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July 17th, 2013 By German Lopez | News | Posted In: News, Parking, Courts

Parking Lease Facing Another Legal Challenge

Conservative group claims city manager exceeded authority with changes

coast_onlineCOAST: "You're sued." - Illustration: Julie Hill

In a letter to the city solicitor, a conservative organization is threatening more legal action to stop the city’s plans to lease its parking meters, lots and garages to the Greater Cincinnati Port Authority.

The Coalition Opposed to Additional Spending and Taxes (COAST) claims the city manager made “significant and material” changes to the lease agreement after City Council approved the deal in March. That, the letter states, exceeds the city manager’s authority.

The two changes in question: First, the city changed the original June 30 deadline for issuing bonds that will finance the deal to a less specific 90-day period that will kick in once the agreement is in full effect. Second, the city added sections that allow the Port to review and potentially terminate the lease within 75 days.

The changes were made after another legal challenge delayed the leases implementation.

The letter asks City Solicitor John Curp to review the allegations and sue the city.

If he doesn’t, COAST would gain the legal standing necessary under Ohio law to sue the city by itself.

“The law requires that before a lawyer can sue the city and ask taxpayers to pay his fees he must send a letter of this type,” Curp explained in an email.

Curp also wrote that the city will review the allegations and respond within a month.

“Today’s letter is an attempt to comply with part of the legal process that would allow the authors to claim attorneys fees from taxpayers,” he wrote. “The Law Department will review the issues raised, attempt to engage the authors constructively and respond appropriately. The policy of the Law Department is to defend aggressively against claims from lawyers that seek taxpayers dollars to fund their litigation against the City of Cincinnati.”

COAST is pursuing the legal challenge as a longtime critic of the parking lease. The organization supported the previous lawsuit against the lease, which an appeals court struck down.

The letter comes in the middle of another controversy over a June 20 memo that the city administration kept from the public, Port Authority and City Council for three-plus weeks, until council members and media outlets enquired about it. The memo suggested the city is getting a bad deal from the lease agreement. Port and city officials argue the memo made technical errors and used outdated information.

Under the parking lease, the city will receive a $92 million lump sum and at least $3 million in annual payments, according to city estimates.

Supporters of the parking lease argue it’s needed to raise funds for development projects and modernize the city’s parking services.

Opponents say the lease gives up too much control over the city’s parking meters, lots and garages and will hurt businesses downtown by causing meter rates and operation hours to go up.

 
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