Last of the Bohemians

When I moved to Los Angeles 30 years ago, Ocean Front Walk in Venice Beach looked like a hippie parody.  It had a counter-cultural veneer, but didn’t rate as an authentic bohemian hot spot.

Contrast, for example, with New York’s East Village with its revolutionaries, junkies, artists and various iconoclasts living side-by-side.

The weekend spectacle at Venice – vendors, performers and “street people” showing off to crowds of tourists – struck me as self-conscious and phony. Plus, I could never call Ocean Front Walk a “board walk” because (unlike Brighton Beach and Coney Island) there was No Board.

Since then, of course, New York has been “cleaned up.” Now Tompkins Square is family-friendly and the old walk-ups are inhabited by urban professionals worried about layoffs and declining property values.

Times have changed.  The gulf between haves and have-nots is widening.  Living on the edge is not just a life-style choice.  “Drop-outs” need somewhere to go.

These days I see Ocean Front Walk in Venice as more a refuge than a counter-cultural carnival.  With overnighters climbing out of their sleeping bags each morning, it’s a pretty good location for people without money.

Where else should they live?

I understand why local residents are advocating that something be done to make Ocean Front Walk safer and more sanitary.  With some calling for a police “crack down.”

But now that the “tune-in, turn-on, drop-out” sub-culture is a history text book sidebar, I’m glad there is, at least, someplace warm for the dispossessed to hang out.

Here at Venice Beach, where the continental U.S. ends, could be the last stop for these new bohemians.

Making Stuff Up at Atlantic Cities

Editor Sommer Mathis over at The Atlantic Cities has taken to making stuff up. In a recent post she reported on a dispute in the city of Seattle over minimum parking requirements relating to multi-unit buildings. She said:

Defenders of suburban-style development like Wendell Cox and Joel Kotkin would argue that these young people just don't understand how their lives and desires are going to change once they start families. Single-family, detached homes with a quarter acre of land and two cars in the garage are suddenly going to look a lot better to all these idealistic, bicycle riding twenty-somethings once the reality of parenthood sets in.

Kotkin and Cox also worry that developers and city planners rushing to meet the youth-driven demand for denser housing options that don't necessarily include parking are shooting themselves in the foot.

The only problem is that I have never commented on minimum parking requirements. I checked with Joel Kotkin and he advises that he has never covered the issue.

Mathis continues (after an citing a quote by Joel Kotkin article in Forbes):

What's funny about these assumptions is their total lack of faith in the free market.

Of course, since our alleged positions on minimum parking requirements are figments of Mathis' imagination, her "free market" conclusion misses the mark. Indeed, the most destructive impact on urban land markets today is urban growth boundaries and "winner picking" land use restrictions that deny people their preferences (as my Wall Street Journal piece, California's War on Suburbia, argued on Saturday). I am most concerned about these because of their potential for hampering the metropolitan economy, interfering with upward mobility and increasing poverty (I suspect Joel would agree). Moreover, young households soon figure out that they need more than the 4th floor (or 40th floor) balcony to raise a child.

Census Bureau Releases Latest Take on America’s Urban Areas

We are used to dealing with jurisdictional boundaries when assessing and comparing cities. These are often either municipal areas or metropolitan statistical areas (which are based on entire counties). But these can have little relevance to the amount of area in a given city-region that is actually urban in nature. This makes apples to apples across regions difficult.

Once a decade though the Census Bureau gives us a more detailed look. They release definitions of so-called “urbanized areas” that attempt to look at just the amount of land that is actually urban in form. In theory this would allow for better apples to apples comparisons between regions. Unfortunately, most data is not sliced this way, so we only get this glimpse. Here’s the map of the new 2010 urbanized area definitions:

Wendell Cox has a breakdown of the largest urbanized areas that includes density. He also published a historical review that tracks urbanized area population and density since 1950 for the largest city regions. For more thoughts on urbanized areas, see Nate Berg’s take over at Atlantic Cities.

I don’t want to try to offer a complete analysis of this right now, but one thing that really jumped out at me was the very low densities of some southern boomtowns like Atlanta (1,707/sq. mi) and Charlotte (1,685/sq. mi.). Contrast with even Houston (2,979/sq. mi.) and Dallas (2,879/sq. mi) and see the difference. Atlanta is already showing serious signs of weakness vs. the Texas mega-metros and I wonder if this is part of the reason why. It also makes me wonder if Charlotte might someday suffer in a similar manner if its growth ever flames out.

Transportation Aborted

Like most Americans, I was bombarded by sound-bites and blog-bytes surrounding an amendment to an Act of Congress that would require a woman to submit to and review the results of a trans-vaginal ultrasound before receiving an abortion. This amendment was covered ad nauseam by everyone from the Huffington Post to the nightly news on broadcast television. I don’t mind admitting that I’m past the age where this Act of Congress would have an effect on me personally.

What really bothered me was that no one talked about the core problem of how deranged our political process has become in Washington. The real issue here that impacts all of us is that this amendment was attached to a transportation funding bill – TRANSPORTATION, not a Health Care Bill or a Health Insurance Bill or even an Equal Opportunity Employment Bill but a TRANSPORTATION funding bill.

All of these journalists are as at fault over the issue as the bunch of Congressmen who tried – once again – to slip one past the balance of powers and our democratic form of government. The guilty parties in Washington DC start with:

In the House of Representatives, Mr. Fortenberry (NE), Mr. Boren (OK), Mrs. McMorris Rodgers (WA), Mr.Scalise (LA), Mr. Tiberi (OH), Mr. CONAWAY (TX), Mr. Lamborn (CO), Mr. Walberg (MI), and Mr. Lipinski (IL) who introduced  “H.R.1179 -- Respect for Rights of Conscience Act of 2011” on March 17, 2011. By the time the bill was attached as an amendment to the highway funding bill, the number of co-sponsors had risen from 8 to 221.

In the Senate, Mr. Blunt (MO), Mr. Rubio (FL), and Ms. Ayotte (NH)) introduced S. 1467 on August 2, 2011. The cosponsors in the Senate went from 2 to 37.

That’s a total of 260 elected representatives who will be responsible for the continuing deterioration of highway infrastructure in the United States. The current Federal authorization for funding surface transportation programs ends March 30, 2012.

The current funding authorization is just the most recent in a long line of temporary extensions that have been strung together since the last 5-year plan expired in 2009. The highway funding bill in question – to which this healthcare amendment is being attached – would authorize funding of $109 billion over 2 years. If nothing is done by March 30, if no action is taken to fund US highway infrastructure, the Department of Transportation (DoT) will have to furlough workers and stop paying contractors, according to Humberto Sanches of Roll Call. Last summer, DoT sent home 4,000 FAA employees and 70,000 private-sector workers because Congress failed to act on funding.

The process for highway funding is already convoluted and inefficient – watching the current Congress add abortion amendments to the funding bill gives us a peek into how it got that way. In the meantime the United States’ infrastructure is crumbling and the rest of the world is getting ahead of us. No wonder we’re deranged.

New US Urban Area Data Released

This morning the US Bureau of the Census released data for urban areas in the United States. The urban population of the US rose to 249.3 million in 2010, out of a total population of 308.7 million. Urbanization covered 106,000 square miles, representing 3.0 percent of the US land mass. Overall urban density was 2,342 per square mile (905 per square kilometer).

The Los Angeles urban area was again the nation's most dense, at 6,999 per square mile (2,702 per square kilometer), a slight reduction from the 7,068 figure (2,729 per square kilometer) in 2000. The most dense urban areas with more than 1,000,000 population were Los Angeles, San Francisco, San Jose, New York and Las Vegas (in that order).

Overall, the 41 major urban areas had an average density of 3,245 per square mile (1,253 per square kilometer). The table below provides data for the major urban areas and overall data.

United States Urban Area Data: 2010 Census
Major Urban Areas  & Summary
Rank Urban Area
Land Area (Square Miles)
Density per Square KM
1 New York--Newark, NY--NJ--CT
2 Los Angeles--Long Beach--Anaheim, CA
3 Chicago, IL--IN
4 Miami, FL
5 Philadelphia, PA--NJ--DE--MD
6 Dallas--Fort Worth--Arlington, TX
7 Houston, TX
8 Washington, DC--VA--MD
9 Atlanta, GA
10 Boston, MA--NH--RI
11 Detroit, MI
12 Phoenix--Mesa, AZ
13 San Francisco--Oakland, CA
14 Seattle, WA
15 San Diego, CA
16 Minneapolis--St. Paul, MN--WI
17 Tampa--St. Petersburg, FL
18 Denver--Aurora, CO
19 Baltimore, MD
20 St. Louis, MO--IL
21 Riverside--San Bernardino, CA
22 Las Vegas--Henderson, NV
23 Portland, OR--WA
24 Cleveland, OH
25 San Antonio, TX
26 Pittsburgh, PA
27 Sacramento, CA
28 San Jose, CA
29 Cincinnati, OH--KY--IN
30 Kansas City, MO--KS
31 Orlando, FL
32 Indianapolis, IN
33 Virginia Beach, VA
34 Milwaukee, WI
35 Columbus, OH
36 Austin, TX
37 Charlotte, NC--SC
38 Providence, RI--MA
39 Jacksonville, FL
40 Memphis, TN--MS--AR
41 Salt Lake City--West Valley City, UT
Other Urban Areas
Total Urban
Total Population
Share Urban

The House Home Savings Built

After doing his duty for the Navy in Washington D.C. during World War II, my father returned to Los Angeles, and my parents moved into the Talmadge Apartments between Western and Vermont. They’d been married for 17 years without having any children. So my father informally adopted his two nephews.

Around 1949, those nephews, who were students at UCLA, threw a party at the apartment. It was apparently a night to remember. The management decided to not renew my father’s lease. Shortly after that, my father’s wife announced, after nearly two decades of a childless marriage, that she was with child. (Full disclosure: that child was none other than this writer.)

So my dad leased a house facing the Wilshire Country Club in Hancock Park. Then, in 1959, he formed a corporation to buy a nearby Tudor house, hire domestics, and rent the house back to him with domestic services. This was the man who founded the largest savings and loan in America, who in those years probably enabled more Californians to become homeowners than anyone else. But he was technically a renter all his life. Those were the days of the 70-percent and 90-percent top tax brackets, and byzantine legal structures were common.

In mid-century Los Angeles, anything on Wilshire Boulevard was considered more prestigious than anything on the side streets. On the eastern end near Lafayette Park was the Bullocks Wilshire department store. Several miles west were the Miracle Mile department stores, which had beautiful shop windows facing the boulevard, even though most people entered the stores through portes-cochères in the rear. Many of the major liberal establishment churches—the PCUSA, the United Methodists, St. Basil’s Cathedral, and the Wilshire Boulevard Temple, Rabbi Magnin’s huge reform synagogue—lined the street. The Ambassador Hotel was one of the great hotels of the city. And then there was The Brown Derby Restaurant, which gave us the Cobb Salad.

My father was originally from Omaha, Nebraska, but he moved west, graduating from the University of Southern California in 1927 and emerging from the Great Depression as a successful insurance underwriter. During the war, he heard talk among the military that Southern California was going to take off, so he bought a one-branch thrift downtown called Home Savings and Loan. Soon, it grew to be a multi-branched empire in four counties: Los Angeles, Orange, San Bernardino, and Riverside.

Partly to get involved in philanthropy and partly to set up an estate plan, my father set up The Ahmanson Foundation. The idea was that The Ahmanson Foundation, after my father’s death, would inherit and control the for-profit companies. This was a common legal arrangement at the time, offering a way for wealthy families to preserve more of the family fortune. (I recommend the novel God Bless You, Mr. Rosewater, by Kurt Vonnegut, for a sense of how it worked.)

Apparently, my father wasn’t a full member of the downtown establishment, for he chose to base his business several miles west of the establishment thoroughfares of Flower and Figueroa. He recruited the artist Millard Sheets to design for him a corporate headquarters on the north side of Wilshire Boulevard, between Serrano and Oxford Streets, in the early 1950s. Then he conceived of a fancier project for that site and hired Edward Durell Stone to design it. A model of it was in our house during my later high school years. It featured two buildings next to each other, with concave faces toward a courtyard. A third, taller building was to stand in back. But that part was never built.

My father died suddenly on June 17, 1968, before ground was broken on the project. Fifteen months later, the U. S. Congress passed, and President Nixon signed, a bill called the Tax Reform Act of 1969. It rendered my father’s estate plan obsolete, for a non-profit foundation could no longer own a controlling interest in a for-profit corporation. Instead of remaining under the control of the The Ahmanson Foundation, Home Savings of America would have to go public. In the meantime, my father’s nephew Robert Ahmanson wound up overseeing construction on the pair of buildings. They were finished in 1973.

The interest rate spike of the early ’80s was hard on Home Savings of America, and they sold off the Ahmanson Center on Wilshire at that time. Still, Home Savings coasted through the savings and loan crisis of the end of the ’80s, thanks to maintaining the conservative policies that my father had instituted.

The area changed a lot in these years. After the Watts Riots of 1965, and in the 10 or 15 years after that, the upper and upper-middle classes of Pasadena, San Marino, Arcadia, and Hancock Park relocated en masse to the Newport Beach area in what I call the secessio patriciorum, or the secession of the patricians. Los Angeles Magazine featured an article in 1977 called “The Ripening of Orange County: Is It Stealing the L.A. Dream?” Indeed, a lot of the life seemed to get sucked out of Los Angeles at that time. One consequence of the secessio was that finance and retail and new construction tended to concentrate either downtown or west of central Beverly Hills. That left the Wilshire corridor in between down at the heels.

Later, that part of Wilshire recovered and reinvented itself. New immigrants from Korea and Latin American countries moved in, and, for many years, such gentrification as took place in the area was done by these immigrants and not so much by white Anglos. After 1990, previously uncool areas like Pasadena, Santa Monica, and parts of downtown began to recover, and the Wilshire district became the heart of Koreatown. I now think of Los Angeles as being similar to San Francisco and Oakland. The West Side up to Hancock Park is like San Francisco, while the parts east of it are like Oakland and the East Bay. London and Berlin have the same sort of east-west-ness.

Koreatown is a wonderful neighborhood, and the Ahmanson Center is still beautiful. But I can’t help feeling a touch of melancholy that my dad’s vision was never fulfilled. He’d hoped to make that part of Wilshire Boulevard one of the great financial and retail corridors of America. Today, the big players are concentrated downtown or in Beverly Hills and westward.

If you walk up the Oxford Street side of the Ahmanson Center, you can see a travertine block with a Latin inscription. Translated, it says, “Robertus and Mauritius, two virtuous men, dedicate this stone to themselves.” Robertus is Robert Ahmanson, who supervised the construction of the center. Mauritius is Maurizio Bufalini, owner of a marble quarry in Carrara, Italy. Bufalini was a good friend of our family, and he provided the Italian and Greek marble that decorates the center. Both these men are “late,” as they say in Botswana English, meaning dead. The stone is dusty now, but the words can still be read. I wonder if anybody notices it, or wonders what it means.

This piece first appeared at Zocalo Public Square.

The Slippery Slope of Corporate Culture

Greg Smith’s resignation lament in the New York Times, Why I Am Leaving Goldman Sachs, has rightly caused an uproar. He writes, “I can honestly say that the environment now is as toxic and destructive as I have ever seen it,” implying that it has been toxic and destructive all along. Tell us something we don’t know.

Twenty years ago when I worked at JP Morgan, the public bond underwriters and pension managers complained that they were at a disadvantage when competing for business with Goldman because they weren’t allowed to “pay to play”, i.e. make political contributions in exchange for business.

Those two banks had long been at opposite ends of the spectrum. A century ago, the original J. Pierpont Morgan told counsel for a Congressional committee investigating the money trust that the most important criterion for supplying commercial credit was character, “Because a man I do not trust could not get money from me for all the bonds in Christendom.” Language, I must add, that distinguished him in ways large and small from moneylenders like Mr. Goldman and Mr. Sachs. Fifteen years ago an unnamed executive summed up the difference in business practices between the two banks to a Times reporter: “Morgan will show up with 20 people for a three-hour presentation to a client. Goldman Sachs will just send two people to sketch out a deal on a napkin at the golf club bar.”

With Robert Rubin, Henry Paulson, and Jon Corzine among the ranks of Goldman's recent former CEOs who have distinguished themselves in government and finance, you learn almost everything you need to know about the contemporary Goldman ethic, good and bad. Current honcho Lloyd Blankfein has said they are doing “God’s work.” For a Goldman investment banker to evoke the almighty as justification, he has to feel real heat.

Mr. Smith feels let down by corruption in Goldman’s corporate culture:

“It might sound surprising to a skeptical public, but culture … revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients…. I am sad to say that I look around today and see virtually no trace of the culture that made me love working for this firm for many years."

A closer look at that culture would reveal something besides always doing right by the client. Corporate culture is really a nice way of moving people with a variety of motives in lockstep. One man’s client service is another man’s rapacious self-interest. Given the profitability of modern finance, rapacious self-interest has had an inexorable pull. The habits ingrained through a strong corporate culture are merely instruments for moving the herd along. Call it conformism, and in this, as in so many other areas, there’s no question that Goldman is a leader.

Upon reading Smith’s op-ed, I opened an excellent reference volume, The Wiley Book of Business Quotations, to the Goldman Sachs entry for corporate culture. (Okay, maybe that isn't quite accurate—I compiled the book myself and knew what was there.) I found Theresa M. Potter's New York Metropolitan Diary column of November 13, 1996:

Dear Diary:
Overheard on the elevator at Goldman Sachs on a recent “dress-down Friday,” a conversation between a long-time partner and a smartly attired young analyst.
Partner (sternly): It’s Friday. You’re not supposed to be wearing a tie.”
Analyst (crestfallen): “But it’s not silk.”

It’s a slippery slope.


Metro Job Recovery in 2011

The latest BLS release for metro area unemployment has full year averages for 2011 available, so we can see which cities added the most jobs last year. On the whole, it was a much better year for metros than we’ve seen in the recent past. The national economy added jobs, and all but two large metros did as well. New York City added the most jobs of any region, but given that it is far and away the biggest city in America, it should do so. NYC ranked only the middle of the pack on a percentage growth basis. On that measure, Austin, Texas was number one.

The top percentage gainer in the Midwest region? Detroit, Michigan. Perhaps this shouldn’t be surprising either, as manufacturing is pro-cyclical.

Here is the performance of the metro areas in the United States with more than one million people, ranked by percentage change. The data is also available in spreadsheet form.

Rank Metro Area 2010 2011 Total Change Pct Change
1 Austin-Round Rock-San Marcos, TX 769.5 791.4 21.9 2.85%
2 San Jose-Sunnyvale-Santa Clara, CA 855.2 878.2 23.0 2.69%
3 Houston-Sugar Land-Baytown, TX 2528.1 2593.1 65.0 2.57%
4 Charlotte-Gastonia-Rock Hill, NC-SC 807.5 826.7 19.2 2.38%
5 Nashville-Davidson–Murfreesboro–Franklin, TN 734.3 751.7 17.4 2.37%
6 Salt Lake City, UT 608.1 622.0 13.9 2.29%
7 Detroit-Warren-Livonia, MI 1737.1 1775.3 38.2 2.20%
8 Dallas-Fort Worth-Arlington, TX 2860.9 2921.7 60.8 2.13%
9 Raleigh-Cary, NC 498.1 508.6 10.5 2.11%
10 Pittsburgh, PA 1125.3 1148.6 23.3 2.07%
11 Oklahoma City, OK 558.5 569.6 11.1 1.99%
12 Tampa-St. Petersburg-Clearwater, FL 1112.0 1132.3 20.3 1.83%
13 Portland-Vancouver-Hillsboro, OR-WA 968.8 986.1 17.3 1.79%
14 Minneapolis-St. Paul-Bloomington, MN-WI 1697.1 1727.1 30.0 1.77%
15 Baltimore-Towson, MD 1274.0 1293.5 19.5 1.53%
16 Seattle-Tacoma-Bellevue, WA 1641.2 1666.1 24.9 1.52%
17 Denver-Aurora-Broomfield, CO 1193.5 1211.6 18.1 1.52%
18 Columbus, OH 903.3 916.9 13.6 1.51%
19 Miami-Fort Lauderdale-Pompano Beach, FL 2185.6 2218.3 32.7 1.50%
20 Phoenix-Mesa-Glendale, AZ 1688.9 1712.8 23.9 1.42%
21 Atlanta-Sandy Springs-Marietta, GA 2272.6 2302.9 30.3 1.33%
22 New Orleans-Metairie-Kenner, LA 519.1 526.0 6.9 1.33%
23 San Antonio-New Braunfels, TX 843.0 853.2 10.2 1.21%
24 Richmond, VA 602.4 609.5 7.1 1.18%
25 New York-Northern New Jersey-Long Island, NY-NJ-PA 8306.8 8403.9 97.1 1.17%
26 Indianapolis-Carmel, IN 871.1 881.2 10.1 1.16%
27 Jacksonville, FL 583.1 589.6 6.5 1.11%
28 Rochester, NY 503.1 508.7 5.6 1.11%
29 Washington-Arlington-Alexandria, DC-VA-MD-WV 2962.9 2995.5 32.6 1.10%
30 Hartford-West Hartford-East Hartford, CT – Metro 533.2 538.9 5.7 1.07%
31 Chicago-Joliet-Naperville, IL-IN-WI 4246.6 4291.4 44.8 1.05%
32 Milwaukee-Waukesha-West Allis, WI 805.8 814.1 8.3 1.03%
33 Louisville/Jefferson County, KY-IN 592.9 599.0 6.1 1.03%
34 Kansas City, MO-KS 971.6 981.4 9.8 1.01%
35 Orlando-Kissimmee-Sanford, FL 1001.1 1011.0 9.9 0.99%
36 Memphis, TN-MS-AR 589.8 595.4 5.6 0.95%
37 Cincinnati-Middletown, OH-KY-IN 980.8 989.4 8.6 0.88%
38 Buffalo-Niagara Falls, NY 538.2 542.7 4.5 0.84%
39 San Francisco-Oakland-Fremont, CA 1880.2 1894.3 14.1 0.75%
40 Boston-Cambridge-Quincy, MA-NH – Metro 2426.5 2443.3 16.8 0.69%
41 Los Angeles-Long Beach-Santa Ana, CA 5126.8 5162.2 35.4 0.69%
42 San Diego-Carlsbad-San Marcos, CA 1222.8 1231.2 8.4 0.69%
43 St. Louis, MO-IL 1286.9 1295.4 8.5 0.66%
44 Las Vegas-Paradise, NV 803.6 808.3 4.7 0.58%
45 Riverside-San Bernardino-Ontario, CA 1125.9 1129.7 3.8 0.34%
46 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 2697.0 2705.9 8.9 0.33%
47 Providence-Fall River-Warwick, RI-MA – Metro 541.3 542.8 1.5 0.28%
48 Virginia Beach-Norfolk-Newport News, VA-NC 735.2 736.8 1.6 0.22%
49 Cleveland-Elyria-Mentor, OH 991.1 992.7 1.6 0.16%
50 Birmingham-Hoover, AL 489.5 488.6 -0.9 -0.18%
51 Sacramento–Arden-Arcade–Roseville, CA 809.9 802.0 -7.9 -0.98%

This first appeared at Aaron's blog,

Historic Day in Corruption History: Two Governors From Same State in Jail at Same Time

Today, history will be made. Rod Blagojevich is going to jail in Littleton, Colorado. Blagojevich will join his predecessor Governor George Ryan who’s in prison in Terre Haute, Indiana. America’s fifth largest state will now have two back-to-back Governors in federal prison at the same time. What other state in America can say that? Both Illinois Governors were convicted of major felonies. Have Illinois voters turned the corner on supporting corrupt politicians? It appears not. Recently, U.S. Attorney Patrick Fitzgerald has been busy. Long time Chicago Machine boss William Beavers was indicted on tax fraud. Tuesday, Illinois State Rep. Derrick Smith was arrested on a federal bribery charge.

Here's a report from WLS-TV:

Federal Transit Administration Weighs In on Honolulu Mayor's Race

The Federal Transit Administration (FTA) has intervened in the Honolulu Mayor's race against challenger and former Hawaii Governor Ben Cayetano. Governor Cayetano and Mayor Peter Carlisle are locked in a bitter contest that could determine whether the proposed $5.1 billion rail line is built. Mayor Carlisle is a strong supporter of the rail line. Challenger Cayetano has promised to "pull the plug" on the rail system. Recent polls show that the project's former thin majority support among Honolulu residents has now turned to opposition.

At a 1:30 p.m. press conference yesterday (March 13), Governor Cayetano released e-mails from the FTA indicating concerns about the rail project. According to Cayetano, "Not only it is apparent that FTA officials share some of our concerns, but it's also apparent that they warned the city about pending litigation if certain things were not done."

One of the FTA emails, obtained from the administrative record said “I do not think the FTA should be associated with their lousy practices of public manipulation and we should call them on it.”

Reflecting a surprising ability to "turn on a dime," FTA quickly responded in an apparent attempt to diffuse Governor Cayetano's point. According to KITV, "In response to the press conference, a spokesman for the Honolulu Authority for Rapid Transportation issued the following statement on behalf of the FTA:"

There is no question that this project has overcome early obstacles because of a much improved Federal partnership with the City of Honolulu and State of Hawaii over the last several years. The Federal Transit Administration believes that this project will bring much needed relief from the suffocating congestion on the H-1 Freeway and provide a real transportation alternative for the people of Oahu as gas prices rise.

Curiously, the FTA's statement contradicted its own previous position on the traffic impact of the rail line. In its January 2011 "record of decision" for the project, FTA indicated:  "Many commenters [on the Draft EIS] reiterated their concern that the Project will not relieve highway congestion in Honolulu. FTA agrees..." Further, it is unusual for federal agencies to take part in local election campaigns.

The Honolulu rail project was covered in more detail in a recent commentary, Honolulu's Money Train.

Clarification (March 15). The complete quotation above was not used because it was not necessary to the point, which was FTA agreed that highway congestion would not be relieved by rail in its record of decision, but in its statement on Tuesday appears to have reversed that view. We are unaware of any change in the technical documentation that would have justified such a change.

The complete quotation was "Many commenters [on the Draft EIS] reiterated their concern that the Project will not relieve highway congestion in Honolulu. FTA agrees, but the purpose of the project is to provide an alternative to the use of congested highways for many travelers.” The "provide an alternative" clause was omitted because it was unrelated to the apparent change in position on traffic congestion by FTA.

"FTA agrees." in the article above, has been changed to "FTA agrees..."