RDA gives $17.5 million nod for new rail cars

VALPARAISO | South Shore commuters are one step closer to having 14 new double-decker rail cars thanks to a $17.5 million nod from the Northwest Indiana Regional Development Authority.

The RDA gave preliminary approval at its board meeting Tuesday night to an agreement with the Northern Indiana Commuter Transportation District giving $17.5 million for the new rail cars.

"This is the first tangible opportunity to improve public transportation that benefits both of our counties," said RDA Board Member Howard Cohen.

In the spring, NICTD officials thought the purchase would involve 12 cars at about $39 million, but bids came back for 14 cars two weeks ago at a cost of $10 million greater than anticipated.

Jerry Hanas, general manager for NICTD, told the RDA board he was concerned that if the money wasn't approved quickly, the opportunity to get the new cars might fall through.

"I really believe if you don't get this commitment, we'll have to unwind this transaction," Hanas said.

NICTD is planning to purchase 14 new cars at a total cost of $50.6 million. Other funding sources NICTD is seeking include those from the Indiana Department of Transportation and the Northwestern Indiana Regional Planning Commission.

Debt reserve financing in the form of $6 million from the $17.5 million from the RDA and additional funding from INDOT and NICTD are also being planned, according to NICTD.

The RDA agreement approved Tuesday night allows attorneys from the RDA to meet with attorneys from NIRPC to draft the plan, which is expected go before the RDA board at its January meeting.