Business group supports rail
By Sean Hao
Advertiser Staff Writer
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The Hawaii Business Roundtable yesterday threw its weight behind Honolulu's planned $3.7 billion rail system.
The group, which is comprised of the chief executives of 50 major local companies, is urging a "yes" vote on a rail-related question in the general election. That position was taken following an internal financial assessment that showed the project's estimated price tag is reasonable, the group said.
However, the group raised concerns that tax revenue collections to build the train will be lower than anticipated. That may necessitate extending the half-percentage-point transit tax — now scheduled to expire in 2022 — until 2027.
The announcement comes at an opportune time for supporters of the city's plan to build a 20-mile elevated commuter rail from East Kapolei to Ala Moana. However, the concerns raised by the group of business leaders could provide fodder for anti-rail groups that contend the train is too expensive.
Honolulu Mayor Mufi Hannemann welcomed the endorsement.
"It's very significant that a leading group of CEOs in our community are saying that this is something that we should do," he said. "Like all good business leaders, they have some concerns, but it's nothing that is insurmountable."
Among the Roundtable's findings:
The group also supported the concept of creating a transit authority to oversee construction and operation of the train system.
Hannemann said it's too soon to consider extending the transit tax. In addition, the project's estimated cost includes nearly $1 billion to cover contingencies, which could mitigate the impact of any tax revenue shortfalls.
Roundtable member and Starwood Hotels & Resorts Senior Vice President Keith Vieira said it was time for the Roundtable to take a stand on rail.
"It was important that a group with leadership of CEOs from various companies make a stand either supporting or against it to get that word out," he said. "At the end of the day, people recognize that we need to support rail.
"Having said that, there're obviously concerns that everybody has that people want to address (including) costs (and) how are we going to pay for it, especially with what's going on with the current economy."
Reach Sean Hao at shao@honoluluadvertiser.com.
