Fund? Although our growth and progress on the Riverfront is very impressive and highly visible, that progress has been slow to spread into the urban neighborhoods. LNK Economic Development Day 2010
  • Northern Kentucky’s urban core cities significantly lag the United States as well as their surrounding suburbs in all of the following categories: Per Capital income % of individuals below poverty. % of families below poverty. Educational attainment. Rates of homeownership (66% National), les than 50% Covington and Newport. LNK Economic Development Day 2010
  • In order to change this situation, revitalization plans for the urban neighborhoods are needed. But implementing these revitalization plans involves attracting private sector risk- taking development companies to the urban core. Once attracted to the urban core, developers often face financing challenges because: LNK Economic Development Day 2010
  • LNK Economic Development Day 2010
  • Although we face our own set of challenges in implementing urban revitalization plans in NKY, I prefer to focus on all of the reasons why our investment in the urban core will prove to be successful. First being a rather analytical career real estate professional, I like to look at whether demographic trends and fundamentals support the urban renaissance. One major issue that many have pointed out as being a roadblock to bringing people back to the cities is the crisis we have in many of our urban school systems. Families will not locate voluntarily in areas with underperforming schools. While I am not suggesting by any means that we forget about improving our urban schools (it should be our community’s #1 priority), the demographic data indicates that there are plenty of potential homebuyers that will not have schools as #1 decision factor in their home purchase.
  • Covington Housing Summit - Demographic Trends 06/25/10
  • Covington Housing Summit - Demographic Trends 06/25/10
  • Covington Housing Summit - Demographic Trends 06/25/10
  • We have all of the attractions offered in the largest and most dense cities in the United States but with the ease, convenience and neighborhood feel of a small town.
  • If we can make this much progress on our Riverfront, we can certainly accomplish our objectives in the urban core.
  • Raising the Stakes in Northern Kentucky

    1. 1. Raising the Stakes in Northern Kentucky! Karen Finan, Jody Robinson & Jeanne Schroer CREW Greater Cincinnati June Luncheon Tuesday, June 8, 2010
    2. 2. Excitement along the Urban Core
    3. 3. Marketing Northern Kentucky
    4. 4. Marketing Northern Kentucky <ul><li>Long-term </li></ul><ul><li>Focus on: </li></ul><ul><ul><li>business development </li></ul></ul><ul><ul><li>client cultivation </li></ul></ul><ul><ul><li>media relations to key audiences </li></ul></ul><ul><li>Targeted visitation program – over 35 marketing missions in 4 years throughout the US </li></ul>
    5. 5. Northern Kentucky Emerging <ul><li>CVG and regional air service </li></ul><ul><li>Strong Existing Industry base </li></ul><ul><li>Continued focus on target industries </li></ul><ul><li>NKU’s College of Informatics </li></ul><ul><li>University of Cincinnati – Research </li></ul><ul><li>Ohio River as a transportation waterway </li></ul><ul><li>Ohio River as an entertainment brand </li></ul><ul><li>Ohio River as a community base </li></ul>
    6. 6. Northern Kentucky Emerging <ul><li>Northern Kentucky’s Urban Core </li></ul><ul><ul><li>Importance of Community Development to NKY’s Economic Development Efforts </li></ul></ul><ul><ul><li>Signature urban sites and buildings focus and its appeal to national/international prospects </li></ul></ul><ul><ul><ul><li>bioLOGIC </li></ul></ul></ul><ul><ul><ul><li>Defender Direct </li></ul></ul></ul>
    7. 7. KBI Program <ul><li>Defender Direct </li></ul><ul><li>bioLOGIC </li></ul>
    8. 8. Challenge Areas <ul><li>Available lab space, other product type </li></ul><ul><li>Competitive incentives </li></ul><ul><li>Preservation of existing clients </li></ul><ul><li>Refreshing our mindset as a region </li></ul>
    9. 9. City of Bellevue Preserving the Past, Preparing for the Future
    10. 10. Preserving the Past <ul><li>1987 Established local historic district </li></ul><ul><li>2001 Fairfield Avenue joins the National Main Street Program </li></ul>
    11. 11. Preparing for the Future <ul><li>Assets </li></ul><ul><ul><li>Community character </li></ul></ul><ul><ul><li>Progressive leadership </li></ul></ul><ul><ul><li>Location </li></ul></ul><ul><li>Challenges </li></ul><ul><ul><li>Built-out community </li></ul></ul><ul><ul><li>Fear of change </li></ul></ul><ul><ul><li>Disconnected development </li></ul></ul>
    12. 12. Increasing Bellevue’s Odds <ul><li>Form-Based Code (SmartCode) </li></ul><ul><li>Public realm </li></ul><ul><li>Pedestrian-oriented </li></ul><ul><li>Sustainable </li></ul><ul><li>Predictable </li></ul><ul><li>Developer-friendly </li></ul>
    13. 13. Across the Board <ul><li>Charrette Process </li></ul><ul><li>Public Input </li></ul><ul><li>Public Calibration </li></ul>
    14. 14. Riverfront
    15. 15. Shopping Center
    16. 16. The Party Source
    17. 17. Challenge Area <ul><li>Traffic congestion </li></ul><ul><li>Car versus the pedestrian </li></ul><ul><li>Sustainability </li></ul>
    18. 18. The Catalytic Fund Capital Where it Counts Investing in Northern Kentucky’s Urban Renaissance
    19. 19. What is the Catalytic Fund? <ul><li>Private sector </li></ul><ul><li>Not for profit </li></ul><ul><li>Financial assistance for commercial and residential real estate projects in Northern KY’s urban core cities </li></ul>Providing flexible and patient capital for urban revitalization projects.
    20. 20. What is the Catalytic Fund’s Mission? <ul><li>To accelerate Northern Kentucky’s urban renaissance through targeted investments in catalytic real estate development and redevelopment projects in urban neighborhoods. </li></ul>
    21. 21. <ul><li>Vision 2015: “The Northern Kentucky region will reinvent its economy and create new jobs that insure continued growth and competitiveness.” </li></ul>Why Does the Urban Renaissance Matter?
    22. 22. <ul><li>“ Between 1980 and 2005, virtually all net new jobs were created by firms that were 5 years old or less … that is about 40 million jobs” ( New York Times : “Start-Ups, Not Bailouts”). </li></ul>Where Are New Jobs Coming from in Today’s Economy?
    23. 23. <ul><li>These are “New Economy” jobs who hire “creative class” talent. </li></ul><ul><li>Talent now seeks place. </li></ul><ul><li>Asked of 1,000 25-34 year old college age graduates: Thinking about how you will look for and choose your next job, which of the following best reflects your opinion? </li></ul><ul><ul><li>36% - Look for the best job I can find. The location is pretty much a secondary consideration. </li></ul></ul><ul><ul><li>64% - Look for a job in a place I would like to live. </li></ul></ul>Where Are New Jobs Coming from in Today’s Economy?
    24. 24. Place Matters in the New Economy <ul><li>Regions with vibrant downtowns have a far better chance of recruiting the “creative class” of worker that are key to economic growth. </li></ul>
    25. 25. Catalytic Fund’s Guiding Principle <ul><li>Neighborhood revitalization through strategic investment to repopulate the urban core is economic development. </li></ul><ul><ul><li>Any new person creates more than 1 job. </li></ul></ul><ul><ul><li>Places with more 25-34 year olds create more jobs. </li></ul></ul><ul><ul><li>Housing vacancy and abandonment is a growth detractor. </li></ul></ul><ul><ul><li>Higher home values create more people and income. </li></ul></ul><ul><ul><li>Poverty rates have negative impacts on population growth (“Chasing our Past or Investing in our Future”, LPI). </li></ul></ul>
    26. 26. <ul><li>A diverse and vibrant housing market providing a mix of housing types and price ranges. </li></ul>What are the Catalytic Fund’s Intended Results?
    27. 27. What are the Catalytic Fund’s Intended Results? <ul><li>Attraction and retention of businesses to provide jobs and services for city residents. </li></ul>
    28. 28. What are the Catalytic Fund’s Intended Results? <ul><li>Elimination of blight to prevent and reverse neighborhood decline. </li></ul>
    29. 29. What are the Catalytic Fund’s Intended Results? <ul><li>More retail, dining and entertainment options for residents and visitors. </li></ul>
    30. 30. What are the Catalytic Fund’s Intended Results? <ul><li>Repopulation of the urban core to create a growing tax base. </li></ul>
    31. 31. What are the Catalytic Fund’s Intended Results? <ul><li>Higher homeownership rates. </li></ul>
    32. 32. What are the Catalytic Fund’s Intended Results? <ul><li>Regional economic development. </li></ul>
    33. 33. Why Does NKY Need the Catalytic Fund? <ul><li>Growth on the Riverfront has been slow to spread into the urban neighborhoods. </li></ul>
    34. 34. Why Does NKY Need the Catalytic Fund? <ul><li>Although some progress </li></ul><ul><li>has been made… </li></ul><ul><li>… there is still a lot to do. </li></ul>
    35. 35. Why Does NKY Need the Catalytic Fund? <ul><li>Urban projects are difficult to finance conventionally and often need subsidy. </li></ul><ul><ul><li>“ Pioneering”. </li></ul></ul><ul><ul><li>Small but complex. </li></ul></ul><ul><ul><li>Higher financial risks. </li></ul></ul><ul><ul><li>Require a long term investment perspective = patient capital. </li></ul></ul>
    36. 36. What Does the Catalytic Fund Do? <ul><li>The Catalytic Fund implements revitalization plans by: </li></ul><ul><ul><li>Facilitating site control. </li></ul></ul><ul><ul><li>Acting as financial packager. </li></ul></ul><ul><ul><li>Recruiting qualified developers. </li></ul></ul><ul><ul><li>Investing patient capital. </li></ul></ul>
    37. 37. Why Will Our Urban Core be Successful? <ul><li>Urban is “in”! Emerging trends/demographics impacting housing demand support the urban renaissance: </li></ul><ul><ul><li>Population growth </li></ul></ul><ul><ul><li>Population age </li></ul></ul><ul><ul><li>Household size </li></ul></ul><ul><ul><li>Household composition </li></ul></ul><ul><ul><li>Consumer preferences </li></ul></ul>
    38. 38. Demographic Forces Impacting Housing <ul><li>83% of the growth in total households through 2030 will be from households with no children (“The New Urbanity”, Nelson, 2008). </li></ul>
    39. 39. Demographic Forces Impacting Housing <ul><li>Impact of Generation Y: (FromRCLCO) </li></ul>Renters become firsttime homebuyers
    40. 40. Demographic Forces Impacting Housing <ul><li>Impact of Generation Y: (From RCLCO) </li></ul><ul><ul><li>77% of Generation Y plan to live an urban core! </li></ul></ul>
    41. 41. Why Will Our Urban Core be Successful? <ul><li>We have a lot to work with! </li></ul>Views…
    42. 42. Why Will the Catalytic Fund be Successful? <ul><li>We have a lot to work with! </li></ul>Two Rivers….
    43. 43. Why Will Our Urban Core be Successful? <ul><li>We have a lot to work with! </li></ul>Walkable Street Grids…. (“Natural” New Urbanism)
    44. 44. Why Will Our Urban Core be Successful? <ul><li>We have a lot to work with! </li></ul>Great building stock…
    45. 45. Why Will Our Urban Core be Successful? <ul><li>We have a lot to work with! </li></ul>The best of both worlds….
    46. 46. Why Will Our Urban Core be Successful? <ul><li>We have a lot to work with! </li></ul>Community openness to change…

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