If you build it they will come.
Well, paying legally required “prevailing wage” to union workers, for one thing. This adds from 33-50% to the straight labor costs.
But there’s a more insidious cost to reckon with. And that’s the often overlooked administration costs tacked on to construction projects by the City Engineering Department. By gouging these projects with inflated bureaucratic costs, the Engineering Department can pad its own budget without leaning on the General Fund. The monies for capital projects comes from CDBG funds, Redevelopment tax increment, Gas Tax revenue – a whole crazy Byzantine funding network that fortuitously disconnects the payer from the beneficiary.
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