Canada offers Michigan $550M loan for bridge

[RedHot25]

Canada has offered to contribute up to $550 million US to help the cash-strapped state of Michigan pay for a new bridge crossing the Detroit River between Windsor, Ont., and Detroit.

Federal Transport Minister John Baird made the offer in a letter Thursday to Michigan Gov. Jennifer Granholm.

Baird said Canada cannot afford any further delay in construction of the Detroit River International Crossing.

The cash from Canada will help cover the costs for Michigan to get started with the project on its side of the border, including an interchange with Interstate 75, the toll plaza and buying up land needed to build the U.S. Customs plaza.

Read more: http://www.cbc.ca/canada/windsor/sto...#ixzz0mbIUJjtP

....

Bridge cash for Michigan called a 'bribe'


Canada's offer to pay more than half a billion dollars to cover Michigan's construction costs of a new border crossing is drawing mixed reaction from both Canadians and Americans.

....Michigan Gov. Jennifer Granholm acknowledged that without some financial help, the state legislature was having a hard time approving the bridge project.

With Canada's financial backing, Michigan can now approach the U.S. federal government for support, said Granholm.


....


The bridge, known locally as DRIC, would be downriver from the current Ambassador Bridge, owned by Michigan billionaire Matty Moroun and his Detroit International Bridge Co.

The company's president, Dan Stamper, called the Canadian offer "offensive."

"This is a bribe — that's what you see here," Stamper told the Detroit News.

"Our legislators ought to be very careful."

Read more: http://www.cbc.ca/canada/windsor/sto...#ixzz0mbIqRLs4

[Azure]

Huh?

A state in the US has to ask Canada for financial support before they can ask their OWN government for help as well?

Either way, as long as they pay it back I don't see the problem. Kinda wonder why a bank wouldn't secure the loan for them.

[peter12]

Hahaha, is this Canadian foreign aid going to the United States? I guess it's okay as long as we get all the toll revenue.

[RedHot25]

Originally Posted by Azure

Huh?

A state in the US has to ask Canada for financial support before they can ask their OWN government for help as well?

No, it is my understanding that we (Canada) offered the money to Michigan. I don't think Michigan is saying that "well the US federal gov't wouldn't give us money unless the Cdn gov't gave us some"; I think it is just more of a case that Michigan needed some cash from somewhere to help out with the bridge

[Azure]

Originally Posted by RedHot25

No, it is my understanding that we (Canada) offered the money to Michigan. I don't think Michigan is saying that "well the US federal gov't wouldn't give us money unless the Cdn gov't gave us some"; I think it is just more of a case that Michigan needed some cash from somewhere to help out with the bridge

Well the article indicates...

....Michigan Gov. Jennifer Granholm acknowledged that without some financial help, the state legislature was having a hard time approving the bridge project.

With Canada's financial backing, Michigan can now approach the U.S. federal government for support, said Granholm

Unless it was just reported the wrong way.

Still pretty funny. This is basically Canadian foreign aid going to the US.

[valo403]

Originally Posted by Azure

Huh?

A state in the US has to ask Canada for financial support before they can ask their OWN government for help as well?

Either way, as long as they pay it back I don't see the problem. Kinda wonder why a bank wouldn't secure the loan for them.

The State likely has to meet a certain funding threshold on its own before it can qualify for Federal funding.

[Canada 02]

An additional $550M could give them an additional 11% stake in the $5B project. The toll bridge could be a cash cow for the Canadian Government. Hope they negotiate favourable loan terms

[valo403]

Originally Posted by Canada 02

An additional $550M could give them an additional 11% stake in the $5B project. The toll bridge could be a cash cow for the Canadian Government. Hope they negotiate favourable loan terms

Toll projects are always risky in terms of revenue generation, but when they work they pay out pretty impressively. Macquarie has seen the best and worst with their toll roads, it's an interesting sector that I was surprised to learn is dominated by private interests.

[Sidney Crosby's Hat]

I personally find it funny that there's no real outcry over this.

My own opinion, I can see the merits of it - I did the Windsor-Detroit crossing only two weeks ago, having nervously waited in customs for 45 minutes at 4:00 p.m. knowing I had a 9:00 p.m. flight in Toronto to catch.

However, if the story was "Federal Government loans $550 million to the Flames and Oilers for new arena projects" it would be front page news. You can argue whether more Canadians will use the new bridge versus hockey rinks in Calgary and Edmonton but there seems to be a media bias (or a personal bias) against those types of projects.

[RedHot25]

Originally Posted by Sidney Crosby's Hat

I personally find it funny that there's no real outcry over this.

My own opinion, I can see the merits of it - I did the Windsor-Detroit crossing only two weeks ago, having nervously waited in customs for 45 minutes at 4:00 p.m. knowing I had a 9:00 p.m. flight in Toronto to catch.

However, if the story was "Federal Government loans $550 million to the Flames and Oilers for new arena projects" it would be front page news. You can argue whether more Canadians will use the new bridge versus hockey rinks in Calgary and Edmonton but there seems to be a media bias (or a personal bias) against those types of projects.

Not picking on you at all, but this has been front page news for fair bit on the sites I have been looking at anyway (and newspaper). I finally posted it as I was surprised that no here had. And, even more surprised that pretty much no else seems to have heard about it.

[burn_this_city]

I'm kind of surprised michigan wasnt able to get some stimulus money for this project. After all these kinds of infrastructure projects are what spurs economic development.

[Bigtime]

Baird said the $5-billion project connecting Highway 401 with I-75

Read more: http://www.cbc.ca/canada/windsor/sto...#ixzz0mbSHOEV1

5 billion dollar bridge? McIver could have it built for only 1 billion.

[burn_this_city]

Originally Posted by Bigtime

5 billion dollar bridge? McIver could have it built for only 1 billion.

Pretty sure there is miles of highway connected to that cost.

[Bigtime]

Originally Posted by burn_this_city

Pretty sure there is miles of highway connected to that cost.

He'd still get it done for 1 billion, they're probably using some fancy latte sipping Euro road architect for the project.

Also: Swoosh!

[DFO]

Originally Posted by Sidney Crosby's Hat

I personally find it funny that there's no real outcry over this.

My own opinion, I can see the merits of it - I did the Windsor-Detroit crossing only two weeks ago, having nervously waited in customs for 45 minutes at 4:00 p.m. knowing I had a 9:00 p.m. flight in Toronto to catch.

However, if the story was "Federal Government loans $550 million to the Flames and Oilers for new arena projects" it would be front page news. You can argue whether more Canadians will use the new bridge versus hockey rinks in Calgary and Edmonton but there seems to be a media bias (or a personal bias) against those types of projects.

Well to be fair that boarder crossing facilitates most of trade with the US and contributes to big chunk of the Canadian economy. Rinks in Calgary & Edmonton - not so much.

[Canada 02]

Originally Posted by valo403

Toll projects are always risky in terms of revenue generation, but when they work they pay out pretty impressively. Macquarie has seen the best and worst with their toll roads, it's an interesting sector that I was surprised to learn is dominated by private interests.

the owners of the existing Ambassador Bridge want to build their own second bridge, but their permit was rejected by the US Coast Gaurd. The numbers on their website show over 10000 commercial vehicles per day; reports in the Detroit media estimate that more than tripling in the next 25 years to over 35000/day. Thats why the private company is opposed to the competing public project. Sounds like millions if not billions of dollars at stake for the bridge itself as well as the area and traffic immediately surrounding the bridge projects.

"150,000 jobs in the region, and $13 billion in annual production depend on the Windsor-Detroit border crossing ..... and 25% of all merchandise trade between the US and Canada cross the bridge"

[CaptainCrunch]

Wait a minute, we're giving a half million dollars to a chick.

She'll probably blow it on shoes, and then try to hide the credit card bills.

[Table 5]

I don't really think Michigan is in a position to be offended. Swallow your pride and take the money.

[Azure]

Originally Posted by Canada 02

"150,000 jobs in the region, and $13 billion in annual production depend on the Windsor-Detroit border crossing ..... and 25% of all merchandise trade between the US and Canada cross the bridge"

And that is why most of us seem to be on board with it.

Building rinks in Edmonton/Calgary only spurs development by creating jobs to build the rinks themselves.

This bridge does so much more.

[Sidney Crosby's Hat]

Originally Posted by Azure

And that is why most of us seem to be on board with it.

Building rinks in Edmonton/Calgary only spurs development by creating jobs to build the rinks themselves.

This bridge does so much more.

But there already is a bridge (and a tunnel) and a company has offered to build it privately but it was rejected.

The rinks in Edmonton and Calgary would also help spur economic development in those cities.

And I'm not just picking on the bridge, the 23rd ave overpass in Edmonton used provincial dollars and cost $300 million.

EDIT: Also not saying I disagree with the overpass - OR the bridge in Windsor (public or private). I think all these projects need to happen.