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Extension needs $350 million in local funding

South Shore funding talk pulls out of station

South Shore funding talk pulls out of station
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How to fund a South Shore extension to Lowell and Valparaiso and even its route are back on the table as the railroad and its supporters prepare for key legislative hearings this summer.

"We want to make sure we have all the ducks in a row and pursue this effort in the most positive, constructive way possible," said Leigh Morris, chairman of the Northwest Indiana Regional Development Authority.

At an April 28 meeting at South Shore headquarters in Chesterton, Morris and RDA member Harley Snyder discussed possible changes in approach for the project with South Shore officials.

At Tuesday's RDA meeting, Snyder said critics' objections are being examined and the RDA continues to build a coalition in support of the project.

A proposal last year to secure local funding by diverting $350 million in state sales tax revenue to the $1 billion project did not fly in the Indiana Senate during its last session.

An interim legislative committee will give the South Shore funding plan another look this summer.

Morris said it is obvious the South Shore and its supporters will have to go to those hearings armed with alternative plans for raising the $350 million, but did not specify what ideas are on the table.

In the past, both a "wheel tax" on automobile registrations and a gasoline tax have been raised as possible funding sources.

State Sen. Earline Rogers, D-Gary, said Senate leaders made it clear the state will not put up the entire $350 million.

The local legislative delegation supports the project, but coming up with local funding continues to be the sticking point, Rogers said.

The South Shore also will take another look at the feasibility of using the Chicago/Fort Wayne & Eastern right of way from Gary to Valparaiso as an extension route, Morris said. That route once carried Amtrak service to Valparaiso.

An ongoing feasibility study is examining use of Canadian National right of way from Munster to Valparaiso. Northern Indiana Commuter Transportation District Marketing and Planning Director John Parsons emphasized that still is the preferred alternative.

The Lowell extension would be along CSX right of way from Munster to Lowell.

The South Shore and RDA also will take a closer look at integrating train and bus service, Morris said.

"That is the way to get the most benefit for the most people," Morris said.

The city of Valparaiso and the Northwest Indiana Regional Bus Authority plan on running express buses from the region to Chicago's loop. Both have said the buses will not replace South Shore service, but merely augment it until the extension is built.

Parsons said there are no plans to use a combined funding source for the South Shore extension and the Regional Bus Authority. The Regional Bus Authority plans to start its own local bus routes as early as this summer.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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