Posts Tagged ‘light rail’

Lawsuit Filed To End Austin Toy Train Tax

Thursday, August 29th, 2024

We had previously covered the various failures of Austin’s toy train Project Connect light rail project to achieve its stated goals. Now a lawsuit has been filed to put the light rail tax out of our misery.

A new class action lawsuit filed in Travis County 126th District Court claims that the City of Austin is collecting annual property tax illegally to fund Project Connect since the project is not following through on delivering the public transit development that voters agreed to in 2020.

As KVUE reported, voter-approved Project Connect has faced legal action in the past from taxpayers and is now facing another lawsuit brought by the same group of plaintiffs who want to prevent the city from continuing to collect millions of dollars in property taxes to fund the now reduced Project Connect plan.

The plaintiff’s lead counsel, Bill Aleshire, said, “They’re pursuing what I call a ‘miniature’ Project Connect that’s not city wide.”

Aleshire explained that Project Connect “started as a $7 billion plan that included 30 miles of rail, a route to the airport and downtown, now has a more than an $11 billion price tag and half the routes.”

He also argued that the city “miscalculated” its 2024 tax rate and that the funds already collected are not being spent on the transit project.

“Not including this year’s $187 million, Austin’s Project Connect tax levy has been for over $630 million. But there is $476 million on hand, unspent, uncommitted,” Aleshire said.

Project Connect managers, the Austin Transit Partnership, described the lawsuit as “baseless” and stated the funds collected would be utilized in the future, according to KVUE.

Lead plaintiff Cathy Cocco referred to the transit project as “an unaffordable, outdated, yesterday idea not suited for the 21st century city that needs to be efficient, agile, affordable, and more equitable for all Austin residents.”

While Project Connect had the potential to benefit the Austin community, Cocco sees the plan as a “bait and switch scheme.”

The group wants city leaders to stop the tax, revisit the project, and ask Austinites to vote on it again.

Note that previous Project Connect lawsuits remain unresolved.

At this point it’s obvious that Austin voters were sold a bill of goods. They’ve coughed up a lot of taxes and gotten an underutilized toy train that doesn’t meet the promises made in the bond language. The entire project should be scrapped and money returned to taxpayers. Of course, that would mean Austin’s ruling political establishment would have to admit they were wrong and give up control of a big bucket of money, so we know that’s not happening without a fight…

Granola-Cruncher Train To Close Granola Store

Saturday, June 1st, 2024

Enjoy some light irony on Saturday, namely the fact that the environmentalist-backed light rail project is forcing the closure of a health food coop.

Austin’s cooperatively-owned grocery store and market Wheatsville Food Co-op is going to be closing its original North Campus location eventually. The last day for the 3101 Guadalupe Street shop will be on December 31, 2026.

A press release noted that Wheatsville board of directors and management decided to not renew the West Campus store’s lease, which ends at the end of 2026. A major reason for this decision was the city’s light rail plan Project Connect, which would run through Guadalupe Street. “While this project is in the public interest, it will also curtail our ability to operate in this location,” says general manager Bill Bickford via a statement. The train would take up the major street’s middle lane, so then it would be “impossible for the large trucks our primary suppliers use to access the delivery area,” he writes. Therefore, “if we cannot receive product, we cannot operate a grocery store.

Rita Daily, Wheatsville’s marketing director, noted through email that the shutter was announced to the owners — its website boasts over 28,000 members — this morning. The company is going to se if they can reopen or operate what they describe was “small-format stores” instead.

There’s a south Austin location that will evidently remain open, though one wonders how long the south location can survive without a steady influx of dewey-eyed leftwing college saps the Guadalupe location’s proximity to UT provided.

The irony on top of the irony is that statutory difficulties make it more and more likely that Project Connect light rail system will never actually be built, so the coop will be closing only to line the pockets of high priced consultants.

Granola will oft granola mar…

Is Austin’s Toy Train Finally Dead?

Sunday, May 5th, 2024

Austin’s liberal establishment has been trying to trick taxpayers into pouring billions into their light rail boondoggle for decades, finally winning an apparent victory when voters approved a scheme in 2020. But it turns out that the terms of the ballot language may have doomed the project.

Austin’s controversial light rail program, approved by voters in 2020, could be null and void due to an allegedly unconstitutional financing proposal.

According to press reports, during a court hearing, proponents of the transit scheme found themselves unable to defend the project’s ability to borrow money. Absent this authority, it is unlikely to continue.

At issue is the convoluted structure of the measure presented to voters in 2020. Designed to evade state limits on debt and borrowing (which seemed like a money laundering arrangement), the measure created a so-called “governmental corporation” called the Austin Transit Partnership. According to the 2020 proposal, the Austin Transit Partnership was supposed to be funded by a one-time increase to the city’s maintenance and operations property tax.

However, proponents of the project lowballed the cost estimate.

Austin’s liberal establishment, lowball cost to get something passed?

Combined with Biden’s inflation, this has led to a situation where the Austin Transit Partnership now needs to borrow substantial sums.

Unfortunately for proponents, state law prohibits using maintenance and operations property tax dollars to pay debt for so-called ‘governmental corporations.’ While a second component of the property tax—interest and sinking—could be used to pay debt, that’s not what was approved in 2020.

It was obvious to any non-Democrat that the Project Connect light rail project was a boondoggle from the git-go, just as the previous light rail effort was a failure. The fact that more than three years on, Project Connect still doesn’t have a definite plan or path is a handy indication of its dysfunction. Hopefully Texas courts will put it out of Austin taxpayer’s misery.

But I’m sure lots of consultants got paid quite handsomely…

LinkSwarm for Wednesday, June 30, 2010

Wednesday, June 30th, 2010

A collection of sundry links to enliven your day:

Hat tips to Instapundit, Real Clear Politics, Slashdot, Whipped Cream Difficulties.