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HHI Draft 8 -Nov. 4, 2010 ~L" ~~~ ~~~~NC3RTHSTAR ~` C4yRR"t„"DOR FOR IMMEDIATE RELEASE [Date] NEWS RELEASE Contact: Tim Yantos 763-323-5692 Second Phase of Northstar Commuter Rail to be Placed on Hold After consultation with project partners, Northstar Corridor Development Authority to respond to technical analysis ANOIG4, Minn. -The Northstar Corridor Development Authority (NCDA) Executive Committee today decided to recommend to the Authority that the federal application for~Northstar Commuter Rail's St. Cloud extension be placed on hold. The recommendation was made after careful review of the Federal Transit Administration's required technical analysis "While we have remained committed to tie original vision for Northstar Commuter Rail service from St. Cloud to downtown Minneapolis, the current data cannot justify the costs of expanding Northstar at this time," said Felix Schmiesing, Sherburne County Commissioner and NCDA member. "We do not take this decision lightly. We have examined the technical analysis, fully explored potential expansion models and have come to this conclusion in agreement with our project partners. In the end, placing the Northstar expansion on hold for now is the responsible action as stewards of taxpayer money." The NCDA -together with Metro Transit, the Minnesota Department of Transportation (Mn/DOT) and other partners on Northstar's Project Management Team -has been aggressively stydying the feasibility of Northstar's extension since Northstar Commuter Rail and Northstar Link commuter coach bus service began in November 2009. Plans for commuter rail all the way to St. Cloud have been part of the project's original vision since the NCDA was created more than a dozen years ago. However, the worst recession in 70 years, high unemployment rates, shifts in traffic volumes, and gasoline and parking price fluctuations have hampered commuter rail ridership growth on the project's first phase. Additionally, projected ridership for the commuter rail extension to St. Cloud and other factors do not meet the strict standards for federal matching funds nor would they allow Northstar to successfully compete against other transit projects currently under development across the country. Despite the challenges the current marketplace presents, the initial phase of Minnesota's first commuter rail line has proven to be a reliable transit option for commuters: ^ Northstar customers have ridden more than 16 million passenger miles since service began last November. ^ Northstar has developed a loyal customer base, which is expected to grow as the economy improves and workers seek better commuting options. - More -