"The scheme to build the new station will let Amtrak's chosen developer avoid the financial risks associated with public works mega-projects by handing that developer the rights to run - and profit from - the complex for decades. Any developer would have to borrow billions to build something suitable to President Trump's tastes. But this plan gives the private company the right to make that money back - and more - by charging fees to Penn Station's transit agencies, commuters, retail tenants."
"Amtrak last month invited developers to share their interest and credentials in preparation for the federally owned inter-city railroad inviting requests for proposals to redevelop Penn Station, the country's busiest transit hub. According to the request for letters of interest, whatever developer wins the public-private partnership deal to rebuild the station will design, build, operate, maintain and finance the facility - an arrangement known as a DBOM."
Amtrak plans a privately financed redevelopment of Penn Station under a DBOM model in which a private developer will design, build, operate, maintain and finance the facility. The developer would borrow billions up front and recover investment by operating the complex and charging fees to transit agencies, commuters, or retail tenants. The DBOM structure shifts construction risk away from Amtrak while granting long-term operational and revenue rights to the private partner. Historical examples of privatized transit expansions show taxpayers and riders can end up absorbing costs when private projects experience mishaps, delays, or financial shortfalls.
Read at Streetsblog
Unable to calculate read time
Collection
[
|
...
]