by German Lopez
Port wants parking lease money, Ohio No. 2 for job losses, Kasich plans more tax cuts
New documents acquired by The Cincinnati Enquirer show the Greater Cincinnati Port Authority wants $27 million of the city’s $92 million parking lease.
The Port Authority, a city-funded development agency, says it would use
the money for various projects around the city. The request, which has
been supported by Vice Mayor Roxanne Qualls, may explain why the Port
Authority inexplicably took four days to sign its lease agreement with the city:
It wanted some of the money for itself. The city is leasing its parking
meters, lots and garages to the Port Authority, which will then hire
various private operators from around the country to manage the assets.
The deal will provide $92 million up front and at least $3 million a
year afterward, which the city plans to use for development projects and
to plug budget gaps.
Ohio lost the No. 2 most jobs in the nation last month, according to the U.S. Bureau of Labor Statistics. That pushed the state unemployment rate to 7.2 percent in June, up from 7 percent in May, the Ohio Department of Job and Family Services
found. The state lost 12,500 jobs in June, with the private sector
showing losses across the board. The month’s big losses mean the state
has only added 15,000 jobs in the past year, even though the state
actually topped job growth in May with more than 32,000 new jobs. In
June, Pew Charitable Trusts found Ohio was the No. 46 state for job growth between April 2012 and April this year.
Gov. John Kasich says he wants to further cut state taxes to reduce the bracket for the wealthiest Ohioans
to less than 5 percent. Such a cut could require raising regressive
taxes that put more of a burden on the state’s poorest, such as the
sales tax. The latest two-year state budget, which Kasich signed into
law, did just that, as CityBeat previously covered:
It cut income taxes in a way that favored the wealthy, then it raised
sales taxes in a way that forced the lowest-income Ohioans to pay more.
A report released yesterday suggests Ohio taxpayers could be on the hook for costs
if something goes wrong at an oil and gas drilling operation. The
Environment Ohio report finds the state’s regulations on “fracking,” an
oil and gas extraction process, require too little financial assurance
from drilling companies to dissuade dangerous risks. In Ohio, fracking
well operators are required to secure $5,000 in upfront bonds per well, but even those payments can be avoided through regulatory
loopholes. At the same time, damage caused by fracking can cost
communities and the state millions of dollars, and simply reclaiming the
well and its property can cost hundreds of thousands.
Hamilton County Prosecutor Joe Deters says he wouldn’t have prosecuted George Zimmerman,
the man who shot and killed an unarmed black 17-year-old last year in
Florida. Zimmerman was found not guilty of manslaughter and
second-degree murder by a jury on July 13 after he claimed self-defense.
A lack of local access to healthy foods was linked to higher obesity rates
in a study released yesterday. That could be troubling news for
Avondale and other Cincinnati neighborhoods that are deemed “food
deserts,” areas that don’t have reasonable access to healthy foods. CityBeat covered the efforts of some city officials, including Councilwoman Laure Quinlivan, to end food deserts here.
Cincinnati is looking for feedback on local bike projects.
The American Civil Liberties Union is asking Ohio to avoid shutting off electricity in state prisons,
calling the practice “dangerous” as temperatures approach 100
degrees. Ohio’s prisons have already shut down electricity twice in the
afternoon this week and relied on backup generators. The shutdowns are commonly deployed as part of a power
agreement that’s generated $1.3 million for the state since 2010.
Harris Teeter Supermarkets shareholders are suing to stop a planned acquisition from Kroger.
Detroit yesterday became the biggest city in U.S. history to file for bankruptcy.
An “invisibility wetsuit” hides people from sharks.
by German Lopez
Parking lease facing legal dispute, critical memo dismissed, mayor to attend streetcar social
In a letter to the city solicitor, a conservative organization is threatening more legal action
to stop the city’s plans to lease its parking meters, lots and garages
to the Greater Cincinnati Port Authority. The Coalition Opposed to
Additional Spending and Taxes (COAST) claims the city manager exceeded his authority when he
made two “significant and material” changes to the lease agreement after
City Council approved the deal in March. If the city solicitor doesn’t
take up the legal challenge, COAST could sue the city by itself.
Supporters of the parking lease argue it’s necessary to fund development
projects in the city and modernize the city’s parking services, but
opponents say it gives up too much control over the city’s parking
meters, lots and garages and will hurt businesses downtown.
The Business Courier reports that a critical parking memo was supposed to provide a “strike point” for negotiations between the Port Authority and Xerox,
which will manage the city’s parking meters under a lease agreement.
But the city administration didn’t begin sharing the June 20 memo with
anyone else, including the Port Authority, until July 12, after council
members and media outlets began asking the city administration about it.
The memo suggested the city is getting a bad deal from the parking lease agreement and overpaying Xerox. Port and city officials argue the memo relied on outdated information and made technical errors.
Mayor Mark Mallory will today join fellow streetcar supporters
at Rhinegeist Brewery to discuss the streetcar project’s latest news
and future. The city on July 15 set an opening date of Sept. 15, 2016
after finalizing a construction contract with Messer Construction, Prus
Construction and Delta Railroad, which was made possible after City Council closed a $17.4 million budget gap in June. CityBeat recently debunked some of the misrepresentations surrounding the streetcar project here.
Commentary: “Zimmerman Reactions Overlook Broader Racial Issues in America.”
Public access media organization Media Bridges is shutting down
following city and state funding cuts. The organization’s demise is a
great loss to producers like Rufus Johnson, who used its resources for years. The city picked up Media Bridges’ funding after the
state eliminated a fund that was provided by Time Warner Cable, but even the local funding was fully cut in the budget passed in May. City officials
have justified the cuts by pointing to citizen surveys that ranked Media
Bridges poorly in terms of budgetary importance, but a CityBeat
analysis found the surveys were skewed against the low-income
Cincinnatians that benefit the most from public access programs like
State Rep. Peter Beck, a Republican from Mason, is facing multiple felony charges
related to securities fraud. A lawsuit filed in Hamilton County by
investors alleges that money invested at the request of Beck and others
was used for personal gain — specifically, Beck’s campaign — instead of a
business investment as originally intended. Beck has been in power
since 2009, and his current term is set to expire in 2014.
A former poll worker was sentenced to five years for voter fraud after she voted twice for herself and three times for her sister, who’s been in a coma since 2003.
The driver who last August accidentally hit and killed a local cyclist is awaiting his sentence.
Local bike advocacy groups are asking courts to give the maximum
penalty to the driver, who’s facing at most six months in jail and a
The local housing market is rapidly recovering in a
continuing good sign for the economy, with single-family home permits up
48 percent in June compared to the year before, according to the Home
Builders Association of Greater Cincinnati.
Cincinnati Reds games are No. 3 for local TV ratings in all of Major League Baseball, behind only the Detroit Tigers and St. Louis Cardinals.
Xavier University is laying off 31 employees and cutting 20 currently vacant positions.
A Miami University student is getting an astronaut scholarship, making him one of 28 students nationwide to receive the honor.
Entrepreneur says Cincinnati is an “unexpected hub for tech startups.”
A new self-aiming rifle would outshoot human snipers.
Popular Science has a guide for arguing against anti-vaccine crazies here.
by German Lopez
Posted In: News
at 10:55 AM | Permalink
Supporters gathering Thursday to discuss project
Mayor Mark Mallory will join fellow streetcar
supporters Thursday to discuss how the project is coming along and where
The event is the monthly streetcar social, hosted by Cincinnatians for Progress.
Organizers expect to pull in nearly 100 people from around
the city to discuss topics and issues surrounding the project. It will take place on Thursday, July 18, between 5:30 p.m. to 8
p.m. at Rhinegeist Brewery, 1910 Elm St., Cincinnati, Ohio, 45202. For
more information, check out the event’s Facebook page.
Mallory, who’s term-limited from running for reelection
this year, has spearheaded efforts to build a streetcar in Cincinnati.
He’s been joined by a steady Democratic majority in City Council, which
most recently approved $17.4 million more in funding for the project
alongside several accountability measures that will require the city
manager to regularly update council and the public on the project’s
In the past week, the city announced the streetcar is set to open for service on Sept. 15, 2016, after city officials and bidders finalized details for a construction contract.
CityBeat’s cover story for the week of July 10 debunked the top 10 misrepresentations surrounding the Cincinnati streetcar project.
Streetcar supporters argue the project will foster
economic growth and development in Cincinnati, particularly downtown — a
claim backed by studies from advising company HDR and the University of
Opponents claim the project, which now stands at $133
million after recent cost overruns were fixed, is too expensive. They doubt it will succeed in spurring growth
0 Comments · Wednesday, July 17, 2013
Democratic gubernatorial candidate Ed
FitzGerald is urging a coalition effort to begin a long, complicated
petitioning process that could repeal some of the anti-abortion measures
in the two-year state budget.
0 Comments · Wednesday, July 17, 2013
Following years of political controversy,
the Cincinnati streetcar is scheduled to open for service on Sept. 15,
0 Comments · Wednesday, July 17, 2013
The focus on the
Zimmerman trial and its surrounding racial controversy has left out
discussion of systemic racial problems in America.
Cincinnati loses a major outlet for community voices with closing of Media Bridges
2 Comments · Wednesday, July 17, 2013
Rufus Johnson remains optimistic he can
maintain his roles as a television producer and community activist in
Cincinnati, despite Media Bridges closing later this year as a result of
city and state funding cuts.
by German Lopez
City debt outlook worsens, Port apologizes for email about parking memo, fracking tax fails
It may become more expensive for the city to issue debt after Moody’s downgraded the city’s bond rating.
The credit rating agency pinned the blame on the city’s exposure to
local and state retirement systems, as well as the city’s reliance since
2001 on one-time sources to balance the operating budget. Still,
Moody’s does give the city some credit for its economically diverse
population and recently stabilized earnings tax, despite docking the city for bad socioeconomic indicators, particularly resident income levels and historical unemployment rates.
The Greater Cincinnati Port Authority’s CEO Laura Brunner is apologizing to the public and council members
following the exposure of an email that implied she was trying to keep a
critical parking memo away from public sight. Brunner says she was just trying
to buy time so she could directly show the memo to the Port Authority’s
board before it was reported by news outlets, but she acknowledges that
her email was ill-conceived and came off as an attempt to stifle
transparency. The memo suggests Cincinnati is getting a bad deal from its parking lease agreement with the Port Authority and several private operators, but the Port Authority and city officials argue the memo is outdated and full of technical errors.
The Cincinnati Enquirer has a report detailing political contributions from oil and gas companies
that may have helped bring down a state “fracking tax,” which was supposed to
raise state revenue from Ohio’s ongoing oil and gas boom. Apparently,
many of the Republican legislators who staunchly opposed the oil and gas
severance tax also took in a lot of money from the same companies who
would have to pay up. The tax proposal was effectively dead on arrival,
even with the hyperbolic support of Republican Gov. John Kasich. Fracking is an
extraction technique that pumps millions of gallons of water underground
to free up oil and gas. CityBeat covered its effects on Ohio in further detail here.
Water utility leaders are meeting in Cincinnati this week to discuss sustainable business models.
In Cincinnati, water usage has dropped while expenses to treat water
and waste water have escalated, causing the Metropolitan Sewer District
to take in less money. The conference will discuss models that can
adjust around this trend while keeping rates low for customers.
The owners of The Hanke Exchange, a collection of buildings in Over-the-Rhine, say occupancy is going up
as a result of the promise of the Cincinnati streetcar. The property is
now at 84 percent occupancy rate, up from 28 percent three years ago.
Dayton and Cincinnati will hold rallies Saturday showing support for Trayvon Martin,
the unarmed black 17-year-old who was killed by George Zimmerman last
year. Zimmerman was acquitted of murder by a jury last Saturday.
Richard Cordray, the former Ohio attorney general, was confirmed to direct the federal Consumer Financial Protection Bureau, the top agency that will regulate the financial institutions that played a role in causing the Great Recession.
The Hamilton County Young Democrats are hosting a free event
today to meet Democratic State Sen. Nina Turner, who’s also running for
secretary of state next year against Republican incumbent Jon Husted.
If the sun suddenly went out, humanity could take a few weeks to die out and perhaps live in Iceland.
by German Lopez
Posted In: News
at 10:52 AM | Permalink
Previously unreleased memo spurs renewed calls to reject parking lease
The city administration today disputed the findings of a June 20 memo that suggested the city is getting a bad deal from its parking lease agreement with the Greater Cincinnati Port Authority, but it has not said why the memo wasn't passed along to City Council members and Port Authority during the three-plus weeks since the administration received the memo. In its own memo released today, the city claims that the June 20 memo, which was first reported by WCPO yesterday, is outdated and makes a few technical errors.The June 20 memo from Walker Parking Cosultants, a parking consultant hired by the city, found it will be 257 percent more expensive for the new private parking operator to run the city’s
on-street parking services in comparison to what the city currently spends. It also
concludes the city isn’t getting as much revenue as other cities got
under their own parking leases.
“The on-street operating expenses shown in the model are
projected to grow at a faster rate than operating revenues,” the June 20 memo
claims. “The city should expect a private operator to run the parking
system more cost effectively than the current operation, not less
effectively. Therefore, revenues should be expected to increase at a
rate faster than expenses, not slower.”
The memo’s numbers come through estimates provided by
ParkCincy, the operating team set to take over the city’s parking meters, lots and garages
following a decades-long lease agreement between the city and the Port
In particular, the memo highlights what it claims are
extraordinary payments requested by Xerox under the deal: The private
parking operator is asking for a $627,063 fee in 2013, putting about
14.6 percent of projected net operating income to management fees.
That’s far higher than the typical 2.1 percent to 2.3 percent found in
similar parking deals in other cities, according to the memo.
The city disputed the findings in its own memo this morning.
“The information that Walker used was from an early point
in time; the deal was subsequently negotiated from that point to improve
the deal,” wrote City Manager Milton Dohoney in his own memo. “For
example, the profit margin used was based on different parking deals in
other cities that are not the same as ours. As we know, the Cincinnati
model is unique in many ways.”One such trait: Cincinnati’s parking deal includes modernizing the city’s parking meters to accept credit cards and mobile payment.
The city cited a letter from the Port Authority sent to
City Solicitor John Curp during an email exchange on July 12, the same day the Port Authority was given the June 20 memo. The letter contradicted what Port Authority CEO Laura Brunner claims are inaccuracies.
“In its memo, Walker Consulting bases its comparisons on
price, yet doesn’t qualify the information with what level of service
capabilities are included in the price,” the Port Authority’s letter
reads. “The Port Authority is basing its purchasing decisions on price,
but also level of enhancement to the on-street system that mirrors the
City’s desire to modernize these vital assets and position them to
enhance economic development opportunities downtown and in City
Besides this “‘apples to oranges’ comparison,” the Port
Authority’s letter disputes many of the technical details behind
the June 20 memo, particularly questioning some of the measurements
used and comparisons that don’t account for differences between Cincinnati’s parking lease and other cities’ agreements. It also emphasizes that contracts with Xerox and other companies
are not finalized yet.
Much of the focus is now on why the June 20 memo
was kept from City Council, the Port Authority and the public for nearly a month, given the
memo’s controversial findings about a controversial deal.
“The city administration misled the public for months on
the need for the deal, saying it was needed to avoid laying off cops and
firefighters and then they don’t do it. Now it’s keeping vital
information from the public and council. It’s a violation of the public
trust of the highest order,” Democratic mayoral candidate John Cranley said in a statement. “I am urging the
Port to reject this deal that is bad for the City.”
Cranley and other city officials, including several City
Council candidates and council members P.G. Sittenfeld, Christopher
Smitherman and Charlie Winburn, signed a letter to the Port Authority
asking the city-funded agency to reject its agreement with Xerox.
The city manager’s office couldn’t be immediately reached for comment. This story will be updated if further comments
The parking lease was finally signed by the city and Port
Authority in June after months of political and court battles. The
deal was signed even though a majority of City Council now opposes the
lease after the city managed to balance its budget without the parking
deal and without laying off cops and firefighters.City Council approved the parking lease on March 6, more than three months before the June 20 memo was given to the city administration.
In return for the lease, Cincinnati is getting a $92
million lump sum and at least $3 million in annual payments, according
to city estimates. The city plans to use that money to pay down future
budget gaps and fund development projects, including the I-71/MLK
Interchange.Update: Clarified Port Authority didn’t receive the memo until July 12.
by German Lopez
Memo doubts parking plan, city manager defends hiding memo, streetcar to open 2016
The city administration yesterday disputed the findings of a June 20 memo
that suggested the city is getting a bad deal from its parking lease
agreement with the Greater Cincinnati Port Authority, but controversy
remains about why the city administration withheld the memo from City Council and the
Port Authority for three-plus weeks. Opponents of the parking plan are
now attempting to use the memo to convince the Port Authority to reject
the lease with Xerox, but the Port Authority insists that the memo is
laced with inaccuracies and technical errors. The city is pursuing the
lease to obtain a $92 million lump sum and at least $3 million in annual
payments, according to city estimates. The money will be used to pay
for future budget gaps and development projects, including the I-71/MLK
City Manager Milton Dohoney defended the city administration’s decision to withhold the June 20 memo,
but several council members are angered by what they call a “lack
of transparency.” Still, Vice Mayor Roxanne Qualls argued the
administration’s decision to keep the memo from City Council was
understandable because the memo was based on faulty information.
The Cincinnati streetcar got an opening date yesterday: Sept. 15, 2016.
The grand opening comes after years of political controversy, pulled
funding and two referendum efforts nearly killed the project. Ever
since it was first proposed, the streetcar project has been engulfed in
misrepresentations, which CityBeat covered here.
A federal judge made permanent his earlier decision that Ohio must count provisional ballots
if they’re submitted in the right polling place but wrong precinct. The
ruling is being taken as a victory by voting-rights advocates.
Cincinnati is negotiating to claw back
its incentive with Kendle International Inc., which agreed in 2008 to
keep its headquarters and create jobs at the city’s Carew Tower. The
agreement gave Kendle $200,000 over 10 years on the
condition it steadily grew jobs. The failure may add further doubt to
the value of job deals, which were criticized earlier in the year by a
report CityBeat covered here.
Cincinnati Children’s Hospital Medical Center, Christ
Hospital and Bethesda North Hospital are among the best hospitals in the
nation, according to U.S. News’s “Best Hospitals” feature.
Here are some of the odd things that made it into the two-year state budget.
Gov. John Kasich signed a Columbus school plan that will allow levy money to be shared with charter schools that partner with the Columbus school district.
The Senate is the best place in the country to eat hot dogs, according to Food & Wine.
More U.S. hospitals now treat gay parents equally.
Dogs apparently can watch television, which is good news for an Israeli channel explicitly aimed at dogs.