Canada has agreed to cover all construction costs of the U.S. customs plaza, and with the deal removed the last political hurdle Wednesday for the planned $2.1-billion Detroit River bridge.
The Canadian government has agreed to pay the $250 million cost for the inspection plaza in Detroit under a deal agreed to by both countries.
It had been hoped the Obama administration and Washington would pay for construction of its own customs plaza, but that will not happen under the newly signed agreement.
Canada along with a private sector partner soon to be selected by the Windsor-Detroit Bridge Authority — which is overseeing the project’s completion — will now be paying the Detroit River International Crossing project’s full construction costs.
The public-private partnership is expected to recoup construction costs in the years ahead through tolls and other potential revenue generators such as duty-free goods and gas.
“I am pleased to confirm that following significant discussions with the United States and Michigan, Canada has now signed an arrangement to ensure the new publicly owned bridge between Windsor and Detroit can proceed without further delay,” said Lisa Raitt, Canada’s transport minister on Wednesday.
The U.S. inspection plaza will be procured as part of the public-private partnership assigned to design, finance, construct, operate and maintain the DRIC bridge project, she said.
Taxpayers will not be on the hook for any of the costs, Raitt said.Under the agreement, the U.S. Department of Homeland Security has agreed to cover all U.S. customs staffing costs for the new bridge.
“This arrangement is good for Canada and for Canadians,” Raitt said. “It also allows Canada and Michigan to move the project forward immediately to its next steps which include further design work and property acquisition on the U.S. side of the border.”
Canada’s top political leaders, including Prime Minister Stephen Harper, have listed the DRIC bridge project as the nation’s No. 1 infrastructure priority and promised it will open to traffic by 2020.
The new international bridge will link the downriver industrial communities of Brighton Beach and Delray.
A Homeland Security spokeswoman in an email statement Wednesday indicated there is a commitment from Washington to spend about $100 million in the first year of the customs plaza operations for equipment, staffing and setup costs in Detroit, plus up to $50 million for staff in each of the following years.
“This arrangement results from several months of productive discussions among the U.S. Department of State, U.S. Customs and Border Protection, U.S. General Services Administration, State of Michigan, Windsor-Detroit Bridge Authority and Transport Canada,” said Marsha Catron.
She said although the U.S. government is not paying any construction costs, it is very supportive of the DRIC bridge project. Catron cited numerous U.S. federal approvals to date including issuance of a President’s permit from the Obama administration.
“The United States will continue to support (DRIC) as it is built and following its completion,” Catron said.
“The United States and Canada are vital economic partners and steadfast friends. Canada is the largest trading partner of both the United States and Michigan. Many U.S. and Michigan jobs depend on the vitality of U.S.-Canada trade.”
The Windsor-Detroit corridor is the largest commercial crossing in North America.
In 2014, annual Canada-U.S. trade in goods was approximately $658 billion with over one-quarter of that trade travelling through the Windsor-Detroit corridor.
“The arrangement announced today ensures we can continue to build momentum on this much-needed trade and transportation link,” Catron said.
Michigan Gov. Rick Snyder — a driving force to get the DRIC bridge approved and constructed — applauded the agreement.
“I’m appreciative of the work of our partners in Congress and the Canadian government to ensure the (bridge) — important to both of our countries — continues to move forward,” Snyder said.
Finding a resolution on the U.S. customs plaza had been one of the last unresolved hurdles slowing construction of the DRIC bridge, said Sen. Gary Peters (D—Detroit) another leading advocate of the project.
“As a longtime advocate for the (bridge), I am pleased the United States and Canada have reached an agreement on construction of a new customs plaza removing a significant obstacle that has delayed this critical infrastructure project from moving forward,” he said.
Peters in his role as a member of the Senate’s Homeland Security committee will work with the Obama administration to “ensure the U.S. fulfills our commitment to fully staff and operate this border crossing,” he said.
The project’s next steps include ramping up property acquisition in Detroit to make room for the new bridge plaza and a feeder road in Delray that will link to I-75 freeway.
Nearly all required property on the Canadian side is already in the hands of the federal government, with land clearing in Brighton Beach just recently completed.
The WDBA is in the midst of hiring blitz to staff its support office in Windsor with about three dozen employees whose first task will be to assemble a request for proposal to find a contractor and project partner to build the bridge.
A new border highway in Windsor to link with the bridge — the $1.4-billion Herb Gray Parkway — is expected to be fully open to traffic by the end of this year.
“The new DRIC bridge is of vital importance to the economic prosperity of communities and businesses on both sides of the border,” Raitt said. “It will also bring new jobs, opportunities and continued prosperity to communities in both countries.”
Originally posted by The Windsor Star