High-speed link between Rochester, Twin Cities could pay for itself, report claims  - Finance & Commerce

Finance and Commerce teases me: High-speed link between Rochester, Twin Cities could pay for itself, report claims  - Finance & Commerce:

"A high-speed rail line between Rochester and the Twin Cities would more than pay for itself with the extra economic benefits and tax dollars generated, according to a report released Monday by economic development officials in southern Minnesota. The report from Rochester Area Economic Development says a rail line would generate $27.54 billion in economic benefits, including ..."

Alas, I don't subscribe to Finance and Commerce, so I will have to make up the ellipsis

(1) $1 billion in added noise benefits. Since noise reduces property values, renters and new owners will be able to buy land for cheap.

(2) $10 billion in opportunity costs avoided. Since the HSR line will result in other bad construction projects avoided, and since we can't afford everything, there is clearly a benefit here.

(3) $5 billion in added profits for the operators of the line. The line will cost billions to operate over time, so that must be a benefit to those paid to operate it.

(4) $3 billion in construction benefits. We are paying people to build the line, they benefit. Therefore all construction costs are benefits.

(5) $9 billion in development. There will be new development in Rochester and the Twin Cities. All of that can be attributed to the HSR.

(6) $.5 billion. There will be development taking place in Rochester that would otherwise take place in Mankato. That is another benefit.

(7) $35 billion. The Mayo Clinic won't move to Phoenix.

Was I right?

David Levinson

Network Reliability in Practice

Evolving Transportation Networks

Place and Plexus

The Transportation Experience

Access to Destinations

Assessing the Benefits and Costs of Intelligent Transportation Systems

Financing Transportation Networks

View David Levinson's profile on LinkedIn

Subscribe to RSS headline updates from:

About this Entry

This page contains a single entry by David Levinson published on March 26, 2012 2:23 PM.

Linklist: March 26, 2012 was the previous entry in this blog.

Study: Zip Rail would boost state economy by $1 billion per year - Post Bulletin is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.


Monthly Archives


Powered by Movable Type 4.31-en