1February 7, 2012Mark Mallory, Mayor City of Cincinnati801 Plum St.Cincinnati, Oh 45202Dear Sir:This is my
for annual cash flows and additional information relatedto the Cincinnati Street Car project.
Please provide a written response to thisletter, and my 1/15 and 1/22 letter by Monday, February 13.
Since you have notyet provided annual cash flows, I have reviewed some of the assumptionspresented in the HDR Streetcar Feasibility Study.Some additional information:
The streetcar projected Net Present Value does not breakeven for at least20 years (...
certain cash outflow of $100 million
initial cash investment,and
$5 million annual outlay ($2.5 million annual operating cost plusinterest on debt of $60 million at 4%
uncertain tax revenue
based on$1.5 billion of private capital investment.
Will taxpayers bear the cost of the investment shortfall during this period?
The feasibility study uses a base of $84 million in 2007 dollars, adjustedfor inflation to 2010 dollars would total $102 million. Using the sameweighting assumptions, 2012 costs would increase by $13 million.
Howwill this cost overrun be funded?
Cincinnati is a conservative city – e.g. culturally closer to Buffalo (a failedrail system) than Portland.
Are private capital investments of $1.5 billionin 15 years too aggressive for this unproven $140 million+ investment?
The city has a history of projects not meeting expectations – subwaysystem, Cincinnati Transit Hub, Freedom Center.
The feasibility study references Technical Appendix G: Economic Assessment, which appears to be an integral part of the report.
Please provide a copy of the Technical Appendix G: Economic Assessment.
The city now has a shortage of parking. The projected $1.5 billion willeliminate existing street level parking.
Does the streetcar proposal includefunding for building additional parking facilities?
http://www.cincinnati-oh.gov/city/downloads/city_pdf17754.pdf (Page 24)