WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
Home - Blogs - Staff Blogs - Latest Blogs
by German Lopez 12.01.2013
Posted In: News, City Council, Mayor, Streetcar at 04:50 PM | Permalink | Comments (0)
 
 
streetcar

CAF USA Warns of Streetcar Cancellation Costs

Letter comes on eve of council vote on streetcar project

The company in charge of building Cincinnati's streetcars says the city would incur substantial costs if it cancels the streetcar project after it's already gone through some construction and design work.

The Nov. 30 letter from CAF USA Vice President Virginia Verdeja to former Mayor Mark Mallory arrived just one day before Mayor John Cranley, who opposes the streetcar project, and an anti-streetcar majority were sworn in.

"CAF will have to recover all the incurred expenses as well as all the additional cost of cancelling the contract, which would be substantial too," Verdeja writes in the letter.

The letter explains that, on top of the sunk expenses on design work, cancellation would require CAF to pull back on various established deals with subcontractors, which would spur further costs.

For streetcar supporters, the letter renews fears of litigation that could crop up if the project were canceled and contractors decided to pursue their full payday. Those legal costs would fall on the already-strained operating budget that pays for day-to-day services like police and firefighters instead of the capital budget that finances big capital projects like the streetcar, according to city spokesperson Meg Olberding.

The letter was first posted on the Cincinnati Streetcar Facebook page. Its validity was confirmed in an email to CityBeat from former Mallory staffer Jason Barron.

On Nov. 21, Streetcar Project Executive John Deatrick warned the costs of canceling the $132.8 million 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.

Earlier on Sunday, hundreds of streetcar supporters rallied in Washington Park and walked the planned streetcar route in support of the project. They're threatening a referendum if the new City Council moves to pause or cancel the project.

City Council plans to vote on pausing the project on Monday. Because of threats from the federal government that a mere delay could lead to the loss of federal grants, streetcar supporters claim a pause would equate to cancellation.

Read the full letter below:

Updated at 6:13 p.m. with the PDF of the letter.

 
 
by German Lopez 12.01.2013
Posted In: News, City Council, Streetcar, Mayor at 01:06 PM | Permalink | Comments (0)
 
 
washington park streetcar rally

Hundreds Walk Streetcar Line in Support of Project

Rally precedes City Council vote to pause and potentially cancel construction

Several hundred people from various local neighborhoods on Sunday gathered at Washington Park and walked along the planned streetcar route to show their support for Cincinnati's $132.8 million streetcar project.

The rally preceded a City Council vote planned for Dec. 2 that would pause the streetcar project as the freshly sworn-in city government reviews the costs of cancellation versus the costs of completion.

On Nov. 21, Streetcar Project Executive John Deatrick announced canceling ongoing construction for the project could nearly reach the cost of completing it 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.

Supporters at the rally vowed to hold a referendum on any council action canceling or pausing the streetcar project. If they do, construction could be forced to continue until voters make the final decision on the project in November 2014.

Councilman P.G. Sittenfeld on Nov. 26 announced his support for continuing the streetcar project, which gave streetcar supporters the four of nine council votes necessary to block an emergency clause that would make a pause or cancellation ordinance effective immediately and insusceptible to referendum.

But Ryan Messer, leader of the "We Believe in Cincinnati" group backing the streetcar project, warned that council could attempt a special legislative maneuver, such as attaching some sort of funding measure to a bill, to immunize a cancellation or pause ordinance from referendum.

Supporters of the streetcar project claim even a pause in the project could effectively act as cancellation. Federal Transit Administration Chief Counsel Dorval Carter on Nov. 25 told council members that the federal government could consider a delay in the project grounds for pulling federal funds.

Streetcar supporters argue the 3.6-mile loop, which will span from The Banks to Findlay Market in Over-the-Rhine, will produce economic development along the route and a 2.7-to-1 return on investment over 35 years — an estimate conceived through a 2007 study from consulting firm HDR that was later validated by the University of Cincinnati.

But opponents of the project, including Mayor John Cranley and at least five of nine council members, say the project is far too costly and the wrong priority for Cincinnati.

Streetcar supporters will hold a press conference the day after council's vote to announce their steps forward.

 
 
by German Lopez 12.01.2013
Posted In: News, City Council, Mayor at 11:57 AM | Permalink | Comments (1)
 
 
city hall

Cranley, New City Council Take Office

Swearing in sets path to contentious moves on streetcar project, parking plan

Mayor John Cranley and the new City Council were officially sworn in on Sunday after nearly a month of contentious political battles that effectively doomed the parking privatization plan and put the $132.8 million streetcar project in danger.

Cranley was joined by three newcomers to City Council — Kevin Flynn, David Mann and Amy Murray — and six re-elected council members — Chris Seelbach, Yvette Simpson, P.G. Sittenfeld, Christopher Smitherman, Charlie Winburn and Wendell Young  — as they were sworn in on Dec. 1 at 11 a.m., as required by the city charter.

Already, the new mayor and council plan to move decisively on the streetcar project and parking plan. On Dec. 2, council will hold committee and full meetings to consider pausing the streetcar project as the costs of cancellation are weighed with the costs of continuation.

Streetcar Project Executive John Deatrick on Nov. 21 revealed that cancellation costs could nearly reach the the costs of completion, even before considering the cost of potential litigation from contractors already committed to ongoing construction of the project.

Council is expected to have five of nine votes to pause the project. But with Seelbach, Simpson, Sittenfeld and Young on record in support of the streetcar project, council might not have the six votes for an emergency clause that would make a pause or cancellation ordinance immediately effective and insusceptible to referendum.

If streetcar supporters successfully place a council action on the November 2014 ballot, construction could be forced to continue on the streetcar for nearly a year until voters make a final decision.

Supporters of the streetcar project argue pausing the project would effectively act as cancellation, given the federal government's warnings that any delay in the project could lead the Federal Transit Administration to yank $40.9 million in grants that are funding roughly one-third of the overall project.

A larger majority of council and Cranley also plan to quickly terminate the parking plan, which would outsource the city's parking meters, lots and garages to the Greater Cincinnati Port Authority and private companies. The previous administration pursued the deal to obtain a lump sum payment of $85 million that would have paid for various development projects around the city and helped balance the city's operating budget.

On Friday, Cranley announced his appointments to the committee chair positions that play a crucial role in deciding what legislation comes before the full body of City Council.

The appointments for two of the most powerful council committees became particularly contentious after Cranley, a Democrat, snubbed members of his own political party to build what he calls a bipartisan coalition. Winburn, a Republican, will take the Budget and Finance Committee chair, and Smitherman, an Independent, will take control of the Law and Public Safety Committee.

Mann, a Democrat who will also act as vice mayor, will lead the newly formed Streetcar Committee. He opposes the streetcar project.

Sittenfeld, a Democrat, will lead the Education and Entrepreneurship Committee; Simpson, a Democrat, will run the Human Services, Youth and Arts Committee; Murray, a Republican, will head the Major Transportation and Regional Cooperation Committee; Smitherman will chair the Economic Growth and Infrastructure Committee; and Flynn, an Independent, will preside over the Rules and Audit Committee.

Democrats Seelbach and Young won't be appointed to any committee chair positions. Both publicly supported former Vice Mayor Roxanne Qualls in her bid against Cranley for the mayor's office.

Cranley on Wednesday also unveiled Willie Carden, current director of Cincinnati Parks, as his choice for the next city manager. With council's approval appearing likely, Carden will replace City Manager Milton Dohoney, who, during his more than seven years of service, fostered Cincinnati’s nationally recognized economic turnaround, the streetcar project and the parking plan.

Beyond the streetcar project and parking plan, a majority of the new council is determined to structurally balance the operating budget without raising taxes. Some council members argue that's much easier said than done, especially since specific proposals for budget balance are few and far between.

 
 
by Danny Cross 11.27.2013
 
 
streetcar

Morning News & Stuff

The Cincinnati Enquirer abruptly changed its tone about the streetcar project yesterday, writing in an editorial that the city should continue the project and leaving the newspaper on the opposite side of Mayor-elect John Cranley on the two main issues of the campaign it endorsed just weeks ago.

Fourteen months after publishing an editorial against the streetcar project, the three-member Enquirer editorial board yesterday spelled out why it now supports completing the project, suggesting that a main part of its opposition — and to Roxanne Qualls as mayor — was the current administration’s inability to “argue effectively for the project” that Cranley and other conservatives used to take office during an election that saw extremely low voter turnout.

CityBeat’s German Lopez noted on Twitter the irony of The Enquirer now supporting both the streetcar and parking plan while the candidate it endorsed attempts to unravel both — Cranley already stopped the parking plan. The comment drew a response from Enquirer Editor Carolyn Washburn, who is on the newspaper’s editorial board along with Publisher Margaret Buchanan and Editorial Page Editor David Holthaus.

The editorial includes the following paragraph: “In endorsing Cranley, we said he would ‘have to rein in his dictatorial tendencies and discipline himself to be diplomatic, respectful and collaborative.’ What we’ve seen so far is a matter for concern. Hurling insults at professionals like streetcar project manager John Deatrick isn’t what we need. Deatrick enjoys a good reputation as someone who has managed The Banks project and the rebuild of Fort Washington Way. He needs to stay on the streetcar project.”

The editorial was published the same day City Council put completing the project into law and Councilman P.G. Sittenfeld announced his decision to support the project’s completion, which Lopez pointed out leaves Council short of the six votes required for an emergency clause that would immediately halt the project without leaving it open to referendum. Without the emergency clause, streetcar supporters could gather the required signatures to put a 5-4 cancellation vote to referendum, which would force the city to continue working on the project until voters decide on it in November.

Mayor-elect Cranley will hold a vote to stop the project on Monday. With Sittenfeld set to vote against halting the project, Cranley will need either newly elected David Mann or Kevin Flynn to vote in favor of stopping it. Both are on the record as being against the project but have left room to consider the financial realities before making their final decisions. 

Cranley announced this morning that he will name the new city manager at 2 p.m. today. Cranley removed former city manager Milton Dohoney last week.

A story by The Enquirer’s Mark Curnutte yesterday detailed life expectancy disparities among Cincinnati’s poor neighborhoods, finding a 20 year difference at times between citizens of predominantly black or urban Appalachian neighborhoods and people of wealthy white neighborhoods like Mount Lookout, Columbia Tusculum and Hyde Park. The Cincinnati Health Department will release more statistics Tuesday and a community discussion on the issue is set for Jan. 10. 

Pope Francis yesterday criticized the world’s growing wealth disparity, mentioning things like “idolatry of money” and “a new tyranny” in a 50,000-word statement that sharply criticized trickle-down economics.

The Pope via The Washington Post:

"Some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacra­lized workings of the prevailing economic system. … Meanwhile, the excluded are still waiting."

OTR restaurant Kaze will begin offering lunch hours starting on Black Friday.

Away from home and tired of “Friends-giving” gatherings? Here’s a bunch of restaurants serving good stuff on Thanksgiving day. 

Skip Black Friday craziness and use CityBeat’s Gift Guide to shop local this holiday season. There are also plenty of local retailers you can hit up online if you don't wait until the last minute!

If you’re traveling to some stuck-up East Coast city for Thanksgiving, charge the iPad or whatever because there are going to be some storms.

And high winds might cause the Macy’s Thanksgiving Day Parade to take all the air out of the Snoopy balloons so no one flies up into the air like in movies.

The NSA reportedly considered revealing the “porn-browsing history” of certain people considered to have ties to terrorist activity in order to discredit them.   

Great, now America’s durable goods orders are down. Thanks a lot, government shutdown!

At least the country’s jobless claims are back to pre-recession levels. Thanks, Obama?

The University of Cincinnati Bearcats beat UMass Lowell in basketball last night and senior forward Justin Jackson jammed one in the hoop hard.

 
 
by German Lopez 11.26.2013
Posted In: News, Streetcar, City Council, Mayor at 11:06 AM | Permalink | Comments (2)
 
 
pg sittenfeld

Sittenfeld to Support Continuing Streetcar Project

Opponents might not have enough votes to prevent referendum if project is canceled

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.

 
 
by German Lopez 11.26.2013
Posted In: News, City Council, Health, Mayor, Streetcar at 07:24 AM | Permalink | Comments (0)
 
 
election_streetcaressay_juliehill

Morning News and Stuff

Federal funds tied to streetcar project, Mann named vice mayor, local life expectancy varies

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.

A Cincinnati Health Department report found life expectancy can vary by 20 years from one part of Cincinnati to another. Black men in particular can expect to live nearly 10 years less than white men. The Health Department said in a press release that it wants to find out why there's such a disparity.

A Quinnipiac University poll shows Republican Gov. John Kasich still ahead of Democratic gubernatorial candidate Ed FitzGerald in a 44 to 37 percent match-up, but FitzGerald is gaining ground. About 71 percent of Ohioans in the poll said they don't know enough about FitzGerald to form an opinion about him, so FitzGerald still has time to build positive name recognition while Kasich has an opportunity to paint his opponent in a negative light before the November 2014 election.

Hamilton County Prosecutor Joe Deters might be investigated by the Hamilton County Board of Elections for improperly voting.

Councilwoman Laure Quinlivan asked the Hamilton County Board of Elections to cancel an automatic recount of the Nov. 5 vote, which Quinlivan was entitled to after she placed 10th place in the City Council race by only 859 votes.

The grand jury for the Steubenville, Ohio, rape investigation indicted four people, including a school superintendent.

Four Ohio corrections officers were fired over the escape of an inmate serving a life sentence for rape, officials announced Monday.

The University of Cincinnati is aiming for an attendance record when it hosts Louisville for a Dec. 5 game at Nippert Stadium.

The deadline to select Medicare coverage is Dec. 7 at midnight.

Scientists could be on the verge of learning how to erase and rewrite memories.

Morning News and Stuff will most likely be out of service until Monday, Dec. 2 as CityBeat staff celebrates the Thanksgiving holiday.

Follow CityBeat on Twitter:
• Main: @CityBeatCincy
• News: @CityBeat_News
• Music: @CityBeatMusic

• German Lopez: @germanrlopez

 
 
by German Lopez 11.25.2013
Posted In: News, Mayor, City Council at 02:51 PM | Permalink | Comments (0)
 
 
city hall

Cranley Appoints Mann as Vice Mayor

Both mayor-elect and councilman-elect take office on Sunday

Mayor-elect John Cranley on Monday announced he will appoint Councilman-elect David Mann to act as vice mayor.

“Quite simply, he passes the bus test,” Cranley said at a press conference, suggesting that Mann is capable of doing his job if the mayor were to die after getting hit by a bus. “He’s the one guy who can serve as mayor and preserve the city’s heritage.”

Cranley cited Mann’s numerous accomplishments, including his time with the prestigious Harvard Law Review journal and previous stints as mayor when the top vote-getter in the City Council race automatically assumed the position.

Mann and Cranley promised to work together, even if they don’t agree on every issue.

“Your success will be the city’s success,” Mann said to Cranley. “When we disagree, we’ll disagree with respect and go forward.”

Speaking on priorities he shares with Cranley, Mann outlined his intentions to structurally balance the budget, cancel the parking plan, investigate whether the city can afford to terminate the streetcar project, tackle the city’s high poverty rates and refocus city funding to benefit all local neighborhoods.

Cranley and Mann will officially take office on Sunday, along with the rest of the new City Council.

 
 
by German Lopez 11.25.2013
Posted In: News, City Council, Mayor, Streetcar at 02:25 PM | Permalink | Comments (1)
 
 
streetcar

FTA: City to Lose Federal Funds If Streetcar Is Canceled

Clarification necessary as mayor-elect discusses canceling project

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.

 
 
by German Lopez 11.21.2013
Posted In: News, City Council, Streetcar at 04:46 PM | Permalink | Comments (2)
 
 
election_streetcaressay_juliehill

City: Canceling Streetcar Could Nearly Reach Cost of Completion

Only $7.5-$24.5 million left after fully shutting down project, paying back feds

Streetcar Project Executive John Deatrick on Thursday revealed that the city might only keep $7.5-$24.5 million if it cancels the $132.8 million streetcar project.

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.

 
 
by German Lopez 11.15.2013
Posted In: News, City Council, Homelessness at 03:08 PM | Permalink | Comments (1)
 
 
Drop Inn Center

City Council Seeks $30,000 for Winter Shelter

Money would put shelter closer to $75,000 minimum goal

City Council’s Budget and Finance Committee on Thursday called for the city administration to locate $30,000 to help fund the winter shelter, which would push the shelter closer to the $75,000 it needs to remain open from mid-to-late December through February.

The shelter currently estimates it’s at approximately $32,000 in contributions, according to Josh Spring, executive director of the Greater Cincinnati Homeless Coalition.

The city administration now needs to locate the money and turn the transaction into an ordinance, which will officially allocate the funds. Spring says that should go in front of the Budget and Finance Committee in the next couple weeks.

Although the $75,000 is often cited as the shelter’s goal, Spring emphasizes that it’s only the minimum. If early March turns out to be a particularly cold, the shelter would prefer to stay open for some extra time, which would require money above the $75,000 minimum.

But without the city’s contribution, the shelter won’t have enough money to stay open beyond even 30 days.

Spring says the program is necessary to keep Cincinnati’s homeless population from freezing to death. Councilman P.G. Sittenfeld echoed the sentiment at Thursday’s committee meeting, saying it would be shameful if the city allowed people to die due to winter conditions.

The winter shelter aims to house 91 people each night and kept roughly 600 people from the cold throughout the 2012-2013 season, according to Spring.

“It’s a relatively cheap program to run,” Spring previously told CityBeat. “To serve about 600 people with $75,000 is pretty good.”

Still, Spring says money has been more difficult to collect this year. He attributes that to reduced enthusiasm as the concept becomes more commonplace.

“When we started doing this three years ago, it was sort of a new thing,” Spring explained. “It’s not so new anymore, which makes bringing in dollars more difficult. But the need hasn’t changed.”

The shelter is put together by the Greater Cincinnati Homeless Coalition, Drop Inn Center, Strategies to End Homelessness, Society of St. Vincent De Paul and Metropolitan Area Religious Coalition of Cincinnati. It’s supported largely by private contributions.

Anyone can donate to the winter shelter — and Drop Inn Center — at tinyurl.com/WinterShelterCincinnati. To contribute specifically to the winter shelter, type in “winter shelter” in the text box below “Designation (Optional).”

 
 

 

 

 
Close
Close
Close