Lavea Brachman Contributes to Infrastructure Discussion

Today at 10am, Executive Director Lavea Brachman was featured on WOSU's All Sides with Ann Fisher in a discussion about the state of Ohio's infrastructure. Lavea was joined by Patrick Natale, Executive Director of American Society of Civil Engineers, Robert Lawler, Director of Transportation of the  Mid-Ohio Regional Planning Commission, and Barry LePatner, construction lawyer and author of Too Big to Fall: America’s Failing Infrastructure and the Way Forward.

Click here to listen to the podcast:

Infrastructure: Are we making the grade?

"The recent collapse of the I-5 bridge in northwest Washington State shined a spotlight on the country’s aging infrastructure. Since the recession, funding for bridges and tunnels has dropped steeply, and fixing them would cost an estimated $20 billion. This hour, we’ll discuss the balance of safety and spending, and how long our functionally obsolete structures will stand."

GOPC Reports Quantify Benefits of Shared Services and Governmental Collaboration

Hancock County Map

Greater Ohio Policy Center today released three research briefs highlighting the numerous benefits government collaboration can bring to local jurisdictions and the Ohio Department Transportation (ODOT).  Developed with financial support from the State of Ohio, these objective reports examine potential statewide cost savings through:

• facility and equipment sharing between local governments and county engineers,
• facility integration in counties with a large number of garages owned by ODOT and the county engineer, and
• modifications to ODOT’s service delivery and fleet management at the county level.

GOPC’s reports estimate that taxpayers statewide could save over $99 million over the next ten years by replicating local shared purchasing programs currently underway or by implementing commonsense reforms to the way service delivery is administered by ODOT and local governments.  GOPC developed these reports in coordination with the Center for Community Solutions as part of a larger research package on shared services opportunities in Ohio.

GOPC is a longtime advocate of right-sizing local government in order to encourage regional decision-making that considers economic development and land use in ways that best benefit Ohio’s metro regions.  These reports outline how our communities can maximize resources and improve the quality of our government services.

Click here to download GOPC’s three reports.

Residents Sing for Grand Rapids

By John Gardocki, GOPC Intern

The YouTube video "The Grand Rapids LipDub" inspired me to visit Grand Rapids.  I wanted to see what residents of Grand Rapids see in their shrinking city.  Citizens of so called “declining cities” often see the potential and character of their cities below the layer of vacancy and abandonment.

The first thing I noticed driving into the city is that it arrives out of nowhere; it literally is enclosed behind a wall of flora. The Grand Rapids region is committed to keeping nature as part of the city. The city is separated into four sections and has a unique topography that makes the downtown visible from the riverfront walkway.  Most of the major centers of activity are located along the river, including the Grand Rapids Public Museum, the Gerald Ford Presidential Library, the Public Market, and the Davos Auditorium.  The charm of Grand Rapids takes form in its architecture and historical neighborhoods.  Overall, I was impressed with the city and would like to come back see more.

Grand Rapids is poised to become a destination city if it continues to enhance its quality of life and garner resident support.  The video above gives a glimpse into the unique gifts of Grand Rapids.  Challenge yourself to think of the great assets of your city.  Eventually others in the community will see the potential for their places, just as Grand Rapid’s residents did.

GOPC Undergraduate Writing Intern Reflects on Vacant Properties Policies

Ryan Conlon recently graduated from the John Glenn School of Public Affairs at the Ohio State University.  Ryan spent his spring 2013 semester as an intern at GOPC to fulfill his "Writing for Nonprofits" course.  Possible Policies for Mitigating Vacant and Abandoned Properties in Ohio

By Ryan Conlon

As a part of my requirement to graduate from The John Glenn School of Public Affairs, I was assigned to write a policy recommendation on some sort of market failure.   During my time at Greater Ohio I have been learning about the vacant property issue in Ohio’s urban cores and became interested in understanding who should assume responsibility for a property when it becomes vacant.  Many homes that are going through the foreclosure process are neglected because neither the creditor nor the borrower have the necessary incentives to pay for maintenance.   My policy analysis proposes fixes for this market failure. 

I used three criteria to analyze three policy alternatives and make recommendations: effectiveness, efficiency, and political feasibility.

Creditor Responsibility Law.  Based on the New Jersey law, a similar law in Ohio would make the creditor initiating foreclosure responsible for maintenance during the foreclosure process.   In order for this policy to be successful, the cost of maintenance needs to be cheaper than the cost of paying for code violation fines.

• As an example, in the Columbus neighborhood of North Linden it costs an average of $2,517 a year to maintain property up to Ohio housing code standards
• Properties that have any code violations may be fined up to $3,000 and each day a code is violated, a separate penalty can be incurred, under Ohio Housing Code 4509.99 (A),

This policy would be effective because it will be cheaper for the financial institutions to pay $2,517 a year than to pay $3,000 or more for every code violation.  Despite these cost savings, crediting institutions would still incur high costs under this law, making it unlike that such a statute would be passed.  

Required Mediation.  The Franklin County Mediation Project (FCMP) is an optional program that gives creditor and borrower the opportunity to meet with an impartial mediator and try to renegotiate a deal to keep the owner from being foreclosed upon.  I investigated the potential costs of making mediation mandatory and found that

• the cost per mediation for FCMP is $154
• FCMP had a 50.5% “success” rate
• If every foreclosure filing were mediated it would cost the state $19.5 million for 2013

21^st Century Homesteader Program.  With this proposed program, a local government or land bank will acquire foreclosed property and allow a “homesteader” to live in the property for 18 months. During that 18-month period, the homesteader will only have to pay for maintenance and rehabbing projects.  After 18 months, the homesteader may choose to purchase the property from the government or land bank for two thirds the price of what the government purchased it for. 

• Homeowner saves $7,624.84 by participating in Homesteader Program instead of buying home at sheriff’s sale
• Net Present Value calculation shows government’s break-even point of buying a property and homesteading it comes at year 12.

 Recommendations

After analyzing all three alternatives and measuring their effectiveness, efficiency, and political feasibility; I recommend the state of Ohio begin a homesteading program.  The Cuyahoga Land Bank’s Owner Occupier Advantage Program is very similar to the homesteading program.  Governments and other land banks should strongly consider adopting a program similar to the homesteader program or Cuyahoga’s Owner Occupier Advantage Program.  These programs get responsible homeowners living in previously foreclosed or vacant property, which will reduce neighborhood blight in communities in need of revitalization.

Attending the American Planning Association National Conference

By John Gardocki, GOPC Undergraduate Intern The APA held its national conference in Chicago this year with the theme of “Planning Big.”  The conference was in April and I was fortunate to have the opportunity to attend the conference as a student member of the APA. The planners and speakers were willing to share their unique experiences in all the panels and to discuss the challenges the planning sector commonly faces.

The keynote on the second day of the conference was developed to inspire the next generation of planners to be creative in the design of the American city form. Xavier De Souza Briggs, an associate professor at MIT; gave the keynote, "Inventing the Next American Economy: Why Planning Matters and Where the Pitfalls Lie.” He stressed that all cities are looking to retain and gain jobs; however, the current economics of tax incentives will not entice the technology jobs that sustain the 21^st century graduate.

Earl Blumenauer, a U.S. Congressman representing Portland, Oregon, spoke as well about what Congress must do to enhance the planner’s job of sustaining America for generations to come.  He is an advocate for the Partnership for Sustainable Communities initiative created by President Obama to unify projects in the Environmental Protection Agency, Housing and Urban Development Department, and the Department of Transportation.

My experience at the conference has inspired me to think creatively about planning since a one-size-fits-all approach does not work in every city that needs revitalization. Chicago is investing in an elevated train railway to become a hotspot of activity, while Cincinnati is investing in its riverfront.  Both ideas are specific to the needs of each city.

New Study on Economic Benefits of Clean Ohio Revitalization Fund

A new study released by GOPC finds that public investments in brownfield sites through the state Clean Ohio Revitalization Fund (CORF) generate outsized economic benefits for Ohio’s taxpayers and communities.  Based on 21 CORF projects selected for diversity in their degree and type of end use, geographic location, and other characteristics, the GOPC study found the CORF generated substantial direct and indirect economic impacts.

• The 21 projects resulted in a net positive value for the state’s investment, producing $1.16 billion in one-time contributions and contributing $1.4 billion annually to the state’s Gross Domestic Product.
• Goods and services related to predevelopment alone produced a return on investment of $4.67 in new economic activity for every one dollar spent by the Program on the 21 projects.
• For every direct job created or sustained through activities tied to a remediated brownfield, more than one additional job was indirectly created or sustained by the 21 projects.
• Predevelopment and construction activities in the 21 projects created more than $360 million in household and business earnings, while ongoing project operations produce almost $500 million a year in household and business earnings annually.
• The 21 projects annually generate $55 million in state and local taxes and were responsible for an additional $42 million in one-time state and local taxes.

Since 2002, CORF has made grants totaling over $315 million to support the clean-up of 160 brownfield sites in 71 communities.  Due to time and resource constraints, GOPC limited its analysis to a representative sample of 21 projects at various levels of development and success located across the state.

If all 160 CORF-funded sites experienced the same level of success and failure demonstrated in the 21 sites of the study, benefits to Ohioans would be projected at 7.6 times the above benefits, including: over $8 billion in one-time and over $10 billion in annual contributions to the state GDP; over $2.5 billion in one-time household and business earnings based on remediation and construction activities and over $3.5 billion in annual household and business earnings; and $418 million annually in state and local taxes.

“The Clean Ohio Revitalization Fund has been an incredible asset to Ohio,” said Lavea Brachman, GOPC Executive Director.  “This grant program has not only protected Ohio’s environment but has served as a critical catalyst for economic development in Ohio’s communities and generated state-level return on investment.  A nationally recognized program, we now have the facts to demonstrate that it reaps incredible dividends for Ohio’s taxpayers and communities.”

The study also identified a “ripple effect” throughout the state economy from the jobs created through the cleanup activities and reuse operations. Brownfield sites are scattered by the hundreds throughout the state in cities of all sizes as well as rural areas, a legacy of Ohio’s industrial past.

Click here to download the report.

Recent news featuring the report:

"Report Highlights Economic Benefits of Brownfield Redevelopment"

Ideastream - 5/3/2013 Reporter Bill Rice

"Clean Ohio program worth its cost many times over, analysis finds"

Columbus Business First - 5/1/2013 Reporter Jeff Bell

Revitalizing Ohio's Vacant Properties: The 2013 Summit

Revitalizing Ohio's Vacant Properties:

Tools & Policies to Transform Communities

October 22-23, 2013 The Westin Columbus 310 S. High Street Columbus, Ohio, 43215

The Greater Ohio Policy Center & The Thriving Communities Institute invite you to attend Revitalizing Ohio's Vacant Properties, a two-day interactive training and policy solutions summit that will offer hands-on techniques and strategies to address vacant and abandoned property development challenges and generate redevelopment opportunities. It is intended for local and regional leaders, land bank practitioners, nonprofit community development organizations, as well as private sector representatives.

The summit will provide opportunities for input into policy reforms that arm local leaders with new tools and that align policies with local community development needs. Sessions will feature local practitioners, financial institutions, and state and national level redevelopment experts. The Institute’s goals—training and education, coalition-building and policy advancement—are vital to productively revitalize Ohio’s communities.

For questions or sponsorship opportunities, please contact Kate Hydock of Thriving Communities Institute (khydock@wrlandconservancy.org or 216-515-8300) or Christina Burke of Greater Ohio Policy Center (cburke@greaterohio.org or 614-224-0187).

Agenda and online registration information to come.