Cincinnati streetcar cancellation could cost $80 million, excluding potential lawsuits, independent auditor says

Terminating Cincinnati's streetcar project would cost up to $80.1 million, while completing the already-under-construction project would cost up to $107.5 million, according to a report released yesterday by global auditing firm KPMG L.L.P.

The audit by KPMG, which was requested by newly elected Mayor John Cranley, also estimated it would cost up to $2.4 million annually to operate and maintain the streetcar. The termination costs did not include potential lawsuits by contractors if the city shuts down the project.

Cranley, who campaigned on a promise to cancel the streetcar, requested the audit after being sworn in as mayor in fall. After the results were released, Cranley said he did not believe it would be "financially prudent" for the city to proceed with the streetcar project, according to local news media reports.

The Cincinnati City Council was scheduled to discuss today whether the project should continue. Earlier this month, the council voted to suspend streetcar construction until the independent audit was completed.

Also, the Federal Transit Administration has given the city until midnight tonight to decide whether to proceed with the project or it will pull nearly $45 million in federal funds for the project. Meanwhile, streetcar advocates are gathering petition signatures calling for a ballot measure that would put the project up for a vote.