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Ohio Needs Jobs? How About 16,700 of Them? An 'Ohio Hub' Update

By Carole Cohen

Real Estate Agent with Howard Hanna Cleveland City Office

July 12, 2007 09:27 PM

NE Ohio needs jobs, this is our collective mantra. My personal mantra is the Ohio Hub/3C Corridor Plan. But then I guess I don't really have to tell you that do I? The Economic Impact Study has been completed. It was conducted (pun intended?) by the Ohio Rail Development Commission (ORDC). The reports just keep getting rosier guys!

The Ohio Hub becomes a very important link in the chain to the National Rail Network which serves 140 Million People in the Midwest, Northeast and Canada. This is from a news article coming from Frederick Maryland and NOT Ohio.
The rate of return on a $1 billion investment from the State of Ohio would reap a $17 billion dollar benefit from other funding sources.

Remember SB294? It passed the first hurdle, the Senate Commerce Committee, in April. This is the Lautenberg-Lott bill that would authorize full funding for passenger rail (Nationally) for the next six years.

The Economic Impact Study provides some figures on the first 'loop' of the Ohio Hub which encompasses 860 miles of tracks (the full Ohio Hub would provide 1,270 miles of service). What would the impact of this 860 miles of service be?

16,700 new jobs in Ohio
7,100 construction jobs
1.84 billion dollar increase in household income in fields like retail, health care, financial services and insurance, among others.

Over the course of 30 years, the project would bring on -

More than $3 billion development activity in areas near the train stations in Ohio
Will generate $80 million dollars in tourism by providing approximately 320,000 new overnight trips
Generate an annual fuel savings of approximately 9.4 million gallons of fuel

Stations will be in Columbus, Youngstown, Middletown, Toledo, Dayton, Cincinnati and Cleveland. The 860 miles of service will provide rail service to Toronto, Pittsburgh, Detroit and Cincinnati.

Let me say it again: 16,700 jobs and a 9.4 million gallons of fuel saved per year.

Read a press release from Sen. Lautenberg's office on SB294 -June 27, 2007 Peace Out - 3C

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Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

I like the idea of increased in jobs, incomes, etc. $1.84 Billion increase in household income will buy a LOT OF HOMES.

Jul 13, 2007 01:39 AM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Bill, thanks for your comments. The difference between any rail system after the advent of serious highway bldg and automobile fervor and now, is experience, history, fuel costs and highway costs. In my first Hub post (linked above) there was serious commenting about the issues. One major point: the freight unions are very much in favor of this; our national hwy system can no longer fully support freight transport. So that can be added into the mix. There are a lot of other issues too, but that one is pretty telling.

Lenn: yes, lots of good economic development including housing! NAR and OAR need to come out in support of SB294 and the Ohio Hub. You can imagine the trouble I'm having getting them to listen but they don't know me I don't give up. :-)

Jul 13, 2007 01:57 AM

Mitchell J Hall

Manhattan, NY

Lic Associate RE Broker - Manhattan & Brooklyn

ALL ABOARD! Carole, I hope Ohio gets Hub 3/C named after you. I beleive the railroad and cities that have good transit systems will benefit from high oil prices. In addition to jobs and incomes it also brings real estate developments.

Jul 13, 2007 10:22 AM

George Souto

George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT

Your Connecticut Mortgage Expert

Carole, thanks for the continued up dates on this. It sounds like it is all coming together, now just hope that this project delivers all it says that it will.

Jul 13, 2007 10:25 AM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Thanks Mitchell and yes I do feel as if they are naming it after me lol. As for benefits, that puts NYC and the Eastern Corridor smack in the middle of the beneifts of rr transportation. I do hope we can be a part of that.

George ty I just hope it does not take too long to complete the last major study - environmental - and that work on it can begin.

Jul 13, 2007 10:37 AM

Monika McGillicuddy

Berkshire Hathaway HomeServices Verani Realty - Hampstead, NH

Southern NH & the Seacoast Area

Carole...Sounds good...all those jobs a very very good thing.

Jul 13, 2007 12:53 PM

Elaine Reese, REALTOR® in central Ohio

Real Living HER, Powell Ohio - Powell, OH

Well, we could certainly use some economic help! This was an excellent post. You always amaze me at the depth of information you include in your posts. Great job.

Jul 13, 2007 01:24 PM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Moni: I wish they were here now we need them!

Elaine: I was at a memorial service today during your 'tour' im going to have to go check out your posts and MM's. And yes we do. You know, I cannot get anyone from OAR or CABOR to talk with me about this Hub Initiative. I keep thinking, okay great, they lobby for important legislation. But I feel like they should at least be willing to listen to some experts explain it and then decide how the want to approach it...or not. You know? If you have any suggestions let me know.

Jul 13, 2007 01:42 PM

» Bill Burress Nationwide Mortgage Originator

» Bill Burress Nationwide Mortgage Originator - Fort Myers, FL

Carole:

Thanks for your answer. It sounds like you have done your homework and I hope it goes as well as expected. I wish you the very BEST!

Jul 13, 2007 01:49 PM

Mark H. Roe

BeSure Home Inspection Service - Lancaster, OH

BeSure Home Inspection Service

Can you say "All A Board" ? Great information, thanks

Jul 13, 2007 03:26 PM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Bill and Mark, thank you!

Jul 13, 2007 04:16 PM

Anonymous

Bill Burress said: "Didn't we try the passenger train thing before...."

Bill, You speak of bad legislation and bad public policy. The reason other modes of transportation replaced passenger trains isn't because there wasn't sufficient public demand or that it wasn't economically viable. The reason the passenger train got replaced is precisely because of bad public policy.

You have to remember that the rail system of yore was built and maintained by the private sector. The railroads always have and still do pay property taxes on their infrastructure-- including their passenger stations back in the day. The government effectively put the private passenger system out of business by pouring public money into highways and aviation. The price that people pay to drive has always been artificially cheap. The cost of our roads alone is only partially paid for by gasoline and licensing taxes. The rest comes out of general revenues. Then there are all the subsidies to oil companies which helped keep oil artificially cheap for so many decades and the military costs of keeping a military presence in the middle east, escorting oil tankers, etc. There other costs of roads that are externalized too, but I don't want to get too long winded.

Would you invest in a business where the government is pouring huge sums of public money into your competition and rigging the rules of the game via public policy so that you lose?

All in all, if the total subsidies to driving were included in the price of gasoline at the pump, we'd be paying between $10 and $13 per gallon.

Aviation subsidies are also extensive and only 2/3 of the cost of our aviation system is paid for out of the Aviation Trust fund (i.e. ticket taxes and landing fees). The rest is paid for by all of us on April 15.

In short, government distortion of the transportation marketplace effectively killed the passenger train.

The economic study is credible. Two different firms were involved so they wouldn't be relying on just one, and ORDC wanted the estimates to be on the conservative side.

Point of clarification: SB294 isn't the legislation for the Ohio Hub. It's legislation to reform Amtrak and to correct the federal transporation policy biases against passenger rail. The bill would result in the federal gov't treating passenger rail the same way highways and aviation are treated-- by paying 80% of the capital cost of rail projects.

Jul 14, 2007 02:28 AM

#14

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Ed thanks, as usual I learn facts from you, this time the subsidies - at least the size of them - regarding highways and aviation. SB294 will show the commitment to rails as well as (I think) helping to keep train tracks working that can tie into the Hub, even though all of this is Amtrak related.

It also seems to me that the cost benefit from a similarly structured subsidy for rails is much higher than one covering highways. Especially as it relates to energy?

Jul 14, 2007 02:39 AM

Linda Davis

RE/MAX Home Team - Gales Ferry, CT

I hate when the government gets involved in transportation or anything for that matter. I can't help but think of the big dig in Boston where the original estimate of under 3 billion dollars turned into 15 billion. That's over 1 billion a mile.

Stay diligent! I hope it happens so we can read your updates!

Jul 14, 2007 06:58 AM

Dena Stevens

Rocky Mountain Realty - Canon City, CO

Putting The Real Into Realtor Since 2004

I think I got lost in the comments. But is sounds like Ed is taking common sense one step further. I am of course for jobs and energy savings, the betterment of all. But we have to closing examine what is happening and double check all the facts. For example : CFL lightbulbs last longer and save money and energy for the consumer. But CFL's have Mercury in them and need to be recycled - you don't hear that in the commercials. Filtering common sense is a hard thing to legislate.

Jul 14, 2007 03:59 PM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Linda/Carnac: Yes and let's hope the government can stay on track, no pun intended this time. We still have to wait for the results of the environmental study, but so far so good!

Dena: "Filtering common sense is a hard thing to legislate" Great comment!

Jul 15, 2007 03:11 AM

Gina Kay Landis

Home Experts Realty - Dayton, OH

Carole, I'm THRILLED about the Ohio Hub. Stu Nicholson and I have been communicating about this for some time and I'm talking it up here in SW Ohio.We are working hard to get the Ohio Hub project to link somehow in the Dayton, OH area. Jobs? Housing? yes!!

Jan 22, 2008 08:00 AM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Gina I am so happy to meet you! Are you in the OHio Hub yahoo! group? I need to send your email to Ed the moderator if not! Let me know! Stu is one of my favorite people in the train movement (sorry my 60s roots come out lol)

I'm hoping you and I can chat a lot! :-)

Jan 22, 2008 01:07 PM

Michael DiFlora

Real Living Realty Services - Huber Heights, OH

Hearing this news brings insight to what should be expected for Ohio in the future. If we tried this before, why didn't Ohio stick with that plan? I think this is definately a new program. It is following the prospect of that in the bigger cities like the Boston to New York train.

This railway will have a positive impact foral of Ohio. It will connect minor cities to major cities and help Ohio grow economically. This gives even the small city local person a chance to obtain a job in bigger cities while living where they can afford to live. Can't wait to see the impact!

Jan 26, 2008 12:54 AM

Carole Cohen

Howard Hanna Cleveland City Office - Cleveland, OH

Realtor, ePRO

Hi Michael, nice to meet you - I love that aspect too, that the high speed Hub benefits the entire State, and actually the economies of surrounding states as well. First we have to build it. I hate that Ohio seems to start and stop on projects too. Let's keep some pressure on them to complete this one!

Jan 26, 2008 09:13 AM