Megaprojects Invite Corruption

FBI agents posed as transit-oriented developers willing to bribe the mayor of Charlotte to get his support for a streetcar line, light rail, and related projects. The now-ex-mayor Patrick Cannon gladly accepted bribes in exchange for lying to investors and pushing city planning agencies to fast track the developments. When on the city council, Cannon had opposed construction of a streetcar line, but mysteriously changed his vote when he became mayor.


Who did developers bribe to get this project completed?

The Antiplanner isn’t enthusiastic about police entrapments, but this case brings to light one of the seamier sides of rail transit. These projects cost so much that they make some sort of corruption, if only in the form of campaign contributions, mandatory. The FBI sting has to raise questions about other rail projects and developments, especially considering the current U.S. Secretary of Transportation was the mayor of Charlotte just prior to the one who was stung.

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How Many Subsidies Can Dance on the Head of a TOD?

Rail transit advocates often claim that new rail lines increase the value of properties near rail stations. While the Antiplanner is skeptical of many of these claims, a new report casts a dark light on such increased property values.

According to this report from the Dukakis Center for Urban Policy (yes, that Dukakis), increased property values push out low-income families that tend to be transit dependent and replace them with higher-income households who tend to own cars. This “undesirable neighborhood change,” the report argues, “is substantial enough that it needs to be managed whenever transit investments or improvements are being planned.”

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Throwing Good Money After Bad

TriMet, Portland’s transit agency, is planning to spend $7 million upgrading the 24-year-old Rockwood station in the city of Gresham, Portland’s largest suburb. TriMet officials hope the improvements will “leverage investment in transit into nearby development opportunities” in that neighborhood. Fat chance, especially since it was the light rail that killed the neighborhood in the first place.

The Rockwood Fred Meyer in 2000. Note the light-rail train in the background.

For 45 years, the center of the Rockwood neighborhood was a Fred Meyer store, a “supercenter” selling groceries, clothing, variety, and hardware. Fred Meyer also leased storefronts to other businesses such as coffee shops and locksmiths. When Fred Meyer spent $400,000 remodeling the store after TriMet opened the light-rail line in 1986, TriMet triumphantly counted it as an investment inspired by the light rail. Never mind the fact that Fred Meyer bragged on its web site that it had remodeled all of its 130 stores at about the same time.

The truth was, things were not going well at the Rockwood store. In January 2003, Fred Meyer shocked the neighborhood by closing it even though it was obligated to pay a lease on the site for another 10 years. The store “was in decline for a number of years,” a Fred Meyer official told the Oregonian (article available to those with access to Infoweb). “It was in a decline before the last remodel.” This was the only time in the chain’s history that it closed a store without immediately reopening a replacement nearby.

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