Cincinnati Plans Bond Sale For Streetcar Project

Cincinnati Plans Bond Sale For Streetcar Project

There's a new muni bond issue in the works, folks, but will you want to buy in?

If you're out in the Ohio area, folks, you've got an opportunity to get in on a new bond market--the city of Cincinnati has just approved by a six to two margin a measure to borrow sixty four million dollars via a bond initiative to install a streetcar system.

Supporters called it a "bold new initiative", while critics called it a move that would "hurt their budget" and leave them "on the hook for it for many years to come".

The rates haven't been decided yet for this bond, but several factors are no doubt going to come into play in deciding them--for instance, the overall economic condition of both Cincinnati and Ohio itself, property values in and around Cincinnati, and the numerous other factors that will help determine the ability to pay back the loan. But also dragging down the state of things there is a possible lawsuit in the works around this move, as well as the overwhelming possibility that the bond issue wouldn't even provide sufficient cash by itself, as fully fifty million bucks more would be needed to make the streetcar program happen.

However, there's a pretty solid backstop for these bonds--if projected revenues fall short, money from the recent sale of the Blue Ash Airport will be used to further pay off the bonds. That's a pretty decent guarantee by any standard...but how will that affect the rates? No one knows yet, but this might be one to watch.

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