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County could move 600 jobs to Bond Hill but where are Mercy Health jobs that were there?

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5 months ago

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County could move 600 jobs to Bond Hill but where are Mercy Health jobs that were there?

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Hamilton County administrators are expected to roll out a plan Tuesday to sell five county buildings − including the historic 146-year-old Alms & Doepke building on Central Parkway in Over-the-Rhine − and buy Bon Secours Mercy Health offices.

The county would then move 500 to 600 employees to the Bond Hill site that has been home to Mercy Health offices since 2016.

The deal, while proposed as a boon to the county that will save money and provide better client service, is also the first public acknowledgment of the demise of a much-touted 2014 city deal in which Mercy Health was supposed to bring 1,050 high-paying jobs to Bond Hill. The deal, when fully executed, was worth more than $35 million in taxpayer money, according to city documents.

What happened to those Mercy Health jobs?

By Tuesday at noon the city had not responded to emailed questions about what happens to the tax incentive deal now that Mercy Health is leaving. A spokeswoman for Mercy Health, Lisa Dyson, told The Enquirer via email the company has about 100 jobs in Bond Hill and would completely exit the property by March 2025. Approved just 10 years ago, the tax incentive deal had two provisions – one lasting 15 years, the other 30 years.

Dyson said Mercy Health is looking for a new home that “better suits our needs” of a smaller in-person workforce since many of its employees, post-COVID, are working remotely.

It’s unclear if the city is working to claw back any of the incentives now that the deal has collapsed, much like what happened with GE Aerospace earlier this year after it exited The Banks ahead of tax incentive agreement terms.

County information shows the Bond Hill building is owned by Chicago-based Bond Hill Funding Company and is worth $95 million. If the deal goes through, the county would pay $65 million for the structure, and Mercy would pay the remaining $30 million, according to Mercy Health and county officials. To cover costs, the county would sell other buildings it occupies.

For years, the county has looked at its building portfolio with an eye on saving money while also serving employees and clients. The Alms & Doepke building is home to Hamilton County Job and Family Services employees, who deal with welfare and the foster care and adoption system. While a beautiful historic building, parking there is difficult and expensive.

“A year ago we began looking for leased space to consolidate different departments that work better for employees and customers,” said Hamilton County Administrator Jeff Aluotto, who shared the plan with The Enquirer.

The county is now opting to buy instead of lease space because it plans to operate there going forward.

A plan gets underway

News of a possible move leaked out in May 2023 after the county requested proposals to lease office space that could accommodate at least 1,200 employees, with parking for at least that many, within seven miles of the Hamilton County Courthouse in Downtown Cincinnati. The Mercy site fits the bill.

The county had looked off-and-on for new buildings to consolidate departments since 2008.

Under the proposed plan, which must be voted on by Hamilton County commissioners, the county would pay $65 million for the Mercy Health building near the intersection of Reading Road and Tennessee Avenue, along with its furniture and technology.

Additionally, the county would sell:

  • The Alms & Doepke building at 222 Central Parkway in Over-the-Rhine, which houses Job and Family Services. The building is a former department opened by William Alms, Frederick Alms and William Doepke, sons of German immigrants, in 1865. The present building was built in 1878 and the department store closed in 1953. 
  • 250 William Howard Taft Road in Corryville, which houses Environmental Services and Public Health.
  • 264 William Howard Taft Road in Corryville, which houses Juvenile Court’s assessment center.
  • 1520 Madison Road in Walnut Hills, which houses Developmental Disability Services.
  • 5093 Kingsley Drive in Madisonville, which also houses Developmental Disability Services.

The 500 to 600 employees who work in those buildings would move to the Bond Hill site – far less than Mercy’s promised 1,050 jobs.

Cincinnati City Manager Sheryl Long did not respond to questions about what would happen to the tax incentive deal now that Mercy Health is leaving. But she praised Hamilton County officials for working to bring jobs to Bond Hill.

“We are certainly happy to see these employees stay within the city and continue contributing to our success,” Long said. “The county has committed to ensuring future best use of this critical space and I feel confident new tenants will only add to the growth and investment we’ve seen along this vibrant downtown corridor.”

Proposed move touted as cost-saving, client-friendly

The five buildings the county wants to sell have a combined deferred maintenance cost of $100 million over 20 years – $35 million more than the price of the Mercy Hill building, Aluotto said. County taxpayers will also save $400,000 annually in operations after moving into a smaller, more modern building, he added.

Benefits go beyond money, Aluotto said.

The Bond Hill site offers free parking for customers and employees. Also, its proximity to the Norwood Lateral, Interstate 71 and Interstate 75 make it easily accessible.

The commissioners will take future use into consideration when selecting a buyer for the five buildings, with an eye toward what would bring greater economic impact, Aluotto said.

The Alms & Doepke building, in particular, is expected to draw a lot of interest. The Hamilton County Auditor’s website lists its market value as $14.4 million.

Commissioners will discuss the proposed deal publicly at their 1 p.m. meeting Tuesday. A formal vote is expected in August.

Mercy Health: From catalytic investment to goodbye

Mercy Health, which in 2014 was called Catholic Health Partners, moved from Walnut Hills to the Bond Hill site, incentivized by $36.7 million in city money, a deal that was to span 30 years.

Then-Mayor John Cranley said at the time that Mercy’s move would be a “catalytic and transformative” development for Bond Hill.

The stakes were high. Landing the high-profile headquarters of Mercy Health, one of the 20 largest health systems in the United States, meant netting high-paying jobs that would prop up the city’s earnings tax proceeds.

For Mercy, the move marked the latest in a growing list of major business coups that included acquisitions, business sell-offs and restructuring.

For Bond Hill, it was a new life for the shuttered Showcase Cinemas, which sat on 30 acres. It was marketed as a place for a project designed to revitalize the neighborhood and attract other development.

The deal, as reviewed by The Enquirer, called for Mercy Health to build the $77 million building and house 1,050 jobs there, 650 of them new to Cincinnati, with an annual payroll of $85 million.

The city, in exchange, completed $900,000 in street improvements for the site, granted Mercy a 75% property tax exemption worth an estimated $17.9 million, invested $1 million in site improvements and granted a 15-year, 65% property investment reimbursement valued at $18.8 million.

So what happened?

The Enquirer asked the city of Cincinnati and Mercy Health the peak amount of jobs it had at the site, but did not get an answer.

Dyson, Mercy’s communication manager, said the company is looking for new space elsewhere in the area.

“We believe that by downsizing, we can utilize our resources more efficiently and ensure a more sustainable operating model,” Dyson said. “This will allow (Mercy Health) to invest even more resources into the compassionate, quality care our communities trust and deserve.”

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