In a presentation to City Council Feb. 19, City Manager Milton Dohoney Jr. unveiled an unexpected parking proposal that will solve a $25.8 million budget deficit for the 2014 fiscal year and avoid full privatization. The 30-year plan will also put more than $100 million toward economic development in the city.
The plan involves teaming up with the Port of Greater Cincinnati Development Authority and some private operators to manage and modernize Cincinnati’s parking assets. Dohoney called it a “public-public partnership” that will allow Cincinnati to keep control over rates, operation hours and the placement of meters.
The money raised by the plan will be used for multiple development projects around the city, including the I-71/MLK Interchange, Tower Place Mall and a high-rise that will house a downtown grocery store.
The new parking plan will cap rate increases at 3 percent or the cost of living, with any increases coming in 25-cent increments. Private operators will not be allowed to change operation hours, but hours will be initially expanded to 8 a.m. to 9 p.m. downtown and 7 a.m. to 9 p.m. in neighborhoods.
The proposal will not immediately increase downtown’s $2-an-hour rates, but it will increase all neighborhood parking meters to 75 cents an hour. Afterward, the rate cap will make it so downtown rates can only be increased every four years and neighborhood rates can only be increased every 10 to 11 years.
But the rate hikes will only come after technological improvements are made to parking meters. The new meters will allow users to pay with a smartphone, which will enable remote payment without walking back to the meter. After the plan’s 30 years are up, parking assets will be returned to the city with all the new technological upgrades, according to Dohoney.
Some critics were originally concerned that private operators will aggressively enforce parking rules to run bigger profits, but Dohoney said enforcement standards will remain the same.
Enforcement will be done through booting instead of towing, according to the plan. Booting will only be used after the accumulation of three unpaid parking tickets, which is similar to how towing works today. The boots will be automatically removed once the tickets are paid, which will be possible to do remotely through a smartphone.
The plan, which is a tax-exempt bond deal, will provide the city with $92 million upfront cash and $3 million in annual installments after that, although the city manager said the yearly payments will increase over time. The city originally promised $7 million a year from the deal, but Dohoney said estimates had to be brought down as more standards and limitations were attached to address expressed concerns.
The money will first be used to pay for a $25.8 million deficit in the 2014 fiscal year. Another $6.3 million will be set aside for the working cap reserve and $20.9 million will be put in a reserve to pay for a projected deficit in the 2015 fiscal year.
The rest of the funds will be used for economic development. About $20 million will go to the I-71/MLK Interchange, which would match $40 million from the state. The project is estimated to create $750 million in economic impact, with $460 million of that impact in Hamilton County. Dohoney says the economic impact will create 5,900 to 7,300 permanent jobs, and ultimately bring in $33 million in earnings taxes, which means the plan will eventually pay for itself. He also says the funding from the parking deal will allow the city and state to complete the project within two to three years, instead of the seven to 10 years it would take if the city waited for support from the federal government.
If the state does not agree to take up the I-71/MLK Interchange project, Dohoney promised a “mega job deal” that will create 2,500 jobs.
With $12 million for development and $82 million in leveraged funds, the city will also take on massive development projects downtown. Tower Place Mall will undergo a massive conversion. The city will also tear down Pogue’s Garage at Fourth and Race streets and replace it with a 30-floor high-rise that will include 300 luxury apartments, 1,000 parking spaces and a grocery store.
The plan will also use $3 million for the Wasson Line right-of-way and $4 million for the next phase of Smale Riverfront Park, which should be completed in time for the 2015 Major League Baseball All-Star Game.
AEW, Xerox, Denison and Guggenheim will partner with the city and Port Authority for the plan. AEW will manage assets, Xerox will handle parking operations and on-street spaces, Denison will operate off-street spaces and manage facilities and equipment and Guggenheim will act as underwriter and capital provider.
After the City Council hearing, Councilman P.G. Sittenfeld released a statement that raised concerns about expanded meter operation hours, which Sittenfeld fears could burden certain neighborhoods. He also pointed out the plan will not fix Cincinnati’s long-term structural deficit problems. Still, he said the local Port Authority’s management could make the plan “worthy of support.”
Sittenfeld has been skeptical of the parking plan since it was first announced in October. In the past, he warned privatization could cause parking rates to skyrocket. ©
As part of its slate of endorsements announced today, the Cincinnati U.S.A. Regional Chamber of Commerce stated it's opposed to Issue 48, the proposed charter amendment that would block construction of Cincinnati's planned streetcar system.
The Chamber announced its positions on six local issues that will appear on the Nov. 8 ballot.
Catherine Smith Mills, a new Republican candidate for Cincinnati City Council, is raising eyebrows with her campaigning.
Mills held a fundraiser April 8 that featured former Police Chief Thomas Streicher Jr. as the keynote speaker. In a press release touting the event, Mills is quoted as saying, “As a first time candidate, I am so lucky to have the support and mentorship of Republican leaders in Cincinnati like Tom Streicher.”
Is it because he's tired of being on the losing side of debates? Is it because he doesn't have a party endorsement and also lost his base of conservative, West Side voters? Is it because the boss at his day job with the Bengals is tired of all the negative publicity?
Whatever the reason, Cincinnati voters won't have City Councilman Jeff Berding to kick around any longer. Like Alaska Gov. Sarah Palin, Berding has chosen to quit the political game before his current term expires.
Cincinnati’s solicitor says an anti-tax group is wasting taxpayer money by filing a federal lawsuit against the city without first contacting its Law Department to resolve the alleged violations outside of court.
Chris Seelbach, a first-time candidate for Cincinnati City Council, has won an endorsement from the Gay & Lesbian Victory Fund, a national group that could provide a boost in campaign fundraising.
Founded in 1991, the Victory Fund provides strategic, technical and financial support to openly gay and lesbian candidates across the United States, helping them win elections at local, state and federal levels. Most recently, the organization helped elect Mayor Anise Parker of Houston, Texas, the fourth-largest city in the nation.
With a current budget proposal pending before Cincinnati City Council calling for laying off up to 112 police officers, police supervisors are working on a new plan for responding to calls for service.
The plan, dubbed the Police Differential Response Program, is an attempt to reduce the number of calls for service that the department responds to on a daily basis. Under the plan, police won’t send a patrol car for certain types of calls.
Once upon a time, there was a mockumentary made about the Punk band, the Sex Pistols. Filmed some 30 years ago, The Great Rock'n'Roll Swindle parodied the cliches of the music industry by charting the creation, rise and breakup of the group.
Now, the leader of Cincinnati's police union has formed a similarly titled group on Facebook, called Citizens Against Streetcar Swindle (CASS).