The Streetcar Project

By Wayne Lippert

This is a copy of a letter I wrote explaining my opposition to the proposed streetcar project

As you know, the Administration has scaled back the project in response to the loss of state funding so that it no longer reaches the Banks or Uptown. This change means the streetcar would not connect two of the largest job centers, throwing many of the economic development benefits into question. Keep in mind the original route only affected a small number of Cincinnati's 52 neighborhoods, and now it will impact an even smaller portion of our City.

In addition, the feasibility studies consistently point to certain successful streetcar systems throughout the United States, such as Portland, Boston, and Sacramento, but none of the studies I am aware of address any worst-case scenarios. While it is admittedly a different technology, Detroit's People Mover, for example, has ridership far below its capacity, and the system is highly subsidized by taxpayers. For every $0.50 ride, the city pays $2.50. From an academic standpoint, we need to also study systems that have not been successful so that we can learn from their mistakes. Our studies should not handpick and point to only the most successful streetcar systems. We need to evaluate the best and the worst cases so that we can make the best decision possible.

I still remain very concerned about the funding for the streetcar project. The Administration says it has secured $99.5 million dollars in funding and that the proposed route would cost $95 million plus the cost of relocating utilities. We understand, however, that Duke Energy's cost estimates vary significantly from the Administration's projections, and there has been little mention of the Greater Cincinnati Water Works or the Metropolitan Sewer District. If they incur costs where will this money come from? Will it be passed along to consumers or will the city be required to find another funding source? It is irresponsible for us to move forward on the project before we have an accurate accounting of expenses.

In my view, the operating plan is too speculative. The largest portion of the operating funds has been proposed to come from casino revenue, but it is uncertain how much money we will receive or when we will receive it. Construction was halted on our casino last week, which highlights the inherent instability of this funding mechanism. We do not have a solid operating plan + it's speculation based on unreliable sources of funding.

As a financial professional and fiduciary of city tax dollars, I cannot support this project with a clear mind. Our city's financial position is already precarious, and I do not want to see it get worse.