The Water & Sewer Infrastructure Crisis and Potential Paths Forward

By Samantha Dawson, GOPC Intern, and Marianne Eppig, Manager of Research & Communications Our nation and its legacy cities are facing an impending infrastructure crisis: water and sewer systems are failing and require modernization as soon as possible. Most of these water and sewer systems were built following WWII, meaning that they are approaching the end of their useful life. In some places, the infrastructure is already beginning to fail, leading to water main breaks, housing floods, sewage overflows into the environment, and public health crises.

While the national bill to upgrade this infrastructure has been estimated at around $1 trillion, costs for addressing Ohio’s existing water and sewer system deficiencies are estimated to be around $20.84 billion, according to the American Society of Civil Engineers.

To meet federal clean water mandates, cities must find ways to finance these needed infrastructure overhauls in short order. So far, many cities around Ohio have been ratcheting up water and sewer rates. The city of Akron, for example, has increased rates by 71% in one year. Other cities around Ohio have raised rates between 30% to 50% or more within the last two years.

   

GOPC is currently looking into other financial tools that can be used to restore Ohio’s water and sewer infrastructure systems. We will be discussing these tools with a panel of experts at our upcoming 2015 Summit on June 9^th during the following session:

Finding Solutions to Ohio's Water Infrastructure Challenges 

Ohio cities, large and small, must address the critical behind-the-scenes challenge of modernizing their water and sewer infrastructure to avoid potential serious public health crises and environmental degradation, and to create capacity to attract and support businesses and residents.  However, Ohio’s cities are struggling to find ways to finance the complicated infrastructure overhauls needed to address these challenges, comply with federal mandates, and even support on-going maintenance. On this panel, experts will discuss the scope of these infrastructure challenges along with innovative financing approaches and sustainable solutions necessary for Ohio’s cities to function smoothly and accommodate regrowth.

We hope you will join us at the 2015 Summit! For more information about the Summit agenda and to register, click here.

Two GOPC Policy Recommendations Incorporated in Statewide Transportation Budget Bill

Throughout February, Greater Ohio Policy Center has been testifying to the Ohio House of Representatives on the Ohio Department of Transportation’s (ODOT) biennium budget, calling for policies that would lead to a modern and diverse transportation system in Ohio.

The Ohio House Finance Committee has incorporated two of GOPC’s policy recommendations into the transportation budget bill that passed out of the House Finance committee in late February. As a direct result of GOPC’s testimony and educational efforts, the bill now includes:

Sec. 5501.08. The department of transportation, in order to assist in statewide strategic transportation planning, shall develop metrics that allow the comparison of data across transportation modes and that also incorporate the full spectrum of state strategic transportation goals, including all of the following:

(A)   Anticipated future costs of maintaining infrastructure in acceptable condition, both short-term and long-term;

(B)   Short-term economic impact, one to five years, and long-term economic impact, thirty years and longer;

(C)   Economic impact on a region's future rate of job growth and job retention;

(D)   Motorist, bicyclist, and pedestrian counts, and number of accidents by mode.

Section 755.40. There is hereby created the Joint Legislative Task Force on Department of Transportation Funding. […] The Task Force shall examine the funding needs of the Ohio Department of Transportation. The Task Force also shall study specifically the issue of the effectiveness of the Ohio motor fuel tax in meeting those funding needs. Not later than December 15, 2016, the Task Force shall issue a report containing its findings and recommendations to the President of the Senate, the Minority Leader of the Senate, the Speaker of the House of Representatives, and the Minority Leader of the House of Representatives. At that time, the Task Force shall cease to exist.

These provisions will help the state maximize resources and fully leverage the potential of Ohio’s multi-modal transportation system, which is essential to enhancing Ohio’s draw as a place where businesses can thrive and where people want to live.

The bill, Amended Substitute House Bill 53, will be voted on by the House of Representatives in early March. The Ohio Senate will begin hearings in early March and GOPC will be testifying in support of these two provisions, as well as other policy recommendations that could lead to a modern and diverse transportation system in Ohio.

GOPC applauds the House Finance Committee for its contributions to this proposed legislation.

GOPC Testifies on ODOT Budget

GOPC calls for policies that would lead to a modern and diverse transportation system in Ohio By Alison Goebel, Associate Director

Every two years, Ohio’s Governor submits a proposed Operating Budget to the General Assembly. This biennium budget for fiscal years 2016 and 2017 is proposed at $72.3 billion. Of that overall budget, $5.9 billion have been allocated to the Ohio Department of Transportation to support its capital projects and operations.

The Ohio Department of Transportation oversees and funds all modes of transportation in Ohio, including railroads, maritime ports, airports, state routes and highways, and public transportation.

Approximately 92% of ODOT's biennium budget is to be used for the maintenance and construction of highways and bridges, which mostly translates into capital dollars for highway repair and expansion. Undoubtedly, Ohio’s highways are a critical asset to the state; with key national highways running through Ohio, the state must maintain the highways in good repair.

However, other modes are critical to the long-term economic health of the state, as well. In particular, public transit has always played, and will increasingly play, an essential role in job growth in the state. Public transit connects workers to jobs—low wage workers utilize public transit, as do “choice riders” who prefer the convenience of public transit to driving. National studies have confirmed again and again that young professionals are showing a strong preference for a range of transportation options.

To attract and retain young professionals in Ohio—the next generation of economic generators—the state of Ohio must assist local transit agencies in meeting the demands of this workforce.  Currently 2% of the ODOT budget goes to supporting Ohio’s 61 public transit agencies.

This past week, GOPC provided testimony to the House Finance Subcommittee on Transportation urging the Legislature to increase funding for public transit and to put into place policies that would help “level the playing field” for transit, bike and pedestrian infrastructure, and other options that would modernize the state’s transportation system and help prepare the state to attract and retain residents who expect a range of transportation choices.

GOPC will be providing similar testimony to the full House Finance Committee and the Senate Finance Committee in the coming weeks as the Legislature works to finalize the ODOT budget.

GOPC Co-Hosts Roundtable on Rebuilding Neighborhood Markets

This Tuesday, Greater Ohio Policy Center (GOPC) co-hosted the Roundtable, "Rebuilding Neighborhood Markets: Strategies for Linking Small Business Support and Commercial Vacant Property Reuse in Ohio’s Communities" in partnership with the Ohio CDC Association and the Finance Fund. This Roundtable was part of ongoing work that GOPC will be conducting to promote the combination of small business support and commercial vacant properties in Ohio's communities. We've included presentations and materials from the event below. Introductory presentation by Lavea Brachman, Executive Director of the Greater Ohio Policy Center, framing the event:

Brachman introduced the discussion by demonstrating the need for further efforts to connect small business growth and commercial revitalization throughout Ohio.

Presentation by Mihailo (Mike) Temali, Founder and CEO of the Neighborhood Development Center in St. Paul, MN:

Temali presented the Neighborhood Development Center's unique approach that involves training local entrepreneurs and redeveloping commercial vacant properties where their new businesses can locate.

Temali also provided the following materials:

• "Bringing Vitality to Main Street: How Immigrant Small Businesses Help Local Economies Grow" by Americas Society and Council of the Americas and the Fiscal Policies Institute (PDF)
• NDC: More than Two Decades of Small Business and Job Creation handout (PDF)
• 2013 Stories of Community Impact (PDF)
• A job-creating nonprofit that pays back... and more (PDF) handout on the annual economic impact of NDC activities
• National Journal article: "The Nonprofit That Gives Broke Entrepreneurs a Chance" May 2014 (PDF)
• Joint Working Protocol and Statement of Principles for Twin Cities Nonprofit Business Lender Collaborative (PDF)
• Overview of NDC Program Performance (PDF)
• NDC Entrepreneur Training Statistics (PDF)

Presentation by Kimberly Faison, Director of Entrepreneurial Initiatives for ProsperUS in Detroit, MI:

Faison discussed how they are adopting the Neighborhood Development Center's model in Detroit by concentrating micro-enterprise development in low-income immigrant and minority neighborhoods.

Faison also provided the following materials:

• ProsperUS Detroit Quick Facts (PDF)
• Link to video of 2014 ProsperUS Detroit Annual Convening, also featuring Mihailo Temali
• Link to Challenge Detroit presentation by Data Driven Detroit, which presents major issues that affect Detroit
• Link to the video “A Hurricane without Water” – 18 minute long video on the property tax crisis in Detroit
• Link to ProsperUS Detroit's YouTube Channel

Overall, this Roundtable provided an opportunity to discuss the merits of this model, relevant existing programs and practices in Ohio, and efforts needed for a potential longer-term effort that would connect small business growth and commercial revitalization throughout the state. We look forward to engaging further in this work!

Brachman Presents Ways to Leverage the Economic Potential of Ohio's Cities, Towns & Metros

By Samantha Dawson, GOPC Intern Last Thursday, January 22, GOPC’s Executive Director, Lavea Brachman presented at OSU’s Center for Urban & Regional Analysis. During the presentation, “Shining Cities on a Hill or Lights Under a Bushel? Realizing the Economic Potential of Ohio’s Cities, Towns and Metros,” Lavea discussed ways for regenerating prosperity in Ohio’s cities, towns and metros and leveraging the state’s assets to fulfill our cities’ potential.

Research on city trajectories has indicated little population growth and subsequent decreases in economic standing in our legacy cities. By looking at other locations that have successfully revitalized, such as Pittsburgh and Baltimore, Greater Ohio has been learning ways to improve these cities’ potential.

In order to return prosperity to these cities, a positive transformation needs to take place--introducing these metropolises to the new economy. By physically rebuilding these areas and introducing new uses to vacant properties, there will be growth and regeneration of the success these communities have previously experienced. The introduction or connection of economic engines, such as universities and hospitals, is also vital to the growth of these cities, as well as the exploration of other potential engines capable of retaining people and businesses. Thinking regionally is also a main goal in restoring these areas.

It is apparent that policies need to include a more intentional urban agenda for the restoration of Ohio’s cities as the economic engines of the state. Encouraging the cities to work interdependently is a challenging, yet hopeful prospect for Ohio.

Brachman to present at OSU's Center for Urban & Regional Analysis

This Thursday, January 22, from 3:30—5:00pm, GOPC's Executive Director, Lavea Brachman will present at OSU's Center for Urban & Regional Analysis. Her presentation, "Shining Cities on a Hill or Lights Under a Bushel? Realizing the Economic Potential of Ohio's Cities, Towns and Metros" will discuss:

Throughout our history, American leaders have characterized our communities as potential “cities upon a hill.” One of Ohio’s greatest resources–as well as one of the state’s most powerful economic engines–are its many cities, towns and metros. But are we sufficiently leveraging assets to retain the current workforce, to realize their potential as centers for innovation, and to fulfill their potential as affordable and livable communities?

This talk will discuss current impediments to leveraging these places’ economic potential; identify solutions to restore prosperity; and outline plans for regenerating economic growth in Ohio’s cities, towns and metros that build on their past and prepare for the future.

The presentation will take place in 1080 Derby Hall at 154 N. Oval Mall in Columbus. All are invited and refreshments will be provided. We hope you join us!

New GOPC Study Finds Strong Potential in Innovative Neighborhood Revitalization Pilot

Greater Ohio Policy Center today releases an independent analysis of an innovative model for neighborhood recovery being piloted in a Cleveland neighborhood, finding promising results for this block-by-block holistic approach to revitalization that combines demolition and rehabilitation.

Slavic Village, a neighborhood located 6 miles south of downtown Cleveland, represents many of the strengths and challenges that characterize our historic urban communities. An intact neighborhood with a rich cultural history and strong community institutions, it also experienced the highest foreclosure rate in the country in 2008, and increasing rates of poverty and unemployment.

Based on 2014 analysis, the GOPC study, Documenting the Slavic Village Recovery Project: An Early Review of a Model for Neighborhood Revitalization in Cleveland, Ohio, released in conjunction with the Slavic Village Recovery, LLC, (SVR) finds preliminary results for the SVR Project, including:

• Sales prices of the initial homes reached the targeted amount necessary to cover rehab costs and make a small $5,000-$10,000 profit; received an appraisal value above the listed $60,000 sale price; and sold quickly.
• Neighborhood morale is high and neighbors are positive about the project.
• Investment is taking place in the neighborhood apart from direct involvement with SVR, suggesting, perhaps, that SVR’s private sector partners created market confidence for new businesses and city and regional governments.

The Study also noted several keys to SVR’s early successes:

• A holistic approach to community development and a clear comprehensive plan, strategically linking demolition and rehabilitation.
• A focus on properties with value and the strong relationships needed to acquire properties from REO lists and banks
• A philanthropic mission paired with a for-profit approach in executing the mission

Based on the data available to date, GOPC finds aspects of this Project potentially adaptable to other neighborhoods in other cities, although the context for replication is important. Several key factors, such as a pipeline of available properties, must be present for replication and those interested in duplicating the model may need to take the time to get these factors in place first in order to be successful.

Recognizing the opportunity to stabilize and revitalize this still vital area, four partners—two non-profit and two for-profit organizations—came together in 2013 to create Slavic Village Recovery, LLC. SVR aims to eradicate blight entirely from a targeted area in the neighborhood and thus reach a positive tipping point one block at a time.  SVR combines strategic demolition with housing rehabilitation, as well as resident support services, with the goal of achieving comprehensive redevelopment.

For more information on the progress and impact of Slavic Village Recovery, please click here to see our full assessment.

A Lesson in Pivoting a Legacy City from the Hamilton Mill

Guest post by Antony Seppi, Operations Director of the Hamilton Mill in the City of Hamilton, Ohio The “pivot,” according to Merriam-Webster is the “action of turning around a point.” The legacy cities of Ohio and other Midwest cities need to be adept at making these “pivots” for the sake of their long-term survival. Hamilton is pivoting with significant downtown revitalization strategies that will reclaim our urban core. “The Mill,” as it is affectionately known throughout Southwest Ohio, is Hamilton’s small business incubator and is just one piece of the many exciting initiatives taking place in this rustbelt community. Our City’s Economic Development Department has been recognized on several fronts and the pieces are in place to carry the momentum forward. This is all after being dealt several crippling blows in the early 2010’s that included the shuddering of two paper mills, the loss of a major downtown employer, and the after effects of the Great Recession. This is all happening in a legacy city that was built on manufacturing – automotive, beverage, paper, and steel.

In July of 2014, the new and improved Hamilton Mill was unveiled. A new era of business incubation is taking place at The Hamilton Mill, which is conveniently located between Cincinnati and Dayton in the city of Hamilton, Ohio. We are Southwestern Ohio’s only small business incubator dedicated to green, clean, water, digital and advanced manufacturing technologies. We are leveraging the extremely progressive City of Hamilton utilities department that delivers gas, water, electric, waste treatment, and broadband services to our residents and businesses. The municipally provided utilities will be 75%-80% renewable energy when the Meldahl Hydroelectric project comes on-line in 2015. This revolutionary change is taking place now.

The Kauffman Foundation, one of the leading organizations promoting entrepreneurship and small business, has determined that younger firms are the job creators, and The Mill will be an important part of that going forward. We have succeeded in developing significant collaborations with organizations that share our passion for transforming the region’s innovation landscape. It is a formula that has proven itself countless times, and it is a valued principal that has come to define us, as well as the advancement of the region’s start-up community.

We are not new to the game, just more engaged with the regional entrepreneurial ecosystem and the needs of Southwest Ohio. The incubator has served Butler County and Southwest Ohio since 2003 and will continue to provide a home to high growth startups that are building things, specifically around manufacturing, clean technology, and digital applications. Below are some key metrics and awards that we have been recognized for since we began our relaunch initiative one year ago.

Mill-Stats

As you can see, our mindset at The Mill is all about innovation and making the swift, key pivots that are required from organizations to be successful. The Mill, in and of itself, is a start-up – just like the start-ups that we are mentoring and recruiting to be part of our journey.

Mill-Award1

Mill-Award2

Greater Ohio Policy Center's 2014 Accomplishments

Dear friends,

This year has been one of significant achievement for the Greater Ohio Policy Center. Throughout 2014, we have been advancing revitalization and sustainable growth in Ohio’s cities and regions by leading state level advocacy efforts and demonstrating innovative practices with communities across the state.  To see a complete list of our 2014 achievements, please visit our website.

We have taken a leadership role advocating for state level policy solutions, such as legislation for the Neighborhood Infrastructure Assistance Program and critical transportation policy reforms that are linked with economic regrowth. With local partners, we have also made considerable progress assisting communities in Youngstown, Dayton, Cleveland, and Columbus by working with them to invest strategically in their neighborhoods.

Our national profile continues to grow as our research on cities has been recognized for identifying critical policy gaps and innovative solutions. This important work has also provided us with a platform to convene mayors, practitioners, and academics from across the country to discuss best practices and to highlight efforts underway in Ohio.

Next year promises to be equally, if not more, exciting for Greater Ohio Policy Center. Cities are gaining the spotlight as magnets for people and firms that are driving demand for dense, walkable places and increased transportation options. Greater Ohio Policy Center is leading efforts to ensure that Ohio’s communities—large and small—take advantage of this opportunity for reinvestment and sustainable economic growth. In 2015, we will embark on new initiatives focused on neighborhood stabilization, city innovation and revival, commercial district revitalization, water and sewer infrastructure, advocacy for increased transportation options, and much more.

We hope that you join us for our June 2015 Summit, Restoring Neighborhoods, Strengthening Economies: Innovation and Sustainable Growth in Ohio’s Cities & Regions, which will bring together national experts, state policymakers and local leaders who are transforming Ohio’s cities and regions in varied ways to forge a revitalization agenda that enhances Ohio’s 21^st century economic competitiveness. Click here to learn more about the Summit.

Our 2014 successes and future initiatives would not be possible without the support of individuals like you.  Please take time to make a donation today, so that we can continue our work to create a greater Ohio.

With best wishes for a happy holiday season and a prosperous 2015,

Lavea Brachman & the Greater Ohio Policy Center staff

Central Ohio's insight2050 Demonstrates the Significance of Regional Land Use

This past week, Greater Ohio Policy Center attended a Columbus Metropolitan Club event on insight2050 and the impact of land use decisions on our health, economy, environment, and mobility.

Here are some highlights from the panel, which were live tweeted from the event by GOPC:

• Yaromir Steiner: what are the infrastructure, health, social, environmental & fiscal costs of the way we develop? #Insight2050 answers this question
• Yaromir Steiner: land use is the critical determining factor for the success and quality of life of places.
• Yaromir Steiner: economic development is about creating places where people want to live.
• Steve Schoeny: we don't have enough #transportation options for downtown. This will take investment to change.
• Keith Myers: cities have been shaped by #transportation since the beginning. We need transportation options supportive of #development we want.
• Keith Myers: the transformation of cities requires political leadership & commitment

Click here to see all of our live tweets from the event on Storify.

About insight2050:

insight2050 is a collaborative initiative among MORPC, Columbus 2020, ULI Columbus, and a stakeholder committee consisting of public and private partners. The initiative aims to help Central Ohio communities proactively plan for development and population growth over the next 30+ years, which is expected to be dramatically different from the past.

The first phase of insight2050 is a regional analysis that provides data for decision makers to understand the impact of future land use policies on specific factors influencing the region’s quality of life. The Scenario Results Report is now available online at www.getinsight2050.org.

The regional growth scenarios that reflect different types of development patterns were informed by the latest data and projections and then compared utilizing a variety of metrics, such as land consumption, infrastructure costs, air pollution, household expenses for transportation and utilities, as well as public health and safety costs, to arrive at an assessment of their relative impacts.

The Importance of Regional Land Use

The scenarios developed through insight2050 lay out different ways the Central Ohio region can grow and the impacts those land use decisions have on the region’s future competitiveness, sustainability, and quality of life. The video above features Peter Calthorpe, whose firm developed insight2050, talking about the critical importance of land use.

Greater Ohio Policy Center is a firm believer in the immense significance of land use and will be addressing these issues of regional growth throughout the state at our upcoming Summit, Restoring Neighborhoods, Strengthening Economies. Click here to learn more about the Summit.