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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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News Opinion Politics

GUEST EDITORIAL: Get Over It, Then Get Ready

Don MooneyStreetcar supporters. Vine Street Taco- Noshers. Urbanistas. Roxanne and Quinlivan dead-enders. I feel your pain. We just had our butts kicked in city elections where only 29% of the electorate bothered to show up.

If you own property or a business in OTR you may be calling a realtor. Maybe you’re checking to see if it’s too late to cancel the granite countertops for that flashy new Main Street kitchen. Or just banging your head against the wall while trolling through Kayak.com for a one-way ticket to Portland.

Before you bail out, listen to a grizzled, cynical political warrior who has been on the losing side of plenty of elections, and won a few too, over 40 years on these mildly mean streets.

First, the election is over. Your team lost. Did you vote last year for 4 year terms? Oops. Get over it. Licking wounds for more than 48 hours is unsanitary.

Give some grudging credit to John Cranley and his handlers. He put together an unlikely coalition: Tea Partiers who just hate the messy melting pots of cities; (some) African American voters led to resent the idea of white urban professionals insisting on rides cushier than smelly Metro buses; and more than a few west siders convinced that “gentrification” in your neighborhood means more “undesirables” in theirs. (See Pete Witte’s twitter feed if you think I’m making that up.)

Mr. Cranley is hardly the first candidate to win an election by whipping up resentment in the “neighborhoods” about spending on development “downtown”. He won’t be the last. Many politicians have built entire political careers in this town on being against stuff.

The mayor-elect could care less if you call him “Can’t Do Cranley”. At 39, he sees this as a launching pad to greener pastures, even if he leaves shoe prints on your backs to prove he keeps his promises.

Advocates of the streetcar – and I’ve been one of them – have allowed their pet project to be painted by COAST and Chris Smitherman as a wasteful contraption designed for Chablis sipping metrosexuals, who think they are too good for the bus or the family mini-van. Can’t these precious young professionals read their iPads on the number 24, or get stuck behind a truck on the viaduct like the rest of us? Don’t take it personally. It’s just politics.

We have not sold the incredible progress downtown and in OTR, despite the great recession, as a model for other neighborhoods with their own aspirations for cool restaurants, modern transportation and rising property values. So in Price Hill and Mt. Washington, your rising neighborhood is seen as a threat to theirs, not as a sign of good things to come to our city.

Those of you with skills and no kids to tie you down can’t be blamed for bailing out now. With Cranley in the Mayor’s office and a hostile Council majority, the streetcar is on life support, and the air soon may start coming out of the downtown/OTR balloon. No doubt there are bright folks at 3CDC, dunnhumby and all those hip new branding firms with OTR addresses already tuning up their resumes.

We are now in an age when public investment will comes in the form of hiring the 200 more cops Mr. Cranley has promised, to protect us from ourselves.

But if you choose to stick around and fight another day, think a little more strategically:

Get to know the neighborhoods and convince them that what is good for the central city is not a threat to Westwood or Oakley. There is life on the other side of I-75 and Mt. Adams. Explore. Collaborate. Cross-Pollinate a little. Try the burgers at Zips and Camp Washington Chili.

Create a vision for a modern transportation system that does not begin and end in downtown and OTR; then sell it. Gas prices aren’t going down. Work with the Uptown institutions to develop a funding model that does not rely on council to come up with more cash. Develop a long-term vision that includes connections to Price Hill, Northside, Avondale and Walnut Hills.

Dig in for a long, hard but constructive fight with the new mayor and right-leaning majority on City Council. Give some credit to COAST and Smitherman for their relentless opposition to the outgoing regime. Now they hold sway with a mayor and council that owe them big time.

Progressives may need their own version of COAST to litigate, referendize and challenge the mayor and council. Look for wiffs of scandal and corruption to expose. And remind the city of their promises: restore 200 cops, fix the pension system, neighborhood development and no new taxes. No problem.

Recruit and bolster the next generation of city leadership. Low turnout says more about the candidates than the voters. Don’t expect voters to show up when the candidates don’t persuade them they have something at stake.

The absence of an African American candidate in the mayor’s election explains a lot about turnout in 2013. For eight years you were fortunate to have an African American mayor who “got” your aspirations. Find the next one: Yvette Simpson? Eric Kearney? Rob Richardson? Work with them or others and prepare them for 2017. You can’t beat somebody with nobody.

Remember that politics is cyclical. The faction that will take over at City Hall come December are political heirs to the crew that ran the city from 1997-2005; and before that in the 1980’s. They had their ups and their downs. But no cycle lasts forever. Be ready and rested when the next wind of change blows.

Don Mooney is a local attorney and longtime Cincinnati political activist. He served for more than 20 years on the Cincinnati Planning Commission and is a former Treasurer of Cincinnatians for Progress. If you would like to submit a guest editorial to UrbanCincy you can do so by contacting our editorial team at editors@urbancincy.com.