Sunday, April 18, 2010

BLOGexclusive: Michigan DRIC's 10,000 Jobs---Is It All Smoke And Mirrors

We saw this headline and storyline

  • "Supporters of bridge plan say it'll bring jobs

    The importance of this is all about jobs," Granholm said, citing 10,000 direct construction jobs as the direct result of the [DRIC] project."

But have you seen this headline yet in any of the Michigan media:

  • "Attackers of DRIC bridge plan say it'll cost jobs

    The tragedy of this is all about the loss of jobs, the DRIC opponents say, citing about 10,000 construction jobs annually as a direct result of the [DRIC] project."

Of course not. No one has put the facts together except the BLOGMeister! Now you will learn why 10,000 people will lose their jobs due to DRIC because of startling facts never learned until the DRIC news conference. Read on.

The media reports of the DRIC Press
Conference were fascinating with new stuff suddenly appearing that shoots down a lot of what DRIC had said before. All of this really for just one person too:

  • "The clear goal of the event was to mount enormous pressure on the Republicans who control the Senate, specifically Senate Majority Floor Leader Alan Cropsey (R-DeWitt), who has steadfastly resisted the DRIC project in favor of allowing the Ambassador to build a second span."

I also liked how the Bridge Company pulled an endrun around DRIC by scheduling a press conference later in the day and took away a lot of the DRIC media coverage by their rebuttal of what was said earlier.

Poor L. Brooks, so out of touch. So much misinformation being spewed out. I would not want him lobbying for my side of the debate

  • "It was made very clear to me that a second span would not be welcome in downtown Windsor — congestion, pollution," Oakland County Executive L. Brooks Patterson said. "If it's not going there, then the DRIC is the only game in town, or we lose out to New York."

Please, could someone please give L. Brooks a map of Windsor or a GPS device already so he won't get hopelessly lost and can tell where the Ambassador Bridge is located. Downtown, he is thinking of the Tunnel! And tell him that the Buffalo competition is a myth that MDOT has shot down years ago.

As for Jobs, Jobs, Jobs being so important for Michigan so that DRIC must be built now (as if the Ambassador Bridge people would not hire people for their project), that is a new one for MDOT. Here is what they said before were the objectives of the project. Look hard for the word JOBS:

Detroit River International Crossing Study Public Forum
Introduction of Project to the Private Sector





Capacity and redundancy, matters already disproved by facts, were the reasons for DRIC NOT jobs! These guys make it up as they go along.

Granholm said. "Let's get 'er done!" Terrific sentiment but where has she been for all these years.

Except, what's the hurry. Here is what is being proposed that the Governor does not seem to know about as shown in the SEMCOG data:




  • Start date: 2021-2025 not now
  • Not funded by a P3 but by revenue bonds secured by future tolls
  • The bonds are Michigan General Obligation bonds so taxpayers are on the hook.

Here is what DRIC said their schedule was to the private sector and notice the difference:




Which schedule is correct? MDOT would not lie to the private sector and get everyone upset with them would they? Someone seems to be mistaken.

Here is something that I had never heard before and wonder if the Legislators have. To set this up, here is what I saw in Crains:

  • "The cash-strapped Michigan Department of Transportation, a partner in DRIC and under criticism because it has been forced to cut back road projects while pushing for DRIC."

Then AP reported:

  • "A combination of federal funds, bonds and $100 million in state transportation dollars would be needed to build Michigan's portion of the bridge. User fees would repay the debt."

Maybe I missed it but I don't remember any State money being mentioned before to be used for this project. It was always said that tolls would pay for it:

  • "We estimate that the U.S. cost of construction will range from $900 million to $1.5 billon.” said Bill Shreck, M-DOT communication director. “This is the cost for construction and right of way acquisition and it includes the crossing, plaza and connection. Bridge tolls will be used to cover the cost of the project.”

In the press Release for the DRIC meeting, it was written:

  • "The new bridge will be a publicly owned. Bridge tolls will be used to repay the private developer/financier, much the same way as other toll roads or bridges."

Here is what the private sector was shown:



Nothing there about $100M.

But all is ok. According to MDOT's Captain Kirk:

  • "that money could be rolled into the financing, which would be repaid through bridge tolls, meaning in the end the state would have no upfront costs."

Roll up the $60m spent so far on DRIC studies, roll up another unexpected $100M, roll up cost inflation, roll up P3 profits and we've just increased tolls by a few extra dollars to make OTA's David Bradley's trucking members really whinge!

That assumes that there will be a P3 financing and that anyone will use the DRIC bridge if built since its tolls might be 4 times higher than that of the Ambassador Bridge! Unless Michigan taxpayers will subsidize it.

What is going on here? When did that $100M appear? Read this and wonder at how the MDOT people can actually look Legislators in the face:

  • "From Oct. 1, 2010, through Sept. 30, 2011, we are looking at being $84 million short in state revenue, and that will cost us $475 million in federal funding,” said Nick Schirripa, communications representative for the MDOT Southwest region. “So we’re looking at roughly $550 million short for the 2011 year. That number only increases over the next three years.”

    Last month, MDOT released an updated draft of its 2010-2014 Five-Year Transportation Program, in which it will delay 243 projects statewide if that funding is lost. Also, the reduced highway program is estimated to support an average of 7,778 jobs a year between 2011 and 2014, down from 17,070 in 2010."

The difference is about 10,000 jobs per year!

They cannot come up with $84M but can come up with $100M for DRIC. Amazing. Interestingly, the State would lose about 10,000 jobs a year by not building 243 projects and how many more by using $100M of scarce funds for DRIC.

Why not save jobs by using $84M for those 243 projects and Bridge Company expenditures on their project for toll credits! Seems like a winner and perfectly logical to me.

Here's the irony:

  • "Stamper attacked Granholm, saying the governor flies all over the world "looking for jobs for Michigan, and then comes to Detroit and tries to take away business from the best run, privately owned bridge in the world."

Finally, you had to listen to Dan Stamper rip apart what DRIC claimed. I listened in via a meeting conference call. It was the best I had ever heard him. He was in a really fighting mood as you can tell from reading his introductory remarks:

  • “FACTS ARE PESKY THINGS” and legitimacy may ultimately prove right from wrong.

    While the DRIC continues to hold GREAT NEWS CONFERENCES, they forget to tell what they lack to accomplish their goal.

    While the State and Governor and others continue to have GREAT NEWS CONFERENCES about all the things that DRIC has, they forget to tell you the following:

    DRIC has no Congressional approval

    The Ambassador Bridge has Congressional and Parliamentary Approval.

    DRIC claims they have EPA approval, they have had the luxury of approving themselves --- They didn’t tell you it is being challenged Community Groups as well as DIBC.

    The Ambassador Bridge has filed all environmental studies and the US Coast Guard has publicly acknowledged the “FINDING OF NO SIGNIFICANT IMPACT” and the only delay is Government red tape (by the same bureaucrats that manage the DRIC)

    DRIC claims they have approval of their EIS in Canada they again are attempting to approve themselves --- They didn’t tell you that it is being challenged by Sierra Club.

    The Ambassador Bridge has filed all environmental studies in Canada and again the only delay is Government red tape (again by the same bureaucrats that manage the DRIC)

    DRIC claims they are ready to go---They didn’t tell you that they own no land in Detroit and that they have to condemn 250 homes, 50 businesses and multiple non-profits and churches.

    The Ambassador Bridge owns all land need except for less than one fourth of an acre on City owned park that has been closed for more than a decade and that the city had signed an agreement to sell it at one time.

    DRIC claims Canada will not allow The Ambassador Bridge to land in Windsor—

    The Ambassador BRIDGE NEWS FLASH we have already landed and built the landing for the Enhancement Bridge with approval from Canada.

    DRIC claims that 17 traffic lights separate the 401 highway and the Ambassador Bridge.

    The Windsor Essex Parkway that is part of DRIC connects 401 directly toward the Ambassador Bridge and eliminates all but three traffic signals.

    DRIC claims they are ready to go—They still are faced with attempting to build over salt mines and hazardous material.

    The Ambassador Bridge is building on solid bed rock with 80 years of history supporting the current bridge.

    DRIC claims that a new bridge is needed now due to traffic increases

    Ambassador Bride traffic even with the uptick of the first quarter of 2010 over 2009 (lets not forget that the auto industry was mostly shut down in 2009) is only at 1987 levels.

    DRIC claims they are ready to go and will put 10,000 folks to work in 2010--- They didn’t tell you that in a SEMGOG report MDOT states that construction won’t begin until after 2021.

    DRIC claims they need a P3 partnership to make a go of their bridge

    The Ambassador Bridge needs no partner or taxpayer money for the Enhancement Project.

    DRIC claims Ambassador Bridge has no support.

    The Ambassador Bridge and MDOT received full support for the Ambassador Bridge Gateway Project that included as the first priority to allow for the second span. This support was in written form from the Ontario and from the City of Windsor and Detroit.

    While the State and Governor and others continue to have GREAT NEWS CONFERENCES the Ambassador Bridge continues to employ folks and create JOBS/

    What we all heard today was a contradiction of statements.

    The Governor claims that the DRIC will be built with someone else’s money “NOT TAXPAYERS MONEY.”

    But, then she is asking again for legislation to allow MDOT to continue to move forward with TAXPAYER money on top of the $33 million of TAXPAYER MONEY that has already been spent.

    While the States and Governor and others continue to have GREAT NEWS CONFERENCES The Ambassador Bridge continues to construct needed infrastructure to the border.

    While the States and Governor and others continue to have GREAT NEWS CONFERENCES The Ambassador Bridge continues to operate the best BORDER CROSSING IN NORTH AMERICA.

Darn, Dan should have added in the Presidential Permit as well that the Ambassador Bridge does not need and DRIC does. Do you really think that Secretary Clinton is going to help out Canada after what the US Ambassador to Canada said about wait times dropping, what her Department said before in their closed door session with DRIC and what she said in Ottawa about the border! I hardly think so.

And what was the effect on Senator Cropsey? Was he impressed with all of this pressure errrr attention:

  • "But Mr. Cropsey fired back...

    “It’s not that I’m being unreasonable,” he said. “I think it’s asking questions the taxpayers are asking that the governor hasn’t come up with any answers for.”

    Further, Mr. Cropsey said, “It really surprises me that Brooks Patterson would be out there pushing for a massive spending increase for a Michigan Department of Transportation that has been so inept in its spending that it’s obviously going to call for a massive tax increase.”

    On the overall project, Mr. Cropsey said he is skeptical of public-private partnerships, saying some have gone bankrupt in recent years, putting the state at risk of having to cover the costs should the same happen with the DRIC.

    Mr. Cropsey also questioned MDOT’s $100 million upfront cost estimate, saying the department has a long history of grossly underestimating costs. And for all the talk of the need to build the bridge for jobs, actual construction is a decade away, he said, meaning no immediate economic impact...

    “I want a vote because I want every politician in Lansing to be on the record as to whether they support the biggest boondoggle in Michigan history,” he said."

Perhaps Sandra could make her killer bacon and cheese quiche to impress him!

Those With No Brains Support DRIC

I am not being mean. I did not say this. The Governor did. Here is how the Detroit News put it:
  • "Granholm: New Detroit River bridge a 'no-brainer'"

It was not the barn burner I expected it to be. It was merely another of the the typical DRIC rallies.

But here is the fascinating part. The justification for DRIC has changed. Again. They are playing the DRTP game of the "JOBS" Tunnel. Look how far that got them with their rail tunnel conversion to trucks. Nowhere!

  • "It's not about Democrats or Republicans," Patterson said. "It's about jobs."

Funny, he did not say whose jobs like certain bureaucrats and Wall Street bankers and consultants and lobbyists and lawyers. Some of them are very well paid for the work in their jobs with more to come i DRIC goes forward.

Here is how the Free Press described it:

  • "Speakers backed the DRIC project today as a jobs creator, mostly leaving unsaid other justifications including redundancy in case of an attack on the Ambassador Bridge and the need for newer, more modern capacity than that provided by the 81-year-old Ambassador."

It's hilarious. DRIC supporters cannot win on anything they have tried in the past because it has been proven as untrue. So now they are forced to fall back on jobs as the reason for the project.

I guess real people who want jobs would not build the Ambassador Bridge Enhancement Project so that project would not require people being hired. DUH!

The tragedy of DRIC is that it destroyed any chance of our region moving forward for a decade and has cost untold suffering to people. All we got was stalling not action from every level of Government as they fed us the platitiudes about how important our crossing is.

There is no money to pay for it from Michigan or the US where the only border focus is on Mexico as the Secretary of State made clear in her Ottawa interview. It is so bad that if the P3 legislation is not passed, DRIC is dead. Why did the Governor wait for the last second to try to get this legislation passed if the DRIC bridge is so vital for Michigan?

Canada has not put one penny aside in its Budget either for a DRIC bridge counting on a P3 for it. Even the DRIC road is to be a multi-billion P3 in Ontario.

Where all of this money is coming from for jobs in a time of an economic meltdown, I am not sure. As long as Moroun is in business, no P3 operator would invest in a new bridge so you understand the need to demonize and vilify him. We know however that Moroun has the money for his bridge--and for jobs--already. No one seems to care about that.

We could have had those thousands of jobs years ago building the Ambassador Bridge Enhancement Project and the DRIC road in Canada. Our region would have been spared a good part of the suffering of the near Depression and auto companies' meltdown and would have been repositioned already for our future had our Governments not stalled and reneged on their previous commitments.

Today was a waste of time. it did not change anyone's mind.

  • "Patterson said he had talked to Cropsey about his opposition to the DRIC, but to no avail.

It is sad to see the misinformation being spread still by a man like L. Brooks Patterson. Doesn't he have a researcher in his office. Heck, he just needs to read my BLOG for all the information he needs:

  • "Patterson said the real fear was that without the DRIC, commercial traffic might shift to the crossing in Buffalo, N.Y.

    "It's the DRIC or New York," Patterson said."

Didn't he know that MDOT destroyed that myth years ago in a presentation. They should have told him so he would not be embarrassed and made to look like a fool.



How sad for him. And for us with this kind of leadership.

Friday, April 16, 2010

Mayoral Showdown: Edgar vs. Junior

Wouldn’t that be a hoot! In the end, Ken Lewenza Jr. would win by a land-slide!

It would undoubtedly be, at the beginning at least, the most polarizing campaign ever seen in Windsor. It certainly would pit two completely different points of view against each other. There would be clear-cut differences in solutions, content and style.

I can just imagine the Star columnists and Editorialists licking their chops as they would dream up different ways to vilify Junior. Actually, that would be the best thing that ever happened to him. The Star's declining reputation is such that being demonized by them is a big Plus. As time went on however, I would expect that people would get a better appreciation of Junior and his abilities and that the stereotypical picture of him would soon disappear.

I would be willing to make a bet as well that we would never see such a campaign. My own view is that if Lewenza announced that he was going to run for Mayor, Edgar would not do so. He could not face months of blame and criticism from someone who knows the facts about the way that Edgar has run this City into the ground and the mistakes that he has made. And Junior would NOT be afraid to use them in a campaign.


Oh it would be ugly and Edgar could not stand the heat. And neither could the Councillor formerly known as Councillor Budget who did not have the guts to debate Junior after the CUPE strike if he ever thought about running if Edgar did not.

I was thinking about all this when I read the Star story about the meeting involving the Windsor Utility Commission rate increase and this comment in particular:
  • “Lewenza and Wladarski blamed the current problems -- and a five-year water "infrastructure deficit" of $148.8 million -- on years of political reluctance to raise fees."

I thought about the difference in styles of the two men on two major issues: the WUC rate increase and the DRIC $78 million sellout.

In the DRIC sell out, Edgar, the Voice of Council, arranged for the resolution behind closed doors during secret breakfast meetings with Sandra and Dwight confirmed by an in camera vote of Council. With the rate increase, Junior is prepared to take his chances by holding meetings across the City out in public to explain what needs to be done and to hear what the population would say, whether good or bad.

To the thousands of people who sent in postcards to support the Greenlink campaign of the Mayor and who attended all of the meetings so that he could get a few extra dollars at the expense of their and their childrens's health supposedly, what Edgar did has to be a slap in the face.

Compare that with what Junior did such that even one of his strongest opponents in the past could say after the meeting:

  • “We've got to have a rate increase, there's no way around it -- we've neglected this too long," said city hall watchdog Al Nelman.”

Do you really believe that Edgar had the nerve to face the public on his Greenlink settlement? He would have been shouted down. No wonder we have hardly seen a story about it since it happened. Even the Star could not justify the sell-out and has to be embarrassed about its role!

Yet Junior was prepared to go to the public and sell his point of view, as he did successfully, even though he was asking people to pay more money"

  • "The Windsor Utilities Commission heard what it wanted Thursday night, when a small group of city residents gave support to new water rate hikes during the first in a series of ward meetings on the subject...

    WUC's selling job was so good that west ender Louise Jamieson was among the converts...

    "What you're paying for is access to the system," said Lewenza.

    He said it costs $50 million to run WUC and maintain Windsor's water system, whether consumers conserve or not.

    "I understand I have to pull my weight, but it doesn't seem to pay to be thrifty," said Jamieson."

Remember when Edgar first ran for Mayor, he made the following comment about him being a politician:

  • "Over the next four months I will engage the voters of Windsor in a discussion about our future, the future of Windsor. I will do this not as a politician but as a citizen who wants to serve you…

    I said to you earlier that I am not a politician and I am not running for office to be Mayor for life…. Should I be fortunate to be elected to lead our City, and should I ask the citizens for a second term …….My term is not to exceed two."

Yea, right, especially in relation to possibly running for a third term. Supposedly, we are going to find out what he’s going to do sometime in May. When I see that, I will believe it.

Look at what he said in the past with respect to WUC rate increases, before an election:

  • "The Windsor Utilities Commission will have to justify any water rate increase this fall, Mayor Eddie Francis said Wednesday.

    "I pay for water and I want to know what we pay these rates for," Francis said at a meeting of the commission.

    "(The rates) have to be justified. We aren't going to stand by when they say 'We need this.' We are going to ask why."

    Francis said in an interview he believes water rates are too high...

    When the study is completed, Francis said he hopes it will show water rates can be decreased."

Too high, hopes that they can be decreased! Boy, was he wrong! What a businessman. How does one explain this. After the election, we were hit with an 86% rate increase which the Mayor took the lead in justifying.

Look at what he has said now with respect to possible rate increases, naturally before the election. In passing, he was not at the WUC commission meeting where this matter was debated and decided. He chickened out:

  • "Mayor Eddie Francis, also a WUC board member, missed Thursday’s meeting because he was overseas, but agreed Friday the water company may have to look at a more gradual increase.

    The mayor took the lead in pushing the 86 per cent hike in 2007.

    “Right now this community cannot handle a 10 per cent increase,” he said. “You need a more realistic approach in what’s required. You are not going to resolve the infrastructure deficit in one or two years. Maybe there needs to be a 10- to 15-year plan and be balanced in people’s ability to handle this."

Edgar was front and centre supporting the 86% increase but where is he now defending the latest WUC increase before the next election? Invisible!

Compare that approach with that of Councillor Lewenza who was effectively putting his career on the line by going out to meet with the public. Naturally, the Star wants to vilify him since coincidentally there is a story about the big rate increase at Enwin where the Mayor is on the Board. The numbers were given to Enwin last Thursday and it took this long to crunch them and to have the Star report them!

What did Edgar have to say about this increase? Invisible in the story. Instead, all we received was excuses from the Company that pays Members of Council huge amounts so that their Council salaries are increased dramatically.

Oh I would love to see a Mayoral campaign between Edgar and Junior but that would never happen. Obviously, the first issues that would be discussed would be the 101 Day CUPE strike and outsourcing. Edgar could never dare debate that matter with Junior because the Star protection of Edgar’s huge sellout of the citizens as a hardliner would be demonstrated. His reputation would be shot forcing him to pull a “David Miller.”

Edgar could never stand up to the questions about why garbage should be outsourced or daycares closed without consultation whatsoever. Even on parking enforcement, the discussion was held behind closed doors until Edgar had to say:

  • "The matter was subject to much debate behind closed doors Monday night, but Francis said council concluded, "out of an abundance of caution," to have the matter dealt with in public at next week's regular council session."

It would have been fun for me at least to watch this campaign go forward but alas it will never happen. Pity for us.

Thursday, April 15, 2010

Border Traffic Numbers In A Perspective

Whew, all that good news about the border traffic numbers increasing massively over the last few months must feel like good news to Transport Canada's Sean O'Dell and the DRIC supporters who will be trooping over to the Detroit Chamber offices for their big pro-DRIC rally on Friday.

I hope Sarah Hubbard keeps that list I asked of her of attendees. I want to see how correct I am that the usual suspects will be there.

Then the Ambassador Bridge Company goes and spoils it all by issuing a Press Release that tells us what the numbers really mean:


  • Ambassador Bridge traffic up, delays down

    WARREN, Mich. – Traffic crossing the Ambassador Bridge increased 11 percent in the first quarter of 2010, compared with the depressed levels of automobiles and trucks using the bridge during the same three-months of 2009.

    The Detroit International Bridge Co. (DIBC), which owns and operates the Ambassador Bridge, said the increase was more a reflection on extremely low levels of traffic at all border crossings during the first quarter of 2009, caused by the global economic crisis and near shutdown of the automobile industry at that time.

    “We are happy that the increase in traffic during the first quarter shows the economy is better than it was last year and we hope the trend continues,” said DIBC President Dan Stamper. “Even if traffic continues to hold at higher levels, 2010 will be on track for the second-worst year over the last decade.”

    The Ambassador Bridge is the No. 1 international crossing in North America and it alone carries more than one-quarter of the trade between the United States and Canada.

    First quarter traffic this year was down 12 percent compared with 2008 and down 44 percent from 2000.

    Most of the first quarter increase was truck traffic, which was up 22 percent compared with 2009. But truck traffic in the first three months of 2010 was 15 percent lower than 2008 and 30 percent lower than 2000.

    Automobile traffic in the first quarter was up just 5 percent from 2009, but 9 percent fewer autos used the bridge compared with the first three months of 2008 and 51 percent fewer than in 2000.

    “It is interesting that the increase in traffic we had at the Ambassador Bridge, particularly with trucks, corresponds with a doubling of toll rates at the Blue Water Bridge, where traffic was up at a lesser rate,” Stamper said.

    Average wait times for passenger and commercial traffic crossing the Ambassador Bridge was well below 9 minutes in 2009 and significantly below the 70-minute average wait times that occurred in 2002 in the aftermath of 9/11, when U.S. and Canadian government inspectors increased border security.

    Working closely with federal authorities on both sides of the border, the Ambassador Bridge added additional inspection booths, parking areas and pre-processing centers for commercial vehicles and made electronic processing assistance available. Wait times at the Ambassador Bridge plummeted as a result.

    Analysis of internal hourly data on wait times from January 2010 shows that wait times for passenger cars traveling to Canada using the Ambassador Bridge exceeded 9 minutes only 4 percent of the time. Trucks going to Canada experienced wait times exceeding 9 minutes only 3 percent of the time. Wait times for cars and trucks entering the U.S. from Canada had wait times exceeding 9 minutes less than 1 percent of the time.


Yes, I know that cars are not trucks. However, if only the Bridge Company had mentioned as well what Crains did to demonstrate that the increase in traffic for the region overall was not all that it is cracked up to be when looking at what the Tunnel lost and the Bridge gained, then the story would have been complete:

  • "Car and truck traffic at the bridge is up slightly more than 11 percent through March, an increase of 167,192 vehicles to 1,663,965 from 1,496,773 at the same point last year.

    Tunnel traffic, however, is down more than 15.5 percent for the year, to 886,477 from 1,049,865. That’s a decline of 163,388 vehicles over the first 90 days of the year."

And I hope David Bradley is there to talk about his perspective about empty trucks and how his members will be pleased to pay the huge DRIC tolls considering he whinged about the tolls increasing at the Blue Water Bridge:

  • "there's still a long way to go to return to peak levels, observers say.

    "It's a hopeful sign but I don't think we're out of the woods yet and I do think there's a long way to go to recoup the traffic that has been lost," said David Bradley, president of the Ontario Trucking Association.

    "How filled are these trucks? It's one thing to have trucks crossing, we're glad to see those numbers pointing in the right direction. I still think there's still some issues in terms of balance of trade across the border and therefore making sure those trucks are filled both ways."

BLOGExclusive: The Granholm Legacy--P3 Taxation

  • "The latest overseas trip was Granholm's 10th since taking office in 2003."

I hope she will not be stopped at US Customs. Rumour has it that not only will the Governor bring back jet lag on her return but she will be carrying some strange stuff in her suitcase: the concept of P3s as a salvation for Michigan.

Oh it is serious, addicting many politicians world-wide it seems. Take a look at the BLOGs I wrote about P3 addiction if you want to know more about this fatal disease if not treated properly:
P3 Cocaine (Part 1) http://windsorcityon.blogspot.com/2008/11/p3-cocaine-part-1.html
P3 Cocaine (Part 2) http://windsorcityon.blogspot.com/2008/11/p3-cocaine-part-2.html

Of course, what that really means as Michigan Representative Pam Byrnes told us in her e-newsletter is a big rally on Friday for business, political and labour leaders to promote the passing of P3 legislation to save DRIC. Naturally, it won't be presented this way. The P3 umbrella will surround and hide DRIC to make P3s oh so appealling

Why Michigan leaders want to endrun President Obama by helping Canada out on DRIC has always mystified me. It cannot help the Governor if she wants a federal job. Take a look at my BLOG "Why MDOT Needs P3 Legislation For The DRIC Bridge"
http://windsorcityon.blogspot.com/2010/03/why-mdot-needs-p3-legislation-for-dric.html

P3s would serve a purpose for MDOT for sure and for Canada:

  • 1) little legislative oversight over spending if the money is coming from the private sector (until payback time when it is too late)

  • 2) a way perhaps to try to get around the eminent domain legisaltion

  • 3) a way to avoid a Dubai Ports situation and having Congress intervene.

Let's cut the P3 BS.

It is nothing more than a financing tool that Wall Street is trying to sucker Governments to adopt to make bankers richer. After all, the fees are huge. With the economic melt-down, who needs the investment bankers when Governments can borrow money at cheaper rates than the private sector. Look at the mess Macquarie is in with their tollroads to see what happens when this concept sours.

  • "Macquarie to split gems from dud pikes

    Macquarie are proposing to split their portfolio of pikes into the gems (called Mature MIG) and the duds called (called Active MIG). For the MMIG gems investors will pay a premium but will see the returns roll in steadily. The duds, Macquarie management will be working their tails off - active management - to make them less duddish. But being a more dicey investment AMIG the dud securities will probably sell at a lower price."

I do not understand why a State which can borrow money at low rates these days would want a P3 where the bankers want a monopoly and a rate of return from 13-20%!

I thought the rules about off-balance sheet borowings had changed so that a "loan" as a P3 deal really is has to be shown as one and not merely "expensed out" to make the State balance sheet look better.

If you want your hair to curl, take a look at this story about bankers and loans to Government. While not dealing specifically with P3s, if true, it is a scary read. Of course, I say, "if true" because I cannot vouch for its accuracy so you will have to read it with that caveat in mind:

  • "Looting Main Street:

    How the nation's biggest banks are ripping off American cities with the same predatory deals that brought down Greece

    By Matt Taibbi http://www.informationclearinghouse.info/article25201.htm

    April 12, 2010 "Rolling Stone" - - If you want to know what life in the Third World is like, just ask Lisa Pack, an administrative assistant who works in the roads and transportation department in Jefferson County, Alabama. Pack got rudely introduced to life in post-crisis America last August, when word came down that she and 1,000 of her fellow public employees would have to take a little unpaid vacation for a while. The county, it turned out, was more than $5 billion in debt — meaning that courthouses, jails and sheriff's precincts had to be closed so that Wall Street banks could be paid."

Go to the top left of my BLOG and place the words "Port Mann Bridge" in the search box. You will learn the gory details of how the Macquarie P3 deal for a new bridge costing over $3B fell apart because of the economic melt-down and how the Province of British Columbia had to step in and save the deal.

More importantly, you will discover how the Province using the same contractors as the P3 group would save a billion dollars for taxpayers by financing the project the traditional way and shave a year off the project time-line.

A DRIC bridge financing would be a disaster since tolls would have to be up to 4 times higher than that of the Ambassador Bridge. Who would ever use it at that rate? Don't forget the bridge alone is over $2B and the entire project on both sides of the river is estimated at $5B. We know those numbers are not going to hold but will be much higher! Our Boston Big Dig by the time it is done.

Need proof of the financial failure to come---where are the financing numbers of the second section of the MDOT Wilbur Smith report and why hasn't MDOT revealed them BEFORE the rally!

If the tolls will really have to be that high, how can the new DRIC bridge compete? It cannot. Unless there is a subsidy to be provided by taxpayers, a new tax in other words for years to come for Michiganders. How many other bridge and road projects around the State will have to be postponed or cancelled to pay for DRIC? And that is exactly now being contemplated! As I Blogged before:

  • " http://windsorcityon.blogspot.com/2010/01/why-did-canada-do-it.html

    "That is why separately Transport Canada's Mark Butler said:

    "We are continuing our discussions with Michigan on governance issues and financing issues,” said Mark Butler, a Windsor-based spokesman for Transport Canada...

    Butler said the Canadian government would prefer that the new cable-stayed or suspension bridge be undertaken on the basis of a public-private partnership. But he said this approach is not yet set in stone."

    Now you know why it is not set in stone. But it gets even worse:

    "Given the anticipated tolled nature of the border crossing, MDOT says there are several public-private partnership models ranging from real tolls to availability payments that could be applied to the DRIC under current market conditions."

    What a joke...from real tolls to phony tolls ie payments support by either direct Government payments or guarantee or subsidies. All at extra taxpayer expense forever! They dare not say that in the RFPOI because then the Legislator who reads it would know that this is a financial disaster."

We are all being sold a bill of goods. Michigan especially now that we learned that the Canadian Prime Minister, Stephen Harper, really wants to be the owner after he issued his secret mandate letter to buy the Ambassador Bridge. The DRIC project was a phony, designed it appears to me to help him out in his fantasy.

I have Blogged before about the Danish Professor and his work on Mega-Projects. Here is another expert and what he has to say about these Mega-Projects as well:

  • "Error and optimism bias in toll road traffic forecasts
    Robert Bain

    Abstract Traffic forecasts are employed in the toll road sector, inter alia, by private sector investors to gauge the bankability of candidate investment projects. Although much is written in the literature about the theory and practice of traffic forecasting, surprisingly little attention has been paid to the predictive accuracy of traffic forecasting models. This paper addresses that shortcoming by reporting the results from the largest study of toll road forecasting performance ever conducted. The author had access to commercial-in-confidence documentation released to project financiers and, over a 4-year period, compiled a database of predicted and actual traffic usage for over 100 international, privately financed toll road projects. The findings suggest that toll road traffic forecasts are characterised by large errors and considerable optimism bias."

In other words, P3s are a recipe for disaster. Why the Governor would want to be remembered for this is beyond me!

CUPE Elections

I believe that the elections for CUPE Local 82 are coming up soon.

I heard that Jim Wood, the President during the 101-day strike, is being challenged for the top job.

It will be interesting to see what happens.

Will the union members vote him out which would mean to me a repudiation of his leadership during the strike and afterwards, especially in relation to garbage outsourcing? Or will he remain at the helm of the Union either because the members liked his leadership or don't like his opponent.

If he loses, what would that mean to Jean Fox of CUPE Local 543 who has announced that she is running for re-election since she has a similar issue with her actions during the strike and with daycare closing.

The results of the election could also have an impact on relations with the City depending on the outcome and the platform of the winning candidate. Will we see a CUPE that is conciliatory or one that will become more militant.

The fundamental question in my opinion that Union members need to ask is whether they were well-served by their leadership during the strike and are they being well-served in the outsourcing debate and with other possible lay-offs at City Hall. In other words, how well has their leadership dealt with the public backlash against their members promoted primarily by the Star's one-sided support of the position of the hardliners on Council.

If there is a question period for candidates, I would ask why simple actions have not been taken that could have demonstrated why the hardliners "lost the war" contrary to what the Star said to re-establish the credibility of CUPE workers and why action has not been taken to stop outsourcing and closing in the face of obvious problems that the City has.

I have an opinion on what I would do if I was a CUPE member and have millions of reasons to support it. But since I am not, then I will keep quiet.

Can You Help Francis Kwame


I received this email, twice. Honest I did. I did NOT make it up. Francis Kwame was the name of the sender.

Someone overseas has a weird sense of humour

For a second, I thought it might be legitimate because of the reference to "Holiday to Bobo." Gee, I first thought it said "Boblo!"


Interestingly, another lawyer sent out an identical letter---Richard Agese. What a co-incidence.

However, something rotten is going on. Mr. Balino Harem, a third Attorney at law, also sent out a similar letter but his amount was $15M, not the $13M

SOMEONE HAS STOLEN $2m FROM THE ESTATE!

This deed must be dealt with immediately. I think I had better send out a mass mailing to millions of people world-wide asking for assistance and money to help track down the thieves.
  • ----- Original Message -----
    From: Francis Kwame
    To: ..
    Sent: Tuesday, April 13, 2010 11:40 AM
    Subject: FROM MR FRANCIS KWAME CHAMBERS


    FROM MR FRANCIS KWAME CHAMBERS
    1515 CIRCLE GATE
    P.M.B 1076 OUAGADOUGOU BURKINA FASO.
    PRIVATE MEMO


    Dear Friend,

    I am Mr. Francis Kwame ,an Attorney at law, and the personal lawyer to Engineer Dr Alfred A. Corbeil, a foreigner who used to work and owned Corbeil Oil International in Burkina Faso, Herein after shall be referred to as my client.


    It may interest you to know that , I got your contact at the office of the Chamber of commerce and Tourism in Ouagadougou Burkina faso as I was going through some directories. On the 10th day of August 2003, my client, his wife and their two children were involved in a car accident along Ouaga - Bobo express way while arriving from a Holiday to Bobo.


    All occupants of the vehicle unfortunately lost their lives. Since then, I have made several enquiries to their embassy to locate any of their extended relatives and this has also proved unsuccessful. I am contacting you to assist in repatriating a fund valued at USD$13Million,(Thirteen million United States Dollars),left behind by my client before it gets confiscated or declared unserviceable by the Security Finance Firm where this huge amount were deposited. The said Security Finance Company has issued me a notice to provide the next of kin or have his account confiscated within the next twenty one official working days.


    Since I have been unsuccessful in locating the relatives for over 4 years now, I seek your consent to present you as the next of kin to the deceased so that the proceeds of this account can be paid to you. Therefore, I will not fail to inform you that this transaction is 100% risk free.


    On smooth conclusion of this transaction, you will be entitled to 30% of the total sum as gratification, while 10% will be set aside to take care of expenses that may arise during the time of transfer, internal revenue tax and also telephone bills, while 60% will be for me towards any profitable investment in your country. All I require from you is your honest co-operation to enable us see this transaction through.


    I guarantee that this will be executed under a legal framework and legitimate arrangement that will protect you from any breach of the law. I expect your urgent response indicating your full interest in this great business transaction to our both mutual trust.Please i advice you reply to my private e-mail address for privacy and confidentiality (franciskwame23@sify.com) Kindly give me the information below to enable me establish you in the bank as beneficiary to my deceased client.


    1. NAME IN FULL:.......................
    2. ADDRESS:..............................
    3. NATIONALITY:......................
    4. AGE:.....................................
    5. SEX........................................
    6. OCCUPATION:......................
    7. MARITAL STATUS:............
    8. PHONE..................................
    9. FAX:........................................

    Best regard,
    Francis Kwame Esq.

Wednesday, April 14, 2010

DRIC-Taqtaq-Dough

Hey everybody, forget Monopoly and having a space on the Board named after Windsor. Boring.

We need a distinctly Windsor take-off on a game to pass away the time at the unemployment office until our economy booms again. Something exciting but quick since we know that the attention span of Windsorites is low. That is why the Star publishes stories with the key points buried at the end so no one will read them.

The game has to be timely too so people will understand its significance. I figured that the game could be a take-off of Tic-tac-toe. Oh that game is NOT as simple as you think:
  • "The simplicity of tic-tac-toe makes it ideal as a pedagogical tool for teaching the concepts of combinatorial game theory and the branch of artificial intelligence that deals with the searching of game trees."

Accordingly, I wanted a simple but fun game that is a good pedagogical tool for teaching the concepts of the border file settlement that was just reached. Thus in three words we learn everything as I name the game:

"DRIC-Taqtaq-Dough."

Do you understand. It explains that

  1. we got a DRIC road settlement,
  2. the Taqtaq family sees hopefully Duty Free Shop improvement as the Plaza gets fixed up (although under Edgar's leadership, Tunnel volumes are tanking so they may need a big rent reduction) and their lands around the Tunnel are expropriated finally and
  3. Windsor gets dough for its projects, the $78M that Edgar negotiated with the Province.

Naturally we need to replace the X's and O's. So here is how it would look

OK, OK, I know I am being silly but surely not as silly as the sycophants whose vicious objections and opposition to the DRIC road disappeared as quickly as saying "Re-elect Edgar Francis For Mayor" when he got $78M extra. Health concerns, pollution and noise impacts and the effect on children simply vanished...poof...as if they never existed. Because they did not.

You have to admit though the three words do explain it all very concisely. Let me go into more detail. I have already Blogged about DRIC ("It's A Sell-Out") and the Dough ("The Price Of The DRIC Road Compromise"). Now let me talk about the third part.


$24.2 million dollars of Provincial money to help out an international border crossing, the Tunnel, owned by the City of Windsor. What a great use of Provincial money in a time of deficit. Does her Majesty's Loyal Opposition at Queen's Park know about this and approve it? Torontonians must be so proud of us that we get the money they are losing.

What a coup by our Mayor. I am shocked that the Star did not publicize it more. We all ought to be applauding it not seeing it hidden away by the traditional media. Come on guys, let us know more so we can praise the negotiating skills of our Leader.

Hmmmm, that's odd. I have not seen so far what I am going to tell you reported in the Star. Why not? Oh, I guess their reporters don't know any of this. It's all factual too just like the Bloggers Basher on CKLW wants. Were the following facts reported by the very well-trained journalists on the radio? Naw, I guess they did not know the facts either.

I really think that this is a gorgeous photo of our Mayor at the wedding of his obviously good friend, Abe Taqtaq.



In case you forgot, Abe's family runs the Duty Free Shop at the Tunnel Plaza location which is leased from Windsor taxpayers (I am not sure now if it is still the Windsor Tunnel Commission who is the landlord or the new Tunnel Corporation, both of which are headed up by the Mayor).

The Tunnel is the beneficiary of a huge contribution from the Province as part of Edgar's negotiated DRIC Road deal in case that part of the Edgar (aka Eddie) is our hero in the Star stories escaped you.

The Taqtaq family also is an owner of the plaza where the Mayor's spouse has her business. PCR, who built the new East End arena under a single source contract from the City, was also the contractor there I believe:



I mention this because of this startling declaration in a Tunnel Commission Minute. Surely it must be wrong. Surely she does not rent space at the Tunnel too but that is what it says:


All of this intense interest in the Tunnel on the Mayor's part to make it part of the DRIC Road deal. Think this is strange. Nope....It's hardly a surprise as you shall see. After all, the Tunnel is a City asset, right, and we have 5,000 commuters to protect no matter what the cost or so Edgar claimed before.

Let's see now. Here are some Tunnel facts that may interest you:

  • the Tunnel has been described as a "unique security" risk
  • the report on the shape of the Tunnel has never been made public (I guess Congressman Dingell still does not care about the safety of Tunnel users the way he did with Ambassador Bridge users, both crossings being about the same age)
  • the Mayor wanted to spend $75M of Windsor taxpayer money--where it would come from, who knows--to take over running the US half do the Tunnel, not owning it either but failed miserably to do so at a cost of over a million dollars of taxpayer money in legal and consulting fees.
  • the Tunnel no longer pays the City a dividend
  • the Tunnel Plaza Improvement project was dead in the water since the City could not afford its $10M share and the price of the project had escalated dramatically as was told to us by the now departed Dev Tyagi

    (Current Project Status
    The first of three scheduled Public Information Centres on the proposed alternatives was held February 23, 2006. This is part of the Environmental Assessment (EA) process to allow the public to comment on possible alternatives for the improvement area. The second Public Information Centre was held July 26, 2006.
    Next Steps

    We are working with the City of Windsor to finalize the schedule for this project based on the remaining requirements for the EA study."
  • the Tunnel traffic is falling dramatically: "Detroit-Windsor Tunnel - almost all cars and local - is doing horribly. Jan-Mar this year totaled only 886k v 1,050k Jan-Mar 2009, over 15% off."
  • the DRIC Bridge is expected to take away a huge chunk of their business.
  • The Provincial share of the project increased by 142% from $10M to $24.2M and its share of the total project increased from a one third share to 55% (Whatever happened to each of the Governments sharing equally?)

All of this interest and expenditure in a declining asset. Yet Edgar made it part of the DRIC Road deal.

Would it have been a deal-breaker if the Province said NO? I guess we will never know unless Sandra and Dwight tell us what they discussed over breakfast in Sandra's house. How charming. I wonder if there was any concern about the Members Integrity Act as Sandra made waffles and coffee for them.

Good to see that the Province and City want to become active participants in a NAFTA case!

So what is one of the big deal points on a settlement that is primarily concerned with the DRIC Road to the Ambassador Bridge (yes that is what will happen) and that takes up a good chunk of the $78M prize money that Edgar (aka Eddie) negotiated as a consolation prize for chickening out and putting Windsor at risk using his own and David Estrin's presentations as evidence:

  • Building on the Let’s Get Windsor-Essex Moving (LGWEM) strategy

    Windsor-Detroit Tunnel Canadian Plaza Improvements
    • Ontario is investing an additional $10 million for improvements to the Windsor-Detroit Tunnel Canadian Plaza. This is in addition to the $10 million announced under the LGWEM strategy in 2004 and $4.2 million spent on property to date.
    • Ontario and Canada will immediately restart the environmental study.
    • Public consultation sessions will be held shortly leading to completion of the study and the necessary environmental report.
    • Subject to environmental approval, property acquisition, and completion of further engineering work, construction could start as early as winter 2011 and will take approximately one year to complete.
How terrific that it is getting started so soon just after Edgar turned the Tunnel into a private company where pesky taxpayers and reporters can be kicked out of Tunnel meetings just like at the airport.

$14.2M extra...making a $30M project now $44.2M. I am certain not all of that increase is due to construction cost escalation.

But wait, the City did not have $10M in its budget for its share....Where will that money come from? Perhaps from the sale of all of those City properties to the Province:

  • "$12 million for the purchase of 150 city-owned properties along the route of the parkway"

Or maybe it will come from the obscene selling price that the Feds paid for the Brighton Beach property sold by Edgar.

Oh well, at least the Taqtaq family can breathe a big sigh of relief. They run the Duty Free Shop. The Star also claimed several years ago that they owned a lot of land around the Tunnel. You must remember the 5-part BLOG series I did about Friendship.

They must have been quite concerned because nothing was happening with the Tunnel Plaza Improvements for years! You remember the BLOG I did about this property right across from the Tunnel. Why it was empty for so long that they must have lost a fortune in rental revenue.








Moreover, their Duty Free business must have been suffering badly with the huge reduction in traffic as well. With the improvements at the Ambassador Bridge, who would ever want to use the Tunnel.








Please note above the Mayor's declaration of pecuniary interest and declaration thereof in only two of them. Edgar is so modest. "member of the former campaign." Pshaw, Abe was his campaign manager. As the City Clerk told me after I asked, remember:


  • ----- Original Message -----
    From: Critchley, Valerie
    To: arditti@sympatico.ca
    Sent: Tuesday, February 12, 2008 12:40 PM
    Subject: FW: Declaration of Pecuniary Interest

    Good Afternoon:

    Thank-you for your inquiry which has been directed to me for response.

    I can advise that the Mayor has always been cautious to take the high ground with respect to any possibility of an actual or perceived conflict of interest and has always chosen to excuse himself from any discussion or voting on any matter related to the Duty Free Shop. The basis of his caution is his personal acquaintance with Abe Taqtaq, his former campaign manager. Also, while the Municipal Conflict of Interest Act excludes matters that are remote and insignificant, the Mayor has also noted that his spouse is a tenant in a building that Mr. Taqtaq has an interest in.

    I trust this answers your inquiry and remain,

    Yours Truly,

    Valerie Critchley
    City Clerk
    Corporation of the City of Windsor"

The Taqtaqs must be overjoyed that part of the DRIC compromise negotiated by Edgar resulted in so much more money being given to the project so that their business operations can be improved and so that their land can finally be expropriated. Didn't the Star say at one time that:

  • "Closing a portion of Goyeau Street to all but tunnel-bound traffic is being considered by the Windsor Tunnel Commission as a solution to the traffic tie-ups at Goyeau and Wyandotte Street East. The closure, which would affect Goyeau between Park Street and Wyandotte, would allow an expansion of the tunnel plaza and reduce the congestion during morning rush hour and at other peak crossing times.

    "The status quo simply isn't working," said Mayor Eddie Francis, who is chairman of the commission. "We don't want people to panic because it may not be feasible, but we have to find an alternative to a situation which has become intolerable for our citizens, for commuters and for tourists."

    The commission has requested a report from the traffic engineering department on the impact of closing the street and what it would do to traffic patterns in the immediate vicinity.

    Along the stretch of Goyeau being considered, the only building not owned by either the city or the Windsor Tunnel Duty Free Shop is a Burger King franchise opposite the tunnel entrance."

Of course as I said above, the Mayor must protect the Tunnel's business but note this as well where the Mayor did NOT disclose a pecuniary interest when he was a Councillor. I do not know why he did not do so:


He introduced the Motion to support what the Duty Free Shop wanted and did not declare a pecuniary interest.

Remember also the Coltaq Motion introduced by the Mayor that must have helped the Coltaq and Collavino families:


Moreover, Phase One of the Let's Get Windsor-Essex Moving Strategy included:

  • "Windsor, Ontario, March 11, 2004 - The Governments of Canada, Ontario and Windsor today announced new measures that are part of a joint $300 million federal-provincial investment to help improve the Windsor Gateway, Canada's busiest border crossing.Today's agreement identifies five initial project investments, including:

    •Improvements to the Windsor-Detroit Tunnel Plaza in order to provide for more effective traffic management, including the implementation of the NEXUS program;"

At the time, the decision to focus on the Tunnel made little sense to me when Huron Church was supposed to be the trouble spot. And the agreement was signed within months of Edgar becoming Mayor too. The improvements are very important to the Taqtaq family because business was hurting at the Tunnel obviously with the reduced number of visitors:

  • "Traffic at the Windsor-Detroit tunnel remains in a slump, and the border crossing's retail duty-free store is feeling the impact. It's been this way for months, and while the list of reasons seems as long as the tie-ups some days, Marwan Taqtaq, who operates the Windsor Tunnel Duty Free Shop with his family and staff, remains optimistic.

    The pending redesign of the tunnel plaza is expected to provide better store access for vehicles."

In passing, did the request to "abandon a standard" create a huge liability on the City if something went wrong? How could the City argue that it was acting in a reasonable manner by abandoning what the association said should be done?

I don't recall the City negotiating that kind of money for the Tunnel's border competitor, the Ambassador Bridge, to improve their operation as part of the Strategy. There was $300M in BIF money around after all. Why not? They are an important crossing too. They have been hurt in traffic reduction. Their Duty Free Shop must have lost business.

There never was a Phase II Agreement which presumably would have dealt with the Bridge. What the Bridge received from Edgar, instead of helping them with a property issue, was the denial of demolishing homes on Indian Road!

There you have it dear reader. The new game, an explanation of each of the key elements and knowledge about the border file so that you can dazzle your friends with three little words.

Enjoy!

Some Info About Matty Moroun

Here are some things that you may not have known about Matty Moroun

THE MATTY

That should be his new name after a story was written about him:
  • "Detroit's Donald Trump Is Buying Up Small Lots Across the City...

    His name is not as well known as Donald Trump, but Manuel "Matty" Moroun is clearly a landed force to be reckoned with in his home state...

    how come he doesn't have his own TV show like that other real estate mogul"

This was a comment about the Detroit Free Press articles about him buying property in Detroit.

Wouldn't you just love to see him say to Edgar (aka Eddie): "You're Fired!

WHY DOES THE MATTY BUY PROPERTIES

  • "Moroun said he buys property in Detroit hoping to provide truck and rail hubs to industry"

    "He concentrates his buying in areas of Detroit once known as industrial and transportation hubs and where he hopes his holdings might contribute to a revival."

While Edgar runs off to Germany and has Lufthansa do a study where we know that City taxpayer money will have to be spent to encourage business to come to our Cargo Shanty at the airport, The Matty spends his own private money to accomplish the same objective.

WHY TRANSPORT 2000 SHOULD LOVE THE MATTY

  • "Today we're buying property on the southwest side of Detroit because that's the only place for rail. ... I don't know why everybody's hell-bent on knocking rail out. They're making a mistake."

DRTP will have to talk to him if they have any hope of building their rail tunnel.

THE MATTY COMMENT THAT CAUSED HEART ATTACKS AGAIN IN OTTAWA

  • "Moroun said he bought land as an active investment, trying to make something happen, not as a passive speculator."

Now here it comes:

  • "I'm not a speculator. I don't sell anything."

So much for the Prime Minister's secret mandate letter to buy the Ambassador Bridge

And to emphasize the point:

  • "Moran, Moroun's corporation counsel, dismissed such complaints. He said Moroun hopes and plans to redevelop as much of his Detroit property as he can.

    "We're not just buying it waiting for someone else to come along and want it and then get a price out of it," Moran said. "We're buying it because we have a game plan. Some of them are short term, most of them are long term, for the redevelopment of Detroit. In the meantime, we try and be as good a neighbor as we can. We pay taxes, and we help the city coffers."

That just follows what he said in the Detroit News in December 2008 if anyone forgot:

  • "The bridge is a living thing," Moroun said. "It's become part of me and I think I've done a good job. It's my legacy. They want to steal it from me but that's not going to happen, I promise."

I am sure that I do not have to remind bureaucrats of the Globe and Mail 2 1/2 page spread either.

DOES THE MATTY HAVE AN OFFER CANADA CANNOT REFUSE

I Blogged before that Canada should have worked with him but the Ottawa types refused to do so.

  • "He at times smiled, chuckled, grew pensive, and often urged a Free Press reporter to treat him fairly.

    He complained of being "demonized" and "vilified" in news media reports, and urged a Free Press reporter to "Rise above it!"

Thanks to Line of Sight's BLOG, I forgot what had been written before about him during the FIRA era where he was investigated when he wanted to buy the Bridge. That clearly explains the smear tactics being used against him today:

  • "Moroun often finds himself in court. The Canadians, citing federal law, were demanding 50 percent interest when he took control of the bridge in 1979. Moroun took the Canadian government to court in the United States. The Canadians struck back, launching an investigation into his background, intimating that Moroun had ties to organized crime. The allegation was never proven. After a decade in court, the Canadians capitulated, settling for almost nothing, except an agreement that Moroun make improvements to the bridge."

That tactic did not work before but Canada is trying it again. That is why The Matty has become the most "public" reclusive billionaire ever!

And the Free Press real estate stories and Editorial---timed perfectly in advance of this Friday's pro-DRIC rally.

Tuesday, April 13, 2010

BLOGexclusive: SOS DRIC SOS

The call has gone out and the friends of DRIC are responding.


Who cares if DRIC will cost Senior Citizens in Michigan more money. No time to listen to them when DRIC duty calls. No answers either to their questions.

DRIC is in big trouble. Gather the forces to save it from being ended. Saving taxpayer money, get real.... The boondoggle must go on!

Big meeting to convince and pressure the Michigan Legislature to salvage the unsalvageable DRIC. Or rather to pass P3 legislation to help make Wall Street investment bankers rich again.

Has anyone seen the financing numbers report from Wilbur Smith yet? I have not seen the report publicly even though the traffic numbers report was issued some time ago. If not, I can guess why.

They have to be so horrible meaning that an "alternative payment" regime is necessary because there is not enough money in toll revenues or the tolls would be so high no one would ever cross the border in Detroit/Windsor (except at the lower cost Ambassador Bridge!). ie taxpayer subsidy needed. After all, the total cost is $5 billion for roads, plazas and bridge.

As I Blogged before: http://windsorcityon.blogspot.com/2010/01/why-did-canada-do-it.html

  • "That is why separately Transport Canada's Mark Butler said:

    "We are continuing our discussions with Michigan on governance issues and financing issues,” said Mark Butler, a Windsor-based spokesman for Transport Canada...

    Butler said the Canadian government would prefer that the new cable-stayed or suspension bridge be undertaken on the basis of a public-private partnership. But he said this approach is not yet set in stone."

    Now you know why it is not set in stone. But it gets even worse:

    "Given the anticipated tolled nature of the border crossing, MDOT says there are several public-private partnership models ranging from real tolls to availability payments that could be applied to the DRIC under current market conditions."

    What a joke...from real tolls to phony tolls ie payments support by either direct Government payments or guarantee or subsidies. All at extra taxpayer expense forever! They dare not say that in the RFPOI because then the Legislator who reads it would know that this is a financial disaster.

    "Current market conditons" is a euphemism for saying there is no way that a "real toll" bridge could ever be considered because of

    ---the multi-billion cost which would drive users away

    ---economic melt-down,

    ---lack of infrastructure money and

    ---competiton from the Ambassador Bridge whose tolls would be 1/4 of that of the DRIC bridge.

If there is no legislative approval, then the project is dead. Think how badly off financially and upset the DRIC consultants and engineers and bankers and P3 operators and lobbyists and lawyers will be. $60M or so earned so far from this project on both sides of the border and even more millions yet to be made at public expense!

Never mind how distraught Canada and its bureaucrats and politicians will become. Another effort to beat Moroun and take away his bridge cheaply down the drain.

Now you know why Prime Minister Stephen Harper sent out his secret mandate letter to buy the Ambassador Bridge. He knows that the DRIC was always a phony and that the DRIC supporters in Michigan have blown it.

We need to run a pool about who will be attending the meeting. I need a trustworthy person to mark off the political, business and labour people from this list below. Those are my guesses. Perhaps Sarah Hubbard from the Detroit Chamber could do it. I am sure she WILL be there.

These people surely will be attending, rooting for DRIC even if some of them are supposed to be independent and not a cheerleader. I mean they were there when DRIC needed them before:

Council Payments---Read It And Weep


Perfect time to release the info, buried in the Communications Package as Item 21 out of 28. With the DRIC matter taking the headlines.

Just doubleclick the images to see them more clearly.

Lots of meetings at Enwin to generate fees like that! I bet CUPE workers wish that they could increase their salaries merely by attending Board meetings like that.

Oh and the expenses incurred by Edgar (aka Eddie)


And the Councillors:


Wow, going to BC is not cheap!

Playing With Border Truck Numbers

Seriously, have you ever seen Bridge Company traffic numbers receiving as much publicity as they have been over the past few months.

Naturally, you are seeing them as traffic numbers increase by such high percentages. I don't recall seeing them as much in the headlines as volumes were tanking. Makes Sean O'Dell feel good I bet.

But here is a math example for you:

If your high was 100 trucks per day and your low was 50 trucks per day, then a 20% increase in volume from your low is still only 60 trucks per day.

Of course this is all propaganda designed to convince Michigan Legislators that there is a need for the DRIC Bridge. How do I know, mini-Gord revealed it:
  • "Truck traffic crossing the Ambassador Bridge is up 22 per cent this year, the Detroit Chamber of Commerce said Monday.

    Truck traffic shot up by 25 per cent in March, for more than 1,500 extra trucks per day. Passenger car traffic is also up over 2009, the chamber said.

    Since the economic recovery has just started, traffic is likely to continue to grow.

    The traffic increase belies the repeated claims of environmentalists, the Ambassador Bridge and other opponents with an economic interest in blocking or delaying the badly needed new road and new bridge."

The Detroit Chamber is impartial? Hardly. Just remember the Sarah Hubbard interview I Blogged http://windsorcityon.blogspot.com/2010/03/what-is-it-with-dric-supporters.html

And the Chamber's endorsement of DRIC in this unbelievable statment:

  • "We favor the DRIC," said Sarah Hubbard, the Detroit chamber's vice president of governmental relations. "We don't oppose the Ambassador Bridge overtly. And, if they build a second span, we could live with it. But we support the bi-national effort of the DRIC."

How does she oppose the Ambassador Bridge project, covertly?

Heck, even David Bradley of OTA, another supporter of the DRIC bridge, casts some doom over these increase in numbers:

  • "there's still a long way to go to return to peak levels, observers say.

    "It's a hopeful sign but I don't think we're out of the woods yet and I do think there's a long way to go to recoup the traffic that has been lost," said David Bradley, president of the Ontario Trucking Association.

    "How filled are these trucks? It's one thing to have trucks crossing, we're glad to see those numbers pointing in the right direction. I still think there's still some issues in terms of balance of trade across the border and therefore making sure those trucks are filled both ways."

I wonder why no one has publicized this since I saw it in Crains only:

  • "Car and truck traffic at the bridge is up slightly more than 11 percent through March, an increase of 167,192 vehicles to 1,663,965 from 1,496,773 at the same point last year.

    Tunnel traffic, however, is down more than 15.5 percent for the year, to 886,477 from 1,049,865. That’s a decline of 163,388 vehicles over the first 90 days of the year."

[UPDATE: WindsorOntarioNews.com also pubished similar stats on March 16.]

In other words, almost no net gain, just a shift in traffic. Hardly an endorsement for an economic revival. Hmmm, maybe that is why the Tunnel Plaza Improvements have never been done. Make it hard for people and commerce to use the Tunnel to keep the Bridge numbers high even in this near-Depression!

But let us take a different perspective on all of this. Let us accept a comment as true what was said in the Detroit News:

  • "Supporters of a new bridge believe traffic, especially truck traffic, will continue to improve as the economy improves."

So what would be the timetable for considering the DRIC Bridge again. Decades from now at the earliest. Why:

  • "Pew study: Michigan on track for California-style money woes

    MARK HORNBECK
    Detroit News Lansing Bureau

    Recession-rocked Michigan is one of nine states on the verge of a California-style economic disaster, according to a report released today by the Pew Center on the States.

    The Washington, D.C.-based public policy think tank found that after the auto industry collapse plunged this state into recession in 2001, from which it has never recovered, leaders here have failed to modernize the tax code, have used temporary solutions to resolve budget deficits and have been slow to diversify its auto-reliant economy.

    "Michigan's recovery is going to be a long haul," the report says. "Even if the state were to immediately begin growing at the rapid rates of the 1990s, it would be 2025 or 2030 before it replaced all the jobs it lost this decade.

    "The state will have lost more than a million jobs by the end of this decade, more than a third of those this year, and 268,000 of them in the auto industry. The state's 15.3 percent unemployment rate is highest in the nation...

    "The recession accelerated drops in state revenues and has left Michigan's government trying to deal with today's problems on a 1960-sized budget," the report says.

    The state has not come to grips with the fact that it is no longer one of the nation's most prosperous states, according to the study.

    In addition, the state's aging population and "generous income tax exemptions for pensions and other retirement income" will take a toll on future revenues.

    "In 20 years, we're going to look like Florida does now if the demographic trends continue, and no one's going to be paying taxes except those that are working," Michigan House Fiscal Agency Director Mitchell Bean told Pew researchers."

Why are the numbers 2025 and 2030 so interesting? Go back and read my BLOG "Place Your Bet In The DRIC Bridge Completion Pool

http://windsorcityon.blogspot.com/2009/12/place-your-bet-in-dric-bridge.html

As I Blogged:

  • "Sen. Cropsey’s chief of staff, John Lazet, told the Journal of Commerce that falling commercial and passenger traffic now and into the future, and Michigan’s current years of economic distress, mean billions should not be poured into an unnecessary publicly-owned bridge when Moroun wants to build a span adjacent to his present bridge. Lazet said a regional transportation authority in southeast Michigan projects DRIC construction could take until 2025 to complete...

    In October, 2009, SEMCOG was now looking at the 2021-2025 time period for DRIC.

    That did trigger a memory:

    "Stuedle said construction on the bridge needs to begin somewhere between 2015 and 2030 depending on traffic flow."

    That meant completion around 2035-2037 now! That seemed more likely since it was consistent with a recent Pew Center on the States...

    And here was what was said at the Cropsey hearing that fits in as well to a much later start:

    "Algurabi: We believe we need ten lanes. Now the need for it, it varies. Again it’s based, I’m told its more of an art than it’s a science, at least traffic projection. When you’re looking at that the need could begin as early as 2025, or could be as late as, I believe its 2015 all the way to 2035 that the need will be, will be there and you’ll have to have it. But the time to plan for it and have it in place, you can plan for it, then you gotta plan for it in advance"...

    We legitimately can now go out as far as say, 2040. And that is outside the DRIC study period so we may need to start all over again and get new dates taking into acount today's economic reality."

So keep on expecting to see these traffic number headlines, at least until early June when the Michigan legislators have to make a DRIC decision.

And don't worry if numbers go down again. DRIC will haul out Windsor's Mayor who can justify the fall as he did the Tunnel's disastrous decrease in numbers by bringing out the old chestnuts:

  • "Numbers for the Windsor-Detroit tunnel showed a drop of 15.9 per cent in passenger vehicle crossings from January to March of this year compared to last.

    Mayor Eddie Francis, the chairman of the city's tunnel commission, said the combined effects of the stronger Canadian dollar and new passport regulations are still being felt."