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OTR Special

Improvement District
by the OTR SID Working Group

a stronger Cincinnati
BACKGROUND
• OTR Chamber studied the potential for SID creation 8 years
ago, but property values didn’t support its formation at that
time.

• 3CDC + private neighborhood partners have been voluntarily


funding supplemental services above the level of local
government service for the last 7 years, but this has become
unsustainable and will end in 2019.

• A working group of neighborhood stakeholders recently


revisited potential for SID creation; created a steering
committee to assess viability and is leveraging 20 years of
experience from the downtown SID (DCID).

a stronger Cincinnati
Working Group
• Bobby Maly, The Model Group (Co-Chair)
• Stephanie Gaither, Neyer (Co-Chair)
• Andy Hutzel, OTRCH
• Greg Olson, Urban Sites
• William Thomas, Mortar
• Kelly Adamson, OTR Chamber
• Bob Deck, 4EG
• Barbara Hauser, Resident
• Annette Wick, Resident
• Robert Sehlhorst, OTR Community Council
• Joe Hansbauer, Findlay Market
• Staffing support from DCI and 3CDC

a stronger Cincinnati
WHAT IS A SID?
• A Special Improvement District is a structured method of
raising funds in a geographical area in order to manage
and deliver critical services above the level of services
provided by local government. According to the Urban
Land institute (ULI), it:
• Is a system by which multiple unrelated property owners
cooperate to share the costs of common problems.

• Creates a sustainable funding system, making possible multiple


year funding plans and budgets.

• Is authorized by government through legislation that defines the


organization’s purpose, governing structure, functions, and limits.

a stronger Cincinnati
WHAT IS A SID?
• Services and SID Boundary to be determined by property
owners – outlined in a Service Plan

• Funded by property owners within the boundary through


an assessment (paid bi-annually with property taxes)

• Service Plan + Assessment must be approved by 60% of


property owners per Ohio law (linear front footage)

• The downtown SID (DCID) is a 501c3

a stronger Cincinnati
HOW IS A SID GOVERNED?
• An independent non-profit corporation is formed to
govern

• Property owners elect a Board of Trustees responsible for:


• Developing a Service Plan
• Directing services, usually by hiring a 3rd party provider
• Determining the assessment criteria (% front footage + % property
value)

• 100% of the net assessments go directly to the Trustees to


fund the Service Plan.
• The county auditor charges 3-4% for administration per code.

a stronger Cincinnati
HOW DO OTHER CITIES DO IT?
• In our own city, DCID has been in place for 20 years.

According to NEXT CITY


• 1,000 US cites and towns have Special Improvement
Districts
• NYC has 73 separate SIDs, including 39 in low to moderate
income neighborhoods

a stronger Cincinnati
SID IS NEEDED IN OTR
• Funding of the current services are privately controlled and
unsustainable, and the SID is the best mechanism to replace that
funding.

• Long term sustainability for services ensures critical services remain in


place and are optimized to the needs of residents and business

• Geographic expansion and broader community tailoring of current


services

• Community driven process to determine the Service Plan

• Community control vs. private control. Built-in accountability with


Trustees to ensure Service Plan is carried out per owners’ vision.

a stronger Cincinnati
SID IS NEEDED IN OTR

a stronger Cincinnati
AREA TO BE INCLUDED

• Initial analysis supports OTR area


south of Liberty, between
Central Parkway (West) and
Spring Street (East)

• There is interest to financially


support services north of Liberty
until area could support SID
inclusion by seed funders (OTR
Chamber, CFFM, 3CDC, Model +
Urban Sites,)

a stronger Cincinnati
LEVEL OF SERVICE
• Proposed Service Plan – SAFE & CLEAN FOCUS
• Visibility and safety presence in collaboration with CPD
• Detailed litter control, power washing and detailed cleaning including weed and
graffiti removal
• Streetscape beautification (planters)
• Snow removal
• Social service coordination outreach
• Collaboration with Keep Cincinnati Beautiful, Urban Forestry + Cincy Park Board for
beautification projects

• ADDITIONAL ENHANCEMENTS or REDUCTIONS of Service


• Marketing + stakeholder services, Community engagement + social media could be
added but would raise the costs of assessments detailed on following slide
• Likewise, services could be cut back or eliminated in order to lower the cost of
assessment

a stronger Cincinnati
COST TO PROPERTY OWNERS
• 3CDC and DCI have estimated a $500,000 budget for
SAFE & CLEAN focused services
• Basis for assessment 25% front footage and 75% on County Auditor
assessed value
• Assessment = $1.56 per linear front foot + $0.93 per $1,000 of market value

For example, a condo assessed by County Auditor at $175,000 with 5 linear


front footage would pay $191 annually.

A commercial building assessed at $800,000 with 200 linear front footage


would pay $1,051 annually.

a stronger Cincinnati
NEXT STEPS
• OTR SID Working Group is connecting with our property
owner neighbors to advance the SID conversation for
OTR
• What level of services is desired?
• What boundaries?
• What term of service plan years? (eg. DCID is 4 years)

a stronger Cincinnati

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