Friday, May 26, 2000
Port authority asked for Banks
New plan changes financing
By Dan Klepal
The Cincinnati Enquirer
Jack Rouse had one word for the political leaders who last year rejected a plan to pay for an ambitious riverfront development proposal called The Banks.
“Thanks,” he said Thursday.
Mr. Rouse chairs the Riverfront Advisers, which drew up a $250 million plan to build housing, shops, office space, restaurants and a park between the two new sports stadiums.
Speaking to some of the very leaders who rejected the first financial plan — mainly because it relied heavily on sales tax revenues — Mr. Rouse said that rejection caused his group to find a better way to pay for it all.
The new deal: Expand the powers of the county's current Port Authority so that it can oversee construction, and possibly own the entire development.
Officials have to plug a $177 million hole in riverfront development, including $81.2 million to pay for a 71-acre park.
The port authority plan was met with reserved enthusiasm by many politicians and members of the Port Authority, which would change its name to the Greater Cincinnati Riverfront Development Agency.
Chip Gerhardt, the Cinergy Corp. executive who is chairman of the Port Authority, said port authorities in other cities have been used to pull off massive developments.
In Cleveland, it was the Rock and Roll Hall of Fame. In Toledo, it was an Owens Corning headquarters.
The same thing can happen here with The Banks, Mr. Gerhardt said.
“Hamilton County historically has not used the Port Authority like those two communities have,” Mr. Gerhardt said. “I have long believed that a port authority, with all the powers available to it, would bring significant opportunities to the community.”
In this case, the opportuni ty to bring in money, or save money, so The Banks can be built.
The proposal says that a combination of tax increment financing (taxes on new development are poured back into the project), state and federal funds, developers' fees to build along the riverfront and the Port Authority will account for some $80 million.
The port authority enters into the mix because it can apply for grants not available to government, as well as save money because it pays no sales tax on materials purchased.
Also, the port authority would act as a one-stop shop for developers who might find dealing with both the city and county burdensome.
Mr. Rouse said the port authority is the only way to get it done, and he said the city and county have to agree on it by July 1.
“We studied this thing to death and this is the only way,” Mr. Rouse said. “The risk if we don't proceed with the port authority is that we'll end up with a riverfront that no one wants — two stadiums, parking and the (National Underground Railroad) Freedom Center sitting in front of a pile of dirt.
“The city and county just can't do it alone.”
Cincinnati Mayor Charlie Luken said he “wholeheartedly” endorses the plan, as does Hamilton County Commissioner Bob Bedinghaus.
“We've come this far and I'm confident this plan is the best way to guarantee a world-class riverfront,” Mr. Bedinghaus said.
But Commissioner John Dowlin said he needs more information before making up his mind. Mr. Dowlin said he likes the plan because having the port authority deal with The Banks will allow commissioners to get back to the regular business of government — jails, welfare reform and workforce development, just to name a few.
“But when we first created the Port Authority, one of the things we were promised is that it would be self-supporting,” Mr. Dowlin said. “It's not. So I think we need to look at this in detail.”
The laws that govern port authorities vary widely from state to state. In Ohio, port authorities can issue bonds, use eminent domain to acquire property, cross political jurisdictions and pay no sales tax on purchases.
Jeff Finkle, president of the Council for Urban Economic Development in Washington, D.C., said port authorities have been successful in many different regions operating under many different rules.
“Where they exist, you can find a fair amount of success,” Mr. Finkle said. “Ohio's statutes are very strong when compared to others in the nation.”
But when Hamilton County created its Port Authority three years ago, many of those powers were restricted because the entity was to focus exclusively on cleaning up abandoned industrial sites.
“The concept of enhancing the Port Authority makes perfect sense,” said city Councilman Todd Portune.
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