This project was first proposed way back in 1991. The fact that it's took this long to get it off the ground is a clear sign of Oakland Redevelopment Agency's lethargy and the determination of Oakland's District Six Councilmember Larry Reid.
BART's airport monorail on track
Officials seek private help for connector targeted to run by 2011
By Paul T. Rosynsky, STAFF WRITER - OAKLAND TRIBUNE
OAKLAND — A plan that would have a private company build and operate BART's monorail to Oakland International Airport appears to have gotten the long-stalled connector project back on track.
After years of delays due to a $141 million funding shortage, BART officials now say they believe the job can be done and expect the $377 million monorail to open by 2011.
The optimism comes as the agency seeks proposals from private firms that would be
willing to cover a $141 million funding gap to get the project.
In return, the winning firm would operate the system and collect fares from passengers.
BART bases its rosy outlook on a pre-bid meeting held earlier this year with representatives from more than 100 companies interested in the project.
The movement also has spurred other agencies to begin planning for the monorail, which is projected to carry 13,500 people a day from the BART Coliseum station to Oakland International Airport.
Those agencies include the city of Oakland, which will vote next month on giving BART a $725,000 in-kind contribution for the project. The contribution would include staff time taken to help relocate utilities and conduct various inspections during construction.
"Now it looks like the train is moving out of the station," said City Councilmember Larry Reid (Elmhurst-East Oakland), a longtime monorail supporter. "It will happen, and it will happen on our watch."
Despite the new outlook, there is no guarantee the private sector will be willing to take a risk on funding the project with the hope it would attract enough riders to pay off the investment.
At the same time, should private firms respond with proposals, it would be a strong show of confidence that the monorail project will be a success, transportation experts said.
"One of the neat things about having the private operator do this is that the private folks are going to be really hard-nosed about it," said David Luberoff, executive director of the Rappaport Institute of Greater Boston at the Harvard University Kennedy School of Government.
"It validates the project, it shields BART from the risk if the monorail is not popular," Luberoff said.
He said fares on the monorail system could range from $3.75 to $5.50 per trip based on BART's projected number of riders and its estimate of construction costs.
But those fares would only allow a firm to recoup its estimated capital cost, not a profit, Luberoff said.
Right now, BART passengers wishing to connect to Oakland International Airport pay $2 each way for a dedicated bus service connecting the Coliseum station to the airport.
BART officials devised the public-private partnership idea last year when it appeared the project could not be completed.
Originally estimated to cost $232 million, the price of the automated monorail ballooned to almost $400 million because of Oakland International Airport's constant tinkering with its expansion design and BART's low-balling of the project's cost.
BART had collected more than $236 million in public funds for the monorail. Those funds come from a sales tax measure approved in 2000, two separate regional bond measures, state funds and $25 million from the Port of Oakland.
The line would run in the median of Hegenberger Road, with the possibility of one station between the Coliseum BART station and the airport.
Karen Williams, an attorney who has written several public-private partnership agreements, said BART's plan basically makes the monorail like a toll road.
Williams, a partner with Lane Powell, said the idea also distributes costs more fairly by having both users and the general public pay. Since the project will benefit both, it is a fair deal, she said.
"It strikes me as being pretty good public policy because the economic effect is to divide the costs between the public at whole and the end users," she said. "It really sounds like a good, equitable formula."
Williams said such partnerships usually result in innovative ideas.
She helped craft a similar arrangement in Portland, where a public-private partnership helped create a light-rail system connecting the city's airport with its downtown.
However, in that deal, the private firm was not given fare receipts.
Instead, the firm was given rights to develop a large tract of land along the rail route and near the airport.
It is unclear whether the BART proposal could involve separate land deals as well.
According to some with knowledge of what the possible partnership would look like, fares would be the only source of income for the private firm.
BART officials could not be reached for comment last week.
"This is a project that has been waiting for a long time now," said Oakland City Councilmember Henry Chang (At Large). "Because of this public-private partnership, we can now get it done."
BART's airport monorail on track
Officials seek private help for connector targeted to run by 2011
By Paul T. Rosynsky, STAFF WRITER - OAKLAND TRIBUNE
OAKLAND — A plan that would have a private company build and operate BART's monorail to Oakland International Airport appears to have gotten the long-stalled connector project back on track.
After years of delays due to a $141 million funding shortage, BART officials now say they believe the job can be done and expect the $377 million monorail to open by 2011.
The optimism comes as the agency seeks proposals from private firms that would be
willing to cover a $141 million funding gap to get the project.
In return, the winning firm would operate the system and collect fares from passengers.
BART bases its rosy outlook on a pre-bid meeting held earlier this year with representatives from more than 100 companies interested in the project.
The movement also has spurred other agencies to begin planning for the monorail, which is projected to carry 13,500 people a day from the BART Coliseum station to Oakland International Airport.
Those agencies include the city of Oakland, which will vote next month on giving BART a $725,000 in-kind contribution for the project. The contribution would include staff time taken to help relocate utilities and conduct various inspections during construction.
"Now it looks like the train is moving out of the station," said City Councilmember Larry Reid (Elmhurst-East Oakland), a longtime monorail supporter. "It will happen, and it will happen on our watch."
Despite the new outlook, there is no guarantee the private sector will be willing to take a risk on funding the project with the hope it would attract enough riders to pay off the investment.
At the same time, should private firms respond with proposals, it would be a strong show of confidence that the monorail project will be a success, transportation experts said.
"One of the neat things about having the private operator do this is that the private folks are going to be really hard-nosed about it," said David Luberoff, executive director of the Rappaport Institute of Greater Boston at the Harvard University Kennedy School of Government.
"It validates the project, it shields BART from the risk if the monorail is not popular," Luberoff said.
He said fares on the monorail system could range from $3.75 to $5.50 per trip based on BART's projected number of riders and its estimate of construction costs.
But those fares would only allow a firm to recoup its estimated capital cost, not a profit, Luberoff said.
Right now, BART passengers wishing to connect to Oakland International Airport pay $2 each way for a dedicated bus service connecting the Coliseum station to the airport.
BART officials devised the public-private partnership idea last year when it appeared the project could not be completed.
Originally estimated to cost $232 million, the price of the automated monorail ballooned to almost $400 million because of Oakland International Airport's constant tinkering with its expansion design and BART's low-balling of the project's cost.
BART had collected more than $236 million in public funds for the monorail. Those funds come from a sales tax measure approved in 2000, two separate regional bond measures, state funds and $25 million from the Port of Oakland.
The line would run in the median of Hegenberger Road, with the possibility of one station between the Coliseum BART station and the airport.
Karen Williams, an attorney who has written several public-private partnership agreements, said BART's plan basically makes the monorail like a toll road.
Williams, a partner with Lane Powell, said the idea also distributes costs more fairly by having both users and the general public pay. Since the project will benefit both, it is a fair deal, she said.
"It strikes me as being pretty good public policy because the economic effect is to divide the costs between the public at whole and the end users," she said. "It really sounds like a good, equitable formula."
Williams said such partnerships usually result in innovative ideas.
She helped craft a similar arrangement in Portland, where a public-private partnership helped create a light-rail system connecting the city's airport with its downtown.
However, in that deal, the private firm was not given fare receipts.
Instead, the firm was given rights to develop a large tract of land along the rail route and near the airport.
It is unclear whether the BART proposal could involve separate land deals as well.
According to some with knowledge of what the possible partnership would look like, fares would be the only source of income for the private firm.
BART officials could not be reached for comment last week.
"This is a project that has been waiting for a long time now," said Oakland City Councilmember Henry Chang (At Large). "Because of this public-private partnership, we can now get it done."
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