Cincinnatians for Progress is an organization of city dwellers and business owners who believe that growth and prosperity are closely bound to modern rail transportation.
Our mission is to advocate and educate regarding sensible transportation infrastructure that drives economic investment and job growth for the benefit of the entire city.
We support the Cincinnati Streetcar project and hope to see it grow into a system that serves a large part of the city and leads to regional passenger rail service.
You can be part of CFP too. Donate, volunteer, and stay in touch by subscribing to our email list.
Our mission is to advocate and educate regarding sensible transportation infrastructure that drives economic investment and job growth for the benefit of the entire city.
We support the Cincinnati Streetcar project and hope to see it grow into a system that serves a large part of the city and leads to regional passenger rail service.
You can be part of CFP too. Donate, volunteer, and stay in touch by subscribing to our email list.
How much could it cost to cancel the Cincinnati Streetcar?
Reimbursement
of Federal Money: $2 Million
The City spent $2M federal dollars through September 30- more by the time the new administration takes office. The City of Cincinnati will pay this back to the Federal administration from the operating budget - taking money away from city services - to be reallocated for another city’s rail system.
City Money Already Spent: $26 Million
This number is certain to rise - it represents the amount spent through September 30. There is no reality under which you can get back money already spent. It's gone forever.
Close Out Costs: $14.2 Million
The City Manager estimated it would cost $14.2 million to wind down the project in April 2013. This estimation was made before the construction contract was signed - the actual close out costs will certainly be higher.
Construction Contract Breach: $10 Million
If we breach the $71.3 million Construction Contract, we'll be liable for damages - the work already completed, amounts owed to subcontractors, material costs, and profit the construction company would’ve received. It will likely take one or more trials (and potentially appeals) to determine the cost.
Litigation Costs: $1 Million
This number is not certain but will be costly. Canceling contracts and not following through on commitments to private companies that successfully expended resources on the project is a huge risk.
Duke Repayment: $4.6 Million
With a canceled project, it’s likely that Duke Energy will win the ongoing lawsuit with the city, forcing the city to pay 100% of the incurred costs thus far for Duke utility relocation. Since work continues, this number will rise between now and when Cranley takes office.
Return of Unspent Federal Funding: $43 Million
The Federal Government committed $44.9 to Phase One - currently sitting in our bank account. All that funding will be returned to the FTA to be reprogrammed and sent to other cities to create jobs.
TOTAL: $100.8+ million dollars.
(Total cost to complete the Streetcar: $133 million)
What Else Do We Lose?
Net Benefits of the Streetcar: $287 million
An HDR study that was affirmed by the University of Cincinnati stated that the City of Cincinnati would receive a net benefit of $287 million by building the streetcar. This figure has already deducted the capital and operating costs of the streetcar. Streetcar opponents have never produced any credible evidence to challenge these reports.
Future Federal Funding: Unknown
Cincinnati would be primed for more federal funding for future phases once the streetcar is complete. Canceling the project will severely damage Cincinnati’s relationship with the federal government - potentially eliminating us from any future funding considerations for at least a generation.
Loss of Morale + Residents: Priceless.
The momentum and optimism the Streetcar project gives to the City and region has attracted national attention. Many are already expressing disgust and dismay that such a progressive step in the city could be dismantled.
Will we want to invest in a region unwilling to move forward?
We must ask ourselves ...
The City spent $2M federal dollars through September 30- more by the time the new administration takes office. The City of Cincinnati will pay this back to the Federal administration from the operating budget - taking money away from city services - to be reallocated for another city’s rail system.
City Money Already Spent: $26 Million
This number is certain to rise - it represents the amount spent through September 30. There is no reality under which you can get back money already spent. It's gone forever.
Close Out Costs: $14.2 Million
The City Manager estimated it would cost $14.2 million to wind down the project in April 2013. This estimation was made before the construction contract was signed - the actual close out costs will certainly be higher.
Construction Contract Breach: $10 Million
If we breach the $71.3 million Construction Contract, we'll be liable for damages - the work already completed, amounts owed to subcontractors, material costs, and profit the construction company would’ve received. It will likely take one or more trials (and potentially appeals) to determine the cost.
Litigation Costs: $1 Million
This number is not certain but will be costly. Canceling contracts and not following through on commitments to private companies that successfully expended resources on the project is a huge risk.
Duke Repayment: $4.6 Million
With a canceled project, it’s likely that Duke Energy will win the ongoing lawsuit with the city, forcing the city to pay 100% of the incurred costs thus far for Duke utility relocation. Since work continues, this number will rise between now and when Cranley takes office.
Return of Unspent Federal Funding: $43 Million
The Federal Government committed $44.9 to Phase One - currently sitting in our bank account. All that funding will be returned to the FTA to be reprogrammed and sent to other cities to create jobs.
TOTAL: $100.8+ million dollars.
(Total cost to complete the Streetcar: $133 million)
What Else Do We Lose?
Net Benefits of the Streetcar: $287 million
An HDR study that was affirmed by the University of Cincinnati stated that the City of Cincinnati would receive a net benefit of $287 million by building the streetcar. This figure has already deducted the capital and operating costs of the streetcar. Streetcar opponents have never produced any credible evidence to challenge these reports.
Future Federal Funding: Unknown
Cincinnati would be primed for more federal funding for future phases once the streetcar is complete. Canceling the project will severely damage Cincinnati’s relationship with the federal government - potentially eliminating us from any future funding considerations for at least a generation.
Loss of Morale + Residents: Priceless.
The momentum and optimism the Streetcar project gives to the City and region has attracted national attention. Many are already expressing disgust and dismay that such a progressive step in the city could be dismantled.
Will we want to invest in a region unwilling to move forward?
We must ask ourselves ...
- Do we
want to give up future federal funding and tarnish our reputation?
- Do we
want to stop our momentum, setting rail back a generation?
- Do we really want to turn a $287+ million benefit into a $100.8 million loss?
