Streetcar sought to solve Cincinnati budget crunch

Citing an estimated $1.4 billion economic impact on the city, Cincinnati city leaders recently proposed spending $102 million on a streetcar line to get the city out of its largest ever budget deficit of $29 million. The proposed economic impact is supported by a study of major metro areas around the country that have reaped billions in benefits by the development of streetcar lines.

According to excerpts from the story:

Cincinnati should spend $102 million to build a streetcar line even though the city faces a $29 million deficit in 2008, officials urged Tuesday.

City Manager Milton Dohoney and City Architect Michael Moore pitched the project to City Council’s Economic Development Committee, saying the investment would pay dividends in years to come as a result of increased economic development from new businesses and residents along the rail line’s route.

The project would cost $88 million in 2007 dollars, the report concluded. In 2010, the price would jump to $102 million because of inflation, and have a projected $1.4 billion economic impact on the region, David Vozzolo, an HDR vice president, said in May, when he made a presentation to some council members.

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