Industry urges approval of transportation bond

Real Estate Weekly, Oct 18, 2000 by Natalie Keith

Real estate officials are among those urging voters next month to approve a ballot measure that would allow the state to borrow $3.8 billion for transportation projects.

Proponents of the measure say the funding will help pay for infrastructure projects in the state's 5-year, $34.2 billion capital program, which are viewed as vital to New York's economic future.

"The state's transportation infrastructure is extraordinarily stressed," said Frank McArdle, managing director for the General Contractors Association. "We have a new round of office development that will add to the stress."

On Nov. 7, along with choosing a new president and U.S. Senator, New York State residents will cast votes on the Transportation Infrastructure Bond Act of 2000, the largest bond act in history.

If the measure is approved, it will allow the state to borrow some of the money to finance the 5-year capital funding. The remaining $30.4 billion in funding for the capital program will come from a variety of local, state, and federal sources. The program includes $17.1 billion for the state Department of Transportation capital plan and $17.1 billion for the Metropolitan Transportation Authority capital plan.

In May, state legislators agreed to the bond act as part of a deal they reached regarding the state budget. In September, the governor and state legislators reached an agreement on a document called the "Memorandum of Understanding," which outlines details for how the money would be spent.

State officials say if the bond act is adopted, the state's average annual rate of growth in debt will be 4.3 percent, less than half of the 10.6 percent rate of annual growth that occurred during the late 19 80s and early 1990s. It will also fit within the new state-supported debt limits contained in the Debt Reform Act of 2000 approved earlier in the year by the state legislature. Governor Pataki proposed the law, which was the first debt reform legislation ever passed in New York.

The real estate industry is urging support of the bond act because it will provide funding for public works projects that provide jobs in the industry. But, more importantly, the money will help the state complete infrastructure projects, such as the proposed Second Avenue subway line, seen as vital to the city's continued economic success.

"Infrastructure is so vital to the economy," said Dean Angelakos, vice president of policy and programs for the New York Building Congress. "As the economy is growing you can't neglect the infrastructure."

A coalition of contractors, unions, environmentalists and civic groups have formed a group called the Committee for Safe Roads and Improved Transportation to advocate support of the ballot measure.

The committee hopes to raise $2 million for a television advertising campaign to run in the days prior to the election.

The committee has selected Governor Pataki political consultant Kieran Mahoney to run the media campaign, Republican operative Ellen Difrancisco to be executive director and Rubenstein Associates to handle public relations.

Proponents of the bond act warn, however, that getting the public to pay attention to the issue may be difficult. With tight races for president and New York and New Jersey senate seats, the public is being inundated with political ads. In fact Change-New York, a group opposed to the measure, decided not to run ads because of the "political clutter" on television.

"This is a tough year because there are so many tough campaigns," McArdle said. "We don't want to be drowned out."

Key projects in the New York City area that are covered under the five-year state plan are as follows:

* $1.99 billion to buy more than 1,100 new subway cars to replace existing cars and to expand the fleet by 200 cars. When coupled with car purchases made in 1995-1999 capital plan, the fleet will increase by 7 percent to support ridership growth

* $1.28 billion to rehabilitate 64 subway stations to create a more secure and customer-friendly passenger environment. This will bring the total number of funded station rehabilitations to 215, nearly half of the total 468 stations

* $1.05 billion for planning, environmental review, final design, engineering, and to initiate construction of a full-length Second Avenue subway from 125th Street to lower Manhattan

* $645 million to improve access to LaGuardia Airport

* $490.6 million to buy 1,200 buses to replace existing buses and expand capacity by 9 percent

* $225 million to renovate the Long Island Rail Road's Jamaica Station and integrate Airtrain, the Port Authority's new JFK Airport access system

* $70 million to reconstruct the Long Island Rail Road's Atlantic Terminal

* $20 million for construction of a new MetroNorth station at Yankee Stadium

* $11.5 million to create a pedestrian and bike path on the east bank of the Bronx River

* $30 million to safety on the Henry Hudson Parkway between Dyckman Street and 174th Street

* $32.2 million to rehabilitate the Grand Central Parkway between Bell Boulevard and Jackie Robinson Parkway