There’s been little, if any, good news these days when it comes to the economy. So it’s encouraging to hear the latest news surrounding the city’s $5.5 billion rail transit project: The city awarded the contract for the first phase of the project — at a cost savings of $90 million.

That’s good news for taxpayers, who can expect similar savings if the project keeps its momentum and makes the most of lower construction costs brought on by the sagging economy.
In addition, the city estimates the project will generate more than 10,000 jobs a year for nine years. About 4,200 of those jobs will be in the construction industry, which has seen thousands of workers sidelined for far too long.
Then there’s the ripple effect those jobs produce, as workers spend their wages at local restaurants and stores, further fueling the local economy.
And with revenues forcing furloughs and state office closures, and declining tourism dollars, the city’s rail transit project is the economic boost Hawaiçi desperately needs.
“This is the time when the multiplier is turbo supercharged; there are unemployed workers and excess capacity,” said economist Paul Brewbaker, principal of TZ Economics.
Brewbaker said the city should take it further by enabling the private sector to begin commercial development around transit stations now by making entitlements available, rather than waiting for developers to apply for permits and wade through a cumbersome and lengthy process.
With the success of this first contract in hand, Honolulu Mayor Mufi Hannemann said he’ll work to push out the proposal for the second phase — the segment running from Pearl Highlands to Aloha Stadium — in less than four weeks, two years ahead of schedule.
Lower construction costs could save taxpayers hundreds of millions of dollars over the life of the project, and help recoup a $360 million projected shortfall in tax collections brought on by the economic downturn.
“I’ve never seen the economy as bad as it is now. Therefore, what government has to do, if it is in a position to do so, is accelerate job opportunities. This lets people know the rail project is for real and coming. Secondly, it’s going to create jobs. There is no other economic stimulus in the state now that can create the jobs and do what rail can do. Thirdly, it gives people hope and optimism,” Hannemann said. “We’re taking advantage of a down economy with low construction costs. It’s good, prudent fiscal policy to do that.”
Let’s hope that the Honolulu City Council understands the value of avoiding needless delays. The council on Tuesday will vote on finalizing the project’s programmatic agreement. The agreement, part of the environmental impact statement, deals with how the city intends to handle historical sites and iwi, as the project moves forward.
City Council Chairman Todd Apo said the document seems to adequately address these issues, and while he doesn’t anticipate any snags, the project is always vulnerable to politics.
“The council, as a body, has done a good job with this project. Obviously there are some on the council who will use specific issues to go beyond what our role is here. The message is: Don’t be obstructionist, but play your role correctly. That means making sure things are done efficiently without creating roadblocks or obstructions,” Apo said.
Agreed.
Rail transit is a sensible alternative for commuters, and provides a much-needed boost for Hawaiçi’s economy. With fresh momentum behind the project, taxpayers are already seeing significant savings. Needless delays would only jeopardize that course — we need to keep rail on track.