Submitted by Steve Schopp on Tue, 06/06/2006 - 9:26pm.
Pete Kohler may have recklessly endangered OHSU's fiscal stability right along with the PDC risking the city's.
His commitment of OHSU millions every year for decades towards this boondoggle Tram will hobble funding for all of their core missions.
OHSU employees should probably be up in arms.
Well, not the doctors.
The first SoWa OHSU building is owned by the OHSU doctors group, a 501c3, will pay no business taxes, no property taxes and no TriMet taxes. It will house doctors offices, a clinic, a health club, administration offices and "some research space."
All of which could have been acquired without the insane Tram.
But, it's not just the Tram.
The city is also providing the streets and other infrastructure as they poor millions into SoWa. The 1999 SoWa plan called for $288 million in projects and another $160 million in debt service over the first 20 years with millions more needed to retire the debt and to cover cost overruns.
It may be that the debt service itself is a much larger cost overrun than the Tram or the rest of the project overruns.
If the 1999 plan did not assume rising interest rates it may be that debt service is well on it's way to doubling.
ALL of which will be paid for decades with property taxes desperately needed by basic services general fund budgets.
That's why it is important to maintain updated and complete budgets.
Putting a happy face on this is no substitution for prudent management.
re: Tram Life Cycle Cost Analysis
Pete Kohler may have recklessly endangered OHSU's fiscal stability right along with the PDC risking the city's.
His commitment of OHSU millions every year for decades towards this boondoggle Tram will hobble funding for all of their core missions.
OHSU employees should probably be up in arms.
Well, not the doctors.
The first SoWa OHSU building is owned by the OHSU doctors group, a 501c3, will pay no business taxes, no property taxes and no TriMet taxes. It will house doctors offices, a clinic, a health club, administration offices and "some research space."
All of which could have been acquired without the insane Tram.
But, it's not just the Tram.
The city is also providing the streets and other infrastructure as they poor millions into SoWa. The 1999 SoWa plan called for $288 million in projects and another $160 million in debt service over the first 20 years with millions more needed to retire the debt and to cover cost overruns.
It may be that the debt service itself is a much larger cost overrun than the Tram or the rest of the project overruns.
If the 1999 plan did not assume rising interest rates it may be that debt service is well on it's way to doubling.
ALL of which will be paid for decades with property taxes desperately needed by basic services general fund budgets.
That's why it is important to maintain updated and complete budgets.
Putting a happy face on this is no substitution for prudent management.