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Wednesday, August 15, 2007

Politics Streetcar Haunted By The Ghost Of The Tram

Posted by Scott Moore on Wed, Aug 15 at 3:40 PM

The eastside streetcar, which will run across the Broadway Bridge and down MLK/Grand, is still four years away from being completed, but the city is undergoing the process of how it’s going to get funded. I’ll have more on that after the jump, including how the OHSU tram fiasco is haunting the process.

But first! Here’s something you might actually be interested in. In the current plan, there will be a bridge that takes the streetcar over the railroad lines in the SE as it approaches OMSI. There was some discussion of widening the bridge for bikes and pedestrians, so they could bypass the rail tracks. Currently, it’s a bit of a pain to cross, especially when a train comes, and it’s not entirely safe. The catch: Widening the overpass would cost $3.1 million.

That’s a fat chunk of money, especially considering the trade off—and especially considering that there’s already a bike/pedestrian bridge over the rails. It’s called the Hawthorne Bridge. The plan’s been ditched because of the price tag, but it could get resurrected if there’s a.) political support for it and b.) money to build it.

What do you think, bikers? Is a bridge over the SE train tracks worth $3.1 million?

Now, before I get to the super wonky stuff, check out this video from yesterday’s city council work session on tax increment funding options to pay for the streetcar:

The price tag for the eastside streetcar extension is a whopping $146,917,000. Here's how that breaks down:

$75 million from federal funds
$20 million from the state for the streetcar vehicles
$3.7 million from Metro transportation funds
$6 million from transportation system development charges
$27.18 million from three Urban Renewal Districts ($17 million from the River District, $4 million from the Convention Center district, and $6.184 million from the Central Eastside District)
and $15 million from business owners along the route, through Local Improvement District funds

That funding adds up exactly with the current projected costs, but those costs are considered "low confidence." So what happens if the costs go up? Who pays for it?

That question was discussed at yesterday's city council work session, with the specter of the tram floating through council chambers. When the tram's construction costs skyrocketed, there wasn't a clear plan on who would pick up the rest of the bill, and it nearly shelved the project. For the streetcar, it's been answered up front--in part. It will get funded by more tax increment dollars from the Urban Renewal Areas (which could extend their debt AND threaten other projects in those areas), from yet another LID charge on business owners--or the city will just shorten the route to save money.

When Randy Leonard asked Sam Adams if the city's general fund would get tapped to make up the cost difference, Adams responded, "No... unless you absolutely insist on it." But a few minutes further into his powerpoint presentation, "general fund participation" did, in fact, show up on the list of possible sources of revenue. "Disregard that bullet point," Adams quickly responded.

There was also the question of project management, which will be handled for the city by Portland Streetcar Inc. (PSI)--much in the same way Portland Aerial Tram Inc. managed the tram project. While Adams praised the fact that there would be numerous decision makers, Leonard reminded him that that was one of the tram's major problems; there wasn't a clear leader and clear accountability for the project.

At this morning's streetcar hearing at council, Powell's Books' Michael Powell, who's also the chair of PSI, assured council that the streetcar projects so far "haven't caused any embarrassment to the city or to the PSI board," a clear reference to PATI and the tram project.

As for the Local Improvement District funding... the retail businesses along the route are thrilled to be paying the fee, since the streetcar is projected to add to business development, bring in more customers, and increase their property values. But there are also numerous industrial businesses along the route that have to pitch in, and they're less than confident that the streetcar will bring them much benefit.

Marcus Smith, a property owner along SE 7th, polled 46 of his industrial neighbors, and they universally opposed the project and the LID. Unfortunately for them, the remonstrance (or objection) rate among business owners in the LID was just a bit over 2 percent. In order to derail the project, it needed to be closer to 60 percent.

Council is set to vote on creating the LID on September 6th--just in time for the September 7th deadline to apply for the federal funding for the project.

Comments

Snip: "one of the tram's major problems; there wasn't a clear leader and clear accountability for the project."

Is that really all this needs? That's not a sarcastic question. I wonder if there's so many forces here that a "streetcar czar" would really be able to make much of a difference.

Second, with what sounds like a large margin of support among the businesses for a LID charge increase (although I'm certain that's only up to a point), why is the city talking about taking money from URAs or the GF?

Adams was quick to point out that no matter what the PSI board decides, he's ultimately on the hook for the project, and certainly sounds like he's going to be the "streetcar czar." In fact, I'm pretty sure his personality wouldn't let it be any other way. Many of the "too many cooks in the kitchen" problems happened when "other" commissioners were in charge of transportation. Still, I think there needs to be a clearer, firmer plan RIGHT NOW for what happens if it goes over budget.

As for the LID support--yeah, there's obviously a balance. The more you raise the amount beyond $15 million, the more support you lose. So how much can you squeeze out of the businesses before the politics turns on you? If there was even a 20 percent remonstrance rate, the political fallout would be enormous. My hunch is that if the project goes over budget, increasing the LID amount will be the first target.

The ordinance says the $15 million from property owners is a maximum. While the Council could go back and change that later, it would be bad form and likely affect trust for future Streetcar LIDs (oh yes, there will be more). Dan Saltzman raised the idea of leaving open the potential of charging property owners more if the costs rise in this section, but didn't move an amendment and nobody took up his suggestion. Staff seemed pretty set on keeping in the ordinance that increasing the LID amount won't be an option if costs rise.

Is the streetcar even needed on the Eastside. Are residents and business owners clamoring for a streetcar?

On another similar note, is the Burnside couplet coming or not? As a cyclist, pedestrian, and driver in Portland, I find the streetcar incredibly LAME. It never comes when you want it and the tracks wait to swallow me and bike. Oh, nobody pays to ride it!

Isn't the Steel Bridge about to collapse? Sellwood Bridge anyone? What about more buslines with more frequent service to and from downtown? No expensive infrastructure is necessary for that.

I find it somewhat annoying that our present city leaders wish to pursue expensive transit projects while other city infrastructure crumbles or is neglected. Try biking or driving SE Holgate from SE 39th to SE 52.

I asked this before the new lines were brought on, nobody seemed to care.

What is the purpose of having the MAX go north of Morrison on 4th and 5th?


Seriously... what does this help with? The MAX along these streets blocks more than it serves. It blocks burnside, Portland's busiest DT street. It wiggles on 4th and 5th and confuses drivers and it's sure to have issues with buses that barely fit in a lane as it is.

I understand the desire to hit PSU, but I don't understand why it has to hit chinatown.


Oh well... too late.

I believe the new MAX is going in on 5th and 6th rather than 4th and 5th, but I agree that it snarls more than it solves in terms of the flow of anything downtown.
A big streetcar question that needs to get talked about is why not a streetcar on 82nd? If council can acknowledge a boon to business and property value w/ streetcar placement, why not let the folks out this way in on it?
I know, you can insert joke here about hopping the streetcar to get one of those massages that ends happily ever after, but there are a ton of small business owners that could actually stand to gain, as well as a whole lotta people who rely on mass transit who could stand to have their own people mover.
Other than the fact that it's just not sexy to the powers that be, there's no reason not to.
And yes, 39th, 52nd and Holgate could all use some work.

Rripper,

I understand what your saying about business development and the streetcar, but where would it go on SE 82nd?!? It would suck up a lane on already busy street. That's my point from my original post. I would rather have more efficient buses with extended hours and service than a streetcar.

I hate to sound like Bojack here, but I don't think the streetcar in Portland is all that. On another note, I wish the MAX made fewer stops and had express service. I really don't use the MAX that much right now due to where I live (Woodstock). Bus service makes sense for me. However, I have heard the complaint that the MAX makes too many stops.

I am really curious to see how buses and the MAX interplay on 5th and 6th Ave in the coming future. Again much like the streetcar, why does there need to be a MAX that goes to PSU?!? You can walk there from 5th Ave in 5 minutes or less.

24 hour max and bus lines is what I'm saying. For reasons not so related to this topic.

Max downtown, drink till 2pm... then what?

Taxi Cab Stronghold.

Andrew, bus and max run after 2 in the afternoon. And not to sound like your mother here, but 2pm?!?!

A line down 82nd would be kind of redundant considering that they are putting in the MAX along 205. Also a streetcar would really gum up traffic on a street that is totally auto oriented.

The line down 5th and 6th is being built for multiple reasons. One of the most important is that the current MAX down Yamhill and Morrison will be overcapcity soon and they need an alternative. Also the line will eventually go to Millwaukie which would help out the dood who posted earlier who lives in Woodstock.

Ciao Bellas!

The odd thing is, people said the same thing about Interstate Av and Burnside (from I-205 east through Gresham) being too auto-oriented for MAX before those went in.

But that's the point, Interstate Av gets redone to be train, bike and ped friendly but, any talk of such improvement out 82nd ways gets a blank stare.
The 205 route for MAX is certainly a practical choice as far as availability of existing space to lay track w/o too much disruption. But, it seems that an opportunity is lost because it is doubtful there will be the rise of business and residential projects along I-205 adjacent to the train like there is on Interstate.

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