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.
“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.