WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
September 20th, 2012 By Andy Brownfield | News | Posted In: Budget, Casino, City Council, News, Public Transit, Streetcar

Council to Move Funds to Avoid Further Streetcar Delays

Project would still open in 2015

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Cincinnati City Council plans to move $29 million in funds to avoid further delays for the streetcar project, but the city is still looking at a 2015 opening date. City officials announced Wednesday that a council committee will vote Monday on three pieces of legislation to keep the $110 million project in line with the recently announced delayed opening.

One measure would front $15 million to help Duke Energy move underground utility lines from the path of the proposed streetcar route. That money comes from the recent $37 million sale of land near the former Blue Ash Airport. 

The city thinks it will get this money back once a dispute with Duke is resolved.

The city contends that Duke is responsible for moving the lines, which the utility estimates will cost $18.7 million. Duke counters that the lines only have to be moved because of the streetcar construction, so the city should foot the bill.

“We’re fronting money for the Duke work until we can work out who pays for it with Duke,” city spokeswoman Meg Oldberding said. “It’s to keep the project on time and on budget. Delays would escalate the cost.”

Another ordinance would change the municipal code to “confirm the city’s existing rights” and clarify that utilities pay for the cost of relocating facilities unless otherwise negotiated, according to a news release.

Oldberding said Cincinnati has always maintained that it is the utility’s responsibility to relocate their facilities, so it is not a change in the city’s position.

The final ordinance would change the funding source that is repaying $25 million in bonds sold as part of the original plan to fund the streetcar. 

Those bonds were originally being repaid with money coming into city coffers from southern downtown and the riverfront area. 

That area wasn’t bringing in as much cash as expected, so the ordinance would have $14 million of the bonds repaid from a 1995 fund set up to collect service payments from the Westin/Star, Hyatt and Saks.

Oldberding said once the downtown district rebounds — it includes the Banks and the casino — it would repay the other fund.

The ordinances would not add to the project’s cost. Construction is scheduled to begin early next year.

 
 
 
 
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