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Business News Politics

Comprehensive Study Needed to Examine Cincinnati’s Migration Problem

Cincinnati has a problem with attracting immigrants.

While it is the largest metropolitan region in Ohio, Cincinnati lags behind both Cleveland and Columbus in attracting foreign migrants. Even as Cleveland continues to lose population and struggles with a weak economy, Cincinnati, with its much stronger economy and national recognition, attracts fewer of America’s newest residents.

More alarmingly, at 4.6%, Cincinnati ranks behind all of its regional competitors (Columbus, Indianapolis, Louisville, Pittsburgh, St. Louis) in percentage of foreign-born population. Columbus (10.5%) and Indianapolis (8.4%) have double or nearly-double the percentage of foreign born population. Cincinnati only bests Pittsburgh and Louisville in terms of attracting immigrants over the past three years.

International Migration 2010-2013

The United States as a whole continues to attract millions of new immigrants. They’re just not coming to Cincinnati at the same rate as elsewhere.

Mayor John Cranley’s (D) recent announcement to start an initiative to grow the immigrant population in Cincinnati is a welcome one. With statistics showing that immigrants are more likely than non-immigrant Americans to start a business, a flux of foreign residents would be good for Cincinnati’s economy in more than one way.

Cranley is not unique among mayors in cities across the nation that have suffered massive population losses since the 1950s. From Baltimore and Philadelphia, to Detroit and Dayton, cities across the country are now targeting immigrant communities in order to help bolster populations and foster economic growth.

Preferably, Cincinnati’s quest to attract new immigrants will be part of a larger plan to attract new residents, period. While lagging behind in attracting immigrants, the region also continues to shed existing residents to other parts of the country.

International - Domestic Migration in 2013

Local leaders should authorize a comprehensive study to find out why Cincinnati struggles so greatly with attracting domestic and international migrants. With a growing economy and incredible regional assets, there is no reason why Cincinnati should fail so miserably at attracting new people.

It may prove wise to set city funds aside to create some sort of media blitz that touts the benefits of the city and the surrounding region. With a recent Gallup poll showing that 138 million people around the world would choose to move to the United States if given the opportunity, the market for new immigrants is surely present. Some sort of economic incentive would help as well. Tax breaks for immigrant businesses and incentives to live within city limits will help attract immigrants of all economic levels.

It is not a stretch to imagine that Columbus’ ability to attract and retain so many more immigrants than Cincinnati is due to the presence of Ohio State University, one of the nation’s most prominent public universities. As a result, Cranley should take heed and foster greater cooperation between the City of Cincinnati and the University of Cincinnati and Xavier University, using those nationally-recognized institutions to attract even more newcomers.

At the end of the day, however, immigration is a national issue. For that reason, regional leadership should be in active dialogue with Cincinnati’s Congressional delegation and lobby them to support immigration reform and initiatives that will help attract immigrants not just to the U.S. in general, but to the Cincinnati region specifically.

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Business Development News Opinion Politics

EDITORIAL: Eight-Point Plan for Fixing Cincinnati’s Broken Parking System

Cincinnati Parking Meter
Broken and malfunctioning meters plague Cincinnati’s parking system. Photograph by Randy Simes for UrbanCincy.

We are continuing to look at opportunities inside City Hall that could help alleviate Cincinnati’s budget and pension liabilities, while also maintaining and improving service delivery.

In addition to the waste collection reforms that include a shift to a Pay As You Throw system, we will be making other specific policy recommendations that we feel will improve the quality of service delivery while also improving the City’s finances – ultimately working toward a long-term, structurally balanced budget.

Back in June 2010, UrbanCincy examined the finances of the city’s parking system. In this analysis, and comparison with cities from around the country, we discovered a broken system that was not performing the functions it needed to perform, and was not financially solvent.

As a result, we recommended a seven-year lease of all 5,700 of the city’s on-street parking meters. We estimated that such a deal could yield just over $3 million in annual payments, while also ridding the city of the associated financial liabilities. We did not estimate what an upfront payment could be due to the infinite number of variables that could affect that.

While much has changed politically since that time, the facts remain the same. Cincinnati’s parking system is broken, and is in need of immediate upgrades and reforms.

One of the first actions by the newly elected Mayor John Cranley (D), however, was to halt the signed Parking Lease & Modernization agreement, executed by former City Manager Milton Dohoney, which was structured to solve these exact problems. Under that deal the City would have leased four parking garages, one parking lot and all of the City’s on-street parking meters to the Port of Greater Cincinnati Development Authority.

The Port then agreed to work with Xerox to manage the system and implement comprehensive upgrades to the deteriorating and outdated system. This would have included electronic parking meters that accept credit cards, real-time parking availability data systems and the rehabilitation of existing lots and garages.

The deal would have also provided the City of Cincinnati with an upfront payment of $85 million, generated approximately $3 million in annual installment payments over the life of the agreement, and guaranteed approximately $98 million in capital investments into the system. For better or worse, that agreement has been jeopardized and we are essentially back at square one.

So where and what exactly is square one?

The City has been experiencing declining revenues from its parking assets for several years now. Revenue collections peaked years ago, but have been declining recently due to inadequate enforcement and the parking system’s poor state of repair. These assets require constant and expensive maintenance and upgrades, so virtually all of the money generated by the Parking System is spent maintaining the Parking System.

This is important. The Parking System does not generate any excess revenue for the city to use on other basic services.

In most years the Parking System is revenue neutral, meaning that the revenues it generates cover its expenses. This is acceptable, unless you are deferring maintenance costs in order to make the numbers match. This has been the case in Cincinnati for years, and has left the Parking System in terrible condition.

The situation has gotten worse in recent years as council has worked to balance the budget without laying off employees. In both 2010 and 2011, the city spent considerably more on the Parking System than it collected in an effort to keep it up to snuff. We are talking $3.6 million more in 2010 and $1.1 million more in 2011. This stopped in 2012 when the city cut its annual investments in the Parking System by several million dollars.

Cincinnati's Broken Parking System

For reference, investments in the Parking System today are approximately 38% lower than they were when the City invested $13.3 million into the Parking System in 2010. Over that same period, the parking fund balance has dropped from $12.5 million to $7.8 million.

Simply put: revenues are down, maintenance is being deferred and the parking fund is being depleted. This is not sustainable.

The recent proposal from the Cranley Administration, which was immediately and thoroughly rejected by just about everyone except five council members, does not address what the problems are, and therefore does not propose appropriate solutions for those problems.

The situation and trajectory is dire and UrbanCincy recommends that the City of Cincinnati move forward with upgrades to its Parking System immediately. Absent the previously agreed upon Parking Lease & Modernization deal or some other public-private partnership; here is how we suggest doing so:

  1. Issue bonds to upgrade all parking meters in the city to use the latest electronic payment collection and occupancy tracking technology. This would include pay-by-phone capabilities.
  2. Utilize the new technology to implement variable pricing structures that reflect real-time market demand. If there is a Bengals game downtown and meters near the stadium are packed, then the rates on those meters would increase, while meters further away would maintain lower rates. In neighborhood business districts the same would be true. When demand is high so should be prices. When demand is low, prices should drop accordingly to make it a more attractive option for those visiting our neighborhood business districts.
  3. Release a new application, website and text alert system that notifies drivers of parking space availability and informs them of the associated rates.
  4. Sell the city-owned parking lot at Third Street and Central Avenue so that it can be repurposed into a tax-producing property.
  5. Create a special lease agreement for city-owned parking garages and lots, so that the separate authority could manage advertising at these locations. The Ohio Revised Code currently does not grant cities authority to sell advertising in such a manner, but not allowing for advertisements is unnecessarily cutting off much-needed revenue. Let’s get creative so that we can maximize revenues without burdening our residents, businesses or visitors.
  6. Tear down the Garfield Garage, which is in greatest need of repair, and market the site to developers interested in building on it. Such a development agreement could include the provision of the same or greater number of parking spaces to be replaced – similar to the deal signed for the new residential tower to be built at Fourth and Race Streets in the place of the Pogue’s Garage. This will free the city from a major capital expense that would further deplete the parking fund in the near future.
  7. Tear down the Seventh & Sycamore Garage, which is the only thing blocking the construction of a $14.2 million, 115-room hotel and 725-space garage from being built in its place. The existing 450-space garage is also in poor condition and its removal would be another major liability coming off the City’s books.
  8. Conduct a citywide study to determine appropriate adjustments to the hours of operation for on-street parking meters on a neighborhood-by-neighborhood level.

Following through on these eight recommendations will allow the city to maintain ownership and control of its Parking System while also allowing it to make the necessary upgrades and improve the balance sheets for this portion of the budget. These changes will make the Parking System a revenue generating asset not just in rhetoric, but in reality.

The increased revenues will allow for the City to replenish the parking fund, make its upgrades and take additional revenue and use it to support other essential but non-revenue generating public services.

Categories
Business Development News Transportation

Cincinnati Aims to Open Initial Phase of Bike Share System This Summer

Cincinnati Bike Share Station MapCincinnati is set to join the ranks of American cities with bike sharing with the launch of Cincy B-Cycle next summer. The program is being organized by Cincy Bike Share, Inc. and is expected to begin operations in June.

Jason Barron, who previously worked in the office of former mayor Mark Mallory, was hired as the non-profit organization’s executive director in early December.

Over the last several years bicycle sharing programs have begun operating in several dozen cities across North America, and many more are planned. In July, CoGo Bike Share started operating in downtown Columbus and surrounding neighborhoods – marking the first bike share system to open in Ohio.

The planning for Cincinnati’s bike share system has been underway since 2011, when the Cincinnati USA Regional Chamber’s Leadership Cincinnati program started looking at getting a program running here. Then, in 2012, a feasibility study was commissioned by Cincinnati’s Department of Transportation & Engineering (DOTE).

It was not until the summer of 2013, however, that Cincy Bike Share, Inc. was established, and quietly selected B-Cycle to manage the installation and operations of the program.

B-Cycle operates bike share programs in over 25 cities in the United States, including Kansas City and Denver, and has started expanding overseas.

While traditional bike rentals are oriented to leisure rides, with the bike being rented for a few hours and returned to the same location, bike sharing, on the other hand, is geared for more utilitarian use.

According to Barron, usage of shared bikes is intended for one-way rentals over shorter time periods. Bikes are picked up and dropped off at unattended racks, where they are locked with a sophisticated system that is designed to allow users to quickly make trips that are just beyond walking range – often times about a half-mile to two miles in length.

The way the systems usually work is that users can either purchase a monthly or yearly membership that entitles them to a certain number of rides per month. Non-members, meanwhile, are typically able to purchase passes by the hour or day and are able to pay by cash or credit card at the informational kiosk present at each station.

Proponents view bike share programs as attractive components in the development of vibrant cities. With the continued revitalization of Cincinnati’s center city, Barron feels that bike share will fit well into the mix.

“With all systems of transportation, the more the merrier” Barron explained. He went on to say that he hopes that bike sharing, cars, buses and the streetcar “will work together to give people some great mobility options.”

One of the remaining tasks for Barron and the newly established Cincy Bike Share organization will be securing the necessary funding to build the approximately $1.2 million first phase of stations and the $400,000 to operate it annually. Barron believes that it can be accomplished through a number of ways including through a large number of small sponsors, as was done in Denver, or signing one large sponsor like New York City’s CitiBike system.

In addition to added exposure, bike share advocates point to research that shows improved public perceptions for companies sponsoring bike share systems. In New York, it was found that Citicorp’s sponsorship of CitiBike led to greatly increased favorability of the bank shortly after that bike share program launched.

“It’s a tremendous opportunity for a corporation to tap into the young professional market,” Barron told UrbanCincy.

Cincy Bike Share is planning to start operations with about 200 bikes based at about 20 stations in downtown and Over-the-Rhine in the first phase, and would include a total of 35 stations with 350 bikes once phase two is built. Cincinnati’s initial system is modest in size when compared to other initial bike share system roll outs in the United States.

New York City CitiBike: 6,000 Bikes at 330 Stations
Chicago Divvy Bike: 750 Bikes at 75 Stations
Boston Hubway: 600 Bikes at 61 Stations
Atlanta CycleHop: 500 Bikes at 50 Stations
Miami DecoBike: 500 Bikes at 50 Stations
Washington D.C. Capital Bikeshare: 400 Bikes at 49 Stations
Denver B-Cycle: 450 Bikes at 45 Stations
Columbus CoGo: 300 Bikes at 30 Stations
Cincinnati B-Cycle: 200 Bikes at 20 Stations
Salt Lake City GREENbike: 100 Bikes at 10 Stations
Kansas City B-Cycle: 90 Bikes at 12 Stations

Cincinnati’s bikes are expected to be available for use 24 hours a day, and Barron says they will also most likely be available for use year-round. Cincy Bike Share will be responsible for setting the rate structure. While not final yet, it is estimated that annual memberships will cost $75 to $85 and daily passes will run around $6 to $8.

The 2012 feasibility study also looked at future phases opening in Uptown and Northern Kentucky. While it may be complicated to work through operating a bi-state bike share system, Barron says that Cincy Bike Share has already discussed the program with communities in Kentucky and says that they have expressed interest in joining.

While there is no state line or a river separating the systems initial service area downtown from the Uptown neighborhoods, steep hills at grades ranging from 7% to 9% do. These hills have long created a barrier for bicyclists uptown and downtown from reaching the other area with ease.

Barron views the hills as an obvious challenge, but part of Cincinnati’s character and what make Cincinnati great. When the Uptown phase gets under way, he says that it will be operated as one integrated system with the first phase, but that it is not known yet how many users will ride between the two parts of the city.

Over the past few years, the DOTE’s Bike Program has greatly increased the city’s cycling infrastructure, and it is believed that continued improvements will help make using this new system, and the increasing number of cyclists, safer on the road.

Cincinnati’s new bike share system also appears to have majority support on council and with Mayor John Cranley (D), who has publicly stated that he is in favor of the program. “We plan on working with the City as a full partner,” Barron noted. “We think everything’s in place.”

If everything goes according to plan, the initial system could be operational as early as this summer.

Salt Lake City GREENbike photographs by Randy Simes for UrbanCincy.

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Up To Speed

As the knowledge economy takes greater hold, where does Cincinnati fit in?

As the knowledge economy takes greater hold, where does Cincinnati fit in?.

As Cincinnati’s new leadership settles into their self-empowered roles of merely paving roads and keeping streetlights on, how does that position the city and region in an ever-changing economic landscape that is favoring fewer and fewer places? By not investing in placemaking strategies and transit, the city’s future may appear bleak unless a change is made. More from The New York Times:

“The most profitable businesses no longer involve heavy machinery; they are rooted in ideas, which, it turns out, spread most effectively when knowledge workers are densely packed together. The top handful of major metropolitan areas — New York, Chicago, Los Angeles — account for a hugely disproportionate share of overall U.S. economic growth, Glaeser says. There is every reason to believe this trend will continue and, most likely, increase. That will draw even more of the high-earning elite to big cities and many of the poor, too, seeking jobs and assistance in these centers of economic growth.”

Categories
Business Development News Politics Transportation

Cincinnati’s Streetcar Victory a Decade in the Making

The final, final, final vote for the first phase of the Cincinnati Streetcar took place today. Perhaps by now you all know the outcome. A six-person veto-proof super-majority voted to continue construction. Cincinnati, as Mayor John Cranley (D) said today, will have a streetcar.

What is important in this moment is to realize that everyone involved lived up to their campaign promises. Wendell Young (D), Chris Seelbach (D) and Yvette Simpson (D) stood strong in their support of the project – even in the face of uncertain outcomes.

At the same time, Christopher Smitherman (I), Amy Murray (R) and Charlie Winburn (R) held true to their promises to oppose the streetcar no matter what. They were the three lone votes against restarting construction.

Construction work will soon resume on Cincinnati’s $133M streetcar project. Photographs by Travis Estell for UrbanCincy.

Then there are the three council members who campaigned on taking a serious look at the numbers and making a prompt decision about whether to cancel the project or proceed. P.G. Sittenfeld (D), David Mann (D) and Kevin Flynn (C) all did that once they saw the numbers in detail. Cancelling a project this far along would have been fiscally irresponsible, and they voted true to their campaign promises to be good stewards of the taxpayer’s dollars.

UrbanCincy has been covering this project since we started the website back in 2007. Our original coverage focused on redevelopment efforts in Downtown and then Over-the-Rhine, but the streetcar quickly became a big part of that redevelopment narrative. It is no secret that we are strong supporters of the project and believe it will improve mobility in the center city and set the city on a path toward building the regional rail system everyone seems to now desire.

There are many people responsible for getting Cincinnati to this stage, but the biggest credit must absolutely be given to John Schneider. If it were not for his unrelenting leadership on this issue over the past decade, we would not be anywhere close to where we are now.

The emergence of Mayor Mark Mallory (D) then gave the city a prominent leader to push the project forward, and Mallory leaned on the expertise and leadership of former City Manager Milton Dohoney and Vice Mayor Roxanne Qualls (D) to get it all done.

It is important to keep in mind that the person who first pushed for the Uptown extension to be included in phase one was in fact Roxanne Qualls. The Uptown Connector was never part of the original phase one plan, but was added in later as “Phase 1b” at the urging of Qualls, who then worked with Mallory and then Governor Ted Strickland (D) to secure state funding to make that happen.

Hard fought victories in 2009 and 2011 helped keep the project alive, but also delayed it and ran up the project’s costs. Those delays also allowed enough time for Governor John Kasich (R) to assume office and pull the $52 million in state funding Ohio had originally pledged.

So while Qualls’ leadership and vision to have the first phase include the Uptown Connector is not being realized at this exact moment, our attention must now turn to extending the streetcar line to neighborhoods in Uptown as quickly as possible.

Cincinnati Regional Rail Plan
The first phase of the Cincinnati Streetcar system is a small part of a much larger regional rail plan envisioned by leaders. Map provided by OKI Regional Council of Governments.

A new wave of leaders and organizers has emerged in Cincinnati as a result of this most recent battle over the streetcar project. This includes the heroic efforts of Eric Avner and the Haile/U.S. Bank Foundation for drumming up private support to contribute $9 million toward the project’s ongoing operations.

Their hard work and courage should certainly be commended, but let’s also not forget the people who have been pounding the pavement on behalf of the streetcar since the beginning. Most Cincinnatians in 2007 did not know what a streetcar was, much less a modern one and the benefits it would bring. The hard work put in by those people early on was necessary.

This movement was not built overnight and these supporters are not fair-weather fans of the city. The movement has grown in size and grown more sophisticated over the past decade and is now stronger than ever.

You too can join this urbanist movement in Cincinnati.

We gather at the Moerlein Lager House around the first Thursday of every month to host URBANexchange – an urbanist networking and social event. We also partner with the Niehoff Urban Studio at the University of Cincinnati to study complex issues facing our city and engage the public in that dialog. Please join us at our next URBANexchange and pay us a visit in Corryville for our next event with the Niehoff Urban Studio.

Now is a time to celebrate and reflect. But it is not the time to get complacent. There are more issues to address and this energy that saved the streetcar needs to be redirected there. Congratulations, Cincinnati! Let’s get to work.