Quote:
Originally Posted by Crawford
Of course you can. The NYC MTA just cancelled a half-billion dollar subway tunnel renovation that was supposed to begin in just a few days. They claim they found a cheaper/easier way to do it.
I'm sure every agreement has specific language re. non-completion of contract terms. Isn't this why you have lawyers?
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That's an entirely different situation. The L line renovations aren't using contractors for the most part, and so MTA hasn't issued any large construction contracts. Certainly they're not using them at the level that HSR is. For this project MTA is primarily using it own workers, making its own construction plans, and making its own relationships with suppliers and subcontractors. That means MTA doesn't need any contracts, since as both the project sponsor and prime contractor MTA would be signing a contract with itself. And that would just be silly.
MTA is fairly unusual within the US in that it combines these two usually separate parties under one roof, at least for major repairs (new construction like the 2nd avenue subway uses the more usual method). It has the advantage of giving the MTA complete and utter control over the project to make whatever changes it wants at any time it wants, but the lack of any legally binding agreements means the scope of the project can suddenly and radically change without warning (which usually leads to huge delays and massive cost overruns). A large percentage of HSR's cost overruns and delays have been from project changes, under a system where CAHSR went into the construction business itself they'd likely be even higher.
Quote:
Originally Posted by Crawford
But a house in the Central Valley wouldn't be next to the station, obviously. You have to factor that in. Someone who values a cheap big house in the CA interior isn't gonna be living in a TOD. They would have to drive a distance, and probably pay for parking, competing with intercity riders.
Putting aside other issues, do you think there's a large cohort of people willing to spend like 25% of their pretax income on daily commuting?
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It sounds stupid, but spending $20k+ on commuting honestly makes economic sense for many people working in the bay area. Average rent for a two bedroom apartment in SF is $4,650 a month, or ~$56,000 a year. The average house in Madera is $232,400, which with a 3.92% 30 year APR would cost $1,099 a month or ~$13,000 a year. So for someone looking to raise a family you could buy a house in Madera, spend $100 every working day commuting via HSR to SF, and still be saving $17,000 a year over trying to rent a two bedroom apartment in SF. If you worked from home once a week you'd be saving $23,000.
Of course that's making the very big assumption that housing prices in the bay area will stay at their current ridiculous levels. That's the real weakness of the whole HSR commuting plan.
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