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Streetcar Supporters to Announce Expanded Coalition Urging for System’s Expansion Uptown

AcDowntown to Uptown Cincinnati Streetcar Routecording to officials at the Southwest Ohio Regional Transit Authority (SORTA), which governs Metro, more than 1,000 of the 1,500 Founders’ Club cards were sold within the first three days of going on sale.

The rate of sales is exceeding expectations, and many believe the remaining allotment will be sold within the next few days. In fact, $25 cards have already been taken off of Metro’s website, with a very limited number remaining at City Hall and Metro’s sales office.

The remaining $50 and $100 cards can still be purchased online, but it is not clear for how much longer due to their dwindling supply.

Streetcar supporters are pointing to this as clear evidence of the excitement surrounding the project, especially given that those buying the cards will not be able to use them until the system goes into operation in September 2016.

“Selling $72,000 worth of fare cards for a starter line that’s nearly two years from being operational shows the level of support and enthusiasm for the Cincinnati Streetcar to finally be up and running,” Derek Bauman, SW Ohio Director for All Aboard Ohio, told UrbanCincy. “This is the definition of pent up demand.”

Of course, there is also the financial benefit. Selling all 1,500 of the cards will net Metro $72,000 in fare revenue nearly two years before the Cincinnati Streetcar goes into operation.

The news comes as Believe in Cincinnati, the grassroots coalition that formed a year ago to save the project from cancellation, has organized a press conference to announce a broad new coalition of organizations and community leaders urging for the expansion of the streetcar system to Uptown.

“While we must celebrate the success we have had over the past year with construction of tracks in the OTR loop nearing completion and the downtown loop well underway, we must also be looking forward,” explained Ryan Messer, Founder of Believe in Cincinnati.

The path forward, evidently, goes uptown, and not to Northern Kentucky even as leaders there are calling for an expansion of the system south across the Ohio River.

“As of today, we still do not have an official plan in place for our uptown expansion that will link downtown and OTR to the University of Cincinnati and the uptown neighborhoods,” Messer wrote in an email. “We are ready to ignite these conversations and be prepared to implement these plans into action.”

The growing support for an uptown expansion comes at a time of large investment occurring along the initial starter line – investment that many streetcar supporters are crediting for the $18 million budget surplus at City Hall in 2014, and the rosy tax receipt estimates for 2015.

“Imagine what the impact will be when we connect Cincinnati’s core, with its 40,000 jobs and growing residential population, to the 30,000 jobs and 40,000 students in the uptown neighborhoods,” Bauman exclaimed. “This vision is as exciting as it will be transformative for the City of Cincinnati.”

The Believe in Cincinnati press conference will be held at the corner of Race and Elder Streets, near Findlay Market, and where track stub has been constructed for the accommodation of a future uptown extension. Organizers say the event will take place at 10am and will show off the new, expanded coalition of streetcar supporters urging for its expansion.

 

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News Transportation

System Designs Unveiled, Operating Agreement Reached for Cincinnati Streetcar

Officials with the City of Cincinnati and Southwest Ohio Regional Transit Authority (SORTA) made several major announcements last week pertaining to the rollout of the Cincinnati Streetcar system.

While the design of the rolling stock and the system’s color scheme were revealed more than a year ago, the official branding for the new mode of transit for the Cincinnati region had not. SORTA officials say that the branding will be utilized all throughout the system including its fare cards, ticketing machines, uniforms, wayfinding, brochures, website and social media, and, of course, the trains and their stations.

The branding scheme was put together by Kolar Design, whose offices are located in the Eighth Street Design District just two blocks from the nearest streetcar stop, after competing with more than 100 other firms interested in the opportunity to developing the design scheme.

Project officials say that the $25,000 cost for the branding effort was paid for through Federal funds.

Founders Club Card Sales
At the same time, SORTA and City officials announced the availability of 1,500 Founders Club Cards. The sale of the cards, officials said, would help raise some initial funds to be used to help offset initial operating expenses.

Project officials have informed UrbanCincy that approximately half of the 1,500 cards were sold within the first 24 hours of going on sale; and that more than 1,000 had been sold by Friday. A limited number of Founders Club Cards are still available for purchase at the Second Floor Cashier’s Office at City Hall, Metro’s sales office in the Mercantile Arcade across from Government Square, and online at Metro’s website.

There are three card options available. The first goes for $25 and allows for unlimited rides for the first 15 days of service, which is currently pegged for 2016. The second and third options go for $50 and $100, and allow for unlimited rides for the first 30 and 60 days, respectively.

The commemorative metal cards and matching metal cases were seen by some as one of the first ways for Cincinnati Streetcar supporters to show their support. Having experienced strong sales thus far, it seems as Metro’s strategy may prove to be a success.

“This is one of the first tangible opportunities streetcar enthusiasts can show their support,” said City Councilwoman Amy Murray (R), Transportation Committee Chair. “This is a great idea that Metro has developed to generate excitement. I think many will appreciate the privilege of being a Founding Club Member with this commemorative card.”

Operating Agreement Finalized
Perhaps lost amid the other news was the signing of an official operating agreement. Under the current structure, the City of Cincinnati is building the system, and is its owner, but will contract out its operations to SORTA.

The Cincinnati Streetcar Operating & Maintenance Agreement first came out of Murray’s Transportation Committee and was approved 7-2 by City Council in early November. It calls for expanded on-street parking enforcement in Downtown and Over-the-Rhine until 9pm, an increase in parking rates in those two neighborhoods, and a set streetcar fare of $1 for two hours.

The agreement also utilizes an innovative technique that would lower property tax abatements 7.5%. This is an important component of the agreement as it addresses a longstanding call from opponents for those benefiting from real estate valuation increases to cover more of the costs of modern streetcar system. It also eliminates the need to utilize the Haile Foundation’s $9 million pledge, and would instead only tap into those funds in a worst-case scenario.

Project officials estimate that the system will cost approximately $3.8 to $4.2 million annually to operate, and that those costs would be covered by $1.5 million in additional on-street parking revenue in Downtown and Over-the-Rhine, $1.3 million from fares and advertising, and an estimated $2 million annually from the tax abatement reductions.

“This is the most innovative plan I’ve seen in the United States,” stated John Schneider, noted transit advocate and real estate developer, at the time of City Council’s approval in November.

The SORTA Board approved the agreement last week and touted the benefits of having operations of the Cincinnati Streetcar be handled through Metro, which also runs the region’s largest bus service.

In addition to the critical financing elements of the agreement, it also delineates various responsibilities once service goes into effect. To that end, the City of Cincinnati will be in charge of maintaining traffic signals, clearing blockages from the streetcar path, cooperation on utility interfaces, safety and security; while SORTA will be responsible for operating the system, maintaining vehicles and facilities, fare collection provision and maintenance, marketing and advertising sales.

Construction on the $148 million first phase of the Cincinnati Streetcar continues to progress, with most track work in Over-the-Rhine now complete and track work now progressing through the Central Business District. Current time frames call for operations to begin in September 2016.

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News Transportation

How is Tucson’s New Streetcar Line Performing Compared to Expectations?

Construction on the first phase of the Cincinnati Streetcar system is well underway. While the project has been well documented in the media over the past decade, it is not often viewed from a perspective of where it stands in the national conversation.

Tucson recently opened their first modern streetcar line and their program administrator, Shellie Ginn, sat down with Jeremy Hobson from Here & Now to discuss their project. The two discuss both the pros and cons of such systems, while also highlighting the specific results being realized in Tuscon.

“We actually have higher ridership than we’d estimated. We have a lot more people riding that we hadn’t anticipated,” Ginn explained in terms of the perceived notion that only tourists would ride their streetcar. “We’ve had a really good response on taking advantage of the streetcar as well. It’s about a four mile line and it connects our University of Arizona Medical Center to some shopping districts that also connect to a downtown, and over to a western redevelopment area.”

Similarly, Cincinnati’s first modern streetcar line is 3.6 miles in length and connects a downtown, shopping districts, riverfront entertainment district and a neighborhood ripe for redevelopment. Should future phases extend the system to Uptown, it would connect the initial line with the University of Cincinnati, the region’s medical district and several other large employers and attractions. An extension across the river into Northern Kentucky would add additional shopping and entertainment districts as destinations.

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News Transportation

Ruling From Judge Stich Potentially Very Damaging for Local Governments in Ohio

Cincinnati Streetcar Phase 1 RouteThe Business Courier reported yesterday that Hamilton County Common Pleas Judge Carl Stich (R) ruled that the City of Cincinnati must pay for the relocation of Duke Energy’s utilities along the first phase of the Cincinnati Streetcar system.

As learned from a leaked internal memo last December, this decision was expected by city officials who will now be on the hook for an additional $15 million in costs – expenses that will be covered by the project’s existing contingency fund.

In Stich’s ruling, he cited an Ohio Supreme Court case from 1955, Speeth v. Carney, that stated government-owned transit systems are proprietary functions, not government ones. This is important because that is what lays the foundation for Stich’s ruling, but also sets a potentially far-reaching precedence for what costs local governments are expected to bear when making infrastructure investments.

As a result, former city solicitor John Curp says that Cincinnati should appeal the ruling.

“The troubling element of the ruling for local governments is that the court looked under the hood of the streetcar and based its decision on one debated effect of the project rather than principal operation of the project, which is transportation,” Curp told the Business Courier – an UrbanCincy content partner. “Nearly every government project is justified as an economic development project. If applied more broadly, this decision could add significant costs to local government infrastructure projects.”

Cincinnati City Manager Harry Black seems to agree, and says that the city will in fact appeal the ruling.

Furthermore, Judge Stich did address the fact that the rulings used to make his decision were quite old and rendered during a time when private companies owned and operated public transit systems. This is a notable difference from today where that is largely non-existent, and would seemingly change the entire discussion in a case of this nature.

“The court noted that the case it found controlling was an anachronism to a bygone era where private companies ran public transportation,” Curp said. “The current reality is that government heavily subsidizes almost all forms of public transportation. No one mistakes public transportation as a proprietary, money-making venture. An appeal would help ensure that all local governments are working on equal footing and none have a competitive advantage on costs for new infrastructure projects”

In addition to Duke Energy, there are a half-dozen other utility companies that are within the project area, but all of those companies had come to terms with the City prior to the commencement of construction. The question now is what financial obligations, if any, those companies will have on future infrastructure projects pursued by City Hall.

Furthermore, the decision shines an interesting light on how infrastructure projects and their associated costs are rarely neatly defined. These utility costs, for example, are being covered through the budget for the streetcar, but have nothing to do with rail transit. In fact, a large sum of the budget for the Cincinnati Streetcar is actually allocated to things that have nothing to do (e.g. buried utilities, utility upgrades and relocations, and road resurfacing) with the direct construction or operation of the transit system.

The project, however, brings up a very convenient and cost-effective time in which to make such improvements. As has been discovered thus far, many of these improvements have been sorely needed. In Over-the-Rhine, for example, broken water mains, wooden pipes and other outdated infrastructure has been discovered and either repaired or upgraded as a result of the project.

This is a coup for any utility company that can have the cost of upgrading their systems shouldered by the taxpayers, instead of their ratepayers, as such is the case in this Duke Energy example.

Since much of the costs for the project are related to non-streetcar items, it seems to lean toward Curp’s concern of the ruling being applied more broadly.

“The case is also important for other cities in Ohio,” said City Manager Black. “The decision may ultimately dictate who pays for local infrastructure improvements that require the movement of utilities on public property: the taxpayers or the utility.”

With an appeal forthcoming, it appears that lawyers will continue to reap the benefits of this political battle. Meanwhile, construction progresses on the Cincinnati Streetcar project on-time and on-budget.

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News Transportation

PHOTOS: Streetcar Maintenance Facility, OTR Track Work Nearing Completion

Construction of the Cincinnati Streetcar system has been moving quickly over the past several months. In the Central Business District, track work on Walnut Street has been completed between Central Parkway and Seventh Street, and two stations are under construction along this stretch.

Downtown drivers will soon get a break from track construction until next year, when crews will return to the CBD to finish the Walnut Street track after the holiday season.

In the mean time, crews have moved to the Northern Liberties to finish up the Over-the-Rhine portion of the system. The special track work in this area includes turnouts on Henry and Race streets, connecting to the Maintenance & Operations Facility, and turnouts to Findlay and Elder Streets, which will allow the Uptown Connector to be built in the future without disrupting service.

Crews recently finished resurfacing portions of Elm and Race streets along the route, which means that underground utility work has wrapped up. Many of the streetcar stops in Over-the-Rhine are also now complete and many of the new traffic signals have been activated.

While much has been accomplished, a significant amount of construction remains, including track work along Main and Second streets in the CBD. But anyone taking a walk down Race Street, in Over-the-Rhine, today should get a good impression of what the finished track and stations will look like.

EDITORIAL NOTE: All 14 photos were taken by Travis Estell for UrbanCincy between October 21 and November 1, 2014.