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Business Development News Politics Transportation

Project Executive Estimates Cost to Cancel Streetcar Would Far Exceed $100M

The project executive for the Cincinnati Streetcar project, John Deatrick, gave a presentation to Cincinnati City Council’s Budget & Finance Committee today to outline the anticipated costs, time frame risks associated with cancelling or temporarily stopping work on the $133 million project.

Deatrick emphasized that at this point approximately $32 million has or will be spent prior to December 1. In addition to that, he explained exactly why the city would forfeit approximately $45 million in Federal funds, and be subject to local payment of any funds committed that would have otherwise been paid by those Federal funds. In addition to that, Deatrick and the project team estimate that it would cost $31-48 million to close-out the project.

Streetcar Cancellation and Close-Out Costs


What it means is that the professionals involved with overseeing the project believe the costs to cancel will be between $108 million and $125 million, not including any of the highly anticipated litigation costs.

The presentation also included a breakdown of more intangible numbers like the damage to the reputation the city has with the Federal government, and the future inability to receive Federal funding for any transportation projects as a result.

Cincinnati’s Budget Director, Lea Erickson, then explained how those costs would be paid and that the cancellation of the project would also result in the loss of any realized property and economic gains anticipated due to the streetcar, as outlined by an economic feasibility report done by HDR Economics. That total of lost tax revenue for the City of Cincinnati and Cincinnati Public Schools, she estimates, would $237 million in today’s dollars – or $594 million over the course of the next 35 years.

The 39-page presentation is packed with detailed breakouts and explanations for these figures. It also explains the relationship of the various contractors involved in the project.

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Business Development News Politics Transportation

Nearly $4B in Work Progresses in Decade-Long Reconstruction of I-75 Through Hamilton County

In the early 2000s the Ohio Department of Transportation (ODOT) developed plans to widen and modernize Interstate 75 between the Ohio River and Interstate 275.

The $531.7 million Millcreek Expressway Project was slow to commence because of state and federal funding problems related to declining gasoline tax revenue. In 2009 a $7 million overpass connecting Monmouth Street and Central Parkway (Phase 2) received federal stimulus funding and, without ceremony, kicked off what will be a decade of continuous construction.

ODOT began reconstruction of I-75 in and around the Mitchell Avenue Interchange (Phase 1) in 2012. As of August 2013, all new retaining walls have been completed, the replacement Mitchell Avenue and Clifton Avenue overpasses are each about halfway completed, and final pavement has been poured on two access ramps.

The $53 million Phase 1 makes provisions for widening I-75 to four lanes in each direction, but the expressway will not actually be widened until Phase 5 rebuilds the I-74/75 interchange near Cincinnati State Technical & Community College.

Reconstruction of the Hopple Street Interchange (Phase 4), meanwhile, began earlier this year and as of August 2013 has taken on the chaotic character typical of urban expressway widenings. This project will radically remake the area, with Hopple Street passing for the first time above Central Parkway to meet W. Martin Luther King Drive at grade.

While most of the buildings near this interchange have been acquired and demolished, the nearby White Castle restaurant will remain unaffected as a “jug handle” is built around its south and eastern property lines.

Although the overall widening and modernization work was thought to have been delayed, the program received a boost thanks to the Ohio Turnpike.

On July 22, 2013 Governor John Kasich (R) announced that $350 million of work on remaining phases of the Millcreek Expressway reconstruction project will be funded by the sale of bonds to be repaid by future excess Ohio Turnpike tolls.

Additionally, Kasich pledged $100 million in Turnpike funds to build a new interchange connecting I-71 and E. Martin Luther King Drive.

When combined with the $463.5 million Thru The Valley project and $2.7 billion Brent Spence Bridge project, the reconstruction efforts along I-75 through Hamilton County totals some $3.7 billion in work and are expected to continue for the next decade.

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Development News Politics Transportation

Financing Falling Into Place for $108M MLK Interchange Project

Planning and financing is progressing for construction of a new interchange between E. Martin Luther King Drive and Interstate 71. The $108 million MLK Interchange will fill the most obvious gap in the area’s expressway system – zero access to Uptown from northbound I-71 and circuitous access from southbound I-71 via the William Howard Taft ramp.

The Taft and McMillan ramps will remain under the state’s current plans, but the new MLK Interchange will become the preferred point of access for the University of Cincinnati, Children’s Hospital, the Cincinnati Zoo, University of Cincinnati Medical Center and surrounding residential neighborhoods.

MLK Interchange Site
Martin Luther King Drive as it passes over I-71 presently. Photograph by Jake Mecklenborg for UrbanCincy.

In addition to the MLK Interchange, the Ohio Department of Transportation (ODOT) broke ground on the reconstruction of I-75’s Hopple Street Interchange. This project will reconfigure W. Martin Luther King Drive west of McMicken Street to meet Hopple Street on a new bridge above Central Parkway.

Two years ago UrbanCincy reported on these two transformative projects, planned for each end of Martin Luther King Drive, which will dramatically change the way motorists access the region’s second largest employment center.

The MLK Interchange has been the subject of considerable attention during the first half of 2013 due to the controversy generated by COAST when it worked to block Cincinnati’s Parking Modernization & Lease deal. The deal, which is now proceeding after a lengthy legal battle, was originally envisioned as the source for the $20 million local contribution to the interchange project.

In addition to blocking the parking deal temporarily, the injunction prevented the City of Cincinnati from passing emergency ordinances. This detail jeopardized the streetcar project, as it was timed perfectly to coincide with council’s need to allocate additional funds after construction bids returned much higher than expected.

MLK Interchange Preferred Alternative
Financing is beginning to fall into place to fund the preferred alternative for the $108M MLK Interchange. Provided.

In April, an effort led by COAST and City Council member Chris Smitherman (I) gathered the necessary signatures to place the parking lease ordinance on the November 2013 ballot. However, on June 12, the parking lease injunction was overturned by Judge Penelope R. Cunningham, wife of anti-streetcar and anti-parking lease 700 WLW talk host Bill Cunningham.

With the ballot issue avoided, streetcar and MLK Interchange planning resumed.

On July 9, the Ohio Controlling Board approved $4.2 million for property acquisition near the planned MLK Interchange in anticipation of a July 2014 start date for the project. Then, on July 22, Ohio Governor John Kasich (R) announced that a portion of his $3 billion lease of the Ohio Turnpike will fund the state’s contribution for the project.

The turnpike deal, which is similar in its strategy to Cincinnati’s parking lease, has hypocritically been spared the legal obstructionism of COAST or the criticism of talk radio hosts.

The City of Cincinnati is hosting a neighborhood meeting on July 24 at the Hampton Inn & Suites in Corryville at 3024 Vine Street between 5pm and 7pm. According the city, the meeting is “intended to guide the Uptown neighborhoods, institutions and city in visioning the future character and nature for the corridor.”

City officials say that formal presentations will be given on the half-hour, and that those who are unable to attend can still submit their comments or questions until Friday, August 2, 2013. Those wishing to submit their comments outside of the meeting can either email info@uptownconsortium.org or send in written correspondence to the Uptown Consortium at 629 Oak Street, Suite 306, Cincinnati, OH 45206.

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Business Development News Transportation

Design Options for $2.7B Brent Spence Bridge Project Narrowed

The Federal Highway Administration (FHWA) issued a “Finding of No Significant Impact” (FONSI) for the $2.7 billion Brent Spence Bridge Replacement & Rehabilitation project last August.

The finding means that the project can move forward to its next phase of work with the current proposed alignment, which is not expected to change much from this point. The alignment included in the FONSI includes a number of interesting features different from what exists on the site today.

Consolidated Footprint:
One of the most notable pieces of the plan is a consolidated footprint. While it still includes a web of ramps at the southwestern edge of the central business district, the project does eliminate a flyover ramp currently not in use, and consolidates the existing footprint of ramps leading to the new and existing bridge, and Fort Washington Way.

The approved alignment also preserves the existing dunnhumbyUSA building that was thought to be in the way for the rebuilt interstate network.

A final, and perhaps the most significant, result of the consolidated footprint is additional land along Central Avenue in between Fourth Street and Sixth Street.

This land could be used for one of a number of things, but there is currently the Cincinnati Fire Fighters Memorial at the corner of Fifth Street and Central Avenue, which could be moved south one block across the street from the Company 14 and Fire Headquarters building, and allow for the long-desired expansion of the Duke Energy Convention Center.

Leadership at the Cincinnati USA Convention & Visitors Bureau declined to comment on any plans to expand the convention center until plans are finalized for the Brent Spence Bridge project, and the agency has time to review them.

The alternatives moving forward also call for a portion of historic Longworth Hall to be demolished to make room for the new bridge. Additionally, the existing Duke Energy Substation will need to be relocated, which project officials say has already been discussed with the energy provider.

Brent Spence Bridge Design Alternative 1 Brent Spence Bridge Design Alternative 2
Design Alternative 1 [LEFT] would appear similar to the ‘Big Mac’ Bridge upriver, while Design Alternative 2 [RIGHT] would introduce a two-tower, cable-stayed bridge to the Cincinnati waterfront. Renderings provided.

Architectural Design:
While separate from the issued FONSI, project officials have also narrowed down the design options for the bridge itself. Perhaps the most eye-catching of the options, the single-tower cable-stayed bridge ($646 million), has been eliminated due to its higher safety and engineering risks.

What is left is the arch bridge design ($571 million), similar to the Daniel Carter Beard ‘Big Mac’ Bridge, and the double-tower cable-stayed bridge ($669 million). Both, officials say, would have fewer risks involved and would allow the project to move forward on a more predictable schedule.

Next Stages:
Project officials are currently finalizing action plans based on the Began Value for Money (VfM) study, and hope to begin the necessary right-of-way acquisition process this year.

Should the States of Ohio and Kentucky choose to pursue a public-private partnership (P3) financing model; officials say that they will issue an RFP for that sometime next year. Construction could begin as early as 2015 if the current schedule continues to be met.

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Business Development News Transportation

VIDEO: Cincinnati Officials Celebrate Groundbreaking for $6.9M Uptown Transit District

Southwest Ohio Regional Transit Authority (SORTA) officials were joined by community members and political leaders from the City of Cincinnati this morning in Clifton Heights to celebrate the groundbreaking for the $6.9 million Uptown Transit District.

The Uptown Transit District, once complete by the end of 2013, will create a secondary hub for Metro bus service, and will allow the bus agency to continue to move away from its long-used ‘Spoke and Hub’ system that fed all routes to the Government Square Transit Center in the Central Business District.

Metro officials say that new routes, including the agency’s new Metro*Plus service, will utilize the new uptown transit hubs. Additionally, direct service from Metro’s Glenway Crossing Transit Center will be able to take advantage of the new facilities.

Transit officials believe the Uptown Transit District will be a critical improvement for the regional bus network, allowing more direct and better access to the region’s second largest employment center.

“It is a wonderful concept and I’m so pleased that Metro is undertaking this because we really need it,” explained Cincinnati City Councilmember Wendell Young (D). “Uptown is a very important economic engine in this city, with 50,000-plus jobs up here.”

The Uptown Transit District will include four distinct bus hubs throughout the area including the Clifton Heights Business District at Calhoun Street and Corbett Drive, Vine Street between Calhoun and McMillan Streets, Jefferson Street at University Avenue, and the Medical Center Area.

The stations will include enhanced shelters and will also include real-time arrival information.

“We’ll have informational kiosks that will provide real-time information…so therefore you know exactly when you can embark upon your destination,” Terry Garcia Crews, CEO of Metro, told the crowd at the ceremony. “We want to make sure that we’re designing a system that meets the needs of our consumers.”

Construction was originally anticipated to begin in April 2013. Approximately 72% of the funding was provided by the Federal Government with the remainder coming from the City of Cincinnati, Metro and the OKI Regional Council of Governments.