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cr C O M M U N I T Y REINVESTMENT forum FALL BRIDGING THE ECONOMIC DIVIDE: 2001 PUBLISHED BY T H E F E D E R A L R E S E R V E B A N K O F C L E V E L A N D Cincinnati’s Crisis Presents New Opportunities In April 2001, Cincinnati was the scene of several days of violent protest following the killing of an unarmed African American teenager by a city police officer on April 7. Rioting quickly erupted in several minority neighborhoods such as Over-the-Rhine, Avondale, West End, and Walnut Hills, prompting city officials to declare a state of emergency, imposing nightly curfews and dispatching police and state troopers throughout the city. When the violence subsided, storefronts had suffered widespread damage, and more than 800 people had been arrested for rioting, looting, and curfew violations. A second outburst followed in late September when the police officer was acquitted. The total cost to the city has been estimated at $13.7 million, and a number of businesses were unable to reopen for weeks and months afterward. C O N T I N U E D O N N E X T PA G E 8 4th District Profile Summit Targets Housing Strategies 10 In My Opinion Community Voices 12 Resources > > CONTINUED F R O M PA G E 1 disenfranchisement that While these events— provided the framework the most recent episode in for civil unrest to erupt. Cincinnati’s long history of COMMUNITY REINVESTMENT FORUM Setting the Stage: Immigration and Outmigration a single incident, underlying social and economic disparities helped to set the stage. To many area just beyond the Miami C and Erie Canal. The area Findlay Market. experienced several waves of annual median household Rhine neighborhood, where German immigration, and income had plunged to about In reality, years of social, politi- much of the rioting occurred, by 1850, over one-third of $5,000, an estimated 84 per- cal, economic, and geographic is a community of extremes. Cincinnati’s population was cent of its residents were classi- isolation are woven into the During the nineteenth and German. Over-the-Rhine’s fied as low income, and over historical fabric of these neigh- early twentieth centuries, population peaked at nearly 95 percent of housing units borhoods, fostering a sense of working-class German immi- 44,500 in 1900, and many were rentals. Today, Over-the- grants heavily populated the of the structures built during Rhine is home to just over that period are still standing. 7,600 people, the majority of Over-the-Rhine remains a mix them (77 percent) African of residential, commercial, American; in contrast, African religious, and civic structures Americans make up approxi- from this era, exhibiting mately 43 percent of the city of unparalleled architectural Cincinnati’s population. Cincinnati residents, the unrest seemed to develop overnight. 2 incinnati’s Over-the- This issue of CR Forum is a special edition highlighting one Fourth District city: Cincinnati, Ohio, and the civil unrest experienced there this year. We believe it is important to understand what occurred in the Queen City last April, and why, from a community economic development perspective. Because some of the underlying causes of the Cincinnati riots are shared by other American cities, there are valuable lessons to be learned by practitioners in the many fields of community development. The views expressed in these articles represent those of the authors and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. Much of the information found in this issue of CR Forum was obtained in a series of 15 interviews conducted with individuals representing Cincinnati’s corporate, government, and nonprofit sectors. The Federal Reserve Bank of Cleveland is uniquely positioned to play a role in helping to rebuild neighborhoods in Cincinnati and throughout the Fourth District. Some of the resources we offer include our capacity for research, convening a diversity of stakeholders, providing technical assistance, facilitating community development in collaboration with other players committed to neighborhood revitalization, and catalyzing change in a neutral manner. In 2002, we will provide an in-depth analysis of 2000 Census and Home Mortgage Disclosure Act (HMDA) data and investigate access to credit and capital throughout some of Cincinnati’s neighborhoods. We believe there is a promising future for the neighborhoods of Cincinnati most affected by the civil unrest: A time of crisis also represents an opportunity for change if acted upon, as the following articles suggest. Due to the special nature of this CR Forum , we have suspended our regular “Of Interest” and “Compliance Corner” columns. These features will reappear in the spring 2002 issue of our newsletter. We welcome your comments regarding this edition of CR Forum ; please e-mail them to virginia.l.hopley @ clev.frb.org Ruth Clevenger Virginia Hopley Community Affairs Officer Research Analyst and Managing Editor integrity and detail, largely uninterrupted by modern construction. As prosperous residents moved out of the city, new immigrants arrived in the 1930s and 1940s, primarily Cultural Resources, Private Investment, and Failed Urban Policies S ections of Over-the-Rhine are prime candidates for revital- rural Appalachians from eastern ization: They are adjacent to Kentucky. Population and downtown Cincinnati and standards of living began to other improving urban neigh- decline rapidly in the mid- borhoods, they have been desig- twentieth century. By 1970, nated historical districts, and Over-the-Rhine’s population they offer an abundance of had declined to approximately available space. Civic and 15,000, although its ethnic cultural landmarks, such as composition remained fairly Music Hall (1878) and the balanced between white open-air Findlay Market (1853), (60 percent) and African draw visitors from around the American (40 percent). But city. Vestiges of private invest- by 1990, the neighborhood’s ment during the 1980s and 1990s remain: Entrepreneurs Cincinnati Historical Society Library civil unrest—were sparked by Cincinnati Historical Society Library A combined effect of the newly Although Over-the-Rhine had nearly 20 percent. Two nearby and entertainment establish- constructed Interstates 71 and the third-highest number of public housing projects have ments. Over-the-Rhine’s 75 was the concentration and subsidized units in Cincinnati, recently been razed and will chamber of commerce has a geographic isolation of the the city continued to award be replaced by two HOPE VI membership of 600. And last city’s poor, African American rent subsidies as the primary mixed-income housing projects. year, 90 dot-com businesses, population. tool for increasing affordable While the original residents will housing. be given priority to live in the replete with venture capital, In the 1970s, as population cropped up on Main Street in an decline and increasing poverty area known as “Digital Rhine.” became starkly evident, Over- Some urban homesteaders the-Rhine was a target of have renovated Italianate row federal and city programs to houses, and Firstar opened a rehabilitate the dilapidated branch in Over-the-Rhine, the housing stock. By this time, the only bank in the neighborhood. typical housing structure had This wave of investment become a three- to four-story energy, however, has not been multifamily building dissected enough to overcome the effects into several apartments, with of failed urban and housing only a few single-family houses policies of the 1960s and interspersed. 1970s. In 1960, urban renewal Programs designed to create 3 Cincinnati Historical Society Library 1888 Centennial Convention at Music Hall. resulted in the construction of affordable housing—including Interstate 75, displacing a large HUD Section 221 and 236— number of African American awarded subsidies to landlords vouchers are given directly to permanently relocated, and residents from the West End to provide low-income rental tenants; while this gives them a number are estimated to be neighborhood. With little housing, further exacerbating more freedom to choose where homeless. relocation assistance, many the dearth of home ownership to live, it has proven problematic migrated to nearby Over-the- and new housing construction. for stabilizing neighborhoods. to the inadvertent consequence Rhine, which offered available Federal aid shifted and was Following the April unrest, of “tipping” Over-the-Rhine and inexpensive space. allocated directly to cities to many residents used Section 8 toward poverty and segrega- disburse to their communities. vouchers for quick relocation, tion. The area’s physical and causing occupancy rates in social isolation has resulted Over-the-Rhine to decline in “impaction”—an intense Over-the-Rhine, circa 1916. COMMUNITY REINVESTMENT FORUM opened restaurants and arts Today, Section 8 housing new housing, many have Public policy has contributed Cincinnati’s History of Civil Unrest Civil unrest has been a part of Cincinnati’s history since it was founded along the Ohio River in 1788. Riots were a way of life in the 1800s, not just in Cincinnati, but in many urban centers: More than 1,200 riots occurred in the United States in the four 1780 1800 1810 1820 1788 1792 decades leading up to the Civil War. In the nineteenth century, some of Cincinnati’s Cincinnati founded. 50 people riot after a soldier beats a merchant. riots were racially charged, though not all. Residents erupted in the streets over bank closings, injustice, corruption, tensions with immigrants, and religious issues, as this timeline illustrates. Timeline is excerpted from John Kiesewetter, “Civil Unrest Woven into Cincinnati’s History,” The Cincinnati Enquirer, July 15, 2001. The full text of the article is available at www.enquirer.com/editions/2001/07/15/tem_civil_unrest_woven.html. concentration of poor, elderly, at 3 percent to 4 percent, And developers have no incen- And multiple, overlapping layers and minority residents in an compared to a citywide rate of tives to invest in a neighborhood of governance further compli- area that is cut off from the 39 percent. There is, however, that shows little potential for cate policy and regulation economic mainstream. Many no shortage of space for a return on investment and implementation: The 13- of these residents do not have housing in Over-the-Rhine: that lacks parcels large enough county Greater Cincinnati met- the means to migrate out or An estimated 500 buildings are to make new construction cost ropolitan region is notable for to improve their community vacant, as are 2,500 residential effective. its 340 municipal, county, from within. units (278 have been con- Cincinnati’s political demned as uninhabitable), system may not be structured 250 storefronts, and numerous to respond well to neighbor- undeveloped parcels. hoods in crisis. Prior to the Converting these large struc- November 6, 2001, election, and federal jurisdictions and districts. The Queen City Economy: Prosperity and Decay tures back into single-family the mayor was one of nine residences and transforming members of the city council, multifamily buildings into determined as the candidate Rhine, Cincinnati’s economy owner-occupied condominiums who garnered the highest num- has performed very well since would be challenging, although ber of votes. Decisionmaking the 1980s. Unlike many of not impossible. For those who power was vested in the city its peer cities in Ohio and want to own homes, banks manager. This arrangement the Midwest, it has not relied are skeptical of lending in a will change in 2002, with a heavily on manufacturing and, neighborhood with declining stronger mayor representing for that reason, has not suffered property values and associated the city. City council represen- sharp downturns in employ- disinvestment. Many residents, tatives are elected at large and ment and plant closings. In With generations of low home over generations of being eco- do not have political districts, 2001, unemployment remained ownership rates, a majority nomically marginalized, have creating a geographic discon- low at 3.5 percent, and the city’s of structures carved into multi- little or no borrowing capacity nect between residents and economy is well diversified, family rental units, and few through traditional mortgage representation from council. comprising consumer products, mixed-income housing options, brokers or lenders. Advocates there is little sense that residents Cincinnati Historical Society Library Over-the-Rhine, circa 1960. I n contrast to Over-the- City residents naturally finance, services, and a manu- point to discriminatory lending look for representation in their facturing base in transportation, own their community. Current practices in this predominantly 52 neighborhoods, many of food, and kindred products. home ownership rates in the African American neighborhood. which are segregated racially Several Fortune 100 and 500 and economically, creating a companies are headquartered in neighborhood are estimated fragmented political system. Randall B. Marx COMMUNITY REINVESTMENT FORUM 4 1790 1841 Whites are met by gunfire when they attack “Little Africa,” an African American neighborhood. Whites retreat and fire a cannon on the black community. 1830 1840 1855 Cincinnati’s establishment and German residents clash over a rumor that Germans might try to prevent others from voting for the American Party, or Know-Nothing Party, mayoral candidate. 1850 1829 1842 Whites drive more than 1,000 African Americans out of town. Panicked customers trash the Bank of Cincinnati after it closes. A white mob destroys an abolitionist newspaper press, then marches on African American homes. 1853 1870 1862 800 German Catholics march on Police and a volunteer militia unit restore order after weeklong Bishop John Purcell’s house, demanding riots by Irish and African Americans on the riverfront. that Cardinal Gaetano Bedini be expelled from the city. 1861 Irish and African Americans riot for two days 1848 on the city’s east side. Eleven people are killed when a white mob tries to lynch two jailed Mexican War veterans charged with assaulting a girl. Cincinnati, including Proctor & stadiums and infrastructure for During the 1990s, the Greater to shop outside the community, Gamble, The Kroger Company, future mixed-use development Cincinnati metropolitan area further impeding local employ- and Federated Department along the riverfront. These grew almost 9 percent, while ment opportunities. Social and Stores. Banks have a prominent prominent assets and invest- population in the city declined economic exclusion also have presence in the city, and an ments are just blocks from by the same amount. Employ- permitted an underground emerging biotechnology sector Over-the-Rhine, but residents ment, too, has followed popu- economy to grow and other in the highly regarded hospitals there do not directly benefit lation to the suburbs. Together, illegal activities to thrive. An at the University of Cincinnati from them. these trends paint a troubling exception to this trend is the picture: According to the recent gentrification of Main and Children’s Hospital Medical Distinct from many Ohio Center is gaining stature. An cities, Cincinnati contains some latest census data, the Greater Street, where new service and estimated $1 billion has been very wealthy neighborhoods Cincinnati area is now the retail businesses have created invested in development along within its municipal boundaries, eighth most racially segregated an arts and entertainment the Ohio River, including yet much of the population and metropolitan region in the district boasting over a million two new professional sports employment growth of the past nation. visitors a year. decade has occurred north and Findlay Market, 2001. Cincinnati’s economic pros- Unusually high drop-out south of the city. Suburban perity and demographic growth rates in Over-the-Rhine schools growth and sprawl typify the in the 1990s may have masked (45 percent), few opportunities development patterns of many the dying economy of Over-the- to earn a living wage locally, American cities, at the expense Rhine, where a self-sustaining and a lack of entrepreneurship of some urban neighborhoods: economy supported by small have resulted in severe unem- businesses and local entrepre- ployment rates and created an neurs has neither the resources economy of dependency. With- nor the momentum to develop. out home ownership integrated The area is not well served by with business ownership, the its businesses, forcing residents tax base and the community will most likely stagnate. COMMUNITY REINVESTMENT FORUM 1836 1860 5 1880 1890 1884 1900 1910 1920 > 56 people are killed and 300 wounded, and the Hamilton County Courthouse burned, in a weekend riot involving about 10,000 people. COMMUNITY REINVESTMENT FORUM 6 Cincinnati Historical Society Library economic, and political isolation discourage further intense segre- based organization, if not population, social service agen- necessitates this type of action gation. Cincinnati’s city council several, each competing over cies have sprung up throughout to prevent other neighborhoods has passed an ordinance to turf and funding. Such small Over-the-Rhine. But instead of from reaching the tipping point prohibit Community Develop- operations may not be able advocating self-sufficiency and of poverty. ment Block Grant recipients to effectively and efficiently from concentrating subsidized sustain long-term progress. To assist the disenfranchised empowerment, an unintended Cincinnati’s 52 neighbor- consequence has resulted in hoods need a sense of strong housing. But this initiative must CDCs also must strengthen dependency, further pinching leadership that will unite them. be coupled with subsidies that their capacity building, as residents off from the main- Creating city council districts encourage housing development organizations in other cities stream. Operating in a closed so that residents have repre- and rehabilitation across the have done. The result will be system has diminished Over- sentatives who are responsible spectrum of incomes. A sustain- CDCs empowered to partici- the-Rhine’s capacity to thrive and responsive to them is one able urban neighborhood is pate in citywide development and has made the area a tinder- approach. Another is to create one that offers mixed-income and to leverage other resources. box for civil unrest. a comprehensive plan for the housing (including affordable A much higher degree of city (the last was completed in housing); employment encom- cooperation is required among 1948) that includes voices from passing a variety of skill and all players—including the each neighborhood; Cincinnati’s wage levels; and a mix of public and private sectors— Department of City Planning is zoning, including retail, com- and the CDCs. T now advising the city manager mercial, residential, and of such a plan. Creation of a industrial, where appropriate. consider creating new products the-Rhine represent a crisis that policy agenda with funding Maintaining this mix is as and undertaking aggressive can be a unique opportunity for implementation is essential. critical as creating it. Balancing marketing strategies to promote for Cincinnati. All entities— A regional plan also would preservation and development home ownership and small corporate, government, non- articulate the role and relation- is just as crucial. business development. Educa- profit, and residential—have ship of Cincinnati and its neigh- a vested interest in this com- borhoods with the county, the development corporations and financial literacy are requi- munity realizing its potential, Greater Cincinnati metropolitan (CDCs) can more effectively site for the survival of declining and resources must be poised to area, and its multitude of other accomplish large and small urban neighborhoods. Similar reconnect the city and its neigh- jurisdictions. development projects citywide. to the Cincinnati Development Currently, each neighborhood Fund, which has been offering has at least one community- nontraditional financing for Opportunities for Political, Civic, and Financial Institutions his year’s events in Over- borhoods. The disequilibrium that has been created by social, Policies also must be enacted to deal with the past effects of impaction, as well as to A coalition of community Financial institutions should tion about home ownership years, the creation of a loan 1955 About 1,000 people gather when two African American women fight on a West End street. Two days later, 500 gather when police help a disabled black woman. 1930 1940 1950 1967 More than 400 people are arrested in June riots in Avondale, which leave one dead and injure 63. 1960 1970 < 1968 1941 1935 A fight between a black and white student at Oyler School ends with 16 arrests. Cincinnati Historical Society Library consortium for unique develop- ship, and preservation/rehabili- are not unique to Cincinnati. including home ownership, ment projects will mitigate risk tation of prominent civic insti- What transpired was partly a workforce development, entre- among participants while tutions to return the area to consequence of national trends: preneurship, building rehabili- allocating funds for larger or productive use. Two thousand older cities facing persistent tation coupled with historical more customized products housing units are proposed, racial and economic segregation, preservation efforts, public including a combination of declining urban populations safety, and creation of a sense rehab projects and new con- and employment, and pockets of community ownership. struction on 300 vacant lots. of poverty that did not share the Financing tools such as loan All stakeholders—residents, prosperity of the 1990s, resulting funds, tax incentives, and tax business owners, CDCs, and in economic polarization and increment financing must be faith-based and social service political disenfranchisement. in place to support such efforts. organizations—in the neigh- Reversing these conditions Other cities have formulated borhood have been invited will require investment and successful solutions for urban to participate in this planning community involvement to revitalization, and they should process. And most recently, create economically successful serve as examples for Cincinnati the Urban Living Loan Fund neighborhoods. to do the same. Clearly, the 1 and programs. Randall B. Marx Dean Zaidan, owner of Mediterranean Imports, Findlay Market. has been established for new The Federal Reserve Bank of momentum for action is already housing in the West End, Cleveland can help to address beginning to build in some of future, Mayor Charlie Luken Over-the-Rhine, and downtown these challenges through its Cincinnati’s neighborhoods. has convened the Community Cincinnati. Seven area banks, Community Affairs program. Urban neighborhoods histor- Action Now Task Force to the city of Cincinnati, and local By probing some of the social ically have played an important examine some of the issues foundations have contributed and economic causalities that role for cities, and we believe presented here (among others) to the fund, which will provide triggered the civil unrest in they hold the promise to do and to propose an action plan loans for rental projects, condo- Cincinnati, we are all in a so in the future. Together, the to address them. miniums, and new home con- better position to consider how public and private sectors can struction. The fund is targeted to improve the social and stimulate social and economic comprehensive master neigh- to reach $38.4 million, and institutional infrastructure restabilization in our urban borhood plan for Over-the- to date, 75 percent of that of declining neighborhoods. neighborhoods, and the Federal Rhine that advocates mixed- amount has been raised. Long-term solutions for a Reserve Bank of Cleveland is well-functioning neighborhood committed to being an active must address a myriad of issues, part of this process. As for Over-the-Rhine’s In 2000, the city began a income housing, entrepreneur- The underlying conditions in Over-the-Rhine that precipi- 1. The Federal Reserve Bank of Cleveland is available to assist banks with the creation of this type of consortium. tated the events of last April COMMUNITY REINVESTMENT FORUM Two people die and 220 are injured in riots after the death of Rev. Martin Luther King, Jr. 260 were arrested during two nights of violence. A crowd riots outside a West End store. 7 4th district COMMUNITY REINVESTMENT FORUM 8 prof Summit Targets Housing Strategies to Stimulate ike other urban core cities, Cincinnati and its neighbors, Newport and Covington, Kentucky—which together represent the urban core of the Greater Cincinnati/Northern Kentucky region—have experienced significant population declines and a dearth of housing investments in the past several years. Meanwhile, suburban areas continue to prosper. Recent census data reveal that between 1990 and 2000, Greater Cincinnati’s population increased 9 percent, while the population of the City of Cincinnati declined 9 percent—one of the highest rates in the country. Figures show a 10 percent decline for Newport, while Covington did not fare much better, reporting a nominal 0.2 percent gain. Collectively, the urban core experienced an 8 percent decrease in population. Others point to Cincinnati’s home ownership rate—which, at 39 percent, is one of the lowest in the nation— as another challenge for the central city. West 14th Street, Over-the-Rhine (facing Music Hall). Recognizing that a region is only as healthy as its urban core, the Metropolitan Growth Alliance (MGA), an organization that serves as a catalyst for regional collaborations, and the Cincinnatus Association, one of the city’s oldest civic organizations, came together to take action. About the same time that MGA was adopting urban core revitalization as one of its primary vehicles for promoting regional vitality, Cincinnatus was also beginning to focus more of its attention on such issues in a regional context. Rather than approaching the problem separately, they formed a partnership. According to Pat Timm, MGA’s executive director, “It’s an excellent partnership because it combines the leadership and collaboration skills of MGA and the expertise of a broad membership base of civic-minded professionals from various disciplines.” MGA and Cincinnatus determined that housing development, because of its multiplying impact, could have the greatest effect on facilitating reinvestment in Cincinnati, Covington, and Newport. The first step toward this effort was to develop a housing strategy. Randall B. Marx Reinvestment in Greater Cincinnati/Northern Kentucky Urban Core In June 2001, the two organizations initiated the process by sponsoring a Housing Strategy Summit, whose goal was to develop strategies targeting system-level changes to expand housing options at all price points, with an emphasis on home ownership. Cincinnati Mayor Charlie Luken, George Schaefer, Jr., of Fifth Third Bank, and Kathy Merchant of the Greater Cincinnati Foundation— representing the partnership among the region’s public, private, and philanthropic sectors—chaired the event. Participants were selected for their ability to influence system-level changes in legislation, regulation, and public/private financing that will be necessary to facilitate development. Although the organizations’ initiatives to expand housing options and increase home ownership within the region’s core were not direct results of this year’s civil disturbances, many feel the timing couldn’t be better. Some see the housing strategy as a way to create mixed-income neighborhoods and to address some of the underlying housing opportunity issues that have contributed to Cincinnati’s long history of unrest. Before the summit, participants were asked to share their thoughts on the primary barriers to and opportunities for enhancing housing options in the region’s urban core. Participants identified a lack of developable land in the area, deteriorated housing stock, limited and inflexible gap financing, and outdated zoning codes. They also identified a number of opportunities for stimulating reinvestment: creating new tax incentives, developing a land assembly program, creating a development authority with bonding and eminent domain powers, and providing core operational support for nonprofit development corporations. These themes established the framework for the summit. More than 70 participants from the private, public, and nonprofit sectors came together to tackle the task at hand: creating a housing strategy for Greater Cincinnati/Northern Kentucky’s urban core. Using the key themes of financing, legislation, and regulation, which had been identified in the pre-summit survey, participants divided into work groups for further discussion. During the breakout sessions, summit leaders urged the group to be creative and to draw on best practices. After a series of discussions, each group was instructed to prioritize their “strategies” for responding to the barriers and opportunities they had identified. The final session reconvened participants to identify the key components of what would become a regional housing strategy. Five strategies were chosen: ◆ Create a regional development authority ◆ Identify and develop new sources/methods of funding ◆ Advocate the passage of pending legislation and develop new legislation ◆ Review and modify building and zoning codes, processes, and practices ◆ Plan and implement a regional housing pilot project. To harness the energy generated by the summit, organizers asked participants to volunteer to work on committees that would research resources and develop detailed work plans to address each strategy, an effort bolstered by Mayor Luken’s Community Action Now Task Force. The task force, whose mission is to identify and drive actions that will provide greater equity, opportunity, and inclusion for everyone, elected to join organizers as a cosponsor of the housing strategy initiative. Key members will be recruited and added to the current committees to ensure successful implementation of the plan. The Federal Reserve Bank of Cleveland staff is currently involved with this housing strategy initiative and is committed to assisting with the implementation of those issues that will increase housing opportunities for all residents. It will be interesting to follow the progress of this effort over the next several months, as well as other endeavors initiated to respond to the issues facing the Greater Cincinnati/Northern Kentucky region. COMMUNITY REINVESTMENT FORUM ile 9 in my COMMUNITY REINVESTMENT FORUM 10 opi In preparing this issue of CR Forum, the Federal Reserve Bank of Cleveland’s Community Affairs staff spoke extensively with individuals from a broad spectrum of the community about problems and its potential, and we are grateful for their honesty Cincinnati, including the corporate, nonprofit, academic, and insight. philanthropic, and residential sectors. Those interviewed were Several common themes emerged during our interviews. One asked to express their views from a community economic of the most prominent is that Cincinnatians love their city and development perspective — although many found it difficult are saddened by the recent disturbances, but they are hopeful to limit their comments to this viewpoint. All were gracious, for the city’s future. The Federal Reserve Bank shares this senti- thoughtful, and forthright in their assessment of the city’s ment, and it is committed to working together toward this goal. Mark E. Lenear Executive Director, Miami Purchase Preservation Fund Lois Broerman Executive Director, North Fairmount Community Center V. Daniel Radford Executive Secretary-Treasurer, Cincinnati AFL-CIO, and Director, Federal Reserve Bank of Cleveland, Cincinnati Office Cecil L. Thomas Executive Director, Cincinnati Human Relations Commission Jim Moll Partner, Urban Sites Properties, Over-the Rhine resident What are the underlying economic conditions that precipitated the civil unrest in April? Mark E. Lenear V. Daniel Radford Cecil L. Thomas Two things come to mind, education and poverty. Poor education is a direct result of poverty. Before you work on housing or anything else, we need to make sure that people are adequately educated and trained. It doesn’t help that a number of technical and training centers are located in suburban areas, making it difficult for inner city residents to get needed training. Circumstances included an abnormally high rate of unemployment in Over-theRhine, one of the hardest hit neighborhoods. This neighborhood also suffers an extremely high poverty rate because many residents in this area hold jobs that barely pay a poverty-level wage, let alone a living wage with benefits. These factors created a situation that seems frustrating at best, and hopeless at worst. Although the economic outlook for much of Cincinnati and the surrounding area is optimistic, the conditions in some of our neighborhoods, like Over-the-Rhine and the West End, do not engender the same confidence. While there has been an influx of business and housing development in some communities, including downtown, others have been neglected and are deteriorating. Just as there is a call for a vibrant and attractive downtown, there must also be strong infrastructures in low-income neighborhoods that encourage development and growth. Among young, African American men, Lois Broerman It happened in an area that consists mainly of rental and public housing. People basically are being warehoused and are too close together. They feel powerless, with no real sense of community. there is a pervasive feeling of being shut out; as a result, they have created their own “economy.” Many of these issues have continued to rage just below the surface, and in April we witnessed the result of decades of frustration and hopelessness. Jim Moll The number one, most important, top-ofthe-list condition is that of warehousing the poor. Local policies to house the poor have not allowed residents to benefit from economic opportunities. Jeanne M Golliher Executive Director, Community Development Fund Linda Brock Over-the-Rhine resident Charles Whitehead President, Ashland Inc. Foundation and Director, Federal Reserve Bank of Cleveland, Cincinnati Office COMMUNITY REINVESTMENT FORUM nion Karla Irvine Executive Director, Housing Opportunities Made Equal 11 How can the situation be fixed? Jeanne M. Golliher Charles Whitehead I believe that one step would be to bring residents of all income levels into the urban core to create mixed-income neighborhoods, continue to create job opportunities and improve the tax base which will lead to improving the quality of our schools. It will also improve the quality of life. An action agenda that puts people to work must be developed. A significant number of African American males between the ages of 18 and 32 are out of work. They have had problems with the judicial system, are poorly educated, have access to fewer programs, jobs, and opportunities, and are the products of the desperate effect of the city school system. Issues like riverfront development versus continued deterioration of the residential areas of the city, coupled with the lack of trust between the African American community, the police, and the power structure only intensified the existing problematic conditions. We need activities and programs that build trust. Linda Brock We need to admit there is a problem. Neighborhood groups need to recognize the issues affecting the neighborhood. Most residents are caught between ineffective neighborhood groups and the city. We need to strengthen community organizations so that they represent the residents and get more residents involved. We need to change the minds of residents. We need to be able to give them opportunities so that they can see that change is possible. Karla Irvine We must end public policies that have the effect of concentrating low-income African American residents in a few city neighborhoods. Concentrations of poverty by race breed isolation from the mainstream, despair, and anger— the ingredients for violence. Debbie Mays Over-the-Rhine resident and President, EZ Non-Profit Housing Corporation Darrick Dansby Executive Director, SmartMoney Community Services Debbie Mays Darrick Dansby First, identify the reasons why many residents of Over-the-Rhine are not selfsufficient. Too many young, black males are not working and have lost hope. We have to determine how we can get people interested in pursuing small business opportunities. I think the Overthe-Rhine Comprehensive Plan, which preliminarily has targeted food specialty (Findlay Market) and building restoration (historic structures) as possible areas for small business development can assist with this effort. Many residents in Over-the-Rhine and other low-income neighborhoods in the city have good business skills but lack the capital, resources, and education to put them to good use. There should be more grants and forgivable loans available to help individuals get the chance to start a small business and get back on their feet. C O N T I N U E D O N PA G E 1 2 > CR FORUM ACKNOWLEDGMENTS CLEVELAND Mark Sniderman Senior Vice President and Director of Research 216/579-2044 Phillip R. Cox President and CEO, Cox Financial Corporation and Director, Federal Reserve Bank of Cleveland Randall B. Marx Please contact the following members of the Community Affairs staff if you have questions or would like additional copies of this publication. Dr. David Varady Professor, School of Planning, University of Cincinnati Ruth Clevenger Assistant Vice President and Community Affairs Officer > CONTINUED F R O M P A G E 11 Elder Street, Over-the-Rhine. 216/579-2392 Who are the players that can make this happen? Virginia Hopley Research Analyst 216/579-2891 Laura Kyzour Administrative Assistant 216/579-2846 CINCINNATI Jeff Gatica Senior Advisor 513/455-4281 Candis Smith Community Affairs Liaison 513/455-4350 PITTSBURGH Jacqueline King Community Affairs Manager 412/261-7947 Althea Worthy Phillip R. Cox Dr. David Varady Jim Moll We must all understand that the solution to our community problems is a shared one. Joint responsibility, commitment, and accountability must be taken by all. There isn’t enough money, time or volunteers to solve the problems without the engagement of a parental head of each family unit taking the lead. The parental head may be a grandparent, older sibling, aunt or uncle, or a traditional mother or father. No effort outside of that structure will work. Countless hours by volunteers and special programs cannot offset the impact of what happens in each home when the volunteers and programs go away. Events that occurred in Cincinnati could have happened in other places. Efforts need to be made to improve the trust level between the community and police. A variety of players can help this happen: politicians, policymakers, and community leaders. Unfortunately, leadership on this issue has been sorely lacking in Cincinnati. I’m concerned about the number of agencies in Over-the-Rhine that believe people can be helped by warehousing the poor. Agencies—including faith-based and government-supported—need to provide more than handouts. They should establish self-development goals for individuals. Jeanne M. Golliher While I am cognizant of the need to involve government, business, civic, community, religious, and civil rights leadership, of far greater importance is the involvement and participation of the “average” citizen. There is so much at stake; the very life of our community depends on how we respond, and more importantly, how we come together to resolve these challenges. Community Affairs Liaison Business leaders, city leaders, religious leaders, and social agencies must collaborate. It’s happening now through the efforts of Community Action Now. Several committees have been formed to develop solutions. 412/261-7943 Visit us on the World Wide Web www.clev.frb.org Cecil L. Thomas We welcome your comments and suggestions. The views stated in Community Reinvestment Forum are those of the individual authors and are not necessarily those of the Federal Reserve Bank of Cleveland or of the Board of Governors of the Federal Reserve System. RESOURCES Community Action Now 200 West Fourth Street Cincinnati, Ohio 45202 www.cincinnatican.org Materials may be reprinted provided that the source is credited. Please send copies of reprinted materials to Community Affairs, Federal Reserve Bank of Cleveland, P.O. Box 6387, Cleveland, Ohio 44101-1387. Cincinnati Historical Society Cincinnatus Association Metropolitan Growth Alliance 1301 Western Avenue Cincinnati, Ohio 45203 800/733-2077 Jim Peterman, President 2 P&G Plaza Cincinnati, Ohio 45202 513/986-6198 Patricia Timm, Executive Director 2000 West Fourth Street Cincinnati, Ohio 45202 513/241-2880 www.cincymuseum.org Randall B. Marx
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