VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
Issue link: https://www.ifoldsflip.com/i/144913
talking points High-speed rail goes off track Caught in a political game, XpressWest appears to have little hope of gaining funding by Richard N. Velotta X CO GU LU ES M T N pressWest executives recently acknowledged news that critics of the project have been waiting for: A review of the company's $5.5 billion federal loan application to build a high-speed rail line between Southern California and Las Vegas has been suspended. Company officials say the project remains under review, but there seems to be little hope that it will get back on track. "We believe high-speed rail in the western United States is both feasible and desired," XpressWest representatives said. "We await further information and direction from the administration." But even the project's most ardent supporters admit that the chance of 20130722_VI06_F.indd 6 So it appears Ryan and Sessions have delivered a fatal blow to the concept. Can XpressWest regroup? Or will the company lose the millions of dollars it has invested in the project? Will private investors step up to keep the plan alive? Is there an alternative route that isn't Victorville-dependent? And would California's high-speed rail supporters come to XpressWest's aid, knowing that their intrastate project could be the next to fall into a political minefield? How will the Western High Speed Rail Alliance's long-range plan for a train network across the West be affected? Will proposals for a magneticlevitation train resurface? There are more questions than answers. Even the project's most ardent supporters admit that the chance of loan approval, after more than two years of review, is dim. Newly formed commission will diagnose city's problems, lead city back to prominence orth Las Vegas has exceptional characteristics and endless potential — a true diamond in the rough. It has an abundance of tools in the capable hands of a visionary city council, and we intend to deliberately build on our special assets and advantages. We must promote production over consumption, investment over speculation, sustainability over waste, and build an economy that works for working families. Despite the challenges of the past, voters believe in our town, they want it to succeed, and they voted for a new vision to take North Las Vegas in a new direction. We will be a regional partner that is a self-sufficient team player committed to shared cooperation and growth. I will seek win-win regional solutions that promote long-term shared successes, not short-term individual victories. I understand the lessons we all learned in the grade school sandbox: Playing 6 would have grown the train's potential Southern California market and made it more appealing for Las Vegans. But a March letter to the Department of Transportation from Wisconsin Rep. Paul Ryan and Alabama Sen. Jeff Sessions seemed to have driven a stake through the heart of the plan. The Republicans, both ranking members of their congressional budget committees, questioned XpressWest's ability to repay a loan. The Department of Transportation and Federal Railway Administration, at the urging of the Government Accountability Office, suspended the loan review. Ryan and Sessions wrote another letter to the GAO's comptroller general, thanking him for addressing the issue. It's time to repair North Las Vegas by John Lee N loan approval, after more than two years of review, is dim. The Federal Railway Administration has offered no details about the loan review it began in late 2010, but experts familiar with the process say the biggest issues are ridership forecasts and the expectation that Southern Californians would be willing to drive to Victorville, Calif., to take a train here. XpressWest developer Anthony Marnell has said he expected most of the train's passengers to come from the Inland Empire, a short drive from Victorville. XpressWest also inked a partnership with the Los Angeles Metropolitan Transit Authority that would have extended the line from Victorville to downtown Los Angeles, which well with others ensures sharing in mutual rewards and benefits. As one of the largest towns in our state, North Las Vegas must look across challenges and work with regional partners to resolve shared challenges. During the mayoral transition period, I have been meeting with council members to create an outline of the initiatives discussed during the campaign for the purpose of developing a policy blueprint for the next few years. First, we will begin by forming the Blue Ribbon Financial Accountability for Community Transparency (FACT) Commission that will conduct an extensive top-down review of the city's financial situation. North Las Vegas has a financial problem, and fixing any problem begins by carefully diagnosing it before prescribing the solutions. The FACT Commission will be an independent group of city stakeholders, financial experts from the governor's office, accounting professionals and community leaders. The commission will put everything on the table and go through city finances and policies. The commission will have a mandate to return and report to the council by Dec. 1 with its conclusions consisting of the financial condition of the city, recommendations for changing or adopting new policies and procedures, and recommendations for implications of best practices. The FACT Commission will help establish a trusted baseline of the financial condition of the city and assist in the implementation of policies to repair North Las Vegas and ensure a prosperous future. We are going to be specific and aggressively focus on economic development opportunities in aerospace, logistics and health care. We are going to leverage our location along Interstate 15 to attract logistics and manufacturing, use Nellis Air Force Base to attract defense contractors, and leverage the new Veterans Administration Hospital to grow a much needed health care sector. We will also partner with College of Southern Nevada to ensure we are prepared to meet the capacity requirements of these industries. Our first step will be addressing our financial situation through an independent and thorough review of our city's financial situation. Through collaborative teamwork, we will develop a plan to repair our town by defining and measuring what is important. Now is the time to keep score and chart progress because North Las Vegas is going to help lead the region into the future. John Lee is the mayor of North Las Vegas. We are going to be specific and aggressively focus on economic development opportunities in aerospace, logistics and health care. | 2 2 J U LY 2 0 1 3 | 7/18/13 2:09:11 PM