DRIC bridge details start to emerge - Windsor, Ontario Real Estate Investments, Income Property & Property Management
June 15, 2012
Recent Posts From This Author
- DRIC bridge details start to emergePosted on Jun 15, 2012
- Prime Minister Harper confirms visit to Windsor to unveil plans for new bridgePosted on Jun 14, 2012
- Moroun’s political allies work to stop DRIC bridgePosted on Jun 13, 2012
- DRIC bridge announcement likely on FridayPosted on Jun 12, 2012
A historic announcement Friday in Windsor by Prime Minister Stephen Harper and Michigan Gov. Rick Snyder on building the $1-billion government-backed bridge is a huge step forward in a lengthy process that still has many steps to go.
Details were starting to emerge this morning from the agreement to be unveiled today shortly after noon at the Hilton Hotel.
Canada is essentially taking on all the risk and rewards, while the highlight from Michigan’s perspective is no risk for its taxpayers in the bridge deal – thanks to Canada’s offer to pay up to $550 million towards the state’s share of the project.
Another key feature in the deal for the economically struggling state is how the U.S. federal government is allowing the Canadian funds to count under a matching grant program for new roads and infrastructure that will provide around $2 billion in grants.
“This really is a no-brainer,” Lt. Gov. Brian Calley told the Detroit Free Press.
Canada is to be repaid through bridge tolls for the loan and will carry all the financial risk if there is not enough revenue to cover those costs. A private contractor will be retained to finance, build and manage the bridge and Canada will owe payments under the planned public-private partnership.
There will be the creation of a new six-member bridge authority with equal representation from Canada and the U.S. All tolls will be collected on the Canadian side.
Officials from the bridge company issue their response Friday morning, just hours before the announcement – much of it focused on criticism of Snyder.
Bridge owner Matty Moroun is in the midst of attempting to gather enough signatures on a petition before July 7 in order to get the bridge issue on the ballot for the state election in November. He wants voter approval required for any new border crossing in Michigan.
“Whether a government bridge will ever be built, it is the people who should decide.” said bridge spokesman Mickey Blashfield. “Beyond a press event, the governor needs to make his best case for his government bridge.
“The Michigan legislature, after reviewing all the facts, was not convinced. Now hardworking taxpayers will vote in November whether they trust him. We believe the people want and deserve to have a vote about such an important issue.”
Calley countered Moroun’s opposition as “a very blatant attempt to protect a monopoly situation” in comments to the Free Press.
A study released Thursday in Detroit showed the project will create about 8,000 direct and spinoff jobs during construction which is expected to take between three to four years to complete.
Also in the contract is a clause which indicates that after 40 to 50 years once the $550 million loan money is repaid, the tolls will then be split evenly between Canada and Michigan.
The U.S. government will pay about $264 million toward plaza costs in Detroit, while the U.S. secretary of state must sign off on the agreement before construction can begin.
The new bridge will be located on the Windsor side in the riding of local MP Brian Masse (NDP – Windsor West) who has long been a supporter of the project and critical of Moroun.
“This is the culmination of relentless efforts by citizens and organizations on both sides of the border who spent years fighting for this bridge despite seemingly insurmountable odds,” said Masse in a statement on Friday morning.
“This bridge is essential infrastructure that asserts our economic sovereignty. By standing together, Windsorites and Essex County citizens have ended a profiteering monopoly and made a crucial investment for our long-term prosperity.”
More to come…
For All Your Real Estate Investment, Income Property and Property Management Needs in Windsor, Ontario
RE/MAX Preferred Realty Ltd., Brokerage
Our investment team in Windsor, Ontario works diligently to acquire and provide you with up-to-date information.
We hope that you find value in this free information we work hard to provide and gain confidence in our level of service. We appreciate and value your business and hope to assist you with your next purchase or sale!
Click HERE for more Windsor Ontario News