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Business Development News Politics

Cincinnati Receives Federal Approval for Innovative Green Infrastructure CSO Fix

Last week the U.S. Environmental Protection Agency (EPA) approved the solution proposed by the Metropolitan Sewer District of Greater Cincinnati (MSD) for fixing its combined sewer overflows (CSOs) into the Mill Creek.

Cincinnati is one of many cities struggling to fix their CSOs, which are caused by a combination of higher water runoff and sewer systems that were designed to accommodate both stormwater runoff and sewage. What it means in real terms is that when there are heavy rain events, the stormwater fills up the sewers and then mixes with the sewage.

According to the EPA, raw sewage contains pathogens that threaten public health, leading to beach closures and public advisories against fishing and swimming, and is a problem that particularly affects older urban area.

Lick Run Project
MSD’s plan to reduce 1.5 billion gallons of CSOs from the Mill Creek will include the transformative Lick Run project in South Fairmount.

As a result, under a 2010 consent decree, the MSD was required to either construct a deep-tunnel system under Mill Creek, or conduct further analysis and propose an alternative plan. What is unique about Cincinnati’s approved plan is that it deviates from the standard ‘gray’ tunnel solution, and instead proposes using green infrastructure fixes to reduce stormwater runoff.

“We are very excited to move forward with our innovative wet weather solution that not only provides highly cost-effective compliance with our Consent Decree but simultaneously sets the groundwork to enhance our communities,” James A. “Tony” Parrott, MSD’s Executive Director, said in a prepared release.

In addition to the environmental benefits of Cincinnati’s alternative plan, it is also expected to save taxpayers approximately $200 million upfront and remove 1.78 billion gallons of CSOs annually from the Mill Creek.

The savings come from not building a new deep-tunnel system to accommodate the excess stormwater runoff, and instead aiming to reduce the amount of stormwater flowing into the sewer systems during heavy rains.

The green infrastructure solution being pursued by Cincinnati is already being viewed as a national model for other cities looking to clean up their waterways.

Lick Run View (Northwest) Lick Run View (Southwest)
The $192M Lick Run project would create a linear park through South Fairmount along a newly ‘daylighted’ stream. Images provided.

The hallmark feature of the plan is the $192 million Lick Run Project, which will ‘daylight’ the former creek through the heart of South Fairmount and creating a linear park that officials say will convey stormwater and natural drainage to the Mill Creek. This project alone is estimated to reduce overflows into the Mill Creek, from the largest CSO in the system, by 624 million gallons annually.

“This plan is good news for the residents of Cincinnati and for communities along the Ohio River,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Not only will this innovative plan ensure that significant volumes of polluted stormwater and raw sewage are kept out of local waterways, but it will also cost less than more traditional approaches, saving money for ratepayers and the city.”

In addition to the Lick Run Project, MSD’s phase one fixes will also include upgrades to the West Fork, Kings Run, and Bloody Run watersheds that will result in an additional 422 million gallons CSO reduction.

The combined phase one work is planned to take place over the next five years and is estimated to create nearly 1,000 full-time equivalent construction jobs.

MSD officials say that plans for phase two work will be submitted in 2017, and will aim to address CSOs in the Lower Mill Creek watershed. While the plans are not yet finalized, both MSD officials and regulators believe the final remedy will also use an integrated watershed plan approach.

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News Politics Transportation

Support for Public Transit Grows, While Funding Sources Remain Limited

A new survey conducted by the Mineta Transportation Institute (MTI) reveals that nearly 74% of Americans support the use of their tax dollars for “creating, expanding, and improving public transportation” in their community.

The results were championed by groups like the American Public Transportation Association (APTA) at their annual rail conference being held in Philadelphia.

“We are experiencing this surge in support because citizens can see, touch, and feel the economic impact of investing in public transportation,” said APTA Chair Flora Castillo. “This survey emphasizes that public transit plays a great role in society because it directly touches people’s lives.”

Metro Buses
Ridership and public support for transit has continued to grow in Cincinnati, despite consistent attacks from the Kasich administration. Photograph by Randy Simes for UrbanCincy.

The survey comes as many transit agencies around the United States are experiencing gains in ridership, including an additional 200,000 riders on Metro bus service in 2012. The news also comes on the heels of the approval of Ohio’s budget which includes a provision that bans students in grades K-5 from using transit buses for their transportation to or from school.

“A provision like this would be devastating to these students’ ability to get to school,” Roseanne Canfora, spokeswoman for the Cleveland Metropolitan School District, told the Cleveland Plain Dealer in May.

Cincinnati Public Schools (CPS) also utilizes Metro bus service to get students to and from school. While Metro’s contract with CPS does not include students in grades K-5, the state-level changes reflect a growing anti-transit sentiment from the statehouse in recent years.

While ridership on transit and support for taxes going towards transit increases throughout Ohio and the United States, the State of Ohio continues to invest in almost exclusively roads. In the recommended 2014-2015 Transportation Budget, Governor John Kasich (R) and ODOT Director Jerry Wray call for a mere 1.9% of the $3.1 billion budget to go towards public transportation.

The newly released study championed by APTA focuses on national policy, however, and shows that the non-profit advocacy group aims to arm themselves with the results.

“We look forward to sharing these great results with Congress,” said APTA President and CEO Michael Melaniphy. “In most political circles, receiving nearly 74 percent in favor of increased investment would be considered a landslide.”

The MTI-conducted survey also found that 66% of Americans believe that Congress should increase its spending for public transportation.

Locally in Cincinnati, meanwhile, funding levels for Metro continue to stagnate as the City of Cincinnati has remained as the sole regional financial contributor to the Southwest Ohio Regional Transit Authority (SORTA) since its creation in 1973.

SORTA officials have attempted to grow support from regional partners by restructuring its board, as recently as 2009, to include more regional representation from Butler, Warren and Clermont Counties. The efforts, however, have not yet changed the funding equation.

“Any change to the current funding system is a matter for consideration by Cincinnati and Hamilton County elected officials, and voters in this region,” explained SORTA Board chair, Suzanne Burke. “We are unaware of any changes being considered, and additional public funding from Clermont, Warren or Butler counties is for their citizens and elected officials to consider.”

With no additional funding partners or public taxes envisioned for the near future, SORTA officials are working to continue to grow and restructure its service that is reflective of the changes in the city and region over the past 40 years – something that has not, and will not be easy to do.

“Metro is pleased with the recent news released by APTA,” Burke concluded. “We believe this region’s changes since 1973, when our system was formed, require us to consider possible improvements in public transportation. Public transit is a key job connector and a huge factor in the improved quality of life in our region.”

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Development News Politics

Smart Growth May Offer Cincinnati a Way Out of Its Structurally Imbalanced Budget

Land Use Budget ImpactsThe City of Cincinnati passed yet another structurally imbalanced budget late last week. At the meeting Vice Mayor Roxanne Qualls (C) and other council members admitted that the approved budget once again relied on a one-time fix to get the city through another budget cycle without significant layoffs and major funding cuts.

Despite having its hands tied in coming up with creative ways to find revenues, Cincinnati is not alone in dealing with this dilemma. Hundreds of cities across the nation are struggling with budget deficits with some much larger than ours.

Smart Growth America recently completed a national report, titled Building Better Budgets, with findings that could help many municipalities find long-term solutions to their budget crisis. The report makes three main arguments that smart growth development, described as compact, walkable and mixed-use overall save municipalities on upfront infrastructure costs, service costs and serve to increase the city’s tax base better than suburban style developments.

After reviewing a diverse collection of cities across America, such as Raleigh, NC,  Nashville, TN and Champagne, IL, the study found that smart growth development costs an average of 38% less for upfront infrastructure, saves municipalities an average of 10% on ongoing delivery of services, and generates approximately 10 times more tax revenue per acre when compared to conventional suburban development.

“These figures are conservative, and many communities could save even more,” authors of the report stated. “Smart growth development’s potential for lower costs and higher revenues means that many municipalities can operate smart growth development at a surplus rather than a deficit.”

How local projects stack up
Several projects on the horizon are poised to add to the tax base in Cincinnati’s urban core. Phase two of The Banks, dunhumbyUSA Centre, the 580 Building apartment conversion, hotels at the Bartlett Building and Enquirer Building, and proposed apartment buildings above Fountain Place and the parking garage at Seventh and Sycamore all offer the upfront infrastructure cost savings and long-term revenue advantages discussed in Smart Growth America’s report.

The redevelopment of the Pogue’s Garage into a 30-story apartment tower with a grocery store, and an 11-store Holiday Inn at Broadway and Eighth Street are two other projects that offer similar benefits, but are currently on hold due to the ongoing legal dispute surrounding the City of Cincinnati’s Parking Modernization & Lease Plan. Additionally, a slew of projects in Over-the-Rhine, Walnut Hills and Northside also appear poised to help stabilize the city’s finances thanks to their smart growth advantages.

Property Tax Yield

Not all is well, however, as many recent real estate investments throughout the city have taken the conventional suburban development approach. The Incline District in East Price Hill, Villages of Day Break in Bond Hill, Oakley Station in Oakley, MetroWest in Lower Price Hill, and developments along Red Bank Road in Madisonville all seem to be missing the bigger picture about the financial advantages of smart growth.

In addition to the actual footprint of the development, the report discusses the importance of a project’s site location.

“The per-acre measurement of tax revenue is extremely important because land is a precious commodity for every jurisdiction,” the report concluded. “It is true that in some cases the total dollar amount of tax revenue in conventional suburban settings can be very large, but those conventional suburban developments consume large amounts of land. Many cities in the United States have a constrained land supply and must husband their land resources carefully in order to protect their solvency.”

While many of the real estate investments throughout Cincinnati are being done in a smart manner, others seem to be squandering valuable urban land with suburban-style developments. The City of Cincinnati, and other cities around the region, might be able to make a long and sustained positive impact on their budgets by refusing to go forward with projects that offer an easy, short-term score, and instead demanding more sustainable development practices in their community.

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Business News Politics

Cincinnati Expands, Streamlines Mobile Food Vending Zone Program

Last month Cincinnati City Council approved changes to the city’s Mobile Food Vending Program, which oversees food truck operators choosing to take advantage of mobile food vending zones throughout the city.

According to city officials, two new mobile food vending zones will be added in Over-the-Rhine. The changes were approved 8-1 by city council, with Councilmember Christopher Smitherman (I) casting the lone opposition vote.

The first is at Washington Park and will accommodate up to three food trucks at any given time. This location, officials say, will be open to mobile food vendors from 6am to 3pm, and will be open during evening hours based on agreements between the Cincinnati Center City Development Corporation (3CDC) and those vendors who are in the program.

Cincinnati Food Truck at Court Street

The second Over-the-Rhine location will be at Twelfth and Clay Streets, and is the result of much negotiation with nearby restaurants that had been wary of a mobile food vending zone near their establishments. This location will accommodate up to two food trucks at a time, and unlike the Washington Park zone, will allow vendors to operate between 6pm and 3:30am.

The new Over-the-Rhine mobile food vending zones add to the other six locations in place throughout the city. According to Councilmember Laure Quinlivan (D), who first proposed legislation to create the mobile food vending program in 2010, those who would like to see mobile food vending zones established elsewhere throughout the city can contact her office at laure.quinlivan@cincinnati-oh.gov.

City officials say that all of the following official mobile food vending zones are open seven days a week, and are available to operators with mobile food vending licenses on a first come, first serve basis.

  • 12th/Clay Streets (6pm to 3:30am)
  • Court Street Market (6am -3pm)
  • Fountain Square/North Vine Street (6pm-3:30am)
  • Fountain Square/North Fifth Street (6am to 3:30am)
  • Fountain Square/South Fifth Street (6am to 3:30am)
  • Purple People Bridge (6am to 3:30am)
  • University Hospital (6am to 3:30am)
  • Washington Park zone (6am to 3pm)

“If you have additional mobile food vending zones you’d like to see created, please contact me to learn how to get it done,” Quinlivan stated. “The bottom line is that you need to get support for the new zone from nearby property owners.”

Cincinnati Food Truck Zones

Food truck operators interested in getting a mobile food vending license will not see their annual fees change from the current $600 for a six-month license or $1,000 for a full year. But, according to city officials, they will now apply through the Cincinnati Health Department in an effort to streamline the application and licensing process since the health department also must issue a health license for the food trucks.

Other approved changes include the elimination of the non-refundable $25 application fee, and structural changes for the mobile food vendor zone at the foot of the Purple People Bridge to allow for more consistent space availability for food truck operators.

Due to the court-issued restraining order on the City of Cincinnati, the changes could not take effect immediately, and will finally go into effect this Friday, May 17 following the required 30-day waiting period.

To celebrate, the Cincinnati Food Truck Association, Quinlivan and community leaders will gather at Washington Park this Friday at 11:30am to celebrate the new food truck zones.

“I’m excited our program has created jobs and livened up city streets,” Quinlivan stated. “I’m told we now have 28 mobile food trucks in Cincinnati and we hope all of them participate in our program.”

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Business News Politics

Cincinnati’s Recommended Budget Calls for 201 Layoffs, Program Eliminations

Cincinnati City Manager Milton Dohoney released his recommended budget that makes a large number of cuts to fill the $35 million budget gap left behind following the State of Ohio’s reduction of $26 million in funding to the City of Cincinnati.

The original budget proposal from Dohoney included $25.8 million from an upfront payment included in the parking lease and modernization plan, which would have also included $3 million in annual payments thereafter. This proposal was approved 5-4 by City Council, but was put on hold by a local court until opponents were able to file petitions and get the proposal put on this November’s ballot for public vote.

“Though a legal victory is being vigorously pursued, the ultimate resolution is not assured in time to affect what must be in place by June 1 to take effect July 1, 2013,” Dohoney explained. “Should a final legal victory be realized after July 1, the Administration would presume to move expeditiously to reverse some of the impacts of the cuts contained within the recommended budget.”

Cincinnati Mounted Patrol
Cincinnati’s mounted patrol would be cut entirely if City Council passes the recommended budget. Photograph by Randy Simes for UrbanCincy.

The end result of these cuts includes the elimination of 66 police officers, 71 fire fighters, 64 city employees, and the elimination of 60 vacant positions. The recommended budget will also eliminate funding for the following items:

  • Greater Cincinnati Energy Alliance ($150,000)
  • Urban Agricultural Program ($65,000)
  • Heritage Events Subsidy – Opening Day Parade, St. Patrick’s Day Parade, Black Family Reunion, Juneteenth ($36,000)
  • Camp Washington, Fairview, Filson, Spring Grove Village, and Ziegler Pools ($167,650)
  • Bush Recreation Center in Walnut Hills ($127,710)
  • Energy Management Program ($100,010)
  • Mounted Patrol ($95,000)
  • Community Prosecution Program ($83,857)
  • Delinquent Accounts/Receivables Program ($75,460)
  • Claims Program ($55,680)
  • Tire Collection Program ($30,880)

In addition to the elimination of these programs, no funding is budgeted for either 2014 or 2015 as a result of limited General Fund resources.

Furloughs for City Management staff will also take place, and the City of Cincinnati would also use a larger amount of projected casino revenues to balance this budget, even though Dohoney has recommended against that in the past due to the unpredictability of these funds.

“While balancing a budget deficit with mostly cuts is not preferred, the timing of the new fiscal year coupled with the timing of the litigation over the parking deal makes it the only real option with a number this large,” Dohoney stated in a prepared release. “Our goal is going to be to recall staff as soon as possible and provide the best customer service we can deliver for the citizens in the meantime.”

A number of other measures are taken in the recommended budget to help close the budget gap, but the large amount of savings is realized through personnel layoffs. Dohoney has also recommended that the property tax millage increase from 5.7 mills to its maximum allowed 6.1 mills to raise an additional $1.3 million annually.

To help engage the public in this budget process, Cincinnati Vice Mayor Roxanne Qualls (C) has scheduled three public hearings. The first will take place at the Duke Energy Convention Center on Thursday, May 16 at 6:30pm, the second will occur on Monday, May 20 at 6:30pm at the College Hill Recreation Center, and the final meeting will take place at the Madisonville Recreation Center on Wednesday, May 22 at 6:30pm.

“My priority for the FY 2014 city operating budget is to make sure that all Cincinnati’s neighborhoods are safe and that we continue to attack blight that breeds crime,” Qualls stated. “As chair of the Budget and Finance Committee I will work to further reduce the number of layoffs for police, fire and health department personnel, to ensure that we keep all our neighborhoods safe and clean.”