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March 6th, 2013 By German Lopez | News | Posted In: News, Economy, Privatization, Parking, Budget

Council Approves Parking Plan, Judge Orders Temporary Halt

Injunction puts agreement to lease parking assets on hold

downtown groceryRendition of proposed downtown grocery store and luxury apartment tower. - Image: Provided

In a 5-4 vote today, City Council approved a plan to lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority to help balance deficits for the next two fiscal years and fund development projects in Downtown, but the plan is now being held up by a Hamilton County judge's temporary restraining order (TRO).

The plan was approved with an emergency clause, which means it is not subject to referendum, according to City Solicitor John Curp. Councilman Chris Seelbach joined the parking plan’s five supporters in approving the emergency clause, which is meant to expedite the plan’s implementation by removing a 30-day waiting period.

Shortly after the parking plan was approved by City Council, Judge Robert Winkler signed a TRO that will halt its implementation for at least one week. The judge’s action will provide enough time to process a lawsuit filed by Curt Hartman, an attorney who represents the Coalition Opposed to Additional Spending and Taxes (COAST), on behalf of local activists who oppose the plan and argue it should be subject to referendum.

Mayor Mark Mallory says the emergency clause was passed to speed up the plan’s implementation in time for the budget that will begin July 1, not to suppress voters: “I don't think that any member of council has ever voted for an emergency clause in an effort to keep voters from being able to reverse the decision that the council is making, so I take exception with that characterization.”

The parking plan got its required fifth vote, up from a 4-3 vote in the Budget and Finance Committee Monday, from Councilwoman Laure Quinlivan, who abstained from voting in the committee meeting because she said she was concerned about the city’s long-term fiscal outlook.

She says her concerns were eased after she read the leasing agreement and listened to a presentation from City Manager Milton Dohoney Jr. that gave City Council a few options for fixing the city’s structural deficits.

The parking plan’s other supporters were council members Roxanne Qualls, Yvette Simpson, Cecil Thomas and Wendell Young. Council members Seelbach, P.G. Sittenfeld, Chris Smitherman and Charlie Winburn voted against the plan.

The plan, which CityBeat previously covered (“Parking Stimulus,” issue of Feb. 27), will lease the city’s parking assets to fund development projects, including a 30-story tower and a downtown grocery store, and help balance the deficit for the next two fiscal years. The deal will produce a $92 million upfront payment, and the city projects that additional annual installments will generate more than $263 million throughout the lease’s duration.

Opponents say they are concerned the plan will give up too much control of the city’s parking meters and garages, which they say could lead to spikes in parking rates.

Under the initial plan, downtown rates will remain at $2 an hour and neighborhood rates will be hiked to 75 cents. Afterward, parking meter rates will be set to increase annually by 3 percent or the rate of inflation on a compounded basis, with actual increases coming in at 25-cents-an-hour increments. That should translate to 25-cent increases every three years for downtown and every six years for neighborhoods, according to Meg Olberding, city spokesperson.

The city will be able to bypass the so-called “cap” on parking meter rate increases through a unanimous vote from a five-person advisory committee, approval from the city manager and a final nod from the Port Authority. The process, which begins with an advisory committee that will include four members appointed by the Port Authority and one selected by the city manager, will allow the city to raise and lower rates to adjust for changing economic needs, says Olberding.

Opponents also say the money from the parking plan is being used too quickly, which does little to alleviate the city’s structural deficits.

Dohoney previously argued the plan will help reduce the deficit by generating recurring revenues through long-term economic growth and development.

“The situation that we’re in requires that we accelerate growth right now, not later,” he said Monday. “If we do not do that, then we’re going to have further negative ramifications to deal with.”

With the lease agreement approved, it is now up to the Port Authority to develop and publicize the bond documents that will further detail the framework of the parking plan.

Earlier in the same meeting, City Council unanimously passed a resolution asking the federal government to take up comprehensive immigration reform.

Update: This story was updated to reflect Judge Robert Winkler's actions.

 
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