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.
Mayor John Cranley might veto an ordinance continuing the $132.8 million streetcar project, even if a majority of City Council wants the project to continue after its costs are reviewed through an independent audit, said Jay Kincaid, Cranley’s chief of staff, on Friday.
The decision means six of nine council members — a supermajority — might be required to overturn a mayoral veto and continue the streetcar project. With only two perceived swing votes on council, that could prove a considerably higher hurdle than a simple majority of five council members.
“Of course he reserves the right to veto the legislation,” Kincaid said.
If Cranley reviews the numbers and decides that the project is too costly, he will use the veto powers provided to him through the city charter, Kincaid explained.
Kincaid’s response came after CityBeat confirmed with City Solicitor John Curp that continuing the streetcar project would require a new ordinance that, in theory, could be vetoed by the mayor. City Council can overcome a mayoral veto with a supermajority, or six of nine total council votes.
When CityBeat talked to Kincaid the day before he confirmed Cranley’s willingness to veto, Kincaid speculated that Cranley would not veto legislation continuing the streetcar project.
“I have not talked to (Cranley) about it. I assume that he would let it go forward since he gave (Councilman) David Mann his word that he would give this time to review it, and he gave the same assurance to (Councilman) Kevin Flynn,” Kincaid previously said.
Five of nine council members on Wednesday agreed to allocate $1.25
million to indefinitely pause the streetcar project and pay
for an independent study that will gauge how much it will cost to
continue or permanently cancel the project.
Streetcar Project Executive John Deatrick previously warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants that would be lost if the project were terminated.
Almost immediately, a majority of council voiced distrust toward Deatrick’s numbers. In a press conference following Deatrick’s presentation, Cranley called city officials in charge of the streetcar project “incompetent.”
Council members Flynn and Mann vocally opposed the streetcar project on the campaign trail. But both said they’ll make a final decision on the project once the cancellation and completion numbers are evaluated through an independent review.
Mann previously told CityBeat, “If they do hold up, that’s fairly persuasive.”
Flynn wouldn’t speculate on what stance he will take if the numbers stand to scrutiny. He said a pressing concern for him is how the city will pay for $3.4-$4.5 million in annual operating costs for the streetcar, which could hit an already-strained operating budget.
If Cranley vetoes an ordinance continuing the streetcar project, both Flynn and Mann would likely need to agree to continue — or at least overturn a mayoral veto — to keep the streetcar alive.
City officials estimate the review will take at least two weeks. Once the audit is finished, council members are expected to announce their final positions on continuing or canceling the project.
Update: Mayor John Cranley on Friday announced the federal government is giving Cincinnati until Dec. 19 to make a decision on the streetcar project. Read more here.
This story was updated to better explain that Jay Kincaid’s second direct quote came from a separate conversation on Thursday, the day before he announced Mayor John Cranley’s willingness to veto.
It will soon be official. Vice Mayor Roxanne Qualls will announce her mayoral campaign on Thursday at 10 a.m. Qualls has already announced her candidacy and platform on her website. Qualls will be joined by term-limited Mayor Mark Mallory, which could indicate support from the popular mayor. Right now, Qualls’ only known opponent is former Democratic city councilman John Cranley, who has spoken out against the streetcar project Qualls supports.
As part of City Manager Milton Dohoney’s budget proposal, anyone who lives in Cincinnati but works elsewhere could lose a tax credit. The budget proposal also eliminates the property tax rollback and moves to privatize the city’s parking services, which Dohoney says is necessary if the city wants to avoid 344 layoffs. The mayor and City Council must approve Dohoney’s budget before it becomes law. City Council is set to vote on the budget on Dec. 14. Public hearings for the budget proposal will be held in City Hall Thursday at 6 p.m. and in the Corryville Recreation Center Dec. 10 at 6 p.m.
Vice Mayor Qualls and Councilwoman Laure Quinlivan are pushing a resolution that demands local control over hydraulic fracturing, or “fracking,” activity. But the resolution will have no legal weight, so the state will retain full control over fracking operations even if the resolution is passed. Qualls and Quinlivan will also hold a press conference today at 1:15 p.m. at City Hall to discuss problems with fracking, which has come under fire by environmentalist groups due to concerns about air pollution and water contamination caused during the drilling-and-disposal process.
Greater Cincinnati hospitals had mixed results in a new round of scores from Washington, D.C.-based Leapfrog Group.
In an effort to comply with cost cutting, the Hamilton County recorder is eliminating Friday office hours.
The Ohio-Kentucky-Indiana Regional Council of Governments is looking for feedback for the Tristate’s transportation and economic plans.
This year’s drought is coming to an end in a lot of places, but not southwest Ohio.
The Ohio Senate passed a concussion bill that forces student athletes to be taken off the field as soon as symptoms of a concussion are detected.
As the state government pushes regulations or even an outright ban on Internet cafes, one state legislator is suggesting putting the issue on the ballot. State officials argue unregulated Internet cafes are “ripe for organized crime” and money laundering. An Ohio House committee is set to vote on the issue today. If passed, the bill will likely put Internet cafes that use sweepstakes machines out of business.
Ohio Gov. John Kasich could be preparing for a 2016 campaign. Kasich was caught privately courting Sheldon Adelson, the casino mogul who spent millions on Newt Gingrich and Mitt Romney’s failed campaigns for the presidency. The early meetup shows how valued super PAC funders are to modern political campaigns. State Democrats criticized the meeting, saying it was Kasich “actively positioning to be the next Ohio darling of the special interests.”
Ohio Sen. Rob Portman had a bit of trouble giving a speech on the federal debt yesterday. Hecklers repeatedly interrupted Portman, a Republican, as he tried to speak. The final protesters were escorted out of the room as they chanted, “We’re going to grow, not slow, the economy.” Portman says his plan is to promote growth. But both Democrats and Republicans will raise taxes on the lower and middle classes, according to a calculator from The Washington Post. Tax hikes and spending cuts are typically bad ideas during a slow economy.
U.S. House Speaker John Boehner is facing the wrath of his tea party comrades. The far right wing of the Republican Party is apparently furious Boehner purged rebellious conservative legislators out of House committees and proposed $800 billion in new revenue in his “fiscal cliff” plan to President Barack Obama.
To help combat fatigue at space stations, NASA is changing a few light bulbs.
Does this dog really love or really hate baths? You decide:
In February, the U.S. unemployment rate fell to 7.7 percent, from 7.9 percent in January, and the nation added 236,000 jobs. Many of the new jobs — about 48,000 — came from construction, while government employment saw a drop even before sequestration, a series of across-the-board federal spending cuts, began on March 1. Economists seem quite positive about the report.
In January, Ohio’s unemployment rate rose to 7 percent, from 6.7 percent in December, with the number of unemployed in the state rising to 399,000, from 385,000 the month before. Goods-producing and service-providing industries and local government saw a rise in employment, while jobs were lost in trade, transportation, utilities, financial activities, professional and business services, leisure and hospitality, state government and federal government. In January, U.S. unemployment rose to 7.9 percent, from 7.8 percent in December.
A new report outlined renovations for the city-owned Tower Place Mall, which is getting a makeover as part of Cincinnati’s parking plan. A lot of the retail space in the mall will be replaced to make room for parking that will be accessed through what is currently Pogue’s Garage, but two rings of retail space will remain, according to the report. The parking plan was approved by City Council Wednesday, but it was temporarily halted by a Hamilton County judge. The legal contest has now moved to federal court, and it’s set to get a hearing today.
Meet the mayoral candidates through CityBeat’s two extensive Q&As: Roxanne Qualls and John Cranley. Qualls spoke mostly about her support for immigration, the parking plan and streetcar, while Cranley discussed his opposition to the parking plan and streetcar and some of his ideas for Cincinnati.
A Hamilton County court ruled against the controversial traffic cameras in Elmwood Place, and the Ohio legislature is considering a statewide ban on the cameras. In his ruling, Judge Robert Ruehlman pointed out there were no signs making motorists aware of the cameras and the cameras are calibrated once a year by a for-profit operator. The judge added, “Elmwood Place is engaged in nothing more than a high-tech game of 3-card Monty. … It is a scam that motorists can’t win.” Bipartisan legislation was recently introduced to prohibit traffic cameras in Ohio.
JobsOhio, the state-funded nonprofit corporation, quietly got $5.3 million in state grants, even though the state legislature only appropriated $1 million for startup costs. JobsOhio says it needed the extra funds because legal challenges have held up liquor profits that were originally supposed to provide funding. In the past few days, State Auditor Dave Yost, a Republican, has been pushing Republican Gov. John Kasich and JobsOhio to release more details about the nonprofit corporation’s finances, but Kasich and JobsOhio have been pushing back.
Advocates for Ohio’s charter schools say Kasich’s budget amounts to a per-pupil cut, with funding dropping from $5,704 per pupil to $5,000 plus some targeted assistance that ranges from hundreds of dollars to nothing depending on the school. A previous CityBeat report on online schools found traditional public schools get about $3,193 per student — much less than the funding that apparently goes to charter schools.
Fountain Square will be getting a new television from Cincinnati-based LSI Industries with the help of Fifth-Third Bank and the Cincinnati Center City Development Corporation (3CDC). The new video board will have better image quality and viewing angles, but it will also come with more screen space for sponsors.
Ohio’s casino revenues rose in January. That could be a good sign for Cincinnati’s Horseshoe Casino, which opened Monday.
In light of recent discussion, Popular Science posted a Q&A on drones.
Cincinnati Parks Department Director Willie Carden, Mayor John Cranley's choice for city manager, has withdrawn from the nomination process, the mayor's office announced on Friday.
The mayor's office said it will keep Acting City Manager Scott Stiles in his current role while it launches a nationwide search for a permanent replacement.
"After consulting with my family, we have come to the personal, private decision that it is best for me to remain as the director of the Parks Department," Carden said in a statement. "John Cranley is going to be a great mayor and this is a difficult decision for me. But it’s simply about what is best for me and my family. As a personal matter, I would ask that you respect our family's privacy."
Carden's nomination initially drew wide praise from City Council, but it was snared in controversy after Carden said he will continue to live outside Cincinnati — a violation of the city charter. The Cincinnati Enquirer also uncovered an ethics probe that found Carden wrongfully took pay from both the city and the private Parks Foundation.
Councilman Chris Seelbach responded ambivalently to the news, praising both Carden and the decision to go through a national search.
"Although I would have supported Willie Carden as the permanent city manager, I'm glad to see we are now going to undertake the process we should have taken all along," Seelbach posted on Facebook.
When Cranley announced the nomination on Nov. 27, the Charter Committee, Cincinnati's unofficial third political party, criticized Cranley for not undertaking a transparent national search prior to his decision.
City Council's Rules and Audit Committee almost considered Carden's nomination on Tuesday, but the decision was delayed for a week to give council members time to interview Carden one-on-one and evaluate ordinances for the nomination.
Voters last night elected an anti-streetcar City Council majority and mayor, which raises questions about the $133 million project’s future even as construction remains underway. Ex-Councilman John Cranley, who ran largely on his opposition to the project, easily defeated streetcar supporter Vice Mayor Roxanne Qualls 58-42 percent, while non-incumbents Democrat David Mann, Charterite Kevin Flynn and Republican Amy Murray replaced Qualls, Laure Quinlivan and Pam Thomas on council to create a 6-3 anti-streetcar majority with Democrat P.G. Sittenfeld, Republican Charlie Winburn and Independent Chris Smitherman. Democrats Chris Seelbach, Yvette Simpson and Wendell Young — all supporters of the project — also won re-election. It remains unclear if the new government will actually cancel the project once it takes power in December, given concerns about contractual obligations and sunk costs that could make canceling the project costly in terms of dollars and Cincinnati’s business reputation.
Other election results: Cincinnati voters rejected Issue 4, which would have privatized Cincinnati’s pension system for city employees, in a 78-22 percent vote. Hamilton County voters overwhelmingly approved property tax levies for the Cincinnati Zoo and Public Library of Cincinnati and Hamilton County in 80-20 percent votes. In the Cincinnati Public Schools board election, Melanie Bates, Ericka Copeland-Dansby, Elisa Hoffman and Daniel Minera won the four available seats.
At 28 percent, citywide voter turnout was at the lowest since 1975, Hamilton County Board of Elections Chairman Tim Burke told The Cincinnati Enquirer.Ohio Libertarians are threatening to sue if Republican Gov. John Kasich and the Republican-controlled Ohio legislature pass a bill that would limit ballot access for minor parties. Although many of the new requirements for signatures and votes were relaxed in the Ohio House, minor parties claim the standards are still too much. Critics, who call the bill the “John Kasich Re-election Protection Act,” claim the proposal exists to protect Republicans, particularly Kasich, from third-party challengers who are unhappy with the approval of the federally funded Medicaid expansion. CityBeat covered the Ohio Senate proposal in further detail here.
Meanwhile, the Kasich administration stands by its decision to bypass the legislature and go through the Controlling Board, a seven-member legislative panel, to enact the federally funded Medicaid expansion despite resistance in the Ohio House and Senate. The Ohio Supreme Court recently expedited hearings over the constitutional conflict, presumably so it can make a decision before the expansion goes into effect in January. Opponents of the expansion, particularly Republicans, argue the federal government can’t afford to pay for 90 to 100 percent of the expansion through Obamacare as currently planned, while supporters, particularly Kasich and Democrats, say it’s a great deal for the state that helps cover nearly half a million Ohioans over the next decade.
Across the state, voters approved most school levy renewals but rejected new property taxes.
Maximize your caffeine: The scientifically approved time for coffee drinking is between 9:30 a.m. and 11:30 a.m.
Mayor-elect John Cranley, the newly elected City Council and the Greater Cincinnati Port Authority on Tuesday agreed to eliminate the city’s plan to lease its parking meters, lots and garages to the Port Authority once newly elected officials take office in December.
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 announcement follows the Nov. 5 election of Cranley and a City Council supermajority opposed to the parking plan.
“It is a tremendously positive announcement for the city and its citizens that the current parking deal is now dead,” Councilman P.G. Sittenfeld said in a statement. “I was glad to help sound the alarm on this deal from the beginning, but this victory ultimately belongs to the public, who were instrumental in providing sustained public pressure. This has shown us that the public values its public assets and wants long-term solutions to our financial challenges, not short-term fixes.”
Cranley and Sittenfeld were joined by
Councilman Christopher Smitherman, incoming council members Amy Murray
and David Mann and Port Authority CEO Laura Brunner for the
announcement. They discussed continuing the city’s partnership with the Port Authority, including the possibility of establishing a development fund for the agency.
Cranley also reiterated his intention to
pursue some of the development projects originally tied to the deal,
particularly the interchange at Interstate 71 and Martin Luther King
Drive. He also said the city will try to find other ways to leverage the city’s parking assets, including the possibility of stricter enforcement and better technologies.
From the start, opponents of the parking plan claimed it gave up too much local control over the city’s parking assets. The plan would have leased the assets to the Port Authority — a local, city- and county-funded development agency — but the Port planned to sign off operations to private companies from around the country.
The plan grew particularly controversial in July, after a previously concealed memo critical of the plan was leaked to media outlets and council members.
The city administration originally claimed the parking plan — and the lump-sum payment it would produce — was necessary to balance the city’s operating budget without laying off cops and firefighters.
But when the plan was held up in court following the current City Council’s approval on March 6, council managed to balance the operating budget without layoffs by making cuts elsewhere, including council members’ salaries, and tapping into higher-than-expected revenues.
City Council also managed to use alternative funding sources to finance the development of a downtown grocery store and luxury apartment tower at Fourth and Race streets, which city administration officials originally touted as a major selling point of the parking plan.
Still, city administration officials claimed the plan was necessary to
fund other development projects around the city, help balance the budget for the next two years and modernize the city’s parking assets so, for example, all parking meters would have the ability to accept credit card payments.
City Manager Milton Dohoney, a proponent of the parking plan, also proposed using the lump-sum payment to pay for a parking garage at Seventh and Sycamore streets. Under the original parking plan, the Port Authority was supposed to pay for the garage; after the Port Authority completed its review of the deal on Oct. 9, it backed down from the commitment.
The Port Authority’s review also reduced the lump-sum payment to $85 million from $92 million. Cranley and other critics said the reduction and the new $14-$15 million cost brought on by the parking garage effectively reduced the upfront payment to $70-$71 million.
Without the parking plan, the planned projects will require new sources of funding if they are to proceed. But to critics, the plan’s dissolution is an intangible victory that has been months in the making.
Updated with more details.
More than a dozen business and philanthropic entities support the Southwest Ohio Regional Transit Authority’s (SORTA) offer to develop a private-public partnership to fund the streetcar’s operating costs, Eric Avner, vice president of the Haile Foundation, told CityBeat on Tuesday.
If enough private contributors agree to finance the streetcar’s operating costs, they could address a major concern raised by streetcar opponents and provide the clearest path forward for the $132.8 million streetcar project since the new mayor and City Council took office early this month.
The Haile Foundation already contributed $1 million to an operating reserve fund for the streetcar, but Avner cautions that his organization’s donation is only the beginning, given all the other entities interested in moving the streetcar forward.
Avner says 14 other business and philanthropic leaders supported the SORTA concept in person or through writing in time for SORTA’s board of trustees meeting on Tuesday. Among other community leaders, Avner cites Otto Budig, Cathy Crain of Cincinnati State, William Portman of the University of Cincinnati, Jeannie Golliher of the Cincinnati Development Fund, Rick Greiwe of Greiwe Development and Jack and Peg Wyant of Grandin Properties.
In a letter to SORTA, the Haile Foundation offers to recruit and financially establish a commission of community leaders that will work with the agency to create an operating and revenue plan that will require no funds from the city of Cincinnati. The letter also promises to leverage the initial $1 million investment to secure additional contributors and build a fund that would pay for a full year of operating costs.
Mayor John Cranley called SORTA’s offer “woefully
insufficient” in a press conference on Tuesday. Cranley said the city will need financial assurances far above the Haile
Foundation’s $1 million to cover $3.4-$4.5 million in annual operating costs for the streetcar over 30 years.
Councilman Kevin Flynn, one of two potential swing votes
on City Council, agreed with Cranley’s assessment, but he said the proposal could become a viable option if the city receives more
assurances from SORTA and private entities that show the groups are serious in their offer.
SORTA already agreed to help operate the streetcar if the
project is completed, but its decision to take up the operating costs shows
an additional commitment to the project.
The agency claims bus services will not be impacted by its increased commitment to the streetcar.
City Council expects to vote on Thursday on whether to restart the streetcar project. Council paused the project on Dec. 4 while the city audits the project’s completion, cancellation and operating costs.
Read the Haile Foundation’s full letter below:
Cincinnati mayoral candidate and ex-Councilman John Cranley today announced his two-part innovation plan, which he said would boost government transparency and help continue the nationally recognized momentum Cincinnati has recently gained as a tech startup hub.
The plan would take $5 million over four years from the capital budget and ask local startup incubators Cintrifuse, The Brandery and CincyTech where they would like to see the money going. As one example, Cranley said the money could help host an annual “hackathon” in which savvy innovators compete to create apps that could better connect residents and city services.
When asked specifically where the money would come from, Cranley said it would be part of the $30 million the city allocates each year to capital projects. Cranley also remarked that the city will have more capital funds if he dismantles the streetcar project, which he has long opposed.
Cranley’s innovation plan also calls for hiring a chief innovation officer (CIO) and creating “CincyData,” a transparency initiative that would gather and publish city data to create “a more efficient, effective and user-friendly City government.”
“This is about improving customer service for city services,” Cranley said.
The CIO and CincyData would also help find new ways to carry out city services in the hopes of running the local government more efficiently.
Cranley said he’s in preliminary talks with Cincinnati Bell to see what it would take and how much it would cost to establish CincyData.
As for the CIO, paying for the position’s salary would cost the city about $50,000 to $60,000 a year, according to Cranley. That’s about 0.01 to 0.02 percent of the city’s operating budget.
Cranley said he currently has no one in mind for the CIO position.
Cranley is running for mayor against fellow Democrat Vice Mayor Roxanne Qualls, who has publicly supported Cincinnati’s startup incubators during her time in City Council; Libertarian Jim Berns; and Independent Sandra “Queen” Noble.
City Council on Aug. 7 approved using $4.5 million to help move Cintrifuse, The Brandery and CincyTech to new Over-the-Rhine headquarters. Cintrifuse claims the new home will make it easier to attract and keep businesses in Cincinnati, especially since Over-the-Rhine is currently undergoing its own economic revitalization.
An Aug. 14 study from Engine and the Kauffman Foundation found high-tech startups add jobs more quickly than new businesses in other sectors, but the startups are also just as likely to fail as other businesses in the long term. The study also found that tech startups are more likely to cluster, so establishing a city or other location as a hub can help bring in more similar businesses.