Cincinnati’s long-discussed streetcar system is a bit closer to reality today after City Council approved spending $2.58 million on the project.
The money will be used for planning and design work for the system. Its first phase would be a loop through downtown and Over-the-Rhine, with a later segment built to the uptown area near the University of Cincinnati and local hospitals.
The company in charge of building Cincinnati's streetcars says the city would incur substantial costs if it cancels the streetcar project after it's already gone through some construction and design work.
The Nov. 30 letter from CAF USA Vice President Virginia Verdeja to former Mayor Mark Mallory arrived just one day before Mayor John Cranley, who opposes the streetcar project, and an anti-streetcar majority were sworn in.
"CAF will have to recover all the incurred expenses as well as all the additional cost of cancelling the contract, which would be substantial too," Verdeja writes in the letter.
The letter explains that, on top of the sunk expenses on design work, cancellation would require CAF to pull back on various established deals with subcontractors, which would spur further costs.
For streetcar supporters, the letter renews fears of litigation that could crop up if the project were canceled and contractors decided to pursue their full payday. Those legal costs would fall on the already-strained operating budget that pays for day-to-day services like police and firefighters instead of the capital budget that finances big capital projects like the streetcar, according to city spokesperson Meg Olberding.
On Nov. 21, Streetcar Project Executive John Deatrick warned the costs of canceling the $132.8 million streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grant money that would be lost if the project were terminated.
Earlier on Sunday, hundreds of streetcar supporters rallied in Washington Park and walked the planned streetcar route in support of the project. They're threatening a referendum if the new City Council moves to pause or cancel the project.
City Council plans to vote on pausing the project on Monday. Because of threats from the federal government that a mere delay could lead to the loss of federal grants, streetcar supporters claim a pause would equate to cancellation.
Read the full letter below:
Updated at 6:13 p.m. with the PDF of the letter.
Organizers of a local anti-gang and violence reduction program will hold an open house Thursday so the community can become reacquainted with its street advocate team.
The Cincinnati Initiative to Reduce Violence (CIRV) is holding the open house and resource fair from 10 a.m. to 5 p.m. at its offices. The location is 19 W. Elder St. in Over-the-Rhine.
Local Democrats are counting on a planned statewide referendum on Senate Bill No. 5 to boost Democratic voter turnout this fall, and help restore the party's majority on Cincinnati City Council.
That was the message preached Thursday night by party leaders — along with Mayor Mark Mallory and three of the four Democratic incumbents — during a meeting of the Cincinnati Democratic Committee (CDC).
Cincinnati council members and community leaders today explained and defended plans to use the parking lease to fund a disparity study that would gauge whether the city should change its contracting policies to favorably target minority- and women-owned businesses.
But before City Council unanimously passed the motion at today's meeting, it was amended to allow the city administration to find alternate sources of funding.
Since the city dismantled its last minority- and women-owned business program in 1999, contract participation rates for minority-owned businesses have plummeted, while rates for women-owned businesses have remained relatively flat.
But because of a 1989 U.S. Supreme Court ruling, governments must conduct a study to prove there's a race- or gender-based disparity before policies can be adjusted to favor such groups.
Cincinnati has not taken up a disparity study since 2002. That study found evidence of disparities but ultimately recommended race- and gender-neutral policies to avoid legal uncertainty that surrounded the issue at the time.
"This is an opportunity to respond to a complaint and concern that has been around for as long as I can remember," Councilman Wendell Young said.
City officials claim they couldn't conduct another study until the administration finished implementing recommendations from OPEN Cincinnati, a task force established in 2009 after Mayor Mark Mallory and his administration were criticized for neglecting the city's small business program.
But the holdup has also been brought on by the study's cost, which city officials currently estimate between $500,000 and $1.5 million. Some critics argue the money would be better spent elsewhere.
Vice Mayor Roxanne Qualls, who's running for mayor this year, defended the cost by explaining a disparity study can potentially lead to economic development by lifting minority groups, who currently face unemployment rates higher than white Cincinnati residents. She said it's on the city to ensure everyone, including women and minorities, benefit from Cincinnati's economic growth.
Other critics, particularly mayoral candidate John Cranley, have criticized the motion's suggestion for funding. The motion asks the city administration to fund the study with part of the upfront money that will come from leasing the city's parking meters, lots and garages to the Greater Cincinnati Port Authority, but it does allow the city administration to find other funding options if possible.
Cranley, who supports conducting a disparity study but opposes the parking lease, says the money should come from other, unnamed sources because parking funds are currently being held up while the city hashes out legal uncertainty surrounding the lease and the Port Authority works out contracts with private operators that will manage Cincinnati's parking assets.
In response to those concerns, Qualls said that "money doesn't grow on trees" and Council has to make do with what it has.
Councilman Chris Seelbach voted against the parking lease, but he supports using parking funds for the disparity study. He says that, while he may have voted against the lease, the vote is done and the money is there.
The amended motion was unanimously passed by City Council today. It asks the city administration to present a budget and timetable for the study at the Budget and Finance Committee's first October meeting.
Updated at 3:18 p.m. with results of City Council meeting.
This week's issue of CityBeat features a lengthy letter to the editor by Cincinnati Vice Mayor Roxanne Qualls explaining why she opposes Ohio Senate Bill No. 5, which limited collective bargaining rights for public-sector labor unions including police and firefighters.
Despite promising to
move on after he failed to cancel the $132.8 million streetcar
project, Mayor John Cranley continues criticizing the
project in interviews and social media.
Most recently, Cranley appeared on Local 12’s Newsmakers program and threatened
to eventually replace the Southwest Ohio Regional Transit Authority (SORTA)
board, which manages local Metro bus services, in response to board members’
defunct offer to take up streetcar operating costs. (City Council sets SORTA
appointments, not the mayor.)
“The fact is they were
willing to cannibalize bus service,” Cranley said,
contrary to SORTA’s insistence that their offer would not have affected bus
services. “I just felt that was a huge violation of what SORTA is supposed to
be about and what Metro is supposed to be about and what public transportation
is supposed to be about.”
Throughout the 24-minute
interview, Cranley referenced the
streetcar project when discussing the city’s parking meters and other subjects
— a continuation of repetitive anti-streetcar tactics Cranley
deployed on the campaign trail and in mayoral debates against former Vice Mayor
“I think the project is
wasteful and not worth the investment,” Cranley said
when asked about the project. “I think we would have been better off making the
hard decision to cut bait.”
Still, Cranley later added, “Obviously, since the supermajority of
council went against my wishes, I have to respect the process. So I’m not going
to try to sabotage the streetcar.”
The interview also
follows comments on social media. After the former head of the Cincinnati Art
Museum criticized the streetcar, Cranley tweeted on Dec. 27, “(N)ow some Orwellian commentators
will say art director not ‘progressive.’”
The continued anti-streetcar rhetoric comes despite promises to move on that Cranley made after Councilman Kevin Flynn announced he would provide the final vote needed to veto-proof City Council’s decision to continue the streetcar project.
“As I tell my son when he doesn’t get his way, it’s time to move on,” Cranley
said on Dec. 19.
heated rhetoric is nothing new in his campaign against the streetcar project.
After the Nov. 5
election, Cranley told The Cincinnati Enquirer
the streetcar debate “is over.” Cranley’s comments
marked a high level of confidence after voters elected a mayor and council
supermajority that seemingly opposed the streetcar project, but his statement
to The Enquirer proved to be wrong after Council Members Flynn, David
Mann and P.G. Sittenfeld decided to continue the
Cranley also called city officials “incompetent” after
they projected that canceling the streetcar project would cost nearly as much as
completing it. Once again, Cranley’s comments proved
to be wrong — an independent audit found city officials were largely correct in
their assessment — but still showed the level of confident, heated rhetoric
that follows the mayor’s campaign against the streetcar project.
At the very least, Cranley’s rhetoric proves that while the policy debate over the streetcar is over for now, the public discussion is not. The question is whether the messaging will work as the project moves forward and the streetcar becomes a reality of Cincinnati.