City Council Concludes Work Session on Eastside Streetcar Loop Funding

There is so much here that has no credibily it's amazing.

About the only thing reliable is that projects within Central Eastside Urban Renewal District currently exceeds the increment projected to be created within the district. In other words, another Urban Renewal credit card is maxed out so it must have the limit raised so the streetcar can get money.
The nonsense about the streetcar projected to generate a net positive amount in tax increment proceeds is pure fabrication.
Stuffed with the usual unreliable projections, estimates and assumptions prepared by those with extreme conflicts of interest.
Hovee's TIF analysis has no credibility.

One person told me that the list of streetcar caused developments in downtown included an underground parking lot.

As I understand it the streetcar claims to be the sole cause of all development within a few blocks of the line starting well before streetcar was built.

The tax abatements and $250,000 million free infrastructure (at buildout) had noting to do with it - just more city lies as usual.

Thanks
JK

This budget busting proposal is so full of political propaganda and rhetoric it is unreal. Increasing the debt limit and/or expanding urban renewal districts that siphon away dollars from schools and government services all to dump the additional tax increment revenues into one politically motivated money pit project is an unwise debt risk, especially given the economic uncertainty in the National economy due to mortgages failing and the downturn in new housing starts. Historically, Oregon‘s economy usually dips after the national trend and is one of the last to recover. The elephant is not in the room yet, but the beast is traveling in this direction. Suggesting the streetcar is projected to generate a net positive amount in tax increment proceeds is a stereotype flawed response to the facts. Historically development along the existing streetcar route has come at an expanded price tag not occurring without the City Council handing out property tax abatements to developers like free candy along with other generous tax breaks from both the City and PDC. New development will occur with or without the trolley, and probably occur faster on its own if more roadway and freeway improvements were built.

In addition to the construction costs is the reoccurring debt of operation and maintenance costs that is expected to be tapped from and placed on the backs of future generations of Portlanders. Installing parking meters on the Eastside to subsidize operations will only have a negative impact on businesses in the project area, particularly small family owned businesses. Any revenue from parking meters should be paying for motorist infrastructure and roadway improvements, not for operating a full sized Lionel train layout. The proposed one dollar streetcar fare that is not even equal to TriMet’s regular fare only demonstrates that projected ridership numbers do not support or out weight the excessive costs of the building project. If the streetcar was proposed as a private sector financed investment opportunity, any profitable business person would run away as fast as they could. At the very least, a streetcar project should financially self-sustainable paid for by users through the farebox. Any bicycle facilities should also be user paid by implementing a tax on bicycling. Replacing bus service with snail rail not only slows down transit service through the corridor, but also creates more traffic congestion and impedes freight mobility by gumming up traffic on the high traffic volume streets the snail rail route traverses.

The only positive note in this whole proposal was Fred Hansen’s call for a reevaluation of Fareless Square. That too however has its pitfalls in that the expectation from TriMet’s farebox revenues would still undoubtedly be set too low. Farebox revenues should be covering a far greater amount of the costs of providing transit service than just the current pitiful 21 percent of operation costs.

Furthermore, the problem with a proposal like this is that once enough people are conned into supporting the concept, the momentum becomes a landslide wiping out everything in its path including all forms of reason, user financial responsibility and reality checks. Everybody that owns property within the City of Portland that is assessed their full share on property taxes has a line item charge on their tax bills for Urban Renewal. Therefore all property owners within the city limits have a financial stake in this folly of a trolley plan. This duct taped together proposal should go out for a vote of the people of Portland to decide its outcome, and not just be railroaded through by a body of social engineers and a stacked deck hand selected citizens group.

Now Jim Karlock and Terry Parker can be considered to be "pro-auto," but I am definitely not, having never driven a car, and relying on Trimet for practically all of my transport needs.

That said, I think that they have a lot of valid arguments here. Anytime we have new "snail rail" (and that is what it truly is) go into operation here, it degrades the integrity of the transit system, AND MY TRANSIT SERVICE. It is sad for me to say it, having ridden rail rapid transit to work for over 35 years. The rail "development" thing here is a myth; it has been subsidies that have encouraged development. Yes, I am aware that there are (biased) studies that have said otherwise.

It appears that we have a good number of parties are making a lot of money off all of this rail construction here in Portland. Crony capitalism, a la Cheney/energy companies, anyone? Well, to me there is no difference.

And, Ron and Sam, how many hobbyist "railfans," covert and overt are in working in your organizations? You might be surprised to find out. You see, I was in the railfan hobby for over 15 years, and well know about this "infiltration" syndrome (for example, when I was 19, a railfan told me about a job opening at the NY Regional Planning Commisssion, and I personally knew two other railfans who worked for that organiztion.) And forget about the "Euro-wannabe" planners here in Portland.

It is depressing to watch such a lovely city like Portland sink further and further into developing a dysfunctional transit system. Too bad people like me have to suffer.

Mr Adams - Why waste our/your time trying to convince us that it is not a done deal? This is another Vera move like the Tram. It will only cost us about 10% of the real cost and then you will shove the remainder down taxpayers' throats with the std excuses:
1) We've started and can't stop now
2) We'll lose this earmarked money
3) We need do to this now before it is too late and the world collapses

Of course, we can build this without any extra taxes (unless you count raiding the general fund to pay for the over amount as a de facto tax.) However, for better streets we'll still need that tax.

Vera really taught you how to get these things done didn't she?

Is the Eastside Streetcar going to utilize Oregon-made streetcars? Anyone know how many streetcars are going to be added to the system?

Also, please tell me that the streetcar stops will be more widely spaced than every two blocks, like in the Pearl District. If this thing can't transport people at a reasonable speed, it's not going to be terribly useful - although won't it still just be a circulator service for the eastside? Connections to downtown will probably be more conveniently served by buses crossing the bridges, right?

Roland Chlapowski: If we can come up with an additional $18 million in tax increment funds,
JK:
First a little background: PDC recently released their annual report on UR and, for the first time, it actually complies with state law that requires disclosure of where the magic TIF funds come from:

City of Portland....................$20.6 million......40%
Multnomah County..............$13.8 million.......27%
Portland School District......$11.4 million.......22%
others.....................................$5.4 million.......11%
Total of all TIF....................$51.2 million....100%

Now we can put that $18 million in perspective:
40%, or $7.2 million will come out of revenue diverted from the City ofPortland such a police and fire..
27%, or $4.9 million will come out of revenue diverted from Multnomah Count such as basic human services.
22%, or $4.0 million will come our of revenue diverted from Portland Schools.

There you have it: the streetcar will be funded by stealing money from police, fire, basic human services and schools.

Roland Chlapowski: This new streetcar line would move us towards meeting our Peak Oil and global warming goals and
JK: I am still waiting for you comments on global warming after you discovered that CO2 causes LESS warming than water vapor and that man only causes a tiny proportion of the total CO2. Of course there in now the recognition that 1998 was not the warmest year, it was 1934. Why not knock off the global warming hysteria, at least until the last of those Viking farms emerge from under the Greenland ice?

As to peal oil, we will never run out of oil - it is just basic economics. I am surprised by the lack of econ 101 knowledge in Portland government. (see comment 4.1 at oregoncatalyst.com/index.php?/archives/776-What-really-is-sprawl.html)

Also basic chem: liquid motor fuel is just a string of H and C atoms. You can get the H from water and the C from coal. Hitler ran a war machine on it, so we can run a few cars on it. Or we can probably figure out how to pull the C out of atmospheric CO2 and therefore be “carbon neutral.”

BTW, I hope everyone realizes that the toy trains are run on coal because all new loads, since we built the first coal plant, are provided by coal, not hydro. 100% of the hydro power was spoken for years ago.

Roland Chlapowski: provide more Portlanders with a new cost effective transportation choice.
JK:
1) It is not cost effective - it costs $1.67 per passenger-mile while the best bus lines cost only $0.34. Of course driving is even cheaper at around $0.25. See: DebunkingPortland.com/Transit/Cost-Cars-Transit(2005).htm
2) It will not be a new transportation choice unless they keep the bus service on the same streets. I’ll bet they will discontinue any bus that competes with this new toy.

Roland Chlapowski: It is estimated that this new streetcar line would incent an estimated $700 million in increased private development along its corridor.
JK: Aw, come on - we are adults here. We can discuss the way the world really works and we don’t have to hide history. Lets refresh our memory:

it is a myth to think the market will take care of development along transit corridors, noting the many vacant sites along the current MAX system (Charlie “streetcar” Hales, OCTOBER 23, 1996)

all the apartment buildings on the South Park Blocks which would not exist today without a similar tax abatement program . (Charlie “streetcar” Hales, OCTOBER 23, 1996)

For the full quotes, see: DebunkingPortland.com/Transit/LightRailDevelopment.htm

It is the tax abatements, not the toy train that causes development. We can save $150 million, by just giving tax abatements and not building a white elephant that will bleed the city for years to come until someone finally faces reality and rips the whole system out. Like we did in the 50s.

Roland Chlapowski: in order to seize this opportunity, Portland City Council must to be ready to make a commitment to FTA for a total of $33 million by September 7, 2007.
JK: Ahh!, the old this deal is to good to pass up - but we gotta act before we have time to stop an think scam. Reminds me of a sleazy used car salesman.

Roland Chlapowski: I want to emphasize that the proposed resources for this eastside streetcar expansion will not come from funds that could be devoted to basic street or bridge maintenance
JK: You left out: “except for parking meter revenues which were previously used for roads”

Roland Chlapowski: The cost estimates you will hear about today should be treated as low confidence estimates.
JK: Get ready for another doubling or tripling in cost. And for what? More traffic congestion as the toy blocks traffic and at a cost SIX times that of driving. All with money stolen from basic services and schools. For shame.

Roland Chlapowski: The $17 million request from River District Urban Renewal District
JK: That’s $6.8 million from city services and $3.74 million from Portland’s schools.

Roland Chlapowski: The $4 million request from Oregon Convention Center Urban Renewal District
JK: That’s $1.6 million from city services and $0.9 million from Portland’s schools.

Roland Chlapowski: The $6.2 million request from Central Eastside Urban Renewal District
JK: That’s $2.5 million from city services and $1.4 million from Portland’s schools.

Roland Chlapowski: On the other hand, however, it is important to note, that unlike other projects currently slated for the area, the streetcar is projected to generate a net positive amount in tax increment proceeds.
JK: COMPLETE BOLOGNA - it’s the tax money taken from police, fire, human services and the schools in the form of abatement that spurs the development. Not the toy trains.

BTW, the effectiveness of tax abatements demonstrates just how destructive taxes are to our economy.

Roland Chlapowski: In other words, investing in an eastside streetcar line will pay for itself and then generate an additional $1.165 million for other public priority projects within the Central Eastside that would not otherwise be available.
JK: As to the estimates of a quick profit - they said that about North Macadam - before the 600% over run on the tram (DebunkingPortland.com/Transit/TramOnBudget.htm) and before they admitted to having to build a bunch of expensive freeway stuff for all those millionaire condo owners who would not need cars.

If that really is true, prove it by discontinuing the tax abatements!

Roland Chlapowski: Operating Costs
...
- $1 million from TriMet general fund
- $430,000 from savings from changes to the line 6 bus enabled by the new streetcar
- $945,315 from net new streetcar revenue
- $1 million from City of Portland -- likely source will be parking revenues
- $175,000 in sponsorship

JK: Let me translate, item by item:
1. TriMet will have to cut bus service to come up with the million. That will continue Portland’s war against low income people to pour favors on the Beemer class.
2. “changes to the line 6". That means less service, unless they figured out how to increase service and save money.
3. Streetcar revenue assumes a real effort to collect it.
4. Parking revenues - I thought you said (above) that money would not be taken from maintenance?
5. Sponsorship - finally a good idea. In fact if this line is such a good deal, why not find a sponsor to foot the entire bill and we could give them the increased tax revenue. (No tax abatements for all new construction of course)

Roland Chlapowski: My idea is to create a funding tool conceptually similar to the existing tax increment mechanism but unique in that it would take only 30% of the annual increment created in a district, leaving the rest to be collected by the school districts, the City, and the County.
JK: Great idea - reduce the theft of basic services and education money! How about you keep the toy train’s stinkin mitts off of basic service and school money?

Thanks
JK

Thanks to Sam and Roland for providing this information, and for pursuing this positive step toward a prosperous eastside. As for the other posts, it seems the usual suspects have too much time on their hands, as always. As an inner eastside resident and employee, I hope the further study produces a workable project, and look forward to having it up and running.

I never cease to be amazed at how people can tear down an idea (like the streetcar), without offering ANY positive input whatsoever!

When you play the stupid little game of pretending to be shocked that money/politics are tangled and post your little screed, you add NOTHING to the conversation..."my phony facts/figures are better than yours".

I would venture to say that the majority of people criticizing public transit, never lived in a place (the majority of the US) that has NO public ransit system. One of the main reasons I moved here from FL is because of public transit. It is one of these things that will propel Portland into the future.

Paving every suface and filling in with strip malls, helps nobody. Which is worse, a 60 minute trimet ride, or a 60 minute wait in traffic?

Of course, no opponet of mass transit, supporter of more cars and roads, will ever talk about the "real" costs of automobiles...very compartmentalized thinkin.