Honor contracts

By The Gazette Editorial Board

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Gov. Terry Branstad says his executive order banning the use of project labor agreements on public works projects will be enforced for Cedar Rapids' $75 million convention complex project.

Mayor Ron Corbett disagrees with that “definition” of the order, issued on the new governor's first day, Jan. 14, and wiping out his predecessor's pro-PLA order of Feb. 3, 2010.

The mayor believes the governor's action affects any PLA agreements made after the order's issue - not one already negotiated and signed. Such as the convention complex, for which the council approved a PLA in December.

Putting aside disputes about the pros and cons of PLAs, we agree with the mayor. Why should the state undo everything the city has already put in motion? Aren't contracts supposed to be honored if they're legal at the time they're made? What's the legal risk if the city's deals are nullified? Would that delay the project, or raise costs?

The Iowa Supreme Court ruled a few years ago that PLAs are legal on public projects. That seems to put the governor's executive order at odds with the judicial branch.

Another deal already in place is an OK on the city's PLA from the U.S. Economic Development Association, which is providing a $35 million grant toward the project. And the city long ago was awarded a state I-JOBS grant of $15 million, half of which has already been spent toward initial site preparation. Will the governor ask for the money back and cancel the rest?

Governor, reconsider your definition.

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