Friday, May 05, 2006
Another Billion for the So What District
Portland's high-density boondoggle, the South Waterfront (So What) District, cannot succeed without a billion-dollar light-rail line, says Portland city Commissioner Sam Adams. This is a big surprise to other members of the city council who have had their fill with subsidies and cost overruns to the So What District.
The owners of the Willamette River waterfront land where the So What District is being built originally proposed a moderately high-density housing project of two- and three-story buildings. But that was not good enough for Portland planners, who instead told the landowners that they should build twenty-story office, condo, and apartment towers. To support this development, the city offered the landowners all sorts of tax breaks and other subsidies.
The offices would serve a hospital district located in the hills above the Willamette River and the two were to be connected by an aerial tram that, when approved, was estimated to cost $15 million. So far the cost is up to $55 million -- and city planners admit that they knew the $15 million estimate was way too low when they presented it to the city council.
In addition to the aerial tram, the So What plan called for more than $200 million in other public funds, mainly financed out of tax-increment financing. City planners have already admitted that the tram is not the only public cost that they underestimated; the cost of street improvements are expected to go $50 million over budget.
To supplement the tram, the So What District is supposed to have a streetcar line connecting it to downtown. But now Sam Adams -- coached no doubt by Portland's transit agency -- says a streetcar is not good enough. He wants to run a light-rail line from downtown to So What and then build a $550 million bridge across the Willamette River and extend the light-rail to Milwaukie. Voters rejected funding for this light-rail line in 1998, but the transit agency has made it clear that it intends to build it anyway.
The bridge, of course, would be closed to cars. Meanwhile, another bridge over the river just south of the proposed one is crumbling and in danger of condemnation and the city says it does not have the $100 million it would take to replace it.
Debates over cost overruns and the aerial tram may cost one or two city commissioners their jobs in an election to be held on May 16. Commissioner Adams' timing in announcing that another billion dollars or so is needed for the So What District may add fuel to these city races.
The owners of the Willamette River waterfront land where the So What District is being built originally proposed a moderately high-density housing project of two- and three-story buildings. But that was not good enough for Portland planners, who instead told the landowners that they should build twenty-story office, condo, and apartment towers. To support this development, the city offered the landowners all sorts of tax breaks and other subsidies.
The offices would serve a hospital district located in the hills above the Willamette River and the two were to be connected by an aerial tram that, when approved, was estimated to cost $15 million. So far the cost is up to $55 million -- and city planners admit that they knew the $15 million estimate was way too low when they presented it to the city council.
In addition to the aerial tram, the So What plan called for more than $200 million in other public funds, mainly financed out of tax-increment financing. City planners have already admitted that the tram is not the only public cost that they underestimated; the cost of street improvements are expected to go $50 million over budget.
To supplement the tram, the So What District is supposed to have a streetcar line connecting it to downtown. But now Sam Adams -- coached no doubt by Portland's transit agency -- says a streetcar is not good enough. He wants to run a light-rail line from downtown to So What and then build a $550 million bridge across the Willamette River and extend the light-rail to Milwaukie. Voters rejected funding for this light-rail line in 1998, but the transit agency has made it clear that it intends to build it anyway.
The bridge, of course, would be closed to cars. Meanwhile, another bridge over the river just south of the proposed one is crumbling and in danger of condemnation and the city says it does not have the $100 million it would take to replace it.
Debates over cost overruns and the aerial tram may cost one or two city commissioners their jobs in an election to be held on May 16. Commissioner Adams' timing in announcing that another billion dollars or so is needed for the So What District may add fuel to these city races.
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