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Politics

Cities Spin Wheels for High-Speed Rail Funds

March 13, 2011 - 7:00pm

Florida communities are eyeing a "competitive" grant program that could keep $2.4 billion in high-speed rail funds coming to Florida.

Prodded by Sen. Bill Nelson, D-Fla., the U.S. Department of Transportation is leaving the door open to local entities that want to bid for the stimulus money rejected by Gov. Rick Scott.

Eligible applicants are states, groups of states, Amtrak or other government agencies that are authorized to "provide intercity or high-speed rail service on behalf of states or a group of states," according to DOT documents.

The DOT issued its grant notice at 5 p.m. last Friday. As of Monday, Nelson spokesman Bryan Gulley said he did not know of any applications being submitted.

The deadline for submission is April 4.

Any bid from Florida will face an uphill climb, fiscally and politically.

"The grant program requires recipients of grants -- read that as 'taxpayers' -- to provide financial support to intercity and high-speed rail passenger rail programs in the event that cost and ridership projections are optimistic," said Wendell Cox, a national transportation expert.

Adding to the potential long-term burden, the DOT rules stipulate that any grant recipient would be required to repay part or all of the federal money if a sufficient level of service is not maintained for a period of 20 years

Scott cited overly optimistic ridership and revenue projections as grounds for rejecting the federal funding last month. He estimated that Florida's taxpayers could be on the hook for $3 billion in uncovered operational costs down the line.

As the state's chief executive, the governor has the ultimate say over state-owned right of way -- and 90 percent of the proposed Tampa-Orlando high-speed line crosses state-held property.

A person close to the cities involved said that if the right-of-way issue cannot be resolved with the state, any effort to pursue funding would collapse.

Having defended his position at the state Supreme Court, Scott has said repeatedly he has no intention of budging. And it is far from clear that any local or regional consortium could surmount the multiple financial and legal hurdles that stand in the way.

Meantime, California and a handful of Northeast states are maneuvering for the money.

Sharon Calvert, head of the Hillsborough County group, No Tax for Tracks, said she was skeptical that a local authority could fulfill the basic requirements of the grant.

"The guidance says a 'state-created agency,'" she observed.

Still, Orlando Mayor Buddy Dyer reportedly was among the local leaders actively working on a bid for Florida.

Tampa and Lakeland, home of high-speed rail advocate Sen. Paula Dockery, are also involved in the effort, as are the two regional business groups -- the Tampa Bay Partnership and the Central Florida Partnership

A spokesman for the Central Florida Partnership referred Sunshine State News' inquiries to Dyer, who was unavailable.

Nelson, in a statement on Friday, said he was optimistic.

"[Transportation] Secretary [Ray] LaHood said its possible for a Florida transit group to apply.That means hope is alive for thousands of good-paying jobs and a modernized transportation system, he said.

But Nelson did not address the state's lock on the corridor's right of way -- which remains the ultimate deal killer.

Instead, Nelson cited a study released last week, which projected that the Tampa-Orlando line "would in fact make money."

The study, conducted by independent contractors for the Florida Department of Transportation, determined that in its first year, the 82-mile line would have a $10.2 million operating surplus. After 10 years, it would have a $28.6 million operating surplus, the study said.

A recent poll showed 60 percent of Hillsborough County residents surveyed favored the high-speed rail project. But that county's voters last year rejected a tax increase to partially fund a light-rail system there.

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Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.

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