In a presentation to City Council Feb. 19, City Manager Milton Dohoney Jr. unveiled an unexpected parking proposal that will solve a $25.8 million budget deficit for the 2014 fiscal year and avoid full privatization. The 30-year plan will also put more than $100 million toward economic development in the city.
The plan involves teaming up with the Port of Greater Cincinnati Development Authority and some private operators to manage and modernize Cincinnati’s parking assets. Dohoney called it a “public-public partnership” that will allow Cincinnati to keep control over rates, operation hours and the placement of meters.
The money raised by the plan will be used for multiple development projects around the city, including the I-71/MLK Interchange, Tower Place Mall and a high-rise that will house a downtown grocery store.
The new parking plan will cap rate increases at 3 percent or the cost of living, with any increases coming in 25-cent increments. Private operators will not be allowed to change operation hours, but hours will be initially expanded to 8 a.m. to 9 p.m. downtown and 7 a.m. to 9 p.m. in neighborhoods.
The proposal will not immediately increase downtown’s $2-an-hour rates, but it will increase all neighborhood parking meters to 75 cents an hour. Afterward, the rate cap will make it so downtown rates can only be increased every four years and neighborhood rates can only be increased every 10 to 11 years.
But the rate hikes will only come after technological improvements are made to parking meters. The new meters will allow users to pay with a smartphone, which will enable remote payment without walking back to the meter. After the plan’s 30 years are up, parking assets will be returned to the city with all the new technological upgrades, according to Dohoney.
Some critics were originally concerned that private operators will aggressively enforce parking rules to run bigger profits, but Dohoney said enforcement standards will remain the same.
Enforcement will be done through booting instead of towing, according to the plan. Booting will only be used after the accumulation of three unpaid parking tickets, which is similar to how towing works today. The boots will be automatically removed once the tickets are paid, which will be possible to do remotely through a smartphone.
The plan, which is a tax-exempt bond deal, will provide the city with $92 million upfront cash and $3 million in annual installments after that, although the city manager said the yearly payments will increase over time. The city originally promised $7 million a year from the deal, but Dohoney said estimates had to be brought down as more standards and limitations were attached to address expressed concerns.
The money will first be used to pay for a $25.8 million deficit in the 2014 fiscal year. Another $6.3 million will be set aside for the working cap reserve and $20.9 million will be put in a reserve to pay for a projected deficit in the 2015 fiscal year.
The rest of the funds will be used for economic development. About $20 million will go to the I-71/MLK Interchange, which would match $40 million from the state. The project is estimated to create $750 million in economic impact, with $460 million of that impact in Hamilton County. Dohoney says the economic impact will create 5,900 to 7,300 permanent jobs, and ultimately bring in $33 million in earnings taxes, which means the plan will eventually pay for itself. He also says the funding from the parking deal will allow the city and state to complete the project within two to three years, instead of the seven to 10 years it would take if the city waited for support from the federal government.
If the state does not agree to take up the I-71/MLK Interchange project, Dohoney promised a “mega job deal” that will create 2,500 jobs.
With $12 million for development and $82 million in leveraged funds, the city will also take on massive development projects downtown. Tower Place Mall will undergo a massive conversion. The city will also tear down Pogue’s Garage at Fourth and Race streets and replace it with a 30-floor high-rise that will include 300 luxury apartments, 1,000 parking spaces and a grocery store.
The plan will also use $3 million for the Wasson Line right-of-way and $4 million for the next phase of Smale Riverfront Park, which should be completed in time for the 2015 Major League Baseball All-Star Game.
AEW, Xerox, Denison and Guggenheim will partner with the city and Port Authority for the plan. AEW will manage assets, Xerox will handle parking operations and on-street spaces, Denison will operate off-street spaces and manage facilities and equipment and Guggenheim will act as underwriter and capital provider.
After the City Council hearing, Councilman P.G. Sittenfeld released a statement that raised concerns about expanded meter operation hours, which Sittenfeld fears could burden certain neighborhoods. He also pointed out the plan will not fix Cincinnati’s long-term structural deficit problems. Still, he said the local Port Authority’s management could make the plan “worthy of support.”
Sittenfeld has been skeptical of the parking plan since it was first announced in October. In the past, he warned privatization could cause parking rates to skyrocket. ©
Gov. John Kasich will give his State of the State address today in Lima, where he is expected to cover his budget plan, jobs and tax reform. It will air live at The Ohio Channel at 6:30 p.m. During his last State of the State speech, the governor lacked focus, imitated a Parkinson’s patient and called Californians “wackadoodles,” leading outlets like The Hill to call the speech “bizarre.”
The next state superintendent of public instruction could be Richard Ross, Gov. John Kasich’s education policy adviser, or acting superintendent Michael Sawyers, according to StateImpact Ohio. Ross apparently has Kasich’s support, making him a favorite. Stan Heffner, the previous state superintendent, was forced to resign after misusing state resources.
New legislation will be introduced by Vice Mayor Roxanne Qualls and Councilman P.G. Sittenfeld to City Council today to require all rental properties to be equipped with photoelectric smoke detectors. The photoelectric detectors have better protection against smoldering, smoky fires, which cause more fatalities than the flaming, fast-moving fires picked up by ionization form of detectors, according to the vice mayor’s office. Qualls and Sittenfeld are introducing the legislation after hearing stories from Dean Dennis and Doug Turnbull of Fathers for Fire Safety, who both lost children to house fires.
The Horseshoe Casino’s parking plan was revealed yesterday, reports WVXU. Parking will be free for guests on opening day from 6 p.m. to 6 a.m. It will also remain free on weekends. Weekday parking will be free for guests who play slots or table games for 30 minutes, play an hour of poker or spend at least $25 in a restaurant or gift shop. Otherwise, parking will cost $1 for the first hour, up to a daily maximum of $14.
Restaurants around the country are discovering that fewer calories brings better health and business, according to Dayton Daily News.
Ohio gas prices are continuing their movement up, according to the Associated Press.
Glass was found in Kellogg’s Special K Red Berries cereal, prompting a recall, reports WCPO.
Burger King’s Twitter account was hacked yesterday, which raises all-important questions: How did anyone notice? Why are people following fast food chains on Twitter?
Popular Science has an in-depth report on how neuroscience will allow scientists to rewire the brain to battle seizures, dementia, blindness, paralysis and deafness.
New legislation will be introduced by Vice Mayor Roxanne Qualls and Councilman P.G. Sittenfeld on Feb. 19 to require all rental properties to be equipped with photoelectric smoke detectors.
Photoelectric detectors are supported by fire safety advocates because they better detect smoldering, smoky fires. According to the vice mayor’s office, these kinds of fires have been linked to more fatalities than the flaming, fast-moving fires picked up by the more traditional ionization smoke detectors.
The ionization detectors also pose another risk: They are often set off by cooking fumes, leading many homeowners and tenants to simply pull out the batteries to turn the detectors off. In some cases, people forget to put the batteries back in, putting them at greater risk of a fatal fire.
Ionization detectors are more common in homes because they are typically cheaper. Their ability to pick up fast-moving fires also makes them better suited for catching fires that can spread more quickly.
Qualls and Sittenfeld are introducing the legislation after hearing stories from Dean Dennis and Doug Turnbull of Fathers for Fire Safety, who both lost children to house fires. “After meeting with Dean and Doug, hearing their story and learning more about photoelectric alarms, we knew we had to do something locally to better protect citizens,” Qualls and Sittenfeld said in a joint statement.
The legislation has been endorsed by the Cincinnati Real Estate Investors Association and the Greater Cincinnati Northern Kentucky Apartment Association. Representatives from both organizations will join Qualls, Sittenfeld, Dennis, Turnbull and Fire Chief Richard Braun in a press release unveiling the legislation at 10 a.m. on Feb. 19.
The National Fire Protection Association recommends the use of both kinds of detectors. Hybrid detectors with both photoelectric and ionization technologies can be purchased, but they are more expensive than their individual counterparts.
With a resolution passed Wednesday, City Council is urging state legislators to maintain the energy efficiency standards that helped drive Cincinnati’s clean energy growth.
State Sen. Bill Seitz, a Cincinnati Republican who chairs the Public Utilities Committee, sent out a memo Feb. 1 that suggested “a meaningful review” of the state’s energy efficiency standards, which were previously established by Senate Bill 221 in 2008 and Senate Bill 315 in 2012. In the memo, Seitz wrote he was open to freezing and weakening some of the established standards.
Environmental groups responded by calling on local governments to defend the standards. In Cincinnati, the
call was picked up by Councilman Chris Seelbach, who touted
the city’s past clean energy efforts in a statement: “Cincinnati has
made great strides in energy efficiency by seeking cost savings while
boosting our city’s green image. Energy efficiency is helping Cincinnati
support a double bottom line of environmental and economic
sustainability, and we endorse full implementation of our state
The city estimates it saves $1 million a year on energy bills because of the law’s efficiency programs, which includes upgrades and weatherization projects.
Christian Adams, a clean energy associate of Environment Ohio, praised Cincinnati for passing the resolution in a statement: “From efficiency to solar, Cincinnati [is] a state leader on clean energy, and it’s proving to be a win-win-win for consumers, the environment and the economy. If state lawmakers want to change our clean energy law, they should follow Cincinnati’s lead and double-down on wind, solar and energy efficiency.”
In a previous report, Environment Ohio claimed Cincinnati could become the solar energy capital of the region. CityBeat covered the report and Cincinnati’s — particularly the Cincinnati Zoo’s — success with solar energy (“Solar Cincinnati,” issue of Dec. 19).
Ohio Attorney General Mike DeWine is proposing training school staff and teachers to be first responders in the case of an attack. The news comes in the wake of the massacre in Sandy Hook Elementary School in Newtown, Conn., which caused the deaths of 20 children and six adults. CityBeat proposed its own solution in this week’s commentary: Make this time different by focusing on mental health services and gun control.
Cincinnati will lease Music Hall for 75 years to the Music Hall Revitalization Company (MHRC). The lease is part of a plan to renovate the iconic building to include more comfortable seating, extra restroom capacity, heating, air conditioning, improved plumbing and new escalator models. During the renovations, Music Hall will be closed for 17 months.
City Council passed a resolution promising not to use Metro bus money for the streetcar. The supposed conflict between the city of Cincinnati and the Southwest Ohio Regional Transit Authority (SORTA) is being drummed up by the media, but it’s really much ado about nothing.
Metropolitan Sewer District rates will go up by 5 percent in early 2013.
The Cincinnati Health Department is pushing
recommendations from a lead hazard study. The recommendations would
prohibit lead-based paint hazards and require all properties to be free
of lead-based paint, dust and soil. City Council is asking the health
department to carry out the regulations, and it expects from a plan and
timetable from regulators within 60 days. One study found getting rid of lead would do wonders for school performance
A Brookings Institute ranking placed Greater Cincinnati among the worst areas in the country due to falling home prices.
Cincinnati-based Fifth Third Bank agreed to a $16 million settlement in a securities fraud case. The four-year-old lawsuit was brought in the onset of 2008’s financial crisis, when the bank’s stock plummeted as it took several large writedowns.
Cincinnati’s Horseshoe Casino still needs to fill 450 positions in food and beverage, marketing, finance, security and more. A Washington Post analysis found casinos tend to bring jobs, but they also bring crime, bankruptcy and even suicide.
As expected, hydraulic fracturing, or fracking, is helping Ohio’s economy. The state has 39,000 jobs attached to oil and gas this year, and the number is expected to triple by the end of the decade. To take advantage of the boom, Ohio Gov. John Kasich says he will push his oil-and-gas severance tax in 2013. But the plan faces opposition from liberals and conservatives.
If Ohio Republicans tried to push “right-to-work” legislation, it would lead to a very nasty public fight, The Plain Dealer reports. Kasich and Republican lawmakers didn’t rule out using ballot initiatives to push conservative ideas like right-to-work in a press conference yesterday, but he did say he’s like a horse with blinders on, focusing on job creation.
The animal and robot takeover have been merged in the BigDog robot. It can now obey voice commands, follow and roll over.
In hopes of quashing rumors, City Council on Wednesday passed a resolution promising not to use Metro bus money on the streetcar.
The Southwest Ohio Regional Transit authority had voted Tuesday on an agreement with the city that contained a provision saying money from the $42 million transit fund that pays for bus operation can’t be used on the streetcar.
The agreement needs to be signed by the city as well in order to release millions of dollars in federal grants to help fund the streetcar. The city has pledged to match those grants with local funds. SORTA wants to make sure the transit fund isn’t used for that purpose, but the city wants to have the freedom to use that money on any transportation project.
At least one council member questioned the necessity of passing the resolution.
Chris Seelbach said that nobody on council or in the city administration had proposed or would propose using transit money on the streetcar.
“I don’t understand why we would need a provision in any contract that would make us not be able to, when nobody’s proposing that we do it,” he said.
The resolution has no legal standing preventing council from later coming back and using transit funds for the streetcar, but Qualls said she hoped it put citizens’ minds at rest regarding their intentions.
Mayor Mark Mallory on Monday published an editorial in The Enquirer promising that the transit money wouldn’t be used for the streetcar.
He went further on Wednesday and said during council’s meeting that he as mayor would never approve the use of transit money for the operation of the streetcar.
Council also passed a one-month budget for SORTA, requiring that they come back next month to pass another one.
Councilman Chris Smitherman accused Mallory of trying to flex political muscle in the budget to strong-arm SORTA into taking out the provision disallowing the use of transit funds for the streetcar. He questioned the timing of passing a SORTA budget the day after the transit authority voted to prevent transit funds being used for the streetcar.
Councilman Charlie Winburn — council's sole Republican — walked out of a Budget Committee meeting in advance of the vote.
However Councilwoman Yvette Simpson said it made sense to pass the one-month budget because it forbid SORTA from using taxpayer money to sue the city.
City Solicitor John Curp said it was SORTA’s position in the lawsuit that it should be the one deciding how transit funds are used, not the city.
In light of the Newtown, Conn., massacre, a City Council member wants metal detectors put back in City Hall.
Democratic Councilman Cecil Thomas says he’s always been concerned about security, and he hopes recent bouts of gun violence will make it clear more protective steps are necessary.
Thomas argues City Hall should not be an exception to a practice that’s carried out in other government buildings. He points to federal and county buildings and other city halls around the nation, which tend to use metal detectors.
Thomas, who was a police officer until 2000, acknowledges metal detectors are a “little bit of an inconvenience” to visitors, but he adds, “These are times when a little bit more inconvenience can go a long way to possibly save a lot of lives.”
So City Hall could get more security, but what about the city as a whole? Earlier today, Vice Mayor Roxanne Qualls announced City Council will work on a resolution to encourage Congress to pass new gun regulations at a federal level. Beyond that, Thomas says not much is likely.
The problem is state law trumps local law when it comes to gun regulations, so City Council’s hands are tied on the issue. “I would like to see us be able to control our own destiny as it relates to gun laws, but, obviously, I have no control over that,” Thomas says.
Metal detectors were in place at City Hall until 2006, when Mayor Mark Mallory had them taken down to make City Hall more open to the public.
Cincinnati City Council on Friday approved a budget that relies on parking privatization as a means to plug a $34 million budget deficit while also raising property taxes in 2014.
Mayor Mark Mallory opened up the council meeting with a moment of silent prayer for the 27 students and adults killed at an elementary school in Connecticut.
“I want us all to take a moment and put into perspective what we’re doing today,” he said.
Council voted to increase the property tax by about 24 percent, from 4.6 mills (a mill is equal to one-tenth of a cent) to 5.71 mills. That means Cincinnatians would pay an additional $34 for every $100,000 of their home’s value.
The vote reverses a move made last year by conservatives on council, who reduced property taxes.
Council also passed a budget that relies on $21 million from a proposed lease of the city’s parking facilities — a deal that is expected to be voted on in March. Of the proposals submitted to the city so far, Cincinnati stands to gain $100 million to $150 million in an upfront payment and a share of the profits over the 30-year lease.
“My concern about balancing this budget with a onetime revenue source by selling our parking system seems to be ill advised,” said Independent Councilman Chris Smitherman. “We don’t know how council will vote in March … but we have tied not only the budget to this one time revenue source, but we have also tied reciprocity.”
Council nixed a plan to eliminate tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities.
Though the budget doesn’t mention parking privatization, council hasn’t mentioned other options to close the budget deficit.
If opponents of parking privatization want to keep facilities under city control, they would have to come up with $21 million in revenue elsewhere or make $21 million in cuts.
Councilman P.G. Sittenfeld suggested using casino revenue, cutting travel expenses, downsizing the ratio of managers to workers, sharing services with nearby jurisdictions and downsizing the city’s fleet as ways to cut down the budget.
Councilwoman Laure Quinlivan, long an advocate of downsizing the police and fire departments, voted against the property tax increase in protest of what she said was bloated spending on departments that were outpacing population growth.
The budget also requires Cincinnati to accept police and fire recruit classes in 2014, regardless of whether the city gets a federal grant to fund the classes.
The budget also restores the Cincinnati Police Department’s mounted patrol, which patrols downtown on horseback. The city will use $105,000 from off-duty detail fees from businesses that hire off-duty officers. Council also voted to start charging those businesses an extra $1.64 on top of the off-duty pay.
Council also voted to shift $50,000 for repairs and upgrades to the Contemporary Arts Center to pay for maintenance and beautification at Washington Park, which is operated by 3CDC.
There’s a catch — municipal employees only get the raises and job security if the city’s parking meters, garages and surface lots are leased to a private company for 30 years.
City Manager Milton Dohoney wants to lease the facilities for at least $40 million upfront and a share of parking profits for the next 30 years. He’d use $21 million of the upfront payment to patch a $34 million deficit in the city’s budget.
During recent budget hearings before City Council, Dohoney said extra revenue was needed to avoid the layoff of 344 city employees.
In a memo to the mayor and city council members, Dohoney outlined the agreement between the city and the American Federation of State, County and Municipal Employees (AFSCME).
Any municipal employees who will lose their jobs because of the deal would be placed in other city jobs with no loss of wages. No city employees covered by the union would be laid off between 2013 and 2016. City employees will receive a 1.5 percent cost of living raise for the 2013-2014 contract year and another 1 percent raise for the next contract year. AFSCME members will continue city vehicle maintenance work from 2013-2016.
However, if City Council doesn’t approve of the plan to privatize parking, city employees get nothing.
Public employees in Cincinnati have not been given raises in almost four years. Meanwhile, council voted last month to give Dohoney a 10 percent raise and a $35,000 bonus. Dohoney had not received a merit raise since 2007, but had collected cost of living adjustments and bonuses over the years.
The resolution expresses council’s dissatisfaction with the Ohio Legislature for granting “special privileges to the oil and natural gas industry” and asks it to repeal any laws that pre-empt local control over drilling.
The resolution targets the controversial practice of hydraulic fracturing or “fracking,” which uses chemically-laced water to free up natural gas trapped in shale formations underneath Ohio.
Fracking opponents worry that the chemicals used in the fluid — which companies aren’t required to disclose — can be toxic to people and animals.
Prior to the council vote, Vice Mayor Roxanne Qualls and Councilwoman Laure Quinlivan held a news conference on the steps of City Hall.
“I believe local officials should have a say on all matters related to potentially hazardous activities such as fracking,” Quinlivan said in an emailed statement. “I urge my colleagues to send a strong message to the Ohio Governor, the Ohio Legislature, and Cincinnati residents by passing this resolution.”
A 2004 state law puts regulation of oil and gas drilling
under the state’s purview, preventing municipalities from regulating
drilling on their land.
Copies of the resolution will be sent to Gov. John Kasich and members of the Ohio General Assembly elected from the Cincinnati area. The resolution comes after Ohio recently lifted a moratorium on new injection wells, which shoot wastewater deep underground for storage.
There had been a temporary ban on new wells almost a year ago after seismologists said an injection was to blame for 11 earthquakes around the Youngstown area.
City council in August passed an ordinance to band injection wells within city limits. Because the injection well ban doesn’t mention drilling, council hoped it wouldn’t clash with the state law preventing local regulation of oil and gas drilling.