A Desire Named Cincy Streetcar

The Cincinnati City Council is expected to approve some funding today for streetcars. the Streetcar movement is popular in the Cincinnati blogosphere (They’re way more hip than riding a bus, right?). And there are some points to be made by activists in favor of streetcars. However, I think the streetcar effort is primarily driven by the big property owners along the proposed route (some of whom are on city council). The project takes tax dollars from everyone across the city and spends them to improve transportation along a certain 3.9 mile stretch. This will certainly improve the land values for those who are fortunate enough to own property along the chosen route. The area will gentrify. But, these improved property values will be paid for by the taxes of everyone else in the city. It’s a classic case of concentrated benefits and diffuse costs. In other words, I would say it’s pork for a certain group of Cincinnati elites.

This is not to say the streetcar is a bad idea. I’m undecided, but certainly not convinced.

The relevant question is - is this the best use of the taxpayers’ money? Chris Bortz today argued that it was and said it would have a 14 to 1 return (!!!). Yet, there’s another form of public transportation, which the city has been cutting recently, which appears to be a better investment - buses. They’re more flexible to respond to changing demand, require no major capital investment, and help people from the suburbs gets to their jobs downtown (i.e. a big economic return for the region). Streetcar backers have not been able to put together a convincing argument on why a small streetcar is better than additional busses. I suspect the city will move forward with this project anyway, not because of the debate, but because the streetcar has important support from relevant special interests in Cincinnati. This is unfortunate.

Update 4/20:
I don't want to give the impression that I'm alleging some conspiracy emanating from a smoked filled room. The supporters who would benefit are pretty visible - Besides the activists who spoke at the city council hearing, many of the other speakers were various business/land owners who would benefit from a streetcar. I've read Tom Luken also made this point at the hearings (not that I necessarily want to be associated with him). They probably genuinely believe it's a good project, but they are lobbying for tax dollars to help themselves. So, it's a classic case of a small group of people who would benefit and a large group who will pay the cost (city taxpayers). I don't think the streetcar will be a disaster, I just think it's probably not the right investment decision, and may be being made for the wrong reasons. Could be worse...