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The City and
The report calls the current Project cost estimate reasonable and accurate and also says the Project will likely be completed in 2019.
“We are pleased that we continue to receive high marks from experts and consultants hired by FTA to review the financial aspect of our project. First, Booz, Allen Hamilton last year, and now Jacobs Engineering this year are reporting extremely favorable results,” stated Mayor Hannemann.
“In the interest of openness and in keeping the public informed about the rail transit project, I am pleased to share this most favorable report,” said Mayor Mufi Hannemann. “This FTA report shows that we are taking our responsibility for the rail transit project seriously and professionally.”
Hannemann pointed out that the Draft EIS cost estimate for the Project is $5.4 billion. The City’s current budget had lowered that figure to $5.172 billion. The Jacobs report concludes the budget should be $5.288 billion.
“The report has the cost at $143 million less than our DEIS projection, and only 2% higher than our current projection. For a project of this scope and magnitude, we are pleased that the figures are certainly very close,” Hannemann said.
Hannemann also pointed out that the report includes a total contingency of $1.2 billion dollars, nearly a third of the project budget.
Hannemann noted that the Project has worked closely with the FTA from the start of the Project and that support in
Rogoff has already met with the Mayor once in
Hannemann added that the Valley Metro in
Hannemann pointed out that once construction begins, it will create about 10,000 jobs, according to the project’s Draft Environmental Impact Statement. He said that economic benefits of rail transit construction are as critical in this recession as rail’s benefits to traffic and mobility.
“Right now, the construction industry is flat, at best. While most of the jobs created will be in the construction industry, it is important to note that every job created means more money flowing through the local economy.
A construction worker’s paycheck will be spent on food, retail, housing, and clothing. With this project, we can help reverse this negative economic trend and at the same time reduce traffic congestion in the long-term.”