Dan Horn, Sharon Coolidge, and Janelle Gelfand

Cincinnati's iconic Union Terminal and Music Hall need a combined $331 million to transform them from crumbling buildings to state-of-the-art cultural showcases.

That's the conclusion of business leaders who have spent seven months studying the historic buildings and coming up with a plan to save them.

Their plan goes to Hamilton County commissioners Monday, but The Enquirer got an exclusive first look at the details.

The bottom line: About two-thirds of the renovation costs – more than $225 million – would come through a higher sales tax or property tax. The rest would come from $40 million in private donations and another $66 million from local, state and federal tax credits and grants.

Supporters will ask the commissioners to put their proposal on the November ballot so they can make the case to voters that this is the best way to fix Music Hall, where the symphony and opera perform, and Union Terminal, home to the Cincinnati Museum Center. Both buildings are owned by the city.

They're recommending a quarter-cent sales-tax increase that would last about a decade and cost Hamilton County residents an average of about $23 a year, while also bringing in millions of dollars from non-county residents.

After talking about renovations for more than a decade, business and arts leaders say, quick action is needed to prevent the buildings from falling further into disrepair and to avoid ever-higher maintenance and construction costs.

"This is the point we have to move ahead or we will regret it forevermore," said Wick Ach, CEO of Hixson Inc., the Cincinnati architectural firm that vetted the cost of renovating Union Terminal.

"This is absolutely the last, best chance," said Patricia Beggs, CEO of the Cincinnati Opera. "It's the optimum time for this to happen."

The proposal can't go before voters without the commissioners' OK, though, and they are decidedly more circumspect. Already burdened with a stadium sales tax that has fallen far short of expectations, commissioners are worried about going down that road again.

Commissioner Chris Monzel didn't even support holding public hearings on the issue and said he'd like to wait at least another year to make a decision.

"Because of what happened with the stadiums, it really gives me pause," Monzel said. "We're putting taxpayers on the hook."

His two colleagues on the board, Todd Portune and Greg Hartmann, are keeping their options open about Union Terminal and Music Hall, which draw a combined 1.5 million visitors a year. Both say the buildings are important to the community, but neither is committed to using tax dollars to fix them. Neither offered another solution, but both have said the city should take more responsibility.

Hartmann said he's not sure a November vote is possible given the amount of information he'll need to make up his mind. He said a vote in May might be more realistic.

"Any proposal has to be 100 percent solid," Hartmann said. "There have been mistakes made before. I don't think it's fair to compare this to the stadiums, but the unknown scares me."

Costly but 'stunning' changes for buildings

Advocates of the plan hope to alleviate those concerns Monday with a presentation that will cover the scope of both projects, construction costs, financing and recommendations for raising public and private dollars.

They say the renovations would transform the buildings, not just patch roofs and fix plumbing.

Music Hall's fortress-like exterior would become more open and inviting, with a renovated entrance and windows returning to spaces that are now bricked over. Inside, patrons would find a more intimate auditorium with fewer obstructed views and better acoustics.

"It will be stunning," Beggs said of Music Hall. "It will go back to all of the original grand proportions."

Union Terminal's transformation would include more structural work on the roof and lower levels, but architects involved in the project say it, too, will be more visibly appealing to visitors.

It will not, however, get new exhibits or a new Children's Museum, something museum officials say they will have to cover through operating funds and future donations.

Museum Center CEO Doug McDonald said Union Terminal's deteriorating condition has scared away some donors. The renovations, he said, would open up exhibit space, make the building more attractive and reassure donors that the museum is here to stay.

"Buildings are part of the resource. It's a part of brand equity," McDonald said. "It drives donors, and it drives success.

"When was the last time you went to a museum and said, 'I loved the museum but hated the building?' That doesn't happen."

Union Terminal, built as a Depression-era train station, would be more expensive to fix, with a renovation price tag of $208 million compared to Music Hall's $123 million. That's why one of the big questions surrounding Union Terminal, more so than Music Hall, is whether it would make financial sense simply to build a new facility or move into another building.

McDonald said the architectural and engineering research done in the past seven months answered that question with an emphatic no.

Steve Kenat, an architect with GBBN in Cincinnati, led a team that compared the cost of rebuilding, relocating and renovating the Museum Center. He estimated the cost of a replacement building at about $353 million and the cost of moving into an existing building Downtown at $260 million.

Problems with a move include finding space for all the attractions now at Union Terminal, including the children's museum, the natural history museum, an Omnimax theater and space for temporary exhibits.

"We've looked at the other alternatives and kicked those around," Kenat said. "We are, in fact, getting a really good deal in terms of renovating Union Terminal."

Stadium woes hang over tax proposal

Everyone involved, though, acknowledges that transforming Union Terminal and Music Hall is an expensive proposition. They also know commissioners and voters will need some convincing after years of grappling with budget woes brought on by stadium expenses.

They say comparisons to the stadium project, which cost about $1 billion, are off base because the renovation costs are more certain, the assumptions about tax revenue are more conservative and the terms of the deal are more friendly to taxpayers. Unlike the stadium sales tax, which assumed 3 percent annual increases in tax revenue, the proposal for Union Terminal and Music Hall assumes zero economic growth and revenue increases. In other words, the tax is designed to bring in enough money to cover costs even if the economy is lousy. What's more, supporters say, the money raised from the tax will be limited to well-defined renovations, and so taxpayers won't be on the hook for future expenses, as they are with the stadium tax.

"The fence around this would prevent it from being used for anything else," said Murray Sinclaire Jr., president of Ross Sinclaire and Associates, a financial services firm that crunched the numbers for the renovation plan. He said he is recommending a quarter-cent sales-tax increase, which would raise the county's sales tax from 6.75 percent to 7 percent, or7 cents on the dollar.

That would pay off the renovation debt in about nine years and, based on The Enquirer's calculations, would mean an average tax increase of just over $23 a year for Hamilton County residents.

Other possibilities are a half-cent sales tax increase, which would pay off the debt sooner but is less politically palatable, or a 1.0 mill property tax increase, which would cost owners of a $100,000 home about $35 a year.

Murray said the sales tax is preferable to the property tax because it pays off the debt faster, limits interest and spreads the burden to non-Hamilton County residents. Almost half of Hamilton County's sales tax revenue comes from people who live outside the county.

The sales tax rate in 66 of Ohio's 88 counties already is 7 percent or higher. More than 50 counties charge at least 7.25 percent.

Business heavyweights back renovation plan

Whatever commissioners ultimately decide to do about the proposed ballot issue, the plan to renovate Union Terminal and Music Hall is the most comprehensive yet. Ideas have been batted around for years, but none found the political backing and public support needed to go forward.

This time, though, several heavyweights from the business community are on board, most notably former Procter & Gamble CEO Bob McDonald. Other business leaders, such as Ach, have volunteered their architects, engineers and accountants to produce an exhaustive analysis of the buildings and the cost of fixing them.

Big donors are stepping up, too. Supporters of the proposal say they've secured $35 million in pledges, contingent on voter approval of a tax increase, and expect to reach their $40 million goal. The largest of those donations is a $10 million pledge from the Haile U.S. Bank Foundation. Kroger, Procter & Gamble and others have promised $1 million or more but won't say precisely how much they're giving.

"We've all been at the table on this issue forever," said Tim Maloney, CEO of the Haile Foundation. "It's become glaringly obvious that the longer we wait, the more onerous it becomes to do it."

He said he's confident the cost estimates and financing plan for both renovations are accurate and reliable. "After we went through the vetting process, we felt comfortable with the numbers," Maloney said.

Construction could start as early as 2015 at Union Terminal and 2016 at Music Hall if the measure gets on the November ballot and passes.

Supporters first must convince county commissioners. If they're successful, voters will be up next.

Despite the complexity of the projects, they say their pitch is relatively simple: The buildings are important to the community, and the cultural institutions that call them home will suffer if the walls around them are crumbling.

"We've got to shore up the buildings," said Elizabeth Pierce, spokeswoman for the Museum Center. "These buildings are a platform, a stage, for all the things that go on inside."

Union Terminal fixes cheaper than moving, rebuilding

What is the problem at Union Terminal? A renovation is needed to fix deterioration from decades of structural and water damage. Just behind the expansive rotunda, warped walls, rusted steel and crumbling ceilings threaten the building's long-term survival.

How much will it cost to renovate Union Terminal? $187.7 million. When financial details like interest and the cost of securing historic tax credits are included, the number climbs to $208.2 million. Calculations by the teams of architects and engineers show renovating the 81-year-old building is cheaper than constructing a new building or moving the museums Downtown.

What will the money be used for? The project will involve exterior restoration and preservation; replacing the heating and air conditioning that date to the 1980s; restoring the fountain outside and the Dalton Street tunnel under Union Terminal; replacing the lighting and electrical systems; parking lot repair; fire protection upgrades and a historic renovation of the outside canopy that collects water and leaks back into the building and rotunda.

What will it look like when it's done? Brighter, structurally sound and similar to today. The goal is to set the stage for better exhibits.

What will happen to the Duke Energy Children's Museum? It will stay the same. The renovation will open up areas to make space for new museums, possibly even a science center. But that is not part of this project.

Will the Museum Center close? At times parts of all the museums will close. The final design plan is expected to last though 2015. Construction will start in the fall of 2016 and take as long as 30 months.

As a Hamilton County homeowner, will I still pay to operate the Museum Center? Currently the owner of a $100,000 home pays $5 a year for a property-tax levy that brings in $3 million a year to pay a portion of the cost to operate Union Terminal. That levy expires at the end of 2014 and won't be renewed. A renovated Union Terminal will cost less to operate, but museum officials expect donations will be needed to pay for $2 million a year in operating costs.

Why not build a new Museum Center? Architects said the cost of constructing a new building on the same land would cost $353.5 million. That includes the cost of tearing down Union Terminal: $11 million.

Union Terminal is too far away for the city center. Why not move the museums Downtown? An alternative facility Downtown – which needs to be big enough to house the three museums – would cost $260 million. One of the biggest issues would be parking, estimated to cost $20 million to $38 million. Moving the exhibits would cost $55 million.

The process seems rushed. Why not take more time to vet it? Thousands of hours have been devoted to evaluating the project since December. Every season that goes by causes significant damage to Union Terminal. Deferring construction one year would cost an additional $11.3 million, the task force says.

Wait, didn't we already fix Union Terminal? The project has been evaluated by Hamilton County Commissioners several times since 2007, but each time fixes were put off.

It's not like the building will fall down tomorrow, so why do anything? Wick Ach, CEO of Hixon, an architectural and engineering firm that helped evaluate the plan, said: "If we create a great infrastructure, it will allow the Museum Center to create great exhibits. If we don't, we're finished."

Source: Cultural Facilities Task Force presentation to The Enquirer

Tax options to fix Union Terminal and Music Hall

The total cost of fixing both buildings is $331 million ($123 million for Music Hall and $208 million for Union Terminal). Taxpayers would be asked to cover about two-thirds of that cost – about $225 million – and three ideas on how they should do it have been suggested.

Quarter-cent (0.25 percent) sales tax increase:

Amount raised $35 million a year

Cost per Hamilton County resident:

Average of $23 a year (roughly half of sales tax revenue comes from people who live outside the county)

Estimated years to pay off debt:

9

Total interest costs:

$79.9 million

Half-cent (0.50 percent) sales tax increase:

Amount raised $70 million a year

Cost per Hamilton County resident:

Average of $46 a year (roughly half of sales tax revenue comes from people who live outside the county)

Estimated years to pay off debt:

4

Total interest costs:

$20.8 million

Property tax increase of 1.0 mills:

Amount raised $15.9 million a year

Cost per home owner:

$35 a year per $100,000 of property owned

Estimated years to pay off debt:

30

Total interest costs:

$200.9 million

Sources: Cultural Facilities Task Force; Enquirer research

It's been more than 40 years since Music Hall renovation

After years of planning, debate and a stalemate over a lease deal with the city, which owns Music Hall, a revitalization plan now has been finalized.

Has the scope changed since the last public news in 2012? No. The nonprofit developer Cincinnati Center City Development Corp. (3CDC) was charged with scrutinizing the plan. From an original price tag of $165 million, they found ways to bring the budget to a more realistic level while maintaining most of the elements of the original plan.

How much will it cost to renovate Music Hall? $109.55 million. That breaks down to $96.05 million in "hard" costs (construction) and $13.5 million in design and professional fees. When details such as interest and the cost of securing historic tax credits are added, the number climbs to $123 million.

What is the problem with Music Hall? The 136-year-old hall, designed by Cincinnati architect Samuel Hannaford, has not undergone a major renovation in more than 40 years. In its current state, Music Hall is a "fixer upper." Behind the scenes, it needs updating of basic mechanical, plumbing and electrical systems and foundation up-shoring. Backstage areas for performers are limited. For the public, it has fewer restrooms than are needed for the demand. Handicap accessibility is challenging. Fixtures and décor are dated. Seating in Springer Auditorium is cramped, and at least 800 seats have obstructed views.

What is included in the plan? Windows will be unbricked on the Elm Street side as well as around side walls. The escalators will be replaced. High-speed elevators will be installed in the south wing, where current symphony offices will also be updated. There will be better concessions and more restrooms, and public areas will include a new box office and gift shop. The Critics Club will be moved from its current locale down a dark stairwell to a more accessible place. There will be improved accessibility throughout the building.

What about Springer Auditorium? There will be a complete reconfiguration of Springer Auditorium, which will be shortened on the main floor by 10 to 15 feet. Roomier seats will be installed, and there will be fewer seats underneath balconies. The multipurpose, 3,417-seat concert hall, which presents performances by the Cincinnati Symphony Orchestra, Pops, May Festival, Cincinnati Opera and Cincinnati Ballet, will be downsized to seat a maximum of 2,500. Seating will be reduced to 2,150 for concerts by the Cincinnati Symphony; 2,374 for the May Festival; 2,394 for the Pops; and about 2,400 seats for opera and ballet.

What about the stage? The Cincinnati Symphony and Pops will sit on a stage that can be raised and lowered by three hydraulic lifts. Known as a thrust stage, it will extend into the hall from the current stage. Architectural details such as the historic proscenium arch and balcony pillars will remain. Also remaining: The two-ton crystal chandelier. New elements include a new orchestra shell for the symphony and a suitable floor for the ballet.

How did the revitalization group arrive at the seat count? Some 800 obstructed-view seats were eliminated, giving patrons more leg room. "This is something we (the resident companies) have discussed for about eight years, and we came to a full agreement in 2012," said Patricia Beggs, general director and CEO of Cincinnati Opera.

If all goes according to plan, when would construction start? In May or June of 2016

Source: Cultural Facilities Task Force presentation to The Enquirer

MUSIC HALL

Registered as a National Historic Landmark

Opened: 1878

Architect: Samuel Hannaford

Size: 290,000 square feet, with one main auditorium seating 3,417

Visitors in 2013: 247,085

Need to fix: Updating of mechanical, plumbing and electrical systems; shore up foundation; new seating, new "thrust stage" for the orchestra, reconfiguration of Springer Auditorium, the main hall; backstage technical updates for opera production, lighting, patron amenities.

Project cost: $123.5 million

Who uses it: Cincinnati Symphony Orchestra and Pops, Cincinnati Opera, Cincinnati May Festival, Society for the Preservation of Music Hall

Owned by: City of Cincinnati

Managed by: Cincinnati Arts Association

UNION TERMINAL

Registered as a National Historic Landmark

Opened: 1933

Architect: Alfred T. Fellheimer, lead architect for New York's Grand Central Terminal

Size: 500,000 square feet

Number of visitors in 2013: 1,243,126 (includes special exhibits)

Need to fix: The historic art deco train station in Queensgate that is home to the Cincinnati Museum Center needs a renovation to remedy deterioration from decades of structural and water damage. Just behind the expansive rotunda, warped walls, rusted steel and crumbling ceilings threaten the building's long-term survival.

Project cost: $208.2 million

Who uses it: Cincinnati History Museum, Duke Energy Children's Museum, Museum of National History and Science, Robert D. Lindner Family OMNIMAX Theater, Cincinnati History Library and Archives

Owned by: City of Cincinnati

Go to the meeting

Hamilton County commissioners will hear about the plan to fix Union Terminal and Music Hall at noon Monday. They'll meet on the 6th floor of the county administration building, 138 East Court St., Downtown.

The task force

Robert A. McDonald: Committee chairman; retired chairman, president, CEO of Procter & Gamble

J.Wickliffe Ach: Hixson Architects, president, CEO

Theodore N. Berry: Hamilton County Municipal Court judge

James E. Evans: American Financial Group, director

Scott D. Farmer: Cintas Corporation Corp., CEO

William Froehle: Plumbers, Pipefitters and M.E.S. Local 392, business agent

The Rev. Michael J. Graham: Xavier University, president

Thomas L.Guidugli Jr.: International Alliance of Theatrical Stage Employees Local No. 5 (IATSE), business agent

Robert Killins: Greater Cincinnati Foundation, community investment program officer

S. Craig Lindner: American Financial Group, co-CEO/co-president, director

Timothy J.Maloney: Carol Ann and Ralph V. Haile, Jr./U.S. Bank Foundation, president, CEO

W. Rodney McMullen: Kroger Co., CEO

Kathryn E. Merchant: Greater Cincinnati Foundation, president, CEO

Keith A. Oliver: Kroger, vice president, facility engineering

Mario San Marco: Eagle Realty Group LLC, president

Robert Sheeran: Xavier University, vice president for facilities

John I. Silverman: Midland Atlantic Development, managing principal; representative from Tax Levy Review Committee

Murray Sinclaire Jr.: Ross, Sinclaire & Associates LLC, president, CEO

Liza Smitherman: Jostin Construction, vice president, professional development

Shiloh Turner: Greater Cincinnati Foundation, vice president for community investment

Kathy Wade: Learning Through Art, CEO

Bernadette Watson: Consultant, government affairs

Local sales tax rates

Hamilton County 6.75 percent. Of that, 5.75 percent goes to the state, 0.5 percent goes to county operating expenses and 0.5 percent pays for the county's professional sports stadiums.

Butler County 6.5 percent

Clermont County 6.75 percent

Warren County 6.75 percent

Northern Kentucky All of Kentucky is 6 percent