Frustration Increases for Over Budget Rail Project

Hawaii residents and legislators alike expressed their frustration toward the Honolulu Authority for Rapid Transportation who recently broke the news that the Honolulu Rail Project is now expected to cost between $550 million to $700 million more than the $5.26 billion estimated.  Daniel Grabauskas, the executive director for HART, commented that project delays caused by lawsuits by rail opponents, pushed the cost up by as much as $190 million, and higher then expected construction contract have attributed to the rest of the unforeseen expense.  In addition, the city has received $41 million less than what was previously project from the general excise tax surcharge that was expected to pay for the bulk of the Rail Project.

Ann Kobayashi, the Honolulu City Council Budget Chairwoman, suggested that it might be time for HART officials to consider scrapping plans for a rail project, and instead allow buses, instead of trains, to travel exclusively along the 20-mile guide way from East Kapolei to Ala Moana Center. Kobayashi argued that this might be a cheaper alternative, and would eliminate the need for park-and-rides to be built along the rail line.  Grabauskas replied that under the funding agreement with the Federal Transit Administration,"we are not allowed to change our plans mid-stream from a rail transit system to one using buses. To switch from steel-on-steel rail technology to buses using rubber tires, we would have to return the existing federal funding and reapply for the money."

Source: Honolulu Star Advertiser, 12-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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