Wednesday, January 22, 2014

Timet continues on its path as a property development agency

In Resolution 14-01-03, TriMet staff proposes to give away a land parcel valued at $570,000 to a developer on the grounds that the net present value of 30 years of increased transit fares generated by the development is estimated to be $648,732.
The staff has neglected to mention that $648,732 is the gross revenue associated with future boardings. Since TriMet loses money on every trip, the net value of future fares will be a negative number.

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1 comment:

  1. Jason McHuffWednesday, January 22, 2014 3:42:00 PM

    Since TriMet loses money on every trip, the net value of future fares will be a negative number.

    False. Money is to be spent sending trains down the tracks and buses down the road regardless of whether this development happens, and the projected ridership will use those trips and not require added service. It's not going to take $21,624.40 more subsidy a year to provide transit service just to this development.

    As empty seats/space on a transit vehicle are filled up, the cost per ride and subsidy needed go down, not increase.

    (That being said, it would be good to know what the highest bidder would pay for it and what they would do with it, and it's fair to question the stated costs and public value of this project.)

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