Moving into the fast lane
New York state kicks into the federal system more than its fair share of taxes and other fees.
And some of its counties even more so. Westchester, in particular, often seems to foot an unfair portion of the unfunded obligations bill, with its property taxes the highest in the nation.
So we were encouraged to see the state turn the tables and reach for a slice of the federal pie.
Gov. Andrew Cuomo announced last week that the Tappan Zee Bridge had been selected by President Obama as one of 14 infrastructure projects nationwide to be fast-tracked through the federal permitting and environmental review processes.
In other words, the approvals process could be expedited to allow construction of a new bridge at an estimated cost of $5.2 billion.
Federal Highway Administration spokeswoman Nancy Singer told reporter Pat Gallagher state officials hope to begin the bidding process for construction by August 2012.
It”™s about time New York got serious about tapping Washington for assistance with the Tappan Zee Bridge.
The 3-mile span connecting Westchester and Rockland counties is critical to the region”™s economic viability. And the thousands of jobs the project is expected to create are sorely needed.
We”™ve long urged for federal assistance on this project following years of countless studies and recommendations for a new bridge ”“ and the significant financial expenditures for quick fixes to the aging span.
Still, questions remain. This plan does not include a mass-transit component, which some observers are calling shortsighted. And financial details, as of this writing, were sketchy.
In a story this week, Gallagher writes, “New York state has indicated that a large chunk of financing for the bridge would come from issuing bonds secured by toll revenues. It is estimated that toll revenue will generate $3 billion in borrowing capacity with additional funds for the project coming from labor pension funds and other sources.”
Another published report said $2.2 million would be coming from the federal government and pension funds. The newspaper later changed that number in an online report to $2.2 billion.
Attempts by the Business Journal to clarify that were unsuccessful at press time.
Still, members of the business community were pleased with word that Washington was stepping in.
Marsha Gordon, president and CEO of The Business Council of Westchester, called the announcement “welcome news” for the county, state and the Northeast region.
“The Business Council of Westchester has been the most vocal business advocate for this project, which will generate significant opportunity for job creation and economic growth.”
The construction industry had cause for applause as well.
“Governor Cuomo is championing the interest of every New Yorker in his aggressive appeal to President Obama and his administration that replacing the Tappan Zee Bridge is in the vital interest of the entire nation,” said Ross J. Pepe, president of the Construction Industry Council of Westchester & Hudson Valley Inc.
“We have the contractors, we have the engineering community, we have highly skilled labor and we have the suppliers standing ready to build the new bridge.”
Not everyone was ready to pop the champagne, however.
“Are we shortchanging our future?” said Bill Mooney, president of the Westchester County Association, when asked to respond to the news.
Mooney said that while the business group was “encouraged” by Cuomo”™s announcement, “We are concerned that the current plan is not holistic enough nor is there an appropriate sense of urgency.”
Mooney noted the project, as presented, doesn”™t include funding for a mass-transit component, which he said has been an integral part of the studies over the last two decades.
“We recognize that the cost of the project increases dramatically once the mass-transit piece is added, however we strongly recommend that private- sector funding be part of the equation as it is elsewhere in the United States and other countries. I am encouraged to hear talk of partly funding the project through public-sector pension plans. Combining those resources with private equity, a model we have been advocating for since 2007, will avoid asking the already strapped taxpayers to foot the bill.”
As it stands now, a new bridge with a mass-transit component could cost upward of $16 billion (in 2011 dollars). In terms of funding, we agree a public-private partnership is an idea worth pursuing. Taxpayers should not be expected to shoulder the burden alone.
A new bridge will be an enormous financial undertaking, but one we believe will be well worth it.
The structure is vital to the region”™s commerce and economic development, not just for the foreseeable future, but for generations down the road.
Now that the state has the president”™s imprimatur to get into the fast lane in terms of building a new bridge, we urge the governor to get a financial commitment from Washington to help fund it.