Saturday, June 23, 2007

More Anchorage Airport Railroad Depot Background

This comes from Andrew Halcro's website. Halcro was a Republican state representative from 1999-2003. On his site his biography says he is
President, Avis/Alaska (Statewide Family business owned and operated
since 1955) 2002-Present
He ran for governor of Alaska in 2006 as an Independent. He's sharp and talks straight. Below is his account of how the depot got built from a discussion of a candidate forum in Seward in March 2006. He's discussing John Binkley, then a Republican primary candidate for Governor.

Basically this is consistent with what I wrote earlier and fills in a few more details.

But the most amusing comments was his defense of the $28 million dollar cruise ship passenger depot at the Anchorage Airport. In fact, reconciling his comments to the audience on Friday with history, is a great lesson on how some politicians tend to lose memory when they run for office.

In the spring of 2001 while I was in the legislature I had my first conversation with John Binkley. He came to my office to address my concerns as a vocal critic of the railroad spending $28 million dollars of taxpayer money to construct a facility that was going to serve a limited use (cruise ship passengers) and be closed for 8 months a year.

During that conversation, Binkley who was the Railroad's Chairman of the Board and supported the rail depot, told me that the reason they went ahead with the project was that they didn't want to embarass Senator Ted Stevens by giving back the money. Even though the railroads own feasibility study raised questions about the project.

However on Friday, the rail depot turned from a "must do" to a "must have".

In his comments on Friday, Binkley defended the depot as a vision for the future. We built this so we could encourage commuter transportation and not have the roads clogged up with rental cars, eliminate the need for $56 million dollar parking garages (referring to the new Anchorage Airport car rental facility under construction) and to eliminate the need for expanding the Glenn Highway to four lanes. [Although Halcro has his rental car background on his biography on his webpage, and may assume that people know this about him, it would be nice if had made that clear for people who find this on the web and don't know. It doesn't change anything, but letting people know your connection to an issue a good habit to get into.]

Now lets stop here.

First, when the railroad board gave the rail depot the green light there was no car rental garage planned yet. Even so, would you rather have a $56 million private structure that generates millions in revenue or a $28 federally subsidized rail depot that's closed eight months a year?

Second, those rental cars clogging all the highways (unlike the tour buses from cruiseships) actually pay local and state taxes that reduce tax burdens of Alaskans. In Anchorage alone, the industry contributes almost $10 million dollars a year. Not to mention another $5 million dollars a year to the Anchorage Airport in concessionare and lease fees that help keep the airport open.

Third, I'm sure the 40,000 Alaskans a day that commute from the Mat-Su would love to know that John Binkley's vision for improved transportation in the region is based on them giving up there vehicles for a train ride.

Ironically, the railroads own economic feasibility study panned the idea of commuter rail to the airport due to a lack of railroad infrastructure, a sparse population base and the reality of infrequent trips.

But then again, anybody who would have taken the time to read the airport rail depot's feasibility study would have known that. But this was never an issue of what was best for taxpayers, this was about self interest.

In December 1998, a month after being elected to the State House I was invited to lunch with former Governor Sheffield who was head of the railroad at the time. I brought up the subject of the proposed rail depot. At the time, the railroad was still in the process of having a local firm conduct the feasibility study.

I told the governor I thought the project had a limited appeal and was a bad use of taxpayer money. However, it was very clear from his response that regardless of what the projected economics concluded, his was going to spend $28 million on the depot.

In December 2002, Sheffield and others sipped champagne as they celebrated the grand opening of the Bill Sheffield Airport Railroad Depot complete with a bronze bust of the former governor.

Today the rail depot is open on a regular basis only for cruise ship passengers from mid-May to September who pay nothing for the facility. The total yearly passengers are less than 50% of what their feasibility study projected they'd be by this date.

At least the next generation of taxpayers won't have to look down the tracks very far to see why they're inheriting an $8 trillion national debt.

All aboard.

1 comment:

  1. what about john shively? he took the fall for sheffield in the labor union/rent scandal in fairbanks, and after serving as dnr commissioner under knowles (when sheffield was running railroad, and having more derailments than brittany - see huge canyon creek spill - frank murk declared it clean - not!), shively became head of northwest cruise ship lobby.

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