The Price of a Subway
Tacoma officials set strict financial terms for a developer hoping to build a subway franchise.
City Attorney Stiles has drawn up the Gillies subway franchise, but Gillies will not be allowed to attempt to promote the scheme under the franchise unless he puts up $1,000 forfeit to protect the city in case he fails to get the proposition launched. It also provides that the company must pay the city one per cent of the gross revenues in case the subway is built. Some councilmen who favor giving Gillies a better chance to launch his plan will object to the provisions that seek to handicap him.
“Gillies will not be allowed to attempt to promote the scheme under the franchise unless he puts up $1,000 forfeit to protect the city.”
Tacoma’s long-standing skepticism regarding private infrastructure developers seeking public franchises is clearly visible here. The debate over how much risk a private developer should bear before breaking ground remains a constant in city planning.
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