Although it has already been explicitly stated in two letters from the federal government, Federal Transit Administration (FTA) Chief Counsel Dorval Carter on Monday reiterated that if Cincinnati were to unravel the $132.8 million streetcar project, the city would lose $40.9 million in federal grants and another $4 million in federal funds would be transferred to the state government, which could appropriate the money to any project in Ohio.
The clarification is necessary because Mayor-elect John Cranley and a majority of the incoming City Council are looking into pausing and potentially canceling the streetcar project once they take office in December. Cranley says he will lobby the federal government to reallocate the federal funds, even though the federal government has repeatedly insisted it’s not going to happen.
Carter joined City Council’s Budget and Finance Committee on the phone on Monday to walk council members through the legal technicalities involved in cancellation and how the federal government would react to such circumstances.
According to Carter, merely delaying the project at this point would break the city’s agreement with the federal government and lead the federal government to restrict the federal funds, ask the city to repay the money it already spent or terminate the deal altogether.
Still, Carter said cancellation might not hurt the city’s chances, at least from a legal perspective, of obtaining federal funds for other projects.
“It will not preclude you from pursuing other projects,” he said. “You would just have to pursue those on their own merits.”
But Carter agreed with Vice Mayor Roxanne Qualls that the city’s credibility could be weakened if the streetcar project were canceled.
President Barack Obama’s administration has prioritized light rail projects like the streetcar, according to Carter, so the reclaimed federal money would likely go to other cities pursuing similarly ambitious transit projects.
At a press conference following the council meeting, Cranley appeared unfazed by the news.
“If we have to, we’ll give the money back,” he said.
Although much noise was made about the council meeting, there wasn’t much news in the way of substance. The federal government already outlined the cancellation costs in separate letters sent to Mayor Mark Mallory in June and earlier in November.
New York City : $2.50 upon entry, plus $0.40 for each 1/5 mile, plus several applicable surcharges
Chicago : $2.25 upon entry (first 1/9 mile), plus $0.20 for each 1/9 mile, plus applicable surcharges
Los Angeles: $2.85 upon entry (first 1/9 mile) plus $0.30 for each 1/9 mile, plus applicable surcharges.
Portland : $2.50 upon entry, $2.50 per additional mile, plus applicable surcharges
Atlanta: $2.50 upon entry, $2 per additional mile
* Keep in mind it's customary everywhere to tip your cab driver 15 to 20 percent.
UPDATE 11-8-12: An aide to Vice Mayor Roxanne Qualls tells CityBeat that the $7 million loan will only go toward moving two of the shelters: the Drop Inn Center and a new women's shelter to be operated by the YWCA. Because the City Gospel Mission requires a religious component to is outreach to the homeless, it cannot receive federal funding. The original story follows below.
City Council on Wednesday signed off on a plan to apply for federal loans to help move three Cincinnati homeless shelters to new locations.
Council members voted with all but one approving the application for $37 million in loans, $7 million of which would move the Washington Park-area shelters.
If the loan is approved, the City Gospel Mission would move to the West End, a new women’s shelter would be build in Mount Auburn and the Drop Inn Center would move to a yet-undetermined location.
Cincinnati had pledged $10 million toward relocating the shelters. The loan would be paid back at $532,000 a year for the next 20 years.
Councilman Chris Smitherman was the sole dissenting voice. He said he supports the homeless, but he is wary of the risks of the loan and the city’s ability to pay it back.
Councilman Chris Seelbach, who said he moved to Over-the-Rhine shortly after the 2001 riots, voted to approve applying for the loan, but also voiced some concern.
“The reason I moved is because I loved it; I fell in love with the diversity of the neighborhood,” he said, noting income diversity as well as racial and ethnic.
“I would hope that we could find a location for the Drop that is in Over-the-Rhine and there isn’t a continued effort to push low income people out of Over-the-Rhine.”
Josh Spring, executive director of the Greater Cincinnati Homeless Coalition, said the shelters the city has now are perfectly adequate and the money could be spent better developing affordable housing and creating jobs to help eliminate homelessness.
“Historically a majority of shelters started between 1982 and 1990 because in that era we cut dollars to housing and employment,” Spring said.
“Shelters were never created to end homelessness. Shelters were created for people to have a safe place once everything else had failed them. We shouldn’t let everything else fail them.”
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.
As CityBeat did in the 2007 and 2009 election cycles, we’ve once again sent a questionnaire to the non-incumbent Cincinnati City Council candidates to get their reactions on a broad range of issues.
Nine of the 14 non-incumbents chose to answer our questions. Others either didn’t respond or couldn’t meet the deadline.
During the next few weeks, we will print the responses from the non-incumbents to a different topic each time.
Today’s question is, “With the city facing a potential $33 million deficit next year, what specific cuts and/or revenue enhancements would you propose or support to eliminate the shortfall?”
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.
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).