In unrelated news, one thing I've been curious about for a little while now is that on JTA's website with U2C Documentation, they include a letter from the FTA regarding the remaining FTA obligation in Skyway vehicles, including a $1.6 million payback requirement to relieve federal interest in the trains. However, we've never seen the version of this letter about the Skyway's infrastructure, the cost of which I recall being a major part of the argument for why the U2C was the only feasible option to continue the infrastructure through the end of its useful life, which therefore meant we had to spend $246 million (or more, now) converting it into the road for autonomous vehicles. There were at one point claims by JTA that demolishing the Skyway could require anything between 40 to 50 million to be repaid to the FTA to the entire original federal contribution to the construction of the Skyway. But for the life of me, I don't believe we've ever seen anything from the FTA to back that up. I wonder why that is.
This.
I, and other, have repeatedly made the point that the supposed repayment to the Feds for killing the Skyway is (1) a red herring and totally overplayed, (2) could likely be forgiven if we asked nicely, especially since the Skyway was always an "experimental"/prototype/demonstration project or (3) would be cheaper to pay than to continue operating and investing in the damn thing.
JTA conveniently uses this excuse to justify soaking up ever increasing dollars from gullible City officials so they can pay JTA executives and consultants handsomely for managing a "major" project. I suggest asking anyone on the City Council if they have personally reviewed the payback scheme JTA alludes to. Perhaps the hapless Council should pay big bucks to a consultant to handle that for them like the stadium deal .
I was curious enough to finally put in a public records request about this. It took JTA about a week and a half, but they have produced two letters from the FTA dated October 16, 2015 and April 20, 2021. Unfortunately, they might actually be (mostly) right here. Here are the letters.
Now my read of this is that the full federal payback would amount to about $100 million (although I'm not sure if that would have to then account for inflation since the 90s), so whether that is still cheaper is questionable, but it does appear that there is at least some indication that the FTA told JTA they would require repayment.
Marcus, great and potentially explosive info that confirms my suspicions all along about JTA playing the public and City officials with this red herring. No wonder JTA wasn't more forthcoming sharing them.
These letters disclose serious issues that should be investigated by the Jaxson or Nate Monroe!
In the earlier 2015 letter (interestingly, only dated with the time stamp, not in the letterhead by the writer) the FTA states:
...FTA is entitled to its share of the remaining Federal interest
based on straight line depreciation or fair market value of the withdrawn Project equipment and supplies."Using the letter's date of inception in 1985, and taking straight line depreciation over 50 years, the remaining value in 2023 would be no more than $24 million (12 years remaining at $2 million/year). If we use fair market value (FMV), given the system's equipment is no longer supported, the FMV is likely close to worthless. So, JTA is way overstating the exit costs based on this letter (as I have always suspected, and that is without any negotiations or political intervention to bring it down further, if needed).
The second letter in 2021 reads almost identically to the 2015 letter with a strange change in wording on this same point.
“the recipient agrees that it
may be required to return
the entire amount of the federal assistance
expended on that property to FTA.”
It now says JTA "MAY" (not "shall" or "must") have to return the "ENTIRE" amount of the Federal assistance. This possibility makes absolutely no sense and one would think JTA would challenge this based on that PLUS having the earlier letter that was much more favorable. And why did JTA even ask for the second letter when the first should have sufficed?
This makes me think JTA is in possible cahoots with FTA in wanting to keep investing in the Skyway for its own reasons. JTA enjoys touting that it has to pay a huge sum back to the Feds to justify not abandoning the Skyway. I call out this as BS and these letters back me up!
Let me know if I am missing anything but based on these letters I don't see otherwise.
Hope someone can jump on this right away as, if I am correct in my reading of these letters, and absent any other documents to the contrary, this could be fatal news for the AV project!If substantiated, the loss by JTA in credibility alone should be fatal, in and of itself, for ever investing another penny in the Skyway and heads should roll.