Middletown City Manager Douglas Adkins

www.cityofmiddletown.org

1,400 New Retail/Service Jobs

FEBRUARY17, 2016

When I approached this, I wanted to create amathematical model that made it possible to reach our $3.8 million new revenuegoal by 2020.  If we can do that, we can pave and do all theother city services needed each year in a sustainable fashion.

In theprior We Need New Revenues post,I laid out several sources of new revenues that would start rebuilding ourability to provide all city services in a sustainable, year to yearfashion.   So now we are up to new Retail and Servicepositions.   I hope to create, over the next five years, 1,400 NewFull Time Equivalent Retail/Service Jobs averaging $10/hr.  That, inturn, would bring in an additional $509,600 per  year in new incometax revenue.

So how do we get there?   One bite at atime.   What if, by 2020:

The Towne Mall was 70% fullinstead of 70% empty?    Towne Mallhas added Gabes, Burlington Coat Factory, and now Planet Fitness.  Wewill get the benefit of those new jobs starting in 2016.   We will beannouncing two new Mall businesses starting construction soon, one a large restaurantand the other a mid-sized business with multiple locations around the country.

If you drive by the mall, you’ll see that the outside ring hasbeen paved and they are installing a new sign for the Mallentrance.   We have engaged Buxton to help us recruit retailthroughout the City and we will be working with the Mall owners to help themfill the remaining mall storefronts and the outlots.  Given all of the newinvestment and new business within the last year, I don’t believe it is astretch to set a goal that the mall will be at least 70% full by 2020.

Downtown was 70% full insteadof 70% empty?  I keep hearing “why do we care aboutdowntown?”  Three answers;  First, because there is a lot ofpotential for new business downtown; second, because downtown is one of themany city areas, like the mall, like the airport, like our open industrial andcommercial areas, where there are opportunities to expand jobs and new businessin the City.  To ignore any one of them leaves us operating at lessthan our best; and third, because most resurging older cities are seeingtremendous interest in downtown, urban living.   I try to stay up onwhat other cities are doing successfully across the country.  There is arenewed interest in community and downtowns around the country.  Placeslike Liberty Township,who don’t have a downtown, are trying to capture that interest andcreate a downtown feel with Liberty Center,an area with walkable streets, outside shops, and apartment living on theCenter grounds.

Downtown already has a nice start.  Let’s let them finishwhat they’ve started.  Downtown Middletown Inc., will be completing a newMaster Plan for downtown in 2016 based on the Main Street Concept.  Googleit if you get a chance.  In 2015, a housing study was completed fordowntown that demonstrated demand for over 1,000 new residential housing unitsin the next 10 years.  I’m not sure I buy into that number, but even if itis a couple hundred new condos/apartments, etc., over the next decade, there isgoing to be a demand for resident neighborhood services nearby.

The Butler Metroparks River Center is still on pathto start construction this spring.  The $1.2 million center will offermeeting rooms and amenities along the bike path.   Speaking of thebike path, we want to look at connecting the bike path to downtown and we havegathered most of the funding to complete the bike trail between Middletown and Franklinin 2020.

Windamere Events Center is openand booking weddings.

What if Sorg Opera House got open during the next five years andwas having concerts on a regular basis?

Central Tap & Pint is under construction.  CincinnatiPizza by the Slice has bought the old Buck’s Tavern with plans to open a newlocation.  Liberty Spirits is planning to be open before the end of2016.  One Bistro restaurant is seeking a permanent locationdowntown.  Downtown business is slowly starting to creep up Central Avenuetowards University.

We have the first Designated Outdoor Refreshment Area in Ohio and hope to beutilizing it well over the next few years with music and events downtown.

The Manchester Inn and Sonshine building continue to struggle tocome to fruition but I still believe there is potential to bring these projectsto construction within the next few years.  I hope it will be much sooner,but these are risky projects and getting sufficient investment to startconstruction is taking more patience than I’m happy with, but it is whatit is.

Most of this is now happening with little City support.  Westarted the investment by partnering with BeauVerre on theirbuilding.  We added Cincinnati State, Pendleton Arts Centerand now  Windamere through city owned buildings.  Now that many ofthose places are established, we can get to more of a support role instead ofleading the pack.

I think it is reasonable to set a goal of having downtownstorefronts 70% full by 2020, with the supporting retail/service jobsassociated with those new businesses.

I have one other concept for the residents to think about ondowntown and other areas of town with dilapidated buildings… what do we, as acity, do with absentee owners who do not or can not take care of theirbuildings?  I keep hearing “let the private market take care of thesituation.”  OK…then what do we do as a city when the private marketfails?  Look at the old Middletown Journal building, the old library on First Avenue, andthe Reed Klopp building on Central Avenue.  They are all in severe states ofdisrepair.  There is reason to believe that none of the existing ownershave resources sufficient to stabilize and redevelop the buildings. That means I can 1) ignore the problem until it becomes another Orman buildingor Rose Furniture and collapses, and then we have to take action as apublic safety issue; (after billing for demolition, we foreclose and likely ownthe vacant lot); 2) I can abate the nuisance, bill the owner and then takeownership of the building when the owner can’t/doesn’t pay thetaxes… (oops, we are owning buildings again);  or we can take actionto seize the building while it is still in ok shape and try to put it back intoplay after spending tax dollars to stabilize, repair, etc., (oops, owningbuildings again.).   I don’t have any interest in owning andredeveloping buildings.  However, there comes a time when the market failsand the city is the only one left to take action.  The question really is“when is the right time to take action and under what conditions?” We struggle with that question often.

East End

There are 600 acres on the East Endby Interstate 75.  As we add new businesses near AK Steel’s Researchand Innovation Center, there is going to be a growing need for support servicessuch as the new gas station going in at the old Putt Putt lot and a need foradditional restaurants, etc., in support of Atrium, AK Steel, and other newbusinesses.

Commercial Shopping Centers

Finally, we have many shopping centers around town in variousstages of repair and vacancy.  I will be reaching out to the owners andproperty managers over time with an invitation to partner withowners to make repairs and clean up of those properties inreturn for the City using Buxton to assist them in filling empty spaces. There are certainly opportunities all over town to add local, regional, andnational retailers to those properties.  The City of Columbus has a nice program to assist localbusiness owners and we’ll be looking at how we could adapt that program here.

Just between Gabe’s, Burlington Coat Factory and Planet fitnessyou have a couple hundred new jobs. Getting 1,400 new jobs won’t be asprint.  It will be a marathon.  15 jobs here.  50 jobsthere.  Every large restaurant helps.  Every mom and pop shop helps. Every retailer recruited to fill an empty shopping center helps.  We takeadvantage of opportunities and do the right thing every day and we can hit thisnumber.

Have a great day!