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Special Streetcar Meeting Called by Roxanne Qualls in Light of Funding Issues

On Tuesday, City Manager Milton Dohoney sent a memo to council members that said after a thorough review of the bid process, construction of the streetcar tracks, electrical equipment, and maintenance facility will cost $17 million more than the city had budgeted. This news raises the total cost of the project from $110 million to approximately $127 million.

As a result Vice Mayor Roxanne Qualls (C), Chair of the Budget and Finance Committee, has called a special meeting April 29 at 6pm. Dohoney will report on the costs of cancelling Cincinnati’s streetcar project, which broke ground in 2012.

Utility relocation work has been underway for more than a year, and fabrication of five streetcars began at CAF’s facility in Zaragoza, Spain in early 2013. The City of Cincinnati reports that $20.3 million has been spent on the streetcar project to date.

Ohio TRAC
Two failed ballot initiatives meant to kill the Cincinnati Streetcar, and the revocation of $51.8M from TRAC have delayed temporarily set back the project for years. Photograph by Jake Mecklenborg for UrbanCincy.

So far Cincinnati’s streetcar has been the recipient of three federal grants totaling $39.9 million dollars. If the project is cancelled, the city will likely have to reimburse the federal government for whatever grant funds have been spent. Additionally, it will either need to cancel its contract with CAF or sell the five streetcars to another city after they are completed in 2014.

Planning for the streetcar project began in late 2006. A study was completed in 2007 and funding was assembled in 2008. On the cusp of groundbreaking, COAST, the notorious local anti-tax group, mounted a petition drive that saw an anti-streetcar charter amendment placed on the November 2009 ballot. Issue 9 was defeated, but it succeeded in delaying the project by a year.

During that same election, John Kasich (R) was elected governor of Ohio. He immediately cancelled Ohio’s 3C Passenger Rail project, scuttled state funding for new express Metro routes funded under outgoing Governor Ted Strickland (D), and appointed Jerry Wray chair of the Ohio Department of Transportation (ODOT).

In April 2011, the Transit Review Advisory Committee (TRAC), also chaired by Wray, cancelled $51.8 million in state for Cincinnati’s streetcar project and directed the funds to railroad overpass projects in rural Ohio.

Without its largest grant, a connection to the University of Cincinnati was removed from the project’s first phase.

Sensing weakness, COAST mounted another petition drive and again succeeded in placing an anti-streetcar charter amendment on the ballot. Issue 48 was defeated but succeeded in delaying the project for another full year.

In that same election, all incumbent Republicans, with the exception of Charlie Winburn, were swept from council and replaced by a 6-3 pro-streetcar majority. The project broke ground in February 2012 but the track, electrical, and car barn contract was delayed by litigation between the City and Duke Energy.

The Public Utilities Commission of Ohio (PUCO) ruled in the city’s favor in late 2012 and the project was put out to bid in February 2013.

Bids came in significantly higher than the city budgeted, and on April 29 council will hear the cost of cancelling the project verses continuing with the project as planned, presumably after voting to sell $17 million more in bonds.

After this rise in the project’s cost from $110 million to $127 million, annual debt service paid from the city’s capital fund will be approximately $4 million. Operations costs, paid from the operations general fund, will be about $3 million.

The $7 million annual cost to operate the streetcar system will consume less than 2% of the city’s annual $400 million budget.

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Business Development News

PHOTOS: $80M Mixed-Use Development Nears Completion in Clifton Heights

W. McMillan Street

Since 2000, the University of Cincinnati’s surroundings have changed dramatically – many homes and a few landmark buildings were demolished for construction of Stetson Square, McMillan Manor, University Park Apartments, and 65 West. U Square at the Loop, a 161-unit, $80 million midrise situated between McMillan and Calhoun Streets, has been under construction for more than a year and is scheduled for occupancy on August 1.

The development includes over a dozen street-level commercial spaces, an office building that has been rented by the University of Cincinnati, and a site fronting McMillan Street where a hotel is planned. Apartment prices range between $695 for studios to $2,350 for penthouses with balconies.

U Square at The Loop

Reserved parking spaces in the development’s two garages will cost $95/month. Unlike other new apartment complexes in the area, units at U Square at the Loop can be rented by non-students.

In the early 2000s the site where U Square at the Loop is being built was partially cleared for a very different development – a 360-unit condo midrise dubbed McMillan Park that had been in planning since 1999. The two phases of the development were planned above two underground parking garages totaling 900 spaces, and planned units ranged from $160,000 for a one bedroom to $800,000 for a penthouse.

That project was to be financed by the University of Cincinnati, the site assembled by the City of Cincinnati through eminent domain, and the project managed by the Clifton Heights Community Urban Redevelopment Corporation (CHCURC). Demolition of properties began in 2003, but litigation involving the owners of Acropolis Chili, Inn the Wood, and two fast food restaurants was not resolved until 2007, a year after the university withdrew its funding.

In 2008 Towne Properties became the project’s developer, and the long-vacant Hardee’s and Arby’s that had been the subject of eminent domain litigation were demolished that summer.

Renderings depicting a development similar to what is nearing completion in 2013 were published that fall, and the project was dubbed Uptown Commons in 2009. The project’s name changed again to U Square at the Loop in 2010 and construction began in 2012.

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Business News Politics

Cincinnati Expects New Semi-Automated Trash Collection System to Save Money, Prevent Injuries

The City of Cincinnati will phase in a new system of trash collection, over the next few months, that city officials believe will ultimately save taxpayer money, increase worker safety and improve its trash collection efficiency.

For most people trash collection is a matter of setting out a trash bin, either in front of a building or in an alley, and the next day city trash collectors come and haul the trash away. This will continue to the be standard practice as the city moves forward with its new system, but the way the trash collectors come and haul the trash away will change.

Instead of using manual labor, automated toters will be used to pick up trash from new larger trash bins. The new carts will be the same type of 65-gallon bins that are currently used for city recycling, which has been experienced better-than-expected success since being introduced in October 2010 in conjunction with RecycleBank.

Cincinnati Trash Carts
New trash carts have been received by the City of Cincinnati and will start being distributed today. Image provided.

“By implementing standardized trash carts, Cincinnati joins cities across America that have seen tangible benefits to modernizing their trash collection systems,” Cincinnati City Manager Milton Dohoney stated in a prepared statement.

Dohoney has been proposing ideas to modernize the city’s approach to collecting trash for several years in an attempt to reduce annual operating costs largely driven by worker injuries due to heavy lifting. City officials say that the new semi-automated system will eliminate the need for trash collectors to lift the trash cans, and thus improve overall safety.

Dohoney’s efforts over the past several years also included the proposal to levy a trash collection fee in order to help balance out the costs to operate the city’s large trash collection program. This proposal, however, went to the ballot box in November 2011 and voters banned the City of Cincinnati from being able to levy such a fee by a slight margin.

The new program enhancements will start rolling out today, and city officials say that more than 90,000 households are due to receive the new 65-gallon, black trash bins between now and August.

The trash bins will be delivered according to the day of trash pick-up with Mayor Mark Mallory (D) personally delivering the first one this morning to a homeowner in West Price Hill. Those with Monday trash pick-up should be receiving their new bins this month.

While city officials expect the new semi-automated system to save taxpayer money in the long-run, they also hope to experience even greater savings as they transition to one-person collection crews.

“Trash carts will help create a safer work environment, and that means we save taxpayers’ money by reducing costly injuries,” said Michael Robinson, Director of the Department Public Services. “They’re also going to help keep Cincinnati’s neighborhoods cleaner because of the attached lids and wind-resistance.”

Even though most residences will benefit from the new service, the City says that it will not be able to extend the new method to commercial and multi-family buildings with five or more units. In a response to a resident complaint, Larry Falkin, Director of the Office of Environmental Quality, explained that the change is due to multi-family buildings being run by either out-of-town property owners or by condominium associations that typically contract out for their own trash collection services.

“Many people want to receive services from government, and many people do not want to financially support government. Government can not increase services, or even maintain services, with declining revenues,” stated Falkin.

While the demands on manual labor will decrease as a result of the new system and transition to one-person crews, city officials note that those individuals will be transitioned to perform other city services.

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Business Development News Transportation

Cincinnati Proposes Eliminating Parking Requirements in Downtown and Over-the-Rhine

The City of Cincinnati will hold a public conference this evening about proposed amendment to the zoning code that would deregulate parking requirements throughout the center city.

According to city officials, the amendment would create new ‘Urban Parking Districts’ and remove the current regulations that mandate how many parking spaces must be provided for any new development or for any project that is modifying the use of an existing structure.

The efforts to get rid of the parking requirements throughout the center city have been ongoing for years.

In June 2010, city officials moved forward with new legislation that allowed for a 50% parking reduction for residences located within 600 feet of a streetcar stop. Then in March 2012, Vice Mayor Roxanne Qualls (C) introduced a motion, which was co-sponsored by six other council members, to eliminate all parking requirements throughout the Central Business District and Over-the-Rhine.

Over-the-Rhine
Over-the-Rhine’s existing historic fabric is at risk of further demolitions, due to current parking requirements, as investment continues to pour into the neighborhood. Photograph by Randy Simes for UrbanCincy.

Last March, UrbanCincy examined just how these off-street parking mandates are stifling growth and investment in the center city, which was largely built before the advent of the automobile. The requirements have led to not only increased costs for small businesses, but they have also led to an excess of parking in these neighborhoods.

The parking regulations also make it particularly difficult to redevelop smaller historic buildings like the ones found throughout Over-the-Rhine.

“Requiring parking for historic structures that have never had parking is incentivizing their demolition. This puts the property owner in a really difficult position; he must either find parking for the building, demolish it or let it languish in perpetuity.” Nashville city planner, Joni Priest, told UrbanCincy last March. “If a property owner wants to rehab an historic building – a building that marks the character of a neighborhood and contributes to the fabric of the city – all incentives, including the elimination of parking requirements, should be considered.”

Parking requirements have also contributed to the increased costs of redevelopment in these historic neighborhoods.

Last April, Chad Munitz, Executive Vice President of Development and Operations of the Cincinnati Center City Development Corporation (3CDC), estimated that existing parking mandates cost developers, on average, $5,000 for one surface parking space and $25,000 for a structured parking space. The increased cost associated with that parking, Munitz says, is then passed on to the consumer and raises the price of a residential unit by as much as $25,000.

The City of Cincinnati’s Planning & Buildings Department will host the public conference this evening at 5:30pm at Two Centennial Plaza, which is located at 805 Central Avenue downtown, and is well-served by a number of Metro bus routes (plan your trip). City officials say that the meeting will take place on the 7th floor, Suite 720 in the Martin Griesel Room A.

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Business News Politics

Roxanne Qualls Directs Administration to Develop Solar Financing Mechanisms

Cincinnati Vice Mayor Roxanne Qualls (C) put forth a motion last week that calls on the mayor’s administration to establish new financing mechanisms for expanding the city’s solar energy capabilities.

Qualls says that she hopes the City of Cincinnati can work with local organizations like Green Umbrella, Port of Greater Cincinnati Development Authority, and the Greater Cincinnati Energy Alliance (GCEA) to develop Property Assisted Clean Energy (PACE) financing.

When City Council approved the Green Cincinnati Plan in 2008 it included a target of installing solar energy on one out of every five rooftops, both residential and commercial, by 2028. Qualls believes that working with GCEA and Green Umbrella will be critical in establishing a viable solar rooftop program and facilitating power purchase or lease agreements for solar energy installations that will be critical towards reaching 2028 benchmark.

“These are steps we can take now to help to not only save money on our energy bills today, but to build a globally-competitive local green economy and a lasting green legacy for our children,” stated Qualls.

Cincinnati Zoo Solar Panels
The Cincinnati Zoo’s solar canopy is the largest publicly accessible urban solar array in the U.S. Image provided.

According to the vice mayor’s office, such a program would work by using third-party financing tools to overcome existing financial barriers for those interested in installing solar energy systems on their building. Similar programs are already in places around the nation, and Qualls believes a Cincinnati program could save consumers money on their utility bills, promote local jobs, and offer numerous environmental benefits.

“If Cincinnati adopted a goal to get 10% of its energy from solar by 2030, and just my small business met that demand, I’d have to hire 450 electricians tomorrow and keep them hired for the next 17years,” explained Matt Kolbinsky, Program Manager for SECO Electric.

The City of Cincinnati is already experiencing positive gains from its efforts to transition towards the use of green energy following the formation of an electricity buying group formed in 2012 that is now saving residential and small commercial users 23% on their monthly bills.

The electric supply contract put in place last April by the City also calls for 100% of the energy supply to be backed by Renewable Energy Credits. The move made the city one of the largest in the United States to do so, and earned it a spot as a finalist for the 2013 U.S. Earth Hour City Capital award.

The new motion, however, comes on the heels of a town hall meeting hosted by Xavier University’s Sustainability Committee, on the topic of solar energy, where more than 100 people attended. To capitalize on the momentum, Qualls has requested that the administration bring legislation on the matter back to council within 60 days.

“Cincinnati has all the right ingredients to go solar,” said Christian Adams, Clean Energy Associate for Environment Ohio who organized the town hall meeting last Tuesday. “From Findlay Market to the Cincinnati Zoo, the Queen City is leading the charge statewide for homegrown solar power and we can see that Cincinnatians are taking note of their city’s leadership on this issue.”

Green Umbrella has already established a Renewable Energy Action Team that has outlined how a residential solar rooftop program might work in Cincinnati, but the organization says that ongoing public feedback will be critical to future success.

“Building a solar powered Cincinnati is possible, but it will take all of us standing up to support these programs and calling for more,” Adams concluded. “Vice Mayor Qualls’ solar vision is striking a chord with Cincinnatians and people across the Queen City are waking up to the potential for a homegrown solar powered future right here in southwest Ohio.”