City Council approves streetcar plan, but UC connection requires $35 M

The issue of the Cincinnati streetcar initiative took another turn on Wednesday, April 23 as Cincinnati City Council voted 6-2 to construct tracks connecting the downtown, Over-the-Rhine and Uptown areas.

The initial $102 million phase - which would connect The Banks, Government Square, Fountain Square, the Aronoff Center for the Arts, Contemporary Arts Center, Findlay Market, Washington Park and Music Hall - would extend from Second Street downtown to McMicken Avenue in Over-the-Rhine, according to the City of Cincinnati streetcar presentation.

Phase two is the extension from Over-the-Rhine to the University of Cincinnati, which would require an additional $80 million to complete.

The city has already appropriated more than two-thirds of the funding via tax increment financing (TIF). TIF allows municipalities to promote economic development by earmarking property tax revenue from increases in assessed values within a designated TIF district, according to the Lincoln Institute of Land Policy.

In addition to TIF funds, the plan requires $31 million in private financing.

City Council also agreed to add a connector line between Over-the-Rhine, UC and Uptown hospitals, costing an additional $35 million in private financing.

"I think it's a good thing to do," said Garrett Uddin, a fourth-year communication student. "[The city's] renovating so much of downtown it would be another stepping stone for Cincinnati development."

City Manager Milton Dohoney said raising $31 million in private money was easier said than done. The addition of a connector line to the University of Cincinnati made the order "considerably taller," he said to council members.

The motion authorizes Dohoney to initiate fundraising strategies for private contributions.

City council cited success in cities such as Portland, Ore. Since the installation of a 4.2-mile loop in 2001, more than $2 billion in residential and commercial development materialized in surrounding areas, according to Development Oriented Transit, a 2006 report by Portland Streetcar Inc.

Finance Committee Chairman John Cranley contended the streetcar initiative is a misappropriation of city funds and funds should be spent elsewhere.

"If someone else wants to pay for it, if the federal government wants to pay for it, that would be fine," Cranley said.

Matthew Snell, a fourth-year political science student had similar views to Cranley.

"[The streetcar is] unneeded," Snell said. "The costs far outweigh the benefits. It's a flawed idea - spend that money on a more efficient bus system."

During a Feb. 25 hearing, Cranley questioned the use of tax increment financing, mainly over the diversion of funds from other projects.

A prime sponsor of the streetcar plan, Council member Chris Bortz, said other parts of the city would not be neglected.

"A very good argument can be made that this is better than a stadium or a park because this can be expanded and cover the entire city," Bortz said.

The plan aims to take advantage of the city's "new momentum," and "connecting investments to create a sense of place," according to the City of Cincinnati streetcar presentation.

"If we don't do something big, bold, challenging and new, we're going to have the same city, which is a city that has been struggling to put itself out of 50 years of decline," Bortz said.