Below is a photo I took of the current Birmingham Amtrak station. (Yes, that's Mary Ellyn inside the covered "facility.")
I remain skeptical of the promised economic benefits of the proposed Troy Transit facility. While I'm supportive of improving public transit, I would prefer to see a focus on bus systems (e.g., SMART). Rail transit tends to be a much more expensive proposition and less flexible.
On the other hand, Uncle Sam is offering to pay most of the cost to provide the citizens of Troy with a state-of-the-art Amtrak station.
I have two questions that I would like to have answered:
- What guarantees are in place to ensure that Troy taxpayers will not be saddled with a significant burden to cover the operating expenses of the facility?
- How much has the City already spent and how much would be lost if the project were to be halted?
1. Per the study session last night, the Troy maintenance department estimates that the operating cost will be approximately $30,000 per year. They care currently negotiating a lease with Amtrak, but the amount is not yet set. They are also negotiating leases with Metro Cars, 2 rental car agencies, a bicycle rental shop, a coffee shop, and the Smart bus system. It is possible that it could become a profit center, but the risk is up to $30,000 on a $8.4M project.
ReplyDelete2. Again per the study session, the city spent $420,000 (nothing since 2009) for original engineering and architectural work and for the U of M study and getting the grant. The contract calls for no further costs from the Troy taxpayers, and the current contract can be cancelled as late as December 19th without any penalty. If Troy pulls out after Dec 19, they will be on the hook for what ever gets spent after the 19th.
Thanks for the information Bill.
ReplyDeleteNo question in my mind that the Center will have significant long-term economic benefit to Troy. First is the Fed's and local commitment to both this project, the Woodward light rail system and the one announced a couple days ago - the high-speed line to Chicago. Eventually all will be linked up with a clear shot from our station to downtown Detroit, Ann Arbor and beyond.
ReplyDeleteSo, with all the big time investment going into downtown Detroit by Dan Gilbert, the Ilitches and others, new employees who want a mass transit option to get to work will naturally gravitate to a stop in the North Woodward corridor. And when they see our station AND parking, Troy will have a strong competitive advantage which will be a major infusion into our businesses and home values/occupancy. So, you can't look for an immediate ROI like Wade is, but a visionary perspective of how a mature city like Troy can reinvigorate itself.
And using the cost per user is an illogical non-sequitur - the payoff is long-term economic growth to Troy which can far surpass the 8.5. Clearly the benefit outweighs the risk by a 100:1 ratio at a minimum
I have another question. Does the $30,000 per year amount include the depreciation expenses of the facility?
ReplyDelete