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News Transportation

System Designs Unveiled, Operating Agreement Reached for Cincinnati Streetcar

Officials with the City of Cincinnati and Southwest Ohio Regional Transit Authority (SORTA) made several major announcements last week pertaining to the rollout of the Cincinnati Streetcar system.

While the design of the rolling stock and the system’s color scheme were revealed more than a year ago, the official branding for the new mode of transit for the Cincinnati region had not. SORTA officials say that the branding will be utilized all throughout the system including its fare cards, ticketing machines, uniforms, wayfinding, brochures, website and social media, and, of course, the trains and their stations.

The branding scheme was put together by Kolar Design, whose offices are located in the Eighth Street Design District just two blocks from the nearest streetcar stop, after competing with more than 100 other firms interested in the opportunity to developing the design scheme.

Project officials say that the $25,000 cost for the branding effort was paid for through Federal funds.

Founders Club Card Sales
At the same time, SORTA and City officials announced the availability of 1,500 Founders Club Cards. The sale of the cards, officials said, would help raise some initial funds to be used to help offset initial operating expenses.

Project officials have informed UrbanCincy that approximately half of the 1,500 cards were sold within the first 24 hours of going on sale; and that more than 1,000 had been sold by Friday. A limited number of Founders Club Cards are still available for purchase at the Second Floor Cashier’s Office at City Hall, Metro’s sales office in the Mercantile Arcade across from Government Square, and online at Metro’s website.

There are three card options available. The first goes for $25 and allows for unlimited rides for the first 15 days of service, which is currently pegged for 2016. The second and third options go for $50 and $100, and allow for unlimited rides for the first 30 and 60 days, respectively.

The commemorative metal cards and matching metal cases were seen by some as one of the first ways for Cincinnati Streetcar supporters to show their support. Having experienced strong sales thus far, it seems as Metro’s strategy may prove to be a success.

“This is one of the first tangible opportunities streetcar enthusiasts can show their support,” said City Councilwoman Amy Murray (R), Transportation Committee Chair. “This is a great idea that Metro has developed to generate excitement. I think many will appreciate the privilege of being a Founding Club Member with this commemorative card.”

Operating Agreement Finalized
Perhaps lost amid the other news was the signing of an official operating agreement. Under the current structure, the City of Cincinnati is building the system, and is its owner, but will contract out its operations to SORTA.

The Cincinnati Streetcar Operating & Maintenance Agreement first came out of Murray’s Transportation Committee and was approved 7-2 by City Council in early November. It calls for expanded on-street parking enforcement in Downtown and Over-the-Rhine until 9pm, an increase in parking rates in those two neighborhoods, and a set streetcar fare of $1 for two hours.

The agreement also utilizes an innovative technique that would lower property tax abatements 7.5%. This is an important component of the agreement as it addresses a longstanding call from opponents for those benefiting from real estate valuation increases to cover more of the costs of modern streetcar system. It also eliminates the need to utilize the Haile Foundation’s $9 million pledge, and would instead only tap into those funds in a worst-case scenario.

Project officials estimate that the system will cost approximately $3.8 to $4.2 million annually to operate, and that those costs would be covered by $1.5 million in additional on-street parking revenue in Downtown and Over-the-Rhine, $1.3 million from fares and advertising, and an estimated $2 million annually from the tax abatement reductions.

“This is the most innovative plan I’ve seen in the United States,” stated John Schneider, noted transit advocate and real estate developer, at the time of City Council’s approval in November.

The SORTA Board approved the agreement last week and touted the benefits of having operations of the Cincinnati Streetcar be handled through Metro, which also runs the region’s largest bus service.

In addition to the critical financing elements of the agreement, it also delineates various responsibilities once service goes into effect. To that end, the City of Cincinnati will be in charge of maintaining traffic signals, clearing blockages from the streetcar path, cooperation on utility interfaces, safety and security; while SORTA will be responsible for operating the system, maintaining vehicles and facilities, fare collection provision and maintenance, marketing and advertising sales.

Construction on the $148 million first phase of the Cincinnati Streetcar continues to progress, with most track work in Over-the-Rhine now complete and track work now progressing through the Central Business District. Current time frames call for operations to begin in September 2016.

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News Transportation

Support Continues to Grow for Daily Train Service Between Cincinnati and Chicago

Midwest Regional Rail ServiceOhio is surprisingly one of the nation’s least-served states by intercity passenger rail service, but All Aboard Ohio is working to change that.

Perhaps best well known for their fruitless advocacy for the 3C Corridor – an intercity passenger rail line that would have linked Ohio’s largest cities – All Aboard Ohio has regained relevancy as of late. While continually advocating for improvements on existing Amtrak service across the northern reaches of the state, the non-profit organization has also become increasingly involved with efforts to establish rail service between Columbus and Chicago, and Cincinnati and Chicago.

Columbus currently has no connections to the capital of the economically robust Great Lakes region, but Cincinnati does, albeit ever so slightly. As of now, Cincinnatians can get to Chicago via the scrappy three-day-a-week train service offered on Amtrak’s Cardinal Route. In addition to not being daily service, trains infamously arrive and depart in the middle of the night.

This is something, however, that area leaders and All Aboard Ohio officials are working to change. One potential example, they say, is to extend existing service offered on Amtrak’s Hoosier Route. The combination of Amtrak’s Cardinal and Hoosier routes offers Indianapolis daily service to Chicago. From there, the hope is to make gradual improvements to bring the service up to 110mph speeds.

“There is a buzz and excitement in southwest Ohio about connecting to Indy and Chicago that is palpable,” explained Derek Bauman, SW Ohio Director for All Aboard Ohio. “Even those that have not necessarily been fans of previous rail projects see the necessity of connecting to Chicago – the business and commerce epicenter of the U.S. between the coasts.”

The energy Bauman speaks of was recently seen at an area meeting held by All Aboard Ohio at the Christian Moerlein Tap Room in Over-the-Rhine. According to Ken Prendergast, Executive Director of All Aboard Ohio, such meetings are typically pretty dull, but this was not the case in Cincinnati.

“Our free local meetings are usually less extravagant than our statewide meetings, and are more akin to briefing or coordination gatherings,” Prendergast told UrbanCincy. “They generally only draw a dozen or two dozen people, so this meeting’s attendance was pretty good.”

All Aboard Ohio welcomed Cincinnati City Councilwoman Amy Murray (R) as their special guest. Over the past few months Murray has taken on a bit of a leadership role in the discussion about establishing daily rail service to Indianapolis and onward to Chicago. Her leadership has also come at a time when Hamilton County Commissioners, in a surprising fashion, voted unanimously in favor of studying the establishment of such service.

Bauman says that All Aboard Ohio has been working with the OKI Regional Council of Governments on a potential scope and funding plan for a feasibility study on the manner, following the unanimous vote from Greg Hartmann (R), Todd Portune (D) and Chris Monzel (R). He says that the group has also been meeting with local jurisdictions and business leaders to grow support even further.

“A big part of this is educating stakeholders on what our competitor regions throughout the Midwest are doing,” said Bauman. “For example, Detroit has three Amtrak roundtrips a day, Milwaukee has seven, St. Louis has five, and even Carbondale, IL has three. Simply put, we are being left behind.”

Some of that recent outreach has included both Hamilton and Oxford – communities that sit along the existing Cardinal Route and would be prime candidates for stops in a case where service is enhanced. To that extent, both communities, in addition to Miami University, have expressed their support for the effort. Now, according to Bauman, the next steps are to reach out to Xavier University and the University of Cincinnati.

“As we continue to work with business and government leaders toward establishing at least daily service to Cincinnati, coordinating with our regional institutions of higher learning will be a growing and vital piece of our advocacy partnership focus,” Bauman explained. “Bringing back proper inter-city rail services will be transformative for our region and positively impact the lives of people.”

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News Transportation

All Aboard Ohio Meeting to Provide Update on Cincinnati to Chicago Train Service

Amtrak TrainAll Aboard Ohio will be holding their quarterly Southwest Ohio meeting in Over-the-Rhine next week at the Moerlein Tap Room.

Organizers say that they will be updating members, and all in attendance, on the progress of recent activities to develop daily train service from Cincinnati to Chicago, by the way of Indianapolis. The effort is perhaps one of the nonprofit organization’s biggest efforts since the 3C Corridor was notoriously cancelled by Ohio Governor John Kasich (R).

What seems to be different about this effort, however, is the fact that there is bipartisan support from the onset, including a rare unanimous vote from Hamilton County Commissioners supporting the study of such daily service.

Another early advocate has been Cincinnati City Council Transportation Committee Chairwoman Amy Murray (R), who will also be the special guest at All Aboard Ohio’s meeting on Tuesday.

Derek Bauman, SW Ohio Director for All Aboard Ohio, also says that they will update everyone on the construction progress for the Cincinnati Streetcar.

It is all part of an effort, Bauman says, to get more people involved in the process, and engaged on these important issues.

“Since being elected to the board back in May, I’ve spent the summer and fall building advocacy for daily service from Cincinnati to Indianapolis and Chicago,” Bauman explained. “We have made some great progress, yet have a long way to go.”

Some of the other success, he says, can be seen in the 60 new All Aboard Ohio members from the Cincinnati area that have joined in recent months. It is a number he is pleased with, but hopes will grow even more. As a result, the meeting at Moerlein Tap Room will be open to anyone who wants to attend.

All Aboard Ohio’s SW Ohio quarterly meeting is free and open to the public, and will take place at 6pm on Tuesday, November 18 at the Moerlein Tap Room in Over-the-Rhine’s Northern Liberties district. The location is well-served by Metro bus service and has free bike parking readily available. There are also two Cincy Red Bike stations located within two blocks of the venue.

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News Transportation

Can Metro, Megabus Come to Terms on Moving the Intercity Bus Operator Into the Riverfront Transit Center?

Following the announcement last week that Megabus would relocate its downtown Cincinnati stop to a parking lot at 691 Gest Street in Queensgate, there has been a new round of public calls for the intercity bus operator to move its stop into the underutilized Riverfront Transit Center.

The move is just the latest in a series of moves after Megabus was forced out of its original stop at Fourth and Race due to construction taking place at Mabley Place, and complaints from neighbors about noise and loitering. Those complaints have since plagued Megabus as it has tried to find a new stop somewhere in the center city.

Perhaps the most troublesome complaint has been allegations of public urination at Megabus stops by their riders. As a result, city leaders have been looking for a more permanent stop location that includes public restrooms. This has led to a number of people to suggest Findlay Market and the Horseshoe Casino, near the existing Greyhound station, as possible locations.

But through all of this there appears to be a growing sentiment that the Riverfront Transit Center be used not only to accommodate Megabus, but all intercity bus operators serving Cincinnati.

“There is, of course, plenty of parking available, and riders can wait in a safe and secure enclosed area, out of the elements and with restrooms available,” stated Derek Bauman, urban development consultant and chairman of Cincinnatians for Progress. “Megabus will benefit by finally having a permanent home that was built for just this purpose.”

In addition to there being plenty of parking nearby, the Riverfront Transit Center, designed to accommodate up to 500 buses and 20,000 passengers per hour, also has plenty of capacity.

Beyond Megabus, there may be an even greater upside for other operators, like Greyhound and Barons Bus, to relocate into the Riverfront Transit Center.

“Greyhound could benefit by moving from and selling its current location near the casino, which would then be ripe for development as a hotel or other higher use. This would also save the company millions in capital dollars to fund needed upgrades and rehab of the current facility.”

As has been noted by Vice Mayor David Mann (D), someone who has served as a leader on trying to find a solution to this problem, there are difficulties with getting Megabus and others into the transit center neatly tucked beneath Second Street.

The Riverfront Transit Center is technically owned by the City of Cincinnati and operated by Metro, which uses the facility Metro*Plus layover, special events and leases some of its east and west aprons for parking. According to transit agency officials, these operations generate approximately $480,000 in annual revenue and net roughly $170,000 in annual profit for Metro.

Therefore, any new operators or changes to this structure would not only present logistical issues, but also potentially negatively affect Metro’s finances unless new revenues are collected – something Megabus has not been particularly keen of thus far.

“It’s our understanding that Megabus pays a fee to share transit facilities in other cities,” Sallie Hilvers, Metro’s Executive Director of Communications, told UrbanCincy. “As a tax-supported public service, Metro would need to recover the increased costs related to maintenance, utilities, security, etc. from Megabus, which is a for-profit company.”

Hilvers also stated that while Metro is open to the idea, that there would also be some legal and regulatory issues that would also need to be addressed.

Nevertheless, the Riverfront Transit Center seems to be the logical place to consolidate intercity bus operators. The facility is enclosed, includes bathrooms, waiting areas, is centrally located and within close proximity to other transportation services such as Government Square, Cincinnati Streetcar and Cincy Red Bike.

“Welcoming visitors to Cincinnati at the RTC at The Banks showcases our city and is much more welcoming than a random street corner in Queensgate outside of downtown,” Bauman emphasized. “This just makes sense, it’s as simple as that. Everyone involved should continue do whatever is necessary to come to an agreement and make it happen.”

EDITORIAL NOTE: Cincinnati Vice Mayor David Mann (D) did not respond to UrbanCincy‘s request for comment on this story.

Categories
Business Development News

Cincinnati Gentrified at One of Nation’s Fastest Rates Immediately Following Housing Boom

During the housing boom years between 2000 and 2007, many cities saw an influx of new housing and new wealth into their core neighborhoods. It was a trend that was consistent throughout America as wealthier individuals looked to move back into the cities that had been abandoned in prior decades.

This trend was more pronounced in some cities – Atlanta, Washington D.C., Denver, and Seattle – than others. But for the most part, the majority of the cities were gaining wealth relative to their regional average. Following the burst of the housing bubble, however, virtually every city saw this rate of improvement slow down.

According to research from the Federal Reserve Bank of Cleveland, the majority of 59 cities studied now fall between either a one percentile decline or one percentile increase between 2007 and 2010. This is in contrast to the housing boom period which saw cities like Atlanta and Washington D.C. move up 8.7 and 5 percentiles respectively.

“During the housing boom, a number of large cities in the United States experienced redevelopment in their lower-income neighborhoods as higher-income residents moved in, a process known as gentrification,” wrote researcher Daniel Hartley. “Since lending standards have tightened with the onset of the housing bust and the financial crisis, we wondered whether gentrification has continued after the recession in places where it was happening before.”

The results of their research found that only a select handful of regions reasonably continued to see relative wealth growth in their principal cities. The findings also detected one region that bucked the trend and actually increased its gains over the housing boom period.

“Another interesting case is Cincinnati, which barely changed in income ranking from 2000 to 2007 but has increased at a pace similar to Denver or Washington during the 2007 to 2010 period,” the research team noted.

Hints of such activity were realized in December 2013 when UrbanCincy uncovered that census tracts all over the city were experiencing wealth increases.

While the gains in wealth may seem like a positive thing for the city, not everyone is so thrilled about the changes taking place in Cincinnati.

“It seems to me what this information really indicates is how, when people experiencing poverty are systematically removed from a certain area, and housing stock is renovated with the goal of selling to wealthier people, property values increase,” says Jason Haap, an area teacher and prominent advocate for the city’s homeless population. “The fact that Cincinnati has seen gentrified growth during a time of slow economic growth in minority communities further exacerbates the situation.”

One of the tools in order to prevent the displacement Haap mentions from happening is including ‘set asides’ in new developments for affordable housing. The Cincinnati Center City Development Corporation (3CDC) has done this a bit in Over-the-Rhine at projects like Mercer Commons and Bremen Lofts, but there is no official city policy or requirement to do so.

What also factors into the relative changes studied by the Federal Reserve Bank is the widespread poverty and low income levels of those living within city limits. Thus, even nominal improvements would show up as a potentially significant increase.

We do know, however, that some housing prices, particularly in the city center where demand is highest, are starting to get out of hand. Most new apartment developments in the Central Business District now feature rents of $2,000 or more per month, and in one recent case, a three bedroom flat on Sixth Street rented for a whopping $4,600 per month.

In such cases it is leaving many now wondering if these prices are not only driving out existing residents but, paradoxically, also preventing many new potential residents from moving in.

“Demand in Cincinnati’s core is insatiable, and supply is only coming online at a trickle,” explained Derek Bauman, an urban development consultant and chairman of Cincinnatians for Progress. “Without urban housing supply, we may miss the coming wave of new residents. At nearly $2 per square-foot rents and $250-$300 a square-foot sales, we may not have Manhattan prices yet, but we’re damn near Brooklyn.”