Ohio not on the hook if rail project falls through

March 25, 2010 at 12:00a.m.

Associated Press

COLUMBUS

Ohio wouldn’t have to repay $25 million in stimulus money if the state decides to scrap plans for passenger train service between Cleveland and Cincinnati, the Federal Rail Administration said Wednesday.

The answer was in response to Senate President Bill Harris, a Republican whose support of the project is needed to release the first part of a $400 million federal grant awarded to Ohio in January.

Harris had questioned whether the $25 million, which is needed to complete engineering and design work, would have to be repaid if the state later backs out of purchasing trains and finishing the project.

Mark Paustenbach, a spokesman with the Federal Rail Administration, said that’s not the case, though any engineering studies paid for with the money would have to be completed. Ohio has until Sept. 30, 2017, to spend the entire $400 million or forfeit the balance, he said.

“Our intent, obviously, is to see the project through to construction and operation,” Paustenbach said.

Harris said that while he is pleased to know no strings are attached on this portion of the project, he remains uncomfortable in giving the OK.

He continues to question whether the rail service would draw enough riders. Early estimates, based on an Amtrak study last fall, predict 478,000 riders in the first year of operations. The analysis was conducted by AECOM, a Los Angeles-based engineering firm that is helping London develop a master plan for the 2012 Olympic Park.