More than a dozen business and philanthropic entities support the Southwest Ohio Regional Transit Authority’s (SORTA) offer to develop a private-public partnership to fund the streetcar’s operating costs, Eric Avner, vice president of the Haile Foundation, told CityBeat Dec. 17.
If enough private contributors agree to finance the streetcar’s operating costs, they could address a major concern raised by streetcar opponents and provide the clearest path forward for the $132.8 million streetcar project since the new mayor and City Council took office early this month.
The Haile Foundation already contributed $1 million to an operating reserve fund for the streetcar, but Avner says that his organization’s donation is only the beginning, given all the other entities interested in moving the streetcar forward.
Avner says 14 other business and philanthropic leaders supported the SORTA concept in person or through writing in time for SORTA’s board of trustees meeting on Dec.
In a letter to SORTA, the Haile Foundation offers to recruit and financially establish a commission of community leaders that will work with the agency to create an operating and revenue plan that will require no funds from the city of Cincinnati. The letter also promises to leverage the initial $1 million investment to secure additional contributors and build a fund that would pay for a full year of operating costs.
But Mayor John Cranley called SORTA’s offer “woefully insufficient.” Cranley said the city will need financial assurances far above the Haile Foundation’s $1 million to cover $3.4-$4.5 million in annual operating costs for the streetcar over 30 years.
Councilman Kevin Flynn, one of two potential swing votes on City Council, agreed with Cranley’s assessment, but he said the proposal could become a viable option if the city receives more assurances from SORTA and private entities that show the groups are serious in their offer.
Cranley and Flynn said on Dec. 12 that operating costs must be written off the city’s budget if the project is to move forward.
City Council expects to vote Dec. 19 on whether to restart the streetcar project. Council paused the project on Dec. 4 while the city audits the project’s completion, cancellation and operating costs.