After nearly two months of ups and downs, city leaders on Thursday announced Cincinnati will get a streetcar after all.
Speaking prior to a council vote, Mayor John Cranley and Councilman Kevin Flynn announced City Council has the six votes to overcome the mayor's veto and restart construction on the $132.8 million streetcar project.
Flynn was the final holdout in what some council members now call the "streetcar six." He was asking for a commitment from private contributors to cover the annual operating costs for the streetcar, which consulting firm KPMG estimated at $1.88-$2.44 million a year after fares and sponsorships.
The philanthropic Haile Foundation lived up to part
of the commitment by signing onto $900,000 a year for 10 years, Flynn
announced. That was enough of a commitment to move forward as the city
makes a broader effort to get all the operating costs off the city's
books, he said.
"That is a huge commitment, folks," Flynn added.
Flynn also acknowledged that the streetcar could foster new revenues in the city's operating budget and actually allow the city to take on bigger responsibilities.
Previous studies from consulting firm HDR and the
University of Cincinnati found the streetcar project will generate a
2.7-to-1 return on investment over 35 years.
Flynn, a Charterite, joined Democrats David Mann, Chris Seelbach, Yvette Simpson, P.G. Sittenfeld and Wendell Young in support of restarting the project. Republicans Amy Murray and Charlie Winburn and Independent Christopher Smitherman voted against it.Still, Cranley said he will continue opposing the streetcar project. He repeatedly stated council is making the wrong decision.
"I'm disappointed in the outcome," said Cranley, who ran in opposition to the streetcar.
Flynn reiterated his respect for Cranley, despite effectively dealing a major blow to Cranley's agenda.
Cranley "helped me get elected to this position, and I take that trust seriously," Flynn said.
Others were glad the city can now take on different issues without getting mired down in a contentious streetcar debate.
"I am so glad that this issue is done and over with," said Vice Mayor Mann, who voted in favor of the project.
officially changed his stance on the project after KPMG's audit found
canceling the project could cost nearly as much as completing it.
The final decision came at a cost to Cincinnati: The two-week pause of the project, which allowed KPMG to conduct its review, added $1.7-$2.8 million in costs, according to KPMG's audit. The city also allocated $250,000 to pay KPMG for its work.
Once it's completed, the streetcar line will run as a 3.6-mile loop in Over-the-Rhine and downtown.
Updated with results of City Council's vote and additional information.
Mayor-elect John Cranley and the newly elected City Council announced on Tuesday that, upon taking office in December, they will terminate the city’s plan to lease its parking meters, lots and garages to the Greater Cincinnati Port Authority, following an agreement with the Port Authority to hold off on a bond sale that would have financed — and effectively sealed — the deal. But it remains unclear how much it will cost to terminate the plan, default on the lease agreement with the Port Authority and allow the Port to break its contracts with private companies that would have operated the assets under the deal. The current city administration argues the parking plan is necessary to help balance the budget over the next two years, pay for economic development projects around the city and modernize the city’s parking assets so, for example, parking meters can accept credit card payments. Opponents argue the plan gives up too much control over the city’s parking assets by outsourcing their operations to private companies based around the country.
But some business leaders are upset with the death of the parking plan because it leaves no visible alternative for funding major development projects like the interchange at Interstate 71 and Martin Luther King Drive.
Cranley now says he will not allow a referendum on any ordinance undoing the streetcar project and will instead try to work with supporters of the project to find another way to put it on the ballot if they can gather enough petition signatures. Cranley says blocking a referendum is necessary to avoid spending money during a referendum campaign that could last months. But for supporters of the streetcar, Cranley’s decision seems highly hypocritical following his repeated praise for the “people’s sacred right of referendum” on the campaign trail after City Council blocked a referendum on the parking plan. If the project is placed on the ballot, it will essentially be the third time it’s brought to a public vote; opponents of the project in 2009 and 2011 pursued two ballot initiatives that many saw as referendums on the streetcar.
Meanwhile, Over-the-Rhine businesses and residents yesterday officially launched a campaign to save the streetcar project from Cranley and a newly elected City Council that appears poised to cancel the project. Touting the project’s potential return on investment and cancellation costs, the group plans to lobby newly elected officials to vote in favor of keeping the project going. The group invited Cranley and all elected council members to join them at a town hall-style meeting on Nov. 14 at the Mercantile Library, where supporters will discuss their path forward. So far, supporters have publicly discussed a concerted lobbying effort, a ballot initiative if council passes an ordinance undoing the streetcar project and possible legal action against the city.
The Cincinnati Enquirer’s editorial board is apparently unpleasantly surprised that Cranley undid the parking plan, even though the board endorsed Cranley for mayor after he ran in opposition to the parking plan for nearly a year.
An Ohio Senate bill caps the spending ability of the Controlling Board, a seven-member legislative board that previously approved the federally funded Medicaid expansion despite the Ohio legislature’s opposition. Gov. John Kasich angered many Republican legislators when he decided to go through the Controlling Board to get the Medicaid expansion, which is a major part of Obamacare.
Meanwhile, the Ohio legislature is working on changes to Medicaid that would cap future cost increases and employ professional staff for a Joint Medicaid Oversight Committee that would have the ability to review Medicaid programs and agencies. The bill also includes a portion that clarifies its passage “shall not be construed with endorsing, validating or otherwise approving the (Medicaid) expansion.”
Despite attempts from city officials and local business leaders, Saks Fifth Avenue is leaving downtown to open a store at Kenwood Collection.
Kentucky’s state auditor will look at the Cincinnati/Northern Kentucky International Airport board’s spending policies and expenses, following reports from The Enquirer that the board spent exorbitant amounts on travel, dining and counseling.
The Sixth Circuit Court of Appeals denied the Milford-Miami Advertiser’s request to appeal a 2012 ruling that charged the Gannett-owned suburban weekly with defamation and ordered the paper to pay the defamed plaintiff $100,000 in damages. In a story titled “Cop's suspension called best move for city,” the newspaper wrongly implicated a Miami Township police officer who was previously accused but later exonerated of sexual assault.
Attorney General Mike DeWine warns that some typhoon relief requests could be scams.
Not satisfied with the mere wonder of beginning to exist, some stars explode in a rainbow of colors when they’re born.
Ex-Councilman John Cranley decisively defeated Vice Mayor Roxanne Qualls today as both the Democratic mayoral candidates won the primary election and advanced to the general election.
With all precincts reporting, Cranley got 55.9 percent of the vote and Qualls picked up 37.2 percent, according to unofficial results from the Hamilton County Board of Elections. The other two candidates — Libertarian Jim Berns and Independent Sandra “Queen” Noble — each failed to break 5 percent of the vote.
The two victors come as little surprise to most election watchers, who have long been calling Cranley and Qualls the frontrunners. But Cranley’s strong lead has led to celebrations from Cranley’s supporters and downplaying from Qualls’ backers.
The city has held only two primaries since it enacted its “strong mayor” rules in 1999, which call for a primary when there’s more than two eligible candidates. The two winners then go on to the general election for the final decision. Previously, the City Council candidate with the most votes was designated mayor.
In both the primary elections held since 1999, the primary winner ended up losing the general election. In 2001, Courtis Fuller beat Charlie Luken in the primary in a 53.8-38.5 percent vote; Luken went on to win the general election 55.4-44.6 percent. In 2005, David Pepper narrowly beat Mark Mallory in the primary 31.2-30.7 percent; Mallory is currently mayor after winning the general election 51.8-48.2 percent in 2005 and getting re-elected in 2009.
The results’ significance is even murkier because voter turnout was a dismal 5.68 percent. In comparison, the mayoral primary held on Sept. 11, 2001 — the day of the terrorist attacks on the World Trade Center and Pentagon — had 15 percent voter turnout. In 2005, 21 percent of voters participated in the mayoral primary.
Still, Cranley’s victory is being heralded by his supporters tonight, particularly because it might show a shift from Qualls’ strong lead in early polls.
For the two camps, the contentious race is about which vision Cincinnati should embrace as the city’s downtown revitalization gains national recognition and momentum. Qualls supports the streetcar project and parking lease, while Cranley opposes both.
Cranley served on City Council from 2000 to 2009. Qualls has been on City Council since 2007 and previously served on City Council from 1991 to 1993 and as mayor from 1993 to 1999.
Voters will make the final decision between Cranley and Qualls on Nov. 5.
This story was updated with clearer election results and to correct Cranley’s full time on City Council, which the story previously said was from 2001 to 2009 instead of the accurate timespan of 2000 to 2009.
If City Council does not agree to lease Cincinnati’s parking system, the city manager’s office says the city will be forced to lay off 344 employees, including 80 firefighter and 189 police positions, but critics argue there are better alternatives.
In a memo dated to Feb. 26, City Manager Milton Dohoney Jr. wrote that the city will also have to close three community centers and six pools; eliminate Human Services Funding, which aids the city’s homeless and poor; and reduce funding for local business groups, parks, nature education for Cincinnati Public Schools and environmental regulations, among other changes. In total, the cuts would add up to $25.8 million — just enough to balance the deficit that would be left in place without the parking plan.
In addition to the cuts, failing to approve the parking plan, which leases the city’s parking meters for 30 years and lots and garages for 50 years to the Port of Greater Cincinnati Development Authority, would displace plans to convert Tower Place Mall, construct a 30-floor tower with a grocery store downtown, accelerate the the I-71/MLK Interchange project, acquire the Wasson Line right-of-way for a bike trail and add $4 million to the next phase of Smale Riverfront Park (“Parking Stimulus,” issue of Feb. 27).
Democratic Vice Mayor Roxanne Qualls, who’s running for mayor, has come out in favor of the parking plan, but John Cranley, another Democrat running for mayor, says he opposes the deal because it will hurt downtown businesses.
“It’s the boy who cried wolf,” Cranley says. “In 2009, 2010, 2011 and 2012 … they threatened to lay off police and firefighters, and it never happened.”
Cranley says he would rather take $10 million from projected casino revenue and $7 million from current parking revenues to help clear the deficit. For the remaining $8.8 million, he would cut non-essential programs, which would exclude police, fire, garbage collection, health, parks and recreation, street pavement and Human Services Funding, across the board by 10 to 15 percent. If that wasn’t enough, he would then move to the essential programs, which he says make up about $300 million in the $368.9 million budget, with a 1-percent across-the-board cut.
He says his solution would have the upside of fixing structural deficit problems in Cincinnati’s General Fund, whereas the one-time lease of the city’s parking assets will only take care of the deficit for the next two years.
Meg Olberding, city spokesperson, says City Council could use the casino revenue to pay for the deficit, but $4 million of it is already set for the Focus 52 program, which funds neighborhood development projects.
“Council can use whatever revenue sources they want,” Olberding says. “That’s why the memo … says we can either use this plan or another plan.”
Cranley says he would not do away with the Focus 52 program, but he would instead find funding for it in the Capital Budget, which is separate from the General Fund.
Olberding says City Council could approve the use of about $3 million in parking meter revenue for the General Fund, but the rest of the parking money, which comes from lots and garages, is tied to an enterprise fund, which, by state law, means the city would have to sell its parking lots and garages before it could obtain money for the General Fund.
Cranley, who also opposes the streetcar project (“Back on the Ballot,” issue of Jan. 23), says it
would be possible to pay for the I-71/MLK Interchange and other projects
if the streetcar wasn’t taking up funds. If it was up to him, he says
he would remove streetcar funding and use it on other development
projects “without batting an eye.”
In the Feb. 27 City Council meeting, Vice Mayor Roxanne Qualls said the Budget and Finance Committee will likely vote on the city manager’s parking plan on March 4 or March 11.
Dozens of residents and business owners gathered in Over-the-Rhine on Tuesday to launch a campaign that seeks to persuade Mayor-elect John Cranley and the newly elected City Council to support the $133 million streetcar project.
Attendees included Ryan Messer, who used his life savings to renovate his home in Over-the-Rhine; Derek Bauman, co-chair of Cincinnatians for Progress; Jean-Francois Flechet, owner of the Taste of Belgium; and Derek dos Anjos, owner of The Anchor.
“We’re here today to keep the conversation going outside of political rhetoric and partisan politics,” Messer said. “Simply put, the streetcar is a component of Cincinnati economic development, and it’s a project that grows the whole city — not just an urban core, which, by the way, is an important part of developing this region.”
The group intends to lobby Cranley and the newly elected council, which appear poised to cancel the project when they take office in December.
At least three of nine elected council members — P.G. Sittenfeld, David Mann and Kevin Flynn — have told media outlets that they want a full accounting of the project before making a final decision. Another three — Chris Seelbach, Yvette Simpson and Wendell Young — are on the record as supporting the project. The final three — Christopher Smitherman, Charlie Winburn and Amy Murray — adamantly opposed the project in the past.
Members of the pro-streetcar group invited Cranley and all elected council members to join them at a town hall-style meeting on Nov. 14 at the Mercantile Library, where supporters will discuss their path forward. So far, supporters have publicly discussed a concerted lobbying effort, a referendum if council passes an ordinance undoing the streetcar project and possible legal action.
As CityBeat first uncovered, the costs of canceling the project are currently unknown, and some of the costs could actually fall on the operating budget that pays for police, firefighters and human services instead of the capital budget that is currently financing the streetcar project.
Much of the uncertainty falls on ongoing construction for the streetcar, which has continued despite the newly elected city government’s intent to stop the project. As of September, the city spent $23 million on the project and contractually obligated $94 million, some of which city officials say will need to be paid back even if the project were canceled.
The U.S. Department of Transportation also told city officials in a June 19 letter that nearly $41 million of nearly $45 million in federal grants would need to be returned if the project were terminated.
Supporters also claim Cincinnati would be giving up a 2.7-to-1 return on investment over 35 years if the city abandoned the streetcar now. That estimate is derived from a 2007 study conducted by consulting firm HDR, which was evaluated and supported by the University of Cincinnati.
Project executive John Deatrick says the HDR study is now outdated and the city is working on updating the numbers. Still, Deatrick says the project is intended to spur economic development, not just provide another form of public transportation.
The Nov. 13 issue of CityBeat will give a more in-depth look at the campaign to save the streetcar and some of the people involved in the movement.
Mayor John Cranley is trying to find a compromise over whether early voting will move out of downtown after the 2016 general election, as some Republicans in the county government have suggested. Cranley called for a meeting with Hamilton County Board of Elections Chairman and Hamilton County Democratic Party Chairman Tim Burke, Hamilton County Republican Party Chairman Alex Triantafilou, Cincinnati NAACP President Ishton Morton and Hamilton County Board of Commissioners President Chris Monzel. The meeting will aim to “discuss alternatives the City of Cincinnati can offer to accommodate early voting downtown after the 2016 elections. (Cranley) believes that such a discussion is consistent with the recommendation of the secretary of state that there be an effort to find a nonpartisan solution to the existing disagreement.”
With a $12 million price tag in mind, Cranley remains worried Cincinnati is paying too much for a downtown grocery and apartment tower project. But the project is truly one of a kind, claims The Business Courier: The tower would boast nearly twice the number of luxury apartments of any other project underway in Over-the-Rhine or downtown. And it would replace a decrepit garage and establish the first full-scale grocery store downtown in decades.
A study found Ohio teens’ painkiller abuse dropped by 40 percent between 2011 and 2013. State officials quickly took credit for the drop, claiming their drug prevention strategies are working. But because the Ohio Youth Risk Behavior Survey only has two sets of data on painkillers to work with — one in 2011 and another in 2013 — it’s possible the current drop is more statistical noise than a genuine downturn, so the 2015 and 2017 studies will be under extra scrutiny to verify the trend.
Similarly, fewer Ohio teens say they’re drinking and smoking. But 46 percent say they text while driving.
Ohio’s unemployment rate dropped to 6.9 percent in January, down from 7.3 percent the year before. The numbers reflect both rising employment and dropping unemployment in the previous year.
To prove his conservative bona fides, Ky. Sen. Mitch McConnell touted a rifle when he walked on stage of the Conservative Political Action Conference.
The other Kentucky senator, Rand Paul, will headline a Hamilton County Republican Party dinner.
Researchers studied a woman who claims she can will herself out of her body.
Personal note: This is my last “Morning News and Stuff” and blog for CityBeat.
After today, I will be leaving to Washington, D.C., for a new
journalistic venture started by bloggers and reporters from The Washington Post and Slate. (CityBeat
Editor Danny Cross wrote a lot of nice things about the move here, and
my last commentary touched on it here.) Thank you to everyone who read
my blogs during my nearly two years at CityBeat, and I hope I helped you understand the city’s complicated, exciting political and economic climate a little better, even if you sometimes disagreed with what I wrote.
By now, most of you have heard there was another horrible mass shooting, this time in Newtown, Conn., that resulted in the death of 20 children and six adults. While everyone is hoping this is the last time the nation has to deal with an event of unspeakable horror, it is only a possibility if we agree to do something about it. That means remembering the heroes who risked their lives and, in some cases, died that day. That means not letting the media and public drop the issue, as has been the case in the past. That means looking at more than just gun control, including mental health services. The Washington Post analyzed what “meaningful” action on gun control would look like, and the newspaper also disproved the idea Switzerland and Israel are “gun-toting utopias.” President Barack Obama also spoke on the issue at a vigil Sunday, calling for the nation to do more to protect people, particularly children, from violence. The full speech can be watched here.
City Council approved its 2013 budget plan Friday. The budget relies on the privatization of city parking assets to help plug a $34 million deficit and avoid 344 layoffs. The budget also nixed the elimination of a tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities, and it continued funding the police department’s mounted unit. As a separate issue, City Council voted to increase the property tax by about 24 percent, reversing a move from conservatives in 2011. CityBeat wrote about budgets at all levels of government and how they affect jobs here.
Michelle Dillingham, who was an aide to former city councilman David Crowley, will seek Democratic support in a run for City Council. Dillingham promises to tackle “industry issues of mutual interest" to business and labor and “transportation funding, family-supporting wages and workforce development.”
At a recent public hearing, mayoral candidate John Cranley proposed a “very easy” plan for the city budget. Only problem: His plan doesn’t work. In an email, Cranley said he stands by his ideas, but he added he was working with limited information and his statements were part of a two-minute speech, which “requires brevity.” He also claimed there are cost-cutting measures that can be sought out without privatizing the city’s parking assets and gave modified versions of his ideas regarding casino and parking meter revenue.
Judge Robert Lyons, the Butler County judge who sealed the Miami rape flyer case, is standing by his decision.
The Greater Cincinnati area is near the top for private-sector growth.
Jedson Engineering is moving from Clermont County to downtown Cincinnati, thanks in part to an incentive package from City Council that includes a 45 percent tax credit based on employees earnings taxes over the next five years and a $300,000 grant for capital improvements. The company was a Business Courier Fast 55 finalist in 2008 and 2009 due to its high revenue growth.
Gov. John Kasich’s Ohio Turnpike plan is getting some support from Toledo Mayor Mike Bell, but others are weary. They fear the plan, which leverages the turnpike through bonds for state infrastructure projects, will move turnpike revenues out of northern Ohio. But Kasich vows to keep more than 90 percent of projects in northern Ohio.
Gas prices are still falling in Ohio.
U.S. House Speaker John Boehner is making some concessions in fiscal talks. In his latest budget, he proposed raising taxes on those who make more than $1 million a year.
One beagle can diagnose diseases by sniffing stool samples.
The mayor, Cincinnati Public Schools (CPS) and The Strive Partnership announced today a new joint initiative that won a $40,000 grant. The grant, which is funded by Target through the Cities of Service and Service Nation, will help tutors teach kids how to read by the third grade.
Mayor Mark Mallory made the announcement in a joint press statement with CPS Superintendent Mary Ronan and The Strive Partnership Executive Director Greg Landsman.
With the money, 50 tutors will help 100 students in first, second and third grade in five schools to meet the state’s new Third Grade Reading Guarantee, which requires third-grade students to be proficient in reading in state tests before advancing to the fourth grade.
“It all starts with reading,” Mallory said in a statement. “And there is no better way to help our kids learn to read than with one-on-one tutors who they can get to know and trust. A committed adult can make learning to read fun. This grant is going to have a huge impact on the lives of a lot of kids.”
The tutors will focus on five CPS schools: Roberts Paideia Academy in East Price Hill, Rockdale Academy in Avondale, Mt. Airy School, Pleasant Hill Academy in College Hill and Pleasant Ridge Montessori School.
Cincinnati was one of eight cities to win the grant. The other winners are Atlanta, Ga.; Baltimore, Md.; Charleston, S.C.; Chula Vista, Calif.; Kansas City, Mo.; Orlando, Fla.; and Vicksburg, Miss.
The new state reading requirement, which was pushed by Republican Gov. John Kasich, has received criticism from some Democrats and education experts. Research shows holding kids back hurts more
than helps. After reviewing decades of research, the National Association of
School Psychologists found grade retention has “deleterious long-term
effects,” both academically and socially.
Cincinnati would save just $7.8-$52.6 million in capital costs if it incurs tens of millions in additional expenditures to cancel the $132.8 million streetcar project, according to an audit from consulting firm KPMG released Wednesday.
By showing the potentially high costs of cancellation, the numbers could throw a lifeline to the streetcar project just one day before City Council decides whether to restart construction or permanently halt the project.
But Mayor John Cranley appears undeterred in his commitment to cancel the streetcar project. By accounting for the annual costs to operate the streetcar, Cranley estimates the city will actually save $102 million if it cancels the project.
The city already spent roughly $34 million on the project, according to the audit. Cancellation would add $16.3-$46.1 million in close-out costs, bringing the total costs of cancellation and money spent so far to $50.3-$80.1 million.
Completing the project would add $68.9 million in costs, after deducting $40.9 million in remaining federal grants, the audit found.
But the completion estimate assumes the city will need to pay $15 million in utility work — a cost that is currently being debated in court. If the city wins its case against Duke Energy, the utility company would be required to pay the $15 million and bring down the total completion costs to $53.9 million.
The audit also put the costs of operating the streetcar at $3.13-$3.54 million a year, lower than the previous $3.4-$4.5 million estimate. After revenues from fares, sponsorships and other sources, the city would need to pay $1.88-$2.44 million to operate the streetcar, according to the audit.
The reduced estimate for operating costs could become particularly important in deciding the project's fate as private contributors attempt to get the cost off the city's operating budget.
Delaying the streetcar project while KPMG conducted its audit also added $1.7-$2.8 million in costs, according to the audit. The city allocated another $250,000 to pay KPMG for its work.
The audit did not account for the potential costs of litigation if contractors and investors along the planned streetcar line sue the city to recoup costs.
City Council paused the streetcar project on Dec. 4 to obtain the cost estimates of completion, cancellation and annual operations. The full body of council will decide whether to restart the project on Thursday, before a Friday deadline set by the Federal Transit Administration for federal grants.
Read the full audit:
This post was updated at 12:59 p.m. with more information and details.