Suits seen as unlikely roadblocks to bridge

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Permit in hand, but fight continues

By Bill Shea and Dustin Walsh

Crain’s Detroit Business

Legal challenges thrown up to block a second Detroit River bridge are more speed bumps than roadblocks, at least according to Gov. Rick Snyder.

The state “has a winning track record” in defeating such lawsuits, he said Friday after announcing the U.S. Department of State had approved the critical presidential permit needed to advance the $2.1 billion New International Trade Crossing linking the highways in Detroit and Windsor. And they won’t halt its construction.

TRADE CROSSING FAQS

• The New International Trade Crossing is estimated to cost $2.1 billion. The I-75 highway interchange was predicted in 2010 to cost $385.9 million, and the U.S. plaza, $413.6 million. The nearly $1 billion bridge itself would be financed by Canada through a private-sector concessionaire, and the remainder of the $2.1 billion price tag is on the Canadian side of the project.
• Canada has pledged to cover any construction and operational deficits. It also will cover all capital costs on the Michigan side of the project, including $264 million that project organizers want the U.S. government to pay for. If Ottawa and Washington can’t reach a deal on that cost, Canada will pay it.
• Under a deal reached in June 2012 among the Michigan, Ontario and Canadian federal governments, a Canadian company called the Crossing Authority will be in charge of the design, construction, finance, operation and maintenance of the six-lane bridge, which it is expected to bid out under public-private partnership deal to a private company for a 40- or 50-year concession.
• All of Michigan’s share of the crossing tolls will go to Canada to pay back its costs. The state will not receive any toll revenue until that money is paid back and after the concession agreement ends in four or five decades.
• Tolls will be determined by the private-sector concessionaire during the bidding process. However, the models used by MDOT to justify need for the new span are predicated on using the same toll rates as the Ambassador Bridge.
• The Crossing Authority will fall under a joint authority, and half the bridge will be owned by Michigan and half by Canada.
• The deal was swung by Michigan Gov. Rick Snyder with Canada to bypass the Michigan Legislature, which balked at approving any money for the bridge project because of concerns about its necessity — border traffic has declined since 2001 — and whether it would unfairly affect the competing privately-owned Ambassador Bridge.
• Backers tout the new jobs and increased trade they predict the span will fuel. Snyder said the project will create 12,000 direct jobs and as many as 31,000 indirect jobs.
• Supporters also say the bridge will eliminate a traffic bottleneck at the border, and provide redundancy for the Ambassador Bridge two miles away.
• The Detroit-Windsor border — which encompasses the bridge, a tunnel and ferries — is the busiest in North America and carries a quarter of all U.S. trade with Canada, which was $120 billion last year.

Source: State of Michigan, Crain’s research

“I view (such lawsuits) as unfortunate because it takes away resources from the state,” Snyder said after a news conference in Detroit at which he and others touted the permit and bridge project.

The leading opponent of the project is Ambassador Bridge owner Manuel “Matty” Moroun, the commercial trucking industrialist who has said the new span will bankrupt his bridge by taking lucrative commercial truck traffic. He’s owned the bridge since 1979.

Moroun’s Detroit International Bridge Co. and Canadian Transit Co. in February filed a lawsuit in U.S. District Court in Washington, D.C., against the U.S. and Canadian governments and other agencies, arguing they don’t have the authority to approve the bridge permit.

Mickey Blashfield, the DIBC’s director of governmental relations, declined to comment Friday.

Also suing to halt the project is State Rep. Fred Durhal, D-Detroit, who is challenging the state’s right to create the agreement it has with Canada that governs how the span will be built, owned and operated.

Durhal has links to Moroun: He previously received $7,000 in campaign contributions from the Moroun family, and his attorney, Godfrey Dillard, used to work for the Ambassador Bridge owner, MLive.com reported on April 9.

Observers say the lawsuits are last-gasp delaying tactics that have little hope of postponing the inevitable for more than a few months.

Click here to read the full story.

Tom Walsh: New bridge is an opportunity region can’t waste

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By Tom Walsh
Detroit Free Press Business Writer

Now that President Barack Obama and the U.S. State Department have officially chosen to accept Canada’s gift of a free bridge at the Detroit-Windsor border crossing by issuing a permit for the project, Michigan’s obligation is to put it to good use.

That’s not a given in a state that has squandered or underutilized assets in the past. More on that later.

First, we can celebrate the green light given to the New International Trade Crossing (NITC) for what it is — a symbol of a region looking forward, investing in growth.

“For those of us who are in the economic development business, it gives us something to sell. We now will have a visible symbol and an actual tool to make it a lot easier to attract companies that are involved in international trade,” said Sandy Baruah, president and CEO of the Detroit Regional Chamber.

David Egner, head of the New Economy Initiative for Southeastern Michigan, said research has shown that Michigan could create a series of logistics hubs that would yield 66,000 new jobs — partly by capturing business that now flows through congested Chicago — but only if a new border crossing provides capacity to handle more traffic.

“It could change the game, including for the west side of the state,” Egner said. “This is a perfect east-west partnership, because today if manufacturers on the west side ship through Chicago, it sits for three days before it moves.”

While border crossing data show that Ambassador Bridge traffic has not fully recovered from the slump after the Sept. 11, 2001, terrorist attacks, the NITC project suggests a brighter future, a region on the move.

“The past trajectory of the bridge traffic has mirrored the trajectory of the Big Three automakers,” Baruah said. “As we see their sales start to spike, their challenge is that if the capacity of the bridge between the U.S. and Canada is constrained, then where are they going to add future capacity to build their cars, now that their trajectory is higher?”

The near-term stimulus of construction jobs is important, too. “This bridge is going to take years to build and will probably have, at various times, tens of thousands of people working on it,” Baruah said. “Even though those are short-term jobs, they feed a narrative of good things happening in Michigan.”

When I asked Gov. Rick Snyder on Friday whether Ambassador Bridge owner Manuel (Matty) Moroun might now be ready to drop efforts to block the NITC project, Snyder said he hasn’t seen any such signals yet, but he is open to discussion on how the public and private bridges could coexist.

“You hope at some point that people recognize this project’s going to move forward because it’s for the benefit of Michiganders,” Snyder said. “I’m always open, and I hope the Canadians are open to sitting down to talk. This is one of those milestones that hopefully reinforces the fact that this project should happen and will happen.”

Whatever tack Moroun takes with the existing bridge, it’s crucial that Michigan’s business and civic leaders hunker down seriously to maximize the benefits of the NITC by laying the groundwork for new industries and for expanding existing businesses.

A classic example of failing to capitalize on a major asset has been the region’s lackluster effort to take advantage of the outstanding McNamara Terminal and other upgrades at Detroit Metro Airport.

It has been 11 years now since the 122-gate, $1.2-billion McNamara Terminal opened, winning raves from travelers and the news media alike. But once visitors leave Metro Airport’s baggage claim area, they are peeved to discover they must fork over $70 for a ride to a downtown Detroit business hotel, or nearly $90 to get to Birmingham.

How can a region that’s serious about business and growth put up with the lack of even a mediocre system of shuttles to get people from the airport to major lodging and conference spots in the region? Thankfully, the Metro Detroit Convention & Visitors Bureau is working on a proposal to improve airport transit. Let’s hope they come up with something workable — and soon.

Meanwhile, we should look at the new bridge the same way we look at the airport: It’s a tremendous potential asset, but it must leveraged.

Just as there’s been much talk about the growth potential of an Aerotropolis development area between Metro and Willow Run airports, there has also been much talk of maximizing the busy border crossing to attract more logistics and freight business.

“There are bunches of plans on paper, but nothing that’s been done in an aggregated manner that makes sense and that the state has embraced,” Egner said.

By the time shovels are in the ground for NITC construction, let’s hope there’s movement on how best to take advantage of it.

Next up for bridge plan: Buying land

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U.S. permit clears way, but Ambassador owner holds key properties

By Chad Livengood
Detroit News Lansing Bureau

Detroit — Construction of a long-sought new Detroit River crossing took a major step forward Friday with the signing of a presidential permit clearing the way for Canada and Michigan to assemble land for the $2.1 billion six-lane bridge.

The U.S. State Department announced approval of the bridge on Friday. It ends a lengthy review conducted in part to ensure the New International Trade Crossing can survive legal challenges from Ambassador Bridge owner Manuel “Matty” Moroun, who has spent millions of dollars trying to block the project for nearly a decade.

“This is huge,” Gov. Rick Snyder said Friday afternoon in announcing the permit. “It’s more than a bridge to me. It’s about jobs and our future in this state.”

Canadian leaders view it as their country’s biggest transportation project and have agreed to front Michigan’s $550 million share of the cost, which will be repaid through toll revenue. The Canadians also have pledged to reimburse Michigan taxpayers for any expenses the state Department of Transportation incurs in connecting the new bridge to Interstate 75 through a new international plaza in southwest Detroit.

But the Snyder administration and Canadian government still will have to deal with an old nemesis as they try to finish assembling land in Detroit for the project. One of Moroun’s companies owns a handful of parcels in the area now targeted for inclusion in the footprint required for the bridge and plaza.

Much of the vacant land in the area is already owned by the city. But Moroun has bought a hodgepodge of property across southwest Detroit in the area where different bridge proposals were planned, including a few between Jefferson and Fort and Green and Campbell that will be needed for the new bridge and highway interchange.

Legal challenges continue

In an interview Friday, Snyder said the state Department of Transportation will treat Moroun like any other landowner as the agency assembles land on behalf of a new international authority that will own and operate the bridge.

“There won’t be any change in process for what’s owned by the Morouns versus any other landholder,” Snyder said.

Snyder declined to say whether MDOT would have to seize Moroun’s land through eminent domain, where the state takes property but still compensates the owner for its value. The seizure process is legal for public uses such as roads and bridges.

“I’m not going to speculate on that, that’s their choice,” Snyder said. “Hopefully they’ll make what they consider the appropriate decision. … Because I’ve never tried to fight with them.”

A spokesman for Moroun’s Detroit International Bridge Company did not return calls Friday seeking comment.

The Morouns do not own land on the Canadian side that would be required for the new bridge, said Roy Norton, the Canadian consulate general to Detroit.

Moroun’s company has a pending federal lawsuit seeking to stop the bridge, claiming the Ambassador Bridge has an exclusive franchise to operate a lucrative Detroit-to-Windsor bridge that dates to a nine-decade-old act of Congress and the Canadian Parliament.

State Rep. Fred Durhal, D-Detroit, recently sued Snyder, challenging the governor’s legal authority to enter into an agreement with Canada without the state Legislature’s approval. After legislation authorizing a new bridge failed to get out of a Senate committee in 2011, Snyder bypassed the Legislature and signed a deal with Canadian officials last June that calls for Canada to finance the bridge.

Construction in 2015?

With the presidential permit in hand, Snyder said construction could begin as early as 2015, depending on legal challenges. The crossing may open for traffic by 2020, he said. The project is expected to create 12,000 direct construction jobs and as many as 31,000 indirect jobs.

“A lot of people are looking forward to that day when they’re going to step on or drive on that new crossing … most likely it will be after I’m finished in office,” Snyder said.

Scott Brines, 41, who lives in the Delray community, said Friday’s announcement brought a “sigh of relief” in the community that wants green space buffers and environmental protections from the new bridge complex.

“More than a buffer, we need to see a real dent in the air quality,” said Brines, president of the Southwest Detroit Community Benefits Coalition. “This is the opportunity this community has waited for a very long time.”

Landowners want to be compensated fairly for their property if it falls in the path of the bridge and plaza, Brines said.

“I’m not so sure how fair it will be, but they’ll have to be compensated,” said attorney Alan Ackerman, who represents 20 property owners in Delray. “The fact is if the government really needs it and it’s a public use, the government’s going to get it.”

Tim Boik, owner of West Detroit Parts, an auto parts store on West Fort Street, said he has “no problem” with moving and hopes Moroun and other landowners will not drag out the project any longer.

“He’s just delaying something that’s actually going to happen,” Boik said. “Everybody’s excited because the city’s been dying off for years, and it’s going to bring some new life into it.”

Snyder: Permit for Detroit-Windsor bridge is about state’s future

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By David Shepardson and Chad Livengood
The Detroit News

The Obama administration has approved a presidential permit clearing the way for a new $2 billion six-lane bridge crossing between Detroit and Windsor — hailed by Michigan and Canada as a way to boost trade and create thousands of jobs.

The State Department, which informed Michigan and Canadian officials of the planned decision late Thursday, formally announced approval on Friday. The lengthy review was in part to ensure that the decision can survive multiple legal challenges of the New International Trade Crossing.

“This is huge,” Gov. Rick Snyder said Friday afternoon in announcing the permit. “It’s more than a bridge to me. It’s about jobs and our future in this state.”

U.S. and Canadian officials hailed the presidential permit as a step toward strengthening trading relations between the two countries.

“It’s a real significant step forward for everybody,” Canada Labor Minister Lisa Raitt said at the announcement.

“We have taken today what is undoubtedly the greatest relationship between two neighbors anywhere in the world and we’ve made it a little better,” said David Jacobson, U.S. ambassador to Canada. “And that’s something to be proud of.”

But not everyone is satisfied with the bridge plans.

State Rep. Rashida Tlaib, the Democrat who represents the southwest Detroit area where the crossing will be built, said she welcomes the bridge, but residents need a legally binding agreement to address issues such as air quality, jobs and community oversight.

“Gov. Rick Snyder and the United States and Canadian governments have yet to effectively address the negative impacts on the residents, local businesses and churches in Detroit that will directly be impacted by this massive project,” Tlaib said in a statement. “… The project must include a comprehensive plan that creates permanent jobs for Michigan families and supports local businesses and a community benefits process.”

Snyder said the major construction project is expected to create 12,000 direct jobs and as many as 31,000 indirect jobs.

“Getting Michigan-made products to more markets faster will enhance our economic competitiveness in the future and help our state create more jobs,” he said in a statement.

U.S. Transportation Secretary Ray LaHood lauded Snyder for his “tireless leadership” while praising the economic benefits of the bridge.

“The New International Trade Crossing will be much more than just a bridge connecting Detroit to Windsor, Ontario,” LaHood said in a statement. “As those who have worked so hard to move this project forward know, it will be an economic engine for the entire region.”

Still, the bridge faces legal challenges.

Several lawsuits have been filed to stop the span, which would compete with the privately owned Ambassador Bridge. The Detroit International Bridge Co., which owns the Ambassador Bridge and is controlled by Manuel “Matty” Moroun, filed suit in Washington in November to block it. The suit is pending. Moroun also spent millions trying to convince Michigan voters in a failed referendum last November to block the bridge.

Canada, which has been calling the new bridge the Detroit River International Crossing, praised Friday’s announcement.

“Canada and the United States are each other’s most important trading partners. The presidential permit represents an important step towards a new bridge, which will be needed for growing trade and traffic at the busiest Canada-U.S. commercial border crossing with over 8,000 trucks crossing each day,” said Canadian Labor Minister Lisa Raitt. “This project will create thousands of jobs and opportunities on both sides of the border both during the construction period and in the years to come.”

The State Department also has scheduled a telephone briefing Friday for members of Congress.

Jeff Watson, a member of parliament for Essex, called the approval a “vital” one.

“One-quarter of all U.S.-Canada trade, which is the world’s largest two-way trading relationship, crosses at Windsor-Detroit,” Watson said. “The Detroit River International Crossing will make a vital contribution to our community, the auto industry, Canada’s economy and the well-being of both countries.”

Rep. Gary Peters, D-Bloomfield Township, applauded the news as “a huge win for southeast Michigan, and we can expect thousands of much needed new jobs now that construction can begin. The Detroit-Windsor border is already the single busiest trade corridor between the U.S. and Canada, but this crossing will transform Greater Detroit into a global transportation hub”

Rep. John Dingell, D-Dearborn, said the U.S. Coast Guard still must approve the state’s pending permit to allow the project to move forward. The state must acquire additional land to build the bridge

“This bridge will be of an enormous help to the state of Michigan and the industries that call it home —including our valuable automotive sector,” Dingell said. “It will allow for more efficient international transfer of our goods and services, and is sure to increase exports from our home state. More importantly, this project will create 10,000 construction jobs in Michigan, and will encourage the creation of permanent jobs that new business will bring.”

Southeastern Michigan leaders also hailed the news.

“This is great news for Michigan,” Oakland County Executive L. Brooks Patterson said. “We need this critical piece of infrastructure to support trade with Canada, which provides more than 230,000 jobs in Michigan, including 41,000 jobs in Oakland County.”

The new Detroit-Windsor bridge is supported by more than 175 business, labor, and community leaders and organizations representing more than 10,000 businesses and hundreds of thousands of Michigan employees.

“This is great news for Michigan and North America. To ensure our companies can compete, they need the infrastructure to connect them to the marketplace,” said Andy Johnston, vice president of government and corporate affairs, Grand Rapids Area Chamber of Commerce. “The New International Trade Crossing is a key platform for improving the flow of trade, and it will play a vital role in creating and supporting economic growth, including right here in West Michigan.”

Officials say the new bridge should boost trade between the nations while reducing congestion.

“The New International Trade Crossing expands our markets with our largest trading partner and will position Michigan as a global trade hub for decades to come,” said Paul Tait, executive director, Southeast Michigan Council of Governments (SEMCOG). “This bridge will make freight movement more efficient and give our border critical backup to expand our region’s standing in the market.”

Snyder has held several meetings in Washington this year with the Obama administration about the permit. Snyder’s office issued a media advisory Thursday saying the governor would hold a 2:30 p.m. news conference Friday to “discuss Michigan’s business climate and job creation at a growing Detroit business.”

Sandy Baruah, president and CEO of the Detroit Regional Chamber, said the Governor’s Office asked him to attend the event without detailing what would take place.

Baruah said he met with Canada’s ambassador to the United States, Gary Doer, about a month ago to discuss the bridge. He said Doer had recently returned from Washington after meeting with Secretary of State John Kerry about the permit.

“He indicated that he thought it was close and that Secretary Kerry gave him all of the positive signs,” Baruah said.

Rep. Fred Durhal, D-Detroit, recently filed a lawsuit in Ingham County Circuit Court challenging Snyder’s authority to enter into an agreement with Canada without the Legislature’s approval. After legislation authorizing a new bridge failed to get out of a Senate committee in 2011, Snyder bypassed the Legislature and signed a deal with Canadian officials last June that calls for Canada to build the bridge.

The Obama administration has backed a new Detroit bridge crossing since 2009, when then-Transportation Secretary Ray LaHood endorsed the idea, saying it would create thousands of jobs in construction and via additional trade. In January, LaHood said federal approval for the bridge crossing was expected soon.

“We’re just about over the finish line,” LaHood said in January. “They are working on it.”

Canada agreed to front Michigan’s $550 million share of the cost, which will have to be repaid through toll revenue. The Canadians also pledged to reimburse Michigan for any expenses the state Department of Transportation incurs in connecting the new bridge to Interstate 75 through a new international plaza.

The United States and Canada have the largest trading partnership in the world, totaling over $524 billion in merchandise trade in 2010. Thirty-five states have Canada as their largest foreign trade-partner, and 57 percent — $297 billion — of U.S.-Canada trade moves by truck, according to the Michigan application.

Approximately 31 percent of truck transported trade, or $91.4 billion, between the United States and Canada passes through the Detroit River area and reaches markets across the nation.

U.S. and Canadian trade supports over 8 million U.S. jobs; approximately 237,000 Michigan jobs; and 1 in 3 Canadian jobs. The Detroit-Windsor border is the busiest trade corridor on the U.S.-Canada border and the second busiest trade corridor in North America.

Michigan Leaders Praise Granting of Presidential Permit

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New International Trade Crossing Moves Forward

Washington, DC. – The U.S. Department of State issued a Presidential Permit for the construction of the New International Trade Crossing (NITC) today. The project could break ground some time in 2014 and is expected to create more than 10,000 jobs and secure international commerce with Canada, Michigan’s largest trading partner, for decades to come.

“This is great news for Michigan,” said L. Brooks Patterson, Oakland County Executive. “We need this critical piece of infrastructure to support trade with Canada, which provides more than 230,000 jobs in Michigan, including 41,000 jobs in Oakland County.”

The new Detroit-Windsor bridge is supported by more than 175 business, labor, and community leaders and organizations representing more than 10,000 businesses and hundreds of thousands of Michigan employees.

“This is great news for Michigan and North America. To ensure our companies can compete, they need the infrastructure to connect them to the marketplace,” said Andy Johnston, Vice President of Government and Corporate Affairs, Grand Rapids Area Chamber of Commerce. “The New International Trade Crossing is a key platform for improving the flow of trade, and it will play a vital role in creating and supporting economic growth, including right here in West Michigan.”

The Detroit-Windsor border is crucial to Michigan’s economic success. In 2011, trade between Michigan and Canada totaled $70.2 billion – more than 11 percent of the total U.S./Canada trade. Additionally, more than 8,000 trucks per day cross the Detroit-Windsor border. According to the Public Border Operators Association (PBOA), truck traffic is projected to increase 128 percent over the next 30 years.

“The success and growth of Michigan’s auto industry is directly tied to exporting and importing products with Canada,” said Tim Daman, President and CEO, Lansing Regional Chamber of Commerce. “The Detroit-Windsor corridor is arguably the most important international crossing for trade in the world and is in desperate need of an upgrade. The new crossing will provide secure world-class trade and transportation infrastructure, providing the long needed direct freeway-to-freeway connection to the busiest corridor between the U.S. and Canada.”

The project has received all of the necessary environmental clearances in the U.S. and Canada. The project now awaits the final approval for the U.S. Coast Guard permit as well as land acquisition.

“The New International Trade Crossing expands our markets with our largest trading partner and will position Michigan as a global trade hub for decades to come,” said Paul Tait, Executive Director, Southeast Michigan Council of Governments (SEMCOG). ”This bridge will make freight movement more efficient and give our border critical backup to expand our region’s standing in the market.”

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Michigan Chamber Of Commerce Applauds Permit Approval For New International Trade Crossing

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LANSING, Mich. – Calling it a great day for the entire state, the Michigan Chamber of Commerce today expressed optimism about the state’s economic future with the announcement that a key federal permit required to construct the New International Trade Crossing (NITC) has been approved.

“Approval of the Presidential Permit to proceed with construction of the NITC is great news for Michigan,” said Michigan Chamber President and CEO Rich Studley . “The Michigan Chamber of Commerce has been a strong supporter of the new bridge because it is an important project that will have a meaningful impact on our economic competitiveness.”

“In addition to creating thousands of direct construction jobs, the new crossing will ensure that Michigan-based businesses will have efficient and cost-effective access to markets around the globe,” Studley added.

“Governor Snyder has shown bold leadership with his plans to reinvent Michigan and the NITC is another important step to ensuring that businesses will locate and thrive in our great state,” noted Jim Holcomb , Senior Vice President, Business Advocacy & General Counsel for the Michigan Chamber. “Building the NITC is a critical improvement in our transportation infrastructure and will allow businesses of all types and sizes to compete and succeed in the global marketplace.”

The Michigan Chamber of Commerce is a statewide business organization representing approximately 6,400 employers, trade associations and local chambers of commerce. The Michigan Chamber represents businesses of every size and type in all 83 counties of the state. The Michigan Chamber was established in 1959 to be an advocate for Michigan’s job providers in the legislative, political and legal process. It is one of only six state chambers accredited by the U.S. Chamber and one of only four state chambers accredited with distinction.

SOURCE Michigan Chamber of Commerce

‘This is all about jobs for today and tomorrow’; Snyder lauds federal government’s approval of key NITC permit

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Originally posted by Governor Rick Snyder

DETROIT – Gov. Rick Snyder today welcomed federal issuance of a key permit needed to proceed with the New International Trade Crossing, a project expected to create 12,000 jobs and enhance Michigan’s economic future.

Michigan applied for the Presidential Permit on June 21, 2012, days after Snyder signed the historic NITC crossing agreement with Canadian officials. Effectiveness of the agreement was subject to approval by the U.S. State Department. The department conducted an extended public comment period before approving the permit, which now makes the Michigan-Canada agreement operative. While other steps remain before NITC construction begins, they hinged on Michigan’s ability to secure a Presidential Permit.

“This is all about jobs for today and tomorrow,” Snyder said. “This is a major construction project that is expected to create 12,000 direct jobs and as many as 31,000 indirect jobs. Getting Michigan-made products to more markets faster will enhance our economic competitiveness in the future and help our state create more jobs.

“This project is important for the future of Michigan, the United States and Canada. I appreciate the U.S. State Department’s thorough review as well as the continued support of our Canadian partners. This new trade crossing will make Michigan stronger in many ways.”

The U.S. State Department determined that the NITC will “serve the national interest” for several reasons, including its job-creation benefits, advancement of America’s foreign policy interests, promotion of cross-border trade and commerce, and added capacity to accommodate expected border traffic growth.

The NITC will be built at no cost to Michigan taxpayers and will provide a modern, strategically located bridge between Detroit and Windsor. It is supported by a broad coalition that includes business and labor. The project is vital to enhancing the $70 billion-a-year trade relationship between Michigan and Canada. It will generate thousands of short- and long-term jobs on both sides of the border, open trade markets, strengthen economic security and ease traffic congestion.

“Michigan is moving forward and the future is bright,” Lt. Gov. Brian Calley said. “We’re positioning the Detroit community and our entire state to thrive in the global economy. The NITC will open doors for entrepreneurs, farmers and manufacturers in every corner of our state. There’s still much work to be done but approval of the Presidential Permit is a significant step along Michigan’s path to prosperity. We look forward to working with the Delray community as this project progresses.”

The U.S. State Department issues Presidential Permits for the construction, connection, operation or maintenance of certain facilities at U.S. borders with Canada and Mexico. Permits are required for land crossings, bridges, pipelines, tunnels and tramways.

With the Presidential Permit in hand, next steps include naming members to the International Authority, planning for the relocation of utilities,  initiating the process for land acquisition and applying for a U.S. Coast Guard permit. The entire project will take about seven years and includes the building of interchange ramps and an inspection plaza. Construction of the actual bridge span is expected to begin in about two years.

The Federal Highway Administration granted Michigan’s request for  a Buy America waiver in December 2012, allowing for the use of American and Canadian steel in the bridge.

The NITC will be a public bridge operated by a private concessionaire. Its benefits include:

  • The creation of about 12,000 direct and as many as 31,000 indirect jobs related to construction.
  • Allowing Michigan to use Canada’s generous contribution of up to $550 million as eligible matching funds for U.S. federal aid to support the state’s highway projects.
  • A new direct connection between I-75 in Michigan and Highway 401 in Canada that eases traffic congestion at the border and allows trucks to bypass residential communities. The existing bridge at the Detroit-Windsor crossing is the No. 1 traffic bottleneck in the entire Pan-American Freeway system.
  • Reducing costs to job providers, particularly the auto industry. Estimates show that border regulations and delays now add significant costs to vehicle production.
  • Minimizing the likelihood of an economic disaster for Michigan or Windsor should one of the other border crossings sustain lengthy shutdowns.
  • Additional border-crossing capacity to meet the long-term demands of our growing economies.
  • New investment being attracted to Michigan by this modern infrastructure.

The Michigan-Canada agreement allows for the creation of an International Authority to oversee the letting of bids to privately design, develop, finance, construct and operate the NITC. The Authority will be comprised of three members appointed by Canada and three members appointed by Michigan.

Construction cost of the bridge itself – not including other project components such as land acquisition and the I-75 interchange construction, which Canada will pay for directly – is estimated at $950 million. The cost will be paid by a private concessionaire and will be repaid by Canada through tolls.

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