Michigan Leaders Praise Granting of Presidential Permit

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

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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New bridge to Canada gets presidential permit

By Paul Egan and Todd Spangler
Detroit Free Press Staff Writers

LANSING – The presidential permit for the New International Trade Crossing has been approved, and the announcement will be made today in Detroit by Gov. Rick Snyder, the Free Press has learned.

Jeff Holyfield, a spokesman for Snyder, said the governor will be in Detroit today for an economic development announcement, but he would not confirm the news about the presidential permit.

“We’re not saying anything at this time about that one,” Holyfield said.

But sources close to the development confirmed to the Free Press that the permit for the bridge project would be announced today. One source, speaking on condition of anonymity, confirmed that the U.S. State Department had signed off on the permit Thursday and notified ambassadors for both countries and Snyder.

The Windsor Star, citing anonymous sources, first reported the development Thursday evening.

Officials have been invited to a news conference in Detroit this afternoon, but the announcement was being kept close to the vest, even among the proponents for the new crossing.

One supporter who has worked closely with the project received an invitation to an event with the governor at 2 p.m. today — “a press conference occurring Friday afternoon regarding Michigan’s economic future” — with no mention of the long-awaited bridge.

The event is at James Group International, a company that does packaging, freight forwarding and warehousing and has been a supporter of the new bridge. In 2011, John James, chairman and CEO of the company, called the building of a new bridge “a tremendous growth opportunity.”

This permit for the bridge is one of the last steps required before construction can begin on the new bridge. The State Department signs off on all international crossings, but this one took longer than some expected; it was applied for last summer.

Last week, a State Department official told the Free Press that the department had received about 15,000 comments on the proposed crossing.

Snyder signed an agreement with Canada to build a public bridge across the Detroit River after the Legislature wouldn’t approve the plan. The Canadian government has offered to pay Michigan’s $550-million share of the $2.1-billion overall cost of the NITC bridge.

The development is opposed by Ambassador Bridge owner Manuel (Matty) Moroun, who has filed a lawsuit in federal court in Washington, D.C., to block the project.

Hamish Hume, the lawyer for the Moroun family’s interests in Washington, said Monday that if a presidential permit was issued while they were seeking an injunction to block it, Moroun’s bridge company would — as soon as possible — file an expedited motion with the U.S. district judge hearing the case in Washington.

The Detroit International Bridge Co. is arguing that the process by which the permit for a new border crossing can be issued is unconstitutional because when Congress gave the State Department that power in 1972, it did not outline a specific principle to apply when deciding such cases.

Also, the bridge company argues that because it was created by legislation in both Congress and the Canadian Parliament in 1921 — predating the 1972 bridge act — it would take legislation in both to allow a rival bridge to be built.

New Detroit-Windsor crossing reportedly to be announced today

By David Shepardson and Chad Livengood
The Detroit News

A presidential permit is moving forward for a new Detroit River bridge crossing, a decision that is expected to be announced as early as today that clears a last hurdle in constructing the $2 billion project.

A congressional aide briefed on the matter said Gov. Rick Snyder is expected to announce the approval from President Barack Obama today, and said the State Department has scheduled a telephone briefing for members of Congress.

Tom Shields, spokesman for the Coalition Supporting the New International Trade Crossing, said late Thursday that Snyder’s office invited him to attend a news conference today at the James Group International on West Fort Street, near the site of the new bridge, without saying what would be announced.

“I’m planning on being there and hopeful that it’s good news (for the bridge),” Shields told The News.

The Windsor Star reported late Thursday that Snyder will be joined at the news conference this afternoon by Canadian officials to announce the State Department presidential permit has been approved for the bridge between Windsor and southwest Detroit, a move needed to start construction of the $2.1 billion span.

The Canadian Embassy in Washington and White House did not respond to messages late Thursday to comment. Snyder spokesman Jeff Holyfield would neither confirm nor deny the Windsor Star report.

On Thursday, Snyder told WOOD-TV in Grand Rapids that “the bridge is making progress.”

“The presidential permit’s the next step and I hope we get that permit anytime,” Snyder said. “So we’re right on the edge and moving forward with it.”

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 today 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.

The decision comes as several lawsuits have been filed to stop the new bridge, 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 trying to block the span. Moroun spent millions trying to convince Michigan voters in a referendum last November to block the bridge.

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 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.

Jarvis: ‘King of the world!’

Moroun has lost a lot of lawsuits the last several years. But even when he loses, he wins, because every day he staves off construction of the new bridge, he maintains his lucrative monopoly.

The Windsor Star

Anne Jarvis

It is a pivotal point in the long and controversial quest for a new bridge at the busiest commercial border crossing in North America: Michigan Governor Rick Snyder will announce at a news conference in Detroit today that U.S. President Barack Obama has signed the permit to build the new government bridge between Windsor’s Brighton Beach and Delray in west Detroit.

The permit is the last approval required. But will it be the end of the epic battle between the governments of two countries, one province, one state and an 85-year-old man, Matty Moroun, owner of the competing Ambassador Bridge? Even before the permit was signed, it was reported that Moroun was already seeking an injunction against it so a court can hear his latest lawsuit.

A “perpetual and exclusive franchise right.” That’s what Moroun claims in the lawsuit against the U.S. and Canadian governments.

The government can’t build its planned new bridge over the Detroit River because Moroun’s monopoly is sacrosanct. He has supreme and almighty power until the end of time over one of the most important border crossings in the world, key to the economies of two nations and the jobs and livelihoods of tens of thousands of people.

That’s what Moroun is arguing.

Picture the slightly stooped octogenarian leaning over the rail at the centre of his bridge, arms spread a la Leonardo DiCaprio in the movie Titanic, wisps of white hair blowing in the wind: “I’m the king of the world!”

The absurd claim drew a rare good line from Windsor West MP Brian Masse.

“What’s their next step – declaring themselves as their own independent country?” he quipped to The Windsor Star’s Dave Battagello.

After the permit is dealt with, the next step is for Canada, which is paying for the crossing, to start acquiring land. Much of the property needed is owned by, yes, Moroun. It will probably have to be expropriated. And yes, there will indubitably be more lawsuits over that.

Moroun has lost a lot of lawsuits the last several years. But even when he loses, he wins, because every day he staves off construction of the new bridge, he maintains his lucrative monopoly. But get this; the irony is too much: his latest lawsuit, according to a report in The Detroit Free Press, also seeks to stop the U.S. government from delaying approval of the Ambassador Bridge’s proposed twin span.

A Democratic state representative from Detroit has also filed a lawsuit claiming Snyder had no legal right to sign an agreement with Prime Minister Stephen Harper last June to build the new bridge.

Rep. Fred Durhal has received more than $7,000 in campaign contributions from Moroun’s family since 2010. Could that explain his lawsuit? As rich as he is, Moroun doesn’t give money to politicians for nothing. He gives money to politicians to further his interests. By the way, Durhal is running for mayor of Detroit. Elections in the U.S. are expensive. This lawsuit should earn him more campaign contributions from Moroun. (Voters in Detroit should pay attention. The city needs a mayor to represent  its best interests, not the interests of the billionaire who installs the mayor in office.)

And it can’t escape notice that Durhal’s lawyer is Godfrey Dillard. I remember Dillard well from that stunning day when Judge Prentis Edwards of the Third Circuit Court sent Moroun to jail for contempt in flouting an order to complete his share of a highway project with the state. Dillard was Moroun’s lawyer. Quite a coincidence he’s Durhal’s lawyer, too.

Snyder bypassed the legislature to sign the agreement to build the new bridge because he couldn’t get the votes he needed in the Senate, Durhal told the Detroit News. But, as the governor’s office pointed out, that’s not true. The issue was never put to a vote. It never got past the Senate’s economic development committee. The three members of the committee who voted it down got money from Moroun, either directly or from political action committees that got money from him. One got $4,000 directly and another got $535,767 from political action committees.

Durhal also argued that the governor can’t commit the state to pay for a bridge without the approval of legislators. Except, Michigan isn’t paying for the bridge. Canada is. We’re paying the state’s share of $550 million, to be repaid through tolls.

What motivates a person like Moroun? A perennial member of Forbes Magazine’s list of the richest people in the world, with an estimated net worth of $1.1 billion, he has far more money than one person could reasonably spend. He lords over a business empire. He could have worked with government and played a major role in securing the new bridge. He could have been heralded as a forward-thinking businessman who helped usher North American trade into the new century. Instead, his legacy will be this: the man who trampled all over people, busting up neighbourhoods on both sides of the border, in relentless pursuit of his monopoly.

Podcast: Are River Crossing Lawsuits a “Bridge Too Far”?

Michigan is still waiting for a presidential permit to move ahead with construction of a new bridge between Detroit and Windsor. Meanwhile, a pair of lawsuits have been filed to stop the project. One suit was filed by the owners of the Ambassador Bridge. The other was filed by Detroit mayoral candidate Fred Durhal, a state lawmaker who says Governor Rick Snyder is illegally sidestepping the Legislature. WDET’s Pat Batcheller asked Canadian Consul General Roy Norton when he expects the presidential permit to be granted, and whether there’s any indication that it won’t be. Click here to listen the conversation.

Editorial: Kerry should sign Detroit bridge permit

State Department’s approval is the next step in what remains a contentious process to get second span built

The Detroit News

Remember that new bridge that’s scheduled to be built across the Detroit River to Windsor? After dominating the policy conversation for years in Michigan, not much has been said about the second span since last fall, when voters rejected a ballot proposal to block its construction.

It’s time to get things moving.

A good place to start would be for U.S. Secretary of State John Kerry to sign the presidential permit necessary to begin construction. After Gov. Rick Snyder inked the deal with Canada last June, the proposed deal was sent to Washington for the State Department’s approval.

The approval process included a public comment period, which ended in early September, and then assessments from the usual suspects — the Environmental Protection Agency, the General Services Agency, National Security Council and the departments of Commerce, Homeland Security, Defense, Transportation, Justice and Treasury.

They all have weighed in, with no indication of concerns that would block the bridge. All that’s left is for Kerry to put his name on the permit.

Once that happens, the Canadian government, which is paying for the crossing, can begin acquiring land — not an easy task, since much of the property needed for the bridge is owned by litigious Ambassador Bridge owner Matty Moroun and will likely have to be obtained through the condemnation process — and doing preliminary site work. If the permit comes this spring and work isn’t held up by lawsuits, actual construction of the bridge could begin summer 2014.

But the lawsuits are a factor. Moroun has filed one in federal court in Washington, D.C., contending the agreement Snyder signed violates a contract he holds guaranteeing him the sole right to operate bridges across the Detroit River.

Another suit, filed by state Rep. Fred Durhal, D-Detroit, in Ingham County Circuit Court, challenges Snyder’s authority to bypass the Legislature and make the deal with Canada.

These suits and the ones that will surely emanate from land acquisition are bound to slow the building of the bridge, an endeavor that will create 13,000 to 20,000 construction jobs over the course of five years.

That makes getting an early start vital.

Kerry is new on the job and understandably has higher priorities — the Korean crisis, for example, and his effort to bring the Israelis and Palestinians to the negotiating table. And other projects have been waiting much longer for approval, most notably the Keystone XL oil pipeline, which has been on hold for five years.

But this bridge is one of the most important construction projects in the nation and has the potential to boost the economy not just with construction jobs, but by easing the trade route between the U.S. and Canada.

The State Department may be worried about stepping into the legal fight between Moroun and Snyder, and the federal lawsuit may be giving it some pause.

Michigan and the nation need this bridge. The sooner Kerry gives his OK, the sooner the next phase of the fight to get it built can begin.

Michigan Emerging As The Next Great Shipping Hub In North America

Forbes.com

Natalie Burg, UPS

To some, the idea of Michigan emerging as the next big North American transportation and logistics hub sounds ridiculous.

“There hasn”t been any marketing of it,” said Jim Smiertka, senior vice president and general counsel of the East Lansing, Mich.-based Prima Civitas Foundation. “If you look at it, it”s a peninsula. A lot of people say, ‘How can Michigan be a logistics hub?’”

The Potential

But the doubters are missing a few important pieces of information, Smiertka said. First, the Blue Water Bridge in Port Huron and Ambassador Bridge in Detroit are the two busiest US-Canadian border crossings. Through these, Michigan has access to the Halifax Deep Water Port and three other deep water ports along the St. Clair River at the Canadian border crossing. Additionally, the Canadian National Railway flows right into Port Huron, Michigan.

Smiertka said the widening of the Panama Canal is also creating a ripe opportunity for these ports; others around the country are not deep enough to accommodate docking super freighters.

“Halifax is a natural deep water port,” he said. “Then you have that direct connection with the CN and the interstate system right into the US and through into Mexico.”

The Movements

Smiertka said that more than 90 percent of the cargo that currently comes through Michigan continues right on through to Chicago without stopping. Prima Civitas Foundation has been working to change that, developing partnerships with municipalities, chambers of commerce and others.

One of these groups is The Great Lakes International Trade and Transport Hub, which aims to take advantage of the freight traffic to and from the Port of Halifax through Detroit and Port Huron — with Canadian partners in tow. The international partners met for a summit in 2011 to brainstorm ideas for improving trade between Canada and the Midwest. A seven-year action plan delivered to the governor included increasing collaborations between businesses and marketing the region.

A simultaneous economic development effort has been the creation of five aerotropolis zones, or Next Michigan Development Corporations. These districts are areas surrounding airports and collaborating municipalities now offer companies incentives to locate there. The largest of these cooperative agreements resulted in the I-69 International Trade Corridor.

The Benefits

The prospect of tens of thousands of new jobs and a new business sector is often the focus of the buzz, but Smiertka said the benefits of Michigan as the next major transportation and logistics hub go far beyond the state itself.

“It’s a value proposition for businesses,” he said. “If you go through Chicago, your freight will be delayed five days. In Michigan, it would take one day.”

The state also has one resource found nowhere else in the nation: the top talent. Michigan State’s undergraduate Supply Chain Management program ranks number one in the nation, according to US News & World Report, even outranking MIT. As a major partner in Great Lakes International Trade and Transport Hub, MSU’s influence is sure to put the movement on the right track, as well as fuel the burgeoning sector with talent.

Though Michigan’s evolution into a transportation and logistics hub may not happen overnight, it’s not far-off. The seven-year action plan is awaiting approval now, and according to Smiertka, all entities are ready to move forward.

“We’re all very hopeful,” he said. “There’s an enthusiasm around this I’ve never seen in my years of government work.”

With any luck, within a decade, that enthusiasm will translate into a change in the the flow of cargo in and out of North America, and give Michigan a new place in the world transportation and logistics network.

MOVING FORWARD: New International Trade Crossing will have huge implications for southeastern Michigan

Advisor & Source (sourcenewspapers.com)

By Jim Kasuba
Journal Register News Service

DETROIT — After more than a decade of debate, public meetings and political campaigns for and against it, a new international bridge is on the horizon.

To be certain, the controversy over whether or not to build the New International Trade Crossing, a publicly funded bridge project between Windsor and Detroit, will continue until the first ceremonial shovel hits the ground, and most likely beyond that point.

But governments on both sides of the American-Canadian border have completed their due diligence and it appears only a matter of months until that ceremonial ground-breaking will take place about a mile south of the privately owned Ambassador Bridge, which also links the United States and Canada.

In November, Michigan voters roundly rejected Proposal 6, a ballot measure that would have required voter approval of any new state-backed international bridges or tunnels. That proposal went down in flames despite a huge spending gap between the Detroit International Bridge Co., which bankrolled the petition drive that put the measure on the ballot, and the anti-Proposal 6 group. By comparison, the $1 million spent by those against Proposal 6 was a paltry sum when going up against the $31.7 million the bridge company spent trying to convince voters to approve it.

Gov. Rick Snyder said in published reports that with the defeat of the proposal, the state can now begin to move forward on the NITC, which formerly went by the name of the Detroit River International Crossing, commonly referred to as DRIC.

The new bridge would connect Windsor’s 401 Highway and I-75 in Detroit’s Delray neighborhood. Those close to the project say the next step is to get a “presidential permit,” which could happen by summer. However, with all of the delays that have occurred up to this point, no one is placing bets on a timeline. Once bridge construction gets started, the project is anticipated to be completed within five to seven years.

Mohammed Alghurabi, who served as the Michigan Department of Transportation’s senior project manager of the project when it was known as DRIC, said it’s his understanding that the permit is expected to be approved, but the exact time frame is uncertain. The permit falls under the purview of the U.S. State Department.

“The biggest hurdle (in getting the presidential permit approved) is making sure all the ‘i’s are dotted and ‘t’s are crossed when it comes to environmental clearance,” Alghurabi said. “The No. 2 issue is that they want to know about the funding.”

Up to this point, one of the biggest obstacles to getting the project started has been Detroit International Bridge Co. owner Manuel “Matty” Moroun, who has vowed to continue fighting it.

Company spokesman Mickey Blashfield did not return a phone call and email seeking comment for this report.

However, shortly after voters failed to approve the DIBC-backed Proposal 6, Blashfield told The Detroit News that the fight over the new bridge would continue.

“If the governmental proposal doesn’t collapse from the weight of legal and legislative scrutiny, the unstable salt mine foundations (of Snyder’s bridge) will present some serious obstacles, which should call the entire project into question,” Blashfield said. “Similar and serious financial, legal and logistical questions have already been raised regarding the viability of the NITC — questions Gov. Snyder and his administration have still refused to answer directly.”

Government officials have dismissed the salt mine issue as baseless. The new bridge, if built, would compete with the DIBC-owned Ambassador Bridge and has been the source of contention between the state and Moroun’s company for years. There have been nearly 30 lawsuits between the two sides over either the NITC or issues at the Ambassador Bridge.

State Rep. Douglas Geiss (D-Taylor), who in January 2011 reintroduced legislation to authorize construction of the new bridge, doesn’t believe Moroun will put an end to his lawsuits anytime soon.

“No amount of data or facts will sway Matty Moroun’s argument,” Geiss said. “He will say or do anything to delay construction of a bridge. The longer he delays, the more money he makes.”

Geiss cited figures estimating that the Ambassador Bridge gains about $60 million per year for each year it’s the only bridge between Detroit and Windsor, which is one reason Moroun’s critics say the billionaire can easily afford attorney fees to keep fighting the NITC. However, those same critics believe spending on TV commercials, the seemingly never-ending court battles and donations to the campaigns of various politicians throughout the state are reasons it now costs $4.75 for a passenger car to cross the bridge, the fee that went into effect May 1, 2012.

Geiss uses the Mackinac Bridge, which connects Michigan’s Upper and Lower peninsulas, as a prime example of an authority that knows how to oversee a bridge.

“People say that an authority can’t run a bridge, but that’s how the Mackinac Bridge is run,” Geiss said. “The Mackinac Bridge is in top-notch condition. They do continual work on the bridge, they have an exemplary safety record and it’s a much more difficult bridge to maintain.”

He also added that it’s cheaper to use the Mackinac Bridge than it is to use the Ambassador Bridge. The current toll passenger cars pay for the Mackinac Bridge is $4 per car.

Featured prominently on the Ambassador Bridge’s website is an article by “Corps!,” a publication that brands itself “Everything Business.” In an article dated Sept. 8, 2011, Matthew Moroun, the son of the bridge’s owner and vice chairman of his family’s business, spoke out against a new bridge.

In the article, Moroun scoffed at the financial case made by Canadian and Michigan officials for the $2.1 billion NITC, calling it “political math,” adding that a taxpayer treasury is needed to make this kind of project work.

However, Geiss and other bridge proponents say the NITC will be built at no cost to Michigan taxpayers. Canada has agreed to front the cost of construction and expects to recoup that money through toll collections.

Geiss sees the fact that the Canadian government is willing to spend up to $550 million to cover the costs of the U.S. portion of the project as proof that it views this second bridge as critical.

But the money fronted by the Canadians goes much further when taking into consideration that the Federal Highway Administration is allowing Canada’s expenditure for the NITC project to be used to secure federal matching funds.

According to Alghurabi, the state of Michigan appears to be on solid ground in the funding area when it comes to its presidential permit application, since the Canadian government has agreed to front the money.

One argument the Ambassador Bridge owners have made against the proposed new bridge is that there isn’t enough traffic to support it. In the “Corps!” article, Moroun said that traffic peaked in 1999 when almost 12.4 million vehicles crossed the bridge. In 2010, that number was down to 7.2 million vehicles.

Assuming a 3 percent compound annual growth rate, it would take 19 years for the Ambassador Bridge to achieve its former peak.

Even with the projections being what they are, Moroun’s company still has plans to add a second span to the Ambassador Bridge, at a projected cost of $1 billion, that would add even more capacity. On the home page of the Ambassador Bridge’s website is a photo of the bridge as it looks today, along with an artist’s rendering of what it would look like with a second span, labeled “tomorrow.”

Moroun said his company hasn’t given up on the idea of a second span, and that it will take place “sometime in the future.” He added that when the second span is opened, the old span would undergo renovations before reopening to traffic. In terms of the economics, Moroun said it’s much more expensive to repair and rehabilitate the bridge when it’s under traffic load.

In the fall, Canadian Consul General Roy Norton spoke to the Dearborn Chamber of Commerce and to the Southern Wayne County Regional Chamber about the economic importance of a second bridge between the two major border cities.

Norton said the project is critical to maintaining the free flow of goods along the Detroit-Windsor corridor. One-quarter of the $689 billion in trade between Canada and the United States in 2011 passed over the Ambassador Bridge. Although not believed to be obsolete, the now 84-year-old bridge is the only freight crossing between Detroit and Windsor, with the next closest 60 miles to the north at the Blue Water Bridge, which crosses near Port Huron to Sarnia, Ontario.

Norton said the age of the Ambassador Bridge coupled with increasing tolls and traffic volume are the reasons Canada stepped up to finance a $550 million freeway interchange on the Michigan side of the NITC.

The Canadian government’s agreement to pay for cash-strapped Michigan’s portion of the project is one of the most unique aspects of the deal, and in all likelihood a second bridge would not be possible without it.

Norton said that since 1972, when Congress put the responsibility of U.S.-Canada border crossings on states rather than the federal government, every project has been jointly financed by the Canadian government and the state the crossing is in.

“Maintaining a death watch on an 83-year-old bridge and crossing our fingers for its eternal life didn’t seem like a very sound way to proceed,” Norton said.

He also answered critics who say another bridge isn’t necessary because traffic counts on the Ambassador Bridge are down. Norton said that while traffic counts are lower relative to all-time highs, they’re quickly rebounding from the global economic crisis of 2008 and are projected to continue growing.

But traffic issues aside, Norton said the critics’ argument doesn’t address that the Ambassador Bridge is aging and the fact that it is the sole crossing at the Detroit-Windsor trade nexus.

The DIBC has made public statements criticizing the use of public money to build a second international bridge, saying that it should be the private sector taking the lead. Norton said that, in fact, the bridge will be built and financed by a private contractor and in the event toll projections don’t live up to expectations, the Canadian government is the party that stands to lose.

Geiss also emphasizes the fact that this bridge is a public-private partnership. A private company will bid to build and maintain the bridge for a period of years, most likely a 30-year contract, he said.

“These companies believe they can recoup their investment, plus make a profit,” Geiss said. “The people of the state of Michigan can feel a further sense that they will not be in a position that they will have to pay back the cost of the bridge. If it is not a good business model, you would get zero proposals from private industry. We don’t expect that to happen. If you get three or four proposals, (the project) has been well-vetted.”

The other point to take into consideration, supporters say, is the bottleneck created at the Ambassador Bridge, especially at the Canadian side. Once the traffic reaches Windsor, drivers are faced with 16 stoplights before reaching the highway. Geiss said that would be akin to dropping off traffic on Telegraph Road in the Downriver area, using several miles of local roads and facing numerous traffic lights before reaching the freeway, tying up traffic along the way.

“You may not see it when you go to the bridge, but Ford, GM and Chrysler monitor that crossing,” Geiss said. “If it gets backed up, they will divert to the Blue Water Bridge or another crossing. The economic engine of Michigan and Ontario is tied to that crossing.”

Although the building of a second Detroit-Windsor bridge has far-reaching implications for the entire region, no particular group of residents will feel the impact more than the residents of Delray, the southwest Detroit neighborhood just north of River Rouge that extends east to the Detroit River, west to Fort Street and I-75, and north to Dragoon Street at Fort Wayne.

The once-thriving community of 30,000 people in the 1930s has shrunk to about 3,000 people today, an area of numerous burned-out and abandoned buildings populated by a tough group of people who remain in Delray for a variety of reasons.

“There are people who want to live here because they have generations of family who grew up here, or because it’s close to the river, or close to their jobs,” said Scott Brines, president of the Community Benefits Coalition, a grass-roots organization formed to protect residents from the potentially harmful impact a second bridge would inflict upon the Delray neighborhood. “We need to take care of people close to transportation and heavy industry. People are going to live here no matter what.”

Brines said the coalition is composed of about 500 residents, businesses, churches and organizations who stand united that when the project gains final approval, either the residents be offered buyouts — all of them, not just those in the footprint of the bridge — or else an investment be made in the neighborhood, one that targets air quality, abandoned buildings and city services.

For years, Delray residents involved in the preservation and improvement of their neighborhood have taken part in monthly community meetings hosted by the Michigan Department of Transportation, meetings that offered information about the bridge project as it proceeded through various stages of planning, and seeking input as to how the building of a new bridge could take concerns of Delray residents to heart.

Brines and other Delray residents are no Pollyannas. They realize that a project of this magnitude is going to have some negative impacts on their neighborhood, but one of their goals is to look for solutions that will lessen those impacts, such as increased air pollution from idling trucks. The coalition believes the new bridge and Delray residents can mutually coexist and even benefit from one another.

One of the suggestions his group has made to bridge planners is that they go directly to the source of pollution by requiring that trucks be retrofitted so they produce less pollution.

“In (Los Angeles) ports private developers retrofitted trucks and it took 90 percent of the particulate out of the air,” Brines said. “You can give a credit for new or retrofitted engines and if not they will pay a little more. This would greatly help the community.”

One of the reasons bridge proponents say Delray may not be left to languish has to do with improving the image of Michigan. The last thing bridge builders want to do, they argue, is to build a beautiful new bridge that connects to a slum neighborhood, which is the last view travelers see when they leave the state and the first image when they enter it.

“It’s a black eye on Michigan and Detroit,” Brines said. “How could you let that happen? When you go across the river, Canada has taken great strides to improve the quality of life and the environment to make the area beautiful.”

Brines said the hope is if the government won’t step in to improve and beautify the area, perhaps the bridge’s private developer will. Many Delray residents feel abandoned by the city of Detroit, he said, and don’t hold out a lot of hope that the financially strapped city will put much effort into neighborhood improvements.

“We are dealing with a city in crisis,” Brines said. “We have so many houses that are abandoned — houses that are burned and ravaged, and stripped of their resources. We’ve also had lot of speculators, businesses buying up properties, one of which is the (Detroit International) Bridge Co.”

Right now, Delray finds itself like everyone else with a stake in the bridge — waiting on approval of the presidential permit. However, as might be expected, there’s considerably more anticipation with Delray residents surrounding the length of time it will take for final approval.

Brines said the community expects at least five years of the building process.

“That’s a hardship,” Brines said of the lengthy period of increased noise, dust and traffic blockages that are involved in such a major project. “The longer we wait, the worse it gets. A lot of us are struggling to see how we can come out on top.”

Key bridge proponent quits post

Dave Battagello, The Windsor Star

A U.S. cabinet official who is a key proponent of a new Windsor-Detroit bridge has resigned.

Ray LaHood is stepping down after four years as transportation secretary in the Obama administration.

LaHood, 67, visited Detroit more than a dozen times during his tenure – more than any other U.S. city. He was instrumental in awarding federal funds for light rail on Woodward Avenue and helping to bring hundreds of millions of dollars to create a Detroit to Chicago high-speed rail connection.

He was also committed to the Detroit River International Crossing (DRIC).

“I think everything is possible in Michigan when it comes to transportation,” LaHood told the Oakland Press last week. “I think of the leadership of the governor (Rick Snyder) with Canada on the bridge crossing; what that will mean in terms of jobs, what that will mean in terms of the kind of relationship we have with Canada in terms of exports and imports.

“They need to get this project under way, get it done, and continue this kind of continuity of leadership that exists.”

The bridge project requires a presidential permit before it can proceed.

There have already been several candidates announced as a possible successor to LaHood, including former Michigan governor Jennifer Granholm.

A Canadian government official expressed gratitude to LaHood for his work on the bridge file.

“We wish Secretary LaHood well in his future endeavours and would like to thank him for his continued support of the Detroit River International Crossing project,” said Mark Butler, spokesman for Transport Canada.

“The Government of Canada continues to work with the Obama Administration to obtain the necessary approvals to proceed with construction of the project.”

Butler said the U.S. Department of State is in the midst of reviewing public comments and expects a decision on the presidential permit soon.

Snyder’s office expressed gratitude to LaHood.

“Secretary LaHood has been a good partner on several issues of importance to Michigan, including the (the DRIC bridge),” said Ken Silfven, spokesman for Snyder. “However, we’re confident that the (DRIC) stands on its own merits and don’t expect his departure to impact this critical project.”