Cincinnati to Void PPP
Elections have consequences.
Seems the city of Cincinnati,OH, had cut a deal with its port authority, Xerox, and others to privatize the parking in the city. The 50 year deal would garner the city $85 million up front plus $3 million a year. So far so good.
However in a recent election, the plan became a political football and the new mayor has said that he would unwind the deal. The problem is that the deal is signed, bonds are being sold, and stopping it now may have a considerable cost to the city. The Port Authority has agreed to hold up on the bond sales, hoping to “educate” the incoming Mayor and three new council members.
According to the local media, the Mayor elect has said that he wants to proceed with many of the projects funded by the deal, but has no real plan to do so.
I know nothing about this deal and have no dog in the fight. However it is a great example of how elections have consequences.
When major projects are planned, its good to get bipartisan support so when the political winds change direction, the project can proceed. I will track the progress of the PPP in Cincinnati and keep you posted.