RTD’s about-face on a major FasTracks component last week raised some distressing questions as it conjured up images of storm clouds gathering around this important regional project.
The Regional Transportation District faces significant challenges as it tries to fully fund FasTracks, its ambitious network of rail and bus lines, and complete it by 2017.
Yet despite months of talking up the saving graces of a $2.2 billion public-private partnership, or PPP, that was critical to the $7 billion project, outgoing RTD chief Cal Marsella now says he is delaying the effort.
That’s a significant reversal.
The idea behind the public-private deals was to foster a competition among three consortiums bidding to construct the train to Denver International Airport, the Gold Line train to Arvada/Wheat Ridge and other FasTracks elements. The PPPs were always thought to be vital to keeping the 24-mile train line from Union Station to DIA and the 11-mile train line to Arvada on schedule.
Three factors led to Marsella’s decision, according to The Post’s Jeffrey Leib.
The first is an awfully frivolous- looking lawsuit brought by rail activists against a redevelopment plan for Denver’s Union Station.
The second is the problem of finding a site for a $200 million commuter rail maintenance center, which the PPP would build. This is a significant worry because of a dispute with the Owens Corning shingle plant that sits in what RTD says is the perfect spot for the maintenance center. The dispute would have to be resolved with eminent domain and this viable business would have to be relocated at a cost to taxpayers that the company estimates would be $80 million.
Finally, the PPP is based on an understanding that the private investors would contribute at least $1 billion if RTD can secure $1 billion in federal grants, and Congress has yet to decide on its next round of transportation funding. No doubt, the environmentally friendly FasTracks looks appealing to the current power structure in Washington, but even so, Congress doesn’t move at great speed.
Plus, there also could be a snag for PPP financing because of Colorado’s Taxpayer’s Bill of Rights.
Each one of Marsella’s concerns is clearly warranted, as each could cause unwieldy delays. Meanwhile, Marsella is leaving the agency on July 31, creating a leadership vacuum.
RTD has decided not to ask voters this year for an additional 0.4 sales tax hike to fill a $2.2 billion shortfall, which we think is a good move. But if voters are going to approve a tax hike in 2010, RTD needs to put forward a realistic plan.
The agency insists it can build the full system by 2017. That’s only eight years out, and we think RTD should consider pushing back the deadline.
We’ve long supported FasTracks and hope RTD can keep voters on board as it deals with its many challenges. But that requires that RTD not further jeopardize its credibility with a timetable that voters won’t buy.
