The Train, the train is Coming to the Central Valley by Fall 2013

The state has secured $3.9 billion in federal money, and California taxpayers have approved bonds for the rest. Construction is actually set to start by late next year on the first leg between Bakersfield and Fresno at an estimated cost of $5.8 billion. If construction begins then the project will likely be the largest in the Union with California and the Federal government on the hook for billions of dollars in future costs.

It is not likely to go smoothly though. The estimated costs have essentially doubled with right of way issues as the train will move into urban areas. Also the state and federal governments are currently running deficits and the private sector is not all in, so finding future funds could get murky. It also looks like California voters are a little flakey. Recent polls showing voters would not have voted for the train if the vote was today.

Democrats have indicated that clogged highways are smog choking their districts, so a train system is necessary. Republicans indicate that Amtrak is not in full use, so a high priced fast train is not a solution. A big problem maybe in Palo Alto, Ca. where democrats have riled against new rail lines passing through neighborhoods.

There is indication that at least another $20 billion will be needed, so the alternative to the lack of funds will be that if the speed train fails then Amtrak will run along the new tracks. The initial stage is the Fresno to Bakersfield route and the next stage would link the San Joaquin Valley to San Jose or Bakersfield to San Fernando (Los Angeles County

The State will need funds past the Fresno to Bakersfield plan though, but despite the backlash the Cal-High-Speed Rail Authority is moving forward. They have the initial money and they plan on laying the tracks. The current administration is behind the effort, and the Rail Authority feels private money will be invested once the project has started. If you own land at or near the Fresno to Bakersfield route then you stand to profit. Buy land and wait, and buy land in the path of development still holds true.

Alas More Funds for The Cal High Speed Rail, But Will it Stop in Palmdale?

In 2008 voters approved nearly $10 billion in state bonds to fund the Cal High Speed Rail project under Proposition 1A and now this past month Transportation Secretary Ray LaHood took Florida’s $2 billion and gave it to 15 states and Amtrak. Florida’s new governor and legislator rejected their high speed rail, California gets a new $300 million which will be used to continue laying the groundwork for the nation’s first 220 mph high speed rail system in the state. The initial plan according to federal and Rail officials would be to run along the Central Valley as it would be the least expensive to begin. This is an essential part of the Obama Administrations proposed shovel ready projects. Thus the lion’s share of the $3.5 billion provided by the Obama administration must be spent on the rail line running between the tiny towns of Borden and Corcoran, Ca. Borden is outside of Merced and Corcoran is next to nowhere and is best known for its prison.
This can be chalked up to California’s continual poor planning as the CalHighSpeedRail Authority indicated earlier that there will be no ridership on the first phase. We believe they guarantee that with starting in sparsely populated Borden and Corcoran. Another issue that bogs the speedy trains is the disagreement with running the train from Bakersfield to Los Angeles via Lancaster and Palmdale Ca. Many including the LA Times writers want the direct route via Hwy 5 through the grapevine. They indicate it will save $1billion, and 30 miles. Yet, isn’t the trains objective to carry passengers? Bypassing Palmdale would eliminate potentially 700 thousand potential riders in Palmdale, Lancaster and Victorville. If the train is not potentially a commuter train, then why build it in urban areas like San Diego, LA, and San Jose, or it is only a train to compete with SouthWest airlines?
The final southern route into LA County will be debated, but there looks to be plenty of new opportunities along Hwy 99 as the White House and Governor Brown administration will not stand in the way of this moving train. Will it be a sign of more government waste by Democratic administrations, or a future jewel of the West U.S. Most land along Hwy 99 is farmland as we have been saying all along the farmers are the best long term land bankers over time. Check out our land along the future potential route in Lancaster Ca. via www.vacantlanddeals.com so you can be a land banker too.

California High Speed Rail to Break Ground in Central Valley in 2011 and Eventually Tracking a Path to Palmdale, Ca. But, Is It a Train to Nowhere?

The Federal Government seems to be forcing the hand of The California High Speed Rail Authority. Recently, the Feds provided $715 million toward the rail system. The CalHighSpeed Rail Authority press release this week stated that the Federal Railroad Administration forwarded their requirement that the full amount of the $4.3 billion be allocated to infrastructure investment for the proposed system in California’s Central Valley. These funds have to be directed to the rail lines from Merced to Fresno or Fresno to Bakersfield. These funds were part of the American Recovery and Reinvestment Act, and California has received more funds of this type then any other State.

We wonder if this is choreographed or a knee jerk political reaction by the Obama Administration to reward California for staying in the Democrats Camp. GOP elected Rep. Mica trashed the idea of having the federal government continuing to fund a Tampa to Orlando high speed rail line, as he spoke to the Associated Press this week “I am a strong advocate of high-speed rail, but it has to be where it makes sense,” Mica said. “The administration squandered the money, giving it to dozens and dozens of projects that were marginal at best to spend on slow-speed trains to nowhere. The Republicans and the Obama Administration differ in how to pay for fast trains as a Republican Congress wants the rail transportation system to be self supporting, but the Obama Administration expects states like Ohio and Wisconsin to absorb operating losses for their rail systems. California lacks the funds to absorb losses. The newly elected Governor of Ohio John Kasich said via news reports that “the train is dead” He was referring to the Ohio slow passenger train from Cincinnati, Columbus and Cleveland. Also, The Wisconsin Republican Governor Elect Scott Walker promised to cancel the Wisconsin High Speed rail (Milwaukee to Madison). BizTimes Daily reported this week that the Wisconsin Dept. of Transportation told contractors to halt work on the $810 million project.

The California High-Speed Rail Authority CEO Roelof van Ark said in their press release
“The Central Valley is indeed key to creating the core of a true high-speed rail system in California, as that is where our trains will travel truly high speeds of 220 miles per hour,” van Ark said. “But no matter where we start building, the goal remains the same: a statewide high-speed rail system up and running in 2020 connecting the Bay Area with the metropolitan area of Los Angeles and Anaheim, that creates thousands of jobs, improves air quality, and provides us all with a cheaper, faster and more convenient way to travel.”

The Mercury News indicated that the agency says it could build just half of the 50-mile track from San Francisco to San Jose section with the funds available while they can build the entire 60 miles Merced to Fresno corridor or 113-mile Fresno to Bakersfield span. In Southern California, the authority thinks it could build two thirds of the 30 mile stretch. "We have to build a system that is going to be operable as soon as possible and that means building many miles of track that are connected to each other," van Ark said.
But a Central Valley segment will have no operational significance van Ark said major population centers need to be linked and the agency will not bother starting service there.
"We will not have trains when we build this first segment," he said. CalHighSpeedRail Authority release also indicated that they will discuss target constructions locations and other business in their next meeting in December.

We have tempered our celebration since at first glance this would be a track to nowhere, with only rails, bridges, with empty stations, and no train or passengers. This is not a proposal that a Republican influenced Congress would approve as it will not pay for itself. Would Governor Elect Brown call this living within our means? Would the Chinese Banks cover the additional funds needed?

A possible land investment opportunity could be buying land ahead of the rails especially near Fresno, Ca. as that city is certain to be on the trains map. We will keep track of this news and events as it progresses.