There is no doubt that residents and businesses, in Downtown/OTR/Uptown, see the value in the proposed streetcar system. It is also quite understandable that community leaders in neighborhoods like Westwood, Price Hill, and Mt. Washington may not exactly see the benefits to their respective communities.
Every community would like to have more amenities and improved services. These are the things that help make neighborhoods successful and great places to live. At the same time they understandably don’t want to see their taxes rise. So lets break down the tax structure and how the streetcar will play into this whole situation…
Residential properties are accepted losers when it comes to taxes. They simply demand far more services than they pay for in taxes. Those services (i.e. trash, police, fire, schools, etc) are made possible by those that pay exceedingly more than they demand (i.e. office, industrial).
With that said, residential properties can get close to offsetting their service demands. The best opportunity for this to occur is in the most densely populated (or built) areas where economies of scale factor in big time. In Cincinnati’s case there is no other residential neighborhood that has a potentially better return on taxes than Over-the-Rhine.
These most densely built areas need to be focused on first and foremost, and need to be populated with as many people as possible. This allows you to grow your residential base without significantly growing the demand for services (in OTR’s case you may actually decrease demand for services like police and fire by repopulating the neighborhood).
So while a streetcar line only serving Downtown, OTR, and Uptown seems to only benefit those 3 neighborhoods…it is really affecting the financial stability of the entire city, and allows for a growth in tax base without a significantly higher demand for services. This means extra tax revenues can then be used for increased services and funding for the other 49 great Cincinnati neighborhoods.
*Tax data from City of Cincinnati’s 2006 Annual Financial Report (pdf 5mb)
Related reading on UrbanCincy:
Keep the heart strong