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Comments (4)
Is there ANY way the city can fight this in court? It seems unworldly that the Vera would let this go without a fight....Then again (and sadly), maybe not.
Posted by Scott-in-Japan | April 25, 2004 11:09 PM
Remedy? There is a structural problem inherent to almost all economic development proposals. Politically connect beneficiaries obtain immediate rewards while the guarantors, with speculative obligations, are not called upon until ten or twenty years later. This is a huge lag time to recognize a failed financial design.
Mr. Allen could be viewed, in one perspective, as a hapless participant. The politicians advocating construction, with immediate rewards to a constituency, used Paul Allen’s wealth as a distraction. The supposed future benefits, to the public at large, of the existence of new public facilities is just the happy-face on the analysis that spends huge unrecoverable borrowed dollars today.
It is almost impossible to win an argument about speculative future failure (to be paid by someone else or even the next generation) when there are arguments about the immediate and targeted list of winners from construction today.
Sadly, the remedy is more of the same – in even higher amounts. The economists (what I call politically correct economists) cannot snap out of their circular reasoning favoring borrowing or they will go broke because they will no longer have paying clients.
If we could go back and recover the money from the original contractors of the Rose Garden then we could get back to square one.
I think those contractors have moved on the building 2 billion dollars worth of roads and are also building tens of millions of dollars worth of public housing with dollars that the State Treasurer has eagerly borrowed on their behalf (oops I mean on our behalf). The public housing ownership documents are conveniently allowed to be used as collateral in Oregon commercial banks at ninety percent of face value for purposes of doing more of the same. The network of beneficiaries represents the Oregon economy. Would you really want to be a party to destroying Oregon’s economy?
Posted by ron | April 26, 2004 10:10 AM
I'm not looking for a remedy, or even looking at the issue itself.
I'm just struck that in the same country where the old woman at McDonald's gets a pay-off for spilling coffee on herself - no one is even *trying* to get the city out from this mistake. For all of the protestors in PDX, I hear a lot of silence on this.
Posted by Scott-in-Japan | April 27, 2004 5:59 AM
OH BUT YOU DON'T MIND HAVING A BASKETBALL TEAM DO YOU? GIVE ME A BREAK YOU SOCIALIST WHINERS.
Posted by My Name | June 10, 2004 9:13 PM