THE REGION

INTELLIGENCE REPORT SITE SELECTION MAY 2020

THE CINCINNATI REGION INTELLIGENCE REPORT PROJECT SPOTLIGHT

Renderings courtesy FC Cincinnati

discussed the impact of FC Cincinnati and design a new stadium for 2021. We global currency. People everywhere can on the region and why he himself is a big had to build a new training stadium. If relate to international football. They can fan of Greater Cincinnati. you don’t get your front office right, you come to Cincinnati and have a soccer will not succeed. I think we did that. team. It makes us seem a little less The rapid rise of FC Cincinnati has been one of remote and foreign. We need things like the more phenomenal MLS success stories of the How were you able to build up such a large and FC Cincinnati. For Cincinnati, we have past decade. What did your organization do to loyal fan base so quickly? been a real positive impact. enable this? BERDING: Through word of mouth. People What lessons can other MLS franchises learn from BERDING: When Carl Lindner and I were coming and saying, “Wow, that is the success of FC Cincinnati? created the club, we had a very specific fun and awesome,” and then they would plan about how to build FC Cincinnati. tell their neighbors and friends. We BERDING: The biggest thing is that It was going to be a very organic build. wanted to be a manifestation of a rising relevance is so critical. We used our HOW SOCCER TOOK We wanted to create a winning team Cincinnati. Cincinnati has been a rising three core values — and the fans know and a family-friendly club that gives success story since 2001, with Over that winning is very important to us. back to the community, and we wanted the Rhine and other developments. If we did all of that, we knew that we A CITY BY STORM to run it at a major league level. We had FC Cincinnati has been an example of would have the opportunity to build a a strong ownership group right from that. When we were pushing to earn a successful brand. the start. We were going to audition promotion to MLS, I was talking about in the USL and earn our promotion to how we grew organically. Having a How has FC Cincinnati integrated itself into the A well-crafted plan MLS through our performance. We great game-day experience was doing wider community of the city and region? made the rapid rise of wanted to do it in four years. Orlando something good for the city. Our tag did it in five. We had influencer groups line is “Rise Together.” We want to rise BERDING: A big part is by living our values. FC Cincinnati possible. that we concentrated on — a business as a city together. We are giving back. When the pandemic community that would buy into the started, a lot of kids were getting their success of building the international lunch at school. Many kids in the West reputation of Cincinnati; a strong End were in danger of missing meals. youth soccer community; and the most Soccer is the one We started collecting donations and we by RON STARNER passionate soccer fans anywhere. We have been funding those meals. In the [email protected] felt we could organically build the club sport with real West End, they never had youth soccer through those three universes. teams before. They now have the West Our goal was to draw 10,000 fans per global currency.” End Pride complete with 10 teams. We hoever thought shattered USL attendance records and President aren’t resting game and sell $600,000 in merchandise — Jeff Berding , FC Cincinnati President also contribute in the leadership of the a soccer team preconceived notions about the viability on laurels, however. Team officials are in year one. In year one, we averaged community. Our owners Carl Lindner could capture the of soccer in a mid-tier Midwestern city. preparing the organization for its move 17,000 in attendance and sold $1.6 and others are big-time leaders in the imagination of sports From its inaugural home opener into a new $250 million West End million in merchandise. Our second- How has FC Cincinnati impacted the economy in wider community. Our foundation is fansW in the land of the Big Red Machine on April 9, 2016 — when it defeated Stadium that architect Populous says year average was over 21,000 in USL. We the Greater Cincinnati region? significant too. Over a million dollars must have been dreaming. the Charlotte Independence at the “features an ambitious interpretation averaged 30,000 fans at three matches last year were leveraged or invested in Yes, they were. University of Cincinnati’s Nippert of Cincinnati on the rise.” Scheduled in the U.S. Open Cup. We averaged BERDING: Ask the restaurants and bar the community. Carl Lindner III, co-CEO of Stadium — to today, FC Cincinnati has to open in March 2021, the 26,500- over 26,000 a game in year three, won owners in Clifton around Nippert Cincinnati-based insurer American drawn a blueprint for how to construct a seat stadium will be unlike any the USL Supporters Shield and won our Stadium. They would say we are a What do you like best about living and working in Financial Group, heads an ownership successful pro sports franchise. other in MLS. promotion to MLS. We did not have welcome addition to the social scene. Cincinnati, ? group that brought FC Cincinnati not By averaging over 27,000 spectators “There’s a dedication and authenticity two or three years to prepare. We had That’s good business. Think of all the only into existence, but all the way to the per match in its first MLS season in to soccer in Cincinnati that rivals 270 days from winning our bid to our hotels. We are bringing in people from BERDING: The best selling point for ranks of — and he 2019, the club proved that success can any city in the U.S.,” says Jonathan first match. out of town. You get the economic Cincinnati is that it’s the biggest small did it in less than five years. be achieved quickly. FC Cincinnati Mallie, Populous senior principal and From a business standpoint, we were multiplier — Uber rides, bars, etc. If town or the smallest big city in America. To call FC Cincinnati a professional captured the hearts of supporters, whose lead designer. successful right away. We did over you’re a worker and have a part-time job We have pro sports and a vibrant sports franchise success story would be ranks now include billionaire Meg Former 27,000 in attendance — No. 3 in the as usher or ticket taker, you’re getting 17 business community. The geography of an understatement. In only its fourth Whitman. The former boss of eBay member and longtime Cincinnati league — in year one in MLS. There matches a year to help provide for your the city is interesting. People can get year of existence, the club ranked and Hewlett Packard plunked down Bengals front-office executive Berding were challenges along the way. We had family. When our business groups are to work in 15 or 20 minutes. You can third in attendance in MLS in 2019. $100 million to buy a 20% stake in FC says West End Stadium will be “the to go from 30 employees to about 88 recruiting international companies or bike to work. FC Cincinnati players are Its meteoric rise through the United Cincinnati on Nov. 28, 2019. Jewel in the Queen City’s Crown.” In an today. We wanted to hire a GM on the talent, FC Cincinnati is often part of the noticed in this market, and the people of Soccer League, from 2016 to 2018, Whitman, Lindner and FC Cincinnati interview with Site Selection, Berding soccer side. We had to hire the architect pitch. Soccer is the one sport with real Cincinnati are so nice to them.

4 MAY 2020 SITE SELECTION SITE SELECTION MAY 2020 5 THE CINCINNATI REGION INTELLIGENCE REPORT PERSPECTIVE

Photo: Getty Images

UNIQUE COALITION by ADAM BRUNS [email protected] ‘FORGED OVER TIME’

ruce Katz, director of the apart from other places, and it’s a singer Dolly Parton: “Find out who you Nowak Metro Finance manageable city in size and scale, with are and do it on purpose.” That sense of Lab at Drexel University’s so many anchor institutions. It’s a highly authenticity rings loud and clear in this Lindy Institute for Urban functional place in terms of multi-sector tri-state region. Innovation,B is best known as the networks and relationships that have “One thing that makes Cincinnati founding director of the Brookings been forged over time.” such a unique and special place is large Institution’s Metropolitan Policy Shared history takes time, but enables anchor institutions with a history of Program and the author of “The New a community to react quickly in times doubling down when things get tough,” Localism: How Cities Can Thrive in the of crisis, Katz says, and the current says Kimm Lauterbach, president and Age of Populism.” He’s been studying pandemic offers a case in point. Regions CEO of REDI Cincinnati. “We are a metro-area economies for nearly 30 years. such as Cincinnati that have local capital midsize city that feels a lot like a small Katz says several things set Cincinnati invested locally and a strong cluster of town when it’s time to get together.” apart, starting with a particularly strong intermediaries are able to pivot quickly Cincinnatians have been getting network of chambers, large companies, and get things done. together in huge numbers at new MLS philanthropies and universities. “As we look to the future, we’ll club FC Cincinnati’s soccer matches. Moreover, there are large companies “that see even more reshoring of certain Not only did the team’s arrival coincide are fully committed not just to place, but manufacturing,” Katz says. “This whole perfectly with the Over the Rhine to more inclusive growth, and have been crisis has reinforced the question of transformation and an infusion of for some time,” he says. “The supplier ‘Why aren’t we making these goods millennials, but the team chose the diversity effort at P&G and Kroger, here?’ Cincinnati is well positioned to West End, a historically disadvantaged which is not a recent phenomenon, shows continue to play that role,” with a strong community, for its stadium, and has been an understanding of how demographics healthcare and life sciences sector, vibrant working to ensure opportunities for area are changing and an understanding of startups and accelerators, a diverse residents. And it’s been funded largely by shared prosperity. Very few cities are industry mix and a robust center city individuals who just believe in the region, able to start, capitalize, steward and whose Over the Rhine district and other including non-resident Meg Whitman, sustain these kinds of initiatives over amenities compete with the assets of who before her Silicon Valley ascent was decades, and that’s what Cincinnati has much larger cities. “Cincinnati is not a a brand manager at P&G. been doing. one-trick pony,” says Katz. “It’s just such a uniquely Cincinnati “They don’t crow about it much, but Mostly, though, it’s a region that’s not story,” Lauterbach says. “It puts a bow on it’s quite remarkable,” he says. “They performing tricks at all. It’s just going what Cincinnati has been doing over the have a stick-to-it-iveness that sets them about its work. Katz recalls a line from last decade.”

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THE CINCINNATI REGION INTELLIGENCE REPORT NORTHERN KENTUCKY

Photos courtesy of Amazon AMAZON HUB TURNS ECONOMIC GEARS

air cargo thanks to DHL’s hub of jobs, talent and the business operations there. In fact, as environment,” said Lee Crume, former Amazon works toward its air global business development director for hub’s official opening in 2021, JobsOhio, when he took the helm as Tri- the company has worked with ED’s president and CEO last spring. DHL in the interim, operating 18 aircraft and 36 daily flights out New Transportation Secretary Not New to of CVG since May 2017. Air Cargo Impact “This hub is going to let us get Even before Amazon Air’s hub packages to customers faster,” said announcement, economic development by ADAM BRUNS Amazon Founder and CEO Jeff Bezos. investments helped accelerate progress [email protected] “That’s a big deal.” on Kentucky Transportation Cabinet CVG in 2019 became the eighth- (KYTC) plans to reduce congestion largest cargo airport in North America. with major pavement and interchange ajor air cargo investments More than 700,000 tons of cargo pass improvements within a 10-mile from Amazon, UPS, through the airport annually. radius of CVG. DHL and Atlas Air and The spinoff growth is concrete: Satco At the KYTC helm is newly appointed others top Kentucky’s Inc., a manufacturer of Unit Load Kentucky Secretary of Transportation listM of corporate projects as measured Devices (ULDs) and other equipment Jim Gray, a former mayor of Lexington by capital investment and jobs, as the for commercial cargo and passenger who was busy drumming up business for commonwealth collectively closes in on aircraft, announced it will establish a design-build firm Gray Construction n becoming the No. 1 air cargo hub in new location in Miami Township, Ohio. the 1980s when he found himself in the the nation. Only one of those is not in FEAM Aero employs approximately 200 earliest UPS meetings about Louisville. the Cincinnati-region juggernaut that is technicians who provide MRO services “Air cargo at that time was just northern Kentucky. for DHL, Amazon, and passenger emerging, and of course UPS was at the “The activity has been phenomenal,” aircraft. A new $19 million hangar will leading edge,” Gray told me recently. “It says Kimm Lauterbach, president mean another 100 aircraft mechanic jobs. seemed important at the time, but I don’t and CEO of REDI Cincinnati, of the New York–based Atlas Air, contracted to think I realized how transformational industrial development buzz around fly for DHL and Amazon, is building a it would be.” Working with UPS all Cincinnati/Northern Kentucky facility in Erlanger where the company those years, “we have a better sense of International Airport (CVG). The plans to hire 600 workers over 10 years. what Amazon will be. The Cabinet has combination of Amazon’s new 2,000-job Those companies are part of an been working very closely with Amazon. Air Hub and DHL’s global super-hub at overall northern Kentucky economy I just had meetings examining the CVG will make for an air cargo footprint that has recently welcomed job-creating roads and highways in and around the twice as large as the UPS Worldport site investments from Fidelity Investments, facility at CVG ... We’re even examining in Louisville, she says, “and we know Gentis Solutions and Step CG, among other opportunities to improve the UPS has attracted over 200 companies to others, as an urban renaissance continues transportation network in the area, so be close to that hub. across such cities as Covington, the workforce and the whole system will “A vibrant airport with a strong air Newport, Erlanger, Ft. Mitchell and work as efficiently as possible.” cargo footprint improves the economic Florence. Northern Kentucky Tri-ED The 40 years since UPS landed in vitality of our region,” said Candace is the economic development entity for Louisville have dramatically boosted that McGraw, CEO, Cincinnati/Northern Boone, Campbell and Kenton counties. region. One look at the reach of Amazon Kentucky International Airport, at “Northern Kentucky Tri-ED is in the world today and “you can quickly Amazon’s May 2019 groundbreaking. entering a transformative phase defined imagine,” says Gray, “what it’s going to CVG has had years of experience with by substantial growth and development mean for northern Kentucky.”

10 MAY 2020 SITE SELECTION THE CINCINNATI REGION INTELLIGENCE REPORT INNOVATION

Images courtesy of the University of Cincinnati

NEW DISTRICT IS NEXT CHAPTER IN ‘NEXT LIVES HERE’ STRATEGY A conversation with University of Cincinnati Chief Innovation Officer David Adams

n March, Ohio Governor Mike by ADAM BRUNS buildings that will provide office/lab, DeWine, Lt. Governor Jon [email protected] retail, housing and nightlife that will Husted, JobsOhio, the University make the area attractive to job creation, of Cincinnati and Cincinnati this historic investment in our Next private investment, and talent seeking an IChildren’s Hospital Medical Center Lives Here vision for talent, research urban experience. announced a first-of-its-kind partnership and innovation,” said UC President “The Cincinnati Innovation District designed to build, retain and attract Neville Pinto. is the next big thing for Cincinnati’s talent to Ohio by formally introducing UC developed an innovation growth,” said Cincinnati Mayor the Cincinnati Innovation District. district blueprint through the creation . “The three most important elements of the 1819 Innovation Hub and the Leading the charge for that next big to developing a vibrant, modern 400,000-sq.-ft. Digital Futures complex, thing is David Adams, chief innovation economy are innovation, talent and which already have attracted major officer at the University of Cincinnati investment,” said Lt. Governor Husted. corporations such as P&G and Kroger, and president of the 1819 Innovation “Great ideas must find a way from small- and mid-sized companies and Hub. He came there from overseeing the lab to the marketplace if they are startups. It’s in keeping with recent the $1.2 billion financial and operational to improve the quality of life for the Brookings Institution research, based aspects of the University of Louisville public and create jobs and economic on data from AUTM (formerly the as chief administrative officer. Before opportunity. This innovation district Association of University Technical that, he led the operational improvement will make this process faster and more Managers), that shows universities with and merger of Indiana’s $30 billion effective.” a downtown presence punch above pension systems for Indiana Gov. Mitch JobsOhio will invest up to $100 their weight. ““They produce more Daniels. In addition to those leadership million that aims to foster over the next patents (often twice as many), licensing roles in all the states comprising the decade up to 15,000 STEM graduates agreements, licensing revenue and Greater Cincinnati region, he was also as well as the execution of $2 billion of startups, given the size of their student a founding member of the executive research and real estate development populations, than those located in team that grew i2 Technologies from within the District, ultimately resulting smaller ‘college towns’ and in suburban $4 million to $1.1 billion in seven years, in an estimated 20,000 new jobs and $3 and rural areas,” the report stated. driving it to NASDAQ 50 status. billion of annual economic impact. The new district is expected to attract Adams recently responded to a few “We are humbled and inspired by significant investment in mixed-use questions from Site Selection.

12 MAY 2020 SITE SELECTION the IP created with researchers — an towards a “connected supply chain” — to solve the talent crisis. This is a global innovative approach. This was a major understanding our industry (customer) crisis. Our message to all companies issue with companies like Kroger and needs and connecting them with around the world: Come to Cincinnati P&G who develop significant IP. No students and faculty (supplier), both at and we will solve your need for talent. longer an issue. the university and at high schools. That We deliver on this promise for global We flipped the IP policy for faculty, is transformation too. companies already. giving them exclusive rights to their IP, and accelerated moving ideas from You’ve had considerable international experience. You have lived in a lot of places. What are the the lab to the marketplace. As for To what extent are innovation corridors, districts top few things you’ve discovered about Greater students, they now own their IP. Since and hubs on the radar of FDI prospects from other Cincinnati since you arrived? these changes, we have experienced countries? a 1000% increase in the number of David Adams: It’s a very collaborative The Cincinnati Innovation District aims to foster over the next startups generated from the university David Adams: Earlier this year, I visited community with a can-do attitude and decade up to 15,000 STEM graduates as well as the execution — a dramatic increase. As a further the innovation districts in Sydney and strong work ethic. Organizations are of $2 billion of research and real estate development. testimonial, UC is the blueprint for Lt. Melbourne, Australia. What resonated willing to work together for the greater Governor Husted’s “Ohio IP Promise,” strongly with me is they view the “talent good. My other key observation, having rolled out to all 14 state colleges and war” as a global competition. I received lived and worked many places around Just as every region once tried to have its own brand top healthcare research institutions universities. We have essentially the same message when I visited the the world, is how great a city and region of Silicon Valley or Bio Corridor, today it seems located right next to one another is truly eliminated the friction, focusing our MaRS innovation district in Toronto, this is to live in. We are humble and like innovation districts are everywhere. As you remarkable. It dramatically expands attention on solving partner problems. Ontario, Canada. We share a similar hard-working in the Midwest, and have survey the landscape, which districts do you seek to the solutions that we can bring to the view with the Cincinnati Innovation a tendency not to beat our chest. That is emulate, and what makes them work? problems that society faces – combined Tell me how the time-tested coalition of institutions District. We are driven by one mission: about to change. we conduct over $450 million in research and anchor employers in Greater Cincinnati has University of Cincinnati Chief Innovation Officer each year. stepped forward in support of this new district and David Adams: Great question. We invested the region’s startup/entrepreneur culture. significant time researching and visiting innovation districts prior to launching David Adams: It’s a team effort. We will the Cincinnati Innovation District. accelerate our efforts with the launch The successful ones have a common of the Cincinnati Innovation Distric denominator – they are all anchored because of our partners. We are by major research institutions like the fortunate to have Fortune 500, small University of Cincinnati. Major research to mid -size and start-up companies institutions, like universities and medical headquartered here. Cincinnati is a research centers, provide a significant David Adams highly collaborative community, and supply of student and faculty talent. innovation requires collaboration. One keen observation is that talent is I’ve talked to university leaders for many years The Cincinnati Innovation District drawn to locations where innovation is about evolving approaches to loosening control of creates the ideal place to facilitate occurring, and organizations are drawn intellectual property (IP), and UC seems to have creative collisions between partners. to locations that have the talent. If you made that pivot as part of the Next Lives Here Proximity matters. look at the cities where these successful agenda. Tell me how you approached this. districts are located, they are attracting Is there a sense that your Office of Innovation can talent and the organizations that seek David Adams: Like everything else we do, not only spark commercialization and startups, but that talent. we went and asked faculty, investors spark transformation in how UC operates too? like venture capitalists and companies A powerful aspect for your newly announced about the impediments to engaging with David Adams: Absolutely. With the recent district is the fact that, as in Philadelphia and a few our university around IP. We learned announcement of the Cincinnati other places, you have the partnership of a major there were many, and sought to reduce Innovation Distric and the $100 healthcare institution. How does this distinguish or eliminate the friction. We worked million investment from our partner your efforts? with our partners and the university JobsOhio, we are accelerating our board to revise our policies and create STEM graduates by 15,000 and research David Adams: Having a Carnegie level-1 standard agreements. From a corporate by $2 billion. That is transformational research institution and one of the standpoint, companies can now own for a university. We are rapidly moving

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by ADAM BRUNS [email protected]

CORNERING THE MARKET: SOUTHEAST INDIANA’S CRUCIAL ROLE IN THE CINCINNATI REGION Image courtesy of One Dearborn, Inc.

he southeastern corner of BLINK festival he and his wife recently and Gateway Community & Technical Indiana combines industrial enjoyed downtown. What his employer College in Kentucky,” says Ferguson. sites, low taxes, a reverse enjoys are ideal location assets. “Being a part of the Greater Cincinnati commute, full access to the “Dearborn County is ideally situated area also affords the opportunity to TCincinnati MSA’s labor shed and Indiana for business, especially for the container source talent from top tier universities for incentives with a unique quality of place. glass industry,” he says. “We are located engineering and mechanical specialties.” Corporate investors like the value they near a major rail yard in Cincinnati, Other companies expanding in the find in this often overlooked part of the the Cincinnati/Northern Kentucky region include Whitewater Mills, Siemer Cincinnati region. International Airport, and the I-75 Milling and GE aircraft engine parts “Through careful analysis of each of corridor. This close proximity to a major supplier Polycraft. In 2014 polymer their facilities, Anchor Glass Container rail & trucking routes in particular helps and composite parts and tooling firm Corporation decided to invest in us avoid supply chain disruptions.” Polycraft moved into its Greendale the Greendale, Indiana, plant,” Kyle “In fact, the Indiana portion of the facility, 10 miles west of its first plant in Ferguson, regional controller for MSA is closer to Cincinnati’s city center Cleves, Ohio. Kay Landers, a company Anchor’s Lawrenceburg and Elmira and the airport than several major principal and the wife of company plants, tells Site Selection. “Anchor suburbs that have seen rapid commercial founder Tom Landers, says since Glass was impressed with the active development,” notes Terri Randall, expanding to the Greendale site, the participation of and collaboration president and CEO, One Dearborn, Inc., company has grown from 54 employees with various city parties including the the economic development organization to around 85. Economic development Greendale Redevelopment Commission, formed in 2017 when Dearborn County’s funds coming from the area’s casino Greendale Utilities, the City of private businesses, public officials and revenues were crucial to the incentive Greendale and the mayor’s office ... Their not-for-profit leaders came together to package. But just as crucial was dedication to the community and to the create a vision for the future. “While not the attitude. success of the company played a major perfect for every project, there are some “There is very little self-interest factor in Anchor’s decision to invest in unique logistics, workforce, incentives involved in working with people here,” the Greendale plant.” and tax climate advantages that are she says of area leaders.. The people are Ferguson, who relocated to the worthy of deeper review.” honest and direct.” Cincinnati area from central Texas 13 Those advantages include greenfield Does a smaller community and years ago, says the Cincinnati region industrial sites on the I-74 corridor. bureaucracy mean faster permitting and allows “for a more reasonable cost of “We rely on two community colleges regulatory approvals? “Absolutely,” she living while still providing the benefits of within the region for training of our says. “More people want to help you do a large metropolis,” including the unique workforce — Ivy Tech in Lawrenceburg what you need to do.”

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