Does the situation with state and local revenue mean the end of the Purple Line?

[Anonymous]

With the cost overruns and the lead contractor looking to quit, is there any way the project moves forward? Seems like the money not there, not just for this but lots of other important priorities. Any ideas on what happens next?

[Anonymous]

Yes, it's over.

[Anonymous]

Yeah. It's completely over.

Maryland is just going to cease all operations, leave roads completely destroyed, abandon the wreck of a campus that is College Park right now, leave half built bridges to rot and decay, and and chalk up all the payouts of eminent domain as a loss.

Yup. That's exactly what is going to happen.

[Anonymous]

Yes, it's over.

Just be aware that the state and counties (MoCo and PGC) will be on the hook for a lot of money either way.

Either they are going to have to pay for the cost overruns and possibly higher costs for a new contractor (if they don't negotiate with the departing contractor) or they are going to have to reimburse the federal government for the money that the federal government invested in the project. With federal transportation grants, the states are responsible for reimbursing the federal government if they do not complete projects. It will cost the state and counties a LOT more not to finish the project than to finish it.

To give you an idea, the project is about $300M over current projections. The original contractor offered the state that they would continue the project with no profit margin for the initial four contractors if the state would pay the overruns. Not sure they'll still take that deal, but it was the starting point. The estimate for getting a new contractor will probably cost around $500M (the $300M for the full project funding, costs to restart with the contractors, e.g. additional overhead, plus a profit margin for the new contractors). The government committed $900M to the project and the state and counties will be responsible for repaying the federal government the $900M if they do not complete the project.

[Anonymous]

Anonymous wrote:Yes, it's over.

Celebrating!!!!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes, it's over.

Celebrating!!!!!

Why? They destroyed acres and acres of trees for the project and tore up the roads. There's nothing to be gained by abandoning the project now and I was not a PL supporter.

[Anonymous]

Make the NIMBYs who blocked it pay the costs.


This is why nothing ever gets done in the US. Too many NIMBYs.

[Anonymous]

Anonymous wrote:Make the NIMBYs who blocked it pay the costs.


This is why nothing ever gets done in the US. Too many NIMBYs.

Absolutely. I think Montgomery County needs to pay the bulk of the extra costs regardless of the which path the state opts for. The state should just decrease the money that Montgomery County gets budgeted from the state next year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Make the NIMBYs who blocked it pay the costs.


This is why nothing ever gets done in the US. Too many NIMBYs.

Absolutely. I think Montgomery County needs to pay the bulk of the extra costs regardless of the which path the state opts for. The state should just decrease the money that Montgomery County gets budgeted from the state next year.

Or how about levying a tax on Chevy Chase MD instead to capture the hundreds of millions their ridiculous frivolous law suits cost the state?

[Anonymous]

Anonymous wrote:

Yes, it's over.

Just be aware that the state and counties (MoCo and PGC) will be on the hook for a lot of money either way.

Either they are going to have to pay for the cost overruns and possibly higher costs for a new contractor (if they don't negotiate with the departing contractor) or they are going to have to reimburse the federal government for the money that the federal government invested in the project. With federal transportation grants, the states are responsible for reimbursing the federal government if they do not complete projects. It will cost the state and counties a LOT more not to finish the project than to finish it.

To give you an idea, the project is about $300M over current projections. The original contractor offered the state that they would continue the project with no profit margin for the initial four contractors if the state would pay the overruns. Not sure they'll still take that deal, but it was the starting point. The estimate for getting a new contractor will probably cost around $500M (the $300M for the full project funding, costs to restart with the contractors, e.g. additional overhead, plus a profit margin for the new contractors). The government committed $900M to the project and the state and counties will be responsible for repaying the federal government the $900M if they do not complete the project.

There was a good article in the Post about this but I think a lot of people would be shocked if they don't work it out - it will reflect really badly on both the contractor and the State if they allow this to fall apart though the entire PPP that they set up is looking stupider by the day. With no stimulus bill on the horizon big construction projects are going to be few and far between in the near future so the contractor should be happy with any deal that just covers their costs with a small profit going forward at this point.

This article did a pretty good job of covering all different interests:

https://www.washingtonpost.com/local/trafficandcommuting/maryland-likely-to-be-on-the-hook-for-millions-if-it-wants-to-save-the-purple-line-project-analysts-say/2020/06/12/29b40dda-ab39-11ea-a9d9-a81c1a491c52_story.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Yes, it's over.

Just be aware that the state and counties (MoCo and PGC) will be on the hook for a lot of money either way.

Either they are going to have to pay for the cost overruns and possibly higher costs for a new contractor (if they don't negotiate with the departing contractor) or they are going to have to reimburse the federal government for the money that the federal government invested in the project. With federal transportation grants, the states are responsible for reimbursing the federal government if they do not complete projects. It will cost the state and counties a LOT more not to finish the project than to finish it.

To give you an idea, the project is about $300M over current projections. The original contractor offered the state that they would continue the project with no profit margin for the initial four contractors if the state would pay the overruns. Not sure they'll still take that deal, but it was the starting point. The estimate for getting a new contractor will probably cost around $500M (the $300M for the full project funding, costs to restart with the contractors, e.g. additional overhead, plus a profit margin for the new contractors). The government committed $900M to the project and the state and counties will be responsible for repaying the federal government the $900M if they do not complete the project.

There was a good article in the Post about this but I think a lot of people would be shocked if they don't work it out - it will reflect really badly on both the contractor and the State if they allow this to fall apart though the entire PPP that they set up is looking stupider by the day. With no stimulus bill on the horizon big construction projects are going to be few and far between in the near future so the contractor should be happy with any deal that just covers their costs with a small profit going forward at this point.

This article did a pretty good job of covering all different interests:

https://www.washingtonpost.com/local/trafficandcommuting/maryland-likely-to-be-on-the-hook-for-millions-if-it-wants-to-save-the-purple-line-project-analysts-say/2020/06/12/29b40dda-ab39-11ea-a9d9-a81c1a491c52_story.html

I'm the PP you responded to. Good article. I see that the cost overruns have escalated and it's now up to $755M in overruns. If the state drags its heels much longer, it may be right to pay the federal government back the $900M and abandon the project. Hopefully Montgomery County will be responsible for paying most of that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Make the NIMBYs who blocked it pay the costs.


This is why nothing ever gets done in the US. Too many NIMBYs.

Absolutely. I think Montgomery County needs to pay the bulk of the extra costs regardless of the which path the state opts for. The state should just decrease the money that Montgomery County gets budgeted from the state next year.

Or how about levying a tax on Chevy Chase MD instead to capture the hundreds of millions their ridiculous frivolous law suits cost the state?

Sorry, life doesn’t work like that. No matter how much you want to punish people who worked harder and are more successful than you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Make the NIMBYs who blocked it pay the costs.


This is why nothing ever gets done in the US. Too many NIMBYs.

Absolutely. I think Montgomery County needs to pay the bulk of the extra costs regardless of the which path the state opts for. The state should just decrease the money that Montgomery County gets budgeted from the state next year.

Or how about levying a tax on Chevy Chase MD instead to capture the hundreds of millions their ridiculous frivolous law suits cost the state?

Sorry, life doesn’t work like that. No matter how much you want to punish people who worked harder and are more successful than you.

This has nothing to do with how hard they worked, how successful they are, or how wealthy they are.

The tax is because they are the ones responsible for the cost overruns due to frivolous lawsuits that added delays and millions of dollars of expenses just because they wanted to increase their property value, even though they purchased said property at a discount due to the Purple Line route going through their back yards.

These NIMBYs should have to pay for all of the costs that their lawsuits added to the project.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Make the NIMBYs who blocked it pay the costs.


This is why nothing ever gets done in the US. Too many NIMBYs.

Absolutely. I think Montgomery County needs to pay the bulk of the extra costs regardless of the which path the state opts for. The state should just decrease the money that Montgomery County gets budgeted from the state next year.

Or how about levying a tax on Chevy Chase MD instead to capture the hundreds of millions their ridiculous frivolous law suits cost the state?

Sorry, life doesn’t work like that. No matter how much you want to punish people who worked harder and are more successful than you.

This has nothing to do with how hard they worked, how successful they are, or how wealthy they are.

The tax is because they are the ones responsible for the cost overruns due to frivolous lawsuits that added delays and millions of dollars of expenses just because they wanted to increase their property value, even though they purchased said property at a discount due to the Purple Line route going through their back yards.

These NIMBYs should have to pay for all of the costs that their lawsuits added to the project.

So a small group of people in Chevy chase tried to stop the project and you are going to punish the whole area? Does that seem fair to you?

Plus, this would send a very dangerous, and arguably illegal, precedent of retaliating against people who try to oppose government actions through the legal process.

Obviously you disagree with the objectors, but if we say that people bringing environmental claims (or other claims of government misconduct) will have to pay for costs if they lose, we will prevent possibly worthwhile lawsuits from going forward. You can’t just say you disagree with their lawsuit so they should be punished without also accepting that people, for example, opposing Trump’s wall on environmental and other grounds could face the same punishment.

[Anonymous]

The town of Chevy Chase was involved in the suit.

Either way, the area is responsible for the delays. They should have been required to post bond in an escrow when they filed the silly suits. now, everyone else has to pay for it.

And yes, it is still cheaper for the county to pay the overruns than to pay back the feds, and leaving the area in a partial state of construction presents a nightmare.