Cincinnati City Council plans to move $29 million in funds to avoid further delays for the streetcar
project, but the city is still looking at a 2015 opening date. City officials announced Wednesday that a council
committee will vote Monday on three pieces of legislation to keep the
$110 million project in line with the recently announced delayed opening.
One measure would front $15 million to help Duke Energy move underground utility lines from the path of the proposed streetcar route. That money comes from the recent $37 million sale of land near the former Blue Ash Airport.
The city thinks it will get this money back once a dispute with Duke is resolved. The city contends that Duke is responsible for moving the lines, which the utility estimates will cost $18.7 million. Duke counters that the lines only have to be moved because of the streetcar construction, so the city should foot the bill.
“We’re fronting money for the Duke work until we can work out who pays for it with Duke,” city spokeswoman Meg Oldberding said. “It’s to keep the project on time and on budget. Delays would escalate the cost.”
Another ordinance would change the municipal code to “confirm the city’s existing rights” and clarify that utilities pay for the cost of relocating facilities unless otherwise negotiated, according to a news release.
Oldberding said Cincinnati has always maintained that it is the utility’s responsibility to relocate their facilities, so it is not a change in the city’s position.
The final ordinance would change the funding source that is repaying $25 million in bonds sold as part of the original plan to fund the streetcar.
Those bonds were originally being repaid with money coming into city coffers from southern downtown and the riverfront area.
That area wasn’t bringing in as much cash as expected, so the ordinance would have $14 million of the bonds repaid from a 1995 fund set up to collect service payments from the Westin/Star, Hyatt and Saks.
Oldberding said once the downtown district rebounds — it includes the Banks and the casino — it would repay the other fund.
The ordinances would not add to the project’s cost. Construction is scheduled to begin early next year.
Early voting for the 2013 City Council and mayoral elections is now underway. Find your voting location here. Normal voting hours will be 8 a.m. to 4 p.m., although some days will be extended.
Cincinnati yesterday laid down the first two streetcar tracks, putting the project on a clear path to completion after years of financial and political hurdles. The $133 million project is now expected to continue its construction phase over the next three years, with a goal of opening to the public on Sept. 15, 2016. City officials, including Mayor Mark Mallory and City Manager Milton Dohoney, celebrated the milestone and thanked supporters for remaining committed to the project. Meanwhile, former Councilman John Cranley, a streetcar opponent who’s running for mayor against streetcar supporter Vice Mayor Roxanne Qualls, criticized the city for laying down the tracks instead of delaying the project until a new mayor takes office in December. Cranley insists that he’ll cancel the project if he takes office, even though roughly half a mile of track will be laid out by then and, because of contractual obligations and federal money tied to the project, canceling the project at this point could cost millions more than completing it.
The Greater Cincinnati Homeless Coalition yesterday announced it’s suing the Hamilton County Sheriff’s Department over a new policy that attempts to remove homeless people from courthouse steps with the threat of arrest. The sheriff’s office says it still intends to redirect homeless people to housing and other services, but it told WVXU that clearing out the courthouse is necessary to invoke a “type of immediacy” to encourage homeless residents “to seek housing and a better situation.” Advocates call the policy dangerous and unfair. A press conference will be held later today to discuss the lawsuit.
State Senate President Keith Faber says he expects Gov. John Kasich’s proposal for a two-year, federally funded Medicaid expansion to gain approval from a seven-member legislative oversight panel known as the Controlling Board. Faber, a Republican who opposes the expansion, says it’s now time for the legislature to consider broader reforms for Medicaid, which provides health insurance to low-income and disabled Ohioans. After months of wrangling with legislators in his own political party to approve the expansion, Kasich, a Republican, on Friday announced he would bypass the legislature and instead ask the Controlling Board to approve federal funds to expand Medicaid eligibility to more low-income Ohioans for two years. The Health Policy Institute of Ohio previously found the expansion would generate $1.8 billion for Ohio and insure nearly half a million Ohioans over the next decade.
Mayor Mallory says the Millenium Hotel’s owners agreed to conduct a feasibility study to see what kind of renovations the market will support for the hotel. Mallory told The Cincinnati Enquirer that the agreement is the first sign of progress since discussions about overhauling the shabby hotel began.
To tackle concerns about second-hand smoking, one state senator proposed a bill that would ban smoking in a car when a young child is present. It’s the second time in two years State Sen. Charleta Tavares (D-Columbus) introduced the bill.
Allegiant Air will offer low fares to fly to Florida from Cincinnati/Northern Kentucky International Airport (CVG), ending months of speculation over whether the airline would pick CVG or Lunken Airport.
A state audit released on Tuesday found a local water worker was paid $437 in 2001 for work that wasn’t done.
Cincinnati’s 21c Museum Hotel was named the No. 1 hotel in the country and tied for No. 11 in the world in Conde Nast Traveler’s Readers’ Choice Awards.
Scientists found a way to block the dopamine rush associated with THC and make marijuana un-fun to help people with a psychological dependence on the drug.
A small group of Over-the-Rhine homeowners is preparing for a possible lawsuit and other actions should Mayor-elect John Cranley try to cancel the $133 million streetcar project. Ryan Messer says the fight is about protecting his family’s investment along the streetcar route. Streetcar supporters plan to host a town hall-style meeting in the coming weeks to discuss possible actions to keep the project on track, including a referendum effort on any legislation that halts construction of the ongoing project. While Cranley says canceling the streetcar is at the top of the agenda, questions remain about how much it would cost to cancel the project, as CityBeat covered in further detail here and here.
As Cincinnati debates canceling the streetcar project, the Ohio Department of Transportation (ODOT) is evaluating transit systems around the state to encourage more efficiency and cost effectiveness. The agency is particularly focused on how different transit services are dealing with rising demand and shrinking budgets. But if that’s the case, ODOT might carry some of the blame: When Gov. John Kasich took office, ODOT’s Transportation Review Advisory Council pulled $52 million from the Cincinnati streetcar project despite previously scoring the streetcar the highest among Ohio’s transportation projects. The Kasich administration also refused $400 million in federal funding for a statewide passenger light rail system, and the money ended up going to California and other states that took on light rail projects.
Cranley’s other major campaign promise is to stop the city’s plan to lease its parking meters, lots and garages to the Greater Cincinnati Port Authority, but the Port intends to finalize the lease by the end of the month — before Cranley takes office in December — by selling bonds that will finance the deal. The outgoing city administration pushed the parking plan through City Council in a matter of months for an upfront payment of $92 million. But following unsuccessful litigation and a due diligence process, the Port Authority cut the payment to $85 million, and the city is now responsible for paying $14-$15 million to build a new parking garage that the Port was originally supposed to finance under the deal. Cranley and other opponents of the parking plan say it gives up too much control over the city’s parking assets, while supporters argue it’s necessary to modernize the assets and help fund economic development projects.
Several of Cincinnati’s power brokers and building owners are working on a plan that would create a retail corridor in the city’s center and hopefully keep Saks Fifth Avenue in the city. Some of the efforts apparently involve financial incentives from the city, according to details provided to the Business Courier.
In the past decade, Ohio students have shown limited improvement in reading and math scores.
The Cincinnati area could become the largest metropolitan area without an abortion clinic following new regulations imposed by the state budget signed into law in June by Gov. Kasich and the Republican-controlled legislature. CityBeat covered the regulations and the rest of the state budget in further detail here.
The Hamilton County Association of Chiefs of Police released a report outlining stricter guidelines for Taser use. Attorney Al Gerhardstein, who has led lawsuits on behalf of families who lost loved ones after they were Tased, told WVXU he’s encouraged by the report, but he said he would also require annual tests of the devices and a ban on chest shots.
The Cincinnati branch of the Council on American-Islamic Relations is filing a federal complaint against the DHL Global Mail facility in Hebron, Ky., after DHL allegedly fired 24 of its employees on Oct. 9 in a dispute over prayer breaks.
Cincinnati’s Horseshoe Casino reported $18.2 million in gross revenue in October, down from $19.8 million in September. The revenue reduction also cost Cincinnati’s casino the No. 1 spot, which is now held by Cleveland’s Horseshoe Casino. For Cincinnati and Ohio, the drop means lower tax revenue.
The Cincinnati Gay and Lesbian Center plans to close its physical space, but it’s sticking around as a virtual organization and will continue hosting Pride Night at Kings Island. A letter from the center’s board of directors stated that the transition was based on a need to “evolve with the times.”
The U.S. Senate passed a bill that would ban discrimination against gay and transgendered workers, but the bill’s chances are grim in the U.S. House of Representatives. Both Ohio senators — Democrat Sherrod Brown and Republican Rob Portman — voted in favor of the Senate bill. CityBeat previously covered efforts in Ohio to pass workplace protections for LGBT individuals here.
Watch a homeless veteran’s aesthetic transformation, which apparently helped push his life forward:
The popular video of a baby’s reaction to his singing mom might actually show conflicting feelings of fear and sociality, not sentimentality.
While anti-urban Cincinnatians gripe over the twice-approved $95 million streetcar project — some going so far as to attach anti-funding amendments to federal bills that will never be included in the final legislation — authorities on the other side of the river are demonstrating just how little $20 million on transportation funding can provide. The state will widen KY 237 in Boone County using elevated ramps to allow for left-hand turns, adding a freeway-style element to the residential/corridor area. The two-year project will be paid for using Federal Surface Transportation Program funds.
Starting this fall all students in Newport Independent Schools will get free breakfast and lunch because the district is participating in the Community Eligibility Option in President Obama’s Healthy, Hunger-Free Kids Act of 2010.
CBS News says Chief Justice John Roberts initially sided with the other four conservative justices but wasn’t prepared to strike down the entire health care law. Roberts wrote the court’s majority opinion, which upheld most of the legislation.
Here’s three ways the ruling hurt Mitt Romney, according to the Boston Globe.
Scientists say they are on the verge of finding a “God particle” that could explain the creation of the universe.
For particle physicists, finding the Higgs boson is a key to confirming the standard model of physics that explains what gives mass to matter and, by extension, how the universe was formed. …
Rosen compared the results scientists are preparing to announce Wednesday to finding the fossilized imprint of a dinosaur: “You see the footprints and the shadow of the object, but you don’t actually see it.”
Spain won the 2012 European Championship soccer tournament on Sunday with a 4-0 victory over Italy. The Spanish team is being considered one of the greatest ever, as it has won three straight major tournaments, including the 2010 World Cup and 2008 Euro.
Presidential candidate Mitt Romney announced his running mate Saturday: U.S. Rep. Paul Ryan. Ryan is currently the chairman of the U.S. House of Representatives Budget Committee. He is known by many Republicans as an “intellectual” in the party. He is known by everyone else as the guy who tried to dismantle Medicare. Ryan is also a Miami University graduate, and he was once a staffer for now-Gov. John Kasich when Kasich was still a congressman.
State Rep. Connie Pillich, a Democratic House member for suburban Cincinnati, is facing a tough campaign for re-election against Republican Mike Wilson. One of the reasons the campaign is more difficult for Pillich this time is the redistricting process was used to redraw her district to favor Republicans.
Hamilton County is going to be holding eight budget forums. The forums give the public an opportunity to discuss what they think should be prioritized and slashed in the next Hamilton County budget.A new report found the 2020 Cincinnati jobs market will be dominated by health care and computer jobs as the city continues its strong growth. The report also found a surprising amount of top jobs will only require a high school diploma or an equivalent to a high school diploma.
The Coalition Opposed to Additional Spending and Taxes (COAST) is continuing its dishonest campaign to block the Blue Ash Airport deal, but Cincinnati and Blue Ash lawmakers don’t seem too worried. At least COAST admits it’s largely interested in blocking the streetcar “boondoggle,” not just the legitimacy or details of Blue Ash rescinding the original deal. CityBeat previously covered the Blue Ash Airport issue here.
The number of Ohio homeowners late on mortgage payments rose in the second quarter, according to a new report. The rise reverses a trend of dropping mortgage delinquencies seen earlier in the year.
The Complete Ohio College task force will be meeting for the first time today. The group is meant to increase the amount of college degree holders in Ohio.
The Brookings Institute released a study that shows unemployment would be at 7.1 percent without cuts to government job.
Romney has called for a truce on his business record and tax history. Apparently, Romney wants to focus on issues, even though he’s the one that has repeatedly brought up his business record time and time again. Seriously, is this real life?
Speaking of Romney, he will be in Ohio Tuesday.
President Barack Obama takes the old saying “an apple a day keeps the doctor away” really seriously.
Here is a turtle with a mohawk.
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.
Flaherty & Collins, the Indianapolis-based developer that’s building a downtown apartment tower at Fourth and Race streets, said it’s interested in the retail space being left vacant by Saks Fifth Avenue.
Northern Kentucky residents last night got a look at a regional strategy to fight the growing heroin problem in the area. The report, put together by substance abuse and medical experts, law enforcement officials, governmental leaders and business representatives, calls for more physicians and long-term treatment options to address the issue. “We cannot arrest or incarcerate our way out of the problem,” said Dr. Lynne Saddler, director of the Northern Kentucky Independent District Health Department. “The success of this plan really hinges on having sufficient treatment options and resources available so that everyone seeking and wanting treatment can easily access it.”
Union Township Rep. John Becker introduced a bill in the Ohio House this week that would ban most public and private health insurers from providing abortion coverage. The bill has yet to be assigned to a committee. Becker describes himself as one of the most conservative members of the Ohio legislature. He’s also supported the Heartbeat Bill, which would ban abortion once a heartbeat is detected; called needle-exchange efforts part of the “liberal media agenda”; and lobbied for the impeachment of a judge who allowed the state to recognize the same-sex marriage of Jim Obergefell and John Arthur, who recently passed away from Lou Gehrig’s disease.
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.
Speaking at a Cleveland steel mill, President Barack Obama talked up U.S. manufacturing and its potential for economic growth.
The Christmas holiday tree arrives at Fountain Square tomorrow.
Tomorrow is also the day of the One Stop Drop recycling event, where anyone can drop off electronic and other waste — TVs, computers, cellphones and chargers, No. 5 plastics such as butter tubs and yogurt containers, single-use grocery bags and used writing instruments like pencils and pens — from 10 a.m. to 2 p.m. at the Whole Foods Market in Rookwood Commons, 2693 Edmondson Road.
Five crashes in Covington, Ohio, left six horses dead and one injured.
More Ohioans also died on the road in 2012 than the year before.
The world’s oldest animal — a mollusk — missed Christopher Columbus landing in the Americas by 14 years.
In a memo to the mayor and City Council members last night, City Manager Milton Dohoney Jr. revealed the streetcar is facing a $22.7 million shortfall because construction bids were way over budget. The memo says $5.3 million of that budget gap could be brought down through cuts, but fixing the rest requires $17.4 million in additional funds. The memo comes at a time the city is attempting to balance its operating budget by laying off cops and firefighters. But as John Deatrick explained when the city moved to hire him for the streetcar project, the streetcar is part of the capital budget, which is separate from the operating budget and can't be used to balance the operating budget because of legal and traditional constraints.
The budget bill heading to the Ohio House floor would ban comprehensive sex education, defund Planned Parenthood and fund crisis pregnancy centers that pro-choice groups consider "anti-choice." Citing "gateway sexual activity," the bill would open teachers to up to $5,000 in fines for explaining the use of condoms and other birth control to students, and it also bans the distribution of any birth control on school grounds. The bill takes its anti-contraceptive measures to promote an abstinence-only education program. Research has found abstinence-only programs to be generally ineffective, while birth control programs ultimately save money by avoiding costly pregnancies and sexually transmitted infection treatment.
Councilman Cecil Thomas is stepping down, and he will be replaced by his wife of 32 years, Pam Thomas. The appointment has raised questions about how council members are replaced upon resignation, but Thomas says he's just following the rules. Under the current system, designees appoint successors to council seats, but the designees give great weight to the incumbent's input.
JobsOhio repaid $8.4 million to Ohio yesterday — fulfilling a promise it made in March that it would fully repay the state for public funding received since it opened on July 5, 2011. The sum is much higher than the $1 million state officials originally said would go to the agency. JobsOhio's finances came under criticism after it was revealed that Gov. John Kasich was redirecting public funds to the agency, prompting a closer look from State Auditor Dave Yost. JobsOhio is a privatized development agency that Kasich and Republicans established to eventually replace the Ohio Department of Development.
In light of the Boston Marathon bombings, Flying Pig Marathon organizers are evaluating security measures, but they're not sure whether additional measures are needed just yet. The Flying Pig Marathon is expected to draw more than 20,000 participants on May 5 — close to the 23,000 who typically attend the Boston Marathon. Still, only about 150,000 spectators are expected at the Flying Pig Marathon, while about 500,000 typically spectate the Boston Marathon.
City Council is expected to vote today in support of expanding mobile food vending in the city and make the program, which is handled by 3CDC, permanent. The new mobile vending spots will be near nightlife areas in Over-the-Rhine and during the day at Washington Park.
TriHealth and Mercy Health are among the top 15 hospital systems in the United States, according to a new ranking from Truven Health Analytics.
When renewing its contract with Sedgwick Claims Management Services Inc., Kroger asked the company to move its center from Des Moines, Iowa, to Cincinnati, bringing an estimated 55 new jobs to the city.
New surgical tape works like a parasitic worm for extra stickiness.
For the first time, scientists are being allowed to study psychedelics for potential medical treatments.
The city confirmed today that Cincinnati Police Chief James Craig will be leaving Cincinnati to take a job in Detroit. During Craig’s time, the city experienced a significant drop in crime. City officials praised Craig for his attempts to forge better ties between the Cincinnati Police Department and local communities, particularly by establishing the External Advisory Committee, a group of active local community members and business leaders that gives advice on the police department’s policies and procedures. City Manager Milton Dohoney Jr. said the city will begin a nationwide search for Craig’s replacement tomorrow.
Cincinnati Union Bethel (CUB) is selling the Anna Louise Inn to Western & Southern for $4 million, and CUB will be relocating the Inn’s services to Mount Auburn. Many Anna Louise Inn supporters are taking the sale as a sign Western & Southern won, while others are glad the extensive legal battles are finally over. The sale came after years of Western & Southern obstructing the planned renovations for the Anna Louise Inn through court battles and other legal challenges, which CityBeat covered here. In a Q&A with The Cincinnati Enquirer, Western & Southern CEO John Barrett reflected on the events, saying his company took the “high road” throughout the controversy — a claim many Anna Louise Inn supporters dispute.
City Council grilled Dohoney yesterday over fixing the streetcar project’s $17.4 million budget gap and whether paying for the cost overruns to save the project is worth it. Supporters of the streetcar pushed questions and comments that touted the streetcar project’s return on investment, which was further supported by Dohoney’s testimony and previous studies from HDR, a consulting firm, and the University of Cincinnati. Opponents suggested the cost overruns were too much and the project, which now stands at $133 million, is too expensive. A final decision is expected by the end of May. The streetcar project’s funding comes from the capital budget, which can’t be used to fix the city’s $35 million operating budget deficit because of limits established in state law.
The city and county governments are clashing over the city’s hiring policies for companies bidding on the Metropolitan Sewer District’s (MSD) construction projects. The city’s laws require construction firms to have apprenticeship programs, which the city says promotes job training on top of employment. But the Hamilton County Board of Commissioners claims the requirements aren’t feasible and put too much of a strain on companies. Democratic Commissioner Todd Portune questioned why the city’s policy only applies to MSD and not other local government agencies.
The Duke Energy Garden is the latest addition to the Smale Riverfront Park.
A Catholic teacher union will not support Carla Hale, a gay Columbus-area teacher who was fired after she named her girlfriend in an obituary for her mother. Hale says she was fired over her sexuality, but the Catholic Church says she was fired for revealing a “quasi-spousal relationship” outside of marriage. The Catholic Church opposes same-sex marriage, which means all gay couples are in a non-marital relationship under the Church’s desired policies.
The Internal Revenue Service scandal, which involves IRS officials unfairly scrutinizing conservative groups, is now nationwide. Previous reports pinned the practice on a Cincinnati field office, but numerous IRS offices around the country, including one in Washington, D.C., were found to be guilty of the practice in documents acquired by The Washington Post.
Headline from The Columbus Dispatch: “Man who killed wife, then self: ‘I couldn’t take her mouth anymore.’”
The brain catches grammar errors even when a person doesn’t realize it.
At a Budget and Finance Committee meeting today, City Council members grilled City Manager Milton Dohoney Jr. on how the city will fix the streetcar project’s $17.4 million budget gap and whether paying for the cost overrun to save the project is worth it.
Supporters of the streetcar pushed questions and comments that suggested the streetcar will provide the city with a large return on investment, which was supported by Dohoney’s testimony and previous studies from HDR, a consulting firm, and the University of Cincinnati (“Back on the Ballot,” issue of Jan. 23).
Opponents suggested the cost overruns were too much, and the project, which the city manager said now stands at an estimated $132 million to $133 million, is too expensive.
In a memo issued April 30, Dohoney recommended various capital funding sources to fix the streetcar budget gap, including a temporary reallocation of Music Hall renovation funds and money that would have otherwise gone to infrastructure projects around the Horseshoe Casino.
Dohoney clarified that funding for Music Hall is not being permanently pulled; instead, his recommendations would delay Music Hall funding until 2016, which is when the Music Hall project will need the funds, and use currently allocated funding on the streetcar project.
Dohoney added that Otto Budig, president of the Music Hall Revitalization Company, raised no concerns about the streetcar plan after it was explained to him.
Dohoney also clarified that his recommendations would not raise taxes.
A few council members, particularly Councilman Chris
Seelbach, asked whether the streetcar project could face future cost
overruns. Dohoney said it’s possible, based on the project’s scope.
“For major projects like this … there is usually an anticipation that something other than the exact plan may occur somewhere along the line,” Dohoney said.
For the streetcar project, there are a few remaining uncertainties. Dohoney said he doesn’t know for certain whether Messer
Construction, which responded to the city’s bid process with the lowest construction bid, is still willing
to contract with the city under the terms it previously offered. He said Messer officials have indicated they are still interested, but it remains an uncertainty until a contract is in place.
Another uncertainty is exactly how much laying down the tracks will cost. Dohoney said it won’t be possible to gauge the exact cost until Messer or any other company contracts with the city and begins actual work on the project.
But for those situations, Dohoney said the streetcar project has a $10 million contingency fund available, as required by the federal government.
Councilman Chris Smitherman, who opposes the streetcar project, asked whether there’s a funding ceiling that, if breached, would make Dohoney stop supporting the streetcar project. Dohoney said he could not provide a number without further thought and analysis. When Smitherman later asked if the streetcar should be built at any cost, Dohoney said no.
When asked what would happen if the project’s cost overruns were not covered, Dohoney said the project would effectively end.
Smitherman asked how the city administration can be pushing forward with the project, given the cost overruns: “How is the administration continuing to move forward with a project that without a vote of council is dead?”
Dohoney responded by saying the city administration does not have to stop by law until it is directed to do so by City Council.
Ending the project would come with its own costs of about $72 million, according to Dohoney: $19.7 million that was already spent, $14.2 million in close-out costs and $38.1 million in federal grants that would have to be returned to the federal government.
Dohoney said stopping would also make the federal government reluctant about working with Cincinnati in the future: “They’ve let us know they would not be pleased if we did it.”
The city administration is currently working with the federal government to obtain another $5 million that could be used for contingency or to undo some of the overrun fixes being looked at, but federal officials are waiting to see how the city government reacts to the current cost overrun problems before a decision is made, according to Dohoney.
Much of the City Council discussion focused on the streetcar’s merits,
particularly whether the first phase of the project, which would run
from The Banks to just north of Findlay Market, could be successful on its own. The
city plans to eventually expand the route to the University of
Cincinnati and hospitals uptown — a route originally part of the first phase of the streetcar project that was cut after Gov. John Kasich pulled $52 million in state-distributed federal funding in 2011.
“If the intent of the streetcar would only be to go from The Banks to just north of Findlay Market, then I never would have said it's a project worth doing,” Dohoney said. “The intention has always been to connect the two major employment centers of the city and go beyond that.”
But Dohoney later clarified that the first phase of the project would help invigorate hundreds of vacant lots and buildings in Over-the-Rhine, which he said would make that phase of the project a success by itself.
Some opponents of the streetcar have incorrectly attempted to tie the streetcar project to the city’s $35 million operating budget deficit, which will likely be closed in part by laying off cops, firefighters and other city employees. But the streetcar project’s funding comes from the capital budget, which can’t be used to balance the operating budget because of limits established in state law.