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Business News Transportation

Will Expanded Clout For Port Authority Strengthen Its Economic Development Capabilities?

Early this year, the U.S. Army Corps of Engineers designated the entire 226-mile stretch of the Ohio River between Huntington, WV and Louisville, KY as the “Ports of Cincinnati and Northern Kentucky,” greatly expanding it from its previous 26 miles. This expansion mirrors other large-scale capacity and access expansions across America’s inland ports.

In Duluth, MN work began in May on a project to enhance rail connections and the intermodal abilities of the port. The Duluth Seaway Authority, the western edge of the St. Lawrence Seaway, states that it is the largest project they have undertaken since their creation in the 1950s.

Further south, America’s Central Port, the port authority for the St. Louis region, began a new $50 million project to provide rail access to six Class I carriers and increase intermodal capabilities. And ports along the Great Lakes are seeing increased shipments of steel, grain, and salt, and are also upgrading rail infrastructure to keep up with demand.

The growth of these ports coincides with several different events. As the nation continues to recover economically from the Great Recession, traffic is increasing along most of America’s transportation corridors; and rail-river/lake intermodal traffic is becoming increasingly popular.

This trend is evidenced in the US Department of Transportation’s recent designation of the Mississippi River as a “container-on-vessel route,” which will provide a vast corridor for container shipping by barge along the entire Mississippi River system. Founded in 1999 to stimulate economic development in Illinois, Iowa and Missouri, the Mid-America Port Commission plans to create even more port authorities in the near future along the Mississippi River.

The congestion in Chicago’s rail yards and limited real estate along Lake Michigan is also contributing to growth in other Midwestern ports. Also looming in the background of these expansion decisions is the soon-to-be-opened Panama Canal expansion, which is expected to increase traffic within all of America’s ports and transportation corridors.

This recent expansion of Cincinnati’s port authority makes it the second largest inland port in the United States, and is expected to enable the region to take better advantage of these trends and help serve as a catalyst for economic development.

The problem for the Port of Greater Cincinnati Development Authority, however, is a continued lack of dedicated funding stream. This limits the organization’s ability to pursue economic development projects that have come to define its core mission.

REDI CEO Johnna Reeder spoke to this at an August meeting for the Port of Greater Cincinnati Development Authority, for which she serves as a board member. At that time Reeder said that the region must do a better job at attracting manufacturing jobs and wants the Port Authority to play a larger role in doing just that.

A proposal to lease the bulk of Cincinnati’s parking assets was approved in June 2013 and would have provided such a revenue stream for the Port Authority. This deal, however, was later cancelled upon the arrival of newly elected Mayor John Cranley (D) and affirmed by a majority of City Council in December 2013.

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Business News Transportation

Beyond Downtown, Cleveland’s RTA Rebuild Spurring New Development

Amidst further positive national news for upgraded Midwestern rail service, All Aboard Ohio met in Cleveland for their summer meet-up. At the weekend-long gathering, the group toured the Greater Cleveland Regional Transit Authority’s numerous heavy rail, light rail, and bus rapid transit lines.

Often unknown to outsiders, the Cleveland area boasts some 39 miles of rail transit, with daily ridership of over 53,000. As a result, Cleveland’s transit ridership dwarfs that of both Cincinnati and Columbus. Even though Cleveland is approximately the same size as Cincinnati and Columbus, its transit ridership is bigger than both of them combined.

In addition, All Aboard Ohio executive director Ken Prendergast led the tour and showcased the substantial amount of transit-oriented development that is taking place throughout Cleveland.

With the opening of Cincinnati’s first few miles of rail transit just over a year away, it made the tour particularly relevant. As a result, I was joined by a small Cincinnati contingent including City Councilman Chris Seelbach (D), SW Ohio Director of All Aboard Ohio Derek Bauman, and Price Hill community leader Pete Witte.

The group’s tour began at Terminal City Tower in downtown Cleveland, where inter-city trains once stopped and all rapid transit lines currently meet. From there we took the Green Line to the lakefront, passing large-scale transit-oriented development along the Cuyahoga River, the Port of Cleveland, Cleveland Brown Stadium, Rock & Roll Hall of Fame, and the city’s Amtrak station.

Negotiations are currently underway for the construction of a large intermodal hub where Amtrak is currently located, combining Amtrak, Greyhound, Megabus, and many local buses from Akron and other cities into one complex.

The Green Line’s E. 55th Street Station was showcased after having been rehabbed in 2011. It is part of GCRTA’s program to rebuild every station in its system. Nearby this still young station, an old hospital is undergoing a $75 million redevelopment that will refit it with apartments.

Changing to the Blue Line, the train ran through semi-suburban areas that reminded the Cincinnati contingent of the Wasson Corridor. Among these areas is the Van Aken District at the Warrensville Station at the end of the line. There, Joyce Braverman, the planning director for Shaker Heights, gave us a walking tour of the area and detailed the numerous transit-oriented developments currently under construction, including a $91 million residential development and a rebuild of a pedestrian-unfriendly intersection.

A newly renovated station – just four days old – greeted us at Little Italy along with the Feast of the Assumption Festival. In addition to the throngs of neighborhood residents filing in and out of the trains, redevelopment can be found nearby in University Circle. During an opportunity to speak with the president of University Circle Inc., he boasted about the area’s transformation from a run-down district with multiple surface parking lots into one of the city’s most desirable neighborhoods.

The numbers back up the claims. In just a decade, more than $6 billion in private investment has flowed to the neighborhood, generating some 10,000 new jobs and 11,000 new residents.

While serviced by RTA’s Red Line, this particular area is also anchored by Cleveland’s now famous Health Line BRT, which runs along Euclid Avenue to the center city and is the highest-rated BRT line in North America.

Through this station rebuilding program, Cleveland has used it as an opportunity to leverage an impressive amount of private investment in the surrounding areas. While success of downtown Cleveland has been well-publicized amidst the continued struggles elsewhere in the region, there are bright spots popping up along the city’s transit corridors. With more than 100 rail and BRT stations in the region, many more opportunities seem to be on the horizon.

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News Politics Transportation

Stars Aligning for Cincinnati to Chicago High-Speed Rail

4123288130_f7b778d9d5_bLocal and national developments show positive signs for America’s oft-criticized national passenger railroad company, Amtrak. A railroad reform bill introduced in the Senate contains many positive changes for Amtrak and local support continues to grow for increased service on Cincinnati’s tri-weekly train to Indianapolis and Chicago.

The Railroad Reform, Enhancement, and Efficiency Act of 2015 (RREEA, S.1626) was introduced by Senators Cory Booker (D-NJ) and Roger Wicker (R-MS) to improve Amtrak service across the nation. The bill addresses several different issues for the railroad, including expansion, funding, and leadership. It also provides an increase in funding levels for the railroad through 2019.

In terms of leadership, the legislation would reorganize the board of directors for the railroad, with two representatives for the heavily traveled Northeast Corridor, two for long-distance routes (the Cardinal), and two for state-supported lines. There would also be one “floating” member.

The RREEA also includes several sections that fuel possible future expansion of the national rail network by establishing a committee to facilitate communication and cooperation between states and Amtrak on state-supported routes. In addition, it would require Amtrak to work with an independent agency to evaluate all routes and review possible elimination of routes, expansion or extension of current routes, or the establishment of new ones.

While calling this clause problematic, the National Association of Railroad Passengers acknowledges that this text includes a “comprehensive framework for analyzing a route that recognize the unique benefits rail service provides.”

Section 301 of the act explicitly requires that the Department of Transportation set up a program to assist the operating costs of launching or restoring passenger rail transportation. The section seems to be a nod towards the amount of routes cut from the system over Amtrak’s 40-plus years of operation.

Additional clauses provide mechanisms for cooperation between states and the federal government, when it comes to addressing the backlog of capital projects within the system, Amtrak’s money-losing food service, and the restoration of service along the Gulf Coast, a line that has been out of commission since Hurricane Katrina in 2005.

After the deadly derailment in Philadelphia in May, safety across the network is a major component of this legislation.

Both sponsoring senators touted the bipartisan nature of the bill and Senator Wicker’s office released a statement identifying the national passenger rail system as an “integral part of our overall transportation structure and our economy,” and thanking Senator Booker for his support and help in creating the bill.

The Senate Committee on Commerce, Science, & Transportation voted on July 13 to include the RREEA Act into the broader transportation bill, the Comprehensive Transportation and Consumer Protection Act of 2015 (S.1732).

In the Cincinnati metropolitan area, support continues to grow for the expansion of rail service in the area, especially to Chicago.

The City of Hamilton recently applied to Amtrak for a stop and has passed a resolution of support for increased service. Nearby in Oxford, home of Miami University, initial approvals have been set to create a station for Amtrak, and efforts are currently underway to identify the exact location for that facility.

The effort has also gained support from the University of Cincinnati Student Senate, when they passed a resolution 31-1 in support of increased rail service to Chicago, citing Chicago as “an important transportation hub for students’ co-op travels, as well as an economic destination for students, staff, and faculty alike.”

According to All Aboard Ohio’s Southwest regional director, Derek Bauman, the UC student government president is also coordinating with other local university student governments to obtain resolutions of support; and in addition to Hamilton, both Norwood, where Amtrak employs local workers, and Wyoming, where the Cardinal line runs through, have also passed resolutions of support for increased passenger rail service.

Hamilton County commissioners also unanimously approved a resolution pursuing a feasibility study.

Going forward, Bauman says that there will be a need for increased cooperation and support from local Metropolitan Planning Organizations along the route. In Columbus, the Mid-Ohio Regional Planning Commission (MORPC) has actively supported the implementation of a Columbus-Ft. Wayne-Chicago rail line; and in Northeast Ohio, a consortium of local MPOs have banded together and formed a sub-group to support increased rail service to the region.

From here, leadership at All Aboard Ohio says that they hope the OKI Regional Council of Governments will take a similar approach on behalf of the Cincinnati region.

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Business News

Uptown Neighborhoods Have Outsized Role in Regional Economy

Data released by the UC Economic Center shows that Cincinnati’s uptown neighborhoods – Avondale, Clifton, Corryville, Clifton Heights, Fairview, University Heights, and Mt. Auburn – contribute heavily to the regional economy.

Commissioned by the Uptown Consortium, a non-profit dedicated to development in the area, the collection of neighborhoods actually have an outsized influence on the regional economy.

According to the study, uptown houses more than 800 businesses that collectively employ around 52,000 employees and contribute more than $3 billion in annual wages in the Cincinnati Metropolitan Statistical Area. For the City of Cincinnati, the area represents 18.2% of all income tax collections taken in by City Hall.

These statistics are buoyed by the fact that the area also has one of the fastest growing job rates in the region. From 2012 to 2013, uptown neighborhoods saw employment rise by 12%, while growth throughout the rest of the city stood at 0.2%, and the rest of Hamilton County at 0.7%. All of this growth has led to a building boom that is changing uptown’s image.

Furthermore, the UC Economic Center found that while average city-wide property taxes collected per acre held averaged $8,000, while in the uptown area that figure stood at an average of $14,000 per acre.

This economic impact is driven mostly by what the report refers to as anchor institutions – education, healthcare, and social assistance agencies. These types of employers make up a large portion of the city economy, but particularly so uptown. Overall, these types of employees make up 16.3% of the city’s total workforce, and contribute around $98 million in city income taxes and $17 million in Hamilton County sales taxes annually.

All told, they account for 7.8% of the Cincinnati MSA’s gross regional product.

The report also demonstrates that, in addition to the direct economic impact of anchor institutions, they also draw considerable indirect impact from the money injected into the local economy.

While the institution and what are referred to as their auxiliary businesses are a boon for the regional economy at the moment, an over reliance on them could be dangerous.

As the Economic Center stated, “were the University of Cincinnati to close, much of the economic activity in Uptown would leave the region.”

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Business Development News

Report Finds Homelessness Is Decreasing in Hamilton County and Cincinnati

A newly released report shows that homelessness in Cincinnati and Hamilton County declined in 2014 to levels not seen since 2010.

The report comes from Strategies to End Homelessness, a local leader of 30 homeless service organizations. Using data from the Homeless Management Information System, the non-profit organization said that they saw positive results all around.

The number of people on the streets, which saw a large jump in 2013, returned to 2011 levels. Those staying in emergency shelters also dropped by 7% since 2012, which officials say can be attributed to the increase in people being served by permanent housing programs, which has increased 167% since 2010.

Local leaders also say that this drop is also partially a result of their member organizations’ homeless prevention efforts, which Kevin Finn, CEO of Strategies to End Homelessness, told UrbanCincy in March is one of the most critical factors in reducing homelessness.

Since 2011, these organizations have seen only 10.2% of the people served by their shelter diversion programs later become homeless. Finn says that preventing people from needing a shelter is not only effective, but it saves money as well.

“Homelessness prevention activities work and at a fraction of the cost of assisting after a person is already homeless,” said Finn. “Stopping people from ever needing to enter a homeless shelter just makes sense.”

The report found that men make up 59% of Cincinnati and Hamilton County’s homeless population, and that some 66% of those that are homeless are black.

One of the national trends is that women and children make up one of the fastest growing segments of the homeless population. In Cincinnati and Hamilton County, the report found that children are 29% of the area’s homeless – 6% of which are children without adult accompaniment. Furthermore, approximately 15% were found to be veterans.

In all, the number of people on the streets, in shelters, or in transitional programs in all of Hamilton County was 7,810 in 2014.

The Cincinnati area received a U.S. Department of Housing and Urban Development grant of $15.4 million earlier this year to combat homelessness. This money has not yet been distributed, but once it does, it will be set aside for non-prevention programs.

Local leaders also have reason to be optimistic due to the ongoing investment in new facilities, through Cincinnati’s Homeless to Homes program, to care for the area’s homeless population.

“In 2015, three improved shelters are opening, significantly improving the quality of services being offered to the homeless in our community,” Finn said. “We are also hoping to expand prevention efforts, so that fewer people will have to experience the trauma of homelessness.”