The new Cincinnati Bell Connector streetcar system may be changing more than just how people get around in Cincinnati — one of its funding sources may serve as a model for future development in the city, Cincinnati.com reports. Beginning January 1, 2015, “property owners and real estate developers in Over-the-Rhine and Downtown seeking tax abatements for redevelopment projects could direct a portion of their savings to the streetcar’s operating fund,” according to the article. Voluntary Tax Incentive Contribution Agreements (VTICAs) have been “bringing in about $694,000 a year, according to independent consultant HR&A Advisors.” City Councilman Kevin Flynn “said the VTICA program has been a huge success story that could serve as a development model for other Cincinnati neighborhoods,” while Cincinnati Mayor John Cranley’s goal was to “ensure those people who benefit most from the streetcar (the property owners) pay expenses that would otherwise be paid by Cincinnati residents,” the article reports. HR&A completed a yearlong study of Cincinnati’s economic development incentive programs (see our June 16, 2016 blog post) and recommended “expanding the use of instruments similar to VTICA in an effort to recapture property tax revenue to invest in infrastructure and other catalytic projects.”
Cincinnati’s streetcar funding may be “model” for reforming tax incentives
