Building a Stronger Economy

By Nick Spencer

Nick Spencer's Economic Growth Action Agenda

"BUILDING A STRONGER ECONOMY" AN ECONOMIC GROWTH ACTION AGENDA

Cincinnati is a city with limitless potential. We seem to have it all--great neighborhoods, Fortune 500 companies, eclectic small businesses, world-class universities, a thriving arts scene, and some of the best people in the world.

But Cincinnati's economy is hurting, badly. Recent studies bear this out: our city is losing people and jobs at one of the fastest rates in the country. To counter this, our community will need real leaders at City Hall who understand what it takes to get our city moving again. While plenty of politicians talk about revitalizing our local economy, I have a real record of leadership on this issue. When the census showed people were leaving our city in droves, I founded Cincinnati Tomorrow, a non-profit group working to rebuild our population base. When our small businesses were hurting after the riots and the boycott, I launched the After 5 walks, bringing people out every week to support struggling shops and restaurants in our downtown and our neighborhoods.

Below is my detailed Action Agenda to rebuild our city's jobs and population base through business friendly policies, smart growth principles, and creative ideas. I've outlined specific recommendations, and when necessary, explained how I would fund those initiatives. We can, and must, build a stronger economy for all Cincinnatians.

Create Jobs & Economic Opportunity.

Cincinnati must become a truly business-friendly city that creates jobs and economic opportunity for all its residents. To do that, I will propose a number of initiatives and structural reforms that will help encourage economic investment and new business development within our corporate limits.

To begin that process, I will call for the institution of a Council Subcommittee for Job Growth, Business Development, and Workforce Development. We need at least one Council Committee to be focused on growing our city and rebuilding our jobs and population base. The city is poorly served by the current system, which pushes business development initiatives through the Finance, Neighborhoods, or Community Development Committees. This new subcommittee would help determine the proper financial incentives that the city should offer for business growth, monitor their implementation and disbursement, lobby the State for more government jobs investment (particularly through the Third Frontier new technologies program), and oversee all job training and job placement programs in the city.

Economic incentives can be a powerful tool in spurring new job growth. That's why I support the proposed Cincinnati Job Creation Act, which offers a simple, easy-to-understand program to reward employers that invest in our city. Essentially, the program would award Job Creation Tax Credits to any business that creates at least 10 new jobs in the city. Job Creation Tax Credits award half of the earnings tax collected by the city for those new jobs back to the employer for a period of 5 years. I will also explore creating a similar incentive for small businesses that ties job creation tax credits to a percentage of their workforce, as opposed to an arbitrary number like ten. For example, if a 5-employee business wants to double the size of their workforce, such a move should be rewarded in some way by the city, in my view.

Support Small and Minority-Owned Business Growth.

3 out of every 4 new jobs created in our city are created by small businesses. On Council, I will be a strong advocate for our city's small business owners. As one myself, I am uniquely equipped to deal with the problems and hurdles often placed before entrepreneurs in our city. Too often, City Hall has viewed local businesses as an easy way to put money in the coffers--by hiking up permits and inspection costs every time they face a budget deficit. That inexcusable and reckless behavior has cost our city thousands of jobs by now, and it must stop.

I will propose a New Business Creation Act that offers new entrepreneurs 3 years of permit fee-forgiveness and full property tax credits. Such a move can help eliminate thousands of dollars in startup and early operating costs for many new businesses.

I will also propose a program to fill storefronts in our Center City and our Neighborhood Business Districts, by offering modest rent subsidies to entrepreneurs. A $2 million dollar fund (via the Capital Improvement Budget) would pay half of each month's rent (with a maximum of $1000 per month in total, or $500 for the City's share), for the length of the business' initial lease (up to 36 months). Under this program, at least 110 new businesses would be created (conservatively assuming all recipients took the maximum amount of subsidy), filling otherwise empty storefronts with new life and energy.

Our city must also work to support inclusion in economic growth. On Council, I will support our minority-owned businesses by pushing for an aggressive appeal of the Courts' recent poor decision to do away with our Small Business Matters program, which requires all city development contracts to have a solid amount of minority-owned business participation. In addition, I will work to raise our inclusion goals from the current 25 percent to at least 33 percent. I will also push for greater scrutiny on contract awards, to ensure that real minority bids are rewarded, and dummy corporations are shut out of the process.

Restore the Department of Community Planning.

Several years ago, City Hall dealt our neighborhoods a serious blow by dismantling our Department of Community Planning. Since then, community development has stagnated, with confusion over who does what at City Hall, and poor execution of existing plans for growth. Its hard to believe Cincinnati was once lauded as one of the "best planned cities in America" based on our recent poor performance. We need a return to successful policies that reward creative development and grassroots-driven urban growth.

I will propose re-instating a 16-employee Department of Community Planning to ensure that all development projects in our city fit into a long term vision for our neighborhoods. Some positions can be filled by existing employees in the Community Development Department. To pay for this important initiative, we should eliminate at least 4 positions from the Mayor's and the City Manager's Offices (which will be in transition next year anyway), and eliminate funding for the Port Authority of Greater Cincinnati (about $250,000 yearly).

Revitalize Our Center City.

As an Over-the-Rhine resident and business owner, I'm a passionate and experienced advocate for our city's urban core. On Council, I will work to increase funding for Downtown Cincinnati Inc, and particularly their Ambassador and Homeless Treatment programs. Both have helped make a serious impact on safety in our Center, and need to be expanded. To give more to this important program, Council should eliminate a number of currently unfilled management positions funded in our budget. Below is a short list of potential projects for our Center City that I will work to support through strategic Capital Budget investment, public private partnerships, TIF Financing, and Federal/State funds:

Our Riverfront: The Banks- Nothing represents our city's limitless (but under-utilized) potential more than our scenic riverfront. That's why I support the County's proposal to hire Corporex and Vandercar Holdings as The Banks project's primary developers, and I will vote to award the City's air rights to the County as soon as possible. I pledge to work with the County Commissioners and both developers to ensure that the city is an eager and helpful partner in the process at all points. Working with these entities, I'm excited about building a mixed-use urban village that will be the focal point for our entire region.

Fountain Square: I am a supporter of 3CDC's plan to overhaul the square by attracting new retail and restaurant tenants, and rehabbing the public space itself. I pledge to work with public and private leaders to ensure that construction, property acquisition, and tenant attraction work proceeds as smoothly as possible.

Broadway Commons: I will work with business leaders and a new Department of Community Planning to create a Broadway Commons Master Plan that includes residential, entertainment, and recreational uses. I will explore using TIF Financing to fund a restoration of the original street grid (straightening out Reading Road), and provide funding for property acquisition.

The T: I will call for a new exploration of developing "The T," an arts district plan proposed several years ago by CityBeat. The T would begin at the Contemporary Arts Center, continue past the Aronoff Center for the Arts and the Downtown Library, up to 12th Street. There, East-To-West, it would link the old SCPA building, the Main Street Entertainment District, the new Art Academy, The Ensemble Theatre, Washington Park, and the new SCPA site. To connect all this, the city must work to revitalize the gap that exists between 9th Street and Central Parkway on Walnut, via construction of a new Arts facility--to potentially house performance institutions, film consortiums, or other cultural entities. The City must also commit to funding a renovation of the historic Emery Theatre at Central Parkway and Walnut, perhaps utilizing the space as a contemporary concert venue.

Washington Park: I support 3CDC's efforts to breathe new life into the Washington Park/Music Hall District, including a comprehensive housing plan that is mixed-use and mixed income. I support all proposals announced so far, including the relocation of Washington Park Elementary to Walnut Street, and a new parking garage near Music Hall.

Findlay Market: I support the work of the Findlay Market Corporation, including the addition of Sunday hours. On Council, I will work aggressively to build out and redevelop the areas adjacent to the Market (including the "African Quarter" project proposed by a group of OTR stakeholders) and push to find more minority tenants for the Market space itself.

Vine Street: Our city's most important artery, connecting Downtown to the University of Cincinnati, has been overtaken by violent thugs, drug dealers, and prostitutes. This careless destruction must stop. In addition to aggressively increasing our police presence, I will work to bring new entertainment and cultural destinations to Vine Street, as well as more residential development.

Main Street: As a bar owner in the Main Street Entertainment District, and a resident in the North Main Gallery District, I am highly attuned to the challenges that face Overthe- Rhine's most promising street. We must work to eliminate panhandling and car break-ins through an increased police presence and an expansion of the Downtown Ambassador program to include the Bar district on weekends. On Council, I will propose a Main Street Parking Validation program that encourages visitors to park in nearby garages instead of on-street, as well as better parking signage. I will also propose using the city's powers to relocate homeless agencies that have shown reckless disregard for the area around them, and close off the street to vehicular traffic on warm weather weekends.

Revitalize our Neighborhoods.

Cincinnati is a city of great neighborhoods, but City Hall has failed to support them properly. Community leaders are frustrated by a lack of resources and attention from our political leadership. To reverse this, I will propose a series of initiatives designed to invest in our neighborhoods and reverse recent years of decline.

The most powerful, and under-utilized, tool our neighborhoods have are Business Improvement Districts (BIDS). BIDS assess a voluntary "additional tax" on businesses, with the incomes generated going specifically to that area business district. In many cities, BIDs have been used to fund streetscape improvement, marketing plans, and property acquisitions that would have been impossible otherwise.

I will also be a consistent supporter of new TIF Districts, which offer a similarly tool for neighborhood growth. With TIF and BID financing, as well as a re-instated Department of Community Planning and the business development incentives outlined above, we can begin to see a real renaissance in Cincinnati's proud and beautiful neighborhoods.

Reverse Cincinnati's "Brain Drain."

Cincinnati is losing population at the second fastest rate in the country (only Detroit fares worse). Even more troubling, we seem to be hemorrhaging young college graduates at an accelerated rate. As the founder of Cincinnati Tomorrow, a non-profit group working to keep & attract young and creative people in our city, I've been a leader in the effort to stem the exodus of young talent workers. The issue is complex, far-reaching, and of the highest importance. Luckily, our city has a plan to rebuild our local creative class. On Council, I will push for the full implementation of the Creative City Plan, Cincinnati Tomorrow's 42-page guide to making our city a Talent Magnet once again. We must make Cincinnati a more inclusive, exciting, and authentic destination if we hope to reverse our massive population losses, and we must start now.

Encourage Homeownership & New Residential Development.

In addition to a draining population base, our city has one of the lowest homeownership rates in the nation. To reverse these troubling statistics, we need to both encourage homeownership and help build up our residential housing stock.

One way to do this is through the proposed Cincinnati Homeownership Act, which I support. The proposal would reward first-time home buyers and new city residents with a $2,500 income tax credit over 5 years (at $500 per year). This is a great way to encourage people to move back to or buy their first home in the city.

Another consistent deterrent to homeownership in our city is our local property tax rate. I supported last year's ballot initiative to eliminate the city property tax altogether, and I pledge to support city property tax rollbacks consistently and without fail.

We must also work to build up new construction of housing stock. With planned projects at the Riverfront and near Mt. Adams, potential for expansion at Garfield Park, St. Xavier Park, and City West, as well as new sites like Broadway Commons and in the University District, our city is poised for major residential growth in the urban core. And we must continue to support projects like Citirama, which build out new subdivisions in our neighborhoods.

Cincinnati existing housing stock, in many neighborhoods, is in poor shape and badly underused. I will support housing rehab projects by re-instating our Façade Improvement Grant program and expanding our property tax abatement incentives.

Practice Fiscal Responsibility at City Hall.

Encouraging economic growth at City Hall means first getting our own fiscal house in order. To do that, I pledge to hold each department truly accountable for its use of taxpayer dollars.

One way accomplish that is by re-instating Managed Competition, which puts city services out for bid and asks city departments to compete with the private sector. This process saved our city millions of dollars and cost us no jobs, but was eliminated last year with no reason given. I pledge to vote consistently for managed competition and privatization as a means of practicing fiscal responsibility and improving delivery of basic city services.

Our city can learn a great deal by examining best practices in the private sector. On Council, I will propose a City Procedural Reform Task Force, made up of business leaders and city administrators, to find cost savings and reforms that can help streamline city operations. A similar task force on economic development accomplished great things for our city two years ago, leading to the implementation of a One Stop shop for developers and an Economic Development Strike Team in the City Manager's Office.

Improving Mass Transit.

To help spur economic growth in jobs and residents, we must support mass transit, including light rail and rapid transit buses. On Council, I will propose a ballot initiative to implement the Metro Moves plan (which calls for an I-71 Light Rail Line, streetcars in our Center City, and better buses) inside city limits. Such a move would likely encourage neighboring municipalities to build rail lines and transit centers of their own, and could reverse decades of sprawl and traffic congestion. I am also a supporter of the County's effort to build an Eastern Corridor light rail line, using funds generated by riverfront garages. This route, from the riverfront to Milford, could spur a great deal of new residential construction up along the Ohio River.

Pursuing Regional Government.

Cincinnati's economy is struggling to deal with the problem of urban sprawl. As new land in outlying suburbs has been developed, we've seen an exodus of people and jobs from within city limits. After years of this, our region resembles a doughnut--heavily populated and growing in jobs, but emptying out in the middle.

In addition to this, the City and County governments have proven themselves unable to work together. The two bicker constantly over crime and economic development initiatives. To remedy this, our region must begin to explore our potential for a Metro Government. Metro systems in Louisville, Columbus, and Indianapolis are outperforming us in many ways, because they have focused the entire region on clear goals, and eliminated the senseless competition for jobs and residents among neighbors. On Council, I will be a strong voice for governmental consolidation at every opportunity.

FOR MORE POSITION PAPERS AND ISSUE STATEMENTS, VISIT SPENCER2005.COM!