WHAT SHOULD I BE DOING INSTEAD OF THIS?
 
 
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 11.22.2013
Posted In: News, Streetcar, Economy, Taxes at 10:03 AM | Permalink | Comments (0)
 
 
streetcar

Morning News and Stuff

Streetcar cancellation costs outlined, Ohio joblessness spikes, state to repay overpaid taxes

Streetcar Project Executive John Deatrick yesterday revealed that the city might only keep $7.5-$24.5 million if it cancels the $132.8 million streetcar project, after accounting for $32.8 million in sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and $44.9 million in lost federal grant money. But Mayor-elect John Cranley flatly denied the numbers because he claims the current city administration “is clearly biased toward the project and intent on defying the will of the voters.” Meanwhile, at least two of the potential swing votes — incoming council members David Mann and Kevin Flynn — showed skepticism toward the estimates, although Mann said, “If they do hold up, that’s fairly persuasive.” 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. Ohio’s unemployment rate rose to 7.5 percent in October, up from 6.9 percent a year before. The state added only 27,200 jobs, which wasn’t enough to make up for the 31,000 newly unemployed throughout the past year. The numbers paint a grim picture for a state economy that was once perceived as one of the strongest coming out of the Great Recession. In comparison, the U.S. unemployment rate actually decreased to 7.3 percent from 7.9 percent between October 2012 and October 2013. (This paragraph was updated with the nonfarm numbers.) The Ohio Department of Taxation (ODT) will repay $30 million plus interest to businesses that overpaid taxes throughout the past three years. The announcement came after Ohio Inspector General Randall Meyer found ODT had illegally withheld $294 million in overpayments over the years. Meyer’s findings were made through what was initially a probe into alleged theft at ODT. Outgoing Councilwoman Laure Quinlivan could request an automatic recount because she came tenth out of the nine elected council members, right after Councilwoman-elect Amy Murray, by only 859 votes. But Quinlivan and Hamilton County Board of Elections Chairman Tim Burke agreed the recount would be a long-shot. Still, Quinlivan noted that a flip in the count could be a big deal because she supports the streetcar project and Murray opposes it. Cincinnati Public Schools are trying to expand their recycling efforts. Here is an interactive infographic of meat production in 2050. Follow CityBeat on Twitter:• Main: @CityBeatCincy• News: @CityBeat_News• Music: @CityBeatMusic• German Lopez: @germanrlopez
 
 
by German Lopez 11.21.2013
Posted In: News, City Council, Streetcar at 04:46 PM | Permalink | Comments (2)
 
 
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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.
 
 

False Equivalency Confuses Streetcar Debate

11 Comments · Wednesday, November 20, 2013
The streetcar project has empirical evidence to back it up. Mayor-elect John Cranley's trackless trolley idea doesn't.  

Streetcar Supporters Organize Campaign to Save Project

0 Comments · Wednesday, November 20, 2013
Streetcar supporters packed Mercantile Library and Fountain Square on Nov. 14 to start a two-week campaign that seeks to prevent the incoming mayor and City Council from canceling the ongoing project.   
by German Lopez 11.15.2013
Posted In: News, Streetcar, City Council, Mayor at 10:03 AM | Permalink | Comments (1)
 
 
city hall

Morning News and Stuff

Streetcar supporters pack event, federal funds threatened, Dohoney to get severance pay

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.Follow CityBeat on Twitter:• Main: @CityBeatCincy• News: @CityBeat_News• Music: @CityBeatMusic• German Lopez: @germanrlopez
 
 
by German Lopez 11.14.2013
Posted In: News, City Council, Streetcar at 09:01 PM | Permalink | Comments (1)
 
 
streetcar

Streetcar Supporters Pack Mercantile Library, Fountain Square

Supporters hold town hall-style meeting in effort to stop cancellation of project

Supporters of the $133 million streetcar project on Thursday night packed Mercantile Library and Fountain Square to start a two-week campaign that seeks to prevent the incoming mayor and City Council from canceling the ongoing project.Turnout was particularly strong as supporters reached the 200-person capacity at Mercantile Library before the event started. Another 200 watched the event from the Jumbotron screen at Fountain Square, according to the event's organizers.In attendance were several Over-the-Rhine business owners and residents; council members P.G. Sittenfeld, Chris Seelbach and Wendell Young; and several supporters of the project from around the city.The goal of the event was to organize supporters and begin a lobbying campaign to convince the three perceived swing votes in the incoming council — Sittenfeld, David Mann and Kevin Flynn — to support continuing the project. All three have spoken against the streetcar in the past, but they told CityBeat they want to fully account for the project's cancellation costs, completion costs and potential return on investment before making a final decision.Speakers urged supporters to contact the nine newly elected council members and raise awareness about the streetcar's benefits before Mayor-elect John Cranley, who opposes the streetcar project, and the new City Council take office in December.Ryan Messer, a lead organizer of the effort to save the streetcar, spoke about the advantages of the streetcar project for much of the event. "This is a good economic tool that helps all of Cincinnati," he repeatedly stated.Supporters have some empirical evidence to base their claims on. A 2007 study from consulting firm HDR found the streetcar project would generate a 2.7-to-1 return on investment over 35 years. The HDR study was later evaluated and supported by the University of Cincinnati.Project executive John Deatrick acknowledges the 2007 study is now outdated and the city is working on updating the numbers. But he says the streetcar project is supposed to be viewed as an economic development vehicle, not just another transit option.Supporters also warned of the potential costs of canceling the streetcar project. Hours before the gathering, Mayor Mark Mallory released a letter from the Federal Transit Administration that explicitly stated the city would lose nearly $41 million in federal grant dollars if the project were canceled, and another $4 million would be placed in the hands of Gov. John Kasich to do as he sees fit.City spokesperson Meg Olberding previously told CityBeat that the city already spent about $2 million of the federal funds. If the project were canceled, she says the money would have to be repaid through the operating budget that funds police, firefighters and human services instead of the capital budget currently financing the streetcar project.The operating budget has been structurally imbalanced since 2001, so adding millions in costs to it could force the city to cut services or raise taxes.The FTA letter might already be playing an influence for at least one of the swing votes on City Council. On the elevator ride up to Mercantile Library, Sittenfeld told Seelbach and CityBeat, "I will say that today's news is a big gain in the pro-streetcar column."Another threat for the city is potential litigation from contractors, subcontractors, taxpayers and Over-the-Rhine residents and businesses who invested in the project or along the streetcar line with the expectation that the project would be completed. Litigation costs would also come out of the operating budget, according to Olberding."As a trial lawyer, this is actually appealing," said Democratic attorney Don Mooney. "For the city, not so much."Supporters also outlined the potential damage that pulling from the project could do to the city's image, given that developers, businesses and the federal government have put their support and dollars toward the streetcar."Is Cincinnati that city that will dine you and wine you and leave you alone at the altar?" Young asked.But if the lobbying effort, cancellation costs and threat of litigation aren't enough, supporters also presented one more option to save the streetcar: a ballot initiative. Mayor-elect John Cranley on Thursday told The Cincinnati Enquirer that he would be open to allowing some sort of streetcar referendum on the ballot.The ultimate goal for supporters of the streetcar, beyond ensuring sustainable growth in the urban core, is to connect all of Cincinnati through a vast transit network, much like the streetcar lines that ran through Cincinnati before the city government dismantled the old system in the 1950s.That provides little assurance to opponents of the streetcar project. Cranley and at least three hard-liners in the incoming City Council — Amy Murray, Charlie Winburn and Christopher Smitherman — claim the project is too expensive and the wrong priority for Cincinnati. Discussing more phases makes the project appear even costlier to opponents who are already concerned with costs.In its comprehensive plan for 2040, the Ohio-Kentucky-Indiana Regional Council of Governments put the cost of various extensions — to the University of Cincinnati and surrounding hospitals, the Cincinnati Zoo, the Cincinnati Museum Center and the Broadway Commons area near the Horseshoe Casino — at more than $191 million, or $58 million more than the estimated cost for the current phase.But if Cincinnati never completes the first phase of the streetcar project, supporters say it could be decades before other light rail options are considered.
 
 
by German Lopez 11.14.2013
Posted In: News, Streetcar, Mayor at 05:12 PM | Permalink | Comments (1)
 
 
news1_streetcar_jf2

Streetcar Cancellation Would Cost Cincinnati Federal Funds

Federal Transit Administration letter confirms previous warnings

Cincinnati could lose up to $45 million in federal funds if it cancels the $133 million streetcar project, according to a new letter from the Federal Transit Administration released on Thursday by Mayor Mark Mallory. The letter confirms much of what was stated in a previous June 19 letter to Mallory, and it presumably acts as a warning to Mayor-elect John Cranley, who intends to permanently cancel ongoing construction on the streetcar project once he takes office in December.Cranley previously said he could lobby the federal government to re-appropriate the money to other projects, but the FTA letter unequivocally states the money is only for the streetcar project. “FTA’s oversight contractor for the Project informs me that the City’s expenditures plus committed costs on the Project as of this date exceed $116 million, which is approximately 88 percent of the total project cost,” wrote FTA administrator Peter Rogoff. “These commitments include many construction activities that cannot be easily reversed — the City has relocated utilities, embedded rail in City streets, and purchased streetcars. Should the City choose to prematurely terminate the Project, all cost associated with closing down the project, including any claims from the contractors, will not be eligible for any federal reimbursement.” The letter confirms that, as CityBeat originally reported, canceling the streetcar project carries its own costs. Should the city cancel the project, it would first need to return nearly $41 million in federal grant money. The remaining $4 million in federal funds would fall under the discretion of Gov. John Kasich, who could shift the money to other parts of Ohio. City spokesperson Meg Olberding previously told CityBeat the city already spent $2 million of the federal funds. Olberding said the $2 million in repayments would need to come out of the operating budget that pays for cops, firefighters and human services instead of the capital budget that’s currently financing the streetcar project. Since the operating budget has been structurally imbalanced since 2001, adding millions in costs could force the city to cut additional services or raise taxes. Upon cancellation, the city would also need to pay back some of the $94 million in standing contractual obligations for the streetcar project. In many cases, the obligations reflect supply orders and other expenses contractors and subcontractors already took on but haven’t officially billed to the city. If the project were canceled, city officials say the already-spent money would need to be paid back, along with extra costs to close the project — to repave torn-up streets, for example. Project executive John Deatrick previously told CityBeat that paying back the contractual obligations could involve litigation, which would also be paid for through the operating budget, as the city tries to minimize cancellation costs and private contractors try to recoup as much as they can from the project. All of that is on top of the $23 million that’s already been billed to the project as of September, which should grow by $1.5 million each month as contractual obligations are turned into official bills, according to Deatrick. The final decision on the streetcar project rests on City Council. Cranley told The Cincinnati Enquirer on Thursday that he’ll pursue a 30-to-90-day time-out on the project as the city conducts a full accounting of cancellation costs, completion costs and the potential return on investment of the project, following requests from Councilman P.G. Sittenfeld and incoming council members David Mann and Kevin Flynn — three crucial swing votes in the newly elected council of nine — for more information before placing a final vote on the project. The talk of cancellation already spurred some Over-the-Rhine residents and businesses to launch a campaign to save the streetcar. Cranley insists it’s too expensive and the wrong priority for the city, but supporters tout independent studies and their own experiences to argue it would spur economic development. The pro-streetcar group will meet on Thursday at 7 p.m. at the Mercantile Library, 414 Walnut St. #1100, downtown Cincinnati.The full letter:
 
 
by German Lopez 11.14.2013
Posted In: News, Streetcar, Mayor, Development at 09:46 AM | Permalink | Comments (0)
 
 
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Morning News and Stuff

Streetcar supporters to meet today, Dohoney to resign, city continues with retail plans

Supporters of the streetcar project are rallying in a last-stand effort to save the streetcar from an incoming city government that’s threatening to cancel the project. Supporters plan to meet today in a town hall-style meeting at 7 p.m. at the Mercantile Library, 414 Walnut St. #1100, downtown Cincinnati. Some of the supporters of the movement are residents, business owners and realtors in Over-the-Rhine who told CityBeat that canceling the project will set the city’s economic momentum back. Mayor-elect John Cranley disagrees, but the decision is ultimately up to the newly elected City Council to cancel the project, and at least three of nine newly elected council members previously seen as streetcar opponents — P.G. Sittenfeld, David Mann and Kevin Flynn — told CityBeat they’d like to evaluate the costs of canceling the project and the potential return of investment versus the cost of completing construction. City Manager Milton Dohoney will resign on Dec. 1 and receive one year of severance pay, Cranley announced yesterday. To political watchers, the news comes as very little surprise. Cranley and Dohoney disagreed on two key issues — the streetcar project and parking plan, both of which Cranley opposes and Dohoney supported and helped get off the ground. Once the new mayor and City Council take over in December, Cranley says he will appoint a yet-to-be-named interim city manager and begin looking for a permanent replacement. Despite Saks Fifth Avenue’s departure, the city intends to move forward with its plans to build a retail corridor downtown, and others have approached the city about taking Saks’ space, according to Kathleen Norris, managing principal of Urban Fast Forward and the city’s retail leasing consultant. Saks announced yesterday that it’s closing down its downtown store and moving to Kenwood Collection. Although the move is a blow to the city, a few city officials were quick to point to other growth in downtown Cincinnati as an example of what will attract new retail outlets in the future. A deal is nearly set to fund the $107 million interchange project at Interstate 71 and Martin Luther King Drive. As part of the deal, the Ohio Department of Transportation will pay for $52 million, and Cincinnati and the Ohio-Kentucky-Indiana Regional Council of Governments (OKI) will take a loan from the state infrastructure bank to pay for their share. OKI says it will pay for its portion of the loan through $25 million in federal funding, but it’s so far unclear how the city will pay for its share of the project. The outgoing city administration intended to pay for the project through the now-canceled parking plan, which would outsource the city’s parking meters, lots and garages. Cranley says the city can get out of the parking plan without defaulting on the lease agreement with the Greater Cincinnati Port Authority, but Cranley’s position is at odds with the stated opinion of officials in the outgoing city administration and Port Authority. Cranley announced on Tuesday that the parking plan will be called off once he and the new council take office in December, but it’s unclear how much it will cost to break out of the plan and its various contractual obligations. The Ohio House held a hearing yesterday for two bills that would increase safeguards for victims of domestic violence, including new housing and employment protections. CityBeat previously covered the story of Andrea Metil, a domestic violence victim who is calling for greater protections. Only 1,150 Ohioans signed up for Obamacare through the troubled HealthCare.gov portal, the U.S. Department of Health and Human Services announced yesterday. Both the Ohio-wide measure and nationwide number — 106,185 — fell far short of the federal government’s expectations for the first month of enrollment. But many of the troubles are caused by technical problems that have made HealthCare.gov largely unworkable for most Americans. The federal government is working to correct the errors by December, but The Washington Post reports that the website likely won’t be fully functional by then. Meanwhile, Ohioans will be able to enroll in the now-expanded Medicaid program on Dec. 9. Republican Gov. John Kasich got the federally funded Medicaid expansion for two years through the Controlling Board, a seven-member legislative panel, despite the Republican-controlled legislature’s opposition. The Ohio House yesterday approved a bill that reforms municipal taxes, which businesses support but cities oppose. Supporters argue it will simplify the tax code so businesses can more easily work around the state and from county to county, but opponents claim it will reduce how much revenue cities receive. Kasich temporarily delayed convicted child killer Ronald Phillips’s execution so Phillips can donate his non-vital organs to his mother and possibly others. Cincinnati-based Procter & Gamble is shuffling some of its top positions. Here is how Mars might have looked 4 billion years ago.Follow CityBeat on Twitter:• Main: @CityBeatCincy• News: @CityBeat_News• Music: @CityBeatMusic• German Lopez: @germanrlopez
 
 
by German Lopez 11.06.2013
Posted In: News, 2013 Election, Streetcar at 12:08 PM | Permalink | Comments (1)
 
 
streetcar

Streetcar's Fate Still Unknown

New anti-streetcar majority faces unknown costs, hit to operating budget with cancellation

City officials on Wednesday reasserted that it remains unknown how much it would cost to cancel the $133 million streetcar project, and city spokesperson Meg Olberding and project executive John Deatrick agreed the unknown costs are a big concern. Voters on Tuesday elected John Cranley to the mayor’s office and six council members — out of nine total — who oppose the streetcar project, giving streetcar opponents enough votes to cancel the project once the new government takes power on Dec. 1. But, as first reported by CityBeat on Oct. 9, cancellation could carry all sorts of costs with $94 million tied to contractual obligations, including supply orders and other expenses from contractors and subcontractors, and $23 million already sunk on the project. If the city were to cancel, it would also need to return nearly $41 million in grants to the federal government, according to a June 19 letter from the U.S. Department of Transportation. Canceling the project would cost jobs as well. About 150 laborers are currently working on the project, according to Deatrick. He says there’s also management positions involved, but he couldn’t offer an estimate for those jobs and whether they’re working on the project full- or part-time. Deatrick says that it’s difficult to pin down how much cancellation would ultimately cost because the issue would likely be worked through litigation as the city tries to minimize cancellation costs and developers — such as Messer Construction, Prus Construction, Delta Railroad and CAF USA — attempt to maximize what they recoup from the project. Another concern, according to Olberding, is cancellation’s impact on the operating budget. She says the roughly $2 million in federal grant money already spent on the project would have to come out of the operating budget, and litigation costs would come from the operating budget as well. The capital budget, which is financed through bonds and other forms of debt, pays for capital projects like the streetcar. The operating budget typically goes toward day-to-day operations, including police, firefighters and human services. The operating budget has been structurally imbalanced since 2001. If millions in litigation costs and repayments to the federal government are added to it, the city could be forced to cut services and jobs or raise taxes. There are also concerns about how the federal government and Cincinnati’s business partners would react to the cancellation of such a major project. Vice Mayor Roxanne Qualls, Cranley’s opponent in the mayoral race, previously told CityBeat that pulling back on a commitment could break the faith developers and the feds placed in Cincinnati when they agreed to take on the streetcar project. Cranley and other anti-streetcar elects argue the long-term costs — the $88 million in the capital budget for the current phase of the project, the cost of future expansion and $3-4 million that it would cost to operate the streetcar annually — outweigh even the costs of cancellation. Cranley previously told CityBeat that he would help developers involved in the project find other work in the city to recoup the revenue lost from the project’s cancellation. He says Messer and Prus in particular are based in and already work heavily in Cincinnati, so it’s unlikely they would try to cut ties with the city. Streetcar supporters aren’t convinced. If the city pulls out of such a big commitment, officials argue both the federal government and developers could be compelled to look for a more reliable source for future work. Meanwhile, Deatrick says current construction work is progressing on time and within budget. He expects the track on Elm Street to be laid down between 12th and Henry streets by the end of the year. As for the next phase of the project, Deatrick says there’s still no estimated cost. He attributes much of the project’s current political problems to construction bids coming in over budget earlier in the year — a turn of events that led City Council to put another $17.5 million to the streetcar project — so he says the city needs to be really careful with future estimates if it decides to expand the streetcar system. Despite the fresh political threats, the city still intends to conduct meetings with businesses on Nov. 14 and 18 about the benefits of the streetcar. Deatrick says those meetings should show the economic benefits of the rail line that go beyond the streetcar’s use as a transit network. Supporters of the streetcar often point to those benefits as their reasoning for backing the project. Citing a 2007 study from consulting firm HDR that was later evaluated and supported by the University of Cincinnati, supporters say the streetcar project would produce a three-to-one return on investment. Deatrick acknowledges those projections are now outdated, given all the changes the project has gone through since 2007. He says the city has people working on updating the numbers and looking at other economic effects the HDR study may have missed. But opponents of the streetcar project say it’s simply too expensive and the wrong priority for Cincinnati. Still, the potentially high cost of cancellation could prove a bigger fiscal concern. Either way, Cincinnati should find out the full consequences to the project in December.
 
 

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