I've gotten several comments on the Point Ruston LID, some asking questions and some reflecting misunderstanding of both the structure of the LID and what the impacts might be from the recent proposed cost increase. Point Ruston is asking for an increase from $11 million to a cost not to exceed $15 million. So after checking with Ruston's mayor and attorney, I spoke at length with Loren Cohen, legal affairs manager for Point Ruston.
Bruce Hopkins, Ruston mayor, pointed out that Ruston is not liable for any of the LID risk. Tacoma will own 100% of the LID and their rate payers are backing it. Ruston was too small to be able to get bonds for a project this size. He noted the LID estimates were done before all the engineering was completed.
Loren said the main reason for the higher cost is an increase in scope, mostly for public utility improvements in Ruston. Tacoma's Economic Development council subcommittee has unanimously recommended a yes vote to the full council. No date has been set for Tacoma's council to vote. Ruston's council will not vote on this issue since Ruston is not connected to the LID. But the town does oversee all utility developments within its borders to ensure they meet all requirements.
Loren pointed out that the project is paying for town-wide improvements. For instance, at least 70% of the stormwater flow through Point Ruston will be from outside their development, yet they are building a system that manages that flow and meets regulations for the entire town.
He noted that LID's are a common financing mechanism for public improvements or projects with public benefit. This LID is secured by the property and bonds. Tacoma has been issuing LID's since 1895 and never had one fail yet. Cohen does not believe this project will be any different.
Bruce Hopkins, Ruston mayor, pointed out that Ruston is not liable for any of the LID risk. Tacoma will own 100% of the LID and their rate payers are backing it. Ruston was too small to be able to get bonds for a project this size. He noted the LID estimates were done before all the engineering was completed.
Loren said the main reason for the higher cost is an increase in scope, mostly for public utility improvements in Ruston. Tacoma's Economic Development council subcommittee has unanimously recommended a yes vote to the full council. No date has been set for Tacoma's council to vote. Ruston's council will not vote on this issue since Ruston is not connected to the LID. But the town does oversee all utility developments within its borders to ensure they meet all requirements.
Loren pointed out that the project is paying for town-wide improvements. For instance, at least 70% of the stormwater flow through Point Ruston will be from outside their development, yet they are building a system that manages that flow and meets regulations for the entire town.
He noted that LID's are a common financing mechanism for public improvements or projects with public benefit. This LID is secured by the property and bonds. Tacoma has been issuing LID's since 1895 and never had one fail yet. Cohen does not believe this project will be any different.
3 comments:
Good for them. Keep up the hard work MC Construction. I know how frustrating it is to deal with endless paperwork the government creates year after year.
I really hope you guys succeed. It's risk-takers like you that make this world go round.
Thank you Karen for the update. What, my friends, is not to like? There is no risk with the LID, our utilities + town improvements are updated and enhanced, they are even providing a dog park! If that doesn't get things moving I don't know what will!
Put the pedal to the metal and build baby build!!! Thank you MC construction. This is going to be sooooo cool!
Getter done.
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