Tag: public policy

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Business News Transportation

Metro to install new eletronic payment system on entire bus fleet

In February 2011 UrbanCincy challenged Cincinnati transit leaders to create a universal transport payment system that would rival the world’s very best. The challenge was made, in part, because we knew an overhaul of Metro’s 17-year-old fare collection system was imminent.

On Friday Metro officials announced those long-anticipated changes. By the end of 2011 Metro will install new fareboxes on their entire 333-bus fleet. The new fareboxes will utilize smartcards that can be loaded with monthly passes or set pay amounts ($10, $20 or $50). The use of smartcards will allow riders to simply tap-and-go, and it will allow transit planners to more accurately track ridership patterns system-wide. The new GFI Odyssey fareboxes will also automatically issue transfers upon payment.

“One of our goals is to make riding Metro easier and more convenient for our customers and potential customers,” Terry Garcia Crews, Metro CEO, said in a prepared statement Friday. “The new fareboxes will help Metro boost productivity by generating detailed ridership data that Metro needs to manage our service.”

Each year Metro collects approximately $23 million in fares, which accounts for roughly 27 percent of Metro’s total operating revenue. The new fareboxes are being purchased largely through a $3.6 million federal grant which is providing 80 percent of the total cost. The remaining $900,000, officials say, will come from local funding.

Officials say that future improvements may be made to the smartcards that could allow for more flexible spending accounts, but for now only set payment amounts will be accepted. While the system is an enormous improvement over Metro’s nearly two decade old system, it still falls short of UrbanCincy’s challenge.

As currently planned, the system does not integrate with the other regional transit agencies or with local businesses, and there is no mention of the smartcards compatibility with financial institutions. Furthermore, the new system does not integrate with other modes of transport like taxis or the University of Cincinnati’s bike share program, for example.

As the new GFI Odyssey farebox system is implemented over the next six months, regional leaders should meet to discuss how this $4.5 million investment should be leveraged to improve Cincinnati’s quality of life for tourists, businesses and residents. A truly integrated payment system, like London’s Oyster Card or Seoul’s T-Money Card, has the ability to change the game. Cincinnati should be so bold.

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News Transportation

Ridership continues to grow on Metro’s express commuter routes

Newly released data shows an uptick in commuter bus ridership in Cincinnati. The figures from Metro show a 10.9 percent ridership increase for May when compared to last year, and is the fifth straight month of such ridership increases. Officials believe that the increase is a result of increasing gas prices.

“It’s exciting to see the growth in our commuter market,” Metro CEO Terry Garcia Crews said in a prepared statement. “This increase demonstrates that viable option for our residents.”

Such gains may prove difficult to maintain though as economic conditions continue to stagnate and gas prices begin to level off. According to recent reports, unemployment climbed in May and is the highest it has been in 2011. Additionally, employers were reported as adding the fewest workers in eight months.


Metro bus at Government Square in downtown Cincinnati.

Gas prices have also declined from the highest levels since July 2008. These two factors may be tricky for transit officials as they attempt to project ridership patterns for the rest of year. Previously, Metro has been very susceptible to such economic activity, with ridership often declining with the economy.

Even with that said, Metro officials believe that long-term rises in gas prices signal positive ridership trends for the transit agency as commuters look to their wallets.

“If you drive 20 or 25 miles one-way to work, you’re probably using two gallons of gas a day,” Crews explained. “Metro offers a convenient alternative to paying higher gas prices.”

According to Metro officials, these savings can add up. The regional transit agency estimates that local commuters can save $4,500 or more each year by riding transit.

Further complicating the matter is a reduction of state funding support for express commuter bus service. In February, newly elected Governor Kasich (R) cut $70 million which was to support such bus service throughout Ohio. The cuts hit Cincinnati by eliminating funding for express routes from Cincinnati’s western and northern suburbs into Uptown.

Whether commuters will continue to turn to express commuter bus service or not is yet to be seen, but it appears that Metro is banking on such future activity with the recent announcement to expand express bus service to Cincinnati’s northern and western suburbs by cutting service elsewhere.

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News Transportation

Diverse transport network positioning Minneapolis as economic leader

Minneapolis is not a coastal city, nor does it boast a favorable climate, but the city does count a growing population of young people and 21st century jobs on its score sheet. What is also unique about this German Midwestern city is that it has become the envy of other cities due to its impressive bicycling culture, expanding transit system and diverse economy.

The Twin Cities boast two unique transport items. The first is the bicycle highway connecting bicycle commuters with downtown Minneapolis and other job centers. The second is a growing light rail system that taps into regional commuter rail. The Minneapolis light rail system is still young, but this has benefitted its operations.


Hiawatha Light Rail at Franklin Avenue Station (January 2011). Photograph by Randy A. Simes.

Unlike St. Louis and Denver, Minneapolis’ light rail system has low-floor vehicles that do not have awkward steps right when you enter the train. The more modern rolling stock used in Minneapolis is also more visually attractive and at least seemed to be quieter.

Presently the light rail system extends from the famous Mall of America, through the region’s international airport eastern suburbs, and into downtown Minneapolis eventually terminating at the recently completed Target Field (home of the Minnesota Twins).

The good thing about the line is that it is there and that it has been able to improve on earlier designs incorporated elsewhere throughout the United States. The problem is that the route runs through a very suburban-designed part of the region and offers very little in terms of walkability immediately surrounding the stations. Transit-oriented development will certainly help this situation, but significant time and money will be needed to right the ship.

Much like Atlanta, Minneapolis seemed to sacrifice urban connectivity so that their early system connected major nodes like their airport, stadiums and mega mall. As a result much of the large population nodes are left off the map, and thus out of reach of this young light rail system.


Articulated bus in the Warehouse District [LEFT], and Hiawatha Light Rail running through downtown Minneapolis. Photographs taken by Randy A. Simes in January 2011.

What will help this issue immensely will be the system’s growth. Fortunately, the region’s rail transit system is about to grow and expand into St. Paul. Under construction now is the $957 million, 11-mile Central Corridor light rail project. This will tap into the existing Hiawatha light rail line at its Metrodome Station in downtown Minneapolis.

The 16-station Central Corridor light rail line will connect downtown St. Paul and the University of Minnesota with the rest of the overachieving transit system. Current projections call for the first passengers to start riding in 2014.

While Minneapolis and St. Paul are not there yet when it comes to transit, they have been investing in a system for years that is beginning to become regional and comprehensive. These moves already seem to be paying nice dividends for the Twin Cities, and have placed it among one of the few good economic performers in the Midwest. Where would Cincinnati be today had it began investing in regional rail transit in 2002 when MetroMoves put regional light rail before voters?

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Business Development News

CDFC $2 million closer to investing in Northern Kentucky’s urban neighborhoods

Thanks to an equity investment from PNC Bank, the Catalytic Development Funding Corporation (CDFC) of Northern Kentucky is $2 million closer to its $10 million capitalization goal. With the recent investment, the Catalytic Fund is up to $6.5 million.

Once the $10 million goal is met, CDFC will begin making targeted investments in catalytic development and redevelopment projects in northern Kentucky’s urban neighborhoods in order to spur additional investment and revitalization in the area. The Catalytic Fund investments will provide patient capital for projects that could not occur due to private capital market constraints.

Patient capital does not always take the same form, but generally it is more flexible and willing to accept more risk than conventional funding. The purpose is to fill in gaps in a financing package to make a project more attractive to primary lenders. Patient capital tends to be the first money into a project and typically is repaid after the primary loan payment is made each payment period. This is a similar model that 3CDC uses when deploying Cincinnati Equity Fund capital.

In addition to providing patient capital for development projects that meet the Catalytic Fund’s investment criteria, CDFC will also facilitate development by acquiring land for future projects, providing technical assistance to developers, and recruiting developers to participate in northern Kentucky’s urban renaissance.

The CDFC and the Catalytic Fund will be in very capable hands. Jeanne Schroer, the executive director of CDFC, has over 25 years of experience as a real estate professional specializing in project financing.

The CDFC and the Catalytic Fund were created in 2008 based on a recommendation by the Urban Renaissance Action Team of northern Kentucky’s Vision 2015 planning initiative. Since the fund’s inception, Jeanne Schroer has been working tirelessly to raise $10 million during tough economic times. This is a list of all the contributors to the fund so far:

Photo courtesy of Jeanne Schroer

Categories
News Politics Transportation

Special hearing geared to test supporters of Cincinnati’s streetcar plan

Three Republican members of Cincinnati City Council have requested a special meeting to review the Cincinnati Streetcar project, in order to get further clarification from city administrators about the project in its revised form.

Council members Charlie Winburn, Wayne Lippert and Amy Murray have requested the meeting. Despite previous opposition to the original plan, the council members now want clarification on the new route that will not initially connect Downtown and Uptown.

Lippert admitted that the original plan had great economic implications, and is now voicing concerns about the reduced route. This new view contradicts other Republican members of Council who expressed their doubts about the original plan’s economic impact.

At a press conference last week, Mayor Mallory emphasized that the revised version of the streetcar route is a phased implementation, with the line reverting back to its original state once there is more funding in place. The governor’s office pulled all state funding for the project, and even this week the federal government passed over Ohio when reallocating two billion dollars from another high speed rail project. This move was presumably due to Kasich returning money for the 3C Corridor project at the beginning of 2011.

The meeting will be held at 6pm in Council Chambers at City Hall (map). There will be an open comment period, and any available streetcar supporters are strongly encouraged to come early, fill out a comment card, and give a short, prepared statement explaining why they are in favor of the project.

Streetcar supporters march in the 2010 Bockfest Parade. Photo by Sherman Cahal.