Some members of city council agreed that the city needs to take a hard look at the way it inspects projects done with taxpayer money, but they took no action during a special joint committee meeting Thursday to discuss allegations that workers were being underpaid at the University Square development in Clifton.
Council members Laure Quinlivan, Cecil Thomas and Wendell Young presented a video investigation they conducted, which included interviews with workers on the project who claim they were being taken advantage of by the University Square developers.
Under Ohio and Cincinnati law, workers on projects funded by taxpayers must be paid a so-called “prevailing wage” (the same as a unionized worker) and be given benefits.
In Cincinnati, that wage is $23.17 an hour for the carpentry work done by the workers interviewed for the video.
The workers in the video claimed they were paid $500 for working a 60-hour week.
“Five-hundred dollars a week to me when you don’t have a job, that’s a lot,” said Garrick Foxx, a construction worker on the project.
“But actually when you average it out, it’s not. Like to the hour-wise it’s probably like 9-something, so like I could actually make that working at McDonalds.”
The University Square developer — a collaboration between Towne Properties and Al. Neyer, Inc. — is building a complex with a parking garage, residential units and retail space.
The City of Cincinnati has $21 million invested in the parking garage. The State of Ohio recently ruled that the prevailing wage provisions apply only workers constructing the garage that the city has money invested in.
Arn Bortz with Towne Properties said the controversy was ginned up by unions and it hasn’t been proven that workers are being underpaid.
“All of this was started by the unions themselves because they became very unhappy when the State of Ohio said a sizeable portion of our project was not subject to prevailing wage,” Bortz said. “They tried then to discredit and intimidate anyone who is on the other side of the table.”
Bortz said he agreed to pay a prevailing wage even to workers who worked on parts of the project not subject to the law. He said he cuts a check to the subcontractors based on that agreement.
“Whether any of those subcontractors might have been unfair to the workers, we do not know,” Bortz said. “If they were, they should be made to be fair.”
Deputy City Solicitor Aaron Herzig said if the contract required a particular wage be paid and it wasn’t, the city can bring a breach of contract action against the developers. But to start an investigation, a complaint must first be made.
The council members asked that their investigation be considered a formal complaint.
In the ongoing saga of Western & Southern vs. the Anna Louise Inn, there have been several court cases and zoning rulings, most of which have been appealed by one side or the other. Today it was the Cincinnati Zoning Board of Appeals’ turn to rule on something that’s already been ruled on, and it went in favor of the Anna Louise Inn.
The Board upheld a certificate of appropriateness for the Anna Louise Inn’s planned renovation, which essentially also upholds the Historic Conservation Board’s right to issue a conditional use permit — at least for now. Western & Southern is expected to appeal that permit, granted by the Conservation Board Aug. 27, before its 30-day window to do so expires.
Before this series of appeals can play out, the 1st District Court of Appeals will hear arguments in the Anna Louise Inn’s appeal of Judge Norbert Nadel’s May 27 ruling, which set in motion the Inn’s attempts to secure zoning approval from the Historical Conservation Board in the first place.
(All of this could have been avoided if Western & Southern would have purchased the Anna Louise Inn when it had the chance. CityBeat previously reported the details of Western & Southern’s failure to purchase the Inn and the company’s subsequent attempts to force the Inn out of the neighborhood here.)
About 40 people attended today’s hearing, including City Councilman Wendell Young, who said he supports the Anna Louise Inn but was not there to testify on its behalf.
By upholding the certificate of appropriateness, the ruling keeps alive a conditional use permit that could allow the Anna Louise Inn to move forward with a $13 million renovation of its historic building, once the expected appeals process plays out. (CityBeat covered the Aug. 27 Historical Conservation Board hearing here.)
The Board heard brief arguments from lawyers for both Western & Southern and Cincinnati Union Bethel and then entered executive session for about 15 minutes before ruling in favor of the Anna Louise Inn.
Western & Southern lawyer Francis Barrett, who is the brother of Western & Southern CEO John Barrett and a member of the University of Cincinnati Board of Trustees, told CityBeat after the meeting that he disagreed with the board’s finding because a designed expansion of the building’s fifth floor has not yet had its use approved.
“With this case, the Historical Conservation Board is basically approving for the certificate of appropriateness the design of the building,” Barrett said. “But the design included an expansion of the fifth floor, and until that use issue is resolved the code reads, in my opinion, you can’t approve the design because the use hasn’t been approved.”
Barrett during the hearing read a written statement to the board arguing two main points: that the Historic Conservation Board didn’t have the jurisdiction to grant the certificate of appropriateness; and even if it did, Barrett argued, the physical expansion planned makes it a non-conforming use which wouldn’t qualify for the building permit.
Cincinnati Union Bethel attorney Tim Burke told the Board that the Anna Louise Inn is not seeking a permit for non-conforming use because it already received a conditional use permit from the Historic Conservation Board.
“Western & Southern is doing everything it can to block this renovation from happening,” Burke told the Board.
At the Historic Conservation Board hearing last month
Western & Southern tried paint a picture of the Anna Louise Inn’s
residents contributing to crime in the area because a condition of the
conditional use permit is that the building’s use will not be
detrimental to public health and safety or negatively affect property
values in the neighborhood. But the Board granted the permit, stating
that the Anna Louise Inn will not be detrimental to public health and
safety or harmful to nearby properties in the neighborhood and that the
Board found no direct evidence connecting residents of the Anna Louise
Inn to criminal activity in the neighborhood. Western & Southern has until next week to appeal that ruling.
It’s no secret that Cintas Corp. CEO Scott Farmer showers part of his wealth on Republican political candidates. Over the years, he has thrown money at George W. Bush, Rob Portman and Steve Chabot. This year, he has given $52,500 to the Mitt Romney campaign. His wife Mary has ponied up $22,500.
But votes, not money, win elections, and the Farmers’ two meager votes don’t amount to much. So what better way to help the Romney effort than to muster the votes of the Cintas-employed masses, as Scott Farmer did in an Oct. 19 letter e-mailed to his 30,000 or so workers, or “partners” as he likes to call them.
Farmer, the son of Cintas founder Richard Farmer, takes issue with Obamacare, the “potential of government to increase current tax rates” and what he considers business-impeding “over-regulation” by federal agencies. All three are straight from the Romney playbook. Farmer, though, insists that the company doesn’t “endorse one candidate over another.” Cintas spokeswoman Heather Maley said the letter was sent to help employees “make an informed decision.”
“In today’s political climate, the issues can certainly be confusing and even overwhelming,” Maley said in a statement. “We believe our partners want to be informed about issues that affect our company and are interested to know where the company stands on these issues.”
One would think that after Cintas’ shabby treatment at the hands of the Bush administration, Farmer would welcome a second Obama term. In 2008, Cintas agreed to pay a $2.8 million fine to settle federal Occupational Safety & Health Administration charges that it was willfully negligent in the death of a Cintas worker who fell into an industrial dryer while clearing a tangle of wet laundry at a company plant in Tulsa, Okla. In 2005, Cintas had to fend off U.S. Equal Employment Opportunity Commission claims that it was biased against women in filling sales jobs. The claims were dismissed in court. And in 2004, the Inspector General for the U.S. Postal Service investigated whether Cintas tacked millions of dollars in “environmental fees” on uniforms, towels and mats it cleaned for the postal service under a 10-year, $200 million contract. Cintas halted the practice.
One person who doesn’t buy into Cintas’ professed ambivalence about its workers’ voting choices is Caleb Faux, executive director of the Hamilton County Democratic Party. Cintas is based in Mason, and many of its workers live and vote in Hamilton County. He sees the Farmer letter as a brazen reminder to workers of the source of their livelihood.
“I think that it’s disgraceful that any employer would use the power implicit in the employer-employee relationship to coerce people while they are making their voting decisions,” Faux said.
The City of Cincinnati today released the final draft for its plan to “re-establish (Cincinnati) as a model of a thriving urban city.” Plan Cincinnati, which will be taken up in a public hearing on Aug. 30 at 6 p.m., is the first master plan for Cincinnati since 1980.
The primary goal behind the plan is to transition the city away from a model that emphasizes suburban living back to a more urban model. The plan’s report justifies the shift by attributing it to a new societal need.
“Dissatisfied, American society is now beginning to reverse the trend (of suburban living) with the hope of returning to an environment that is more economically and environmentally sustainable, less dependent on the automobile, closer in scale to human form, and ultimately, truly more livable,” the report says.
The plan will make this transition with six guiding principles: Provide more transportation choices, promote equitable, affordable housing, enhance economic competitiveness, support existing communities, coordinate and leverage federal policies and investment, and value communities and neighborhoods.
The vague principles are outlined in greater detail in the 228-page report, which can be read in full here.
One of the key parts of the plan is its expansion of options for non-automotive travel. The plan promises to focus more work on bicycle paths, support a Bicycle and Pedestrian Program and build links between bicycle systems to allow more cycling through the city. The city will also “design and construct the Ohio River Bike Trail through Cincinnati” and make the city safer for cyclists by making roads smoother and cleaner.
The plan also encourages other transportation programs. Establishing better coordination with Metro buses, building intercity rail systems and integrating the new streetcar into a greater transportation model are a few of the many suggestions in the plan. With these systems, the plan hopes to “facilitate economic development opportunities.”
Beyond transportation, the plan also seeks to establish environmentally friendly programs. Some of the suggestions are developing a green construction incentive program, implementing smart grid networks and reforming the LEED tax abatement program to include additional energy efficient rating systems.
However, the plan is missing one important detail: cost. The report says Plan Cincinnati will be reviewed every year using the new Priority-Driven Budgeting process, but no estimates for cost are currently available. Katherine Keough-Jurs, senior city planner, explained why in an email: “That is not something that we provide. We have found over the years that providing cost estimates in long-range plans is problematic and the estimates can be misleading. Also, some of the Action Steps listed are not necessarily things that would have a monetary cost associated.”
A group of eight former employees from The Cincinnati Enquirer filed an amended lawsuit Oct. 19 accusing the Gannett-owned newspaper of age discrimination. The lawsuit, which was originally filed by Joseph Fenton and Catherine Reutter in 2011, was amended on Oct. 19 to include six more plaintiffs.
The origins of the complaint, which also alleges intentional infliction of emotional distress, began
when Fenton was allegedly told he was performing poorly at The Enquirer.
On November 2010, Fenton was “suddenly informed” by his supervisor,
Julie Engebrecht, that his performance was unsatisfactory. This was
despite Engebrecht allegedly acknowledging that Fenton was a “great
editor” in the same conversation.
From that point, Fenton allegedly tried to smooth problems
over. Working through human resources, Fenton arranged weekly meetings
with Engebrecht to gather feedback and improve his work, according to
the lawsuit. At the end of every meeting, Fenton and Engebrecht
allegedly worked out goals and Fenton would finish the meetings by asking, “Are we
good?” Allegedly, Engebrecht replied by assuring Fenton “things were in
Despite the meetings, Fenton was fired on Feb. 18, 2011. He was 57, and he had worked for Gannett (Correction: Previously said The Enquirer) for 14 years, according to the lawsuit. The complaint also says Fenton had no previous record of discipline, but Engebrecht had allegedly referred to Fenton as a “dinosaur” and “curmudgeon.”
When he was terminated, at least seven other individuals — all “near or over the age of 50” — at The Enquirer were laid off as well, according to the lawsuit. Reutter, a co-filer of the lawsuit, was among those terminated. Three of the employees terminated worked for the online department, and they were allegedly replaced by “an employee in his 20s who was hired in January 2011.”
This is all despite Fenton having a history of “high-quality work” at The Enquirer,
according to the complaint: “Two (of his) projects were nominated for
the Pulitzer Prize. Upon information and belief, these (two) projects
were the only (two) nominated for the Pulitzer Prize from The Cincinnati Enquirer
during Fenton’s tenure there.” Fenton also directed projects that won
Best of Gannett awards in 2006 and 2008 in a competition with the
company’s 83 other U.S. newspapers, according to the lawsuit.
The lawsuit goes on to make similar claims for the other former employees involved in the lawsuit. They were all 45 years old or older when terminated, and most claim younger, less qualified employees replaced them.
However, in the factual allegations for Reutter, it’s explained a 49-year-old replaced some of the employees. The lawsuit notes the employee is younger than Reutter, but that employee is actually four years older than the youngest plaintiff was when terminated.
The complaint claims Reutter was told in her exit interview “seniority was a factor in the choice of who was terminated.”
As county and state officials move to investigate and potentially prosecute voter fraud cases, local groups are pushing back, warning that the investigations could cause a chilling effect among voters.
Vice Mayor Roxanne Qualls became the latest to speak out in a letter to Hamilton County Prosecutor Joe Deters and Ohio Secretary of State Jon Husted.
“The current legal investigations perpetuate the idea that voter fraud is widespread, when it’s not true,” she wrote. “We need to work together to give citizens the confidence that the election process is fair and accessible to those who have followed the law and pre-determined process. When citizens are confused about the process of voting they are intimidated from exercising their full rights to vote, which erodes confidence in and the integrity of our democracy.”
The American Civil Liberties Union of Ohio (ACLU) and League of Women Voters of Ohio sent similar letters to Husted in the past few weeks, echoing fears that the investigations will intimidate voters into staying out of future elections.
The controversy surrounds 39 “double voter” cases recently sent to the county prosecutor by the Hamilton County Board of Elections. In most of the cases, the voters in question sent in an absentee ballot prior to Election Day then voted on Election Day through a provisional ballot, which are given to voters when there’s questions about eligibility. Even though the voters technically voted twice, their votes were only counted once.
The letters from Qualls and the League of Women Voters claim the cases were sent to the county prosecutor based on a narrow interpretation of state law and other sections of election law back the voters’ actions.
The letters reference Ohio Revised Code Section 3509.09(B)(2),
which says, “If a registered elector appears to vote in that precinct
and that elector has requested an absent voter's ballot for that
election and the director has received a sealed identification envelope
purporting to contain that elector's voted absent voter's ballots for
that election, the elector shall be permitted to cast a provisional
ballot under section 3505.181 of the Revised Code in that precinct on the day of that election.” The law goes on to clarify only one of the votes should be counted.
Husted broke a tie vote in the Hamilton County Board of Elections on May 31, siding with the Republicans on the board who wanted to send the case to the county prosecutor.
Alex Triantafilou, an elections board member and chairman of the Hamilton County Republican Party, says Republicans just want an investigation.
“I think anytime a person casts two ballots we ought to ask why,” Triantafilou says. “This is not to prejudge any of these cases as criminal charges. That’s not been our intention. What we want is a qualified investigator to ask the question and then answer it.”
Tim Burke, chairman of the local elections board and the Hamilton County Democratic Party, disagrees: “This is a damn shame. What’s happening to those voters is absolutely wrong.”
Burke claims the law was followed and no further investigation is necessary. He alleges Republicans are trying to suppress voters.
“I fear that what’s going on is that elements of the Republican Party want to create the impression that there is massive voter fraud going on, and they want to scare the hell out of people to intimidate them and discourage them from voting in the future,” Burke says. “I think part of what’s going on here is an effort to identify voter fraud in order to justify more restrictions on voting rights.”
Triantafilou argues Democrats, including Burke, are playing politics: “It’s a continuation of the kind of fear that Democrats try to instill in the electorate, and it’s a political weapon. We’re not trying to do that. They alleged voter suppression in the last election cycle. That was nonsensical. The problem really is fraud.”
Mayor-elect John Cranley invited reporters to his home in Mt. Lookout on Wednesday to discuss his plan and priorities for his first term as mayor of Cincinnati.
Cranley claims the invitation to his house represents the kind of accessible, transparent leadership he’ll take up when he begins his term on Dec. 1.
Speaking on his immediate priorities, Cranley says he already contacted the nine newly elected council members and intends to build more collaboration with all sides of the aisle, which will include a mix of five Democrats, two Republicans, one Charterite and one Independent starting in December.
One of Cranley’s top priorities is to cancel the $133 million streetcar project, which Cranley and six newly elected council members oppose. He also argues that the city should stop spending on ongoing construction for the project.
“Seriously, look at who got elected yesterday. At some point, this is a democracy. We shouldn’t be agitating voters like this,” Cranley says. “Let’s not keep spending money when it looks like the clear majority and the clear mandate of yesterday’s election was going in a different direction.”
But in response to recent reports that canceling the streetcar project could carry its own set of unknown costs, he says he will weigh the costs and benefits before making a final decision. If the cost of cancellation is too high, Cranley acknowledges he would pull back his opposition to the project.
Canceling the streetcar project would also require an ordinance from City Council.
Mike Moroski, who on Tuesday lost in his bid for a council seat, already announced on Twitter
that he’s gathering petition signatures for a referendum to prevent the project’s cancellation.
Cranley promises he won’t stop a referendum effort by
placing an emergency clause on an ordinance that cancels the project, but he expressed doubt that a referendum would succeed.
On the current city administration’s plan to lease the city’s parking meters, lots and garages to the Greater Cincinnati Port Authority, Cranley says he will work with fellow lawyers David Mann and Kevin Flynn, both of who won seats for council on Tuesday, to find a way to cancel the deal.
But that could prove tricky with the lease agreement already signed by the city and Port Authority, especially as the Port works to sell bonds — perhaps before Cranley takes office — to finance the deal and the $85 million payment the city will receive as a result.
Cranley also promises to make various development projects his top priority, particularly the interchange for Interstate 71 and Martin Luther King Drive. He says he will lobby White House officials to re-appropriate nearly $45 million in federal grant money for the streetcar project to the interchange project, even though the U.S. Department of Transportation told the city in a June 19 letter that it would take back nearly $41 million of its grant money if the streetcar project were canceled.
Cranley vows he will also work with local businesses to leverage public and private dollars to spur investment in Cincinnati’s neighborhoods — similar to what the city did with Over-the-Rhine and downtown by working with 3CDC (Cincinnati Center City Development Corporation).
“We want to have some big early wins,” Cranley says. “We want to get moving within a year on the Wasson Way bike trail, see significant progress at the old Swifton Commons and see Westwood Square developed.”
He adds, “And we intend to reverse the one-trash-can policy, which I think is a horrible policy. … There have been several stories about illegal dumping that have resulted from that.”
Cincinnati’s pension system and its $862-million-plus unfunded liability also remain a top concern for city officials. Cranley says he will tap Councilman Chris Smitherman to help bring costs in line, but no specifics on a plan were given.
It’s nearly budget season in Cincinnati again. In a bit of a head start, City Manager Milton Dohoney has unveiled his plan to look into privatizing the city’s parking services.In a memo to city employees, Dohoney claimed leasing could provide a few benefits to the city: “For example, a third party can invest in technology across the entire system more efficiently, can conduct enforcement and bill scofflaws, and can assume maintenance and facility upgrades to the system. ... Further, leasing the system could allow the City government to focus current staff on other services, and provide a pool of funding that could be paid immediately to support neighborhood investment among other priorities.”
Dohoney also wrote he had met with American Federation of State, County and Municipal Employees (AFSCME) workers that would be affected by the change. He assured any new parking operator would have to interview AFSCME parking workers for jobs.
Councilman P.G. Sittenfeld responded to the proposal critically in a statement: “I’ll await more details, but it seems penny-wise and pound-foolish to forgo a steady revenue stream for a lump-sum payment. Cincinnati needs a structurally balanced budget, and can’t keep relying on one-time sources. Places like Chicago and Indianapolis have seen their parking rates more than double following privatization — that’s a bad deal for citizens, and something we don’t need while were experiencing an urban renaissance.”
Some have cited the experience in Chicago as a failure of privatization. When New York City moved to privatize its parking meters, Matt Taibbi of Rolling Stone criticized New York City Mayor Mike Bloomberg for his plan: “These deals involve a sitting executive selling off a valuable piece of city property at a steep discount to private financial interests (often, to friends or campaign contributors), in order to solve a current cash flow problem that, surprise, surprise, will still be there the year after you finish spending the proceeds of your sale.”
But New York City’s plan for privatized parking meters kept pricing in public
hands. It’s possible Cincinnati could take a similar approach and keep meter rates at the same level.
The full budget proposal typically comes out in late November. Mayor Mark Mallory and City Council will have to approve the proposal.
More bad news for Secretary of State Jon Husted. The Ohio Supreme Court told Husted his approved ballot language for Issue 2 contains “factual inaccuracies” and must be rewritten by the Ballot Board. Voters First previously contested the language as misleading to voters. If approved by voters, Issue 2 will put an independent citizens commission in charge of redistricting. Under the current system, state officials redraw borders, sometimes using the process for political advantage. In Cincinnati’s district, the Republican-controlled process redrew the district to include Warren County, giving the district more rural voters that tend to side with Republicans instead of urban voters that tend to side with Democrats. Voters First mocked the process with a graph showing how redistricting decisions can sometimes be made in 13 minutes with no questions asked. CityBeat covered the redistricting process here when Issue 2 was still in the petition process.
Ohio’s median income dropped last year, according to a new report from the U.S. Census Bureau. But rates of poverty and uninsured rates remained the same. Nationwide, uninsured rates dropped from 16.3 percent in 2010 to 15.7 percent in 2011, meaning 1.4 million people gained health coverage. Some of that is attributable to health-care reform passed by President Barack Obama.Former University of Cincinnati President Greg Williams is getting a pretty nice going-away present. The Board of Trustees approved a package for Williams that adds up to more than $1.2 million. It includes a bonus, retirement benefits, consulting fees, a year’s salary and a contract buyout. Williams abruptly left UC on Aug. 21, citing personal reasons.
Homeless shelters will cost more than expected, says 3CDC. The nonprofit group said it will cost about $40 million to build three homeless shelters and help finance others.
With the support of Democrats and Republicans, the Ohio legislature approved pension reforms yesterday. The reforms lower benefits, raise contributions requirements, increase the retirement eligibility age, establish new cost-of-living guidelines and set a new formula to calculate benefits, all for future retirees. For the most part, current retirees are not affected. Senate President Tom Niehaus, a Republican, said, “We know the changes are not popular, but they are necessary.” Before the changes, the system was losing $1 million a day, according to a statement from Rep. Robert Hagan, a Democrat.Sen. Sherrod Brown of Ohio is pushing against banks that take advantage of college students. In a letter to Higher One, Brown told the bank to rework its contracts with universities. Brown wrote in the letter, “Federal student aid programs should help students prepare for the future, not extract fee income from them.” He went on to ask the bank to redo its contracts so they are “consumer-friendly and consistent with reforms that Congress enacted for the credit card market.”
Ohio’s inspector general found ODJFS wrongly reimbursed organizations in central Ohio with federal stimulus funds when the organizations did not follow rules.
Vice President Joe Biden was in Dayton yesterday. During his speech, he spoke about the attack on the U.S. embassy in Libya, which led to the death of U.S. Ambassador Chris Stevens. Biden vowed justice will be served.
Presidential candidate Mitt Romney unleashed a big foreign policy gaffe yesterday when he politicized the attack on the U.S. embassy in Libya. The attack was revealed to cause the death of Stevens after Romney made his comments.
Math shows homeopathy, a trend in medicine, is implausible.
For better or worse, Cincinnati will have to deal with another major election cycle for City Council and the mayor’s office in 2013. With four-year terms for City Council recently approved by voters, the 2013 election could play one of the most pivotal, long-term roles in Cincinnati’s electoral history.
But what most people know about the candidates and issues
is typically given through small fragments of information provided by
media outlets. At CityBeat, we do our best to give the full context of
every story, but just once, we decided to give the candidates a chance
to speak for themselves through a question-and-answer format. (Update: Since this article was published, CityBeat interviewed Democratic mayoral candidate Roxanne Qualls for another Q&A here.)
First up, mayoral candidate John Cranley, a former Democratic council member, has been one of the most outspoken critics of the recently announced parking plan (“City Manager Proposes Parking, Economic Development Plan,” issue of Feb. 20) and the Cincinnati streetcar (“Back on the Ballot,” issue of Jan. 23) in his mayoral campaign against fellow Democrat Vice Mayor Roxanne Qualls. CityBeat talked with Cranley about these issues and how they relate to the campaign to get his full take, all in his own words. The conversation (with some edits for readability) is below.
CityBeat: I know your campaign kick-off was last night. How did that go? Did it have good turnout?
John Cranley: It was awesome. We had over 300 people there. Very diverse crowd. It was just great.
CB: How do you feel about the campaign in general? It’s pretty early, but how do you feel about the local support you’ve been getting?
JC: It’s been overwhelming. People are rallying behind my progressive vision, and trying to stop privatization of parking meters to Wall Street. And trying to get focus back on neighborhoods, balance, equity, basic services for everyone, special attention to those in need and broad opportunities for the working poor. I think people are very excited for that message, and I’m finding support in every neighborhood of town.
CB: I noticed that a theme of your campaign is helping out neighborhoods by spreading the funding not just to downtown, but neighborhoods as well. Are you hoping to build support from those areas?
JC: I’m for fairness. I think that right now you have a disproportionate amount of money — $26 million over budget on the streetcar, yet they’re still proceeding with it — and the neighborhoods are forgotten about. But I want to see downtown flourish too, so it’s not like I’m one or the other. I want the whole city to do better. But I think there needs to be equity and balance.
CB: You just think the playing field isn’t leveled right now?
JC: Absolutely not. Right now they’re trying to raise parking meters in neighborhoods to build luxury apartments in downtown. If that doesn’t show you their values are out of whack, I don’t know what does.
CB: Speaking on that, the latest news is the city manager’s parking proposal, which he calls a “public-public partnership” that will boost economic development. What are your thoughts on it?
JC: The PR campaign that they’ve been putting out
is very deceptive and willfully so. This is not a public plan; this is
privatization to a Wall Street company. The only elements that matter to
city control are control over rates and control over enforcement. The
city has said repeatedly, dishonestly, that the city will maintain
control over rates and enforcement, but neither one of those statements
The rates are guaranteed to go up 3 percent a year for 30
years on a compounded basis. Prior to the recent increases in parking
rates, the city hadn’t raised rates in 10 or 15 years. Right now, the
elected officials — we live in a democracy, for now. Right now, City
Council decides to raise rates, lower rates, maintain rates. If there’s a
recession in the future, City Council can choose to reduce parking
rates. There might be certain neighborhoods where you want to charge
different rates over others depending on economic demographics of those
areas. Right now, we have complete flexibility to change those rates.
This plan gives Wall Street the right to raise rates by 3 percent every
single year for 30 years.
Not to mention due process concerns. What happens if you
don’t believe you were late back to your meter? Who do you appeal to?
You appeal to this company from Wall Street, who has a financial
incentive to make you pay.
[Editor's Note: Meg Olberding, city spokesperson, told CityBeat the rate
increase cap could be circumvented, but the decision would have to be unanimously
approved by a board with four members appointed by the Port of Greater Cincinnati Development Authority
and one selected by the city manager, then affirmed by the city manager, then get a final nod from the Port Authority. The 3-percent rate increase is
also not automatic, and the Port Authority could decide to not
take it up every year.
On that point, how is it that there are public hearings next week and they haven’t released any of the contracts or documents for this transaction? They are going on a Power Point presentation, which is their talking points. Everyone is writing it as if it’s fact, yet the contract and the details haven’t even been released.
Roxanne is calling public hearings and expecting people to weigh in on a 30-year decision before the details are released to the public. How cynical is that?
CB: We might not know the details right now, but you think that shows a lack of transparency?
JC: Of course. I hope you guys will editorialize about that and stand up against privatizing and outsourcing the city to Wall Street.
CB: In the past, you and I talked about the next phase of the Smale Riverfront Park not having funding, which you pinned on the streetcar taking tax revenue that could be used for it. I couldn’t help but notice that it’s one of the things funded in the city manager’s parking proposal. Do you see that as evidence to your claim?
JC: Well, of course. They don’t have funding for the Riverfront Park. That’s why they’re selling the city’s parking meters.
The bigger issue is it’s just fundamentally wrong to take an asset that is a recurring revenue stream for 30 years and try to monetize it today at the expense of the future generations. It’s giving Roxanne the ability to try to buy votes by playing Santa Claus before the election at the expense of the next generation.
CB: Another part of the plan is it’s expanding hours. Do you think that might hurt nightlife in Downtown?
JC: Of course it’s going to hurt restaurants, nightlife and the Cincinnati Reds, not to mention the neighborhoods — Hyde Park, Mount Lookout, Clifton. They’re going to pay higher meters so they can pay off their friends to build luxury apartments in downtown. The equity of this is awful.
CB: Would you be willing to bring up a referendum on this deal?
JC: Absolutely. It’s such a selling-out of the city on a long-term basis, but I think the people should have the final say.
CB: I want to move onto the streetcar. Even for supporters of the streetcar, the delays are unnerving. The latest news is these construction requests came way over budget and they might cause more delays. How do you feel about it?
JC: It’s what we’ve been saying for a long time. A lot of people’s reputations have been attacked for having said that this thing would be over budget. I think a lot of people, including Roxanne, need to fess up that they’ve been misleading the public about this deal for years.
But the real issue is it’s $26 million over budget, it’s the tip of the iceberg, and it’s going to get worse. And Roxanne is continuing to spend money on the streetcar. She’s continuing to move forward. She still says she wants to get it done by the (2015 Major League Baseball) All-Star Game. She still says that she wants to pay for future phases. So it doesn’t really matter, from Roxanne’s standpoint, if it’s $26 million over budget. I think it’s too expensive, we can’t afford it, we shouldn’t be raising property taxes, etc. We should stop now and we should try to get our money back.
CB: One of the issues you’ve told me you have with the streetcar before is a lack of transparency. Do you think that’s catching up to the city in these budget surprises?
JC: Of course the lack of transparency is catching up to them. Not only is it the right thing to do what you’re doing with their money and government; it’s always the right way to manage money. When you hide problems, it always leads to greater expense later.
CB: We’ve thoroughly covered what you’re against. What positive visions do you have for the city and neighborhoods?
JC: I have lots. On my website, JohnCranley.com,
I have my 10-point plan, which goes in great deal over my positive plan
for the city. We need to focus on jobs and opportunities for the
future. We need to partner with the venture capital and university
entrepreneurship efforts in the city, and I’ll do everything in my power
to help that. We need to work to improve our schools; what we need to
do is get communities involved to adopt under-performing inner-city
schools to improve the standards and opportunities. Third, we need to
adopt my plan to reprogram existing federal dollars into job training
and job opportunities to put people to work in building city’s
infrastructure projects now. Those are probably the three major ones.
The good thing about Cincinnati is we have momentum, which is great. But we’re not getting better fast enough.
Update: This story was updated with comment from the city manager’s office to clarify how the parking plan’s rate cap will work and Guggenheim's role.