By Marvin G. Cortner

Editor

County governments throughout Central Florida will now have to begin deciding how to pay for their portions of the SunRail commuter rail system following Gov. Rick Scott’s decision last week to move forward with the project.

Florida Department of Transportation Secretary Ananth Prasad announced the decision Friday morning following a series of public meetings in Central Florida June 28 and a follow-up conference with the governor June 29.

At those meetings and again on Friday, Prasad made clear that moving forward with the $1.28 billion, 61.5-mile commuter line means that the state would not help cover operating costs after the first seven years and that if local governments cannot meet their obligations to fund it, the money would come from state transportation dollars earmarked for projects within that municipality.

Osceola County Commission Chairman Brandon Arrington said he was delighted with the governor’s decision.

“I was not shocked as the project was so endorsed by central Florida and Congressman (John L.) Mica.  As for our capital costs, I expect us to treat it like any other infrastructure project and use whatever option we have available, whether it be general funds or host fees similar to those used to do Poinciana (Boulevard) phase 3, which is around the same cost.”

As for the long term operating and maintenance costs of SunRail, Arrington said the county needs to look at setting up special taxing districts for the newly created Transit Oriented Developments, which are mixed use areas designed to maximize access to various types of transit. This revenue can also be used for other transit options within those developments, Arrington added.

In these development areas, growth is focused around the planned transit investments, such as a commuter rail station, with that investment then becoming a focal point for the community with a mix of uses to live, work and play, all in one location.

Arrington said that regionally, there are talks of trying to find a dedicated funding source for transportation.

“The only real options are gas taxes, a charter county surtax or a rental car surcharge, which needs state approval and has no traction,” Arrington said, adding that the county now “has a great opportunity with our Tupperware and Poinciana stations to create some great communities and to help to further revitalize downtown Kissimmee.”

Commissioner Fred Hawkins Jr., who has not supported SunRail because of not having a dedicated source of funding in place either locally or regionally to build and operate it, said he also was not surprised by the governor’s action.

“Now that a decision has been made, I must work with the rest of the commission to see how this will be paid for while protecting the taxpayers of Osceola County, which has always been my number one goal,” he said.

“As for how it will be funded, three of my fellow commissioners were very confident in this project so I hope they have thought this through and are going to bring ideas other than tax increases to the table.  Like all the taxpayers in the county, I am waiting to hear what thoughts and ideas they have.

In a prepared statement, U.S. Rep. John L. Mica, chairman of the House Transportation Committee and a Republican from Winter Park, said the decision on SunRail is as significant for the state as when Henry Flagler brought the railroad to Florida and when President Dwight D. Eisenhower initiated the Interstate.

“This transportation alternative offers the only real cost-effective, near-term solution for our region’s highway congestion, and will have tremendous benefits for employment,” Mica said. “Thousands of jobs will be directly created by the construction of SunRail, and even more employment will be generated by responsible corridor development.”

In his announcement about the governor’s support of SunRail, Secretary Prasad said all the partners in the project – including private interests – during his public meetings in Central Florida told him they still support commuter rail system, and they clearly understand that the local governments will participate in covering any cost overruns.

“I spent most of my time listening. I listened to the elected officials, but, most importantly, I listened to the public comments,” Prasad said. “I listened to all sides of this debate, and I must tell you that the overwhelming majority of opinion expressed in each of the meetings I attended was in favor of moving forward.”

According to information provided by SunRail, the $615 million in capital costs to build phase 1 and phase 2 of the project would be funded 50 percent through the federal government, 25 percent through the Florida Department of Transportation and 25 percent divided up between the five local partners (Volusia County at $26.5 million; Seminole County at $46.2 million; Orange County at $40.4 million; Osceola County at $27.1 million; and the city of Orlando at $13.7 million). In addition, Osceola County’s share of operating and maintenance costs for year 8 through 18 would be $14.42 million.

The 31-mile first phase of SunRail would serve 12 stations, linking DeBary to Orlando. Phase II would serve five additional stations and would stretch from DeLand to DeBary and from Sand Lake Road to the Poinciana. Osceola County stations would be at Osceola Parkway (on the Tupperware property), in downtown Kissimmee and at the Poinciana Industrial Park (on the southwest corner of the intersection of Poinciana Boulevard and Old Tamp Highway).

More on SunRail project

The SunRail agreement was approved by a previous legislature. At the conclusion of the 2009 Special Session on the SunRail project, the Florida House voted 84 to 25 to create the current framework of the project. In the Florida Senate, the vote was 27 to 10. SunRail  also was supported by former Governors Jeb Bush and Charlie Crist.

Money from both the federal government and the state of Florida has already been appropriated for the project.

In exchange for the purchase of rail track, CSX has committed to investments in railways all over the state. These investments will support other infrastructure, such as helping make Florida’s ports more accessible for trade.

Walt Disney World has committed to partially subsidize commuter bus transit service throughout Central Florida to its property.

Florida Hospital has committed to pay $3.5 million for its own rail stop in Orlando and to market and subsidize ridership for all its 17,000 employees.

And Tupperware Brands Corporation has committed to donate 10 acres of land (most of it in Osceola County) to serve as the site for the proposed Osceola Parkway station and to establish a shuttle service to its corporate headquarters along Orange Blossom Trail to encourage ridership.