Tuesday, June 19, 2001
Tax slump stalls 'The Banks'
Riverfront plan delayed by costs, slower-than-expected economy
By Dan Klepal
The Cincinnati Enquirer
Hamilton County sales tax receipts have been trickling in at such a slow pace it threatens to throw off the construction schedule for the riverfront neighborhood called The Banks.
That has left members of the Port Authority scrambling to find other sources of cash that will allow construction of their riverfront vision to begin next year as sched uled.
Voters approved a half-penny sales tax increase in 1996 to build two sports stadiums and spur economic development along the riverfront. The Banks a neighborhood that incorporates shops, offices, housing and a park between the two new sports stadiums is that development.
But soaring costs of build ing along the riverfront, combined with a slowing economy, forced Hamilton County officials to tighten their belts.
The fact of the matter is that sales tax has not come in at its historical average, said Suzanne Burke, the county's budget director. There is, at a minimum, a delay in construction unless other revenues are identi fied.
The assumption has always been that the money will be there and that we'll pay for the parking when it's needed. But the money isn't there right now.
The parking garages are needed to lift the buildings out of the flood zone.
Tom Humes, who helped draw up The Banks proposal as part of the Riverfront Ad visers and is now a member of the Port Authority, said he's sure sales tax receipts will rebound.
But Commissioner Todd Portune said there is no money for The Banks.
It's a very real problem. If people want to move forward, we have to all work together to find ways to reduce the current demand on the county's sales tax budg et.
Foremost, that means renegotiating the county's lease with the Bengals, Mr. Portune said.
Jack Rouse, who was chairman of the Riverfront Advisers and is a member of the Port Authority, said interim financing wouldn't berisky given the sales tax history of bouncing back after periods of decline.
All development is a gamble to a certain extent, Mr. Rouse said.
Commissioner Tom Neyer said he believes the sales taxeventually will allow for construction of the parking garages.
We've had a few off months at the front end of a 35-year financial model, Mr. Neyer said. That is a concern. But it's not cause to dump a plan for the generations.
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