Florida commuter rail bill criticized as 'sweetheart deal' for CSX
(The following story by Brandon Larrabee appeared on the Florida Times-Union website on December 9, 2009.)
TALLAHASSEE, Fla. The Senate overwhelmingly approved a commuter-rail measure Tuesday despite criticism from some that it would clear the way for a "sweetheart deal" for Jacksonville-based CSX Corp (NYSE: CSX).
Meeting in a special session - called in hopes of increasing the state's chances of snagging federal stimulus dollars for a high-speed rail project - the Senate voted 27-10 to send the legislation to Gov. Charlie Crist.
The House approved an identical measure Monday. Crist is expected to sign the bill.
"This bill is a framework to build a future infrastructure for the state of Florida," said Sen. Jeremy Ring, D-Margate.
The margin was somewhat surprising, with some observers wondering earlier in the special session whether Senate leaders could muster the 21 votes needed to move the measure through the 40-member chamber.
Supporters in the Senate said the legislation was less about South Florida's Tri-Rail system and the proposed SunRail line for Central Florida than for setting rules for proposed or envisioned projects from Jacksonville to Tampa and beyond.
"It's not just about CSX railways; it's about a vision," said Sen. Nancy Detert, R-Venice.
But opponents zeroed in on the provisions dealing with SunRail and the purchasing of lines from CSX, which stands to make hundreds of millions from the transaction.
Sen. Paula Dockery, R-Lakeland, and other opponents said the total tab for the SunRail line would be $641 million, or $10.5 million a mile - far higher than comparable projects in other parts of the country.
"We're overpaying for that track and we're setting another dangerous precedent," said Dockery, who is running for governor in 2010.
CSX hopes to use some of the funding on a $40 million plan to ease congestion along Jacksonville's Heckscher Drive. Tracks would be upgraded and a link built through Nassau County, connecting rails along U.S. 17 to the mainline running north toward Waycross, Ga.
"It gives us the opportunity to get the $40 million for the intermodal connectivity around the port, which I think will have an incredible impact on our ability to compete with Savannah, Charleston, other similar types of ports," said Sen. John Thrasher, R-St. Augustine. "It's a great opportunity for Jacksonville."
Jacksonville would also be a possible home for a future commuter rail project.
Opponents also highlighted provisions of the SunRail contract and the measure under which the state would assume liability in the event of a lawsuit against CSX. The company will still be allowed to run its freight trains along the lines at some times.
"We're not partners," scoffed Sen. Nan Rich, D-Sunrise. "They get all the money and we give the indemnity to them."
For its part, CSX disputes the cost figure cited by opponents and says the indemnity measure is not unusual and is necessary for the deal to go forward.
Gary Sease, a spokesman for the company, said the state will pay the company $432 million for the 61 miles of line and other expenses associated with the deal.
Sease said the indemnity clause will prevent a lengthy court battle between the state, CSX and others if a lawsuit results in a legal judgment or out-of-court agreement.
"It provides for quick settlement of claims that people may have on that system," Sease said.
Supporters stressed that similar agreements would be necessary anywhere commuter rail moves forward.
"The same type of indemnity language would be necessary for [a proposed Tampa Bay-area system]," said Senate President Jeff Atwater, R-North Palm Beach. "It would be necessary for Jacksonville, it would be necessary for the expansion of Tri-Rail to a new corridor if that ever happens."
