With a little cooperation, selflessness and "big picture" thinking, Ron Landgrebe figures Valparaiso could have its South Shore commuter rail station within a year.
In other words, fat chance.
As I wrote recently, the total cost of extending commuter rail service to Lowell and Valparaiso is estimated at $1 billion. With the federal government willing to split the tab and the Northwest Indiana Regional Development Authority anteing up another $150 million, the funding gap is a mere $350 million.
Local moneybags Dean White probably keeps that much in petty cash. But we can't expect Mr. White to whip out his checkbook for every $350 million project that comes down the pike, so the floor is open for funding suggestions.
Valparaiso Mayor Jon Costas said the annual increase in the Porter County economic development income tax revenue could provide $7 million a year for 20 years to finance the county's portion without any new taxes. Lake County would have to find its own rainbow.
Landgrebe, president of Landgrebe Motor Transport in Valpo, went Costas one better saying the Valparaiso leg ("Let Lowell find it's own funding.") can be funded with the proceeds from the sale of Porter hospital.
The Valparaiso leg in this arm and a leg equation is the bigger, possibly a turkey drumstick, at about $200 million. The county got $122 million for the hospital and might get another $20 million owed the hospital by the state for indigent care. Not enough on its own to cover the whole cost.
Landgrebe's plan is to hold the principal and interest for about five years until it's up to $182 million, which, when invested at 5 percent interest, would generate $9 million a year. He said that should pay to restore service along the old Amtrak line through Hobart and Gary instead of using the proposed Canadian National route.
"Porter County can end up being one of the most envied in the state if we work it right," he said. "We could easily enter into a lease with the present railroad."
Even if railroads accepted leases easily, which they don't usually, Porter County officials are unlikely to spend the hospital revenue to benefit one community for the next 20 years. It's also doubtful they can resist spending any of it for the five years Landgrebe suggests.
Landgrebe sent a copy of his plan to all the county councilmen and the county commissioners. I'm guessing he probably shouldn't bother waiting by his mailbox for a reply.
The opinions are solely those of the writer. He can be reached at pwieland@nwitimes.com or (219) 548-4352.
