Tag: public policy

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The Plot Continues to Thicken for Cincinnati’s $133M Streetcar Project

Streetcar Charter Amendment Announcement
Streetcar Supporters Gather Outside City Hall to Announce the Start of a Charter Amendment Petition Drive. Photograph by John Yung for UrbanCincy.

In the latest twist of the ongoing Cincinnati Streetcar saga, the Federal Transit Administration (FTA) Administrator, Peter Rogoff, sent a piercing letter to Mayor John Cranley (D) and all nine members of City Council informing them that the FTA is planning to act quickly on what they perceive as a material breach of contract.

“The Cincinnati City Council passed eleven ordinances on December 4, 2013, that have the effect of suspending progress on the Cincinnati Streetcar Project, an unprecedented action to suspend a federally funded transit project while it is currently under construction and after the City committed approximately $116 million in expenditures and contractual agreements,” Rogoff wrote.

“The Council’s action is a material breach of the FTA Master Agreement and the separate Grant Agreements executed between FTA, the City, and the Southwest Ohio Regional Transit Authority to fund the project. As such, I write to inform you that unless this action is reversed and I receive not later than midnight on December 19, 2013, unequivocal assurances that the City will proceed with the project to completion on the current FTA-approved schedule, FTA will immediately terminate all of its grant obligations for the project and initiate a debt collection action to recover money owed.”

Strong words. It is no wonder Mayor Cranley jumped out in front of the media early on Facebook Friday morning to spin the letter as a positive development for his administration.

But what it also means is that the City of Cincinnati must complete its third financial audit of the project, with KPMG, no later than that date and should make a decision FTA finds satisfactory in order to avoid the loss of $40 million from the Federal government and debt collection on another $5 million of Federal money already spent.

“The City understood FTA’s position before it decided to suspend the project,” Rogoff emphasized with regard to ongoing claims by some streetcar opponents, contrary to what FTA has directly told them, who believe the $45 million in Federal funding could be reprogrammed to other area transportation projects.

Those activities happened on Friday and continued to evolve over the weekend. Meanwhile, the group fighting Mayor Cranley on this matter held a press conference on the steps of City Hall Monday morning announcing the start of a petition drive that would place a Charter amendment forcing the administration to finish the project according to its contractual agreements.

Streetcar supporters will need to gather 5,970 signatures in order to have the Charter amendment placed on the ballot, but say they are striving to collect 12,000 within five days in order to send a message to City Hall. Should they get the necessary signatures, it would be placed on the ballot for voters within 60 to 120 days according to state law.

“We are confident that this [the city’s ongoing financial audit] will show that the cost to stop the streetcar is more than the cost to continue,” Ryan Messer, unofficial spokesman for the ‘We Believe in Cincinnati’ organization, told the crowd. “We hope at that point City Council will remove the pause button and hit the restart button, so we can continue to see the growth and development that has already come as a result of the Cincinnati Streetcar.”

Article XVII Streetcar Charter Amendment


At the same time, Mayor Cranley has gone on the record and stated that he would potentially veto any majority vote by City Council to restart construction and complete the project. Such a move would require the Charter amendment or a 6-3 super majority vote of City Council to override the mayor’s veto.

Following Monday’s press conference, the ‘We Believe in Cincinnati’ organizers say they will host a signature gathering training session tomorrow evening at First Lutheran Church at 1208 Race Street in Over-the-Rhine from 6pm to 8pm. Organizers say all are welcome to attend and that they expect hundreds to show up for what will be the first of a five-day blitz to collect thousands of signatures.

In order to get to the super majority vote, streetcar supporters need both Vice Mayor David Mann (D) and Councilman Kevin Flynn (C) to side with the four existing council members supporting the project. While both Mann and Flynn have stated, and campaigned on the fact, that they would consider the facts and figures before making a decision, both have shown indications that their minds may already be made up even before the latest audit is completed.

“I’m not against the streetcar because I’m against streetcars,” Flynn, who prior to being elected had been a prominent streetcar supporter, told The Enquirer on Monday. “I’m against it because I don’t think it makes economic sense for the city right now. I don’t think the numbers are going to come back supportive.”

Whether Flynn and Mann were sincere in saying that they would reasonably consider the facts and figures associated with taking “unprecedented action” to cancel a project already under construction, or not, is yet to be seen. But in either case it appears that streetcar supporters have a tough road ahead of them.

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Development News Transportation

UC Planning, Engineering Students Propose Hamilton Avenue BRT Corridor

Hamilton Avenue BRT CorridorLast fall UrbanCincy partnered with the Niehoff Urban Studio on an event that highlighted the work of an interdisciplinary group of students. That semester engineering and planning students focused on urban mobility and looked at bikeways and bus rapid transit ideas within the city.

Each of the student groups presented their final research and findings to fellow academics and industry experts from around the region. We then gathered a group of transit and bike experts to engage in a panel discussion about the student’s proposals and about transportation in the region in general.

Throughout the course of the day, we asked members of the public who attended to vote on their favorite proposal. The winner was a bus rapid transit corridor along Hamilton Avenue that focused heavily on a transit-oriented development (TOD) in Northside where The Gantry is now being built.

The six-person team consisted of Tyler Kiefer, Benjamin Lafferty, Christopher Murphy, Michael Orth and Michael Walsh from the College of Engineering & Applied Science and Alexander Cassini from the College of Design, Architecture, Art & Planning.

First and foremost, the group said that their Hamilton BRT Line would most closely resemble Cleveland’s highly publicized HealthLine, which is the highest-rated BRT line, by far, in North America. The group also examined lines in Pittsburgh and Kansas City.

One of the main reasons for the comparisons to Cleveland is the similarities between the corridors. In both Cincinnati and Cleveland, the corridors connect neighborhoods under-served by transit to institutional services, while also providing greater mobility.

“The 2010 U.S. Census has shown how the population along Hamilton Avenue has less access to quick and reliable means of transportation when compared to the stats of Cincinnati and Ohio as a whole,” explained Masters of Community Planning student Alexander Cassini. “This lack of mobility directly affects citizens’ access to essential services and employment opportunities.”

Their research found that Metro’s #17 bus route, which most closely aligns with their proposed BRT corridor, currently averages weekday ridership of about 4,500 people. Furthermore, they found that approximately 17% of the households along the corridor have no car, 10% of the commuters identify as bus riders and there are 6,387 people living per square mile.

The proposed BRT corridor runs from Downtown to North College Hill, and the engineering and planning students saw this particular corridor as a major opportunity to spread investment and attention from the center city to additional neighborhoods that would take advantage of the BRT route’s 12 stations spaced out between one-half mile to three-fourths of a mile apart that would ensure faster and more efficient service. Each of the 12 station locations, Cassini notes, was selected due to its significant population and employment nearby.

“Northside and North College Hill are historic places in the city and present a great opportunity for Cincinnati to keep growing as a city,” noted civil engineering student Michael Orth.

Orth went on to say that while one of the positives of this corridor was the amount of people and businesses it could positively impact, the area’s congestion was also one of the team’s greatest challenges, stating, “There is very little room to implement a bus only lane throughout the corridor, which would be ideal for a BRT line.”

To help address this situation the group said that they envision a bus only lane, or a hybrid lane for buses and cars depending on the hour, through the congested portions of the route. Although not recommended, if a hybrid lane was determined to not be satisfactory Orth said that further study could be done to examine whether there would be enough benefit to remove on-street parking in order to provide for a consistent, dedicated bus only lane.

Other technology to help facilitate the quick movement of buses along the corridor would include arrival detection at traffic signals so that the lights can change in order to accommodate an approaching bus.

Existing Metro bus service, they said, would largely be redeployed to avoid redundancy, but some would remain since local buses stop more frequently – potentially creating a corridor of localized bus and express BRT service.

Hamilton Avenue BRT in Metro*Plus Context
One area where the Southwest Ohio Regional Transit Authority (SORTA) has already begun enhancing bus service is along Montgomery Road, which connects Downtown with the Kenwood area. That new Metro*Plus service, while not full BRT, is a step in the right direction according to the University of Cincinnati students, and has already seen ridership triple since its upgrade.

“Metro*Plus service is good but it is only the first step towards a true BRT system for the Cincinnati metropolitan area,” Cassini cautioned. “Metro*Plus service can be even more efficient, and effective if totally dedicated lanes and other additional features are added.”

Reading Road, where Metro began operating articulated buses in 2010, is actually the region’s most heavily utilized bus corridor with Hamilton Avenue coming in second and Montgomery Road third. If Metro is to continue to build out its enhanced bus service, or full-on BRT operations, then Hamilton Avenue may very well be the next logical choice.

What helped the group’s proposal stand out from other presentations was its focus on the TOD in Northside. With a $13 million mixed-use project coming out of the ground on that site now, the group reflected on their own proposal.

While the team had collectively noted the large, clean open space as being one of the huge benefits of the site, it also made it particularly valuable in their opinion. As a result, several of the group members, while encouraged about the private investment, were also a bit underwhelmed by the Indianapolis-based Milhaus Developers’ architectural design.

Both Cassini and Orth mentioned that they would be interested in working full-time in the transportation industry someday, but for different reasons. When asked to briefly compare the wide variety of transportation projects current in the planning or development stages around the region, there was a uniform response that their excitement is for the Cincinnati Streetcar.

“Although the planned streetcar line does not expand sufficiently in our eyes, we believe it would be an incredible economic development booster for Cincinnati’s downtown and overall urban core,” Cassini explained. “The overall transportation efforts around Cincinnati will eventually pay off to form a comprehensive and more easily navigable system than today.”

The Niehoff Urban Studio is currently working with a new set of students on designs for the Wasson Corridor, which runs through several of Cincinnati’s eastern neighborhoods. This is another topic that was examined by one of the interdisciplinary groups of planners and engineers last year. UrbanCincy is once again partnering with the Niehoff Urban Studio and will be organizing a similar showcase and panel discussion in 2014.

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Up To Speed

Are politicians conflating cash problems with pension problems?

Are politicians conflating cash problems with pension problems?.

Virtually every city in America is struggling with its pension obligations. It turns out that a massive downtown in the stock market, even temporary, can really damage the value of an investment portfolio. While much needs to be done in terms of improving and stabilizing these programs, some financial advisers are cautioning not to blame municipal budget issues entirely on legacy costs. More from Detroit News:

Turbeville’s report blames Detroit’s population loss in the last census for triggering a $24 million reduction in constitutional state revenue sharing. The Legislature cut Detroit’s annual statutory revenue sharing by an additional $42.8 million. The cuts account for a third of the city’s revenue losses between the 2011 and 2013 fiscal years, Turbeville said.

“By cutting revenue sharing with the city, the state effectively reduced its own budget challenges on the backs of the taxpayers of Detroit (and other cities),” Turbeville wrote in the report. “Furthermore, the Legislature placed strict limits on the city’s ability to raise revenue itself to offset these losses.”

Sound familiar Cincinnati?

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Business Development News Politics Transportation

After Another Day of Chaos at City Hall, Council Votes to “Pause” Streetcar Project

Today was the day that would show the true colors of those members of council freshly sworn into office. They were faced with a decision of voting to continue and finish construction of the Cincinnati Streetcar project, or voting to pause and essentially cancel the project altogether.

A shifting landscape continued to alter the debate and make the whole vote more intriguing, and thus more revealing. Yesterday a confidential document was leaked, that courts had ordered remain confidential, and showed that city attorneys felt the city might lose its case against Duke Energy for the cost of relocating utilities along the streetcar line. Many suspect the document was leaked by Mayor John Cranley’s (D) administration. Such a legal loss would cost the City the $15 million it currently has set aside in escrow.

On Monday, the Haile/U.S. Bank Foundation had offered up private money to fund the independent financial review of the project, which was then matched by an anonymous contribution on Wednesday that would also cover the costs of construction to continue while that study was conducted. Both offers were turned down by Mayor Cranley and the five members of City Council who ultimately voted to pause the project indefinitely.

Cincinnati Streetcar Financial Summary

Acting City Manager Scott Stiles also informed City Council that such an action to “pause” the project would cost the City between $2.6 million to $3.6 million per month due to contractual obligations – a number that exceeds the total amount it costs to merely continue construction activities.

An official vote to continue or cancel the $133 million project is expected to come following the conclusion of the financial review.

Some city officials believe the move will result in the Federal Transit Administration pulling $40 million in unspent money from the project and beginning debt collection on the $5 million already spent by the city – thus increasing the local cost share for city taxpayers. Others believe that the way in which the 11 approved ordinances have been written give the City a limited amount of time before the federal government acts.

During the hearing there were times that both Vice Mayor David Mann (D) and Councilman Kevin Flynn (C) seemed to be conflicted. They had both campaigned on their skepticism of the project, but vowed to carefully review the facts and figures associated with cancelling the project at such an advanced stage. Those promises, however, appear to have been not much more than lip service in order to appease their progressive base of supporters.

What actually happens next is anyone’s guess. A lawsuit has been threatened by a Cincinnati resident and attorney alleging Councilman Christopher Smitherman (I), who was one of the five voting against the streetcar today, has a conflict of interest and therefore has committed wrongdoing by voting or engaging in official discussion on the matter.

Additional legal action may come from citizens trying to block today’s action by council that prohibits citizens from placing the matter on the ballot for a third time. Outside of that, both CAF and Prus appear poised to file lawsuits against the city for breach of contract.

If streetcar supporters are successful at getting the matter put on the ballot, such an issue could be placed before voters as soon as 90 to 120 days following that motion. Although, it is expected that the Federal government could still pull their investment during that time regardless.

Atlanta Streetcar Construction
As politicians continue to bicker over Cincinnati’s $133M streetcar project after six years, Atlanta blazes ahead with construction of its own $69M streetcar project near Centennial Olympic Park. Image provided to UrbanCincy.

What makes the whole matter more startling is the apparent change of heart from the city’s powerful business community. Earlier today, the Business Courier reported that leadership at companies including Procter & Gamble, Frost Brown Todd, CBRE, Otto M. Buding Family Foundation, Haile/U.S. Bank Foundation, Greiwe Development Group, Grandin Properties, Blue Chip Venture, Jack Rouse Associates and Fifth Third Bank all expressed specific interest in either finishing the streetcar project or moving forward with a comprehensive regional rail transit system.

The Cincinnati Enquirer has also changed their position in recent weeks calling on the new mayor and council to finish the project.

All this combined with the change of position by P.G. Sittenfeld (D), who is now in favor of finishing the streetcar project, have seemingly empowered the active pro-streetcar groups causing some to urge for a recall of Mayor Cranley. Recall election or not, streetcar supporters are stating the battle is not over after today’s expected vote.

Who knows what will happen next, but what happened this week defies logic. In a matter of just three days, the new mayor and council have undone all the work that has taken place over the past six years to get the streetcar project to this point. Some may call that rushed, chaotic and reckless, and we would be inclined to agree with those people.

We know many of our readers are very passionate about this issue and very much want to see the first phase of the streetcar not only completed, but eventually expanded city-wide in a manner that compliments regional rail and bus transit. We will be getting together at the Moerlein Lager House tomorrow from 5:30pm to 8:30pm for our monthly URBANexchange event, and we would love for you to join us and share your feelings and discuss what you think will or should happen next.

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Up To Speed

New app allows users to tell their Congressional reps about inadequate transport

New app allows users to tell their Congressional reps about inadeqate transport.

Do you find yourself frustrated by traffic congestion, lack of bike lanes or sidewalks, inability to take a bus or train to your destination? Well, Building America’s Future has released an updated version of their ‘I’m Stuck!’ app that allows people to directly send messages to their Congressional representatives – urging them to start funding the necessary improvements to make our communities mobile and safe. More from Streetsblog Capitol Hill:

Among the new features of their app redesign, BAF has added a way to tell Congress you need better bicycle infrastructure… According to BAF, the app has been downloaded 11,000 times and 3,500 messages have been sent to Congress. The old version didn’t let them track how many were complaining about sitting in traffic versus how many were complaining about inferior transit. And as we mentioned last time, you’ll have to customize your message if you want to make sure Congress knows that you’re not asking for more car lanes but rather a transit line that would get you off the road altogether. And remember, distracted driving rules apply.