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December 5th, 2013 By German Lopez | News | Posted In: News, City Council, Streetcar

Only 11 Streetcar Workers to Lose Jobs

City administration previously warned council members of 200 layoffs

news1_streetcar_jf2Photo: Jesse Fox

Only 11 streetcar workers are expected to lose their jobs following a City Council-approved pause of the $132.8 million project, according to Streetcar Project Executive John Deatrick.

The final number is far below the original estimate of 200 layoffs that city officials gave on Monday when council members asked about the effects of halting the streetcar project.

The remaining workers will be moved by contractors to other jobs or kept under ongoing utility work, which utility companies agreed to continue despite no longer qualifying for reimbursements from the city, according to Deatrick.

Deatrick says it’s “a wild guess” whether the amount of layoffs will grow in the future.

“Our contractors have real heart,” he says.

The number is good financial news for the city.

If 200 workers were laid off, Deatrick previously estimated that unemployment benefits would cost the city $419,000 for the month.

Still, the city administration on Wednesday warned that it could cost $2.56-$3.56 million to pause ongoing construction for the month. In comparison, Deatrick estimates that continuing construction at current speeds would cost $3 million.

A majority of council members dismissed the pause cost estimates as exaggerated when they voted to halt the project on Wednesday.

With the streetcar project on hold, council now plans to review how much it would cost to complete or cancel the project.

Deatrick on Nov. 21 warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grant money that would be lost if the project were terminated.

But a majority of council members voiced distrust toward the estimates and called for an independent review.

Depending on the outcome of the cost analysis, Vice Mayor David Mann and Councilman Kevin Flynn say they could change their minds on canceling the streetcar project. Only one of them needs to do so to give streetcar supporters a majority on council.

 
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