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by German Lopez 12.27.2013
Posted In: News, Economy, Streetcar at 09:41 AM | Permalink | Comments (0)
 
 
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Morning News and Stuff

Streetcar construction restarts, minimum wage hike incoming, jobless benefits to expire

Construction on the $132.8 million streetcar project restarted yesterday, marking an end to the nearly two-month drama brought on by Mayor John Cranley’s election and his threats of cancellation. City Council paused the project for a little more than three weeks to conduct an audit on its costs, but the legislative body agreed to restart construction last week after receiving a signed agreement from the Haile Foundation that the philanthropic group will provide $9 million over 10 years to help pay for $3.13-$3.54 million in annual operating costs.

An automatic increase on Ohio’s minimum wage at the start of the new year will benefit 330,000 Ohioans, according to an analysis from the Economic Policy Institute (EPI). The higher wages should translate to a better economy for all Ohioans: EPI found the automatic increase will generate nearly $39 million in economic impact and 300 full-time jobs. Since a voter-approved measure in 2006, Ohio has been among several states who peg the minimum wage to increases in the cost of living.

More than 36,000 Ohioans will lose emergency unemployment benefits for the long-term unemployed tomorrow following a lack of congressional action, according to left-leaning think tank Policy Matters Ohio. The emergency benefits were passed by Congress at the start of the Great Recession to help those hit worse by the economic downturn, but Congress failed to extend the benefits before it recessed for the holidays despite lingering signs of a weakened economy. Without the extension, Ohioans can tap into just 26 weeks of state-provided jobless aid; federally funded emergency benefits give the unemployed another 37 weeks to find work before losing government assistance.

Here are CityBeat’s top stories of 2013.

The annual review of the two-year state budget could include income tax cuts, said Ohio’s tax chief. The statement follows Gov. John Kasich’s announced push for another income tax cut to help spur Ohio’s slowing economy. The Republican governor signed a state budget that reduced taxes — particularly for the wealthy — earlier in the year, but Ohio’s economy still slowed down in the past few months as the state unemployment rate surpassed the national rate for the first time in years.

With the Ohio Supreme Court’s rejection last week of a challenge to the state’s federally funded Medicaid expansion, conservatives are conceding the battle is “over with” for now. Gov. Kasich pursued the federally funded expansion without approval from the General Assembly by going through the seven-member Controlling Board, but Republicans, who largely opposed the expansion of a government-run health care program from the start, fought against the board’s approval in court.

Gov. Kasich was “stingy” with his clemency powers during his third year in office, according to The Columbus Dispatch.

Even though a review found Cintrifuse is a “Lead Applicant with strong position within SW Ohio entrepreneurial ecosystem,” Ohio Third Frontier denied state tax credits for the local startup incubator because, according to the state review group, Cintrifuse maintains an unrealistic goal to scale to 60 tenants in its first year and lacks strategy or process for the incubator services, graduation focus, an adequate staffing plan and a defined tenant award process.

Delta briefly provided very low air fares following a technical error yesterday.

Much to scientists’ frustration, 2014 could be a bad year for the flu after the adaptive virus evolves.

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by German Lopez 12.26.2013
Posted In: News, Economy at 11:48 AM | Permalink | Comments (0)
 
 
ohio statehouse

Report: Minimum Wage Increase to Benefit 330,000 Ohioans

Advocates argue minimum wage increases spur economic growth

When Ohio’s minimum wage automatically increases by 10 cents to $7.95 per hour at the start of 2014, roughly 330,000 workers will receive raises across the state, according to an analysis from the Economic Policy Institute (EPI).

That could be good news for all of Ohio: EPI found the minimum wage increase will benefit the rest of the state through nearly $39 million in economic impact and 300 new full-time jobs.

“Ohio workers and the Ohio economy will both benefit from this raise for our lowest-paid neighbors,” said Amy Hanauer, executive director of left-leaning think tank Policy Matters Ohio, in a statement. “The employees who benefit will turn around and spend money in our communities, stimulating growth here.”

The automatic increase is a result of a constitutional amendment approved by Ohio voters in 2006 that hiked the minimum wage to $6.85 per hour and pegged it to rises in the cost of living.

Ohio isn’t alone in the increase, however. Policy Matters estimates 10 other states — Arizona, Colorado, Florida, Montana, Missouri, Nevada, Oregon, Vermont, Washington and New Jersey — automatically increase their minimum wages each year to keep up with inflation.

The nationwide minimum wage hikes “will generate over $619 million in new economic activity and support creation of 4,600 new full-time jobs as businesses expand to meet increased consumer demand,” according to Policy Matters.

The projections come at a time progressives are working on the national stage to increase the federal minimum wage, which, at $7.25 per hour, is becoming increasingly irrelevant as Congress fails to keep up with many states’ minimum wage expansions.

President Barack Obama’s Fair Minimum Wage Law would raise the federal minimum wage to $10.10 per hour by 2015 and — perhaps most importantly — ensure the minimum wage increases each year to keep up with the cost of living. The left-leaning National Employment Law Project estimates the hike would help 30 million Americans and help grow the economy.

Opponents argue a minimum wage increase, especially one as rapid as Obama’s proposal, would burden businesses with considerably higher labor costs. They argue companies would drop employees or raise prices to cope with higher expenses.

Advocates typically tout a minimum wage hike as a matter of basic fairness. They claim the federal minimum wage would be $10.55 per hour today if it kept up with inflation.

Meanwhile, the economics research on the effects of the minimum wage is fairly mixed. Some studies linked higher minimum wages to less employment, while other studies found no effects at all.

 
 
by German Lopez 12.26.2013
Posted In: News, LGBT, Streetcar, Taxes at 10:03 AM | Permalink | Comments (0)
 
 
evolution of equality

Morning News and Stuff

Ohio must recognize gay marriages, governor calls for more tax cuts, citizens saved streetcar

A federal judge on Monday ordered Ohio authorities to recognize same-sex marriages on death certificates. Although the ruling was narrow, many advocates of gay marriage argue the merits of the judge’s decision indicate a broader problem with Ohio’s marriage laws following the U.S. Supreme Court’s historic ruling against a federal anti-gay marriage law. The judge’s ruling came just three days after another federal court struck down Utah’s same-sex marriage ban on similar constitutional grounds.

Gov. John Kasich’s plan to get Ohio’s economy moving again: more tax cuts. But the policy announcement — unsurprising, coming from a Republican — comes on the same year Ohio’s economy slowed down even after Kasich and the Republican legislature passed tax cuts that heavily favored the state’s wealthiest.

Believe in Cincinnati saved the streetcar, argues The Cincinnati Enquirer. The group was formed shortly after Mayor John Cranley won the November election and threatened to halt the $132.8 million streetcar project for good. But the threats inspired a groundswell of streetcar supporters, ranging from concerned businesses to residents. And before City Council agreed to continue the streetcar project, Believe in Cincinnati in just eight days gathered 11,300 petition signatures for a charter amendment restarting the project. CityBeat covered the group in its infancy here.

Cincinnati ranked No. 2 for highest child poverty out of 76 major U.S. cities in 2012, according to the Children’s Defense Fund (CDF). Cleveland and Toledo also made the unfortunate top five, CDF found.

Overtime pay at the Metropolitan Sewer District exceeded $2 million for the third consecutive year in a row, but the number falls below the accepted standard of less than 10 percent of total payroll. MSD Director Tony Parrott says overtime allows the agency to keep staffing numbers in check but still responsive to unexpected situations. Still, the overtime estimate arrives at a time Hamilton County commissioners are raising sewer and water rates to comply with federal mandates.

Cincinnati will tap into a state program for a major demolition blitz in 2014. The city plans to knock down 240 blighted and condemned buildings next year — far higher than the typical annual rate of 70.

Eight historic buildings in Cincinnati, including Memorial Hall, on Dec. 20 received roughly $6 million in state tax credits for projects totaling $71 million.

Rhinegeist Brewing plans to begin canning its craft beer in January.

Humans were getting the flu as far back as the year 1510, but it’s completely unknown if dinosaurs suffered from similar illnesses.

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by German Lopez 12.20.2013
Posted In: News, Poverty, Education at 02:07 PM | Permalink | Comments (1)
 
 
city hall

Cincinnati Ranks No. 2 for Highest Child Poverty

Three Ohio cities make Children Defense Fund’s top five

Cincinnati ranked No. 2 for highest child poverty out of 76 major U.S. cities in 2012, the Children’s Defense Fund (CDF) of Ohio said Friday.

The numbers provide a grim reminder that more than half of Cincinnati’s children lived in poverty in 2012, even as the city’s urban core began a nationally recognized revitalization period.

With 53.1 percent of children in poverty, Cincinnati performed better in CDF’s ranking than Detroit (59.4 percent) but worse than Cleveland (52.6 percent), Miami (48 percent) and Toledo (46 percent), which rounded out the top five.

The data, adopted from the U.S. Census Bureau, also shows Ohio’s child poverty rate of 23.6 percent exceeded the national rate of 22.6 percent in 2012, despite slight gains over the previous year.

“When three of the top five American cities with the highest rates of child poverty are in Ohio, it is clear that children are not a priority here,” said Renuka Mayadev, executive director of CDF of Ohio. “Significant numbers of our children do not meet state academic standards because their basic needs are not being met.”

With the contentious streetcar debate over for now, some local leaders are already turning their attention to Cincinnatis disturbing levels of poverty.

Mayor John Cranley on Thursday told reporters that he intends to unveil an anti-poverty initiative next year. A majority of council members also told CityBeat that they will increase human services funding, which goes to agencies that address issues like poverty and homelessness, even as they work to structurally balance the city’s operating budget.

Outside City Hall, the Strive Partnership and other education-focused organizations are working to guarantee a quality preschool education to all of Cincinnati’s 3- and 4-year-olds. The issue, which will most likely involve a tax hike of some kind, could appear on the 2014 ballot.

 
 
by German Lopez 12.20.2013
Posted In: News, Streetcar, City Council, Mayor, Health care, LGBT at 10:09 AM | Permalink | Comments (0)
 
 
news1_streetcar_jf2

Morning News and Stuff

Cincinnati streetcar saved, gay marriage could appear on ballot, Medicaid overhaul signed

City Council yesterday decided Cincinnati will get a streetcar after all. After securing the six votes necessary to overturn a mayoral veto, Mayor John Cranley conceded that the $132.8 million streetcar project will restart following a two-week pause. It was a surprising journey for the project, which largely seemed like the underdog ever since the new mayor and council took office earlier in the month. In the end, the project gained its sixth vote from Councilman Kevin Flynn after the philanthropic Haile Foundation signed onto contributing $900,000 a year for 10 years to help underwrite part of the streetcar’s annual operating costs.

Advocacy group FreedomOhio yesterday announced it has enough signatures to place same-sex marriage on Ohio’s 2014 ballot. The group declined to tell Cleveland.com exactly how many signatures it had collected so far, but the organization says it’s aiming to collect 1 million before the July filing deadline. At the same time, FreedomOhio released a poll that found Ohioans are still split on the issue of same-sex marriage. But the poll also found that a good majority of Ohioans support FreedomOhio’s gay marriage legalization amendment, which provides exemptions for religious groups.

Gov. John Kasich yesterday signed a bipartisan Medicaid overhaul bill that seeks to control costs by establishing an oversight commission and a target for spending growth. The legislation also sets a focus on health care outcomes to ensure quality standards in the government-run program. Both parties pursued the bill to tamp down on health care costs that have been taking up more of the state’s budget in the past few years.

A new report from the state attorney general’s office found nearly half the businesses who received state aid in 2012 did not fulfill their end of the deal in terms of producing new jobs and other promises.

Ohio’s unemployment rate dropped to 7.4 percent in November, down from 7.5 percent the month before. But the number was well above the 6.8 percent rate from November 2012, indicating a decline in job growth in the past year.

Police arrested the mother of a 3-year-old for falsification and the mother’s boyfriend for accidentally shooting the child on Tuesday.

Today is Homeless Memorial Day, a day meant to commemorate those who died in 2013 while experiencing homelessness. The Greater Cincinnati Homeless Coalition is gathering at 5:30 p.m. at the corner of 14th and Elm streets to honor the occasion.

Bike Share plans to come to Cincinnati next summer and allow residents to rent out bikes around multiple parts of town.

Miami University is the second most efficient university in the nation in terms of delivering a good education for relatively low cost, according to a study from U.S. News and World Report.

Cincinnati’s housing market marked 29 consecutive months of increased sales last month with a 5-percent rise. The measure indicates the local economy is recovering after the Great Recession crippled housing markets around the nation.

A new product that claims to translate dogs’ thoughts to human speech is bogus.

After today, Morning News and Stuff will take a vacation until Dec. 26. Happy holidays!

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by German Lopez 12.19.2013
Posted In: News, City Council, Streetcar, Mayor, Education, Development at 08:23 AM | Permalink | Comments (0)
 
 
news1_streetcar_jf2

Morning News and Stuff

Streetcar decision today, Preschool Promise coming together, uptown interchange advances

The city would save just $7.8-$52.6 million in capital costs if it takes on tens of millions in additional expenditures to cancel the $132.8 million streetcar project, an independent audit revealed yesterday. The news appeared to throw another potential lifeline for the streetcar, which can now claim a five-member majority of supporters on City Council. But with Mayor John Cranley's veto threat, council will likely need six votes to continue the project. Council expects to make a decision today, prior to a Friday deadline for federal grants funding roughly one-third of the project.

Some city leaders are trying to ensure all of Cincinnati's 3- and 4-year-olds attend quality preschool programs through Cincinnati’s Preschool Promise. Citing swaths of studies and data, Greg Landsman, executive director of the education-focused Strive Partnership, says the policy could reach all corners of the city and hugely benefit the city’s economy in the long term. But supporters of the proposal first must find a means to fund it, which Landsman says will likely require some sort of voter-approved tax hike in 2014. Before the Preschool Promise campaign gets there, Landsman vows supporters will heavily engage the community to gather feedback and determine the scope of the proposal.

City Council yesterday unanimously approved $20 million in capital funding for the $106 million uptown interchange project, which will allow the project to move forward with the state and Ohio-Kentucky-Indiana Regional Council of Governments filling the rest of the funding gap. The capital allocation means property taxes will remain higher than they would without the project, as revealed at Monday's Budget and Finance Committee. Mayor Cranley and council members argue the cost is worth it because, as a study from the University of Cincinnati's Economics Center previously found, the project will generate thousands of jobs and other economic gains in the uptown area.

Commentary: "Anti-Streetcar Logic Should Stop Uptown Interchange Project."

The Democratic majority on City Council yesterday dismissed legislation that would have repealed controversial bidding requirements for Metropolitan Sewer District (MSD) projects. Council's decision could put Cincinnati and Hamilton County on a collision course over rules governing a federally mandated revamp of the city's inadequate sewer system. A majority of council members support the bidding requirements as a way to foster local jobs and local job training, while opposing county officials say the rules favor unions and impose a huge burden on MSD contractors. Councilman Chris Seelbach says he's working with Hamilton County Commissioner Greg Hartmann to get both parties in mediation talks and end a county-enforced hold on sewer projects before the federal government begins enforcing its mandate.

The city of Cincinnati is allowing residents to put out extra trash bags next to approved trash containers between Dec. 26 and Jan. 3 in a "trash amnesty."

Gov. John Kasich's 2014 wish list: More infrastructure funding, measures that curb health care costs, new anti-drug and anti-poverty initiatives, and another tax cut.

Ohio's May ballot could include a measure that would tap into existing revenues to boost funding for infrastructure projects around the state.

Seventeen non-U.S. citizens allegedly cast illegal ballots in Ohio's 2012 general election, according to Ohio Secretary of State Jon Husted.

Two Democrats in the Ohio Senate proposed legislation that would allow same-sex couples to file joint tax returns. But Republicans control both chambers of the Ohio legislature, so it's unlikely the bill will pass.

Four Ohio libraries, including the Public Library of Cincinnati and Hamilton County, are collaborating to preserve historical documents, photographs and more.

Those who want health care coverage on Jan. 1 and don't get insurance through an employer have five days to sign up for Obamacare at HealthCare.gov.

Congress passed a bipartisan budget deal that will avoid a federal government shutdown and ease previously planned across-the-board spending cuts.

A new study found the Milky Way has four arms, not two as previously believed.

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by German Lopez 12.18.2013
Posted In: News, Development, Infrastructure, City Council at 06:54 PM | Permalink | Comments (2)
 
 
city hall

City Keeps Controversial MSD Contracting Rules

Democratic council members stand together against repeal of "responsible bidder" law

City Council on Wednesday dismissed legislation that would have repealed controversial contracting rules for Metropolitan Sewer District (MSD) projects.

Council's decision could put Cincinnati and Hamilton County on a collision course over rules governing a federally mandated revamp of the city's sewer system. The city and county jointly manage MSD.

Democrats David Mann, Chris Seelbach, Yvette Simpson, P.G. Sittenfeld and Wendell Young voted to move the repeal ordinance back to committee. Republicans Amy Murray and Charlie Winburn, Charterite Kevin Flynn and Independent Christopher Smitherman voted to keep the ordinance in front of council.

Hamilton County commissioners previously halted most of the $3.2 billion, 15-year sewer revamp in protest of the city's "responsible bidder" law. As long as the hold remains in place, the city and county risk violating a federal mandate to revamp Cincinnati's inadequate sewer system.

The city rules require contractors to follow stricter standards for apprenticeship programs, which unionized and nonunion businesses use to train workers in crafts, such as electrical work or plumbing. The rules also ask contractors to put 10 cents for each hour of labor into a pre-apprenticeship fund that will help train newcomers in different crafts.

Supporters of the law claim it will foster local jobs and local job training. Opponents claim the law favors unions and places a costly burden on MSD contractors.

The city already gave various concessions to resolve its conflict with the county, including exemptions for small businesses and contracts worth less than $400,000. But the county has so far refused to budge.

Smitherman, who opposes the law, argued the issue will end up in court and the city will lose.

"What was passed on May 1 is not constitutional," he said.

But the city's law department says the law is legal and could be defended in court.

Seelbach, who spearheaded the law, said he's in talks with Hamilton County Commissioner Greg Hartmann to bring both parties into mediation and resolve the conflict.

"I'm asking for some more time," he said.

 
 
by German Lopez 12.18.2013
Posted In: News, Streetcar, City Council, Mayor at 10:09 AM | Permalink | Comments (0)
 
 
streetcar

Streetcar Audit Finds High Costs to Cancel

Operating costs also lower than previously projected

Cincinnati would save just $7.8-$52.6 million in capital costs if it incurs tens of millions in additional expenditures to cancel the $132.8 million streetcar project, according to an audit from consulting firm KPMG released Wednesday.

By showing the potentially high costs of cancellation, the numbers could throw a lifeline to the streetcar project just one day before City Council decides whether to restart construction or permanently halt the project.

But Mayor John Cranley appears undeterred in his commitment to cancel the streetcar project. By accounting for the annual costs to operate the streetcar, Cranley estimates the city will actually save $102 million if it cancels the project.

The city already spent roughly $34 million on the project, according to the audit. Cancellation would add $16.3-$46.1 million in close-out costs, bringing the total costs of cancellation and money spent so far to $50.3-$80.1 million.

Completing the project would add $68.9 million in costs, after deducting $40.9 million in remaining federal grants, the audit found.

But the completion estimate assumes the city will need to pay $15 million in utility work — a cost that is currently being debated in court. If the city wins its case against Duke Energy, the utility company would be required to pay the $15 million and bring down the total completion costs to $53.9 million.

The audit also put the costs of operating the streetcar at $3.13-$3.54 million a year, lower than the previous $3.4-$4.5 million estimate. After revenues from fares, sponsorships and other sources, the city would need to pay $1.88-$2.44 million to operate the streetcar, according to the audit.

The reduced estimate for operating costs could become particularly important in deciding the project's fate as private contributors attempt to get the cost off the city's operating budget.

Delaying the streetcar project while KPMG conducted its audit also added $1.7-$2.8 million in costs, according to the audit. The city allocated another $250,000 to pay KPMG for its work.

The audit did not account for the potential costs of litigation if contractors and investors along the planned streetcar line sue the city to recoup costs.

City Council paused the streetcar project on Dec. 4 to obtain the cost estimates of completion, cancellation and annual operations. The full body of council will decide whether to restart the project on Thursday, before a Friday deadline set by the Federal Transit Administration for federal grants.

Read the full audit:


This post was updated at 12:59 p.m. with more information and details.

 
 
by German Lopez 12.18.2013
 
 
city hall

Morning News and Stuff

Private backers support streetcar offer, city budget gap estimated, governor's race still close

More than a dozen business and philanthropic entities support the Southwest Ohio Regional Transit Authority’s (SORTA) plan to develop a private-public partnership to pay for the streetcar’s operating costs, according to Eric Avner, vice president of the philanthropic Haile Foundation. If the people cited by Avner put money behind their support, they could get streetcar operating costs off the city’s books and pave the clearest path forward for the $132.8 million streetcar project since the new mayor and City Council took office earlier this month. Although Cranley called SORTA’s offer “woefully insufficient” earlier in the day, Councilman Kevin Flynn, one of two swing votes on council, said the idea could turn into a viable option if the business and philanthropic community provided more assurances.

Other streetcar news:
• City Council will hold public hearings on the streetcar today at 1:30 p.m., with a vote to decide the project’s fate expected tomorrow.
• Speaking about the streetcar project, Vice Mayor David Mann told The Business Courier, “I’m awfully close to saying let’s go for it.”
• The Federal Transit Administration might prefer to deal with SORTA over Mayor Cranley if the streetcar is completed.

Cincinnati’s projected operating budget gap for fiscal year 2015 is $16 million, which means City Council will need to find new revenue or cuts to balance the budget by July. Although a majority of council members promise to structurally balance the budget in the next few years, a minority say it will be more difficult than most expect without hiking taxes or cutting police and firefighters.

The 2014 gubernatorial race between Republican Gov. John Kasich and Democratic challenger Ed FitzGerald is within the margin of error, according to a poll released Monday by Public Policy Polling (PPP). “Although there’s been a fair amount of movement toward Republicans nationally since (November), the state of this particular race has seen very little movement and Democrats continue to have an excellent chance at a pick up next year,” wrote Tom Jensen, director of PPP.

Meanwhile, Hamilton County Commissioner Todd Portune could challenge FitzGerald for the Democratic nomination.

A task force could undertake a comprehensive review of the city charter to modernize the city’s guiding legal document.

Startup incubator SoMoLend is likely to liquidate before the scheduled Jan. 23 state hearing about alleged securities fraud. The liquidation would be an effective end to a once-promising company that partnered with the city of Cincinnati to foster startups and small businesses.

This year could be the least deadly on Ohio’s roadways, according to the Ohio Department of Transportation.

A bill in the Ohio House could require hospitals to report the number of newborns addicted to drugs. The grim number would provide a much-needed measure for tackling Ohio’s so-called opioid epidemic.

Ohio is doing a poor job fighting infectious diseases, according to a report from Trust for America’s Health and the Robert Wood Johnson Foundation.

Cincinnati Children’s Hospital obtained a grant to combat brain cancer.

Two won the $636 million Mega Millions jackpot.

Even the physics behind emperor penguin huddles are pretty complicated.

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by German Lopez 12.17.2013
Posted In: News, Mayor, City Council, Streetcar at 05:03 PM | Permalink | Comments (0)
 
 
streetcar

Private Groups Back Plan to Pay for Streetcar Operations

Foundation lists more than a dozen business, philanthropic leaders in support

More than a dozen business and philanthropic entities support the Southwest Ohio Regional Transit Authority’s (SORTA) offer to develop a private-public partnership to fund the streetcar’s operating costs, Eric Avner, vice president of the Haile Foundation, told CityBeat on Tuesday.

If enough private contributors agree to finance the streetcar’s operating costs, they could address a major concern raised by streetcar opponents and provide the clearest path forward for the $132.8 million streetcar project since the new mayor and City Council took office early this month.

The Haile Foundation already contributed $1 million to an operating reserve fund for the streetcar, but Avner cautions that his organization’s donation is only the beginning, given all the other entities interested in moving the streetcar forward.

Avner says 14 other business and philanthropic leaders supported the SORTA concept in person or through writing in time for SORTA’s board of trustees meeting on Tuesday. Among other community leaders, Avner cites Otto Budig, Cathy Crain of Cincinnati State, William Portman of the University of Cincinnati, Jeannie Golliher of the Cincinnati Development Fund, Rick Greiwe of Greiwe Development and Jack and Peg Wyant of Grandin Properties.

In a letter to SORTA, the Haile Foundation offers to recruit and financially establish a commission of community leaders that will work with the agency to create an operating and revenue plan that will require no funds from the city of Cincinnati. The letter also promises to leverage the initial $1 million investment to secure additional contributors and build a fund that would pay for a full year of operating costs.

Mayor John Cranley called SORTA’s offer “woefully insufficient” in a press conference on Tuesday. Cranley said the city will need financial assurances far above the Haile Foundation’s $1 million to cover $3.4-$4.5 million in annual operating costs for the streetcar over 30 years.

Councilman Kevin Flynn, one of two potential swing votes on City Council, agreed with Cranley’s assessment, but he said the proposal could become a viable option if the city receives more assurances from SORTA and private entities that show the groups are serious in their offer.

At this point, private contributors might be necessary to save the streetcar project. Cranley and Flynn said on Dec. 12 that operating costs must be written off the city’s budget if the project is to move forward.

SORTA already agreed to help operate the streetcar if the project is completed, but its decision to take up the operating costs shows an additional commitment to the project.

The agency claims bus services will not be impacted by its increased commitment to the streetcar.

City Council expects to vote on Thursday on whether to restart the streetcar project. Council paused the project on Dec. 4 while the city audits the project’s completion, cancellation and operating costs.

Read the Haile Foundation’s full letter below:

 
 

 

 

 
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