Councilman P.G. Sittenfeld on Monday announced he will vote to continue the $132.8 million streetcar project.
Sittenfeld’s support for the project means the incoming City Council might not have the six votes required for an emergency clause that would immediately halt the project and make a cancellation vote insusceptible to referendum.
If streetcar supporters successfully put a cancellation vote to referendum, the project would be forced to continue until the streetcar once again appears on the ballot in November 2014. The continuation would sink more costs into the project as construction is forced to progress for nearly a year.
Sittenfeld’s announcement preceded a vote from the outgoing City Council to officially write the streetcar project into law, which means Mayor-elect John Cranley, a streetcar opponent, won’t be able to take administrative action to halt the project and instead must bring the project to a City Council vote after he and other newly elected officials take office on Sunday.
The two remaining swing votes in the incoming council — David Mann, who Cranley on Monday named as his choice for vice mayor, and Kevin Flynn — previously discussed delaying the project as council analyzes whether it should permanently cancel or continue with currently ongoing construction.
But Sittenfeld equated a delay to total cancellation after warnings from the federal government made it clear that the city could lose federal funds for the project even if it only delayed progress.
If either Flynn or Mann move to support the streetcar project, streetcar proponents would gain a five-vote majority on the nine-member council to continue the project and preclude a referendum.
Sittenfeld characterized his decision as the better of “two bad choices.”
“We can pursue a project that has never earned broad public consensus and that has yet to offer a viable and sustainable budget,” he said at a press conference, “or we can scrub the project and throw away tens of millions of dollars in taxpayer money, forgo a massive federal investment and have nothing to show for the enormous effort and expense.”
To explain his decision, Sittenfeld cited concerns about how much money has been dedicated to the project at this point, including $32.8 million in sunk costs through November and a potential range of $30.6-$47.6 million in close-out costs, according to estimates from the city. Sittenfeld noted that, at the very least, half of the city’s $87.9 million share of the project will be spent even if the city pulls the plug now.
Sittenfeld also voiced concerns that pulling back from the project and effectively forfeiting $44.9 million in allocated federal funds would damage Cincinnati’s reputation with the federal government. That could hamper projects he sees as much more important, such as the $2.5 billion Brent Spence Bridge project.
“I did my part to avoid getting us into this reality, but it cannot be wished away,” Sittenfeld said.
There was one major caveat to Sittenfeld’s decision: the operating costs for the streetcar, which the city estimates at $3.4-$4.5 million a year.
Sittenfeld said the cost must not hit Cincinnati’s already-strained operating budget and instead must be paid through fares, sponsorships, private contributions and a special improvement district that would raise property taxes near the streetcar line.
A special improvement district would require a petitioning process in which property owners holding at least 60 percent of property frontage near the streetcar line would have to sign in favor of taking on higher property taxes to pay for the streetcar.
“Ultimately, that’s a decision for the citizens,” Sittenfeld said.
If the special improvement district doesn’t come to fruition, Sittenfeld cautioned that the streetcar project would be more difficult to support going forward.
Asked whether Sittenfeld thinks some of the people who voted for him will see his decision as a betrayal, he responded that his conclusion shows the “thoughtfulness and carefulness” people expect of him when it comes to taxpayer dollars, given the costs of cancellation.
For the third time, a representative from the federal government yesterday reiterated to Cincinnati officials that if the $132.8 million streetcar project is canceled, the city would lose $40.9 million in federal funds and another $4 million would be left to the discretion of the state government, which could allocate the money anywhere in Ohio. The repeated reminders are necessary as Mayor-elect John Cranley and the incoming City Council prepare to delay or potentially terminate the project once they take office in December. Federal Transit Administration (FTA) Chief Counsel Dorval Carter said even a mere delay could lead to the federal government restricting or outright terminating the federal grant deals. But Cranley, a long-time opponent of the streetcar project, appeared unfazed by the news at a press conference following Carter's thorough explanation. "If we have to, we’ll give the money back," he said.
Cranley yesterday announced his intent to appoint Councilman-elect David Mann as his vice mayor. Cranley said Mann passed the "bus test," an unfortunate hypothetical scenario in which the mayor dies after being hit by a bus. Cranley also cited Mann's numerous accomplishments, ranging from achievements at Harvard University to previous stints as mayor when top vote-getter in the City Council race automatically assumed the position. Mann promised to work with Cranley to make his administration a success and respectfully disagree but move on when the two men differ.
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Although it has already been explicitly stated in two letters from the federal government, Federal Transit Administration (FTA) Chief Counsel Dorval Carter on Monday reiterated that if Cincinnati were to unravel the $132.8 million streetcar project, the city would lose $40.9 million in federal grants and another $4 million in federal funds would be transferred to the state government, which could appropriate the money to any project in Ohio.
The clarification is necessary because Mayor-elect John Cranley and a majority of the incoming City Council are looking into pausing and potentially canceling the streetcar project once they take office in December. Cranley says he will lobby the federal government to reallocate the federal funds, even though the federal government has repeatedly insisted it’s not going to happen.
Carter joined City Council’s Budget and Finance Committee on the phone on Monday to walk council members through the legal technicalities involved in cancellation and how the federal government would react to such circumstances.
According to Carter, merely delaying the project at this point would break the city’s agreement with the federal government and lead the federal government to restrict the federal funds, ask the city to repay the money it already spent or terminate the deal altogether.
Still, Carter said cancellation might not hurt the city’s chances, at least from a legal perspective, of obtaining federal funds for other projects.
“It will not preclude you from pursuing other projects,” he said. “You would just have to pursue those on their own merits.”
But Carter agreed with Vice Mayor Roxanne Qualls that the city’s credibility could be weakened if the streetcar project were canceled.
President Barack Obama’s administration has prioritized light rail projects like the streetcar, according to Carter, so the reclaimed federal money would likely go to other cities pursuing similarly ambitious transit projects.
At a press conference following the council meeting, Cranley appeared unfazed by the news.
“If we have to, we’ll give the money back,” he said.
Although much noise was made about the council meeting, there wasn’t much news in the way of substance. The federal government already outlined the cancellation costs in separate letters sent to Mayor Mark Mallory in June and earlier in November.
Streetcar Project Executive John Deatrick yesterday revealed that the city might only keep $7.5-$24.5 million if it cancels the $132.8 million streetcar project, after accounting for $32.8 million in sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and $44.9 million in lost federal grant money. But Mayor-elect John Cranley flatly denied the numbers because he claims the current city administration “is clearly biased toward the project and intent on defying the will of the voters.” Meanwhile, at least two of the potential swing votes — incoming council members David Mann and Kevin Flynn — showed skepticism toward the estimates, although Mann said, “If they do hold up, that’s fairly persuasive.” Three elected council members already support the streetcar project, so only two of the three potential swing votes would need to vote in favor of it to keep it going.
Ohio’s unemployment rate rose to 7.5 percent in October, up from 6.9 percent a year before. The state added only 27,200 jobs, which wasn’t enough to make up for the 31,000 newly unemployed throughout the past year. The numbers
paint a grim picture for a state economy that was once perceived as one of the
strongest coming out of the Great Recession. In comparison, the U.S.
unemployment rate actually decreased to 7.3 percent from 7.9 percent
between October 2012 and October 2013. (This paragraph was updated with the nonfarm numbers.)
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That means the city could potentially spend more than 94 percent of the project’s total costs before it manages to fully close down the streetcar project, which is currently undergoing construction and tied up to various federal grants and business contracts.
The presentation was given in advance of Mayor-elect John Cranley and the newly elected City Council taking office in December. Cranley is an ardent opponent of the streetcar project, and a majority of the City Council says it wants to pause the project and consider cancellation.
Cranley’s proposed alternative to the streetcar — a trolley bus system
— would cost $10-$15 million in capital funds, according to supporters of the rubber-tire trolley alternative. If streetcar cancellation costs were to reach the high end of the city’s estimate and the trolley bus is paid for, the city could end up spending $140.3 million to cancel the streetcar project and build a
considerably less ambitious trolley bus line — about $7.5 million more
than it would cost to simply complete the streetcar project.
If it’s completed, Cincinnati Budget Director Lea Eriksen says operating the streetcar would cost between $3.4-$4.5 million each year, which city officials say could come from various potential sources, including a special improvement district that would raise property taxes within three blocks of the streetcar route.
But the operating budget cost would be a wash if Cranley pursues the trolley bus system, which, according to advocates, will cost slightly more to operate than the streetcar. Cranley says the operating cost for the trolley bus is concerning if it holds true.
Following Deatrick’s presentation, Cranley held a press conference in which he flatly denied the current city administration’s estimates. He says he will tap new experts to run over the numbers while the project is put on pause.
“We’re going to bring in new, objective leadership, not the current leadership that is clearly biased toward the project and intent on defying the will of the voters, which was clearly expressed a couple weeks ago in this election,” Cranley says.
Deatrick’s cancellation projections account for $32.8 million in estimated sunk costs through November and a potential range of $30.6-$47.6 million in close-out costs, which include construction to close the project — such as repaving torn-up roads — and orders on vehicles and other supplies that are already placed but not officially billed.
The federal government has also allocated $44.9 million in federal grants to the streetcar project. In a letter released by the city administration on Nov. 14, the Federal Transit Administration (FTA) explicitly stated that $40.9 million would be taken back if the project didn’t adequately progress; the remaining $4 million would be left under the supervision of Gov. John Kasich, who could shift the money to other parts of the state.
But Deatrick’s estimates don’t consider the unknown cost of litigation, which would need to come out of a city operating budget that is already structurally imbalanced, according to Meg Olberding, the city’s spokesperson.
The estimates also don’t consider that the city could potentially forgo spending $7.4 million in contingency funds on the project if it goes through completion and remains within budget, which would lower the project’s effective cost to $125.4 million.
If the city cancels the project, Deatrick says it’s also more likely that the city would lose in its legal battle against Duke Energy, which could add up to $15 million in costs. That money is tentatively allocated from the sale of the Blue Ash Airport as the city and Duke argue in court as to who has to pay for moving utility lines to accommodate for the streetcar tracks.
Those are the potential financial costs, but city officials also warn that canceling the project could have a detrimental impact on the city’s image.
“That’s what the city would be known for forever,” says Councilwoman Laure Quinlivan. “To throw this away would be unconscionable.”
City officials also warn that canceling would be pulling back on a light rail project that President Barack Obama’s administration has clearly prioritized.
“The city-federal relationship is excellent right now,” Deatrick says. “There would be immediate damage to that.”
The 200-plus workers currently involved the project would also be displaced. Councilwoman Yvette Simpson points out pausing or canceling the project in December would leave those workers jobless for the holiday season.
Another concern is the impact of cancellation on the relationship between the federal government and Southwest Ohio Regional Transit Authority (SORTA), which operates the Metro bus system and will operate the streetcar if it’s completed. If the city is unable to pay back the grants to the federal government within 30 days, Deatrick says the FTA could cut SORTA grants for bus service and potentially halt some local bus services.
One concern raised by Councilman Chris Seelbach and Councilman-elect Kevin Flynn, one of the three potential swing votes in the incoming council of nine, is whether the project’s estimated return on investment is still 2.7-to-1 over 35 years. That number is derived from a 2007 study conducted by consulting firm HDR, which was later evaluated and affirmed by the University of Cincinnati.
Deatrick points out the numbers were re-evaluated by HDR in 2011, and they still seem to hold true. He says there are still plenty of vacant buildings along the 3.6-mile streetcar line that could use the encouraged investment, despite some of the revitalization seen in the Over-the-Rhine and downtown areas that the streetcar route would cover.
The 2.7-to-1 return on investment is also “a very, very conservative estimate,” says Deatrick. He claims HDR could have relied on numbers from other cities, such as Portland, Ore., that saw considerably better returns on their streetcar systems.
Still, Flynn and Councilman-elect David Mann, another potential swing vote, say they want to scrutinize the cancellation estimates before making a final decision on the project.
Vice Mayor Roxanne Qualls, a long-time streetcar supporter who lost to Cranley in her mayoral bid, encourages a re-examination of the numbers. But she cautions, “If what has been presented today stands up to scrutiny, there’s absolutely no reason to cancel the project.”
Flynn won’t say whether he would reconsider his past opposition to the project if the numbers hold up. But Mann says, “If they do hold up, that’s fairly persuasive.”
Both Flynn and Mann also say that they would be willing to pause the project while clearer estimates are crunched.
But that could present a short time window. If the project doesn’t adequately progress, the federal government could take back its grant money. Based on city officials’ estimates, that provides a 30-day window to re-calculate cancellation costs and the potential return on investment.
Pausing the project would also impose its own set of costs as some workers and equipment are retained.
Councilman P.G. Sittenfeld, who’s also seen as a swing vote, could not be reached for comment. He’s currently in Washington, D.C., to meet with White House officials for an issue unrelated to the streetcar.
Three elected council members already support the streetcar project, so only two of the three potential swing votes would need to vote in favor of it to keep it going.
Updated with Mayor-elect John Cranley’s comments and clearer, corrected numbers.
Hundreds of streetcar supporters packed the Mercantile Library last night outlining the several different ways they plan to campaign to save the project — including various forms of litigation The Enquirer typically enjoys playing up as potentially costly to taxpayers — a story similar in concept to the anti-streetcar protests The Enquirer gave attention to leading up to the election.
The Enquirer’s cursory wrap-up of the event was removed from the cincinnati.com homepage this morning, and it's currently not even listed on the site's News page even though it was published more recently than several stories that are. Left behind on the homepage is a real joke of analysis: the fact that the $1.5 million monthly construction cost divided by 30 days in a month amounts to $50,000 per day, assuming workers put in the same amount of time every day in a month and the city gets billed that way, which it doesn’t.
The $1.5 million figure has been known for weeks, but $50,000 per day sounds dramatic enough that concerned taxpayers everywhere can repeat it to other ill-informed people at the water cooler. If these math whizzes wanted to really piss people off they would have broken it all the way down to $34.70 per minute, 24 hours a day. Man, fuck that streetcar!
At least the story’s third paragraph offered a piece of recent news: Halting construction will still cost the city $500,000 per month because it will be on the hook for workers who can’t be transferred and costs of rental equipment that will just sit there. (For Enquirer-esque context: It will still cost $16,667 per day or $11.57 a minute to temporarily halt the project.)
Also, the note in the headline (“Streetcar, which Cranley plans to cancel, still costing $50K a day”) reminding everyone that Cranley plans to cancel the project that is currently costing money seems unnecessary considering THE ONLY THING ANYONE HAS HEARD ABOUT SINCE THE ELECTION IS THAT CRANLEY PLANS TO STOP THE STREETCAR. It does nicely nudge readers toward the interactive forum they can click on and publicly lament how people who don’t pay taxes have too much control over our city.
(Additional professional advice: Consider changing the subhed from, “It'll be costly to stop, and costly to go on, but work continues until Cranley and new council officially stop it” to something that doesn’t sound like you have no idea what the fuck is going on.)
For context, the following are the streetcar stories currently presented on the website homepages of local media that have more talent/integrity than The Enquirer:
Cincinnati Business Courier: Feds: If you kill the streetcar, we want our money back
CONSERVATIVE MEDIA BONUS: 700WLW even has a relevant piece of streetcar news, although you have to scroll past a video of Russian kids wrestling a bear and an article suggesting that Obamacare is the president’s Katrina (whatever that means): Feds: Use money for streetcar or pay it back.
Supporters of the $133 million streetcar project packed Mercantile Library and Fountain Square last night to start a two-week campaign to prevent Mayor-elect John Cranley and the newly elected City Council from halting the ongoing project. The goal is to convince at least five of the nine newly elected council members to support the project. So far, streetcar supporters have at least three pro-streetcar votes: Chris Seelbach, Yvette Simpson and Wendell Young. Now, they’re trying to convince another three — Kevin Flynn, David Mann and P.G. Sittenfeld — to support continuing the project; all three spoke against the streetcar on the campaign trail, but they’ve recently said they want a full accounting of the project’s completion costs, cancellation costs and potential return of investment before making a final decision. CityBeat covered the campaign and the people involved in greater detail here.
Hours before the event began, Mayor Mark Mallory released a letter from the Federal Transit Administration that explicitly stated canceling the project would cost Cincinnati nearly $41 million in federal funds and another $4 million would be left under the discretion of Gov. John Kasich, who could shift the money to other parts of Ohio. Cranley previously stated he could lobby the federal government to re-appropriate the money to other city projects, but the letter makes it quite clear that’s not in the plans right now. On the elevator ride up to the Mercantile Library event, Sittenfeld commented on the letter to CityBeat, “I will say that today's news is a big gain in the pro-streetcar column.”
City Council yesterday accepted the resignation of City Manager Milton Dohoney, just one day after Cranley announced Dohoney’s leave and his support for it. Although council members acknowledged they had to accept the resignation in lieu of the Nov. 5 election results, they said they were unhappy with the behind-the-scenes approach that was taken by Cranley throughout the process. For the year following his resignation, Dohoney will receive $255,000 in severance pay and health benefits through the city, which will cost an already-strained operating budget that’s been structurally imbalanced since 2001.
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Ohio Secretary of State Jon Husted urged the Ohio Constitutional Modernization Commission to address politicized redistricting. Under the current system, the political party in charge — the last time around, Republicans — can use demographic trends to redraw congressional district boundaries to maximize the votes of supporters and split and dilute the votes of opponents. Although Husted is now calling for reform to make redistricting more representative of the state’s actual political make-up, he opposed a ballot initiative in 2012 that would have placed an independent committee in charge of redistricting.
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Supporters of the $133 million streetcar project on Thursday night packed Mercantile Library and Fountain Square to start a two-week campaign that seeks to prevent the incoming mayor and City Council from canceling the ongoing project.
Turnout was particularly strong as supporters reached the 200-person capacity at Mercantile Library before the event started. Another 200 watched the event from the Jumbotron screen at Fountain Square, according to the event's organizers.
In attendance were several Over-the-Rhine business owners and residents; council members P.G. Sittenfeld, Chris Seelbach and Wendell Young; and several supporters of the project from around the city.
The goal of the event was to organize supporters and begin a lobbying campaign to convince the three perceived swing votes in the incoming council — Sittenfeld, David Mann and Kevin Flynn — to support continuing the project. All three have spoken against the streetcar in the past, but they told CityBeat they want to fully account for the project's cancellation costs, completion costs and potential return on investment before making a final decision.
Speakers urged supporters to contact the nine newly elected council members and raise awareness about the streetcar's benefits before Mayor-elect John Cranley, who opposes the streetcar project, and the new City Council take office in December.
Ryan Messer, a lead organizer of the effort to save the streetcar, spoke about the advantages of the streetcar project for much of the event. "This is a good economic tool that helps all of Cincinnati," he repeatedly stated.
Supporters have some empirical evidence to base their claims on. A 2007 study from consulting firm HDR found the streetcar project would generate a 2.7-to-1 return on investment over 35 years. The HDR study was later evaluated and supported by the University of Cincinnati.
Project executive John Deatrick acknowledges the 2007 study is now outdated and the city is working on updating the numbers. But he says the streetcar project is supposed to be viewed as an economic development vehicle, not just another transit option.
Supporters also warned of the potential costs of canceling the streetcar project. Hours before the gathering, Mayor Mark Mallory released a letter from the Federal Transit Administration that explicitly stated the city would lose nearly $41 million in federal grant dollars if the project were canceled, and another $4 million would be placed in the hands of Gov. John Kasich to do as he sees fit.
City spokesperson Meg Olberding previously told CityBeat that the city already spent about $2 million of the federal funds. If the project were canceled, she says the money would have to be repaid through the operating budget that funds police, firefighters and human services instead of the capital budget currently financing the streetcar project.
The operating budget has been structurally imbalanced since 2001, so adding millions in costs to it could force the city to cut services or raise taxes.
The FTA letter might already be playing an influence for at least one of the swing votes on City Council. On the elevator ride up to Mercantile Library, Sittenfeld told Seelbach and CityBeat, "I will say that today's news is a big gain in the pro-streetcar column."
Another threat for the city is potential litigation from contractors, subcontractors, taxpayers and Over-the-Rhine residents and businesses who invested in the project or along the streetcar line with the expectation that the project would be completed.
Litigation costs would also come out of the operating budget, according to Olberding.
"As a trial lawyer, this is actually appealing," said Democratic attorney Don Mooney. "For the city, not so much."
Supporters also outlined the potential damage that pulling from the project could do to the city's image, given that developers, businesses and the federal government have put their support and dollars toward the streetcar.
"Is Cincinnati that city that will dine you and wine you and leave you alone at the altar?" Young asked.
But if the lobbying effort, cancellation costs and threat of litigation aren't enough, supporters also presented one more option to save the streetcar: a ballot initiative. Mayor-elect John Cranley on Thursday told The Cincinnati Enquirer that he would be open to allowing some sort of streetcar referendum on the ballot.
The ultimate goal for supporters of the streetcar, beyond ensuring sustainable growth in the urban core, is to connect all of Cincinnati through a vast transit network, much like the streetcar lines that ran through Cincinnati before the city government dismantled the old system in the 1950s.
That provides little assurance to opponents of the streetcar project. Cranley and at least three hard-liners in the incoming City Council — Amy Murray, Charlie Winburn and Christopher Smitherman — claim the project is too expensive and the wrong priority for Cincinnati. Discussing more phases makes the project appear even costlier to opponents who are already concerned with costs.
In its comprehensive plan for 2040, the Ohio-Kentucky-Indiana Regional Council of Governments put the cost of various extensions — to the University of Cincinnati and surrounding hospitals, the Cincinnati Zoo, the Cincinnati Museum Center and the Broadway Commons area near the Horseshoe Casino — at more than $191 million, or $58 million more than the estimated cost for the current phase.
But if Cincinnati never completes the first phase of the streetcar project, supporters say it could be decades before other light rail options are considered.
Cincinnati could lose up to $45 million in federal funds if it cancels the $133 million streetcar project, according to a new letter from the Federal Transit Administration released on Thursday by Mayor Mark Mallory.
The letter confirms much of what was stated in a previous June 19 letter to Mallory, and it presumably acts as a warning to Mayor-elect John Cranley, who intends to permanently cancel ongoing construction on the streetcar project once he takes office in December.
Cranley previously said he could lobby the federal government to re-appropriate the money to other projects, but the FTA letter unequivocally states the money is only for the streetcar project.
“FTA’s oversight contractor for the Project informs me that the City’s expenditures plus committed costs on the Project as of this date exceed $116 million, which is approximately 88 percent of the total project cost,” wrote FTA administrator Peter Rogoff. “These commitments include many construction activities that cannot be easily reversed — the City has relocated utilities, embedded rail in City streets, and purchased streetcars. Should the City choose to prematurely terminate the Project, all cost associated with closing down the project, including any claims from the contractors, will not be eligible for any federal reimbursement.”
The letter confirms that, as CityBeat originally reported, canceling the streetcar project carries its own costs.
Should the city cancel the project, it would first need to return nearly $41 million in federal grant money. The remaining $4 million in federal funds would fall under the discretion of Gov. John Kasich, who could shift the money to other parts of Ohio.
City spokesperson Meg Olberding previously told CityBeat
the city already spent $2 million of the federal funds. Olberding said the $2 million in repayments would need to come out of the operating budget
that pays for cops, firefighters and human services instead of the
capital budget that’s currently financing the streetcar project.
Since the operating budget has been structurally imbalanced since 2001, adding millions in costs could force the city to cut additional services or raise taxes.
Upon cancellation, the city would also need to pay back some of the $94 million in standing contractual obligations for the streetcar project. In many cases, the obligations reflect supply orders and other expenses contractors and subcontractors already took on but haven’t officially billed to the city. If the project were canceled, city officials say the already-spent money would need to be paid back, along with extra costs to close the project — to repave torn-up streets, for example.
Project executive John Deatrick previously told CityBeat that paying back the contractual obligations could involve litigation, which would also be paid for through the operating budget, as the city tries to minimize cancellation costs and private contractors try to recoup as much as they can from the project.
All of that is on top of the $23 million that’s already been billed to the project as of September, which should grow by $1.5 million each month as contractual obligations are turned into official bills, according to Deatrick.
The final decision on the streetcar project rests on City Council. Cranley told The Cincinnati Enquirer on Thursday that he’ll pursue a 30-to-90-day time-out on the project as the city conducts a full accounting of cancellation costs, completion costs and the potential return on investment of the project, following requests from Councilman P.G. Sittenfeld and incoming council members David Mann and Kevin Flynn — three crucial swing votes in the newly elected council of nine — for more information before placing a final vote on the project.
The talk of cancellation already spurred some Over-the-Rhine residents and businesses to launch a campaign to save the streetcar. Cranley insists it’s too expensive and the wrong priority for the city, but supporters tout independent studies and their own experiences to argue it would spur economic development. The pro-streetcar group will meet on Thursday at 7 p.m. at the Mercantile Library, 414 Walnut St. #1100, downtown Cincinnati.
The full letter:
Supporters of the streetcar project are rallying in a last-stand effort to save the streetcar from an incoming city government that’s threatening to cancel the project. Supporters plan to meet today in a town hall-style meeting at 7 p.m. at the Mercantile Library, 414 Walnut St. #1100, downtown Cincinnati. Some of the supporters of the movement are residents, business owners and realtors in Over-the-Rhine who told CityBeat that canceling the project will set the city’s economic momentum back. Mayor-elect John Cranley disagrees, but the decision is ultimately up to the newly elected City Council to cancel the project, and at least three of nine newly elected council members previously seen as streetcar opponents — P.G. Sittenfeld, David Mann and Kevin Flynn — told CityBeat they’d like to evaluate the costs of canceling the project and the potential return of investment versus the cost of completing construction.
City Manager Milton Dohoney will resign on Dec. 1 and receive one year of severance pay, Cranley announced yesterday. To political watchers, the news comes as very little surprise. Cranley and Dohoney disagreed on two key issues — the streetcar project and parking plan, both of which Cranley opposes and Dohoney supported and helped get off the ground. Once the new mayor and City Council take over in December, Cranley says he will appoint a yet-to-be-named interim city manager and begin looking for a permanent replacement.
Despite Saks Fifth Avenue’s departure, the city intends to move forward with its plans to build a retail corridor downtown, and others have approached the city about taking Saks’ space, according to Kathleen Norris, managing principal of Urban Fast Forward and the city’s retail leasing consultant. Saks announced yesterday that it’s closing down its downtown store and moving to Kenwood Collection. Although the move is a blow to the city, a few city officials were quick to point to other growth in downtown Cincinnati as an example of what will attract new retail outlets in the future.
A deal is nearly set to fund the $107 million interchange project at Interstate 71 and Martin Luther King Drive. As part of the deal, the Ohio Department of Transportation will pay for $52 million, and Cincinnati and the Ohio-Kentucky-Indiana Regional Council of Governments (OKI) will take a loan from the state infrastructure bank to pay for their share. OKI says it will pay for its portion of the loan through $25 million in federal funding, but it’s so far unclear how the city will pay for its share of the project. The outgoing city administration intended to pay for the project through the now-canceled parking plan, which would outsource the city’s parking meters, lots and garages.
Cranley says the city can get out of the parking plan without defaulting on the lease agreement with the Greater Cincinnati Port Authority, but Cranley’s position is at odds with the stated opinion of officials in the outgoing city administration and Port Authority. Cranley announced on Tuesday that the parking plan will be called off once he and the new council take office in December, but it’s unclear how much it will cost to break out of the plan and its various contractual obligations.
The Ohio House held a hearing yesterday for two bills that would increase safeguards for victims of domestic violence, including new housing and employment protections. CityBeat previously covered the story of Andrea Metil, a domestic violence victim who is calling for greater protections.
Only 1,150 Ohioans signed up for Obamacare through the troubled HealthCare.gov portal, the U.S. Department of Health and Human Services announced yesterday. Both the Ohio-wide measure and nationwide number — 106,185 — fell far short of the federal government’s expectations for the first month of enrollment. But many of the troubles are caused by technical problems that have made HealthCare.gov largely unworkable for most Americans. The federal government is working to correct the errors by December, but The Washington Post reports that the website likely won’t be fully functional by then.
Meanwhile, Ohioans will be able to enroll in the now-expanded Medicaid program on Dec. 9. Republican Gov. John Kasich got the federally funded Medicaid expansion for two years through the Controlling Board, a seven-member legislative panel, despite the Republican-controlled legislature’s opposition.
The Ohio House yesterday approved a bill that reforms municipal taxes, which businesses support but cities oppose. Supporters argue it will simplify the tax code so businesses can more easily work around the state and from county to county, but opponents claim it will reduce how much revenue cities receive.
Kasich temporarily delayed convicted child killer Ronald Phillips’s execution so Phillips can donate his non-vital organs to his mother and possibly others.
Cincinnati-based Procter & Gamble is shuffling some of its top positions.
Here is how Mars might have looked 4 billion years ago.
The streetcar project’s chances of survival grew on Thursday after Mayor John Cranley announced he’s willing to allow the $132.8 million project move forward if the annual operating costs for the streetcar are underwritten by private contributors.
But streetcar supporters might have as little as one week to provide assurances to Cranley that the operating costs can be underwritten by the private sector, given the federal government’s Dec. 20 deadline for up to $44.9 million in grants financing roughly one-third of the project.
Still, a representative of the Haile Foundation, a major private contributor to city projects, said private-sector leaders are already working on meeting Cranley’s offer and solving the issue.
The concern for Cranley — and even some streetcar supporters — is that annual operating expenses for the streetcar would hit the city’s already-strained operating budget, especially if the annual operating expenses are higher than the previous estimate of $3.4-$4.5 million.
Although the city wouldn’t need to pay for the full operating costs until the streetcar opens for service in 2016, Cranley and some council members are concerned finishing the project now would force the city to make payments it won't be able to afford in the future.
“We know the streetcar is a very expensive project,” Cranley said. “This community cannot afford a new, ongoing liability that goes on forever.”
Streetcar supporters argue Cranley’s view misses the streetcar’s potential for economic development, which could bring in more city revenues as more people move and work in the city.
The streetcar project would produce a 2.7-to-1 return on investment, according to a 2007 study from consulting firm HDR that was later verified by the University of Cincinnati.
Councilman Kevin Flynn, one of the two potential swing votes on council, said Cranley’s offer could provide “a way forward.” He previously told CityBeat that the operating costs remain a prominent concern for him because they could translate to cuts in the city’s budget, particularly to police and firefighters.
Eric Avner, vice president and senior program manager of community development at the Haile Foundation, called the deal “an olive branch” to streetcar supporters. He said he’s “very, very confident” the private sector will be able to find a solution.
“I don’t think we can solve it in a week. What I heard is he needs assurances,” Avner said.
Cranley said he doesn’t expect someone to come to city leaders next Wednesday with a check paying for 30 years of operating costs, but he said the commitment has to be serious and long lasting for the city to move forward with the streetcar.
Avner discussed bringing together a commission of private-sector leaders with some long-term assurances.
In what he described as an “organic” movement, Avner said he’s heard from various private-sector leaders that they want to keep the project going, but he claimed most of them don’t want to engage in a public “food fight” that could hurt their relations with the mayor and other city officials.
For Avner, it’s a matter of sticking to a project that’s already well into development and construction.
“We don’t have the luxury to waste that kind of money in this town,” he said.
Streetcar Project Executive John Deatrick on Nov. 21 told council members that canceling the streetcar project could save only $7.5-$24.5 million in capital costs after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants that would be lost if the project were stopped.
After Cranley’s announcement, Councilwoman Yvette Simpson questioned Cranley’s motives and said the solicitation might be very difficult to meet in just one week.
Cranley said he’ll reach out to the Federal Transit Administration to try to get an extension, perhaps until the end of the year, on the deadline for federal grants.
“It’s obviously a huge, huge hurdle to try to pull this together in seven days,” Cranley said.
Cranley cautioned he wouldn’t be upset if his offer fell through. Flanked by union representatives for police, firefighters and other city workers, Cranley reiterated that his priorities still lie in basic city services.
Councilman P.G. Sittenfeld previously proposed setting up a special improvement district to pay for the operating costs. But Cranley called the approach unworkable because it would require property owners to opt in — an effort that would presumably take much longer than one week.
Cranley’s announcement came as streetcar supporters move to place a city charter amendment in support of the streetcar project on the ballot. The campaign vowed to gather 12,000 signatures by the end of the week.
Mayor John Cranley, Councilman Kevin Flynn and four union representatives from the Fraternal Order of Police, Firefighters Local 48, AFSCME and CODE will make a “major announcement” regarding the streetcar project today at 9 a.m., according to the mayor’s office. Local 12 reported last night that the announcement will be an offer from a private contributor to underwrite the streetcar’s operating costs for 30 years, but Councilman Chris Seelbach tweeted that the rumor is “not true.” If the report checks out, it could significantly increase the streetcar project’s chances of survival by alleviating a major budget concern. (Update: The announcement wasn’t as expansive as stated by Local 12, but Cranley said he’s open to private contributions. Read more here.)
Flynn and Vice Mayor David Mann could decide the fate of the streetcar project by Dec. 20, a deadline set by the federal government for up to $44.9 million in grants funding roughly one-third of the project. It’s a precarious position for Flynn, who in 2009 and 2011 campaigned in support of the project but completely changed his position during his 2013 campaign. Both Flynn and Mann say they will only support the project if the costs of cancellation are close to the costs of completion, but Flynn says he’s also concerned about the costs to operate the streetcar. Read more about the two council members and their pivotal roles here.
City Council yesterday appointed Scott Stiles as interim city manager, but only after heated debate over Stiles’ compensation package left three council members voting “no.” The package gives Stiles a raise if he isn’t appointed as permanent city manager and returns to his previous position as one of two assistant city managers, which some council members called unfair to other city workers, including the other assistant city manager, who wouldn’t get comparable pay increases. Council members estimated the search for another city manager will take six months.
Former City Manager Milton Dohoney is among five final candidates for the city manager job in Dallas.
The Charter Committee, Cincinnati’s unofficial third political party, yesterday picked Colin Groth as its new leader.
More than 31,000 Ohio students are using private-school vouchers this year, up 4,600 from the year before. Supporters say the vouchers allow more Ohioans to attend otherwise inaccessible schools, but opponents argue the vouchers effectively siphon money away from the public school system.
The new federal budget deal received support from Republican Speaker John Boehner, but Republican Reps. Steve Chabot and Brad Wenstrup, both from Cincinnati, say they’re unsure which way they’ll vote. The deal increases spending levels established after across-the-board cuts known as “sequestration”; the increased spending is balanced out by cuts elsewhere and hiked fees. The Washington Post gave a succinct rundown of the deal here.
Ohio, Kentucky and Indiana are among the least healthy states in the nation, according to a report from the United Health Foundation.
Ohio legislators yesterday approved an expanded “Move Over” law that “requires motorists to slow down and, as conditions permit, shift to an adjacent lane when approaching construction, maintenance and public utilities commission vehicles that are parked on the roadside with flashing, oscillating or rotating lights,” according to the Ohio Department of Transportation. Previous law only requires slowing down and shifting lanes when approaching police and other emergency vehicles, including tow trucks.
The Ohio House approved a bill that could give student trustees voting power on public university boards, which could allow some students to help set tuition levels.
An anonymous $3 million gift created a scholarship fund for University of Cincinnati engineering students.
Here are the nominees for the 2014 Cincinnati Entertainment Awards.
OpenTable ranked Cincinnati restaurant Orchids at Palm Court as the seventh best in the nation for 2013. Cincinnati-based Boca also made the top 100 list.
Miami University and Cincinnati will host the 2016 NCAA hockey tournament.The coldest place on Earth — in Antarctica, obviously — can reach -135.8 degrees Farenheit.
A one-way, manned mission to Mars got closer to reality after Mars One announced a deal with Lockheed Martin and SSTL to develop technology to colonize the planet by 2025.
Work began yesterday on an audit of Cincinnati’s $132.8
million streetcar project, but streetcar supporters are upset the audit
will only look at the costs and not the potential return on investment.
The city hired KPMG, an auditing firm, to review the
streetcar’s completion, cancellation and operating costs by Dec. 19, the day the federal government says it will pull up
to $44.9 million in grants funding roughly one-third of the project.
Losing the federal funding would most likely act as a death blow for the
project, since most local officials — even some streetcar supporters —
say they’re unwilling to allocate a similar amount of funding through local sources. Mayor John Cranley and City Council asked for the audit before they decide whether to continue or permanently cancel the project.
Meanwhile, streetcar supporters yesterday kicked off a petition-gathering campaign to get a city charter amendment on the ballot that would task the city with continuing the streetcar project. But given the federal government’s Dec. 19 deadline, it’s unclear whether the ballot measure, which could go to voters as late as May, stands much of a chance. Streetcar supporters say they’ll lobby the federal government to keep the funding on hold until voters make the final decision on the project.
A City Council committee yesterday voted to rescind council’s support for a supportive housing complex in Avondale that would aid chronically homeless, disabled and low-income Cincinnatians. But because National Church Residence already obtained state tax credits for the project in June, it might be able to continue even without council support. The committee’s decision comes in the middle of of a months-long controversy that has placed neighborhood activists and homeless advocates at odds. The full body of City Council could make the final decision on its support for the project as early as today’s 2 p.m. meeting.
City Council could also move today to repeal a “responsible bidder” ordinance that has locked the city and county in conflict over the jointly owned and operated Metropolitan Sewer District (MSD). The conflict comes at a bad time for MSD, which is under a federal mandate to revamp the city’s sewer system. Councilman Chris Seelbach argues the ordinance, which he spearheaded, improves local job training opportunities, but opponents claim it places too much of a burden on businesses and could open the city to lawsuits. CityBeat covered the issue in greater detail here.
Some City Council members are concerned Interim City Manager Scott Stiles’ compensation package could act as a “golden parachute.”
State Sen. Eric Kearney of Cincinnati yesterday resigned as running mate for Democratic gubernatorial candidate Ed FitzGerald. Kearney’s decision came after media outlets reported that he, his wife and his business had up to $826,000 in unpaid taxes. The controversy grew so thick that Democrats decided Kearney was too much of a distraction in the campaign against Republican Gov. John Kasich.An Ohio House Republican pitched a proposal that would slightly increase the state’s oil and gas severance tax, but the industry isn’t united in support of the measure. When it was first discussed, the House plan was supposed to act as a downscaled but more palatable version of Gov. Kasich’s proposal, which received wide opposition from the oil and gas industry.
Speaking against a bill that would tighten sentences for nonviolent felony offenders, Ohio’s prison chief said the state is on its way to break an inmate record of 51,273 in July. The state in the past few years attempted to pass sentencing reform to reduce the inmate population and bring down prison costs, but the measures only registered short-term gains. The rising prison population is one reason some advocates call for the legalization and decriminalization of drugs, as CityBeat covered in further detail here.
More than one-third of Ohio third-graders could be held back after they failed the state reading test this fall. But the third-graders will get two more chances in the spring and summer to retake the test. Under a new state law dubbed the “Third Grade Reading Guarantee,” Ohio third-graders who fail the reading test must be held back starting this school year.
Only 5,672 Ohioans signed up for new health plans through
the Obamacare marketplace in November. Still, total enrollment in
federal marketplaces was four times higher than it was in October as the
troubled Obamacare website (HealthCare.gov) improved. Reports indicate
the website also vastly improved right before the White House’s
self-imposed December deadline to get the website working better.
William Mallory Sr., prominent local politician and ex-Mayor Mark Mallory’s father, died yesterday morning.
A home kit allows anyone to find antibiotics in leaves, twigs, insects and fungi.
Democratic gubernatorial candidate Ed FitzGerald is
preparing to replace running mate Eric Kearney, according to The Cincinnati Enquirer.
Kearney, a state senator from Cincinnati, has been under increasing
pressure to drop out of the race following multiple media reports that
uncovered he, his wife and his business owe up to $826,000 in unpaid
taxes. FitzGerald is running against Republican Gov. John Kasich in 2014.
Streetcar supporters will seek a city charter amendment that would task Cincinnati with continuing the $132.8 million streetcar project. Supporters say the amendment will act as a
back-up plan if Mayor John Cranley and City Council decide to strike
down the project after completion and cancellation costs are reviewed
through an independent audit. But the Federal Transit Administration
says the city would lose up to $44.9 million in federal funding —
roughly one-third of the streetcar project — if the city government doesn’t agree
to continue with the streetcar before Dec. 19. If the charter amendment gets enough valid signatures to appear on the ballot, voters could decide on the issue as
late as May.
Cincinnati’s winter shelter opened today and will remain open through February, according to the Greater Cincinnati Homeless Coalition. The opening comes after winter storms covered Cincinnati’s streets in ice and snow and sparked a citywide snow emergency over the weekend. The colder conditions will continue into the week, according to the National Weather Service. It was originally unclear whether the shelter would be able to open for its traditional two-to-three months, but a $30,000 contribution from City Council helped pave the way forward.
The woman who was struck by a police cruiser in Over-the-Rhine last month filed a lawsuit alleging the officer deliberately deleted the dashboard camera video of the collision and lied when he claimed his emergency lights and siren were on. The camera stopped recording for about three minutes right before Officer Orlando Smith hit Natalie Cole with his cruiser. Police say the camera malfunctioned. But the incident was the second time Smith’s camera stopped working in the past year; previously, the camera failed to record during a shooting that left one suspect dead and another wounded. CityBeat covered the issues surrounding cruiser cameras in further detail here.
Councilman Charlie Winburn says the city wastefully
purchased and dumped 2,000 tons of road salt. Although other council
members on the Budget and Finance Committee appeared cautious of
Winburn’s accusations, he asked the city administration to
investigate the issue.
Ohioans can now enroll in an expanded Medicaid program, which covers anyone up to 138 percent of the poverty level, or an annual income of $15,856.20 or less. In October, a seven-member legislative panel accepted federal funds to pay for expanded Medicaid eligibility for two years despite resistance from the Republican-controlled Ohio legislature.The Cincinnati USA Regional Chamber named a new president and CEO.
The rover Curiosity found a former lake on Mars.Follow CityBeat on Twitter:
The Federal Transit Administration on Friday gave Cincinnati until Dec. 19 to make a final decision on the $132.8 million streetcar project before it pulls up to $44.9 million in federal grants. The decision gives the city less than two weeks to finish its audit of the project’s completion and cancellation costs, which should be conducted by global auditing firm KPMG. The streetcar project would presumably die without the federal grants, which are covering roughly one-third of the project’s overall costs, even if a majority of council or voters decide to continue with the project.
Mayor John Cranley might veto legislation continuing the streetcar project, even if a majority of council agrees to restart the project after its costs are reviewed through an independent audit, said Jay Kincaid, Cranley’s chief of staff, on Friday. If Cranley vetoes, council would need a supermajority — six of nine votes on council — to continue the project, which could be difficult since there are only two perceived swing votes on council. The veto threat presents a bait-and-switch for many streetcar supporters: Only five council members voted to pause the project on Dec. 4 while the city reviews completion and cancellation costs, but six members might be needed to continue the project if Cranley reviews the audit and decides it is still too expensive.
Cincinnati Parks Department Director Willie Carden, Mayor John Cranley's choice for city manager, withdrew from consideration on Friday. In making the announcement, the mayor’s office said it will keep Acting City Manager Scott Stiles in his current role while the city conducts a national search for a permanent replacement. Carden’s nomination was initially well received by council members, but it grew somewhat controversial after Carden insisted he will continue to live outside Cincinnati — a violation of the city charter — and The Cincinnati Enquirer uncovered an ethics probe that found Carden wrongfully took pay from the city and private Parks Foundation.
The Cincinnati/Northern Kentucky International Airport (CVG) fell short on recommendations from a previously undisclosed 2012 survey of the region’s business needs. In particular, CVG most likely won’t be able to meet the key recommendation to land Southwest Airlines, a discount carrier that could help bring down fares and increase travel destinations.
Cincinnati turns 225 on Dec. 28.
Ohio gas prices spiked to $3.24 for a gallon after briefly dropping to around $3.
Major companies are feeling increasing pressure to move or at least establish alternative facilities in the urban core as young workers flock to cities, according to The Wall Street Journal.
About 99 percent of U.S. exterminators encountered bed bugs over the past year, up from 11 percent a decade ago.
The Federal Transit Administration (FTA) will allow Cincinnati to keep $44.9 million in federal grants for the $132.8 million streetcar project until midnight on Dec. 19 while the city reviews the costs of canceling or completing the project, Mayor John Cranley announced on Facebook on Friday.
The FTA's decision gives the city two weeks to assemble a team and conduct its audit, which a slim majority of City Council agreed to do on Wednesday when it put the streetcar project on pause.
Without the federal grants, the streetcar project would have lost one-third of its funding and presumably died, even if a majority of City Council decided it wants to continue with the project.
The city is currently working to hire KPMG, an audit, tax and advisory firm, for the audit, according to Jay Kincaid, Cranley's chief of staff.
Council members David Mann and Kevin Flynn in particular asked for the review before they make a final decision on the streetcar.
Streetcar Project Executive John Deatrick previously warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants.
Mann and Flynn were among a majority of council members who voiced distrust toward Deatrick's estimates, hence the need for an independent review.
But the review might not matter if Cranley decides to veto any ordinance continuing the streetcar project, which Kincaid said Cranley would do if he deems the project too costly following the audit.
A mayoral veto would require both Flynn and Mann to help provide a supermajority — six of nine council votes — to save the streetcar. That could prove a considerably higher hurdle than a simple majority of five council members.
Update: Added who the city plans to hire for the audit.
Mayor John Cranley might veto an ordinance continuing the $132.8 million streetcar project, even if a majority of City Council wants the project to continue after its costs are reviewed through an independent audit, said Jay Kincaid, Cranley’s chief of staff, on Friday.
The decision means six of nine council members — a supermajority — might be required to overturn a mayoral veto and continue the streetcar project. With only two perceived swing votes on council, that could prove a considerably higher hurdle than a simple majority of five council members.
“Of course he reserves the right to veto the legislation,” Kincaid said.
If Cranley reviews the numbers and decides that the project is too costly, he will use the veto powers provided to him through the city charter, Kincaid explained.
Kincaid’s response came after CityBeat confirmed with City Solicitor John Curp that continuing the streetcar project would require a new ordinance that, in theory, could be vetoed by the mayor. City Council can overcome a mayoral veto with a supermajority, or six of nine total council votes.
When CityBeat talked to Kincaid the day before he confirmed Cranley’s willingness to veto, Kincaid speculated that Cranley would not veto legislation continuing the streetcar project.
“I have not talked to (Cranley) about it. I assume that he would let it go forward since he gave (Councilman) David Mann his word that he would give this time to review it, and he gave the same assurance to (Councilman) Kevin Flynn,” Kincaid previously said.
Five of nine council members on Wednesday agreed to allocate $1.25
million to indefinitely pause the streetcar project and pay
for an independent study that will gauge how much it will cost to
continue or permanently cancel the project.
Streetcar Project Executive John Deatrick previously warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants that would be lost if the project were terminated.
Almost immediately, a majority of council voiced distrust toward Deatrick’s numbers. In a press conference following Deatrick’s presentation, Cranley called city officials in charge of the streetcar project “incompetent.”
Council members Flynn and Mann vocally opposed the streetcar project on the campaign trail. But both said they’ll make a final decision on the project once the cancellation and completion numbers are evaluated through an independent review.
Mann previously told CityBeat, “If they do hold up, that’s fairly persuasive.”
Flynn wouldn’t speculate on what stance he will take if the numbers stand to scrutiny. He said a pressing concern for him is how the city will pay for $3.4-$4.5 million in annual operating costs for the streetcar, which could hit an already-strained operating budget.
If Cranley vetoes an ordinance continuing the streetcar project, both Flynn and Mann would likely need to agree to continue — or at least overturn a mayoral veto — to keep the streetcar alive.
City officials estimate the review will take at least two weeks. Once the audit is finished, council members are expected to announce their final positions on continuing or canceling the project.
Update: Mayor John Cranley on Friday announced the federal government is giving Cincinnati until Dec. 19 to make a decision on the streetcar project. Read more here.
This story was updated to better explain that Jay Kincaid’s second direct quote came from a separate conversation on Thursday, the day before he announced Mayor John Cranley’s willingness to veto.
Streetcar Project Executive John Deatrick yesterday said only 11 streetcar workers are expected to lose their jobs following City Council’s pause of the $132.8 million project, far below the original estimate of 200 city officials gave on Monday. The remaining workers will be moved by contractors to other jobs or kept under ongoing utility work, which utility companies agreed to continue despite no longer qualifying for reimbursements from the city, according to Deatrick. He also said it’s “a wild guess” whether the number of layoffs will grow in the future.
Cincinnati should expect to return up to $44.9 million in federal grants funding nearly one-third of the streetcar project even though the project is only on “pause” as local officials weigh the costs of cancellation and completion, according to transportation experts who talked to The Cincinnati Enquirer. Without the federal grants, the project is effectively dead. The two swing votes on council — David Mann and Kevin Flynn — say they want to evaluate whether it would make financial sense to cancel the project this far into construction. Deatrick previously estimated the costs of cancellation could nearly reach the costs of completion after accounting for $32.8 million in sunk costs through November, $30.6-$47.6 million in close-out costs and $44.9 million in lost federal grants. But Mann and Flynn voiced distrust over the projections and called for an independent review.
Democrats and voter advocates claim Republican legislators are slowly rebuilding “voter suppression” laws that were the subject of referendum in 2012 before Republicans backed down. Democrats called on Gov. John Kasich to veto the bills. Among other measures, the bills would reduce the amount of in-person early voting days and restrict elected officials’ ability to to mail out unsolicited absentee ballot applications. Democrats claim the bills are meant to suppress voters. Republicans argue the measures help reduce “cheaters,” even though in-person voter fraud is very rare.
Chris Finney, a high-profile lawyer who is critical of local tax breaks for businesses, apologized for denying that he sought tax breaks for his law firm. Finney sought the tax breaks shortly after criticizing Cincinnati for granting a tax incentive package to convince Pure Romance to move from Loveland, Ohio, to downtown Cincinnati. Finney is the top legal crusader for the Coalition Opposed to Additional Spending and Taxes (COAST), a conservative group with a history of anti-gay causes.
Tea party group One Percent for Liberty nominated Mayor John Cranley as a “Defender of Liberty for 2013” for his work against the streetcar project and parking privatization plan. The group previously nominated various conservative politicians and activists from around the region. The award will be presented at COAST’s Christmas party.
Hundreds of schools and businesses in the Cincinnati area today closed in response to the developing winter storm.
St. Elizabeth Healthcare and TriHealth, two of the areas’ largest health systems, yesterday announced they’re teaming up to reduce costs, improve the patient experience and generate better health outcomes.
Attorney General Mike DeWine yesterday announced he will crack down on electronic raffle operations.
Nelson Mandela, a South African icon of peace, died yesterday. Mandela was a peaceful leader of the anti-apartheid movement who went on to become South Africa’s first black president. His consistent devotion to peace inspired similar peaceful protests around the world. The New York Times put together a great interactive featuring several correspondents who witnessed Mandela first-hand here.
U.S. unemployment fell to 7 percent in November, the lowest rate in five years.
Popular Science explains how to get rid of animal testing.
Only 11 streetcar workers are expected to lose their jobs following a City Council-approved pause of the $132.8 million project, according to Streetcar Project Executive John Deatrick.
The final number is far below the original estimate of 200 layoffs that city officials gave on Monday when council members asked about the effects of halting the streetcar project.
The remaining workers will be moved by contractors to
other jobs or kept under ongoing utility work, which utility companies
agreed to continue despite no longer qualifying for reimbursements from
the city, according to Deatrick.
Deatrick says it’s “a wild guess” whether the amount of layoffs will grow in the future.
“Our contractors have real heart,” he says.
The number is good financial news for the city. If 200 workers were laid off, Deatrick previously estimated that unemployment benefits would cost the city $419,000 for the month.
Still, the city administration on Wednesday warned that it could cost $2.56-$3.56 million to pause ongoing construction for the month. In comparison, Deatrick estimates that continuing construction at current speeds would cost $3 million.
A majority of council members dismissed the pause cost estimates as exaggerated when they voted to halt the project on Wednesday.
With the streetcar project on hold, council now plans to review how much it would cost to complete or cancel the project.
Deatrick on Nov. 21 warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grant money that would be lost if the project were terminated.
But a majority of council members voiced distrust toward the estimates and called for an independent review.
Depending on the outcome of the cost analysis, Vice Mayor
David Mann and Councilman Kevin Flynn say they could change their minds
on canceling the streetcar project. Only one of them needs to do so to give streetcar supporters a majority on council.
City Council yesterday voted to allocate $1.25 million to pause the $132.8 million streetcar project and study how much it will cost to continue or cancel the project. The final 5-4 votes to pause came despite offers from private contributors to pay for the $250,000 study and construction for the one or two weeks necessary to carry out the cost analysis. The city administration warned council earlier in the day that pausing the project for one month could cost $2.56-$3.56 million, while previous estimates put continuing construction for the month at $3 million. After the cost study is finished, council members expect to make a final decision on whether to continue or cancel the project.
Meanwhile, Councilwoman Yvette Simpson filed a motion to draw up a city charter amendment that would task the city with completing the current streetcar project. If the charter amendment gets council approval, Cincinnatians would vote on the issue approximately 60 to 120 days afterward. But it’s unclear whether the $44.9 million in federal grants for the streetcar project would survive through the months; the federal government previously warned a delay could be grounds for pulling the money.
Commentary: “Atmosphere at City Hall Changes for the Worse.”
Following various cases of malfunctioning or disabled police cruiser cameras, various groups, including Councilman Chris Seelbach, are asking to get to the bottom of the issue. Police officials say old, deteriorating technology is to blame, but critics claim some officers are purposely tampering with the technology to avoid filming themselves during controversial moments in the line of duty. For both sides, getting the cameras working could be mutually beneficial; functioning cameras would allow police to clear their names but also show when officers make mistakes.
The University of Cincinnati asked Hamilton County judges to crack down on criminals targeting students on or near campus.
State Sen. Eric Kearney of Cincinnati says he won’t give up his Democratic candidacy for lieutenant governor despite $825,000 in unpaid state and federal taxes.
Republican State Sen. Bill Seitz of Cincinnati canceled a vote for a proposal that would greatly weaken Ohio’s renewable energy and efficiency standards. But he vowed to pursue a “three-pronged strategy to reform the current envirosocialist mandates,” including potential litigation. Environmental groups argued Seitz’s proposal would have effectively eliminated the state’s energy standards. According to a study from Ohio State University and the Ohio Advanced Energy Economy coalition, repealing the standards would increase Ohioans’ electricity bills by $3.65 billion over the next 12 years. CityBeat covered Seitz’s proposal in greater detail here.
The Republican-controlled Ohio legislature yesterday approved a bill that establishes a state panel to oversee Medicaid and recommend changes for the costly program. Republicans insist the measure isn’t about reducing benefits or eligibility for Medicaid; instead, they argue it’s about finding ways to cut growing health care costs without making such cuts. Gov. John Kasich must sign the bill for it to become law.
Months after rejecting Kasich’s proposal to do so, Ohio House leaders introduced a scaled-down measure that would slightly raise the oil and gas severance tax and cut income taxes. Unlike the governor’s previous proposal, the House plan seems to have support from the oil and gas industry.
Another Ohio House bill seeks to reintroduce prayer in public schools.
Ohioans are borrowing more to pay for college, but the debt load remains less than the national average.
Headline from The Cincinnati Enquirer: “CVG board votes to hire investigator for butt-dialed call.”
It seems Metropolitan Sewer District rates will increase by 6 percent.
Cincinnati could get three to six inches of snow tomorrow.
Robert Carr, a 49-year-old Cincinnati man, has been going into the homes of strangers and trying to claim them as his own. He’s now being held in the Hamilton County Justice Center on six felony charges for breaking into homes.
Ohio gas prices fell below $3 a gallon.
According to a study from the Library of Congress, 70 percent of America’s silent films are lost and a good portion of the remaining films are in poor condition.