Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous...

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Ohio Department of Transportation Central Office • 1980 West Broad Street • Columbus, OH 43223 Ted Strickland, Governor Jolene M. Molitoris, Director An Equal Opportunity Employer August 23, 2010 Honorable Ray LaHood, Secretary U.S. Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590 Subject: Letter of Support for TIGER II Grant Application for the Cincinnati Streetcar Project Dear Secretary LaHood: In Ohio, our investments in transportation are putting Ohioans back to work and getting our economy moving again. To build upon a historic transformation in our multimodal transportation system, I write to you to share my support for Ohio’s TIGER II Grant application for the Cincinnati Streetcar Project. The Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation alternatives for Cincinnati residents. It will serve to revitalize and improve upon the quality of life in some of Cincinnati’s most distressed center city neighbor hoods. The Cincinnati Streetcar project will serve as a new fixed rail transit option that will establish a crucial link in support of the rising number of urban core residents. It will expand the walkable area if downtown and its adjacent neighborhoods, providing visitors and residents with increased pedestrian access to workplaces, housing options, major regional attractions, and education, civic, and health care institutions. The Ohio Department of Transportation and the City of Cincinnati are seeking TIGER II funds to purchase seven modern streetcars and construct five miles of track and electrification system. A feasibility study estimated that the Cincinnati Street would generate an estimated $1.4 billion in redevelopment of vacant and underutilized properties in the corridor. The City of Cincinnati is in position to implement this project quickly, and has assembled a unique implementation team of national recognized engineering and design leaders joined with local small and minority –owned companies that reflect the best in local, national, and international expertise. I appreciate your support of the major project for Ohio and your continued partnership as we work together to support our position as a premier logistics and transportation location. Respectfully, Jolene M. Molitoris Director

Transcript of Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous...

Page 1: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

Ohio Department of Transportation Central Office • 1980 West Broad Street • Columbus, OH 43223

Ted Strickland, Governor • Jolene M. Molitoris, Director

An Equal Opportunity Employer

August 23, 2010  Honorable Ray LaHood, Secretary U.S. Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590  Subject: Letter of Support for TIGER II Grant Application for the Cincinnati Streetcar Project  Dear Secretary LaHood:  In Ohio, our investments in transportation are putting Ohioans back to work and getting our economy moving again.  To build upon a historic transformation in our multi‐modal transportation system, I write to you to share my support for Ohio’s TIGER II Grant application for the Cincinnati Streetcar Project.  The Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation alternatives for Cincinnati residents.  It will serve to revitalize and improve upon the quality of life in some of Cincinnati’s most distressed center city neighbor hoods.  The Cincinnati Streetcar project will serve as a new fixed rail transit option that will establish a crucial link in support of the rising number of urban core residents.  It will expand the walkable area if downtown and its adjacent neighborhoods, providing visitors and residents with increased pedestrian access to workplaces, housing options, major regional attractions, and education, civic, and health care institutions.  The Ohio Department of Transportation and the City of Cincinnati are seeking TIGER II funds to purchase seven modern streetcars and construct five miles of track and electrification system.  A feasibility study estimated that the Cincinnati Street would generate an estimated $1.4 billion in redevelopment of vacant and underutilized properties in the corridor.  The City of Cincinnati is in position to implement this project quickly, and has assembled a unique implementation team of national recognized engineering and design leaders joined with local small and minority –owned companies that reflect the best in local, national, and international expertise.  I appreciate your support of the major project for Ohio and your continued partnership as we work together to support our position as a premier logistics and transportation location.  Respectfully, 

 Jolene M. Molitoris Director 

Page 2: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

Cincinnati Streetcar TIGER II Application

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Cincinnati Streetcar TIGER II Grant Application

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Cincinnati Streetcar TIGER II Application At-a-Glance

Project Name: Cincinnati Streetcar Applicant: State of Ohio What: Purchase of 7 modern streetcars and construction of 5 miles of track and electrification system Where: Urban core of Cincinnati, Ohio – Downtown, Uptown, and Over-the-Rhine Congressional Districts: Ohio 1st and 2nd Congressional Districts Cost: $128 million (2010$) TIGER II Request: $35 million (27.3% of total)

Why is this Project the Best Choice for a TIGER II Grant?

State of Good Repair

Over the lifecycle of the project, pavement maintenance savings total $14.7 million.

Economic Competitiveness

Improves the efficient mobility of the Cincinnati workforce by reducing travel-time and out-of-pocket costs for travelers. General travel cost savings total $2.3 million in the opening year and $39 million over the lifecycle of the project.

Increases the economic productivity of the land by turning vacant and underutilized parcels into tax generating assets. Development of vacant lots: up to 7.4 million sq ft of new office/retail over 50 years, and up to an additional 10,700 housing units, at an average annual value added/year of $112 million. Redevelopment of vacant buildings: up to 1,135 new housing units over 15 years, at an average annual value added/year of $32 million.

Livability

Connects with all major transportation modes, enabling a car-free lifestyle in the heart of the city. The project results in a vehicle operating cost savings of $1,847,885 for the community.

Improves accessibility within economically disadvantaged neighborhoods for non-drivers, seniors, and persons with disabilities.

Restores traditional neighborhood density, improving walkability and quality of life through transit-oriented development in accordance with community-driven neighborhood planning efforts.

Sustainability

Reduces vehicle miles traveled by over 33 million miles over the lifecycle of the project.

Saves 1.1 million gallons of gasoline.

Reduces carbon dioxide emissions by 13,000 tons per year.

Job Creation

The project is expected to generate between 1,356 (CEA) and 2,157 (IMPLAN) job-years during the development phase alone.

The project is also expected to create $172.2 million in value added, including $115.1 million in labor income (IMPLAN estimates).

Innovation

“Integrated Design, Finance and Construction Delivery” method is the first of its kind in Ohio.

Local financing is backed by proceeds from sale of City-owned airport, and mechanisms to capture the value of economic development (Tax Increment Finance District).

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Table of Contents

Cincinnati Streetcar TIGER II Application At-a-Glance ............................................. i

1 Project Description .......................................................................................... 1

2 Project Parties ................................................................................................. 3

3 Grant Funds and Sources/Uses of Project Funds.............................................. 3

4 Selection Criteria ............................................................................................. 5

4.1 Long Term Outcomes ...................................................................................................... 5

4.1.1 State of Good Repair ............................................................................................................... 5

4.1.2 Economic Competitiveness ..................................................................................................... 6

4.1.3 Livability .................................................................................................................................. 8

4.1.4 Environmental Sustainability ................................................................................................ 11

4.1.5 Safety ..................................................................................................................................... 13

4.1.6 Evaluation of the Project’s Forecast Benefits and Costs ....................................................... 13

4.2 Job Creation and Economic Stimulus Analysis .............................................................. 15

4.3 Innovation ..................................................................................................................... 18

4.4 Partnership .................................................................................................................... 18

5 Project Readiness & NEPA ............................................................................. 19

6 Federal Wage Rate Certification .................................................................... 22

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1 Project Description

The City of Cincinnati has identified streetcar transit as an essential investment for leveraging private

dollars, spurring redevelopment, improving accessibility and modal connectivity, and forging a new,

sustainable path for community development. The Cincinnati Streetcar Project will transform the City’s

urban core by reconnecting the Central Business District to two redeveloping neighborhoods just north

of Downtown: Over-the-Rhine (OTR), a low-income, minority community; and Uptown, the region’s

second largest employment center. With the streetcar as its central link, Cincinnati’s core will grow into

a more walkable, livable and affordable community with a healthy mix of land uses, housing units and

income groups.

Problem Statement

Historically, the City’s topography and prior streetcar service produced compact neighborhoods with

high residential densities and walkable business districts. In recent years, however, the fates of the

target neighborhoods have been mixed. Downtown hosts six Fortune 500 companies and 70,000

workers, yet has only 3,200 residents, and acres of land remain underutilized as parking lots. Just to the

north, OTR has become one of Cincinnati’s most impoverished neighborhoods, with a high

concentration of affordable housing and social services. The 6,600 residents in OTR have a median

household income of just $8,343. Home to the nation’s largest surviving collection of 19th century

Italianate architecture, more than a third of its 1,400 buildings lie vacant. In nearby Uptown, the

University of Cincinnati anchors an educational and medical center with 60,000 employees and 35,000

students. The area is also home to several regionally significant hospitals, the second largest EPA

research facility in the country, and the Cincinnati Zoo and Botanical Gardens. In recent years the

Uptown Consortium (Cincinnati Children's Hospital Medical Center, Cincinnati Zoo & Botanical Garden,

The Health Alliance of Greater Cincinnati, TriHealth, Inc. and the University of Cincinnati) has invested

hundreds of millions of dollars on redevelopment in the Uptown area for housing (both student and

market rate), retail, and high tech office. There are currently four revitalization projects in process,

valued at more than $200 million.

The streetcar will reconnect these commercial, residential and institutional districts into a unified core.

Residents will enjoy strengthened transit access to jobs in Downtown and Uptown. Residents, visitors,

students and workers will also use the streetcar for lunch, dinner or social activities, business meetings,

shopping, groceries, nightlife, and major destinations. Spurred by this new investment, developers will

orient new, mixed-use projects towards the alignment, bring new jobs and restore an integrated urban

fabric that encourages walking for local destinations. The streetcar will increase the competitive

advantage of the central city by making it much more convenient and practical for users to drive to work

or other locations, “park once” and use the streetcar circulator for other trips. As a result of the

streetcar, Cincinnati’s central area will flourish as a walkable, sustainable and affordable core.

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Figure 1: Proposed Alignment and Points of Interest Alignment

The alignment, Main/Walnut to Elm/Race,

runs northbound on Main Street in the

Central Business District (CBD), and

connects to Over-the-Rhine (OTR)

westbound on 12th Street to northbound on

Elm Street to eastbound on McMicken and

southbound on Race Street to eastbound on

Central Parkway to southbound on Walnut

Street into the $600M Banks riverfront

development connecting eastbound on the

newly-constructed Freedom Way to Main

Street in front of the Great American Ball

Park. A connector will serve Uptown, the

second largest employment center in the

region and home to the University of

Cincinnati, several major research and

hospital institutions, and the Cincinnati Zoo

& Botanical Garden.

This alignment provides access to the core

of the office market in the CBD. The

alignment also connects the majority of the

major destinations and residential areas in

the urban core. Beginning at the Great

American Ball Park on the south, in the

midst of the Banks redevelopment site, the

streetcar connects these destinations to the

restaurants and shops in the core of

Downtown. It provides direct access to the Aronoff Center for the Arts, the Contemporary Arts Center,

and the emerging arts corridor in OTR, one of Cincinnati’s most economically disadvantaged

neighborhoods. The art venues with direct access in OTR include the Art Academy, the Know Theatre,

the Ensemble Theatre of Cincinnati, the future home of the Cincinnati Public Schools’ School for the

Creative and Performing Arts, Memorial Hall, and Music Hall. The alignment also provides access to the

redeveloped Findlay Market and the Gateway Corridor redevelopment area (an $80M public-private

collaboration) centered on 12th Street and Vine Street in OTR.

The Cincinnati Streetcar project consists of the following elements:

Track: The alignment requires 4.9 miles of one-way track (3.9 miles in the Downtown/OTR loop, and a 1

mile connector to Uptown), plus another 0.8 mile of track to access the streetcar storage and

maintenance facility.

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Transit Vehicles: Seven modern streetcars will serve the alignment according to the operating plan and

service levels. Vehicle specifications were based on the Inekon/Skoda vehicle used in Portland, Oregon,

which has capacity for up to 40 seated passengers.

Stations/Stops: The project includes placement and construction of 18 streetcar stops (roughly every

two blocks) including platform and shelter for the comfort and safety of passengers. The project

includes construction of ADA-compliant sidewalks and appurtenances.

Frequency of Service/Hours of Operation: The Streetcar feasibility study outlined service seven days per

week, averaging 18 hours of service per day. The streetcars will operate every 10 minutes during peak

travel time, and every 20 minutes in the off peak. These daily and hourly schedules can be adjusted

based on demand, for example, during festivals or sporting events.

Maintenance/Operations Facility: A yard and small service facility will be constructed for streetcar

maintenance and ongoing system operations. Two locations are currently under study: Henry Street

between Race Street and Elm Street (near Findlay Market), and Broadway Street at Second Street. Both

locations are large enough to service a doubling of the streetcar system in the future.

2 Project Parties

The City of Cincinnati is a municipal corporation serving its 330,000 citizens with public safety,

sanitation, public utility, economic development, public health, transportation, and infrastructure

management services.

Cincinnati Streetcar Development Partners

The City of Cincinnati has assembled a unique team to finance, design, build and operate the streetcar:

Parsons Brinckerhoff – Engineering design and project management

HDR – Engineering design

Stacy and Witbeck – Construction

PNC Bank – Financial planning

DNK Architects – Architecture

In addition, Southwest Ohio Regional Transit Authority (SORTA), the region’s transit operator, will serve

as the pass through for FTA funds involved in the project and as a partner in developing the operating

plan for the system.

3 Grant Funds and Sources/Uses of Project Funds

Through various sources, including value-capture mechanisms, the City will finance more than 50

percent of the capital cost of the project. The City of Cincinnati seeks $35,000,000 in TIGER II grant

funding to fill a gap in the overall project financial plan. In the past year, many parties have joined as

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financial partners, representing a diversity of federal, state, and local funding. Table 1 provides a

summary of the funding sources and amounts for each. A description of each source of funding follows.

Ohio Department of Transportation: The Ohio DOT pledged $15 million in Congestion Mitigation/Air

Quality Improvement (CMAQ) program funding to the streetcar project.

Ohio-Kentucky-Indiana Regional Council of Governments: OKI, the metropolitan planning organization

for the region, has committed $4 million in CMAQ funding to the streetcar project.

City of Cincinnati Tax Increment Financing (TIF) Districts: The Cincinnati Streetcar runs through three tax

increment financing (TIF) districts established

under Ohio law. TIF districts are a way to capture

the value of transportation projects on real

estate; TIF districts function by capturing all or a

portion of the incremental property tax revenue

that is generated by property value increases

related to a transportation investment. Cincinnati

City Council has authorized the sale of City bonds

backed by this revenue stream to provide local

funding for the project.

City Capital Improvement Funding: Cincinnati City

Council has authorized the sale of City capital improvement program bonds to provide local funding for

the project.

City of Cincinnati debt supported by Blue Ash Airport Sale: Cincinnati City Council has authorized the sale

of City bonds backed by revenue generated from the sale of its interest in a City-owned airport provide

local funding for the project.

Duke Energy: Duke Energy, the local electric and gas utility, has recognized the transformative

economic development potential offered by the Cincinnati Streetcar and has contributed $6.5 million to

the project.

Federal Transit Administration (FTA) Urban Circulator Grant: Earlier in 2010, the FTA awarded the

Cincinnati Streetcar project $24.99 million through an Urban Circulator Grant.

Federal TIGER II Grant (requested): A TIGER II grant of $35 million will allow construction of Phase I of

the Cincinnati Streetcar to proceed and position the project to begin planning for Phase II. This grant

would fund construction of the downtown loop/uptown connector alignment, a system with

independent utility, and position the City to continue planning work on Phase II, a circulator in the

Uptown area. Phase I construction is scheduled to begin in fall 2010.

Uses of Grant Funds

The Cincinnati Streetcar project is being managed through a Construction Management/General

Sources of Funding Amount % of TPC

City of Cincinnati $42,510,000 33.2%

Duke Energy $6,500,000 5.1%

OKI - CMAQ $4,000,000 3.1%

State of Ohio TRAC/CMAQ

$15,000,000 11.7%

FTA Urban Circulator $24,990,000 19.5%

TIGER II Request $35,000,000 27.3%

Total Sources $128,000,000 100.0%

Table 1: Sources of Funding

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Table 2: Uses of Funding Contracting (CMGC) procurement, with the CMGC

team composed of engineers and an experienced

rail transit contractor, Stacy and Witbeck, Inc. In

this CMGC arrangement, the designer, contractor

and city are partners in the design of the project,

which allows the contractor to provide money-

saving suggestions in the design phase. All cost

estimates are open-book; when the project

reaches a 90 percent plan completion stage, the

contractor will provide the city with a final “not to

exceed” bid for the project.

Project plans are currently at about a 30 percent

design level. Table 2 provides the current cost

estimate by phase and major construction items.

4 Selection Criteria

4.1 Long Term Outcomes

As a point of departure for estimating project benefits, the Cincinnati Streetcar project underwent a

rigorous feasibility study to estimate the primary and secondary impacts of streetcar development,

based on experiences from around the country. The long-term development benefits that will be

created by the Cincinnati Streetcar cannot be understated. The Cincinnati Streetcar will serve as a

catalyst for transit-oriented redevelopment, returning vibrant streetscapes, diversity, and high density

to neighborhoods that have suffered from poverty, blight, and under-investment.

4.1.1 State of Good Repair

The Cincinnati Streetcar will improve and expand the suite of transportation options available to

Cincinnati residents by reintroducing fixed rail transit to the urban landscape. The system will improve

the mobility of people between employment and housing opportunities through “Over the Rhine”

(OTR), a historically dense neighborhood that originally developed around streetcars. By bringing fixed

rail transit and the benefits of transit-oriented development back to OTR, the streetcar will improve the

condition of not only the transportation infrastructure in the area, but help bring the surrounding

neighborhood into a state of good repair by catalyzing redevelopment of vacant buildings and declining

neighborhood assets.

The streetcar will expand and upgrade the range of transit modes available to Cincinnatians, connecting

with the Riverfront intermodal facility currently under construction, existing bus service, and planned

intercity passenger rail service between Cincinnati, Columbus, and Cleveland (the 3-C Corridor). The

streetcar is included in the region’s Transportation Improvement Plan (TIP) and will be included in the

most recent amendment to the State Transportation Improvement Plan (STIP). In addition, the streetcar

Uses of Funding Amount

Environmental $ 0.451 million

Engineering $9.0 million

Construction Inspection $6.75 million

Rail Procurement $ 2.0 million

Utility Relocation $ 5.0 million

Signal Modifications $ 3.9 million

Track Construction $ 46.7 million

Streetcar Stops $ 1.35 million

Traction Power $ 16.1 million

Vehicle Procurement $ 28.7 million

Maintenance Facility $ 4.0 million

Contingency @ 5% $3.9 million

Total: $128 million

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is an integral part of OKI’s Long Range Plan and at least 13 other regional planning efforts over the past

12 years.

The City is currently partnering with the Southwest Ohio Regional Transit Authority (SORTA) to

seamlessly integrate the streetcar with SORTA - operated bus service and planned transit facility

improvements, including a University Transit Hub in the Uptown area. The Cincinnati Streetcar project is

very well capitalized. The City is partnering with SORTA on a sustainable long-term operating cost plan

that draws on sponsorships, fare revenue, special assessments, and City revenue.

The streetcar project is expected to improve existing roadway conditions by reducing demand for other

form of motorized vehicles. This benefit is monetized into pavement maintenance cost savings. Daily

ridership for the streetcar is projected at 6,640 in the first year of operation (2013), with 11,427 daily

riders by 2032. This ridership translates to an annual reduction in Vehicle Miles Traveled (VMT) of

1,257,186 and a pavement maintenance savings of $1,026,000, in the opening year. Over the lifecycle

of the project, pavement maintenance savings total $14,718,000.1

4.1.2 Economic Competitiveness

More Efficient Mobility

For the proposed streetcar project, increases in productivity would arise through improvements in

workers’ mobility. The Cincinnati Streetcar will improve the efficient mobility of the Cincinnati

workforce by reducing travel-time, and out-of-pocket costs for travelers. Travelers who remain auto

users after streetcar operations begin experience a reduction in travel-time as a result of less

congestion. These savings can be combined with savings attributable to a reduction in out-of-pocket

travel costs. The benefits of these general travel cost savings total $2.3 million in the opening year and

$39 million over the lifecycle.2 Travel time savings lead to productivity improvements for business

travelers and commuters. In addition, congestion relief and improvements in travel time reliability help

shippers implement Just-In-Time inventory management techniques, leading to reductions in logistic

and overall costs.

Economic Productivity of the Land

The proposed alignment for the streetcar route was selected, in part, to serve planned redevelopment

areas and stimulate reinvestment. Significant urban redevelopment is anticipated to accompany the

project, with new residential and commercial properties where buildings and parking lots currently lie

fallow. In 2007, the City studied a zone in 3 blocks of either direction of the rail tracks (see Figure 2),

stratified by one, two, and three block increments. While the actual geographic impact of the Cincinnati

Streetcar project may be larger, the economic benefits described below are conservatively estimated to

be only within the shaded, three block area surrounding the streetcar route. For example, the benefit

zone will extend to Uptown along that route, but those public benefits were not quantified in the

discussion below.

1 Cincinnati Streetcar TIGER II Benefit-Cost Analysis and Economic Impact Analysis, www.cincinnati-oh.gov/tiger2

2 Ibid.

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Vacant & Underutilized Buildings

The analysis for the Cincinnati Streetcar considered

two assets for redevelopment: the existing inventory

of vacant or underutilized buildings in the area, and

the land area served by the streetcar which is currently

vacant or devoted to parking (most of it in the form of

surface parking lots).

Using conservative estimates of the amount of floor

area which is now vacant in the project area, it appears

that a total of at least 1,335 housing units could be

created in the upper floors of these buildings, at an

annual value added/year of $32 million. For

simplicity’s sake, and to maintain a very conservative

approach, the ground floors of larger buildings were

left out of this calculation. These floors will, no doubt,

be rehabilitated and re-leased as commercial space as

redevelopment and local population increases, but

that portion of the “potential upside” was set aside for

now.

Typically, in rebounding downtowns, most of this

redevelopment resource has been exploited within five years. For conservatism’s sake, this analysis

looked at much longer absorption periods as well, and then projected a conservative scenario of 15

years. In all three cases, it was assumed

that only 85% of the floor area would

actually enter the marketplace and be

redeveloped, with 15% remaining

unavailable to redevelopment due to

owner preferences, severe structural

problems, etc.

Vacant & Underutilized Land

Even more potential exists with the amount of land area in the project’s zone of influence now vacant or

devoted to parking, with a total of 97 acres of land being vacant, or occupied by parking. A similar

conservative approach was taken with redevelopment of these parcels. The consultant team assumed

that approximately 65% of the area would be redeveloped as housing, and 35% as commercial, office, or

hotel uses. Absorption rates were assumed, again, at a much lower rate than has been experienced in

other cities now enjoying the benefit of streetcar-induced development. According to analysis,

redevelopment of these parcels can conservatively add up to 7.4 million square feet of new office/retail

over 50 years, and up to an additional 10,700 housing units, at an average annual value added/year of

$112 million in property value.

Absorption Scenario Low (20 yrs)

High (5 yrs)

Conservative (15 yrs)

Absorption rate 5% 20% 10%

Housing units/year 78 266 89

Value added/year $28 million

$79 million

$32 million

Table 3: Redevelopment of Vacant & Underutilized Buildings

Figure 2: Project Benefit Impact Zone

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There is already evidence of speculative

investment in the area served by the

streetcar. PNC Bank reports an increase

in commercial loans for properties in the

OTR neighborhood. And a major

employer – Rookwood Pottery, is in the

midst of an $18 million investment in

OTR, based largely on the benefits of

transit-oriented-development offered by

the streetcar:

“Our company alone has begun the process of rehabilitating over 100,000 sq ft of

previously unused space, with 180,000 as our total goal…our projections are to have

75 – 120 people employed here (with) a total investment of $18,500,000. This was all

spurred as a result of the streetcar initiative.”

- Christopher Rose, CEO & President, Rookwood Pottery

Additionally, the spending power of new residents drawn to Downtown and OTR can be quantified and

attributed to streetcar investment. The feasibility study estimated that new residents will introduce over

$17 million annually in new retail activity in Downtown and OTR. This new spending will have a

multiplier effect, and result in additional jobs and business expansions.

4.1.3 Livability

The Cincinnati Streetcar will unite the unique historic, economic, cultural and institutional assets of the

core into a walkable, accessible and affordable environment for all residents. Significant urban

redevelopment will occur in historic buildings and parking lots that currently lie fallow in Downtown and

Over-the-Rhine (OTR). Over time, these projects will unify new mixed-use developments, affordable

housing, business districts, cultural institutions and historic structures in all three neighborhoods into a

cohesive urban center. In Cincinnati’s reinvigorated core, existing residents, newcomers and office

workers alike will carry out all the activities of daily life—home, work, grocery shopping, and

entertainment – within a short trip, by foot or by streetcar.

More Convenient Transportation Options & Reduced Mobility Costs

The Streetcar will enhance accessibility for workers, residents, students, and visitors in the CBD, OTR and

Uptown by giving them more convenient travel options to other core destinations. The streetcar will

also be utilized for complimentary trips such as grocery shopping in Findlay Market, dining at Downtown

restaurants, and entertainment in a wide variety of stadiums, theatres and music venues. In this

environment, the automobile becomes an option instead of a daily necessity.

The low income population along the alignment is highly transit-dependent, especially in OTR, where

the average household owns 0.6 automobiles. On average, 40.4% of residents depend on public

transportation just for their commutes. In some corners of the neighborhood, that ridership is as high

Absorption Scenario

Low (150 yrs)

High (30 yrs)

Conservative (50 yrs)

Office/retail/hotel 50,000 sq. ft/yr

300,000 sq. ft./yr

148,000 sq. ft/yr

Housing units/year 107 267 214

Value added/year $54 million

$193 million

$112 million

Table 4: Redevelopment of Vacant & Underutilized Land

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as 85.4%. When considering transportation for food, shopping and family trips, that number is even

higher. The streetcar will be an affordable transportation alternative that will provide more flexibility to

these transit dependent residents.

The streetcar will also allow low income residents who are currently automobile dependent to choose a

car-free lifestyle and still be able to commute to the region’s two largest job centers with reliability and

consistency. The area’s average yearly transportation cost of $3,393 is a burden for households earning

a median $8,343 each year. For the low income riders along the line who opt to go car-free, the Vehicle

Operating Cost savings benefit will result in a de facto increase to their very limited disposable income.

Trip cost reductions accruing to users who divert from personal automobiles to the new transit service

are shown below in Table 5. The Vehicle Operating Cost savings benefit compares forecast Vehicle Miles

Traveled (VMT) and trips in the no-build to build forecasts. Monetized benefits are separated into five

categories: fuel, oil, tires, maintenance, and depreciation. The costs in transit fares for passengers

diverted from automobiles are subtracted from these reductions in vehicle costs to reach a net savings

estimate. The streetcar will result in a savings of $1,847,885 for the community.

Modal Connectivity

The Cincinnati Streetcar was designed to connect with all of the major transportation modes in the

central city, providing residents, workers and visitors with easy access to parking, bus, future light rail,

and 3-C passenger rail travel options. A brief summary of intermodal connectivity options includes:

Government Square Transit Facility: Completed in 2005 with the aid of federal, state and local funding

partners, the Government Square transit facility is Metro’s busiest bus stop, with more than 15,000

riders per day.

Riverfront Transit Center: Built as part of the Ft. Washington Way reconstruction, the Riverfront Transit

Center can handle up to 500 buses and 20,000 people an hour. The Transit Center was also designed to

accommodate future light rail service in the region.

2013

(Discounted $2010) Lifecycle

(Discounted $2010)

Fuel $187,780 $2,825,149

Oil $13,509 $203,180

Tires $8,920 $127,442

Maintenance $91,943 $1,288,266

Depreciation $165,288 $2,479,000

Streetcar Fares ($353,875) ($5,075,153)

Total Cost Savings $113,565 $1,847,885

Table 5: Out-of-Pocket Cost Savings

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TANK: The Transit Authority of Northern Kentucky (TANK) will intersect with the Cincinnati Streetcar at

Government Square, offering streetcar riders ready access to northern Kentucky bus routes.

3-C Passenger Rail: The State of Ohio has announced plans to introduce intercity passenger rail service

between Cincinnati Columbus, and Cleveland (the 3-C Corridor) with an ultimate aim toward connecting

these cities through high-speed rail service to the Chicago Hub and other high-speed rail networks as

called for in President Obama’s High Speed Rail Strategic Plan. The Cincinnati station location for future

passenger rail service is currently being evaluated, but the Cincinnati Streetcar will be proximate to the

station if a riverfront site is chosen, and future streetcar extensions will connect with Cincinnati Union

Terminal, when passenger trains eventually serve that facility.

Walkable Streets: The Cincinnati Streetcar was designed specifically to service urban neighborhoods,

where walking, biking, and public transit are equally appealing and convenient. Nearly all the project

area has sidewalks, which will promote the pedestrian/transit mode mix served by the streetcar service.

Parking Garages and Surface Lots: There are numerous parking facilities along the streetcar route,

including the Banks development on the riverfront. These facilities will compliment the circulator service

offered by the streetcar, as downtown workers or visitors park in convenient satellite areas, and use the

streetcar to travel to business and social appointments, and special events.

Roadways: Connecting the streetcar line to the central riverfront utilizing the Walnut and Main Street

bridges across Ft. Washington Way will ease construction expenses, as those bridges were built with

sacrificial track slab sections which will be removed for streetcar track construction. These bridges were

also designed to accommodate the load of a streetcar, which is 19% heavier than the standard ODOT

truck loading.

Accessibility for Disadvantaged Groups

The streetcar will improve accessibility and transport services for one of the most economically

distressed areas of the city. As indicated above, the OTR neighborhood has historically suffered from

some of the highest poverty and unemployment rates in the region. The Cincinnati Streetcar will not

only facilitate movement of residents, visitors, and workers between the CBD , OTR, and Uptown via a

new fixed rail option, but the transit-oriented development stimulus it provides will increase residents’

access to goods and services by encouraging the creation of diverse, locally-supported, neighborhood

business districts along the route.

The Cincinnati Streetcar is especially valuable for those that can’t drive due to physical disabilities. For

these persons, the streetcar will equate to a significant improvement in personal freedom and mobility.

The current mobility option, ACCESS (a shared-ride public shuttle service), offers some mobility for

persons with disabilities, but at the cost of long wait and ride times, inconsistent arrival times, and

advance scheduling for trips. The streetcar’s low-floor boarding and regular headway times will offer

persons with disabilities a more reliable, accessible, and comfortable mode of transport.

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Based on projected ridership for the Cincinnati Streetcar, and 2000 Census data for low-income

households in Cincinnati general trip cost savings specific to low income individuals and families are

projected to total $250,000 in 2013 and $4.67 million over the 20-year lifecycle. In addition, cross-

sector benefits to low-income riders resulting from a reduction in home care costs due to the increased

mobility provided by the streetcar total $420,000 in 2013 and $6.03 million over the lifecycle.

Planning Process

The Cincinnati Streetcar route was developed through a process that coordinated transportation and

land use planning. Streetcar planning coordinates closely with numerous existing land use plans. The

project is included in the region’s Transportation Improvement Plan (TIP) and will be included in the

most recent amendment to the State Transportation Improvement Plan (STIP). In addition, the streetcar

is an integral part of OKI’s Long Range Plan and at least 13 other regional planning efforts over the past

12 years, including the 2002 Metro Moves Plan, a comprehensive regional transportation plan, and the

Central Area Loop Study, a plan to interconnect the riverfront and center city of Cincinnati, Newport,

and Covington, KY. The City of Cincinnati’s Comprehensive Plan of 30 years ago is in the process of being

updated with consideration to the proposed Streetcar line. Furthermore, the streetcar is part of the

most current land use plans for the three areas through which the Streetcar is proposed to run: OTR,

Uptown, and Downtown Cincinnati.

The streetcar planning process has included an extensive public involvement and outreach component,

inclusive of all segments of the community. Since 2007, over 30 public meetings, presentations, and

open houses have been held in and around the project area to solicit and incorporate feedback on the

project. In addition, stakeholder groups have been assembled to provide input on specific aspects of the

project.

4.1.4 Environmental Sustainability

Streetcars support sustainability by reducing reliance on cars, saving gasoline, reducing greenhouse gas

emissions, and promoting denser land use patterns.

Reduced Reliance on Automobile Travel

The Cincinnati Streetcar Feasibility Study conducted by HDR Decision Economics estimated the daily

Vehicle Miles Traveled (VMT) within the corridor in a no-build scenario to be 29,355 daily VMT by 2032.

According to HDR, construction of the streetcar would result in a decrease of 8,653 daily VMT (a

reduction of over 29%). Over 2,984 automobile trips will be avoided each day.

2013 2022 2032

Daily VMT without Streetcar 23,882 26,575 29,355

Daily VMT Reduced Because of Streetcar 5,029 6,597 8,653

Auto Trips Reduced Daily 1,734 2,275 2,984

Table 6: Daily VMT and Auto Trip Reduction

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The estimated annual VMT reduced in opening year is calculated at over 1.2 million. Over 33 million

VMT will be avoided over the lifecycle of the streetcar. This was calculated using ridership data, average

trip length, and average annual growth rates for ridership at 2.75 percent.

Gallons of Fuel Saved

The reduction of 33,810,189 VMT over the 20-year lifecycle of the streetcar will save 1,184,762 gallons

of gasoline, and $4,051,886 in fuel costs3. This is based on a discount rate of 7%, an average speed of 25

mph in the vicinity and an average consumption rate of 31 gallons per 1,000 miles. The equivalent un-

discounted savings is $7,351,732.

Reduced Emissions

Based on the reduction in VMT, the Cincinnati

Streetcar is estimated to reduce six key pollutants

by 13,744 tons over 20 years (see Table 9).

Denser Land Use Patterns

In addition, the dense settlement patterns

associated with transit oriented development

reduce greenhouse gases because housing units

are generally smaller, more energy-efficient, and

have reduced thermal losses because of attached

3 The assumed average fuel price over the project lifecycle is $3.42 per gallon.

Opening Year Lifecycle

VMT Avoided 1,257,186 33,810,189

Gallons Avoided 2013 2032

Base Case (no streetcar)

Gallons Used 319,434 443,364

Alternative

Gallons Used 245,055 272,028

Savings (Gallons) 74,379 126,435

Lifecycle Savings ($) $4,051,886

Lifecycle Savings (Gallons) 1,184,762

Pollutant Short Tons Avoided

NOX 10.37

SO2 0.25

PM10 0.92

PM2.5 0.42

VOC 16.95

TOTAL Conventional Pollutants 13,743.91

CO2 (Metric Tons) 13,715

Table 8: Gallons of Gasoline Avoided

Table 7: VMT Avoided

Table 9: Reduced Pollutants

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construction compared to older, single-family homes. Additionally, residents of these denser, mixed use

communities are more likely to use public transit, walk or bike to more destinations, and generally have

more destinations located in close proximity to their homes. According to the International Council for

Local Environmental Initiatives’ (ICLEI) personal CO2 emissions calculator, 5.5 tons of CO₂ per person per

year could be used as an average savings for dense, walkable city neighborhoods such as Downtown and

OTR.

The City of Cincinnati’s Streetcar Feasibility Study suggests that the streetcar investment could spur the

redevelopment of vacant buildings in the corridor resulting in up to 1,335 new housing units, as well as

the development of vacant lots resulting in the construction of an additional 10,700 housing units.

Assuming an average of 1.5 persons per household, this suggests that Cincinnati may gain 17,752 new

Downtown/OTR residents on account of the streetcar investment. Assuming that each new resident

produces 5.5 fewer tons of CO₂ per year than a typical Cincinnati resident, the circulator route of the

streetcar project may result in the reduction of 97,636 tons of CO₂ annually due to the denser

settlement patterns that result.

In summary, the Cincinnati Streetcar will save 13,715 tons of CO₂ over its lifecycle by reducing Vehicle

Miles Traveled, but additional benefits may occur as a result of dense settlement patterns and lifestyle

changes that result in additional savings of 97,636 tons of CO₂ per year when the corridor is

redeveloped.

4.1.5 Safety

Light rail and streetcar systems have a very good safety record. While the Cincinnati Streetcar project

will result in a shift of some trips from automobiles to transit, this shift will not significantly affect safety,

positively or negatively.

4.1.6 Evaluation of the Project’s Forecast Benefits and Costs

The costs and the benefits of the Cincinnati Streetcar have been estimated over a 20-year period and

discounted to present-day value using a 7 percent real discount rate. Benefits have been estimated with

dollar values recommended by the U.S. DOT or - where specific guidance was not provided - standard

industry practice. A summary of methods, data and assumptions have been posted online and is

accessible at www.cincinnati-oh.gov/tiger2/ .

The overall costs and benefits of the Project, along with standard indicators of project worth, are

summarized in the table below. Present value estimates derived with a 3 percent real discount rate are

provided as well, for sensitivity analysis.

As can be seen in Table 10, total benefits from the Cincinnati Streetcar are expected to exceed total

costs by about $71.05 million in present value terms (with a 7 percent real discount rate), leading to a

benefit/cost ratio of 1.42. Total project costs are expected to be recovered through the accumulation of

societal benefits within 14 years.

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Project benefits have been calculated for each long-term outcome selection criterion identified in the

Notice of Funding Availability. The table below explains how benefits were mapped into the criteria.

For example, it was assumed that travel time savings arising from the streetcar investment would

contribute to enhancing the competitiveness of the Greater Cincinnati area - and indirectly of the United

States – through improvements in the mobility of the workforce or reduction in shipping costs.

7 Percent Real Discount Rate

3 Percent Real Discount Rate

Full Alignment, including Uptown Extension

Total Discounted Benefits $240.03 $414.64

Total Discounted Costs $168.99 $198.89

Net Present Value $71.05 $215.75

Benefit/Cost Ratio 1.42 2.08

Internal Rate of Return (%) 10.8% 10.8%

Payback Period (years) * 14 years 14 years

Note: * estimated on the basis of non-discounted benefits and costs

Outcomes Benefit Categories Brief Description

State of Good Repair

Pavement Maintenance Savings

Reductions in pavement maintenance costs due to changes in roadway usage

Economic Competitiveness

Travel Time Savings

Door-to-door travel time savings to both streetcar users and remaining roadway users

Out-of-Pocket Cost Savings

Reduction in out-of-pocket costs borne by travelers diverting to proposed streetcar, including parking cost savings

Livability

Community Development

Existence, option, and amenity value of proposed streetcar, as measured by expected property appreciation (net of capitalized travel cost savings)

Benefits to Low Income Households

Portion of travel time savings and out-of-pocket cost savings to low income households

Cross-Sector Benefits

Resource savings resulting from reductions in the provision of home care

Sustainability Reduction in Air Emissions

Reduction in air pollutants and green house gasses from changes in personal vehicle use

Safety Accident Reduction Reduction in the number of deaths, injuries and property-damage-only accidents due to changes in personal vehicle use

Table 10: Summary of Benefit Cost Analysis (In Millions of 2010 dollars)

Table 11: Benefit Estimates by Long-Term Outcome Selection Criterion for the Full Alignment

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Benefits to low income households and property appreciation beyond and above the capitalized value of

travel cost savings (i.e., Community Development) were assumed to represent livability improvements

and were classified under the Livability outcome.

Community development benefits represent a large fraction of total project benefits. As explained in the

rest of the application, the Cincinnati Streetcar is expected to induce real estate development and

property appreciation in the vicinity of the alignment. Commonly referred to as “Transit Premium” in

empirical land use and transportation studies, the cumulative amount of property appreciation not only

reflects the capitalized value of future transportation cost savings, but also includes the amenity

benefits, existence value, and option value of transit. A peer review of transit systems across the Nation

suggested that proximity to the Cincinnati Streetcar may raise property values by an average of 1.1 to

8.8 percent relative to the no-build scenario. The resulting lifecycle benefits are expected to reach

$185.4 million (in present value terms) for the Downtown Loop alone and $211.3 million for the entire

system. Details of the estimation can be found in Table 12.

Table 12: Incremental Community Development Benefits, in Millions of 2010 Dollars unless Specified Otherwise

Number of Properties within

Three Blocks of the Alignment

Average Property Value

(discounted)

20-Year Lifecycle Benefits

(discounted)

20-Year Lifecycle Benefits Net of

Capitalized Travel Cost Savings (discounted)

Downtown Loop

Residential 1,240 $701,284 $37.61 $33.45

Commercial 2,770 $951,624 $120.35 $107.02

Total 4,010 $874,212 $157.97 $140.46

Downtown Loop and Uptown Extension

Residential 2,820 $586,359 $51.19 $41.74

Commercial 3,180 $947,090 $160.11 $130.56

Total 6,000 $777,546 $211.30 $172.29

The present value of total project costs includes total capital costs (e.g., land acquisition, system design

and construction costs) and annual streetcar operating and maintenance costs over the 20-year period

of analysis. The total costs of the Full Alignment amount to $169.0 million (in millions of 2010 dollars,

discounted at 7 percent). This present-value estimate includes $119.8 million in capital cost (expected

to be spent over three years, between 2010 and 2012) and $49.2 million annually in incremental

operating and maintenance expenditures.

4.2 Job Creation and Economic Stimulus Analysis

In addition to the economic benefits associated with long-term outcomes, the short-term economic

impacts of the Project have been estimated at the national level. These impacts represent the direct,

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indirect and induced effects associated with expenditures incurred during the development phase of the

Project (2010-2012) for goods and services produced within the United States (e.g., construction,

engineering, rolling stock manufacturing).

Two methods have been used to estimate expected short-term job creation. The first approach applies

the value of one job-year per $92,000 of government spending as estimated by the Council of Economic

Advisers (CEA) in their analysis of job creation resulting from the American Recovery and Reinvestment

Act of 2009. For comparison purposes, the Minnesota IMPLAN Group’s input-output model has also

been used to estimate the direct, indirect and induced impacts of the Project in terms of employment,

labor income, and value added.

As shown in Table 13, the Cincinnati Streetcar is expected to generate between 1,356 (CEA) and 2,157

(IMPLAN) job-years during the development phase alone.

The project is also expected to create $172.2 million in value added, including $115.1 million in labor

income (IMPLAN estimates). A breakdown of economic impacts in terms of employment, labor income

and value added is provided by quarter in Table 14.

Table 14: Short-term Economic Impacts Resulting from Project Development, IMPLAN Estimates

Period Spending

(Millions of 2010 Dollars) *

Direct Job-Hours **

Total Job-Hours **

Total Labor Income

(Millions of 2010 Dollars)

Total Value Added

(Millions of 2010 Dollars)

2010 - Q1 $3.4 46,680 123,590 $3.9 $5.3

2010 - Q2 $6.5 58,704 177,982 $5.7 $8.9

2010 - Q3 $6.7 62,256 186,534 $5.9 $9.2

2010 - Q4 $8.1 80,997 234,874 $7.2 $11.1

2011 - Q1 $15.3 177,426 485,297 $14.3 $21.2

2011 - Q2 $18.3 217,381 588,743 $17.2 $25.3

2011 - Q3 $19.3 231,481 625,303 $18.2 $26.8

2011 - Q4 $20.1 211,700 596,872 $17.6 $27.0

2012 - Q1 $17.0 170,567 490,020 $14.6 $22.7

2012 - Q2 $6.2 83,754 218,118 $6.3 $8.9

2012 - Q3 $2.8 37,571 98,162 $2.9 $4.0

2012 - Q4 $1.3 17,204 44,897 $1.3 $1.8

Total $125.0 1,395,721 3,870,392 $115.1 $172.2

Notes: * includes engineering ($21.1 million), construction ($75.2 million) and vehicle procurement ($28.7 million); ** assuming average hours worked of 34.5 (Bureau of Labor Statistics estimate, full and part time jobs).

Estimated Spending

(Millions of 2010 Dollars)

Direct Job-Years

Indirect Job-Years

Induced Job-Years

Total Job-Years

IMPLAN $125.0

778 490 889 2,157

CEA 868 488 1,356

Table 13: Direct, Indirect, and Induced Employment during Project Development Phase

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The Cincinnati Streetcar is envisioned to be a transformative project not only in terms of redeveloping

distressed neighborhoods, but in catalyzing opportunities to connect low-income and other workers

with meaningful employment.

First, City leaders have created a number of programs to connect disadvantaged people with public

construction jobs. A few of the prominent initiatives include:

City Small Business Enterprise Program: The purpose of the Small Business Enterprise (SBE) Program is

to promote the economic welfare of the people of the City of Cincinnati; to mitigate the effects of

discrimination against SBEs; and to promote full and equal business opportunity for all persons doing

business with the City of Cincinnati. This SBE program enacts a Narrowly Tailored Remedy program that

is race and gender neutral. Based on recent experience (e.g., Banks Redevelopment), the City is well

ahead of goal in terms of SBE participation.

OPEN Cincinnati is a collaborative effort between the African American Chamber of Commerce, Hispanic

Chamber of Commerce, Cincinnati USA Regional Chamber of Commerce, minority business owners, the

faith community and inclusion experts. The group’s mission is to increase minority participation in city

procurement and services.

Super Jobs is Hamilton County’s Workforce Development Program. It is operated in partnership with

Arbor E&T LLC, and is supported by the City of Cincinnati, Hamilton County and the Southwest Ohio

Workforce Investment Board. The Hamilton County Department of Job and Family Services is designated

as the fiscal agent and administrative entity for Workforce Investment Act (WIA) Title 1 federal

workforce investment programs -- WIA Adult, Dislocated Worker and Youth programs. The center

provides no-cost services to both employers and job seekers.

The Cincinnati Works program is a network of services and partnerships, offering a holistic approach to

eliminating poverty in the Cincinnati Tri-State area. The private non-profit program promotes economic

self-sufficiency through job training, placement, and other social support services.

The Cincinnati-Hamilton County Community Action Agency offers a variety of employment services,

including education, job training, job search assistance, and interview coaching.

Secondly, the Integrated Delivery Team selected by the city has five major minority businesses in

significant roles on the project. The construction principal has committed to a Disadvantaged Business

Enterprise (DBE) participation goal of at least 20%.

Finally, there will be numerous secondary jobs associated with the area’s economic redevelopment.

With $112 million in estimated annual redevelopment activity, there will be numerous construction

jobs, including basic and finish carpentry, low voltage electricians, drywall, and roofing trades.

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4.3 Innovation

The Cincinnati Streetcar is one of the most innovative transportation projects in the country. Multiple

disciplines of transportation, urban planning, and public/private partnerships have come together to

plan and deliver the project. The highlights of the project’s innovation are:

Delivery: The City of Cincinnati is procuring the project through a Construction

Management/General Contractor delivery (CMGC). The integrated approach promotes collaboration

between the owner, designer and contractor: all design decisions are made in concert with the

owner and contractor, and the collaborative approach extends through the construction phase of

the project. The integrated delivery method provides the speed of design-build construction,

without the owner’s loss of control of the project in the construction phase.

Innovative Public Finance: Value-capture, from Tax Increment Finance Districts that capture part of

the incremental increases in property taxes associated with streetcar economic development.

Private Finance: There is a potential opportunity for Duke Energy to capitalize (finance, design, build

and operate) the streetcar’s electrification system, then lease power to the streetcar to help

amortize the debt.

Opportunity for Carbon Offset Credits: Duke Energy stands to gain some carbon offset credits that

will be fungible in any future climate change “cap and trade” bill.

Zoning: the City of Cincinnati has implemented an “urban overlay” zone designation on some parts

of the streetcar route to promote transit-oriented development. In addition, the City is developing a

“form-based code,” which will relax the required number of parking spaces per residential unit, in

the area that the streetcar serves. This approach reduces the space needed for parking, allowing

more acreage to be developed in a denser manner, thereby promoting transit-oriented

development.

4.4 Partnership

Jurisdictional and Stakeholder Collaboration

A number of local public agencies and civic groups have come together to promote and develop the

Cincinnati Streetcar project. State and local public funding sources comprise about half of the project

financing, and a private partner – Duke Energy – has pledged financial support to the project in the form

of funding.

The private sector will also finance some of the streetcar platforms and stops. For example, PNC Bank –

a member of the project delivery team – will sponsor development of at least one of the streetcar stops

near its downtown headquarters building.

The project delivery team – Cincinnati Streetcar Development Partners – is mix of local businesses which

reflect the diversity of the city. The construction firms have pledged to engage the Over-the-Rhine

community in soliciting employees for the project. Given the size of the investment in a relatively small

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area, Over-the-Rhine residents could gain significant exposure and experience with construction,

boosting their economy at the neighborhood level.

Disciplinary Integration

The City of Cincinnati’s land use planning and transportation agencies have cooperated at

unprecedented levels to make the project a success. The streetcar is a prominent part of all urban

planning in downtown, Over-the-Rhine, and Uptown areas. In turn, city planning and zoning officials are

coordinating with the streetcar partners to implement form-based zoning codes which foster transit-

oriented development.

The Cincinnati Streetcar will bolster a number of development activities currently planned and

underway in the communities served by the project under the leadership of the City, Cincinnati Center

City Development Corporation (3CDC), and other community development partners. 3CDC is a private,

non-profit corporation founded to strengthen the core assets of Downtown by revitalizing and

connecting the center city from the banks of the Ohio River through OTR. 3CDC works to create great

civic spaces, high-density mixed use development, diverse mixed income neighborhoods, and to

preserve historic structures. Utilizing such innovative financing tools as New Markets Tax Credits, 3CDC

is directly responsible for $167 million in new investment in Downtown Cincinnati and in OTR since

2005. This investment has directly resulted in the renovation of Fountain Square, Cincinnati’s premier

civic space, and more than 200 new and renovated housing units in OTR and Downtown. This

investment has also helped spur:

About $125 million in new investment in the Fountain Square District.

A vibrant and growing commercial district in OTR.

Streetscape improvements to Vine Street.

A 37% drop in reported crime, between 2004 and 2008, in the area south of Liberty Street in OTR.

The proposed Cincinnati Streetcar route is directly aligned with 3CDC’s geographic focus. The

construction of the streetcar line will build upon 3CDC’s investments and leverage additional private

investment in this area. The streetcar route will serve the planned $25 million redevelopment of

Washington Park and multi-million dollar renovation of Cincinnati Music Hall, home to many of

Cincinnati’s vibrant and acclaimed arts institutions, including the Cincinnati Symphony Orchestra,

Cincinnati Pops Orchestra, and Cincinnati Opera. In addition, the Streetcar directly complements

Cincinnati Public Schools’ $72 million investment in the new School for Creative and Performing Arts, a

nationally recognized performing arts magnet high school located in OTR and scheduled to open in fall

2010.

5 Project Readiness & NEPA

The Cincinnati Streetcar project is on a fast-track project delivery schedule. The City’s selected team –

the Cincinnati Streetcar Development Partners – has experience in design, finance, construction and

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operating streetcar systems. Design is underway, and upon receipt of the TIGER grant, the last piece of

financing will be complete and capital commitments, including vehicle purchase, can begin.

Project Schedule

Preliminary construction surveys and utility investigations are underway now. The first critical piece of

design is utility relocation; when utility design is complete, project cost estimates will be updated and

the construction contingency reduced. The project development partners will then continuous

design/construction interface to complete construction plans and start work on discrete elements of the

streetcar system:

Utility relocation

Power poles, catenary, and electric system

Staged guideway construction

Environmental Approvals

The City has prepared and submitted a draft Environmental Assessment (EA) for the project to FTA,

which has been designated as the lead federal agency for the project. A copy of the most recent draft

2010 2011 2012 2013

F A J A O D F A J A O D F A J A O D F A J A O D

Environmental

Documentation

Maintenance

Facility Design

Vehicle

Selection

Vehicle

Procurement

Advanced Utility

Relocation

Design

Utility

Relocation/

Improvements

Civil Design –

Track and

Roadway

Rail

Procurement

Track

Construction

Overhead

Power Design

Overhead

Construction

Startup

Table 15: Project Schedule

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EA can be found at www.cincinnati-oh.gov/tiger2/ FTA has submitted comments on the initial draft and

the City is currently preparing revisions to the EA document. In addition, the City and FTA are working

with the Ohio Historic Preservation Office to address comments submitted by OHPO as part of OHPO’s

Section 106 review process. A final approval of the EA document is envisioned to occur in fall 2010. All

construction is within existing public right-of-way, which is currently used for vehicular traffic; the

Streetcar operation will not be a detrimental change to the current use of public streets for vehicular

traffic. The project will not alter storm water runoff.

Legislative Approvals

Cincinnati City Council has taken several actions in support of the Cincinnati Streetcar project. These

include Ordinances authorizing the sale of up to $64 million in City bond financing for the project.

Furthermore, the project is included as part of the State of Ohio’s 2010-2014 Major New Construction

Program List. These documents can be found at www.cincinnati-oh.gov/tiger2/.

State and Local Planning

The project is listed in the Ohio-Kentucky-Indiana (OKI) Council of Governments Long Range Plan (OKI is

the regional MPO and in the regional Transportation Improvement Plan (TIP). An amendment to the

State Transportation Improvement Plan (STIP) is underway to include federal and state funding awarded

to the project to date. The regional TIP and STIP will be further amended upon award of a TIGER grant.

Technical Feasibility

The project is technically feasible, given its insignificant construction and environmental impact – it will

run on existing city streets, with some utility relocation necessary, but no other complex construction

issues such as bridges, geotechnical conditions, or other unique circumstances. The construction partner

on the development team has completed similar streetcar projects in Salt Lake City, Portland, Seattle,

and other locales. Preliminary engineering is probably at 5 to 10% level of completeness.

Financial Feasibility

There is a number of financing sources and reserves available for the Cincinnati Streetcar. There is a

significant cash contribution as part of the city’s funding. In addition, there is a significant amount of

value-capture (from Tax Increment Financing Districts) financing that was budgeted conservatively.

Likewise, the financial contribution expected from the state of Ohio is conservative, based on similar

grants the state has made to transit projects in Cleveland. The City has budgeted construction

contingencies which are adequate for this phase of the project’s development. In summary, the project

depends on TIGER funding, but local funding sources have been estimated in the most conservative

manner possible.

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Cincinnati Streetcar TIGER II Grant Application

22

6 Federal Wage Rate Certification

A copy of the federal wage rate certification as required by the FY 2010 Appropriations Act can be found

at www.cincinnati-oh.gov/tiger2/ .

Page 27: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

Ohio Department of Transportation Central Office • 1980 West Broad Street • Columbus, OH 43223

Ted Strickland, Governor • Jolene M. Molitoris, Director

An Equal Opportunity Employer

August 20, 2010 The Honorable Ray H. LaHood Secretary United States Department of Transportation 1200 New Jersey Ave., SE Washington, DC 20590 Dear Secretary LaHood: The State of Ohio Department of Transportation will comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code (Federal wage rate requirements), as required by the Recovery Act for all projects funded in whole or in part with Federal Tiger Grants. The State of Ohio Department of Transportation will provide investigative and enforcement assistance, along with resources to any contractor or consultant administering federal-aid procurement contracts in accordance with the federal prevailing wage laws. All contractors that perform work under contracts that are funded in whole or in part with federal funds shall furnish copies of payroll reports to the contracting agency. Contractors shall certify each payroll report by completing a Statement of Compliance Form. In addition, the prime contractor is responsible for assuring that its payroll records and those of its subcontractors accurately reflect the hours worked, rate of pay, and classification of work performed. Construction contracts funded in whole or in part with federal funds must conform to the regulations set forth in the Federal Davis-Bacon and related statutes. The contracting agency shall administer the contract in accordance with the plans, specifications and provisions. In addition, the contracting agency shall utilize a Labor Compliance Field Review Form monthly to conduct employee interviews; the information collected will assist the contracting agency in ensuring that all contractors are demonstrating compliance. At any time, the prime contractor must permit representatives from the U.S. Department of Labor, the Federal Highway Administration, or the contracting agency to perform worker interviews on the project; the time for such interviews shall be paid time. Contract labor provisions/specifications regarding prevailing wage must be incorporated into all federal-aid contracts and shall be applicable to the prime contractor and all subcontractors contracting to do all or part of the work under a contract. The prime contractor, along with all subcontractors shall provide to each lower tier subcontractor, performing work under a contract, copies of all required contract provisions. The Ohio Department of Transportation agrees to comply with the applicable terms and conditions set forth in (1) Title 23, US Code, Highways, (2) The regulations issued pursuant thereto and (3) The policies and procedures promulgated by the Federal Highway Administration in projects seeking federal participation. Sincerely,

Jolene M. Molitoris Director cc: File

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Page 31: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

COMMISSIONERS RESOLUTION NOR20090

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE

CITY OF NEWPORT KENTUCKY FOR THE SUPPORT OF THE

CINCINNATI OHIO PROPOSED STREETCAR PLAN

WHEREAS the City of Newport Kentucky recognize that a strong and

economically vital center city is necessary to support a strong and economically vital

region and that the City of Cincinnatis proposed Streetcar Plan will bring new

development economic vitality and greater connectivity between many of the regionsexciting cultural attractions and institutions and

WHEREAS the City of Newport understands the magnitude of such an

investment requires a staged phasing approach that develops an initial critical mass of

ridership and development activity within the center city neighborhoods of Cincinnatiand also understands that the system anticipates future extensions into other

neighborhoods including Newport to create improved mobility and connectivity throughthe region and

WHEREAS the City of Newport recognizes the role Streetcars have in

encouraging and supporting the exciting authentic walkable urban neighborhoodsdesired by talented young professionals and that these neighborhoods are critical to the

regions success in competing globally for these talented people both as residents and

workers and

WHEREAS the City endorses and supports the Cincinnati Streetcar Plan its

anticipated goals and outcomes and the phased approach to bringing the benefits of the

Streetcar to the regionscenter city communities

NOW THEREFORE BE IT RESOLVED that the City enthusiasticallyapprove the efforts of Cincinnati to develop and implement the Cincinnati Streetcar Planand offer their support toward the timely implementation ofthe Streetcar Plan

SECTION I

That this Resolution was unanimously adopted by the Mayor and Board of

Commissioners of the City of Newport Kentucky as evidenced by their signatures below

on this 23rd day of March 2009 and attested to by the City Clerk

Page 32: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

CITY OF NEWPORT

6nlate

l

Commissioner Tho as L Guid i Commissioner Beth Fennell

ommi o er Frank Pelu Co sio rJohn yden

ttOCity Manager omas Fromme ity Clerk Q Evone Bradley

Page 33: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

COMMISSIONERS ORDERRESOLUTION NO r

AN ORDERRESOLUTION OF THE BOARD OF COMMISSIONERS OFCOVINGTON KENTUCKY IN AGREEMENT WITH TIIE CITY OF NEWPORTKENTUCKY FOR THE SUPPORT OF THE CINCINNATI OHIO PROPOSEDSTREETCAR PLAN

WHEREAS the Cities ofCovington and Newport Commonwealth ofKentucky Citiesrecognize that a strong and economically vital center city is necessary to support a strong andeconomically vital region and that t11e City of Cincinnatisproposed Streetcar Plan will bringnew development economic vitality and greater connectivity between many of the regionsexciting cultural attractions and institutions and

WHEREAS the Cities tuiderstand the magnitude of such an investment requires astaged phasing approach that develops an initial critical mass of ridership and developmentactivity within the center city neighborhoods of Cincinnati and also understands that the systemanticipates Iitture extensions into other neighborhoods including Covington and Newport tocreate improved mobility and connectivity through the region and

WHEREAS the Cities recognize the role Streetcars have in encouraging and supportinthe exciting authentic walls able urban neighborhoods desired by talented youngprofessionals and that these neighborhoods are critical to the regions success in competingglobally for these talented people both as residents and workers and

WHEREAS the Cities endorse and support the Cincinnati Streetcar Plan itsanticipated goals and outcomes and the phased approach to Uringing the benefxts of theStreetcar to the regions center city communities k

lNOW THEREFORE JBE IT RESOLVED BY THE BOARD OF COMMISSIONRSOFTH ICITY OF COVINGTON KENTON COUNTYKENTUCTI f

Section 1

That the Cities enthusiastically approve the efforts of Cincinlatr to cleyelop aridiinplenlent the Cincinnati Streetcar Plan and offer their support toward the timelyimplementation of the Streetcar Plan

S2ctlo1l 2

That this orderresolution shall take effect and be in ful force when passed andrcoidcdaccording to lawA fi

ATTEST

CITY LERK

Passed

AYQR

Page 34: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

r

Ucnny 13tinuui illayor

C nnissonc ShanVlstcrs

Coinmissionc rry Stricken

tAl1L 1 IIYilJlrll

CiteClcrlrac Ucnhu

r

nuuission r Sherri Curran

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Page 38: Ohio Department of TransportationThe Cincinnati Streetcar Project represents a tremendous opportunity to leverage strategic transportation investment to provide new and needed transportation

Founded in 1839 300 Carew Tower . 441 Vine Street . Cincinnati, Ohio 45202-2812 . Phone (513) 579-3100 . Fax (513) 579-3101

www.cincinnatichamber.com

September 14, 2009 The Honorable Ray LaHood United State Department of Transportation 1200 New Jersey Ave., SE Washington DC 20590 Dear Secretary LaHood: I am pleased to write in support of the Cincinnati Streetcar Project and the City of Cincinnati’s application for funding under the TIGER Discretionary Grant Program. The Cincinnati Streetcar Project represents a significant opportunity to utilize strategic investment in transportation infrastructure to achieve the Recovery Act’s goals of producing targeted, long term economic benefits. The Cincinnati Streetcar has the potential to serve as a catalyst for transit-oriented redevelopment, returning vibrant streetscapes, diversity, and high density to neighborhoods that have suffered from poverty, blight and under-investment. A feasibility study for the project conducted by HDR and Parsons Brinckerhoff indicated that construction of the initial streetcar line would generate an estimated $1.4 billion in redevelopment of vacant and underutilized properties in the corridor, including up to 92 acres currently devoted to parking. Over the past two years, the Cincinnati USA Regional Chamber has completed work on two economic development strategic plans– GO Cincinnati for the City of Cincinnati and Agenda360 encompassing the four counties of southwestern Ohio. Both of these plans highlight the critical importance of strategic expansion of multi-modal transportation to future regional growth and prosperity. The Cincinnati Streetcar Project is an important step in the development of a more comprehensive multi-modal transportation system and should help stimulate future system development. We strongly encourage favorable review of the City of Cincinnati’s application for TIGER Grant funding for this project. Sincerely,

Ellen G. van der Horst Pete S. Strange President and CEO Chairman, Board of Trustees EGV:lje

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