It appears we have a deal

Detroit-Windsor bridge plaza deal expected within days

David Shepardson, The Detroit News

U.S. and Canadian officials are expected, as early as Wednesday, to announce a deal to pay for a U.S. Customs plaza at a new bridge linking Detroit and Windsor, American and Canadian officials briefed on the plan said Tuesday.

The issue is one of the largest lingering hurdles for the $2.1 billion bridge over the Detroit River. The deal is expected to include a commitment by the Obama administration to staff and equip the plaza, which is estimated to cost between $250 million and $300 million.

The Canadian government has offered to fund construction of the bridge and be repaid for the U.S. share through toll revenue. The public-private partnership overseeing the bridge is expected to announce it will pay for construction of the customs plazas on both sides of the border and that the United States will staff, operate and maintain the customs plaza in Detroit.

It was not clear Tuesday how much the U.S. government will contribute.

The Detroit News first reported this month that an agreement was close after several months of talks. Homeland Security Secretary Jeh Johnson told The News that a deal between the two countries on funding the customs plaza was close.

The publicly financed bridge is scheduled to be built two miles south of the privately financed and operated Ambassador Bridge.

Gov. Rick Snyder’s spokeswoman, Sara Wurfel, didn’t comment Tuesday on any deal. But she reiterated “how strongly we feel about what a critical infrastructure project this is for the state of Michigan, the city and region, our country and Canada.”

“Discussions are ongoing between Canada and the United States. Transport Canada will not speculate on the outcome of the ongoing discussions,” said Transport Canada spokesman Mark Butler.

In January 2004, a joint U.S.-Canada study concluded that additional border-crossing capacity was needed for reasons including increasing traffic volume, economic security and national security concerns. The State Department approved a permit for the new bridge in 2013.

Manuel “Matty” Moroun, who owns the Ambassador Bridge, has been fighting efforts by Michigan and Canada to build the bridge, insisting it will harm the Ambassador’s business. In court filings, the company argued it needs to build a second span across the Detroit River to handle traffic while it repairs the Ambassador so it can compete with the publicly financed bridge.

U.S. Sen. Gary Peters, D-Bloomfield Township, said Saturday negotiations have centered on the Canadians fronting money for construction of the plaza and then be repaid by tolls.

“My focus right now has been to ensure that … when the plaza is built that it is fully staffed” with customs and border patrol agents, Peters told The Detroit News.

He expressed frustration that the Obama administration and Congress have resisted appropriating tax dollars toward building the customs plaza to be “a partner in this border crossing.”

“To me, it’s an embarrassment to the United States government,” Peters told The News.

Staff Writer Chad Livengood contributed.

Originally posted by The Detroit News

Hiring begins for Detroit-Windsor bridge project

By John Gallagher, Detroit Free Press

In January, the Windsor-Detroit Bridge Authority, a nonprofit Canadian entity that is leading the bridge project, sought applicants to fill a range of staffing jobs

The early organizational work for the planned new bridge between Detroit and Windsor appears to be speeding up.

In January, the Windsor-Detroit Bridge Authority, a nonprofit Canadian entity that is leading the bridge project, sought applicants to fill a range of staffing jobs in administration, communications, information technology, human resources, policy analysis, accounting and finance, engineering, operations and legal.

Michael Cautillo, president and CEO of the bridge authority, said more job postings would be published as operational needs are identified.

A Windsor recruitment firm has been retained to assist with the hiring process. Candidates interested in working with the project should apply online at thejobshoppe.com.

And just this past week, the bridge authority announced it had awarded a significant engineering contract worth $17 million to Parsons to serve as the general engineering consultant for the project, which is known by two names — the Detroit River International Crossing (the Canadian title) and the New International Trade Crossing (the title that Michigan Gov. Rick Snyder prefers).

Much remains to be done, including land acquisition in Detroit’s Delray neighborhood and — perhaps the thorniest issue — resolving who will pay to build the U.S. Customs and Border Protection plaza on the Detroit end of the bridge. The U.S. government, which will operate the plaza, has so far balked at paying for it, a cost that could total somewhere in the $250-$300 million range depending on the scope.

But as this month’s moves by the bridge authority show, the project is moving forward.

“This is an important milestone for the Windsor-Detroit Bridge Authority,” said Mark McQueen, chairman of the Windsor-Detroit Bridge Authority, said of the selection of Parsons last week. “With the selection of the general engineering consultant, the WDBA is able to move forward in the development of the (bridge) project. Parsons and their team will work closely with the border inspection agencies, Michigan and Canada as we design and eventually build the new crossing, highway interchange and inspection plazas.”

A California-headquartered firm, Parsons operates offices in 28 nations, including an office in Southfield. Parsons is a recognized authority on bridge design and has worked on Canada’s Highway 407 in Toronto and bridge projects in Ohio and Indiana as well as the John James Audubon Bridge in Louisiana — the longest cable-stayed bridge in the western hemisphere.

Under its six-year contract, Parsons will perform a range of engineering services including project management, engineering studies, technical design, utility relocation and development of the specifications for all components of the crossing project on both sides of the border.

Parsons has assembled a team of sub-consultants to support their work, including Hamilton Anderson Associates of Detroit. The majority of the team will be working out of the WDBA offices in Windsor. The firm will also be hiring local professional staff to assist with the project.

Still to come: Selection of a team of companies that will actually design and build the bridge.

Canadian officials have said that the disagreement over paying for the U.S. Customs plaza will not hold up the construction of the bridge, which is scheduled to open in 2020. The moves in January by the bridge authority show they mean business.

Originally posted by the Detroit Free Press

Most hurdles in way of bridge have been overcome

The struggle has taken years, but most of the hurdles in the way of a new Detroit River bridge have been overcome. Agreements have been signed; the site chosen, environmental and presidential permits issued.

True, Washington has yet to appropriate the $250 million needed for a customs plaza, and Matty Moroun, the 87-year-old owner of the Ambassador Bridge, is still having attorneys file a seemingly endless procession of nuisance suits.
However, few think these are serious concerns. But there is one more solution yet to be worked out: Making things right for the people in the old Detroit neighborhood where new bridge’s American footprint used to be, a neighborhood known as Delray,

“We aren’t asking for swimming pools or anything outrageous,” said Simone Sagovac, the voice of a group called the Southwest Detroit Community Benefits Coalition. “We are concerned with things like air quality, noise abatement and jobs,” she said.

Her concerns aren’t surprising. Detroit has a long history of trampling over and ignoring community groups when major developments are on the table.

Earlier this summer, for example, Detroit City Council refused to require a community benefits agreement of any kind in connection with the new hockey arena being built by Olympia Entertainment, owned by the Ilitch family of Little Caesar’s Pizza fame.

That was case even though the bankrupt city “sold” the land to the billionaire, for a dollar. But when it came to the bridge project, Detroit Emergency Manager Kevyn Orr offered the city a better deal in July: He wanted the city council to sell 301 city-owned parcels of land in and around where the American-side the “footprint” of the new bridge would be. This time, however, Detroit would get $1.4 million.

While the land would technically be sold to the state, the money is actually being put up by the government of Canada, which is covering all Michigan’s costs. (Those funds are to be repaid years from now, out of the state’s share of the new bridge’s toll fees.)

But at the last minute, the emergency manager pulled back the request, after it became clear that city council wasn’t ready to approve it. Why? For the first time in a century, most council members are elected from districts, rather than at large.

Raquel Castenada-Lopez is the newly elected council member from the district that includes both bridge sites. Detroit’s first-ever Hispanic councilwoman doesn’t want the land transfer to go through without some guarantee of benefits for those living there.

“For me, it is all about supporting the community,” she told me last week. Back in the neighborhood, Simone Sagovac is trying to look out for people who have had a long history of hard times.

Before the Great Depression, Delray was a thriving Hungarian-American community with nearly ten times the 2,783 people it had in the last census. Gradually, factories closed and people left. Gangs, crime, and foul smells from a wastewater treatment plant drove more people away.

In recent years, even if anyone had wanted to help develop the area, talk of a new bridge — and uncertainty about where the precise “footprint” would be — would have been enough to drive them off.

Canadian diplomats are eager for these concerns to be satisfactorily addressed, but have to walk a fine line. They do not want to be seen as criticizing America or meddling in domestic policy.

On the other hand, they want to see justice done — and most of all, they want to get on with the bridge, which will open in 2020 at the earliest. Last year, then-Canadian Consul General Roy Norton told the Southwest Detroit Business Association Canada would insist that the public-private partnership that will build and run the bridge “establish and maintain mechanisms to understand and address community concerns.”

Eventually, he added, when companies bid to get the contract to actually build the bridge, they will have to explain “how they would reach out to the community, be a good neighbor, employ locally and so forth.” Plus, explain “what kind of community outreach the consortium would be undertaking so as to minimize detrimental impacts for items such as vibration, noise, traffic routing …”

To Sagovac, that all sounds good in theory. But Norton has now gone off to another post in Chicago, and in any event, she has to deal with local and state governments in this country. She knows all about noise and air pollution. She doesn’t actually live in Delray, but for the last 23 years, has lived near the Ambassador Bridge, where trucks can sometimes be stacked up for hours, belching fumes and keeping people awake with their engines.

Her coalition is not against a new bridge, she hastens to say. In fact, they have no use for Moroun, who once panicked Delray residents by having phony eviction notices put on their homes.

They just don’t want their tough lives to get any tougher. A well-placed source in Canada said he could “understand why folks in Delray have difficulty summoning trust.”

But they added that “patience, faith and trust all are called for here.” The worry is that somehow, misguided zeal on behalf of the residents could cause Detroit City Council to stall a project vital to the business interests and future economies of both nations.

Last month, Sagovac asked for a meeting with the newly appointed International Authority which will oversee the construction of the new bridge. She is still waiting for an answer.

Detroit City Council is expected to be finally formally asked about transferring the land, presumably sometime this month.

The key to the future may lie in what happens then.

Written by Jack Lessenberry in the: Traverse City, Record-Eagle

Customs plaza for new Detroit bridge hits a roadblock on federal funding

By Todd Spangler
Detroit Free Press Washington Staff

WASHINGTON — What Buffalo needed in 2011 to move ahead with a decade-long plan to twin the Peace Bridge into Canada was a financial commitment for $250 million from the U.S. government to pay for a bigger, better customs plaza on the New York side.

It never came.

In Port Huron, a customs plaza expansion project to reduce backups at the Blue Water Bridge began in 2002. More than 100 homes and commercial properties were demolished to make way. But as of last year, the federal government said it didn’t have the $145 million needed to finish the work — and officials there continue to wait.

In Lewiston and Alexandria Bay, N.Y.; in Dunseith, N.D., and in Brownsville, Texas, customs plaza projects at border crossings have been stalled for years due to lack of federal funding. Budget cutbacks, changing priorities and an overwhelming need at high-traffic Mexican crossings have shifted political attention, overwhelmed annual appropriations and sapped congressional will.

Those fiscal realities are becoming clear to supporters of the proposed New International Trade Crossing in Detroit. While they remain publicly optimistic about securing U.S. funding for a new $250-million customs plaza — a commitment Gov. Rick Snyder identified as key to moving forward with the project — their chances of doing so in the short term are murky at best. To get funding, the NITC will have to jump ahead of others that have been in line a lot longer than Detroit.

“It becomes a battle for who has more clout to go after what limited funds there are from the federal government,” said Z. Kris Wisniewski, with the Eastern Border Transportation Coalition, a group that works on U.S-Canada border issues.

Which may be another concern for supporters of the NITC. On the Democratic side, Michigan’s clout is waning somewhat, with U.S. Sen. Carl Levin and U.S. Rep. John Dingell of Dearborn — two of the state’s most powerful boosters — leaving at the end of the year. So far, it has fallen to U.S. Rep. Gary Peters, a Bloomfield Township Democrat, to propose legislation funding the customs plaza, though it’s not likely going far in a Republican-controlled House.

New heads of Homeland Security and Transportation could add to the confusion. And a new U.S. ambassador to Canada has not yet been confirmed.

Republicans in the Michigan delegation, meanwhile, have been silent on the funding so far. Except, that is, for U.S. Rep. Candice Miller, a Harrison Township Republican, whose district includes the Blue Water Bridge and who has been trying to get funding for it for years.

“Here’s the thing,” she said. “I have never taken a very hopeful position about the NITC because I represent the Blue Water Bridge. We have no money for a plaza. … The Canadians have built their plaza. They keep looking at us like, ‘What? Come on!’ ”

Limited funds available

It’s not that the federal government doesn’t fund Customs and Border Protection (CBP) facilities. Last week, the General Services Administration (GSA) revealed as part of President Barack Obama’s budget request a list of three border stations — two along the Mexican border in California and a third long-standing project at Alexandria Bay in New York — which could split $420 million.

Michigan officials, meanwhile, seemed satisfied that CBP, part of the Homeland Security Department, asked for $486 million for unspecified construction and facility maintenance, though much of that goes to smaller projects if Congress agrees. Most of the larger stations, including Detroit’s, are owned or leased by the GSA.

Dan Tangherlini, head of the GSA, told the Free Press last week that his agency and the Departments of State and Transportation are working to assuage the concerns of Canadian officials who have promised to pay the lion’s share of the $2-billion bridge, even without an outright commitment.

But to eventually get funding, officials must confront a network of border stations and customs plazas with vast needs.

In three of the last four years, there has been no funding at all for GSA’s customs plazas. CBP refused to release a list of priority projects it compiles each year with GSA, but the roster is known to be in the dozens. Wisniewski’s group said that along the northern border with Canada — America’s biggest trading partner — at least nine crossings are initial priorities, where traffic delays can cost millions in lost production.

Detroit’s project — with ground not broken and a new bridge years in the future — isn’t believed to be on the list, a situation Ron Rienas, general manager at the Buffalo and Ft. Erie Public Bridge Authority, can identify with.

Over 11 years, he said, Peace Bridge officials wrestled to get federal clearances for their project, the vast majority of which would be paid for by the authority. But when it became clear in 2011 that no federal funds would be coming in the near future, the authority adopted a more modest proposal.

Last month, it unveiled a program allowing U.S. customs officers in Canada to pre-inspect trucks entering the U.S., and it is getting by with a less robust plaza expansion itself.

“The bottom line is that the northern border projects, the large ones — Port Huron, Buffalo, Lewiston, Alexandria Bay — are all in the same boat,” Rienas said.

“There’s no point beating our heads against the wall.”

A matter of fairness

A commitment to the NITC plaza may seem a minuscule point in a project worth billions. But it’s not.

The Canadian government is moving ahead with plans to purchase land needed for the bridge, which is perhaps the No. 1 infrastructure project in the pipeline as far as that nation’s priorities. In Michigan, the project enjoys widespread support among elected officials and businesspeople who expect it to spark development and put thousands of people to work.

It also will serve as an important trade link between the two countries, especially for the region’s dominant automobile industry, which sends parts back and forth across the border as vehicles are assembled.

For many in Canada and the U.S., the NITC is seen as a way to bypass the existing Ambassador Bridge and bottlenecks on the Canadian side of the Detroit River. But finding a company that would design, build and run the new bridge — and pay back the Canadian investment — gets potentially more difficult when there is uncertainty about who is on the hook for the customs plaza.

“The major step that would be taken later this year or early next would be to summon bids from consortia that would finance, build and maintain the actual span. Their investment will be recouped by toll revenues,” said Roy Norton, Canada’s counsel general in Detroit. “If by early ’15 there hasn’t been that signal (that the U.S. will pay for the customs plaza), it could cause delay.”

And delay means lost revenue for the vendor to begin recouping its investment.

Gov. Snyder has called it a matter of simple fairness that the federal government pay for the customs plaza. No one at CBP responded to questions about whether they view it the same way.

The case for Detroit

Detroit is often referred to as the busiest trade crossing in North America, but it’s not. Not anymore.

According the federal Bureau of Transportation Statistics, in 2009, it fell below the crossing at Laredo, Texas, in terms of the value of shipments across the border. As of 2012, it remained No. 2.

Generally speaking, that may help explain the billions that have been spent improving customs plazas and crossings along the southern border, where there are dozens of priority projects: At San Ysidro near San Diego — the busiest border crossing in the U.S. with 20 million vehicle passengers a year — $323 million has been committed to a huge expansion, and another $217 has been requested.

This year, Congress funded San Ysidro and another project, for $62 million, in Laredo.

But businesspeople along the southern border say they’ve run into the same problem keeping up with demand for new facilities and, maybe more important, staffing. Monica Weisberg-Stewart, a shopkeeper in McAllen, Texas, who works with the Texas Border Coalition, said the group was finally able to convince Congress to allow five pilot projects for which municipalities or businesses will provide funds for staff and infrastructure.

All five are along the southern border, which raises the politically thorny issue of having a newly announced project leapfrog others already in the pipeline.

“It all deals with money and the lack thereof,” said Weisberg-Stewart. “There’s a long line, and people who were supposed to be funded before had their money stalled. You’d have other states extremely upset (if another project got that funding).”

Detroit, the thinking goes, is different: a huge new bridge, with the Canadian government picking up most of the tab, securing one of the most vital trade crossings in the world.

Norton, Canada’s representative in Detroit, is leaving for a similar post in Chicago soon but says he will keep an eye on the NITC. He said there is “plenty of time down the road” to get funding. What he’s looking for now is something more of a promise than a guarantee.

“To be sure, money’s tight. It’s tight in Canada, too,” he said. “But this is the most important border crossing” with America’s “best customer.”

“An offline commitment that they take responsibility for the customs plaza would be enough for us,” he said. “We’re prepared to take the government of the United States of America at its word.”

Originally posted by the Detroit Free Press

Obama administration’s budget package includes $482 million for new infrastructure for U.S. ports of entry

Obama fails to include money for DRIC bridge in proposed U.S. budget

The Windsor Star
Dave Battagello

Canada’s Consul General Roy Norton believes the new Windsor-Detroit bridge remains on target for a 2020 opening, despite disappointing news that U.S. President Barack Obama has no money earmarked for a customs plaza in his proposed budget.

“Ideally you wanted to see the president designate something to this border crossing, but he didn’t do that,” said Norton, a major backer of the Detroit River International Crossing project. Supporters were hoping $250 million for a U.S. customs plaza would be mentioned in the White House budget under the Department of Homeland Security.

Norton pointed out how Obama’s proposed $4-trillion spending package unveiled Tuesday does include $482 million of new infrastructure money for all U.S. ports of entry. He said he is hopeful the DRIC project will be in play as Congress moves forward on actual budget decision making which has to be completed before October 1.

“There is money in the budget so Congress can play with that number – even increase it if they want. They can designate some to the (DRIC). You do not need the full amount in one year – it only has to be there by the time the bridge opens.

“I’m certainly not discouraged. Some of those funds could be used for DRIC. Now you will see six months of back-and-forth and jockeying.”

Norton expects property acquisition to start within weeks and the project put out for bid to the private sector before the end of this year.

“So far, that’s the timetable and nothing has happened to knock us off that,” he said.

Mark Butler, spokesman for Transport Canada, said Canada will continue on with the process.

“We are hopeful that the U.S. government will ultimately fund the Port of Entry and meet its obligations in this binational partnership to build a new crossing at one of North America’s most important gateways,” he said.

Canada is essentially paying full costs for the bridge and feeder roads under for the DRIC project – estimated to be over $2 billion – with expectations Washington will fund the U.S. customs plaza in Detroit.

The budget still requires political approval in Washington sometime before this fall.

Canada’s Transportation Minister Lisa Raitt is scheduled to travel to Washington for a conference on March 25 when she is also expected to meet with her counterpart, U.S. Secretary of Transportation Anthony Foxx. The DRIC bridge is anticipated to be prominent among discussions, federal officials said.

Congress still remains in position to find funds for the DRIC customs plaza in Detroit before budgets are finalized, said local MP Jeff Watson (C – Essex).

“While it would have been a good sign, not having this in the budget does not mean a lot to me,” he said. “There are plenty of other mechanisms for Congress to fund this project.

“What you need to see is for someone to champion this in both the House and Senate sides because you need measures passed in both. With the stage this project is at there is still time for Congress to make decisions, so I’m not overly concerned. I think at this point the next set of discussions has to include members of Congress.”

Meanwhile, there was disappointment expressed by political leaders across the border that DRIC bridge funds were not budgeted by the Obama administration.

“I am disappointed the president’s budget has failed to fund one of the most critical infrastructure projects for Michigan and the U.S. economy, a new customs plaza at the Detroit – Windsor border,” said U.S. Rep. Gary Peters (D – Detroit).

“The Detroit-Windsor crossing is one of the busiest and the most important in North America and this infrastructure project is a critical priority for our economy and export capability.”

The decision comes just days after a joint letter was issued by Michigan’s top federal politicians to Obama – including Peters – urging him to not only supply funding for the customs plaza, but also appoint a “senior” White House leader to ensure the downriver Windsor-Detroit bridge soon gets built.

The two-page letter from the Michigan contingent was also signed by U.S. Senators Carl Levin and Debbie Stabenow, plus Congress representatives John Dingell, John Conyers and Sander Levin. They described the DRIC bridge as being “vital to our nation’s security and economic future.”

Despite the budget snub, Peters called on the Obama administration to work with Congress, plus government leaders in Michigan and Canada to move the bridge project forward.

“The decision to not prioritize this project in the budget was a grave oversight, but we can continue to work together to make this customs plaza a reality,” he said. “I look forward to working with Governor (Rick) Snyder and members of the Michigan delegation to prioritize the (DRIC bridge).”

Having some new money on the table for U.S. customs infrastructure is a good sign, said a spokesman for Snyder.

“Gov. Snyder is pleased with the funding proposal,” said Ken Silfven. “We’ll continue working with Congress and the White House to secure the necessary funding for construction and improvements along the northern border, in both Detroit and Port Huron.

“Investing in customs plaza infrastructure will boost trade volume and efficiency, so the recommended funding is a positive development and we look forward to further dialogue with our federal and Canadian partners.”

Originally posted by The Windsor Star

Podcast: Consul General Roy Norton the New International Trade Crossing (Part 2)

Canada’s Consul General, Roy Norton, sat down with Windsor Morning to talk about the New International Trade Crossing and the importance of a new border crossing between the U.S. and Canada.

Click here to listen to the second part of his interview.

Podcast: Consul General Roy Norton the New International Trade Crossing (Part 1)

Canada’s Consul General in Detroit is about to leave for a new post, but before he departs, he sat down with Windsor Morning to talk about the New International Trade Crossing, Matty Maroun and why he’ll be paying close attention to Barack Obama’s budget.

Click here to listen to the podcast.