Phase I of the project involves the intermodal rail terminal. Phase II will encompass another nearly 1000 acres that will develop as a state-of-the-art warehousing, industrial and office park. Plans for the project were announced in 2006. The state’s recent purchase of 61 miles of CSX tracks from Deland to Poinciana for use as the SunRail Commuter Rail system necessitates the move of the Taft Rail Yard in Orlando. As rail has emerged as the most cost and energy efficient way to move freight on land, the modern intermodal center will become a major hub in Florida’s transportation infrastructure.

Initial estimates peg construction employment at more than 600 jobs. Upon buildout the ILC is projected to employ 2,000 people directly and some 6,000 jobs will be created indirectly.

These types of integrated freight terminals are among the most highly sought after economic development engines in the country as they ultimately attract significant warehousing, industrial and commercial clients. The Winter Haven center is estimated to generate approximately six million square feet of such economic activity during its first decade.

Local officials lauded the decision. Winter Haven Mayor Jeff Potter said, “This is just tremendous! The opportunity that Governor Scott and the State of Florida as well as CSX have given to Winter Haven is immeasurable!”

Chamber President Cindy Price welcomed the approval for SunRail noting that the decision should serve as a catalyst for the ILC in south Winter Haven. She noted, “The rail facility, related distribution and light industry that would be attracted will bring wage scales above our current averages — and that is a good thing for our citizens and our economy.”

You can see the text of the FDOT announcement approving SunRail here.

“One of Scott’s policy advisers, Phillip Miller, told a Senate subcommittee this week that a line item of more than $269 million in the governor’s proposed budget was, in fact, for the $1.2 billion project.

“The funding for the SunRail project is actually within the [transportation] department’s five-year work program,” Miller said while appearing before the Transportation and Economic Development subcommittee on Thursday.

Miller also said the $235 million worth of SunRail contracts that Scott’s Office of Fiscal Accountability put a hold on two weeks ago was not in danger of being scuttled.” You can read the full article here.

The construction of SunRail will require the movement of the Taft rail facility in Orlando and that would expedite the need to construct the new CSX Intermodal Logistics Center (ILC) in south Winter Haven.

Please take a moment to send your comments to support this important roadway here.

However, this writer was in attendance at yesterday’s Winter Haven City Commission Workshop and while there may be frustration that the project has stalled, there did not seem to be rampant hand wringing that its future was in doubt. Pressed to answer the question “Is there a chance it might not be built?” what reasonable person might not answer that there is always a chance that the course of human events might change. However, CSX representative Rick Hood stated clearly there were two factors  that could affect the construction timetable:

1. The economy (and inherent demand for freight movement)

2. The progress on the Deland to Poinciana “SunRail” commuter line

Yesterday, Orlando Mayor Buddy Dyer shared a very encouraging update with regard to SunRail. Here is the text of his correspondence:

Dear Community Leader,

I am happy to report that SunRail, Central Florida’s first commuter rail system, has cleared its last major hurdle and remains on track for operations beginning in 2013.

This morning, I participated in a meeting convened by U.S. Department of Transportation Secretary Ray LaHood in Washington, DC where federal, state and local officials reached an agreement with Amtrak to drop objectionable provisions relating to liability that would have further delayed the SunRail project. This action clears the way for SunRail to receive a Full Funding Grant Agreement from the federal government, the final step in bringing commuter rail to the residents and visitors of Central Florida.

We expect construction for SunRail to begin in spring of 2011. Phase one of the system will be operational in 2013.

Getting to this point has been a long and difficult process. But, it’s important to remember that securing these types of “game changing” projects that create benefits for generations to come is rarely an easy task. Our success has been, and continues to be, a product of historic partnership between our local governments, our state and federal leaders, our residents and our business and civic communities.

I want to specifically thank Congressman Mica and Congresswoman Brown for their continued support of SunRail. I also want to thank the residents of Central Florida for helping create a shared vision for the future of our community, one in which expanded transportation options such as SunRail make life better for everyone.

Sincerely,

Buddy Dyer, Mayor
Orlando, FL

This positive development can have a dramatic (and positive) impact on the construction of the integrated logistics center here in Winter Haven.  As Winter Haven Mayor Jeff Potter stated, “if our new Tallahassee leadership is truly interested in creating jobs-jobs-jobs … this is a great place to start.”

We remain optimistic.

You can read for yourself here beginning on Page 24.

It provides a much more comprehensive look than Florida Trend’s April Economic Yearbook.

We were fortunate to talk briefly with CSX Director of Media Relations Gary Sease this morning about the potential of this week’s legislative approval of a comprehensive railway plan for Florida. We asked what initial steps would take place. Sease noted, “This week’s vote puts two processes into motion. First, the Florida Department of Transportation and stakeholders will begin discussions regarding SunRail and the 61 miles of infrastructure upgrades that will be necessary to accommodate that commuter rail system. Timelines will be developed and implemented and, overtime CSX will relocate its Orlando intermodal and automotive operations to the Winter Haven ILC.” He indicated this planning will begin within weeks. Once a SunRail timeline is developed a plan for the Haven intermodal facility will be created that meshes with the commuter rail timeline.

Then CSX subsidiary Evansville Western Railway will begin construction of the ILC which is estimated to require approximately a year. The first order of business will be the construction of an entrance roadway from Highway 60 into the 318 acre intermodal site. In an economy beaten down by the closing of Cypress Gardens and tourism in general as well as lingering lethargy in the real estate market and local job losses, the Evansville Western project is a welcome opportunity to further diversify the area economy. It should be noted too, that recently City and Chamber officials toured the Port of Tampa with a large contingent from Lakeland. During the tour the guide noted a large area of the port that is planned for the expansion of handling containerized goods that will travel through the Panama Canal when its widening is completed in 2014. Much of that containerized consumer goods will potentially find its way to the Winter Haven ILC.

Sease was complimentary of Winter Haven City officials, Chamber representatives and others for their support and advocacy. He also pledged that CSX is committed to continuing their good corporate citizenship which has meant so much to so many area organizations. One example – last year CSX organized more than 150 volunteers to install new playground equipment, a running track, benches and other needs at Eloise Elementary. They also support safety oriented outreach such as the Red Cross. United Way of Central Florida is also among their beneficiaries. Tori Kaplan, CSX Director of Corporate Citizenship, also mentioned a new company initiative called “Trees for Tracks.” The company plans to work with communities to plant a tree for every mile of track they operate – more than 21,000 trees will be planted.

Sease closed our conversation noting that Florida took a major step forward in creating a comprehensive rail plan that addressed Orlando’s SunRail, South Florida’s Tri-Rail as well as high speed rail (particularly the Tampa-Orlando link). He added, “It’s time to put past difficulties aside and work together to address challenges and opportunities we will inevitably face in the future including job creation and economic stimulus while developing commuter, passenger and freight rail service that can make Florida a national leader.”

Positive effects are already at hand as U.S. Senator Bill Nelson’s office has announced a $40 million jumpstart for Orlando commuter rail funding. The Orlando Business Journal reports the details here.

Immediate construction of the rail terminal facility was needed to accommodate the development of SunRail, Central Florida’s commuter rail system. The Florida Legislature, however, failed to approve SunRail. As a result, the intermodal and automotive rail terminal facility will now be developed on a more deliberate timeline consistent with business demand.

TransDevelopment and Kearney Construction will reschedule the job fair and announce the date and location of the event in the future.

We have received a number of inquiries regarding subcontracting and vendor opportunities related to the Evansville Western/CSX project.

The Chamber has learned that the design-build team for the Winter Haven inter modal rail terminal, TransDevelopment Group of Atlanta and Kearney Construction of Tampa, will host a “job fair” for potential subcontractors and vendors on May 20, 2009.  The exact location of the job fair will be announced at a later date (and will be posted here as well).

A more formal announcement will be forthcoming, but in the meantime any Chamber members that may be interested in bidding for work related to the Winter Haven ILC should save the May 20th date.

Photograph upper left: BNSF Rail Terminal, Alliance Gateway, Dallas/Ft.Worth, Texas

More troubling from this writer’s standpoint is the process that saw both Kiser and Commissioner Jean Reed wonder out loud if a fact-finding visit organized by the Winter Haven Chamber of Commerce was a “staged presentation.” Speculation included whether trains and trucks were kept out of the area to provide a calmer, quieter impression.

Both observed that indeed Alliance was quieter than other sites they had visited. Expecting more hustle and bustle (traffic and noise) must have led to the conclusion that BSNF Railway and Hillwood Corporation would purposely alter their operations for an entire day (on at least three different occassions)!

The point of this post is this: Alliance IS a quieter, well run, well organized integrated logistics center because it was carefully planned to be that way (and there was existing residential comparable to Sundance when that ILC began 16 years ago). Winter Haven has that same opportunity.

Furthermore, the Winter Haven Chamber of Commerce has taken great care to do the necessary homework to evaluate the value, impacts and economic potential to this community. To allege that any portion of our due diligence would involve “staged” presentations is patently false and a slap in the face to those who hosted our visits.

Commissioners voted 5-0 to send a letter to CSX asking that they buy the Sundance residents’ properties while all lauded the project’s economic potential. In light of the current economic challenges facing the entire nation, the  value of a well-planned, well-organized inter modal center and business park will be found in jobs, better wages, an expanded tax base and improved quality of life.

May CSX Transportation and Sundance Ranch Estates come to an equitable resolution of the matters at hand.