WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
September 26th, 2012 By Andy Brownfield | News | Posted In: City Council, Economy, Government, Mayor, News, Streetcar

Council Approves Measures Shifting $29 Million for Streetcar

Measures front Duke $15 million, add utility responsibility to move lines to city code

streetcar
Cincinnati City Council on Wednesday approved a set of measures to alter funding of the $110 million streetcar project in order avoid further delaying its 2015 opening.

The three measures set up $15 million to front to Duke Energy to move utility lines out of the proposed path; changes the source of funding to repay some $25 million in bonds used to pay for the streetcar; sells $14 million in bonds for streetcar improvements; and changes the municipal code to clarify that it is the responsibility of a utility to relocate its structures.

The $15 million comes from the $37 million sale of city-owned land near the former Blue Ash Airport.

Council voted 6-3 to approve the front money, improvement bonds and bond repayment, a vote that largely mirrored a Monday Budget and Finance Committee vote. Councilman Chris Smitherman was the sole “no” vote on the ordinance to change the municipal code.

Councilmembers Cecil Thomas, Wendell Young, Roxanne Qualls, Laure Quinlivan, Chris Seelbach and Yvette Simpson voted to pass funding, while Councilmembers Smitherman, P.G.

Sittenfeld and Charles Winburn voted against.

“My concern with all of these votes … in particular the Blue Ash Airport dollars, these were promises that you made to the neighborhoods and I don’t have the confidence that the legal battle against Duke Energy is going to yield a 100 percent win for the city of Cincinnati, so there’s no assurance that these dollars are going to come back,” said Councilman Chris Smitherman, one of the most vocal opponents of the streetcar. 

“I want to be clear that it’s something that I don’t support.”

The $15 million would be fronted to Duke to move its lines while the city and utility work out who is responsible for funding the move. 

Duke estimates the full cost at $18 million and argues that the lines would not have to be moved if the streetcar wasn’t being built. The city maintains that it has always been the responsibility of utilities to move or upgrade their structures — which the third measure clarified in the municipal code. If the city loses a legal battle against Duke, it will not recoup the $15 million.

The second proposal switches the source of funding for streetcar bonds from money coming into city coffers from southern downtown and the riverfront area to a 1995 fund set up to collect service payments from the Westin/Star, Hyatt and Saks. The measure wouldn't use any additional new money for the streetcar.

That downtown area wasn’t bringing in as much cash as expected but the city hopes to repay the other fund once the downtown district — which includes the Banks and the casino —  rebounds.

 
 
 
 
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