Central Florida Commuter Rail Despite failed deal, rail plans will proceed.

The Florida Dept. of Transportation plans to proceed with design of a $615-million commuter rail system in Central Florida, even though the Florida Senate failed to approve a deal with CSX Transportation to purchase the track and offer the railroad liability coverage. The House had passed a similar bill 77 to 49 on April 29.

“The decision has been made by the department [of transportation] to continue with right-of-way acquisition and design, and we will work out the differences that need legislative approval, [such as liability coverage],” says FDOT spokesman Steve Homan. “It’s that important to Central Florida.”

The 61-mile Florida Commuter Rail system is to run on CSX-owned tracks from Deland to Poinciana. In November, FDOT signed a transition agreement with CSX to purchase the rail line for $150 million, with the state providing $200 million in no-fault liability coverage. That agreement remains in effect until after the 2009 legislative session, says Marianne Gurnee, spokesperson for Central Florida Commuter Rail.

The Federal Transit Administration has committed to paying half of the cost, with the difference split between state and local governments. U.S. Rep. John L. Mica (R-Fla.), the ranking Republican on the U.S. House of Representatives Committee on Transportation and Infrastructure who pushed for federal funding, said during a press conference that the state legislature’s action will not stop that federal allocation, due to a “full-speed ahead provision” in the federal bill. “At a time when we are facing $4-a-gallon gasoline, it’s a travesty not to have a project like this move forward,” Mica says.

The first 31-mi phase was scheduled to open in early 2010. Gurnee says the legislative issues may delay the project by six or seven months, but the holdup should not negatively affect the budget, due to contingencies the state has built into the plan.