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Texas Central Project


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3 minutes ago, CaptainJilliams said:

Not sure if this was posted or not but...

 

Texas Appellate Court Allows Eminent Domain for High-Speed Rail Project

 

https://thetexan.news/texas-appellate-court-allows-eminent-domain-for-high-speed-rail-project/

 

Just out of principal by what is already in the books for established rail companies, and the rights that oil companies get, this should be granted to TCR as well. I don't like it when new companies get blocked from the same powers as the big boys simply because they don't have an established lobby to push there weight around.

 

While it seems they are going to avoid ED when possible its nice to know they will have it in there back pocket as an emergency measure.

 

I've always thought it was wrong that this power is allowed for some, but oh because we don't like this new upstart company they don't get to have it. If these people don't like ED then nobody should be allowed to have it.

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Would have loved to have been a fly on the wall during the actual proceedings. The original argument against TCR was that under the current statutes it couldn't be classified as a railroad because it wasn't a “interurban electric railway”. Imagine trying to explain that to a judge. I would imagine it went like this.

 

Plaintiff: We are in opposition because we do not believe TCR qualifies as an "interurban electric railway".

Judge: Is it the case that the Shinkansen is a type of train that is powered by electricity?

Plaintiff: Yes your honor the Shinkansen is a type of train that is powered by electricity.

Judge: This train is planned to go from Houston to Dallas, correct? It would stand to reason to say this is interurban by definition right?

Plaintiff: Yes the train is planned to go from Houston to Dallas. Yes by definition that would be interurban your honor.

Judge: Does the Shinkansen sit on rails and use those rails to travel to and from its destination?

Plaintiff: Yes your honor the Shinkansen does indeed sit on rails and use those rails to travel to and from its destination.

Judge: Let me get this straight then. It uses electricity. It sits on rails, and travels on them. It also travels between urban destinations which means its interurban by definition. This stands to reason that TCR would qualify under the current statutes as an "interurban electric railway" correct?

Plaintiff: Yes your honor.

Judge: Then why are you claiming that this isn't an "interurban electric railway"?

Plaintiff: Reasons...

Judge: Why are you claiming that this isn't an "interurban electric railway"?

Plaintiff: Feelings...

Judge: Case dismissed.

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Looking at the footprint segments. Its interesting how the route which will cause the least disturbance will be the route that doesn't go along the highway. It would not only be more efficient to take Segment 4 instead of Segment 3C, but it will also be the least destructive. Will definitely look at the full document later. Lots to look into. I'm not surprised now why this process takes so long.

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37 minutes ago, BigFootsSocks said:

https://www.bizjournals.com/dallas/news/2020/06/05/texas-central-stimulus-money.html
 

Does anyone have access to biz journal and want to provide a summary?

 

Texas Central, like many other companies, is dealing with economic hardships brought on by the  COVID-19 pandemic.



The company, which is developing a multibillion-dollar high-speed rail line that could connect Dallas and Houston via a 90-minute train ride, laid off 28 employees in March and watched as the pandemic roiled global financial markets it hoped to tap for financing.



Texas Central is evaluating other means of financing besides private equity, according to an April 8 letter sent from Drayton McLane, Jr. — Texas Central chairman and an investor in the project — to Texas State Sen. Robert Nichols. The Dallas Business Journal obtained a copy of the letter, which can be seen here.



McLane gave an update on the project to Nichols, saying it's "turned into a $30B project and we have certainly hit a snag with all the difficulties of the Corona Virus."



"We feel that between Japanese government funding and the monies we hope to receive from President Trump's infrastructure stimulus through the Department of Transportation, along with private equity that the project still has a great opportunity, is viable and can be construction ready this year," McLane added.



In the early days of the project, Texas Central said its attempt at building high-speed rail in Texas would differ from previous attempts because the project would be privately financed.



However, the company has also said it could explore government loan vehicles, such as Railroad Rehabilitation & Improvement Financing and Transportation Infrastructure Finance and Innovation Act.



The uncertainty in global markets also has Texas Central thinking about how much appetite there will be for private financing.



"We don't know whether that's going to be there or not," said Carlos Aguilar, CEO of Texas Central, about attracting private equity interest. "It depends on the markets themselves to determine if and how much of the money can come from private equity. And that's why it would require some stimulus money, but we don't know yet."



Aguilar said any funds from the U.S. government that Texas Central would seek would be in the form of loans. He said the company did not apply for funding through the CARES Act passed by the U.S. government. A Federal Railroad Administration spokesperson confirmed Texas Central did not receive funding through the CARES Act.



How much the Texas Central project will cost has been a hotly contested issue.



Currently on Texas Central's website, it says the train system will cost "more than $12 billion to construct." Regarding the $30 billion figure McLane mentioned, Aguilar said the project construction cost will be around $20 billion, and environmental requirements are an example of something that could add costs.



Aguilar called the $30 billion figure "a conservative estimate of 'all in' numbers."



The project is coming off what Aguilar said was "an amazing month" in May.



Texas Central won a key legal ruling, earning the designation of a railroad by the Thirteenth Court of Appeals. The designation is key for Texas Central, as railroads in Texas have the power of eminent domain — a tool the company could use to acquire the land it needs. Project opponents are appealing the decision to the Texas Supreme Court. So far, Aguilar said the company has purchased about 25 percent of the land it needs, which represents about 360 parcels.

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$30 billion sounds insane. Here's to hoping the market quickly recovers... I've been wanting to see a project like this all my life and to see it fall apart this quickly is saddening. I don't understand why they are making these articles though, making this public. This is ammo for the people against this project... what good comes at sharing this?

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12 hours ago, gmac said:

And so it begins... private tentacles reaching into the public trough.

 

They're looking for loans, not handouts. Nobody could have predicted the damage the Coronavirus has wrought on society economically. Unfortunately, massive infrastructure projects like this are going to get squeezed and that's unavoidable. 

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Even if they're looking for a handout, whats the issue? I feel like people forget this project is for US, TEXANS. The same people that support that i45 project, oppose this one lol. This project displaces A LOT less people, provides an alternative means of transpiration we don't have, AND we're not even paying for it. I personally want both 🤷‍♂️. If you're opposed to this project and not the i45 project, maybe stop being greedy and appreciate that not everyone uses transportation the same way as you do?

Edited by Amlaham
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1 hour ago, Amlaham said:

Even if they're looking for a handout, whats the issue? I feel like people forget this project is for US, TEXANS. The same people that support that i45 project, oppose this one lol. This project displaces A LOT less people, provides an alternative means of transpiration we don't have, AND we're not even paying for it. I personally want both 🤷‍♂️. If you're opposed to this project and not the i45 project, maybe stop being greedy and appreciate that not everyone uses transportation the same way as you do?

 

Amen

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I had a lot of hope for this project, but when I saw $30B I knew immediately that this will never get off the ground. I really hoped we would be the first in the Western Hemisphere to get a bullet train, but I cannot imagine that they will get the funding. 

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6 minutes ago, HoustonBoy said:

I had a lot of hope for this project, but when I saw $30B I knew immediately that this will never get off the ground. I really hoped we would be the first in the Western Hemisphere to get a bullet train, but I cannot imagine that they will get the funding. 

 

I'm not shocked. If you are in the construction/architecture industry, then you wouldn't be surprised by jumps in costs either. I don't understand how everyone here was ok with $15Billon, but $30Billon, oh no the sky is falling. This project is fine. My estimate is that they will most likely push back there start day until the fall to wait and see how the markets shack out. The fact of the matter is that infrastructure is actually a solid financial investment in terms of long-term investing. With everyone pulling there money out to wait until things settle that only means that TCR has a better chance of approaching more investors once things get back to normal because more money will be floating around from being pulled out previously. If I had money and someone told me about an investment opportunity of a project that would be built over 5 years, is a fixed asset that will get regular use, and it goes to two major metropolitan areas thats an easy sell regarding financing. The numbers provided by McLane is what he needs to do to properly disclose there finances. It doesn't mean that price won't go down. Everything is being inflated because all supply chains have slowed down making things much more expensive. Once things get going again I'm thinking that number is going to fall back down to around $20Billon. I do agree with what they are saying which is the added infrastructure and land reclamation they will have to do to satisfy the Feds, State, and local authorities was bound to balloon the costs, but that happens. Costs always rise on jobs like this. I don't know a single job that said there prices were lower than what they thought without substantially slashing a budget. Most of the budget they can't slash. If you look at there calculations its pretty bread and butter what is needed to make this thing operation. Its external forces which are making this more expensive. If thats the case they can afford to wait a bit, or roll out construction in longer phases.

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26 minutes ago, Luminare said:

 

I'm not shocked. If you are in the construction/architecture industry, then you wouldn't be surprised by jumps in costs either. I don't understand how everyone here was ok with $15Billon, but $30Billon, oh no the sky is falling. This project is fine. My estimate is that they will most likely push back there start day until the fall to wait and see how the markets shack out. The fact of the matter is that infrastructure is actually a solid financial investment in terms of long-term investing. With everyone pulling there money out to wait until things settle that only means that TCR has a better chance of approaching more investors once things get back to normal because more money will be floating around from being pulled out previously. If I had money and someone told me about an investment opportunity of a project that would be built over 5 years, is a fixed asset that will get regular use, and it goes to two major metropolitan areas thats an easy sell regarding financing. The numbers provided by McLane is what he needs to do to properly disclose there finances. It doesn't mean that price won't go down. Everything is being inflated because all supply chains have slowed down making things much more expensive. Once things get going again I'm thinking that number is going to fall back down to around $20Billon. I do agree with what they are saying which is the added infrastructure and land reclamation they will have to do to satisfy the Feds, State, and local authorities was bound to balloon the costs, but that happens. Costs always rise on jobs like this. I don't know a single job that said there prices were lower than what they thought without substantially slashing a budget. Most of the budget they can't slash. If you look at there calculations its pretty bread and butter what is needed to make this thing operation. Its external forces which are making this more expensive. If thats the case they can afford to wait a bit, or roll out construction in longer phases.

I'm not surprised by the jump in cost, but an increase of $15 billion is not a drop in the bucket. The price is $30 billion now and just one year ago it was half that. It is starting to sound eerily similar to that of the California bullet train, "its going to cost $30 billion, no wait $50 billion, no wait $78 billion," and then all of a sudden it's all but canceled. If I had the type of money to even consider investing in these large scale projects I would absolutely be worried about the fact that a similar proposal had already failed (albeit it had uneven terrain, tunnels, and different political forces) coupled with the fact that this service would be connecting two decentralized metropolitan areas with little to no real public transport. As much as I want Houston to keep building light rail, I am not going to kid myself and believe that it is at all efficient or even comfortable for business travelers, and that includes Dallas's light rail as well. I'm still team Texas Central, but I do not believe that the price will get lower; just the opposite. I am no expert and I really hope that I'll be proven wrong, but I don't have confidence that this will get off the ground. I'd much rather have heavy rail metro service throughout Houston and Dallas that connect to both airports. 

Edited by HoustonBoy
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23 minutes ago, Luminare said:

 

I'm not shocked. If you are in the construction/architecture industry, then you wouldn't be surprised by jumps in costs either. I don't understand how everyone here was ok with $15Billon, but $30Billon, oh no the sky is falling. This project is fine. My estimate is that they will most likely push back there start day until the fall to wait and see how the markets shack out. The fact of the matter is that infrastructure is actually a solid financial investment in terms of long-term investing. With everyone pulling there money out to wait until things settle that only means that TCR has a better chance of approaching more investors once things get back to normal because more money will be floating around from being pulled out previously. If I had money and someone told me about an investment opportunity of a project that would be built over 5 years, is a fixed asset that will get regular use, and it goes to two major metropolitan areas thats an easy sell regarding financing. The numbers provided by McLane is what he needs to do to properly disclose there finances. It doesn't mean that price won't go down. Everything is being inflated because all supply chains have slowed down making things much more expensive. Once things get going again I'm thinking that number is going to fall back down to around $20Billon. I do agree with what they are saying which is the added infrastructure and land reclamation they will have to do to satisfy the Feds, State, and local authorities was bound to balloon the costs, but that happens. Costs always rise on jobs like this. I don't know a single job that said there prices were lower than what they thought without substantially slashing a budget. Most of the budget they can't slash. If you look at there calculations its pretty bread and butter what is needed to make this thing operation. Its external forces which are making this more expensive. If thats the case they can afford to wait a bit, or roll out construction in longer phases.

 

Hmmm... Usually I would but I actually don't share your enthusiasm. Forget the BS politics over whether or not Texas should be the state leader in high speed rail (to me, that's a given and it's exciting for my state to be the first to do this if we can connect two major cities)... so let's just talk about the financial aspect of us.

 

Based on the article, they are making this sound like this is the year that will determine whether they survive or not. They clearly made a decision as a company to go to a news outlet and let people know this project is certainly in trouble unless they get some new investment. That's very troubling to hear.... I'm not sure if they are hoping this news article will somehow help them find new investors. Next is the price tag... it absolutely does matter that this has ballooned into $30 billion from $15 billion seeing how every year this keeps rising. That means you need to keep raising more capital to keep this even going. Now perhaps I just need to reread it, but nothing in that article made me feel comfortable about this project and it clearly sounds like the people within the company are worried too.

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Just now, Triton said:

Hmmm... Usually I would but I actually don't share your enthusiasm. Forget the BS politics over whether or not Texas should be the state leader in high speed rail (to me, that's a given and it's exciting for my state to be the first to do this if we can connect to major cities)... so let's just talk about the financial aspect of us.

 

Based on the article, they are making this sound like this is the year that will determine whether they survive or not. They clearly made a decision as a company to go to a news outlet and let people know this project is certainly in trouble unless they get some new investment. That's very troubling to hear.... I'm not sure if they are hoping this news article will somehow help them find new investors. Next is the price tag... it absolutely does matter that this has ballooned into $30 billion from $15 billion seeing how every year this keeps rising. That means you need to keep raising more capital to keep this even going. Now perhaps I just need to reread it, but nothing in that article made me feel comfortable about this project and it clearly sounds like the people within the company are worried too.

 

From what I read, they are having the same problems as everyone else. That being: a manufactured economic collapse has caused our project to run into some snags. Everything was going pretty smoothly for them until COVID hit. Something that could not be foreseen, and something which is effecting everyone. It also doesn't help that the impact study takes forever. That impact study alone will make costs go up because of its recommendations/requirements. Plus the more time it takes to get something off the ground the more expensive its going to get as fees for everyone that are part of the team is going to rise over the duration they aren't in construction. The utility of that can be saved for another day. The fact of the matter is that it was heading in the right direction, and was doing everything right until an unexpected circumstance threw a wrench into there plans. This current economic situation is both unprecedented, but its also not normal circumstances. Its unfair to judge this project and its viability when most Fortune 500 companies were struggling to stay afloat under the same strain. Its not because the project is bad, or there ideas or bad, but the climate that surrounds them is bad. But remember this climate that surrounds them isn't going to last forever. Yes they are putting out info because it was necessary for them to do so, are you saying that it would have been better for them to not ask and just fold instead? I'm glad they came out asking and were honest about the current situation. That means they believe in there product, and don't want this to fail because of the virus and subsequent manufactured decline that came out of it.

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3 hours ago, Big E said:

 

They're looking for loans, not handouts. Nobody could have predicted the damage the Coronavirus has wrought on society economically. Unfortunately, massive infrastructure projects like this are going to get squeezed and that's unavoidable. 

 

"...monies we hope to receive from President Trump's infrastructure stimulus through the Department of Transportation"

 

that money is not a loan

 

The original proposals for this project touted private money only. They assured folks that no tax money would be used. As expected, that was a lie.

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Yes. How dare they not predict a global pandemic.

 

The linked article specifically mentions loans, but realistically they will (and should) pursue whatever money ultimately might be made available by the federal government, whether that's loans or grants.

 

And this is one project I would be *very* happy to see my taxes going toward.

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35 minutes ago, gmac said:

 

"...monies we hope to receive from President Trump's infrastructure stimulus through the Department of Transportation"

 

that money is not a loan

 

The original proposals for this project touted private money only. They assured folks that no tax money would be used. As expected, that was a lie.

 

What would you do if you were in there shoes? Would you just fold, and quit? I guarantee you if that was your company you would do anything possible after all the money spent, after all the hurdles you had to cross, and all the opposition that was in your way, yet prevailed, and were on the eve of breaking ground. You can not tell me you would do anything different. You would do the exact same thing. Unless your that much of a rigid and stubborn idealist. We no longer live in ideal times. I certainly don't care for stimulus's, or TCR potentially taking out these loans. They were very much upholding there principles when they were charging ahead. I hope they stick to those principles, but I will not fault them if they have to violate those principles just, so they can live to fight another day. That would simply be wrong to demand from anyone. I think things will rebound and they won't have to take those loans, but again its hard to criticize them under such extreme circumstances, and pragmatically speaking for a project that has potential like this, they should do whatever it takes to survive, and in this climate that is the only thing that matters. When calamity is at your door step, its not exactly the time to be stubborn. Those that do, don't survive.

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1 hour ago, gmac said:

 

"...monies we hope to receive from President Trump's infrastructure stimulus through the Department of Transportation"

 

that money is not a loan

 

The original proposals for this project touted private money only. They assured folks that no tax money would be used. As expected, that was a lie.

 

How do you know "that money is not a loan"?  You don't.  You can't; since I'm pretty sure the "infrastructure stimulus" does not yet exist.

 

More importantly, the article also says:  "Aguilar said any funds from the U.S. government that Texas Central would seek would be in the form of loans."

Edited by Houston19514
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Just as most of you love skyscrapers, a concept I find to be outmoded (I'm more of a low-rise architecture fan), you appear to love this fantastical train idea. I would prefer public investments go to designing and implementing highway changes/upgrades to safely handle autonomous vehicles.

 

Let's see what happens. I'm willing to bet that if this thing does come to fruition it will cost north of $40 billion and a large chunk of that will be taken from the public wallet.

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I completely agree with you that skyscrapers are over-fetishized, but how exactly is this train a fantastical idea? Why does Texas deserve high speed trains less than Japan? or France? or Spain? Have you ever ridden a true high speed train? Is it really that hard to understand that there are people who, at least for some trips, would actually prefer to take a train rather than drive or fly? The fact that a train is *far* more efficient is just icing.

Edited by Texasota
typo
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3 hours ago, Texasota said:

 how exactly is this train a fantastical idea?

 

Because right now it exists only in people's imaginations.

 

I have ridden tens of thousands of miles on trains in my life. They serve their purpose, but not here, in my mind. I understand that others heartily disagree with me.

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3 hours ago, Texasota said:

I completely agree with you that skyscrapers are over-fetishized, but how exactly is this train a fantastical idea? Why does Texas deserve high speed trains less than Japan? or France? or Spain? Have you ever ridden a true high speed train? Is it really that hard to understand that there are people who, at least for some trips, would actually prefer to take a train rather than drive or fly? The fact that a train is *far* more efficient is just icing.

I would LOVE for this train to come to fruition in Texas. I think we could sustain it and develop a new culture within Texas that appreciates trains and regards them as equal in terms of transportation options, but the problem is that we would have to create that culture from scratch whereas all the countries you mentioned already have that culture (and infrastructure) in place. I have ridden high speed trains and subway systems all across France and Spain and in every community/major city where I've arrived there is a HUGE population of dense urban residents who do not see trains as a convenient second transportation option, they see it as their main/only option. What good are trains when you have to rent a car just to get from the station to the main parts of a city? If our cities weren't so spread out and if our politicians saw the redundancy and ineffectiveness of highways then maybe we would be able to make a more concrete case for the role of trains in our state, but unfortunately we are not there yet. It'll take proactive infrastructure development and a change in the ways in which Texas residents perceive trains. 

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