Storm costs could delay Midstate rail

Gulf work may divert Music City Star's federal funds

By YVETTE CRAIG, Staff Writer for Tennessean.com
September 27, 2005

The Music City Star, the region's first commuter rail system, could be derailed even before it hits the track if a $6.2 million federal grant fails to materialize.

Local transit officials fear the price tag for cleaning up and rebuilding the hurricane-ravaged Gulf Coast, with estimates ranging past $200 billion, could cause Congress to severely curtail discretionary spending.

A backup plan for a temporary bank loan for the rail line has yet to come through.

Regional Transportation Authority officials said they have no choice but to press ahead. Builders are breaking ground this week on a new train station, despite the funding perils.

"We aren't wasting money," said William Farquhar, Music City Star commuter rail director. "We're moving ahead with the full expectation that we're going to get the loan and we're going to get the appropriation."

Current plans call for the eastern corridor, with service between Nashville and Lebanon, to begin operation in early January. At worst, transit officials said, a delay in the funding would push back the start date.

It wouldn't be the first time the project has been delayed for financial or political reasons.

The commuter rail project, which planners hope will attract 1,500 daily riders, does have detractors and skeptics.

"I think commuter rail is a good thing but I'm skeptical that's a route that has enough potential traffic and enough potential trains," Gov. Phil Bredesen said recently. "But, I could be wrong. When asked by the mayor of Nashville and local government to play a role, we did. We're doing exactly what we were asked to do."

The 32-mile rail line between Nashville and Lebanon, with its no-frills design that relies on refurbished equipment, existing track, and financial backing from neighboring communities, will cost just under $40 million to build, the Regional Transportation Authority said.

The goal is to create a network of transit corridors that will link growing residential communities around Middle Tennessee with Nashville. The Nashville-to-Lebanon line is the first of seven planned for the regional system.

It is being funded 80% through federal dollars, 10% by the state and 10% by the local governments involved. It will cost $3 million to operate annually, the RTA said.

The final $6.2 million in funding had been awaiting congressional approval before hurricanes Katrina and Rita slammed ashore. The federal government has approved $61 billion in unexpected spending to handle the emergencies.

Observers expect that many billions more will be needed once Gulf Coast reconstruction begins in earnest.

State Sen. Mark Norris, R-Colliersville, who chairs the Senate Transportation Committee, said he is watching closely to see where Congress will cut spending as it looks for ways to raise the billions needed for hurricane recovery.

He was planning to meet with Tennessee Department of Transportation officials last night to discuss the future of state projects awaiting transportation money.

"The commuter rail project has been on somewhat of a fast track and has gotten a lot of support from congressional members from Middle Tennessee," Norris said. "There are hundreds of billions of dollars worth of projects nationwide that could be targeted … but it's too soon to say that that $6.2 million might be sacrificed."

U.S. Rep. Bart Gordon, D-Murfreesboro, said he remains optimistic that the money will come through. Tens of millions of dollars in federal funding have been spent on the Music City Star, and a majority of the project has been completed. It would be unwise to halt it now, he said.

"It's vitally important to the Middle Tennessee area that we do get mass transit on all of our major corridors," Gordon said. "There simply cannot be any more lanes added to the interstate. We're simply going to choke under all the development going on."

In June, the transportation authority reached out to banks for a bridge loan — a short-term loan that will allow it to wrap up the project — until the federal money comes.

Likening it to the struggles of obtaining a home loan, Farquhar said: "They (banking institution) continue to call us about every week or so and give us encouraging information. But they haven't completely closed the loop, yet."

Earlier this month, Farquhar and other local transportation officials went to Washington, D.C., to show off the progress made on the project, which they've lauded as the most cost-effective commuter rail line ever built in the U.S.

"I know we've got a situation where funding is critical," Farquar said. "Will I guarantee it will happen? No. But I can say that I'm 90% convinced it's going to happen in a timely manner."