Published: Wednesday, April 16, 2008 in the Lakeland Ledger.
Inquiry: Train Plan Railroaded Secretly Jeb Bush probably knew of
it three years ago
By DAVE SCHULTZ
SPECIAL TO THE LEDGER
In retrospect, a comment at a state Senate committee meeting three
years ago was dripping with irony.
Discussing a pending rewrite of Florida's growth management
laws, Florida League of Women Voters lobbyist Suzie Caplowe had
this objection:
"In this bill, it appears that roads get built first, yet we
don't have money for mass transit. The league would like to
know when the state's going to begin to see the importance of a
state transportation plan that crosses the board for all
transportation."
It turns out the state was way ahead of her.
That's one of the findings in a two-month examination by The
Ledger of hundreds of public documents, recordings, letters and
memos tracing how a Central Florida Commuter Rail project found its
way into state approval and funding without any public hearings or
open discussion by the state Legislature. Many other documents
remain hidden from public view at the behest of CSX Transportation,
which made the half-billion-dollar deal with the state that enabled
the commuter rail project.
Nobody contradicted Caplowe's assertion that "mass
transit" wasn't in the growth management bill. Not Sen.
Michael Bennett, R-Bradenton, who presented the bill to the Senate
Ways and Means Committee on April 6, 2005. Not Sen. J.D. Alexander,
R-Lake Wales, nor any of the 14 other senators who voted
unanimously to send the bill to the Senate floor. There is no
evidence any of them knew any differently.
But circumstances suggest that at least one high-ranking politician
did: Jeb Bush, who was in the final two years of his eight-year
tenure as Florida's governor.
Bush's Department of Transportation (DOT) was already involved
in secret negotiations with CSX Transportation - a deal that
ultimately would commit nearly a half-billion dollars (the figure
at the time, since revised considerably higher) of the $1.5 billion
growth management infrastructure money to a long-dreamed-of
commuter rail line in Orlando and surrounding areas.
There were no clues in news stories about a huge mass transit
commitment in the bill, which passed the 2005 Legislature without
debate at, literally, the 11th hour before final adjournment. News
accounts in The Ledger and elsewhere dwelled on roads and schools
and water projects, but said nothing about passenger rail.
Bush even traveled to Brandon, home town of Tom Lee, then-president
of the Florida Senate, who had made growth management funding his
top priority of the session, for a ceremonial bill signing June 24,
2005, more than a month after the Legislature passed the final
version. Among the legislators at the ceremony: Sen. Paula Dockery,
R-Lakeland, who had spearheaded the water management portions of
the bill.
"It's clear as day," Bush proclaimed at the signing.
"If we do not invest in protecting water, building roads,
providing adequate education in enough schools, our growth will
change and alter, and it will deteriorate, and people won't be
able to pursue their dreams."
enormous scope
By November 2005, however, the conversation began to change.
In a press conference announcing a transportation improvements
initiative to enhance the new Strategic Intermodal System (SIS),
the governor and DOT included these items: "Railroad
Construction: Infrastructure for the rail main line in Central
Florida" and "I-4 Maintenance of Traffic: Maintenance of
Traffic during construction of the I-4 improvements and support for
the operations and maintenance of the future Central Florida
Commuter Rail." No dollar amounts were included.
In the meantime, CSX was talking with state and local officials
about a big move.
In December 2005, a "Proposed CSX Logistics Center" on
property owned by the city of Winter Haven showed up on a Polk
County Transportation Planning Organization map, along with a
proposed access road to it from State Road 60. A month later, CSX
and the city announced plans for an "integrated logistics
center" on the same property, a deal which the City Commission
approved less than a week later.
The scope of the proposed ILC was enormous. But it didn't begin
to be fully appreciated by the public until Aug. 2, 2006, when Bush
and CSX Chairman and Chief Executive Officer Michael Ward jointly
announced the full, $491 million tentative deal. The deal provided
the state would pay:
$150 million to CSX to purchase 61 miles of track on the CSX
"A" line through Orlando from Deland in Volusia County to
Poinciana in Osceola County for commuter rail use. The state would
lease the tracks back to CSX for freight use in off hours.
$23 million to relocate operations from the Taft yard near Orlando
to the new ILC in Winter Haven.
$198 million for upgrades on the CSX rail "S" line from
Baldwin, near Jacksonville, to Plant City, to permit greater
freight rail traffic through, among other places, downtown
Lakeland. The "S" line, named for its earlier owner,
Seaboard Air Line Railroad, and the "A" line, named for
the old Atlantic Coast Line Railroad, intersect in Lakeland, just
west of downtown. Both railroads became part of CSX through mergers
many years ago.
$59 million to build five road overpasses in Alachua, Sumter and
Marion counties on the "S" line. (Cost estimates by the
Florida Department of Transportation have since skyrocketed by
another $100 million.)
$52 million for unspecified improvements on other CSX rail lines
around the state.
$9 million to build access roads to the new ILC in Winter Haven -
referred to in the announcement as "the mother of all rail
yards," but which actually will be a huge transfer point for
containerized freight to and from trucks.
Bush touted the merits of commuter rail in making the announcement,
but he has never publicly discussed why the state should be
spending its money on other projects for a private company. The
implication is that CSX wouldn't have sold the tracks without
the other inducements - a notion that CSX spokesman confirmed to
The Tampa Tribune last year. But it is the official position of the
Florida DOT that - regardless of what anybody had said publicly
beforehand - the ILC project in Winter Haven is entirely separate
from commuter rail.
To all appearances, however, they seem interdependent. Why, for
example, would the state agree to pay millions of dollars to
facilitate the Winter Haven ILC seven months after the project had
already been announced? And what interest does the state have in
paying $52 million to upgrade private CSX freight lines elsewhere
in Florida?
Sen. Dockery has become the most vocal opponent of the deal because
it would dramatically increase freight rail traffic through
downtown Lakeland, and increase truck traffic on roads near the ILC
site. She says she supports the state subsidizing commuter rail by
$150 million but sees no merit in the other expenditures on
CSX's behalf. She also complains that the deal never had a
legislative hearing and the public had no opportunity to be heard
before the deal was done.
In a letter to constituents last month, Dockery said the deal
amounted to a state subsidy of a private business: "You might
be surprised to learn that the State of Florida is giving $341
million to a for-profit railroad company to make improvements to
their tracks. I think most Floridians would agree that it should be
the responsibility of that corporation to improve its
infrastructure and not the tax dollars of the hard working men and
women of Florida. It also seems nonsensical to spend scarce
resources in this manner while we are cutting funds for the
priority areas."
Bush, who left office in January 2007, isn't talking about the
subject.
He recently rebuffed reporters who sought to ask about CSX after he
made a speaking appearance in Lakeland and he didn't respond to
a subsequent e-mail inquiry from The Ledger. Among the unanswered
questions are whether he gave any consideration to projections of
greatly increased rail traffic through Lakeland and other
"S" line cities before agreeing to the deal.
CSX says it expects four more trains to the 16 already going
through Lakeland daily. There are no assurances that the number
won't go up in the near future - or that the trains won't
be considerably longer once the Winter Haven ILC is fully
operational.
strong interest from bush
Although the negotiations with CSX on the deal appear - from
available documents and the recollections of CSX officials - to
have been conducted by the DOT rather than the governor's
office, there is no doubt that Bush took a strong interest in
them.
When he was preparing to leave the DOT in December 2006, department
Secretary Denver Stutler told the Florida Transportation Commission
that Bush had been a visionary boss. Stutler had been Bush's
chief of staff prior to taking over the DOT as the CSX negotiations
began. "I think his (Bush's) vision will be viewed
long-term as very significant," Stutler said. "Every time
I would talk to him, whether it was something I brought up or
he'd call me, whatever it was, he'd always say, 'and
how's the CSX deal, and what about the
corridors?'"
The "corridors" referred to the "New Corridors"
program that Bush and the DOT pushed to build new toll roads
through rural parts of Florida, including the proposed 105-mile
Heartland Parkway from near the Winter Haven ILC site in Polk
County to the Fort Myers area. The Heartland Parkway has been
shelved under the administration of current Gov. Charlie Crist, but
it still has strong support from landowners along the proposed
route.
One of those interested landowners is Polk state Sen. Alexander,
who has also been a strong supporter of the ILC and the whole CSX
deal. Alexander says he had no knowledge of either the ILC or the
commuter rail project funding until long after the growth
management bill passed, with his support, in 2005.
Alexander says the economic benefits to eastern Polk County
outweigh the negative impact of increased rail and truck traffic in
the Lakeland-Bartow area, and he expresses optimism that those
negative impacts can be mitigated.
"My general view is that if we can figure out how to
potentially build a tunnel under Miami to move freight from the
port to the railhead, we certainly can figure out any issues
surrounding the rerouting of freight within the communities along
what has come to be known as the 'S' line," Alexander
said in an interview. "I still to this day don't
understand why the discussion's about stopping the system, not
about finding a way to make it work."
Alexander says he visited another ILC in Alliance, Texas, near Fort
Worth, after the Winter Haven ILC was announced, to get an idea of
what it would be like. He says he was accompanied by "some
Winter Haven people" whom he declined to name and he paid for
the travel out of his own pocket, rather than from state funds. He
also says he continues to support the Heartland Parkway as a
private citizen, but has withdrawn from any active role on its
behalf because of the potential for conflict of interest.