Cal High-Speed Rail Authority Hosts Official Groundbreaking Ceremony January 6, 2015

FRESNO Cal High-Speed Rail Authority yesterday and Governor Brown joined hundreds of supporters broke t ground on the nation’s first high-speed rail system. In addition to the support of federal, state and local dignitaries, there was strong backing from Central Valley and California-based construction crews, small businesses, and local students who were eager to highlight how high-speed rail is positively affecting California today and will continue to into the future. This construction faze is set for the next five years in the Central Valley. There was a tour of nearby construction activity, which is being done by local and statewide businesses. They also note in their press release finalization of project designs, ongoing right-of-way purchases, and workforce training. This will be a 29 mile stretch of land from Ave 17 in Madera County to East American Ave in Fresno County. The construction will include 12 grade separations, two viaducts, a tunnel, and a bridge over the San Joaquin River. It will be undertaken by California-based Tutor Perini Zachry/Parsons (TPZP) who will be designing and building this first phase of the project. Many at the ceremony were talking about the electric train taking cars off the road and renewable energy, and it potential low cost of $90 from SF to LA in the time it takes a plane to do the same. It will take some time to complete the SF to LA leg for sure. It will likely cost more than $90 once it is accomplished if it is ever accomplished. Authorities say they need to speed up the eminent domain process, since only 100 of the 500 land parcels needed for the rails and stations have been purchased. Californians approved a nearly $10 billion bond for the train in 2008, and in 2012 the Obama administration dedicated $3.3 billion in stimulus funds. Part of the greenhouse gas fees to be collected under the state's cap-and-trade program also will go to the train. There is a lot of capital both political and economic invested in this plan. We will keep you abreast of its progress.

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.