The Moroun misinformation campaign continues

In Matt Moroun’s latest editorial, he claims that “…the Ambassador Bridge was built and has been maintained without ever taking taxpayer assistance.”

FACT: $230 million taxpayer dollars were used on the Gateway Project that serves the congested Ambassador Bridge and the Federal Government paid to build and continues to pay to maintain the customs plaza at the bridge.

Matt Moroun Editorial:

In the latest news about the New International Trade Crossing government bridge proposal, taxpayers have learned that the proposal requires $250 million for an inspection plaza, as well as the Michigan Transportation Department’s resources for condemning land.

Unfortunately, the Detroit News editorial “Bridge fight has gone on too long” has, not so subtly, chosen to blame these government bridge shortcomings on the private sector and the Ambassador Bridge.

Our company should not be blamed for these fatal flaws. Unlike the government bridge, the Ambassador Bridge was built and has been maintained without ever taking taxpayer assistance. Our position that the government bridge is wrong-minded has not changed. It can’t even pay for itself.

Everyone has heard Gov. Rick Snyder say that his bridge does not need taxpayer money or resources. Now that it does, that is not our fault.

Also, it is not the fault of the Legislature, which has consistently restricted expenditures of money and resources for the government bridge for many years. In fact, until now, Snyder has said that he didn’t even need the Legislature in order to build the government bridge. However, this hasn’t stopped some in the media from insinuating that if a legislator does not want to spend money and resources on the NITC that it must be because of campaign contributions rather than fiscal responsibility — or even reliance on the governor’s word.

The “flip-flop” on taxpayer dollars and risk should be the story.

Matt Moroun, vice chairman,

Ambassador Bridge

Originally posted in the  Detroit News

 

Moroun campaign donations raise eyebrows in Detroit bridge vote

By Gary Heinlein

Lansing— The family whose patriarch owns the Ambassador Bridge has spent more than $1 million since 2009 in its legislative fight against a new span between Detroit and Canada.

That fight continues: Just last week, the GOP-led Senate approved a ban against state purchases of land for the bridge.

The Detroit News, using figures compiled by the Michigan Campaign Finance Network, a political watchdog group, found the family of Manuel “Matty” Moroun made political donations totaling more than $105,000 in the last five years to 18 of the 26 GOP senators who voted in favor of the New International Trade Crossing spending prohibition.

All told, Moroun and his family have spent tens of millions of dollars fighting the bridge, sought by Gov. Rick Snyder and the U.S. and Canadian governments, through a legislative blockadeand an unsuccessful 2012 statewide ballot measure. The $1 million in legislative giving includes contributions to House members and a wide variety of political committees — with the lion’s share going to Republicans and committees that support them.

The donations appear to have met legal limits and requirements.

“They are putting the interests of a billionaire campaign donor ahead of Michigan’s economy and the thousands of jobs that the bridge would bring,” said Senate Democratic spokesman Robert McCann. “I’m not sure I can think of a sadder commentary on the state of our Legislature under Republican control.”

Sen. Jack Brandenburg makes no apologies for his vote. The first-term Harrison Township senator and his Liberty Political Action Committee have received at least $10,000 from the Morouns.

“I will more than gladly let them donate to my re-election,” Brandenburg said. “I was on their side the first time I heard of (the bridge plan). I don’t think we need to spend state money on this bridge.”

Republican Snyder argues building the second span south of the Ambassador Bridge will further bolster commerce on America’s busiest international trade corridor and create more jobs for Michigan.

In response, the Ambassador Bridge owner has sought permission to build his own second span next to the existing bridge — a proposal that Canadian officials oppose.

Unable to win legislative approval, Snyder is pushing forward through an inter-local agreement he signed with the U.S. and Canadian governments. Land purchases for a customs plaza in Detroit are supposed to start this summer.

Irked GOP leaders inserted the land purchase ban into the $3.8 billion transportation budget. Under the provision the Republican majority approved with one Democratic vote, even land-buying reimbursed by Canada is prohibited.

The Ambassador Bridge and the Detroit-Windsor tunnel are operating below capacity and proponents’ projections for steadily growing cross-border traffic seem unrealistic, said Sen. John Pappageorge, R-Troy, who adds he has questioned the second bridge since it was first proposed under former Gov. Jennifer Granholm, a Democrat.

The head of the Senate’s transportation appropriations subcommittee said he has received far more campaign money from business leaders who back the new bridge than the Morouns’ combined $8,000 in campaign contributions to him and his leadership fund.

“I really rail at the idea that Matty Moroun’s contribution makes a difference,” added Pappageorge, who said he agreed to the provision written by Appropriations Committee Chairman Roger Kahn, R-Saginaw.

Kahn, long an opponent of the public bridge, has received $1,000 in direct campaign money from the Morouns, but two political funds connected to him have gotten $21,500 through the years.

But Sen. Glenn Anderson, D-Westland, said the latest effort to stifle the second bridge “is one last gasp on the part of those who are heavily influenced by the Morouns.”

“You can draw a pretty clear line between who got money and who has an objection (to the bridge),” Anderson said, noting $120 billion a year in international commerce passes across the Detroit River — most of it over Moroun’s bridge.

The transportation budget bill ultimately passed 27-11 with Democratic Sen. Tupac Hunter of Detroit joining the Senate’s GOP members in favor of it. The remaining 11 Democrats voted against it — primarily, Anderson said, because of the bridge spending ban.

How much of a problem the land-buying ban creates for Snyder is uncertain. The House’s transportation budget, also approved last week, broadly bars state spending on the bridge but doesn’t specifically target land-buying.

Snyder spokeswoman Sara Wurfel said legal advisers are reviewing the budget situation, but the governor hopes lawmakers strike it from the final bill.

Political observer Jeff Williams said Senate Republican opposition appears to stem more from political philosophy than Moroun money.

“I don’t by any means think (Matty Moroun) is buying votes,” said Williams, CEO of Public Sector Consultants in Lansing. “But he is encouraging beliefs the Senate majority already has.

“This is an issue that has no middle ground,” he added. “… They are saying repeatedly to two governors (Jennifer Granholm and Snyder): ‘We do not believe this (new) bridge is needed but if it is, it should be private.’”

Heaviest giving to Senate Republicans was in 2011 — when legislation to allow the bridge was defeated in a Senate committee headed by Sen. Mike Kowall, R-White Lake — and in 2012.

A leadership committee headed by Kowall has received at least $15,000 from the Morouns. The Michigan Campaign Finance Network also reported Kowall and his wife, Rep. Eileen Kowall, received $6,144 and $3,144, respectively, in non-monetary contributions in 2010 from the North Oakland Political Action Committee, another Moroun donation recipient.

“I don’t know the Moroun family all that well, and I’m not opposed to the bridge,” Kowall said. “What I’m opposed to is any state funds going toward it.”

Moroun spent at least $45 million on a failed 2012 ballot proposal that would have prohibited the bridge without statewide voter approval.

In late September that year, he gave $100,000 to the state Republican Party.

Spokesman Mickey Blashfield, government affairs director for Moroun’s Central Transport International Inc., said the Morouns are exercising their rights as citizens.

“They’re no different than a hockey stadium developer or anyone else,” Blashfield said. “We’re participating in the political process the way we learned in civics class.”

The Morouns’ giving, he added, “is absolutely transparent because you can look it up. We don’t have a shadowy 501(c)(4) that has paid for people in Detroit or anything like that.”

The reference is a shot at Snyder’s anonymous-donor Nerd Fund, since replaced by a fund whose contributors are more transparent. The Nerd Fund had covered some living expenses for Detroit Emergency Manager Kevyn Orr.

Michigan Campaign Finance Network Director Rich Robinson, who systematically tracks candidate and issue spending, described Moroun’s giving as a way of reinforcing his support.

“I’ve heard an explanation: ‘You can’t give me money to do something I wouldn’t otherwise do,’ and (from the donor’s point of view): ‘You know what I like, and I’m not going to give you any more unless you support me.’ ”

Originally posted in the Detroit News

Michigan needs the NITC

U.S. Rep. Gary Peters

Last week, I was honored to host Homeland Security Secretary Jeh Johnson at a roundtable in Detroit to discuss a new future for Michigan. Local leaders from business, labor and agriculture groups joined local, state, federal and Canadian officials in sharing an economic vision for Michigan. The vision is for a New International Trade Crossing (NITC) at the Detroit-Windsor Border and a revitalized customs plaza in Port Huron, as well as connecting Toronto and Chicago with new cargo and high-speed rail through Detroit. This investment and plan for Michigan’s future will make our state an international trade and logistics hub leading to thousands of new jobs.

The proposed NITC calls for a six-lane bridge spanning the Detroit River between Detroit and Windsor, enhancing a vital trade corridor by linking I-75 and I-94 in Michigan to Highway 401 in Ontario. This project will play a critical role in creating jobs throughout the Midwest and increasing U.S. exports. However, funding for a new customs plaza to service the bridge has not been secured.

Detroit is strategically located between Chicago and Toronto on an international border. Cities positioned along major trade routes have thrived and benefited by serving as a center for logistics, innovation and exports throughout history. A customs plaza at the New International Trade Crossing is the right thing to do for our economy, our state and our middle class, and that’s exactly what Secretary Johnson heard from a cross section and bipartisan delegation of our state’s economic leaders.

Secretary Johnson’s visit was important because the Department of Homeland Security is the federal agency responsible for customs plazas, and visiting Michigan and meeting our leaders helped illustrate for him how important these facilities are not just for security but for growing our economy through faster and more efficient trade and commerce. At the meeting, the Secretary noted that one of his responsibilities is “to promote lawful trade and travel.”

That is important, because Michigan’s economic future depends on one of our most important trading partners: Canada. Canada and the U.S. are the world’s largest trading partners with $710 billion in goods and services, in 2012. In Michigan, trade with Canada is directly linked to middle class jobs and the success of our state’s most important industries like auto manufacturing, agriculture, tourism and biofuels. Michigan exports $25.9 billion to Canada annually and 218,000 Michigan jobs depend on trade with Canada. Michigan sells more goods to Canada than to the state’s next 12 largest foreign markets combined.

All of this should point us to one clear focus: doing everything we can to facilitate and increase trade at the northern border. This project, as part of our overall economic plan, will boost trade, create good-paying, middle class jobs, strengthen our border security and put Michigan on a path to being an international transportation and logistics hub. We already have the strategic location and talented workforce. Now, we just need to work together to construct these important infrastructure projects.

It’s important that we act quickly, because communities near these projects are already facing the negative impacts of delayed action instead of reaping the positive economic benefits. It’s why I have taken the lead by proposing Congressional action to prioritize funding for trade crossings with the highest trade volume by value of shipments, including exports and imports. The Detroit–Windsor crossing and Port Huron crossing rank number two and four, respectively, in trade volume for land ports of entry in the United States.

I am committed to these projects because I know how important they are to our state and economy. We can make our northern border a national priority by working in a bipartisan way. Gov. Rick Snyder, members of the Michigan delegation and business and labor leaders across our state have all come out in favor of this project and my legislation.

I am very proud of the impressive presentation our economic leaders gave to Secretary Johnson last week, but I continue to be frustrated with President Obama’s lack of further commitment on this important project for Michigan. We discussed this very issue last month during his visit to our state. I will continue to showcase the incredible work force and trade capacity of our state and look forward to Michigan securing the necessary funding to build this bridge, but also to securing a stronger economic foundation for Michigan’s future.

Gary Peters, D-Bloomfield Twp., represents Michigan’s 14th District. He is co-chair of the Congressional Caucus on Canada and is running for U.S. Senate.

Originally posted in the Detroit News

Did state’s Detroit EM team use its clout to stymie Moroun bridge?

By Todd Spangler

WASHINGTON — An Ambassador Bridge official said Thursday that a member of Detroit emergency manager Kevyn Orr’s team told him last fall that the state had made it clear it did not want the city selling rights to the bridge company that could allow it to build a twin span to replace the 85-year-old bridge.

If true, the declaration made by Detroit International Bridge Co. President Dan Stamper in federal court in Washington could raise questions about whether anyone in state government used the city’s financial crisis — and the state’s intervention — as a pretext to keep a second span from being built.

State officials did not immediately return a request for comment. Gov. Rick Snyder, who appointed Orr last year as emergency manager, has been a wholehearted supporter of a rival span to be built over the Detroit River to Windsor that Ambassador Bridge officials are trying to block.

Stamper’s declaration was submitted to U.S. District Judge Rosemary Collyer, who concluded a hearing requested by bridge owner Manuel (Matty) Moroun to stop the Coast Guard from issuing a permit to let the rival New International Trade Crossing, or NITC, move forward.

She did not rule on the request for an injunction but is expected to do so in the days or weeks to come. On Wednesday, she had chided Moroun’s son, Matthew Moroun, the company’s vice chairman, for not spending enough to simply buy the rights needed for a twin span from the City of Detroit.

The written declaration submitted Thursday wasn’t immediately available, but the Ambassador Bridge’s lawyer, Hamish Hume, described it to Collyer as Stamper’s version of an Oct. 22 conversation he had with Gary Brown, a former City Council member and chief operating officer for Detroit under Orr.

Stamper said Brown told him that politics aside, an easement over Riverside Park next to the Detroit River could be sold to the bridge company but that “Lansing” — presumably meaning some person, branch or agency in state government — “had instructed the city not to sell the easement,” Hume said.

The city’s refusal to sell the Moroun family an easement to “air rights” over Riverside Park has been a key reason the Coast Guard hasn’t issued a permit for a second span rising over the park that Ambassador Bridge officials say they want to build to replace their aging one.

Bridge company lawyers argue state and federal agencies are not playing fair with their proposal, in favor of the rival NITC, which is to be paid for by Canada. As the Free Press reported, Matthew Moroun said Wednesday if the NITC gets its permit before his company does, it is “the end of the race.”

Hume said Stamper provided the declaration in response to Collyer’s questions to Matthew Moroun on Wednesday, and said lawyers hadn’t brought it up before because they didn’t want the court “to conclude we won’t get the easement” despite opposition in the city to sell it to the bridge company.

“We will get the easement. But we have to work through the politics of Detroit,” Hume said. He added that, in another declaration, Matthew Moroun told Collyer he had sent an offer of $5 million for the air rights to the city Thursday.

Asked about Stamper’s declaration, Orr’s spokesman, Bill Nowling, said he had “no information about (the) veracity of Mr. Stamper’s comments” and said only that Orr and his staff “have been focused on restructuring the city.”

Brian Collins, of the U.S. Justice Department, argued that the bridge company’s failure to get a permit has no relation to whether the NITC gets one and that, in any case, it would be premature to issue an injunction since no NITC permit has been issued. He added, however, that the Coast Guard’s requirement that private bridge owners have easements in hand before providing a permit is appropriate.

But the question of whether someone at the state could have contacted Orr’s office or the city and advised against selling the easement could be an important one, said Collyer, especially in a case like this one, where the state is party to a deal to build a rival bridge with Canada picking up the tab.

“Is that acting as a sovereign (state government),” she asked, “or is that acting as a competitor?”

Originally posted in the Detroit Free Press

Moroun seeks injunction that threatens to block DRIC bridge for years

By Dave Battagello

Owners of the Ambassador Bridge should know within a week or two whether their latest courtroom attempt to stop construction of the planned $1-billion Detroit River bridge will be successful.

The bridge company is seeking an injunction in U.S. District Court to stop the U.S. Coast Guard from granting a permit for the Detroit River International Crossing project.

Owner Matty Moroun was in attendance for the hearing Wednesday in Washington while his son Matthew testified: “this is the end of the race” for his company to stop the DRIC bridge, according to the Detroit Free Press.

“If they can get all their approvals — and this is the final one — before we do, they’ve won.”

U.S. District Judge Rosemary Collyer indicated she will hand down her ruling within days, according to the Free Press.

The Coast Guard permit is largely related to navigational purposes, whether shipping lanes are impeded or there would be wildlife impacts. It is a lesser permit compared to the U.S. Presidential permit and Canadian federal government cabinet approval which have already been granted to the DRIC project.

The bridge company has asked the court for the injunction and to put a stop construction of the looming competing crossing until all Moroun court challenges against the DRIC project are finalized.

Among ongoing court actions by the Morouns against DRIC are a NAFTA challenge, federal lawsuits on both sides of the border and state challenge in Michigan.

The implication should Collyer grant the injunction on that basis is the downriver crossing project – which will link the industrial communities of Brighton Beach and Delray – could be delayed for years.

Lawyers for the bridge company argued the Coast Guard has been treating the Morouns unfairly since they have been shut out from securing their own permit from the same federal agency for their proposed twin span.

Final approval of a Coast Guard permit for the Ambassador Bridge expansion proposal has been on hold after it was learned the company does not have all the property it requires in Detroit – namely city-owned Riverside Park – in order to start construction.

City officials in Detroit have largely favoured construction of the DRIC bridge and so far refused to sell Riverside Park to the Morouns.

The Canadian government has been anxious to launch bridge construction. It has already budgeted $630 million this year to start property acquisition in Detroit and utility relocation.

An official with Transport Canada did not wish to comment on Moroun’s court challenge in Washington.

“It’s a matter before the courts, so it would be inappropriate for us to comment,” said spokesman Mark Butler.

Ottawa has also agreed to pay the state of Michigan’s share for the project of $550 million. Along with a private partner, Canada is essentially paying full costs for the bridge and feeder roads under for the DRIC project. The federal government expects to recoup its investment through tolls.

The overall cost is estimated to be over $2 billion – with expectations Washington will fund the U.S. customs plaza in Detroit.

The U.S. Department of Homeland Security has so far not budgeted the required $250 million for the customs plaza – another holdup before construction can start.

U.S. Homeland Security Secretary Jeh Johnson is coming to Detroit on Friday to tour local border facilities and participate in a roundtable discussion on U.S- Canada border infrastructure.

Originally posted in the Windsor Star

Canada-U.S. bridge project comes under attack from rivals in American courtroom

WASHINGTON – An attempt to stall a major bridge project between Canada and the United States is now in the hands of an American judge after two days of hearings that wrapped up Thursday.

Judge Rosemary Collyer of the Washington, D.C., District Court promised to consider a request for an injunction against the project in a case she acknowledged as complex.

“This is not easy for me,” Collyer said as she concluded the hearing, promising to take her time to sort out the various components of a case she described as a mess. She did not speculate on when she might issue a ruling.

The case is the latest twist in the years-long dispute pitting political authorities against the private company that owns the existing Ambassador Bridge, the aging Windsor-Detroit structure that handles nearly one-third of Canada-U.S. trade.

The private company says its effort to build an additional span is being thwarted by bureaucratic red tape from governments in both countries, which favour the public project.

The Detroit International Bridge Co. is working to block the public project from moving forward. It claims to have franchise rights stemming from the 1909 Boundary Waters Treaty. Now it’s asking the court system to intervene before the rival bridge gets its last major U.S. permit — which would set the stage for construction to begin once it gets funding for a U.S. customs plaza.

It’s seeking an injunction that would stop the U.S. Coast Guard from issuing a key permit for the New International Trade Crossing, which would be built almost entirely with Canadian public money.

The very notion that Canada was funding the project drew some barbs from the judge Thursday. She appeared to question how a bridge paid for by a foreign country could claim to have eminent-domain rights and expropriate private homes on the Michigan side.

“(The State of) Michigan can exercise eminent domain with Canadian money?” she asked rhetorically.

“It’s going to be a Canadian bridge. We think of it as the Detroit-Windsor bridge. It’s really the Windsor-Detroit bridge… Michigan doesn’t have any blood in this.”

A day earlier, Collyer essentially brushed off the Canadian legal representation in the courtroom, suggesting they had no business being involved.

“To be perfectly frank, I was astonished that Canada thought it needed to jump in,” the judge said. “Why don’t we not worry about Canada right now?”

The court was then shown slides demonstrating a drop in traffic since the 1990s on the Ambassador Bridge, amid the decline in manufacturing over the last decade.

It only makes sense to build a new span if there’s no rival bridge eating away at toll revenues, said Matthew Moroun, the son of bridge baron Matty Moroun.

If the public project goes ahead, there’s no economic case for a new private Ambassador span, the younger Moroun said in an interview outside the courtroom.

The company resents having to spend at least $22 million per year to maintain the old bridge when it could be completing a twin span right now, in order to be able to shut down the existing one for major repairs, he said.

“We’d like to build our twin span. We’ve been trying to build it for 10 years. The governments have been blocking us for 10 years,” Moroun said.

“We’re throwing money into costly repairs that we could be throwing into a brand new bridge.”

Moroun acknowledged why governments would want their own bridge in such a vital trade corridor. But the Ambassador has done a perfectly good job for more than 75 years, he argued.

“And we haven’t used any taxpayers’ money, either.”

Roy Norton, Canada’s former consul-general to Detroit, estimated that the Morouns would lose about $30 million in toll revenues each year should the new crossing be built.

They have consistently tried to derail the project, but likely won’t succeed, Norton predicted.

“It’s a rational economic decision — if not a very public-spirited one — to invest a chunk of that $30 million in trying to perpetuate the monopoly.”

From the Global Post

Homeland Security chief to visit Michigan to discuss border security

By Todd Spangler

WASHINGTON — U.S. Rep. Gary Peters said today U.S. Homeland Security Secretary Jeh Johnson will visit Michigan in the near future to discuss security along the Canadian border — and the prospects for a new customs plaza at a proposed Detroit River bridge.

Peters, D-Bloomfield Township, said Johnson accepted his invitation to visit Michigan to discuss “the importance of constructing proposed customs plazas at high-volume trade crossings like the Detroit-Windsor border.”

Peters sponsored legislation to devote funding to high-volume border crossings like the one at Detroit. The Canadian government has promised to pay for the majority of a new bridge between Detroit and Windsor but supporters say the federal government’s refusal to commit to paying to build a new customs plaza on the American side has been a hold up for the project.

The Free Press has reported that a new customs plaza for Detroit — costing as much as $250 million — would have to leap in front of other projects around the U.S. in order to get built. Johnson’s support could be key to making that happen.

Peters said Johnson accepted his invitiation but has not yet said when he might visit Michigan.

“I look forward to welcoming Secretary Johnson to our great state so that we can have a productive discussion about constructing and expanding customs plazas at critical sites like the New International Trade Crossing,” Peters said. “Canada remains one of our most important trading partners, and projects like these will expand our international cooperation and commerce and create thousands of jobs here in Michigan.”

Peters’ legislation could also help funding for a customs plaza expansion needed at the Blue Water Bridge in Port Huron, he said. So far, the Republican-controlled House has yet to schedule a hearing on Peters’ bill, though that legislation could also run afoul of executive branch agencies, like Johnson’s, which want to decide which projects deserve funding first.

The proposed New International Trade Crossing calls for a six-lane bridge spanning the Detroit River between Detroit and Windsor. The Canadian government has agreed to fund construction and land acquisition of the $2.1-billion project to be repaid by tolls.

Originally posted in the Detroit Free Press

 

MP: Future Hinges On DRIC

By Trevor Thompson

Chatham-Kent-Essex MP Dave Van Kesteren thinks the new border crossing in Windsor is key to the economic future of the riding.

Van Kesteren says with the bridge comes a shift in what southwestern Ontario produces. “I would like to see some expansion in the greenhouse industry. It’s done very well in Leamington,” says Van Kesteren. “Chatham-Kent has more water, more electricity and more natural gas. They’re a little further south, but not so much that we can’t compete in that area.”

Van Kesteren says trade will change when the bridge is completed, easing access to the huge U.S. market.

Originally posted in Blackburn News

U.S.-Canada Bridge Funding at Risk

By Alistair MacDonald and Matthew Dolan

In a potential blow to a project that would speed traffic over one of the world’s busiest trade routes, the Obama administration is holding back financial support for a customs plaza that is key to the future of a proposed international bridge linking Detroit and Windsor, Ontario.

Canada has already pledged to provide or guarantee private funding for most of the project’s expected $3.65 billion cost, including $550 million for a link between the bridge and U.S. Interstate 75. The Obama administration approved construction of the bridge last April, and Ottawa expected Washington to contribute $250 million to build the plaza, without which the bridge wouldn’t be viable.

The bridge has support of Michigan’s Republican governor and its two Democratic senators, among others in the state’s congressional delegation. But U.S. officials say that there are limited infrastructure dollars and competing projects and that private money can step in on this bridge.

“We are increasingly concerned that the administration, by way of inaction, will stand in the way of this national infrastructure project,” said Sandy Baruah, president and chief executive of the Detroit Regional Chamber, a business group.

Canada continues to work under the assumption that the U.S. will fund the customs plaza and has heard nothing from the White House to suggest otherwise, said Roy Norton, a Canadian diplomat who until earlier this month was consul general in Detroit.

But U.S. Customs and Border Protection and the General Services Administration have told a group of seven Michigan congressional members and the Canadian government that their agencies don’t have resources available to build the plaza, according to a February letter by those members.

More recently, several administration officials have told Canadian counterparts that Canadian—or private—money should replace the $250 million that Washington was set to spend on the customs plaza, according to people familiar with the matter. The Obama administration argues that those private funds can be recouped through toll revenue, according to a White House budget official. Canada, though, is struggling to accept that U.S. funding may not come, said another person.

Mr. Norton said asking private investors for more money could put them off investing, given that Canada has already talked to them about the $1 billion the current plan calls for them to invest. Canada is talking to the U.S. about ways to spread its $250 million over a number of years, he said.

“Clearly the United States government is responsible for paying for its own Port of Entry and customs plaza,” said a spokeswoman for Lisa Raitt, Canada’s Minister of Transport.

The potential knockback comes at a time when relations between the U.S. and its biggest trading partner, Canada, are already being tested by the yearslong approval process for the Keystone XL pipeline supported by Prime Minister Stephen Harper’s government.

More than $130 billion of trade flowed through Detroit into Canada in 2012, the second largest cross-border flow after Laredo, Texas, and Mexico. A new crossing at the Windsor-Detroit border has long been a top priority for Canadian policy makers despite a legal challenge from the owner of the competing Ambassador Bridge.

Canadian exporters complain the current congested span costs the economy billions of dollars in delivery delays and increased compliance burdens.

Lack of U.S. funding for customs plazas has stymied similar projects along its borders. The president’s current budget includes $420 million that could be spent on customs plazas, but the General Services Administration listed only border stations in California and New York, not the proposed bridge in Michigan. A GSA spokesman said Wednesday the agency is working on the issue.

A Transportation Department spokeswoman said money is still being spent on new infrastructure and the department continues to “work with other agencies to move the project forward.”

Michigan officials have ramped up pressure on the White House in recent months.

“We risk further hampering international trade if border capacity is not increased to meet projected growth,” the congressional members wrote in the February letter. Rep. Gary Peters, a Democrat who represents parts of Detroit and its suburbs, introduced a bill that would fund the plaza.

Write to Alistair MacDonald at alistair.macdonald@wsj.com and Matthew Dolan at matthew.dolan@wsj.com

Originally posted in the Wall Street Journal

Editorial: Michigan must keep pushing for new bridge

Obama’s budget, lawsuit latest hurdles

Having failed to stop Gov. Rick Snyder from pursuing plans for the New International Trade Crossing with battles in Michigan, Ambassador Bridge owner Manuel Moroun has now turned his efforts to Washington, D.C.

Unfortunately, the nation’s capital apparently is proving more fertile ground. Michigan’s members of Congress — from both parties — need to rise up and see to the state’s needs by insisting on federal support for the project.

Moroun, many will recall, succeeded in keeping the Michigan Legislature from approving the New International Trade Crossing, the proposed new span linking Canada and Michigan.

The new project is so desirable to the Canadians that they’ve pledged to loan Michigan the money needed for its share of construction costs and will take payment from proceeds of tolls. Snyder, undeterred when the Legislature refused to support his plan, went around it and kept the project moving with his executive powers, getting federal transportation officials on board.

The Moroun family, owners of the Detroit International Bridge Co., which operates the Ambassador Bridge, then funded a ballot proposal that would have amended the state charter to make building of a bridge with any government support unlikely. Michigan voters resoundingly defeated that.

Now Moroun fights in Washington, and is seeing some success. Most recently, President Barack Obama’s latest budget proposal failed to include funds for the U.S. Customs plaza that is needed as part of the bridge project. And late last week, Moroun asked a federal judge to block the U.S. Coast Guard from issuing a permit that would be needed before construction of a new bridge, arguing that his company’s franchise agreement prohibits any competing span.

The problem there is that the Canadians have turned down Moroun’s plan to put a second span adjacent to his existing bridge. So if the U.S. wants to improvement in crossing delays and national security, NITC is needed. Canadian officials say that one-quarter of all trade between the two nations passes through Detroit and Windsor, the busiest crossing between the nations. Economic development officials project the new bridge could help add 66,000 additional jobs to the state. It’s in the best interests of all but Moroun to have a new bridge. Michigan’s congressional delegation must tackle this challenge.

Originally posted by the Lansing State Journal