Friday, January 13, 2006
Portland Tram Wastes Taxpayers' Money
Construction has already begun on an aerial tramway between the Oregon Health Sciences University (OHSU) hospital in the Tualatin Hills and the Willamette River waterfront, but no one knows how much the tramway will cost. It is already at least 200 percent overbudget.
Oregonian columnist Steve Duin reveals that the tram is the dream of OHSU President Peter Kohler, who wanted an easy way for doctors to get from the hospital to a planned medical complex on the river. The initial $15 million budget for the tram was put together by two people who had no experience at all building such tramways.
Since then, as revealed in this Oregonian article, the tram's budget has tripled to $45 million, with OHSU picking up most of the tab. But at least $5 million remains, and the city and other agencies all say they are not interested in paying that extra amount. Moreover, no one knows the real final price tag. OHSU wants the tram to be finished by September, and the overtime required to meet that deadline will probably increase the cost further. Since they are already short by $5 million, no one wants to commit to covering any extra costs.
Another problem, as noted in this Oregonian story, is that by the time the city council was asked to approve the tram, the city staffers who made the original $15 million estimate knew that the real cost was going to be much higher. But they did not tell the city council, which approved the plan in ignorant bliss. Now they act betrayed, but of course, the same thing has happened with every light-rail line and streetcar line they approved in Portland.
One possible source of additional money is tax-increment financing on the Willamette River properties whose values will supposedly be enhanced by the tram. A problem there is that any property owned by non-profit OHSU, including 19.5 riverfront acres donated to the hospital by the Schnitzers, one of Portland's wealthiest families, is exempt from taxes. Of course, anyway you look at it, it is likely that taxpayers will somehow get stuck for the bill. Once ground has been broken, the city would never consider a proposal to stop throwing good money after bad.
More comments on the tram can be found in Jack Bog's Blog.
Oregonian columnist Steve Duin reveals that the tram is the dream of OHSU President Peter Kohler, who wanted an easy way for doctors to get from the hospital to a planned medical complex on the river. The initial $15 million budget for the tram was put together by two people who had no experience at all building such tramways.
Since then, as revealed in this Oregonian article, the tram's budget has tripled to $45 million, with OHSU picking up most of the tab. But at least $5 million remains, and the city and other agencies all say they are not interested in paying that extra amount. Moreover, no one knows the real final price tag. OHSU wants the tram to be finished by September, and the overtime required to meet that deadline will probably increase the cost further. Since they are already short by $5 million, no one wants to commit to covering any extra costs.
Another problem, as noted in this Oregonian story, is that by the time the city council was asked to approve the tram, the city staffers who made the original $15 million estimate knew that the real cost was going to be much higher. But they did not tell the city council, which approved the plan in ignorant bliss. Now they act betrayed, but of course, the same thing has happened with every light-rail line and streetcar line they approved in Portland.
One possible source of additional money is tax-increment financing on the Willamette River properties whose values will supposedly be enhanced by the tram. A problem there is that any property owned by non-profit OHSU, including 19.5 riverfront acres donated to the hospital by the Schnitzers, one of Portland's wealthiest families, is exempt from taxes. Of course, anyway you look at it, it is likely that taxpayers will somehow get stuck for the bill. Once ground has been broken, the city would never consider a proposal to stop throwing good money after bad.
More comments on the tram can be found in Jack Bog's Blog.
Comments:
Post a Comment
