Tag: economic

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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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Up To Speed

Will Cincinnati upgrade parking assets following lease default?

Will Cincinnati upgrade parking assets following lease default?.

While it appears that Mayor-elect John Cranley (D) and the new city council are poised to cancel and default on the city’s Parking Lease & Modernization deal signed five months ago, other cities are moving forward with modernizing their parking assets and bringing their parking technology into the 21st century. More from Peninsula Transportation Alternatives:

At a study session, the San Mateo City council leaned favorably toward a downtown parking plan that would vary prices based on usage, make parking in further lots cheaper and central streets more expensive; and would use parking revenues to help pay to reduce vehicle trips.

A thorough study of parking occupancy found that core on-street spaces fill up at peak times, but off-street structures and peripheral spaces have room.   In addition to using pricing to incent people to use the available spaces, the study recommended using signage with branding and dynamic information as well as mobile applications to help visitors find parking and seeing how many spaces are available.

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Up To Speed

What should a shrinking city do with its vacant housing stock?

What should a shrinking city do with its vacant housing stock?.

Losing population isn’t fun, and a host of cities throughout the U.S. have been losing population since their collective peaks in the 1950s. Cincinnati is one of those cities. Along with the troubling finances this presents, it also creates the predicament of deciding what to do with vacant households left behind. In Cincinnati, and many others, the decision has been to tear down homes and hope for something better. More from The New York Times:

A recent Brookings Institution study found that from 2000 to 2010 the number of vacant housing units nationally had increased by 4.5 million, or 44 percent. And a report by the University of California, Berkeley, determined that over the past 15 years, 130 cities, most with relatively small populations, have dissolved themselves, more than half the total ever recorded in the United States. The continuing struggles of former manufacturing centers have fundamentally altered urban planning, traditionally a discipline based on growth and expansion.

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Up To Speed

Chicago leading a movement of increasingly popular participatory budgeting practice

Chicago leading a movement of increasingly popular participatory budgeting practice.

Under Roxanne Qualls’ (D) guidance, Cincinnati dove into priority-driven budgeting in 2012. The proposal had mixed reviews and ultimately City Council ended up ignoring much of what the public had to say in order to prevent any cuts to public safety. The concept of participatory budgeting, however, is gaining popularity nationwide, and Chicago is looking to implement it city-wide in the near future. More from NextCity:

Five years after Moore’s district first tried participatory budgeting, three other wards have followed its lead, picking up a practice pioneered 25 years ago in Porto Alegre, Brazil. Since 2011, nine city council districts in New York adopted it. The city of Vallejo, Calif. did the samelast year, as did one council district in San Francisco. The results are promising, with participation levels relatively strong and zero scandals to date.

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Business News

BuyCincy Holiday Event Aims to Give Local Shops $500,000 Bump

The final two months of the year are often the make-or-break month for retailers. In some cases this relatively short time period can account for more than a third of a retailer’s annual revenues.

There is always much hype surrounding what specials the big retailers are offering on Black Friday, but there are also opportunities to support small, locally owned businesses this holiday shopping season.

What was previously known as Cincinnati Unchained will return this year as an expanded four-day event meant to encourage area shoppers to support locally owned shops, restaurants and bars. The BuyCincy Holiday Event will take place the week before Black Friday from Thursday, November 21 to Sunday, November 24.

East Walnut Hills Retail
Woodburn Avenue in East Walnut Hills. Photograph provided by 5chw4r7z.

According to Kurt Myers, co-founder and business director of BuyCincy, this will mark the seventh season for the event and that in previous years some merchants have reported that it ends up being their busiest day of the year.

There are more than 300 businesses participating in this year’s event, and that those shops are located in over 25 neighborhoods throughout the region. Organizers say that their goal is to generate new spending from over 35,000 customers, which would create an estimated economic impact of more than $500,000 with each shopper spending approximately $15.

“Supporting locally owned businesses has a three-and-a-half-times greater impact on the economy than shopping at a store that is not owned locally,” Myers explained. “Plus you get to support your friends and neighbors businesses and keep Cincinnati unique.”

In order to help encourage local shoppers to participate in the event, the Greater Cincinnati Independent Business Alliance (CiNBA) is working with retailers to offer raffle prizes. When customers visit a participating business they will receive a ticket to use in the raffle of thousands of dollars of prizes. To help further promote the effort, organizers are also encouraging people to use the #BuyCincy tag on social media.

A full list of the participating businesses and neighborhood business districts can be found at BuyCincy.com. Those businesses that are still interested in participating can do so by registering online and submitting a $25 minimum raffle donation.

If you want to support local businesses but are not quite sure about what to buy for that special someone, then you can also purchase them a Downtown Gift Card, which is redeemable at 180 stores and restaurants in Downtown and Over-the-Rhine, including all Findlay Market merchants. Those gift cards can be purchased online, at the offices for Downtown Cincinnati Inc., or at Findlay Market.