Tuesday, April 04, 2006
Tram Cost Increases -- Again
The cost of building an aerial tram from Portland's "Pill Hill" hospital district to the South Waterfront or So What district has increased by another $1.6 million -- either to $51.6 million or $57.5 million, depending on who is counting. The tram is under construction but contractors expect to run out of money in a few weeks.
Portland's city council will vote on April 26 on whether to increase the city's share of funds by at least $10 million. By that time, however, so much will have been invested in construction that it would probably be cheaper to finish it than to tear down the parts that have already been built.
The hospital that will form one terminus of the tram and the developers at the other terminus have each agreed to put up more money to finish the tram -- although in the case of the developers most of the money they "put up" is tax-increment financing that would otherwise go to schools and other urban services. The hospital says it has to have the tram so that doctor's offices will be within fifteen minutes of the hospital -- though it adds that if the tram is not built, it will move those offices to Hillsboro, well over thirty minutes away.
In an editorial today, the Oregonian admits that the city and other parties to the deal all knew "or should have known" the project was going to be far more expensive than the original $15 million estimate. But the paper says the tram should be finished anyway. But most Portlanders know that the editor of the editorial page is married to the hospital's chief public relations officer, so what the paper says no longer has any credibility.
Portland's city council will vote on April 26 on whether to increase the city's share of funds by at least $10 million. By that time, however, so much will have been invested in construction that it would probably be cheaper to finish it than to tear down the parts that have already been built.
The hospital that will form one terminus of the tram and the developers at the other terminus have each agreed to put up more money to finish the tram -- although in the case of the developers most of the money they "put up" is tax-increment financing that would otherwise go to schools and other urban services. The hospital says it has to have the tram so that doctor's offices will be within fifteen minutes of the hospital -- though it adds that if the tram is not built, it will move those offices to Hillsboro, well over thirty minutes away.
In an editorial today, the Oregonian admits that the city and other parties to the deal all knew "or should have known" the project was going to be far more expensive than the original $15 million estimate. But the paper says the tram should be finished anyway. But most Portlanders know that the editor of the editorial page is married to the hospital's chief public relations officer, so what the paper says no longer has any credibility.
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