CH APTER 4

REDEVELOPMENT
Redevelopment is a pervasive theme in this Master Plan.
GOAL B: Turn Current
Residents and the steering committee consistently expressed
Liabilities into Future Assets.
their desire for the redevelopment of vacant or underutilized
commercial property as a top Master Plan priority.
Improving the city’s quality of life, creating new economic Middletown has underutilized
activity, and stabilizing neighborhoods hinge on the properties and outdated
successful removal and/or revitalization of blighted infrastructure that are legacies
nonresidential structures. Master Plan Goal B is dedicated to from another era. Many of these
this end. are drains to our tax base and
blighting influences on our
R E K I N D LE D I N T E R E S T IN U R B AN A R E AS neighborhoods. Middletown
needs to find ways of restoring
The timing is right for Middletown to reposition brownfield these properties to active use and
and greyfield properties located in its mature neighborhoods. updating our infrastructure to
As recently outlined in the May 2004 issue of Urban Land meet current and future needs.
the real estate market is gaining strength in traditional
urban areas. Old neighborhoods are becoming
gentrified and downtowns are seeing healthy levels of
new housing starts. Many factors can be contributed
to this renewed interest but planners typically cite two.
Tired of long commutes, people are starting to move
back into cities to live closer to work. Others,
dissatisfied with the suburban living, seek fuller
community experiences and access to cultural and
civic amenities. A summary of ULI’s findings follow:

Many of the most successful new communities

being developed today emulate Middletown’s
older neighborhoods including walkable streets,
mixed use, and smaller residential lots with access
to neighborhood parks, schools, and commerce.

Recycling old buildings as part of urban infill

projects is becoming a common market practice.
Older areas and structures offer unique urban
spaces and design features which attract
consumers and developers alike. Successful New Urbanist development in
downtown Cincinnati

Developers are spending extra dollars on urban
design and planning. Well designed and planned projects require very little marketing, relying
instead on word of mouth and positive press.

The ideal of “live-work-play-shop-learn” shapes the most interesting and successful projects.
More and more, people want to live full lives in their communities, not shuttle from one suburban
pod to another for work, relaxation, or family activities.

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Demographically and economically mixed neighborhoods are finding success. Diversity is a goal
for cities and developers alike.

Higher density sells if it is well done. Buyers are open to the idea of trading large lots for high-
quality public spaces and amenities. Although it is probably desirable to reduce some density, in
fact, many busy homeowners prefer homes without labor-intensive yards.

R E D E V E L OP M E N T C H AL L E N G E

Redevelopment, by its very nature is complex. There are a

myriad of potential costs and legal concerns associated with Barriers to Brownfield
brownfield and to a lesser extent greyfield redevelopment. Redevelopment
These costs and concerns in turn act as market deterrents.
Environmental liability
Federal, state, and local governments are increasingly being
Unknown environmental
called upon to proactively remove development obstacles, issues/regulations
some of which are listed below:
Environmental clean up costs

Land use restrictions because of

Increased Development Costs. Redevelopment is contamination
expensive. Costs to place property back in a
Lender hesitancy
development ready posture can, in some cases, exceed
Demolition of existing structures
the entire budget of a greenfield development project.
Weak Market / Location (in
Redevelopment costs include environmental Middletown)
assessments, environmental remediation, demolition of
Removing/relocating marginal
existing structures, and infrastructure improvements in uses in existing building.
older areas.

Environmental Uncertainties. Developers have historically complained about ambiguity in

environmental law, changing clean up targets/expectations during the remediation process, and
remaining environmental liability after a site has been remediated.

Market Constraints. In many cases, market support is not strong enough to warrant brownfield
or greyfield redevelopment costs. This appears to be true in Middletown where most of the
brownfield properties are located in the downtown vicinity far removed from the interstate.

Lending Practices. Lenders, wanting to make sound investments, are generally not as willing to
offer equal financing terms for urban redevelopment projects as greenfield projects.
Redevelopment projects may require more developer equity and/or higher rates.

Land Use Restrictions. Land use restrictions and unusable land area imposed by governing
authorities with brownfield redevelopment oversight can limit the reuse and market potential of a
site.

Lot Assembly and Clearance. Development typically consumes more land today than it did
even a few decades ago due to larger retail formats and more demand for on-site parking and
landscaping buffer yards. In some cases, developers must purchase, clear, and assemble
additional adjacent properties to make the redevelopment site marketable.

MASTER PLAN 4-2

P U B LI C P AR T I C I P AT I ON T E C H N I Q U E S

The use of public resources in the redevelopment process is a legitimate urban vitality initiative.
Local government can offer many programs and incentives to make brownfields a more attractive
investment. In cooperation with a partner or team of partners, the city will explore potential for
creative methods to “kick start” redevelopment projects on a case-by-case basis as opportunities and
resources arise.

Phase I and II Environmental Assessment Grants. The city can apply for EPA assessment
grants to determine the nature and extent of environment contamination of the site. Grant dollars
can be used for Phase I and Phase II environmental assessments. The assessments provide a
clear understanding of the type and extent of contamination.

Prepare Remediation Plan. The city can provide assistance towards the creation of a
remediation plan. Remediation plans indicate EPA-approved methods and costs of clean up. The
level of clean up is based on the proposed end use. Combined, the environmental assessment
and remediation plan is designed to remove any question on what the expectations are for clean
up.

Clean Up Grants. Remediation can be time consuming and costly. The City can apply for EPA
Clean up grants and others to cover most of the costs.

Property acquisition. In many cases, the current property owner can be recalcitrant against any
redevelopment plan because of fear of environmental liability and remediation costs. Cities can
take such property under nuisance laws or enter into an agreement to convey the property to the
city or one of its partners, as permitted by law. The city should not take title of property unless a
responsible party is clearly identified. Of course, cooperative and voluntary participation on part
of the property owner is optimal.

Write-down costs. The city can provide a developer with reduced land costs or a competitive
lease of municipal property to the extent permitted by law as a potential cost savings to the city’s
development partner. The city can create a condominium whereby the city owns the land, where
the contamination exists, and the developer owns the building.

Environmental Insurance. The city can provide environmental insurance to protect property
owners and their lenders from any future liability.

Mortgage or Interim Financing Guarantees. The city can provide gap financing when a lender
requests additional developer equity or the city can guarantee a loan. These two techniques
should be contemplated only when no other alternatives exist to get project financing approved.

Capitalization of Interest. The city can pay the developer’s interest payment until construction
is done or the project is leased or sold. This technique is not atypical when a developer works on
a speculative municipal project.

Infrastructure Upgrades. The utility and roadway infrastructure around brownfield sites is
typically old and outdated. The city can make improvements to accommodate the new use, such
as relocation, repair and upgrading of road and utility infrastructure.

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Demolition of Existing Structures. Removing existing structures is one of the more obvious
tasks that are not part of greenfield development. Removing structures including subsurface
improvements can be very helpful to a developer’s cause.

Vacation of Public Streets and Alleys. Obsolete roads, alleys, and easements can be vacated to
provide more land for development.

Collateral improvements. Redevelopment sites need to have a critical mass that provides a
market catalyst for change in the immediate vicinity. Improvements should be made on
surrounding properties and public facilities to make the entire area more attractive. Stepped up
code enforcement is also important amid marketing efforts that will ensue.

Project Manager. A staff person could be assigned as a project manager to help the city’s
developer partners navigate through local, state and federal laws and the overall redevelopment
processes. The project manager can act as a trouble shooter and project advocate in city
government.

P U B LI C /P R I V AT E P A R T N E R S H I P S

The City does not necessarily want to get in the land development business, but it does want to
expedite the rate by which vacant properties get reutilized. To capture developer interest and get
partners to the table, the city must do the leg work, be on the front line, prepare the neighborhood
residents, and implement plans to even the playing field with greenfield development sites. Reliance
purely on the private sector to champion redevelopment projects is unlikely due to the associated
costs and market constraints.

To be successful, the city must be able to join forces with the private sector and other public sector
entities to create strategic public-private partnerships. There are three basic types of public-private
partnerships identified in Table 14. The table lists the actions of the public and private entity for all
three partnership types. The city and its development partners should consider which partnership
makes the most sense for the projects based on the scope of the project, the city’s expectations, and
the developer’s capacity.

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 Table 14: Types Of Public/Private Partnerships and Task Assignments/Ownership
Type of Design Financing Development Construction Operation Owner
Project and
Participants

Private Private with Private with Private Private Private Private

Partner in little or no Marginal Public
conjunction Public Input Capital or
with City Noncapital
Investment

Traditional Private with Private and Private Private with Private or Private
Public/ Public Input Public/others Public Public and/or
Private Oversight Public
Partnership

City in Private Public/other Private Private with Private or Public/

conjunction contract or Entity(s) Developer on a Public Public other
with private City in- Fee Basis Oversight Public
developer house

Source: Public and Private Finance and Development Methodology, Deal Structuring, Developer
Solicitation. Stainback, John

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R E D E V E L OP M E N T S T AN D AR D S

As discussed in Chapter 5, many of Middletown’s older

neighborhoods suffer from disinvestment and cannot Redevelopment Design Goals
compete with suburban development located on the fringe.
Key factors in this trend are the obsolescence of housing
Restore balance to urban
and the absence of nearby amenities such as employment neighborhoods
and retail. Brownfield and greyfield redevelopment
Mix residential with office and
projects offer the opportunity to provide the missing retail uses to bolster markets,
elements, introduce new housing options and restore these create jobs were people live, and
neighborhoods as fully functioning, self-contained provide convenient access to
communities. This approach will give older neighborhoods everyday needs
a distinct niche in the regional market.
Set buildings close to the street to
define public spaces to create
The city will be in a unique position to implement this pleasing pedestrian environment.
approach by influencing the design, quality and character
Incorporate landmark design and
of redevelopment projects as a development partner. architecture to create a unique
Redevelopment projects should not be viewed as a quick sense of place
fix but rather as an opportunity to make a long-term
Include pedestrian-oriented open
positive impact on the surrounding neighborhood. Settling space amenities for leisure and
for lackluster designs, for the sake of development, will socialization
disappoint residents and undermine support for future
Create internal sidewalk and path
mixed-use infill efforts. system that connects to
As such, the city must clearly articulate minimum surrounding neighborhoods
redevelopment performance standards and goals for
Increase residential density for
redevelopment projects as outlined in the adjacent insert. cost effective delivery of public
Good urban design must be a hallmark of each city- services
sponsored redevelopment project to create a stronger sense
Use redevelopment to diversify
of neighborhood identity and desirability. Redevelopment housing stock; ensure some units
efforts shall be consistent with the Key Neighborhood are affordable for low income
Revitalization and Design
Principles identified in Chapter
5.

The redevelopment design goals

are time tested and appropriate
for utilization at all identified
redevelopment sites identified in
this Master Plan. The idea is to
create comfortable live, work,
play spaces to pull and keep
people in the neighborhood.

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R E D E V E L OP M E N T O B J E C T I V E S AN D S T R A T E GI E S

OBJECTIVE RD 1: Convert all underutilized commercial and industrial properties

to productive uses.

ISSUE: Many commercial and industrial properties that could become

new development opportunities currently sit idle and/or obsolete
and are underutilized.

RD 1.1 Create and maintain an inventory of redevelopment opportunities throughout the

city, with information needed by potential developers.

1.1.1. Include properties that are

vacant or underutilized and
are a significant blighting
influence and/or fiscal drain
on the city.
1.1.2. Compile data for each site
including owner, land area,
utility information, zoning,
infrastructure,
environmental constraints,
date and results of
environmental assessments,
existing use/tenants and Vacant former paper factory on Main Street
history.
1.1.3. Prepare environmental assessments where needed to determine obstacles and
constraints.
1.1.4. Map locations and prepare aerial photos for planning purposes and interested
investors. Make information widely available to interested investors and residents.

RD 1.2 Create an all-volunteer Brownfield (& Greyfield) Resource Team with broad
community representation to guide and facilitate redevelopment.

1.2.1. Include individuals from the business community, developers, financial

professionals, realtors, City staff, concerned citizens, environmental consultants,
architects, etc. The purpose of the team is to brainstorm, make recommendations,
prioritize brownfield/greyfield redevelopment projects and use of resources, and
facilitate the creation of partnerships.

RD 1.3 Obtain critical feedback on proposed city brownfield redevelopment policies before
implementing any plan or strategy.

1.3.1. Review policies with at least two Ohio municipalities that have had brownfield
redevelopment success. Such municipality should not be in competition for the same
developers and local resources.
1.3.2. Consult with environmental consultants and Ohio EPA to make sure policies are
consistent with Ohio EPA requirements for grant funding.

MASTER PLAN 4-7

 1.3.3. Request resident, business community and partner feedback to ensure support for city
policies are realized early in the process.

RD 1.4 Develop a brownfield redevelopment program.

1.4.1. Utilize a brownfields decision making matrix to prioritize redevelopment

opportunities and resource allocations.
a. Identified end user, market potential and location were identified as
important criteria at the Redevelopment Roundtable.
b. Blight elimination, corridor improvement, improved environmental and
community health, public costs, project viability, recreation and
transportation opportunities were also mentioned as worthy criteria.
1.4.2. Assign a project manager within city government to each brownfield redevelopment
project. The project manager will act as a case worker and inside problem solver to
help partners navigate the review and permitting process and to provide coordination
with other governmental departments from project start to finish.
1.4.3. Prepare Phase I and Phase II environmental assessments to determine the extent of
contamination.
1.4.4. Assess the real estate market. Invite realtors, developers, and bankers to discuss how
they view the real estate market of the impacted area and potential land use options.
1.4.5. Create remedial plans to determine cleanup costs and remediation methods.
1.4.6. Inform business community and partners of specific actions and intentions. Ask for
assistance and participation.
1.4.7. Seek an end user and development partner as soon as possible to increase chances of
obtaining grants.
1.4.8. Apply for USEPA Brownfield Cleanup, USEPA Brownfield Revolving Loan, and
Clean Ohio Brownfield Revitalization grants to assist in remediation costs.
1.4.9. Enter into Voluntary Action Plan (VAP) agreement with Ohio EPA. VAP
agreements establish the level of mitigation required to reuse the property for desired
land use.
1.4.10. Implement VAP and receive a “covenant not to sue” which limits exposure to
liability once the VAP standards are met.
1.4.11. Create an RFP seeking developer assistance if a public-private partnership is not
established at this point in time. An RFP can be distributed as soon as the costs for
cleanup, goals for land use and design, and levels of gap financing are known. This
step is not needed if a developer is identified earlier in the process.

Former paper factory on Park Street

MASTER PLAN 4-8

 1.4.12. Partner with the developer that is willing to work cooperatively with city towards
achieving master plan goals. Land use and design standards should be articulated
and required as part of an overall development agreement.
1.4.13. Restart process after initial brownfield project is completed or well underway or as
resources dictate.

RD 1.5 Redevelop greyfield properties in a targeted and prioritized fashion.

1.5.1. Utilize the same process as outlined in RD 1.4, except for brownfield-related tasks
1.4.5, 1.4.8, 1.4.9. and 1.4.10
1.5.2. Allow for more resident involvement in the greyfield planning process especially
where the subject property was a neighborhood anchor. MRH campus serves as an
example after the hospital moves to its new location. This involvement however
must be tempered with market and fiscal realities to create a plan that is both
financially viable and meets resident expectations.

RD 1.6 Build critical support for redevelopment by educating the community and
developing strategic partnerships.

1.6.1. Share the redevelopment component of the Master Plan with residents, business
community, and impacted property owners to build support. Use various outreach
methods including televised City Council meetings, chamber meetings, civic club
meetings, neighborhood meetings, press releases, and the aforementioned
Brownfield/Greyfield Resource Team.
1.6.2. Set realistic expectations given fiscal and market realities. The problem was not
created overnight. The solution will likewise require time and persistence.
Residents and the business community must be knowledgeable of the magnitude of
the problem and the redevelopment obstacles that must be overcome to redevelop
problem properties.
1.6.3. Meet with brownfield/greyfield property owners to learn of their plans and needs and
market the city’s ability to provide mitigation assistance.
1.6.4. Market the City’s plans and redevelopment opportunities to brownfield/greyfield
developers, investors, and potential reuse candidates. Concentrate efforts on priority
sites.
1.6.5. Partner with CDCs for technical assistance on planning, development facilitation, gap
financing, fund raising, loan underwriting, grant management, etc. Explore option of

Underutilized shopping center on South Breiel Boulevard

MASTER PLAN 4-9

 creating a Middletown-based CDC if others are not responsive to requests for
assistance.
1.6.6. Work with other government agencies for technical assistance, political support, and
financing including Butler County Port Authority, Ohio Department of Development,
and Ohio EPA.

RD 1.7 Consider undertaking a pilot study or small demonstration project before tackling a
large, complicated redevelopment project, if time and priorities permit.

RD 1.8 Acquire property through an effective landbanking strategy.

1.8.1. Utilize this strategy when a high-priority property does not have a defined end user or
has weak market potential but does represent a nuisance or serious health, safety, and
welfare issue that must be removed.
1.8.2. Purchase brownfield/greyfield properties as they come available through lender and
tax-delinquent foreclosures, eminent domain or by other similar method of easy and
quick transactions. This should be done with close consultation with legal counsel to
limit the city’s liability.
1.8.3. Remove nuisance structures as soon as possible. Such action removes blighting
influences and prepares site for future redevelopment.
1.8.4. Mitigate contamination if resources are available. Hold and maintain property until
such property can be conveyed to a development partner (in return for a development
agreement that clearly lays out City’s expectations).

RD 1.9 Utilize public incentives to “kick-start” greyfield and brownfield development as

needed on a case-by-case basis.

MASTER PLAN 4-10

 OBJECTIVE RD 2: Use redevelopment opportunities to introduce mixed land use
developments that satisfy the needs of the neighborhood.

ISSUE: Many neighborhoods are relatively dense with few supportive

amenities such as convenience oriented shopping and jobs.

Use mixed use redevelopment opportunities to make Middletown’s neighborhoods and housing more
attractive and competitive in conjunction with objectives and strategies stated in Goal C.

RD 2.1 Identify and prepare sites for mixed-use redevelopment.

2.1.1. Work with Middletown Schools and Butler Metropolitan Housing Authority to
identify plans for residual properties and identify potential adaptive reuse strategies
for buildings or infill development.
2.1.2. Designate brownfield/greyfield sites suitable for mixed use development as such on
the brownfield / greyfield inventory databases and map (see RD 1.1).
2.1.3. Prepare brownfield/greyfield properties for mixed use redevelopment utilizing the
strategies found under Objective RD 1 including site prioritization, partnership
building, and property acquisition and clearance, if needed.
2.1.4. Coordinate revitalization of surrounding blocks with the redevelopment project, in
order to support redevelopment efforts.

RD 2.2 Promote the benefits of mixed use development. Build public support, buy-in, and
understanding for the need and importance of mixed use infill projects.

2.2.1. Work with community and neighborhood leaders to take the message back to their
constituents.
2.2.2. Organize neighborhood workshops and task forces. Listen to concerns and address in
individual plans.
2.2.3. Discuss merits of mixed use often at City Council and Planning Commission
meetings and in press releases and City newsletter.
2.2.4. Work with local developers, banks, and realtors to gain their support and overcome
obstacles. Infill properties often present mixed use opportunities though are often
located in weak markets. Development professionals therefore need to be shown
hidden opportunities such as underserved markets, untapped labor supply, possible
incentives, developed infrastructure, cultural amenities, and parks. Also share the
city’s vision for the entire area.
2.2.5. Discuss obstacles that developers encounter when pursuing mixed use developments,
along with potential solutions. For example, higher density housing is often needed
when the retail and office market is weak.

RD 2.3 Encourage good urban design. Mixed use development is more than just a collection of
uses. Careful thought must be given to how each use relates to another and with the
surrounding community. Mixed use should make communities more livable by
connecting residences with schools, parks, shopping and employment.

MASTER PLAN 4-11

 2.3.1. Create a community-wide design
manual including traditional
neighborhood development standards
for infill and mixed use projects. Such
manual will articulate the City’s
minimum design goals which can be
reviewed by developers in advance of
making investments. Include
provisions for:
a. Residential, office, and retail land
uses;
b. Open space and internal
pedestrian path system; Supermarket with contextual urban design
c. Well-designed access to transit
and bike paths as a means to make automobiles optional versus required;
d. Street design to include appropriate scale, wide sidewalks, on-street parking,
street furniture, and landscaping to create pedestrian-friendly environments;
e. Building mass, scale and context;
f. Architectural features like decorative façade treatments, storefronts, balconies,
porches, building materials, etc.
2.3.2. Do not accept undesirable designs for the sake of facilitating development. Such
developments will disappoint residents and undermine future mixed-use infill efforts.

RD 2.4 Include the public in the decision-making process while planning a mixed use
project. Public involvement is needed to accurately articulate use and design
expectations, overcome obstacles, and gain consensus.

Community Barriers to Mixed use Development

Barriers Problematic Solutions

Single-use zoning regulations
Need rezoning and public hearing

Market support may not exist for all uses
Often requires City approval of higher densities to

Resistance to new ideas/higher satisfy banker needs
residential densities
Community advocacy

Fears of increased traffic

Design for transportation alternatives and transit

2.4.1. Organize neighborhood workshops and design charrettes. Listen to resident concerns
and address in plans for site specific mixed use projects.
2.4.2. Prepare a mixed use development plan for
specific priority projects to illustrate how
design standards could be applied.

RD 2.5 Encourage higher density housing in mixed-

use development. Higher density creates a
“built-in” market, increases demand for local
goods and services, and bolsters the financial
viability of a redevelopment project. This
technique is vital for downtown revitalization.

2.5.1. Blend housing in with other uses to create

MASTER PLAN 4-12

 active neighborhoods during all hours of the day.
2.5.2. Create a balanced neighborhood with a variety of owner- and renter-occupied
housing options at varying price points to offer something for everybody (e.g., young
adults, couples without children, families, and seniors).
2.5.3. Reserve some units as affordable housing to give LMI households access. This
approach will likely require incentives such as low income tax credits and HOME
funding to make the project marketable.
2.5.4. Plan for minimum of 10 units per acre to support walkable business districts, retail,
and transit and to bolster the financial viability of the redevelopment project. The
need for goods and services increases as residential density increases. Public service
delivery efficiencies likewise increase.

MASTER PLAN 4-13