Nonprofit developer 3CDC leverages public, private investments to revitalize Cincinnati
By Val Hunt Beerbower
Downtown Cincinnati is a thriving business community with arts and cultural amenities, entertainment districts, sporting venues and other unique assets. But this wasn’t always the case. Disinvestment in the center city negatively impacted the neighborhood, and the effects rippled out to the rest of the region. Thanks to forward-thinking civic and corporate leadership, a new development entity was created to help steer downtown Cincinnati—the epicenter of the region’s economic vibrancy—back to engagement levels that first earned the metro its moniker of “Queen City.”
Coming Together
The city of Cincinnati’s Economic Development Task Force was searching for ways to increase the effectiveness and efficiency of development activities in the city of Cincinnati. In July 2003, then-mayor Charlie Luken and members of the Cincinnati corporate community joined together to create the Cincinnati Center City Development Corp. (3CDC), agreeing that the economic future of Cincinnati depended first and foremost on a strong and vibrant downtown business and entertainment district.
“3CDC works collaboratively with the city of Cincinnati and the state of Ohio. Also among 3CDC’s partners are members of the Cincinnati corporate community,” says Joe Rudemiller, 3CDC’s vice president of marketing and communications. “Cincinnati is fortunate to have a very strong and engaged base of corporate leadership. Nearly 30 corporate leaders make up 3CDC’s Board of Directors and are vital to 3CDC’s existence and success.”
The organization is funded privately through a combination of corporate contributions, management fees and below-market developer fees in order to spur economic development in distressed and struggling neighborhoods.
“3CDC has served as the developer on numerous projects in Downtown Cincinnati and Over-the-Rhine (OTR), including residential and commercial real estate, civic space, affordable housing, comprehensive residential and service facilities for the homeless, parking lots and structures, as well as a number of mixed-use developments” Rudemiller says. “Overall, 3CDC’s development efforts have been critical in the revitalization of Downtown Cincinnati and OTR, creating a welcoming urban core brimming with energy by breathing life back into the city.”
In addition to routine upkeep, the organization programs nearly 1,500 free events at Fountain Square, Washington Park, Memorial Hall, Ziegler Park, Court Street Plaza and Imagination Alley. These public activities include live music, children’s activities, sporting event watch parties, roller skating, pickleball, themed markets and more. “In 2023 alone, the 3CDC-managed civic spaces welcomed nearly 10 million patrons,” Rudemiller says.
Higher and Higher
The physical landscape of downtown Cincinnati and OTR is constantly changing, thanks much in part to development projects 3CDC champions. To date, 3CDC has played a direct role in over $1.7 billion in development projects in downtown Cincinnati and OTR. This investment has yielded 209 buildings restored, 49 new buildings constructed, 17 acres of restored civic space, and two civic buildings restored, as well as the creation of 2,303 residential units, 156 hotel rooms, three comprehensive residential and service facilities for the homeless with 345 beds, 1.3 million square feet of commercial space and 5,918 parking spaces.
Even indirectly, the organization has created a positive impact on nearby communities. “3CDC’s projects have acted as a catalyst for many non-3CDC developments in the area,” Rudemiller says. “The organization’s work reimagining several of downtown’s largest community gathering spaces has had a tremendous impact on the overall development of downtown Cincinnati and OTR.”
Perhaps the most catalytic civic space project 3CDC has completed is Washington Park, and, since its completion, the surrounding area has seen a great deal of positive change, including new office space, restaurants and retailers. The revitalization of Memorial Hall and Music Hall drastically increased foot traffic in the area. Businesses have returned to Fountain Square following its physical facelift and subsequent public programming. The reimagined convention center and new headquarters hotel are also expected to have a similar impact in the surrounding district.
The Scoreboard
Moving the needle for downtown Cincinnati and OTR requires investment into residential and commercial projects. 3CDC recently completed several mixed-use, mixed-income developments. The three historic buildings that comprise August Flats yielded 15 mixed-income apartment units located above 3,250 square feet of white-box commercial space. The Annie renovation included four historic buildings converted into 29 mixed-income apartment units located above 2,600 square feet of ground-floor commercial space.
In the heart of OTR, Adeline Lofts and Webster Flats resulted in 23 mixed-income apartments located above two white-box commercial spaces, totaling 3,333 square feet. In June of 2023, 3CDC completed the $3 million, eight-month-long expansion of Ziegler Park, which involved the extension of the pedestrian-only park space onto Woodward Street and a portion of Yukon Street. It offers additional gathering space, a synthetic turf for outdoor games and public art via an effort led by Black Art Speaks.
Most recently, 3CDC recently completed The Foundry, a $51 million investment converting the former Macy’s-anchored Fountain Place into a modern, mixed-use development. The project involved the conversion of the 3.5-story structure into roughly 150,000 square feet of Class A office space, along with 35,000 square feet of street-level retail/restaurant space. The structure also features a 164-space underground parking garage.
About 1,100 employees work out of the office space, which is fully leased to Divisions Maintenance Group, Deloitte LLP and Turner Construction Co. The property also features the flagship Jeff Ruby’s Steakhouse, The Davidson and Five Iron Golf, currently operating in street-level commercial spaces. An additional lease has also been signed with Vintage, an elevated sports bar, and a new establishment from Crown Restaurant Group.
Coming Attractions
The nonprofit organization is embarking on its latest venture, partnering with the city of Cincinnati and Hamilton County. Duke Energy Convention Center and the surrounding area is slated for an upgrade. The convention center will have new modifications to the exterior, and on the inside, 12,000 square feet of modernized, extended exhibit hall space, upgraded meeting and ballrooms, and major improvements to building systems, making it much more energy efficient.
The pitched project also includes a 2-acre park and outdoor convention space across Elm Street onto the former Millennium Hotel site. “The organization is currently working to finalize the budget and scope, with plans to break ground on the project this summer,” Rudemiller says.
Developer Portman Holdings is working on a hotel to serve the convention center, located directly across the street. The hotel will include 800 rooms, 60,000 to 80,000 square feet of flexible meeting space, 15,000 square feet of retail, a pool and outdoor amenity deck, plus junior and senior ballrooms. Construction is expected to begin later this year.
Another pending 3CDC project seeks to convert the former Saks Fifth Avenue department store into a mixed-use building with office, restaurant and retail space. “3CDC plans to have an anchor office tenant on the building’s second floor, in addition to restaurant and retail tenants on the first floor, occupying a total of approximately 80,000 square feet of commercial space,” Rudemiller says.
3CDC is at the helm of the Findlay Community Center project, which involves redeveloping Findlay Playground, Grant Park, Over-the-Rhine Recreation Center and the Elm Street pocket park.
“In addition to being in various states of either disrepair or underinvestment, the sites have experienced significant public safety challenges (including recent violent crime activity), and are surrounded by vacant and blighted structures,” Rudemiller says. “We are incredibly fortunate to have such a committed corporate community here in Cincinnati, which is something that truly sets us apart from many other cities across the country. As a nonprofit real estate developer, 3CDC’s goal is not to generate profits but to reactivate previously vacant buildings and spaces, and revitalize the urban core through physical developments, programming and placemaking.”