Philip Shucet, the new CEO of Hampton Roads Transit, announced Thursday that the Norfolk starter light rail line will cost $338.3 million, a 46% increase over what was originally budgeted. Such a sizeable overage is not normal. According to an earlier article, only four of the 25 light rail projects built since 1997 went over budget – and then only by 6% – 17%.
Councilman Randy Wright, a vocal advocate of the project and Vice Chair of the HRT Board, said:
“For the first time, we know where we are, when we’re going to finish and how we’re going to finish.”
Not so fast. At this point, Shucet is unclear about where the money will come from to pay for $30 million of the project. As I understand it, unless additional Federal and state money can be found, Norfolk will be on the hook for this. Not good for the citizens, especially in light of the forthcoming Virginia budget cuts.
There was letter to the editor in today’s paper, in which the writer mocked Norfolk’s Council. It reads, in part:
EVEN AFTER two years of living in Norfolk, I find it is sometimes hard to listen to the quotes from the City Council without breaking into laughter. They always remind me of Claude Rains in ‘Casablanca’ when he professes shock at finding gambling in the rear of Rick’s Cafe.
Randy Wright says he is ‘shocked’ and feigns ignorance when light rail goes over budget by $100 million, even though he is the project’s biggest advocate, sits on Hampton Roads Transit’s board of directors and has been a councilman for 18 years.
Perhaps the writer is referring to this Daily Press article.
Townes said HRT board chairman Jim Wood, a Virginia Beach city councilman, and Randy Wright, one of the HRT board members and a member of Norfolk City Council, who are now calling for his resignation, were aware of the cost overruns that had hit the project. But they told Townes not to go public with them until they could secure state money to help cover them, he said.
Really? But wait – there’s more.
Townes said that he informed state Secretary of Transportation Pierce Homer about the cost overruns and was concerned that any public discourse on them could adversely affect a vote by the Commonwealth Transportation Board last month that cut money statewide, but provided $20 million to the project.
“I notified those two key board members,” Townes said, referring to Wood and Wright.
“When they knew, their decision was to hold that information.” Townes said that Wright, who he said he had a strong personal and professional relationship with, was trying to fire him out of political motivations. “Randy is an elected official,” Townes said. “The taxpayers of the city of Norfolk would tend to hold him accountable,” he said, referring to cost overruns. In interviews during the past two weeks, several members of the HRT board have referred to Wright and Townes as “almost like brothers,” and were shocked to learn Wright had pushed for Townes’ dismissal.
Townes said that Wright had made several requests for additions to the project that added to the cost.
The Virginian-Pilot has been reporting on the light rail situation almost daily for the past couple of months. Unless I missed it completely, I’ve not seen anything that even suggests that Wood and Wright were informed about the cost overruns or that now-former Secretary of Transportation Pierce Homer was informed. Oh wait – maybe that’s what was being referred to in this article – the same day as the Daily Press one:
He [Townes] added that officials from Norfolk, who requested enhancements to the project that contributed to overruns, “bear as much responsibility as HRT for the status of the project.”
Kind of oblique, don’t you think? As one of the Norfolk taxpayers who may be very well be on the hook for $30 million, I find it appalling that the newspaper did not report this information. If they didn’t want to rely solely on Townes’ assertions, certainly they could have called Horner to verify that portion of it.
Isn’t that what reporters are supposed to do?
Instead, the Pilot has laid it all at the feet of Townes. The letter writer, referred to earlier, said that the blame for Council should lie with the citizens. While I agree that citizens should be more engaged, you cannot hold us completely responsible when the largest newspaper in town doesn’t tell us all that’s going on. Without transparency in reporting – and we know there’s little transparency in government – we only act on the information of which we are made aware.
VIVIAN J. PAIGE | All Politics is Local 
Townes claim about Wood is absolutely false: HRT senior Staff were under orders from Townes specifically not to speak to Wood about the overruns.
In turn, that raises doubts about everything else Townes says….
Somehow I find it preposterous that Wood and Wright were unaware of the situation. All things being equal, what was the consideration for the generous severance package afforded Townes? What were the conditional requirements for a release of claims, if one was tendered? Is is available under a FOIA request or protected in secrecy?
It would seem that a federal investigative agency of the Department of Justice needs to ascertain if federal funds were criminal misused. What correspondence or recorded conversations, if any, exists? Somehow and someway, someone or some bodies are conveying untruths concerning federal funds, and that in itself is an offense. Uncover the rocks and stones, shine the light and let’s see what comes slithering out.
Wally, you are right on, “Uncover the rocks and stones, shine the light and let’s see what comes slithering out.”
Of course Randy Wright knew.
In regards to the fiasco regarding Norfolk’s lightrail system, too much attention has been focused on Townes. More attention needs to be paid to reports that Randy Wright (HRT Vice-Chair of Planning and New Starts) new of the cost overruns yet instructed Mr. Townes not to release this information for fear of losing additional State/Federal Funding. Intentionally misleading State and Federal agencies and failing to disclose known massive cost overuns/project problems represents an alarming mismanagement of State funds. A full investigation of Randy Wrights involvement in this runaway project needs to be conducted by the Department of Rail and Public Transporation.