Tuesday, July 01, 2008

Getting to the bottom of the Via Vite restaurant deal…

Posted by The Dean of Cincinnati

[Dean]:

The information sent to you previously identified the total expenditures of city funding associated with the Fountain Square project. These funds were expended in the timeframe laid out in the spreadsheet.

Your recent inquiry refers to the Ground Lease Agreement with Fifth Third Company approved by City Council on February 28, 2007.  Paragraph 3 of Ordinance #85-2007 that approved the execution of that lease agreement reads, “WHEREAS, the City of Cincinnati wishes to lease the Property for assignment to Fountain Square, LLC, to use in the construction of a restaurant on Fountain Square;"…

This paragraph identifies the City’s intent to assign our responsibilities which are defined in the lease agreement to Fountain Square, LLC; in this case, the City assigned all such interests and responsibilities to Fountain Square, LLC – including the costs to construct the restaurant.  In the lease agreement, any reference to the city as tenant would refer back to this paragraph 3 in which it is stated that the city is entering this lease agreement for assignment to Fountain Square LLC.

As the City was not responsible for the construction of the restaurant in accordance with paragraph 3 of Ordinance#85-2007, the City has no responsive documents to provide to your request.

If I can be of further assistance, please let me know.

Meg Olberding
Assistant to the City Manager/Public Information Officer
City of Cincinnati
801 Plum Street, Ste. 104
Cincinnati, Ohio 45202

==
Ms. Olberding,

Thanks so much for your reply.

I understand what you mean when you state that Ordinance #85-2007 “assigns” the responsibilities to Fountain Square, LLC.

However, wouldn’t there be a document between Fountain Square, LLC and the City of Cincinnati, wherein Fountain Square, LLC would agree to the terms of said assignment?  And wouldn’t that document specify that Fountain Square, LLC would pay construction costs?

Can you verify if such a document exists, and if so can you please forward a copy?

Thanks,

The Dean of Cincinnati

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Concerned City Taxpayer says:
03 Jul 2008  at  09:00 am | #

Dean,

Fountain Square, LLC should have construction cost documentation relating to the Via Vite restaurant. Would this be public information? If so, it seams that the City of Cincinnati could easily help you to obtain this information .

.

says:
04 Jul 2008  at  05:05 am | #

I believe Fountain Square, LLC is sponsored by 3CDC

CINCINNATI CENTER CITY DEVELOPMENT CORPORATION (3CDC)
PROGRESS REPORT
July 2003 – July 2004

The Cincinnati Center City Development Corporation (3CDC) was created in July 2003 to help develop Cincinnati’s Center City – from the Riverfront to Uptown – as a regional center of high value employment and real estate, sustained by a diverse mix of housing, culture, and entertainment.  3CDC is part of an overall system to increase the efficiency and effectiveness of development activities in the City as recommended by the Cincinnati Economic Development Task Force chaired by City Manager Valerie Lemmie and Fifth Third CEO George Schaefer.

Over the past year, 3CDC has pursued four primary goals:  a) establish the organization; b) develop funding sources; c) create Working Groups focused on three priority areas: Fountain Square District, Over the Rhine and The Banks and d) launch value-added, strategic projects within each focus area.  3CDC has made good progress on each of these goals.

Establish the Organization

· Appointed 24-member Board of business, development and community leaders (see attached roster), with A.G. Lafley, P&G CEO, as Chair and Jim Zimmerman, Chairman of Federated Department Stores, as Vice Chair.  Also established Executive Committee, Operating Committees (Strategy & Marketing, Finance, Governance, Economic Inclusion), and Working Groups

· Appointed Tom Blinn as 3CDC Interim Director, to lead all aspects of organization start-up and initial operations, including coordination with lead consultant John Alschuler of HR&A.  Also assembled a diverse support team to help address key corporation needs including Project Management and Communications

· Developed operating strategy that includes key areas in which 3CDC will develop strong capabilities:  strategic leadership; executional excellence (e.g., partner selection, design and planning, creative and efficient deal financing, and communication); strong, sustained relationships/partnerships; and economic inclusion.

· Adopted incorporation articles and comprehensive board Conflict-of-Interest policy and review processes.

· Worked with City of Cincinnati Development Department, Hamilton County and Port Authority to define partnership roles on key projects and specific deals.

· Integrated The Cincinnati Equity Fund into 3CDC.  Also developed a collaborative relationship with the Cincinnati Development Fund, a Cincinnati development financial institution focused principally on housing.

· Concluded national CEO search with hiring of Stephen Leeper, former head of Pittsburgh’s Sports & Exhibition Authority, who brings demonstrated success at developing and financing major construction projects as part of public/private partnerships.  In Pittsburgh, Mr. Leeper led projects representing nearly $1.1 billion in private and public funding.

· Launched a corporate website (http://www.3cdc.org) to give the public easy access to information about 3CDC, its structure, mission and ongoing projects.

Develop Funding Sources

Following 3CDC’s establishment, the City of Cincinnati committed to invest $100 million over five years to support Center City Plan projects. 

The private sector committed nearly $90 million to support the Cincinnati New Markets Fund
application for New Markets Tax Credits (NMTC).  The NMTC is a Federal program created in
2000 to provide an incentive to stimulate investments to drive economic and community
development in distressed communities.  (In Cincinnati, the qualified area includes Over the
Rhine and most of downtown north of Fifth Street).  Investors receive a federal tax credit for
39% of the investment made over seven years.  Thirteen Cincinnati companies committed to
making investments. 

The Cincinnati New Markets Fund application was submitted in September, and in May the City
was awarded an NMTC allocation of $50 million.  The Federal government received applications
from 271 entities requesting a total allocation of $30.4 billion.  Cincinnati’s application was one
of only 62 accepted nationally in a process that awarded a total of $3.5 billion – the full
allocation available this round. 

Working Groups

3CDC established three working groups focused on priority Center City development areas:  Fountain Square, chaired by Federated Chairman Jim Zimmerman; Over the Rhine chaired by Kroger Chairman Joe Pichler; and The Banks chaired by Jack Rouse Associates CEO Jack Rouse.  All three working groups have been formed and are making solid progress:

Fountain Square: 

· Established Working Group consisting of key Fountain Square stakeholders.
· Established vision: 
Transform Fountain Square into the city’s diverse, vibrant retail, cultural and civic heart.
· Create a world class public space at the core
· Create high value retail, residential and commercial real estate in the Fountain Square District
· Be a catalyst for new development throughout Center City

· Assembled world class team of development partners:
· Williams Jackson Ewing who proposed the overall vision and retail and design strategies
· Cooper, Robertson & Partners and Olin Partnership who will collaborate on the urban and landscape design
· Development Design Group who will handle the retail design
· Completed an audit of retail property adjacent to Fountain Square and developed a retail strategy for achieving an improved mix of arts, entertainment, dining and retail.
· Concluded Phase I of public input sessions to gather public comment and identify a shared vision for Fountain Square.
· Reviewed public input with design team and charged them to translate public comments into a design proposal for Fountain Square, which can be shared with the public during Phase II of public input sessions.
· Planned Phase II of public input sessions for week of July 12.

Cincinnati Center City
Development Corporation (3CDC)
Board of Directors
Name Title Company
James M. Anderson President & CEO Children’s Hospital Medical Center
John F. Barrett Chairman, President & CEO Western & Southern Financial Group
John R. Boorn Chairman Madison Marquette Realty Partnership
Neil K. Bortz Founding Partner Towne Properties
De Asa Brown 4 President Greater Cincinnati Northern Ky. African American Chamber of Commerce
Margaret E. Buchanan 1 President & Publisher The Cincinnati Enquirer
Calvin D. Buford 2, 4 Director / Partner Minority Business AcceleratorDinsmore & Shohl LLP
David L. Calhoun President & CEO GE Aircraft Engines
Robert H. Castellini Chairman Castellini Company
Phillip R. Cox President & CEO Cox Financial Corporation
Michael Fisher President & CEO Greater Cincinnati Chamber of Commerce
A. G. Lafley Chairman, President & CEO The Procter & Gamble Company
Carl H. Lindner Chairman American Financial Group, Inc.
Kenneth W. Lowe President & CEO The E. W. Scripps Company
Dale L. McGirr Vice President, Finance University of Cincinnati
James F. Orr Chairman, President & CEO Convergys
Joseph A. Pichler Chairman The Kroger Company
Janet B. Reid Principal Partner Global Lead Management Consulting
James E. Rogers Chairman, President & CEO Cinergy Corporation
Jack Rouse CEO Jack Rouse Associates
George A. Schaefer, Jr. 3 President & CEO Fifth Third Bank
James M. Wiseman Vice President, External Relations Toyota Motor Manufacturing North America
James M. Zimmerman Chairman Federated Department Stores, Inc.
Nancy L. Zimpher President University of Cincinnati

1 Strategic Planning & Marketing Committee Chair
2 Governance Committee Chair
3 Finance Committee Chair
4 Economic Inclusion Committee Co-Chair