By Ben Dickison, Sports Editor

The Cincinnati Southern Railway Board of Trustees unanimously selected international financial management firm United Bank of Switzerland (UBS) to oversee the $1.6 billion trust fund that will be created as the Queen City sells its control of the railroads within city limits on Jan. 22.

The board is composed of former Cincinnati Mayor Charlie Luken, Certified Public Accountant Paul Sylvester, local attorney and chairman Paul Muething, former Mayor Mark  Mallory and former City Councilwoman Amy Murray. The Board of Trustees decided on UBS over 16 other applicants, including local firms Fifth-Third Bank and FEG Investment Advisors. 

The Board narrowed the list of 17 firms to a shortlist of five for the final decision. Fifth-Third and FEG made the shortlist, while Ascension Wealth Management, located in Sycamore Township, did not. Ascension Wealth Management was the only minority-owned firm to place a bid for the role.

While Ascension was not selected to the shortlist, the Board Of Trustees is adamant that one of the core tenants of USB’s new role will be to ensure equitable development of infrastructure and fair distribution towards underserved neighborhoods.

“I want to have as much impact on the African-American community as we possibly can with the investments of this money,” Mallory, the only Black trustee on the current board, remarked.

Mallory believed this impact can be more effectively achieved through the consultation of portfolio managers, Black-owned banks and impact investment in addition to UBS, expressing concern that the chosen firm will not effectively represent minority interests. 

“If there is an opportunity (to collaborate with portfolio managers and Black-owned banks), I would like to explore that opportunity in addition to money managers, in addition to impact investors,” he said. 

The funds generated by the sale of the city’s railroads to Norfolk Southern will translate into revitalization of the city’s infrastructure. The budget will be divided as follows, according to the Cincy on Track infrastructure plan: $101 million for streets and sidewalks, $49.6 million for public services, $40.7 million for parks, $31.1 million for health and $27.6 million for recreation.

Amid the transition from leasing the railroad to annual returns generated from Norfolk Southern, people anticipate uncertainty on how these funds would be used. Luken noted that, “There may not be a perfect comfort level on day one.”

“But I don’t see anyone better in this (group) that gives me a better answer than UBS,” he stated.

The division of UBS that will control the trust fund for Cincy on Track currently manages over $91 billion in global assets. UBS estimates a 6.5% return on investment for their service and proposed to charge fees between .06% and 1%.

“(2026) is the year we should see a nice, hefty return on our investment,” said Vice Mayor Jan-Michele Lemon Kearney. Cincy on Track is a plan for a return of $250 million over 10 years.

Some specific investments slated to take place as a result of this newly generated revenue include the construction of more speed bumps, converting electric traffic signs to LED lights, the rehabilitation of Mill Creek road’s bridge and renovations to fire and police stations. 

Local common areas such as Smale Park, Mt. Echo Park, Ault Park and Fairview Park will receive upgrades to playgrounds, outdoor basketball courts and baseball fields.

The Cincinnati Southern Railway Board of Trustees will remain intact to manage the revenue generated by the sale, as opposed to their previous role of managing the railroad itself.