Saturday, February 2, 2013

The meaning of Friday's Streetcar announcement by Mayor Mallory

Friday, Mayor Mark Mallory announced that the utility line relocation by Duke Energy will proceed, commencing shortly.  The "deal" reached by the two is that whoever wins the fight over liability for the $18 million in costs associated with that work will "eat" it, but the work will commence immediately.

This decision is concurrent with the pending litigation COASTer Jeff Capell has initiated against the City of Blue Ash to rescind the $34 million sale of the Blue Ash Airport.

Thus, the "unknowns" associated with these two decisions are presently at $52 million, not counting cost overruns, and other contingencies in the construction process.

And the City has determined to proceed with the construction regardless of the outcome of these unknowns.  So, who ends up holding the bag when those unknowns turn against the City?  The taxpayers, of course.

Mayor Mallory has determined to proceed with a major capital project not knowing if he can pay for these holes in his financing, and how he will pay for these holes in his financing.  indeed, he will be gone a year or more from the Mayor's office when these unknowns become known.

He has decided to gamble with the taxpayers money.  And six members of Council are backing him in that risky decision.

1 comment:

  1. So... where exactly are you getting your "$18 million" figure? Chris Smitherman?! The article, which is also incorrect, states "$15 million."

    The correct figure is $6 million. It's the original estimate. The figure based on a three foot clearance. The one Duke Energy balked at, requesting instead a eight foot clearance. For "safety" reasons. Which pushed the estimate to $18 million.

    Oh, so is that where your figure comes from? The one Duke tried to extort from the city until it was called out that a three foot clearance works in every other U.S. city, including Duke's home base Charlotte?!


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