Streetcar Project Status: January 2013

This message is a guest post from the City of Cincinnati

There’s been much progress on the Cincinnati Streetcar project in the past few months.

Here are some details about what’s been accomplished and what’s upcoming:

Design

Final design for the entire 2^nd Street to Henry Street route was completed in September 2012.

While final design for the 5^th to Henry route was completed in late 2011, the announcement of a $10.92 million TIGER 3 grant from the US Department of Transportation (USDOT) in December 2011 enabled the extension of the route to The Banks at 2^nd Street and required additional design work to be completed before the project could go to bid. That work culminated in September 2012, with the completion of final design for the entire 2^nd to Henry route, including all trackwork, traction power, project-performed utility work, and the maintenance and operations facility (MOF).

Construction Procurement

With the completion of final design and real estate acquisition, the City issued a Notice of Invitation to Bid for the general construction of the streetcar system on November 15, 2012. Bids are due on February 8, 2013 and a pre-bid meeting was held on December 12, 2012. Over 60 vendors attended the pre-bid meeting and over 80 vendors have requested copies of the bid documents from the City Purchasing Division, indicating a high level of interest from the contracting community.

Vehicle Procurement

In October 2012, the City completed the FTA-required pre-award Buy America certification for CAF USA, the selected streetcar vehicle manufacturer, and following contract negotiations, executed a contract with CAF USA in December 2012 to purchase five modern streetcars. In November 2012, the City also selected LTK Engineering through an RFP procurement for a vehicle project management consultant. The City is in the contract negotiations with LTK and will execute a contract in January 2013 for assistance with oversight of the streetcar vehicle production.

Real Estate Acquisition

In September 2012, the City executed a Purchase and Sale Agreement to acquire the site of the MOF for the streetcar system, located at the corner of Race and Henry Streets at the northern end of the Phase 1 route. The City closed on the property in November 2012.

Permitting

Following the completion of final design and the acquisition of the MOF site, the City received approval from the City’s Historic Conservation Board for demolition activities and construction of the MOF in October 2012. This approval enabled the City to apply for the general building permits required to construct the project.

Utilities

Third party agreements with Greater Cincinnati Water Works (GCWW), Metropolitan Sewer District of Greater Cincinnati (MSDGC), Level 3 Communications, and Cincinnati Bell were all completed in 2012. In February of 2012, GCWW began construction on relocation of water lines in Over-the-Rhine. This work has progressed throughout 2012 and is expected to be complete in early 2013. MSDGC, Cincinnati Bell, and Level 3 Communications are in the process of obtaining construction permits from the City and are planning to begin their respective relocation work in early 2013.

The City continues to meet regularly with Duke Energy in order to commence Duke’s relocation work.

Remaining utility relocation work, including additional MSDGC relocation and GCWW relocation in the Central Business District (CBD) will be performed by the project as part of the general construction contract currently out to bid.

Grants

The City and SORTA completed execution of the TIGER 3 grant agreement with the Federal Transit Administration (FTA) and USDOT in December 2012. With this action, all federal grants for the project have been fully committed.

Expenditures to Date

Through December 31, 2012, approximately $42 million has been spent. This number represents approximately $17.1 million in expenditures already paid out, as well as approximately $24.9 million in expenses that the project is contractually obligated to fulfill.

 

Inaccuracies in Enquirer Editorial

This message is a guest post from the City of Cincinnati

For those who have read the Cincinnati Enquirer’s Sunday Editorial, “Streetcar: Stop,” there are quite a few inaccuracies surrounding the financing plan and operations plan.  Please help us spread the correct information.

The Enquirer wrote: “The budget now plans for $14 million to come from a pool of money created by tax revenue generated by property improvements to The Banks.” This is wrong.

The editorial refers to what’s commonly called a Tax Increment Financing (TIF) district. The plan had always been for part of the streetcar financing to come from the Downtown South/Riverfront TIF District — this is nothing new.

And $11 million will still come from the Downtown South/Riverfront TIF District, but not The Banks — The Banks project generates its own revenue that goes back into The Banks.

Rather, the City has changed the source of funds for repaying $14 million of the $25 million in notes issued as part of the original financing proposal for the streetcar project.

The substitution source for the $14 million is the Urban Redevelopment Tax Increment Equivalent Fund, which was established in 1995 to collect service payments from the Westin/Star, Hyatt and Saks. This fund was not currently committed to any project. The City’s Finance Department will commission a study to determine the current valuation of the Downtown South TIF, but because we need to issue the bonds, we will use this as the source in the interim.

When the Downtown South TIF District rebounds because of growth projects both within and surrounding the district — like the Casino, The Banks, Dunnhumby, Omnicare and the Streetcar — the City will look at the Downtown South TIF District as a funding source once again.

Projects the Enquirer referred to that need funding such as a police district on the West side and the Smale Riverfront Park were already passed by Council in June and are happening.

The Enquirer wrote:  “Mayor Mallory and City Manager Dohoney are counting on growth and development along the streetcar route to cover the $3 million or more each year that it costs to operate it.” This is patently wrong.

The City has publicly said again and again that the operating costs will come from sponsorships, fare box revenue and up to $3 million of casino revenue. Even baseline projections show that the casino will generate that and is a viable source precisely because property valuations lag actual investment.

 

 

 

Studies and Reports on the Cincinnati Streetcar

There have been numerous studies, presentations, and reports on the Cincinnati Streetcar that explain why streetcars are good investment for the City of Cincinnati.  Here are the links to these documents:

HDR- Cincinnati Streetcar Feasibility Study

HDR- Cincinnati Streetcar Economic Impact Study

HDR- Cincinnati Streetcar TIGER II Benefit to Cost Analysis

Cincinnati Streetcar Environmental Assessment

Appendices to Environmental Assessment

University of Cincinnati Streetcar Study Evaluation

City of Cincinnati Streetcar Presentation

City of Cincinnati Climate Action Plan (pg. 52)

Growth and Opportunities Study of the City of  Cincinnati (pg. 61)

Agenda 360 (pg. 20)

Over The Rhine Green Preservation Study

Letters of Support for the Streetcar

 

Covington and Newport Pass Resolutions in Support of the Cincinnati Streetcar

In March, Covington and Newport passed this joint resolution supporting the Cincinnati Streetcar and expressing a desire to extend the Streetcar into Northern Kentucky.  The text of this resolution has been reproduced here for those new to this site.

Newport, KY

The text of the joint resolution with Newport:

WHEREAS, the Cities of Covington and Newport, Commonwealth of Kentucky (Cities) recognize that a strong and economically vital center city is necessary to support a strong and economically vital region, and that the City of Cincinnati’s proposed Streetcar Plan will bring new development, economic vitality, and greater connectivity between any of the region’s exciting cultural institutions; and

WHEREAS, the Cities understand the magnitude of such an investment requires a staged phasing approach that develops and initial critical mass of ridership and development activity within the center city neighborhoods of Cincinnati, and also understands that the system anticipates future extensions into other neighborhoods including Covington and Newport, to create improved mobility and connectivity throughout the region; and

WHEREAS, the Cities recognize the role Streetcars have in encouraging and supporting the exciting, authentic, “walk able” urban neighborhoods desired by talented young professionals, and that these neighborhoods are critical to the region’s success in competition globally for these talented people, both as residents and workers; and

WHEREAS, the Cities endorse and support the Cincinnati Streetcar Plan, its anticipated goals and outcomes, and the phases approach to bringing the benefits of the Streetcar to the region’s center city communities.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF COVINGTON, KENTON COUNTY, KENTUCKY:

Section 1: That the Cities enthusiastically approve the efforts of Cincinnati to develop and implement the Cincinnati Streetcar Plan, and offer their support toward the timely implementation of the Streetcar Plan.

Section 2: That this order/resolution shall take effect and be in full force when passed and recorded according to law.

Passed: 3/24/09

Covington, Kentucky

 

Urban Evolution: The Cincinnati Streetcar

 

Video: Milton Dohoney on the Cincinnati Streetcar

 

Rain, Rain…

It feels like it hasn’t stopped raining all week.  It would be great to be able to hop on a streetcar to get out of the rain on your way to lunch, a meeting, or to return materials to the library.

 

New Streetcar T-Shirts Available in Gameday Colors

Following the initial success of the Cincinnati Streetcar T-shirts, a fourth run of the shirts has been produced.  These shirts feature ‘gameday’ colors of either red with a black logo or black with an orange logo.  “These shirts are the perfect way to show your support for the Cincinnati Streetcar and your favorite team” says Brad Thomas, founder of Cincystreetcar.com. The new shirts are available at Market Wines in historic Findlay Market located at 128 W. Elder Street open Tuesday through Sunday all year round.