New Maryland Governor Skeptical of Purple Line

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DALLAS - The fate of Maryland's $2.45 billion Purple Line light rail is in the hands of Gov.-Elect Larry Hogan, an avowed foe of the project.

The Republican, who beat Purple Line proponent, Democrat Lt. Gov. Anthony Brown on Tuesday, said at a post-election news conference that the project is "going to be talked about during the transition." Under state law, the governor has the budgetary authority to decide whether the state's first transit project, which is to be funded, built, and operated through a public-private partnership, will go forward.

Hogan, a commercial real estate developer who had never before sought public office, beat Brown by a 51.4% to 46.9% margin.

He was elected as the Maryland Transit Administration is currently in the process of selecting a concessionaire from four qualified consortiums seeking to build and operate the 16-mile Purple Line system through the northern suburbs of Washington, D.C. Their final proposals are due Jan. 9.

The Maryland Board of Public Works is expected to pick the private partner in spring 2015. The successful consortium is to invest $500 million to $900 million in the Purple Line in exchange for the ability to operate and maintain the system for 35 years.

The successful concessionaire will receive availability payments of up to $200 million a year, which can be used to repay a federal Transportation Infrastructure Finance and Innovation Act loan of up to $732 million that the state is seeking.

During the campaign Hogan said he would cancel the Purple Line and the proposed $2.6 billion Red Line in Baltimore because they cost too much. He said he would instead spend the money on highways.

"We're going to focus on building roads, and that's something this administration has not done," he said in September.

However, Hogan said in a later radio interview that the projects may have some merit.

"I'm not really opposed to the Red Line or the Purple Line and both of them I think are worth considering and I'm not even opposed to continuing along the planning and engineering phases, but quite frankly, you know, we've robbed a billion dollars out of the Transportation Trust Fund," he said.

Maryland voters passed a constitutional amendment Tuesday that prevents future diversions from the state's highway fund for non-transportation purposes.

Stewart Schwartz, executive director of Maryland Coalition for Smart Growth, played down the concerns over the Purple Line, noting that Hogan's campaign focus on improving the state's economy bodes well for the project.

"Those grappling for new pieces of conventional wisdom may find themselves surprised on at least one key issue," he said. "Despite what many said during the heat of the campaign, long-planned new transit projects like the Purple Line or Baltimore's Red Line are not dead in the water because of Hogan's victory."

Maryland has spent $169.3 million for Purple Line planning and engineering since 2006, and another $3.7 million to acquire rights-of-way.

The Federal Transit Administration gave the go-ahead this summer to advanced engineering work on the Purple Line, which is the final stage before full funding of the project.

The Obama administration has proposed a $100 million New Starts grant in fiscal 2015 for the project, with another $800 million of federal grants expected later.

Funding also will include $360 million to $760 million from the state's transportation fund, $240 million from Prince George's and Montgomery counties, and up to $900 million from the private partner.

The cost of building the Purple Line was projected by Maryland Transit Administration at $1 billion in June 2007. The expected construction costs rose to $1.5 billion in August 2009, to $1.9 billion in September 2011, and to $2.2 billion in 2012. In January the estimated price was $2.37 billion but it was raised to $2.45 billion in September.

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