“You’re with the press?  I’m going to have to ask you to leave.”
--Patrick Ewing, Economic Development Officer, City of Cincinnati

We’ve all heard how the City of Cincinnati paid only $4 million dollars to 3CDC, receiving tens of millions in upgrades to Fountain Square and the parking garage underneath.  Fewer people know that 3CDC paid the City $7.5 million for the rights to future garage revenues during the term of the loan (up to 40 years).  But what no one talks about is the cost to the City’s parking system, particularly from a financial perspective.  This afternoon, representatives from The Cincinnati Beacon went to City Hall to talk to Joe Gray, the Finance Director.

The $7.5 million was designed to ease the burden to the parking system for all the money lost for the next several decades to 3CDC.  When asked if the City would still be paying $500,000 yearly for garage maintenance, Gray said, “I believe that is the case.” For more particular information, we were forwarded to the Economic Development office, where Patrick Ewing said he was not allowed to answer questions from members of the press—a rule he says comes from Meg Olberding, Public Informations Officer.  Olberding was out of the office this afternoon.

But Gray is clear that the loss of revenue from the Fountain Square garage will eventually cause a strain on the overall parking system, at least when the revenue stream from 3CDC’s payment runs dry.  Though he could not estimate a date for this problem to actualize, there is one obvious solution:  increase parking rates system wide.

According to a sidebar in today’s Enquirer, the City’s new budget proposes “An increase in downtown parking meters, from 75 cents an hour to $1 an hour, to bring in $400,000.” It is our understanding, however, that parking revenues are restricted funds—so money from meters goes to support the overall parking system.  Is this the beginning of a system-wide burden brought to us from a deal by 3CDC?

We already know 3CDC will raise the rates at the Fountain Square garage.  Now, it looks like every other garage in the City may have to raise rates to compensate for that lost money stream.  Though figures Joe Gray provided for the City as a model do not include increases on the street at meters, today’s announced proposal could signal some upcoming changes to parking situations as the City adjusts for lost future funds.

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