Newsom’s move to halt state’s high-speed rail project could affect future development

Los Angeles /
Feb.February 13, 2019 09:00 AM
Governor Gavin Newsom and a rendering of the high speed rail in LA

Gov. Newsom’s surprise decision to halt plans for a high-speed rail project to connect the state’s major cities could have a major impact on development along that route.

That’s because such a system — which would have connected Los Angeles, San Francisco, Sacramento and San Diego — could have helped boost real estate development in outlying cities, otherwise too far for daily commuters to live.

During his State of the State speech on Tuesday, Newsom said the high-speed rail plan would “cost too much and… take too long.” The $77 billion plan was a signature initiative of Newsom’s predecessor, Jerry Brown.

Newsom’s decision puts plans for the massive project on hold, instead focusing the state efforts on a shorter 160-mile route between Bakersfield and Merced, according to a report in SF Gate.

Newsom said the state would use the rail line between Bakersfield and Merced as an “anchor” for economic investment into the Central Valley region and spoke of taking advantage of federal Opportunity Zones to boost development there.

The first phase of Brown’s plan for a high-speed rail would have connected San Francisco and Anaheim, with stops in San Jose, Bakersfield, Palmdale, Burbank, and L.A., among others.

The rail plan could have also helped ease the state’s housing crunch and housing prices, industry experts said, along with easing traffic congestion.

The major announcement also came after California’s high-speed rail authority nailed down a route through L.A. just four months ago.

Newsom’s office clarified after the speech that the governor was still committed to connecting L.A. and San Francisco, but his words at the State of the State put the project’s future in question.

“Right now, there simply isn’t a path to get from Sacramento to San Diego, let alone from San Francisco to L.A. I wish there were,” he said. [SF Gate]Dennis Lynch 


Related Articles

arrow_forward_ios
Gov. Gavin Newsom (Getty)

Statewide curfew means more bad news for restaurants, retailers

Statewide curfew means more bad news for restaurants, retailers
California Retailers Association president Rachel Michelin (iStock)

Skeptical retail lobby wants data to justify Covid restrictions

Skeptical retail lobby wants data to justify Covid restrictions
Gov. Gavin Newsom (Getty)

Statewide Covid spike forces more businesses to close

Statewide Covid spike forces more businesses to close
Anaheim Mayor Harry Sidhu and Los Angeles Mayor Eric Garcetti (Credit: Justin Sullivan/Getty Images)

Mayors to governor: Large theme parks must open sooner

Mayors to governor: Large theme parks must open sooner
Prominent Prop 19 supporters include Gov. Gavin Newsom (Getty, iStock)

Prop 19: What you should know about the home value reassessment ballot measure

Prop 19: What you should know about the home value reassessment ballot measure
Here’s everything you need to know about Prop 15 commercial property tax measure on the Nov. 3 ballot. (iStock)

Prop 15: Everything you need to know about the property tax ballot measure

Prop 15: Everything you need to know about the property tax ballot measure
Stephen Schwarzman, Gavin Newsom, and Michael Weinstein (Credit: Roy Rochlin/Getty Images, Justin Sullivan/Getty Images, and Tommaso Boddi/Getty Images)

The fine print: Three California ballot measures that would rock real estate

The fine print: Three California ballot measures that would rock real estate
Gavin Newsom (Credit: Greg Doherty/Patrick McMullan via Getty Images)

Newsom sets goal to conserve 30% of California land and coastal waters

Newsom sets goal to conserve 30% of California land and coastal waters
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...