City against riverside intermodal terminal, faces legal penalties

Queensgate Terminals (Queensgate) is looking to enter into a lease with the City for portions of 30-acres of land along the Ohio River in Lower Price Hill, but it does not have City support.

In a lawsuit filed in October 2005, Hilltop (owner)/Queensgate (lessee) wanted eminent domain declared upon itself because the right-of-way for the Waldvogel project would effectively block off access to the site from River Road, rendering it useless unless accessed by boat.

The lawsuit was settled in February 2007. The terms of the settlement required the City to buy the property for $5 million, 80 percent of which was covered by Federal Highway Administration and ODOT funds, and then enter into a lease agreement with Queensgate.

Queensgate plans to use this land for a multi-modal shipping facility that will feed freight to a larger facility that they're developing near Jeffersonville, Ohio.

Entering into a lease with the City would give Queensgate full access to the site and three years free of rent, but would require maintenance of the site and $40,000-plus per year in property taxes. After the Waldvogel Viaduct project is completed, Queensgate would have to pay for maintenance, property taxes, and market-rate rent (estimated at $200,000).

The City could terminate the lease at any time if any of the land was needed for the Viaduct or for another municipal purpose.

On March 7, Councilman John Cranley introduced a motion that the lease should be rejected and that the property should be used as greenspace.

Cranley's motion was signed by all 9 Council members.

On March 16, the ordinance for the lease was disapproved by the City Planning Commission, even though they cited its promise as a job and tax generator as part of Cincinnati's traditional "working riverfront".

In a May 8 report to Council, City Manager Milton Dohoney expressed reservations about the property becoming public greenspace, noting the four train tracks that cars would have to cross and the lack of the main access point's (Evans Street) ability to handle that much vehicular traffic.

He also adds that a 25-foot corridor along the viaduct is dedicated to a future bike trail and that a park is already planned for an area near the mouth of the Mill Creek.

The ordinance is now pending sunset and will likely die without coming to a Council vote.

Failure on the City's part to enter into a lease with Queensgate would mean that the City would have to find another way to fund the maintenance of a $5 million site that has no tenant. They could also face legal damages of $1 million or more and legal fees.

Design work for the viaduct is expected to be completed in 2009 with construction beginning in 2011.

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