Riverside Purchases Two Office Buildings to Spur Development

Aug. 26--RIVERSIDE -- Riverside city leaders have purchased two Wright Point office buildings in their latest bid to spur economic development in the Center of Flight area, across from the National Museum of the US Air Force.

City officials have been working on the Center of Flight project for more than 10 years and officials have long considered the project ripe for development, since it sits across from one of the largest tourist attractions in the state.

As part of the plan for Center of Flight development, profit generated from the Wright Point leases will be spent on marketing the city and the 20-plus acres it owns in the area.

When complete, the 25-year, $425 million Center of Flight project -- featuring office, hotel, residential, retail, restaurant and educational components -- is projected to generate $25 million in annual revenue, according to city officials.

"I've been disappointed so many times, but that land is too important to not continue to try to develop it," Riverside Mayor Bill Flaute said. "Our expectation is that it's going to be a great asset to the city of Riverside."

The average daily traffic count is approximately 12,000 to 15,000 on Springfield Street, outside of the museum and 35,000 on Harshman Road, a main thoroughfare through the city that feeds to Springfield Street, according to Riverside City Manager Bryan Chodkowski.

Since 2008, the Air Force museum has averaged a yearly attendance of 1,226,030, according to information provided by the museum. Through the end of July, this year's attendance was 637,422.

Jacquelyn Powell, president and CEO of the Dayton/Montgomery County Convention & Visitors Bureau, said Riverside is the "gateway" to the museum.

"From that standpoint, they have an opportunity to engage a lot of people," she said.

According to past visitor surveys, more than 50 percent of the visitors to the Air Force Museum are from out of state, while six percent are international visitors, museum spokesman Rob Bardua said. Bardua said the National Aviation Heritage Alliance has determined that the museum has an annual economic impact of $40 million.

In 2012, visitors who made day trips to locations across Ohio spent on average $108 per day, while those who stayed overnight spent $321, according to Tamara Brown, public relations manager for TourismOhio. Lodging and meals are the two biggest factors, Brown said.

"Those folks are coming into our community, staying in hotels, dining in restaurants, shopping in our stores," Powell said. "There's a lot of potential for individuals to spend their money in our community."

As the landlord of the Wright Point buildings, Riverside is projecting a profit of $300,000 annually, Chodkowski said. That money will go into the Wright Point fund -- designated by the city to "promote economic development," he said.

Riverside -- which closed on the Wright Point office buildings June 16 -- financed the $2.6 million purchase. The buildings are located at 5100 and 5200 Springfield Street, and the 20 current tenants' leases are expected to generate $1.3 million annually. The lease money pays off the loan as well as the $6,000 a month for Crest Commercial to manage the property.

"We can use non-general fund money to acquire additional property, market the city, demolish properties," Chodkowski said. "Those expenses no longer rely on general funds."

Of the 42 acres in the Center of Flight area, the city owns a little more than 20 acres, with 18 of them contiguous, Chodkowski said. Since March 2002, Riverside has spent about $5.4 million to acquire and demolish properties, in addition to another $360,000 paid to Forest City Enterprises for consulting work.

The bulk of the 20-plus acres was purchased prior to 2007 when the city bought four properties, Chodkowski said. The purchased properties were:

-- DAP, 5300 Huberville

-- Paradise Inn, 5441 Springfield

-- Best Inn, 5551 Springfield

-- Kecho/Cassano's, 5555 Springfield

The funding came from multiple sources, including general fund dollars, Chodkowski said.

"There continues to be interest, but it's a site not without challenges," he said.

Those challenges, Chodkowski said, include the limited developable acreage, lower traffic counts and the lack of rooftops in that area.

"We've been very open about the fact that we're open," Chodkowski said. "It's a unique ground that requires a unique project. We think it'd be extremely rewarding for the right investors."

Last September, the city entered into an exclusive listing agreement with NAI Dayton to market a proposed $10.5 million, 65,000-square-foot office building for defense contractors on a five-acre site for the Center of Flight. There was no cost to the city to enter into the three-year agreement.

Russell Maas, a principal with NAI, said the process is "not moving rapidly, but there is interest out there." Maas said there have been preliminary discussions, but a building won't come out of the ground until a tenant is on board.

"This is the front door to the major attraction in the Dayton area," said Bob Murray, Riverside's director of planning and economic development. "I'm not going to throw a hot dog stand over there. Its time will come."

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