Bad start for Gov.-elect Scott Walker. Is Jax interested?
QuoteTalgo: ‘We can’t stay and manufacture in Milwaukee’
Published: December 9, 2010
(http://dailyreporter.com/files/2010/12/talgopic.jpg)
Talgo Inc., the Spanish manufacturer of high-speed train cars, will abandon its plant in Milwaukee in 2012, according to Nora Friend, a spokeswoman for the company.
The decision was made after U.S. Secretary of Transportation Ray LaHood announced Thursday that the federal government was rescinding the $810 million allocated to Wisconsin. Wisconsin Gov.-elect Scott Walker had strongly opposed the state’s high-speed rail plan.
“We can’t stay and manufacture in Milwaukee without the high-speed rail to Madison,†Friend said. “This is terrible news.â€
Friend said the state’s decision to back away from the high-speed rail project sends a terrible message to businesses considering locating in the state.
“We were encouraged by the business community,†Friend said. “We are really discouraged by what has happened.â€
State residents should also be discouraged, she said. Talgo and the construction of the rail line would have created jobs badly needed in the construction industry.
“For anybody to think that there is another $800 million to invest in another project is foolish,†she said. “There is no other pool of money.â€
She said the company has not made a decision on where it would move its operations. The plant was supposed to make trains for all of North America.
full article: http://dailyreporter.com/blog/2010/12/09/with-high-speed-rails-demise-talgo-to-leave-milwaukee/
QUE TONTO Stephendare!
Jacksonville could have this laid in our laps and we probably won't even write a post card. Old Ford Plant anyone? ITS ONLY OPPORTUNITY KNOCKING - GIVE IT TO THEM!
OCKLAWAHA
absolutely
Quote(http://cbschicago.files.wordpress.com/2010/11/scott_walker_billboard_1116.jpg?w=420)
Democrats in Wisconsin are hurling some angry sarcasm at Wisconsin Gov.-elect Scott Walker, in the form of a billboard.
The billboard takes Walker to task for his decision to reject $810 million in federal stimulus funds for a high-speed rail line between Milwaukee and Madison.
Located on Interstate 94 just off Highway 100 in the Milwaukee suburb of West Allis, Wis., the billboard has a picture of the Republican along with the lines, “Dear Scott Walker, Thanks for the money & jobs! Love, Illinois.â€
http://chicago.cbslocal.com/2010/11/16/wisconsin-dems-mock-gov-elect-with-billboard/
^ One of my friends from WI sent me a pic of the billboard last week. Hilarious! It is along the route Walker travels to get to and from Madison. I wonder what goes through his head when he reads it?
Nice opportunity perhaps, but Wisconsin rejected it for a reason.
I wonder what incentives Talgo wants to relocate. TBH, it doesn't take alot to house a railcar assembly.
Essentially, a warehouse with pull through rail and a 100 ton roof lift.
Old Ford plant isn't viable due to its crumbling riverside section, would need some bucks to shore it up.
If this was to happen it would have to be on the west side I imagine.
^ Actually, Talgo has already set up a manufacturing facility in Milwaukee. They were given incentives to locate in WI and part of the incentive was knowing that WI was serious about rail and wanted to be a leader in the nation. With new anti-rail leadership in WI, Talgo is basically saying they don't want to be employing workers in a state that doesn't support rail. I'm sure they have other reasons as well, and from their point of view, they have the upper hand. They had a pretty sweet deal when they started building in Milwaukee, so I think this is kind of a slap in the face to new leadership that doesn't support their industry.
Milwaukee considering filing a suit against the state over Talgo. Illinois has already approached Talgo about relocating to their state.
QuoteTalgo pulling out of Milwaukee in 2012
Talgo Inc. will shut down its Milwaukee train manufacturing operations in 2012, leaving only a maintenance base, because plans for a high-speed rail line between Milwaukee and Madison have been abandoned, the company announced Friday.
The Spanish-owned company acted after the federal government withdrew nearly all of the $810 million in stimulus funding for the rail project, which Governor-elect Scott Walker had vowed to kill. Talgo had hoped to land contracts to build two trains for that line.
Talgo is in the process of hiring 125 workers to build two trains for Amtrak's existing Milwaukee-to-Chicago Hiawatha line and two trains for Oregon. Those contracts will keep the company's north side plant open through the spring of 2012, said Nora Friend, a Talgo vice president.
The company will keep a maintenance base in Milwaukee to service the two Hiawatha trains after manufacturing ends, Friend said.
"In our view, this is even more tragic for the state of Wisconsin than it is for Talgo," Friend said in a written statement. "This is the rejection of creation of direct and indirect jobs, of added tourism, of the increase in state income taxes with permanent employment and . . . lost opportunities (from) the establishment and growth of the vendor supply chain, among many other benefits."
State projections show rail-related employment would have peaked at 4,732 jobs in 2012, counting those in direct construction, at supply companies and in government.
Operating and maintaining the trains would have created 55 permanent jobs. Supporters expected the project's spinoff effects on the economy to create many more jobs.
Friend's statement didn't say where Talgo would move, although she said it was likely to be a state that was expanding its rail lines. Illinois Gov. Patrick Quinn has invited Talgo to relocate to his state, which is developing high-speed rail routes from Chicago to St. Louis and other cities.
The 110-mph Milwaukee-to-Madison line would have been an extension of the Hiawatha and eventually could have been extended to the Twin Cities, as part of a Midwestern network of fast, frequent trains.
Although Wisconsin's federal allocation would have covered all construction costs, Walker said he didn't want state taxpayers to pick up $7.5 million a year in operating costs, after subtracting fare revenue. Revised ridership and cost estimates could have reduced taxpayers' share by $2.8 million or more, and the state could have used federal aid to cover as much as 90% of the taxpayer share, as it does on the Milwaukee-to-Chicago leg.
Walker had said he wanted Talgo to stay in Milwaukee.
"Governor-elect Walker's transition team reached out to Talgo in an effort to keep them in Wisconsin," Walker transition spokesman Cullen Werwie said in an e-mail. "While he is disappointed that the company made the decision to leave, the fact that the Madison-to-Milwaukee train line is dead is in the best interest of Wisconsin taxpayers. By reducing government spending - like Governor-elect Walker was able to do by successfully stopping this boondoggle - he is going to fulfill his campaign promise of ensuring Wisconsin has a business climate that allows the private sector to create 250,000 new jobs."
City suit possible
The city invested several million dollars in renovating the former Tower Automotive property to accommodate Talgo. Milwaukee Mayor Tom Barrett has said city officials may explore legal action if Walker's stand wipes out that investment.
Barrett said he had talked to Talgo President Antonio Perez on Thursday in an effort to keep the company's plant in Milwaukee.
"Our frustration is that we're still working with Talgo while the new (state) administration is waving goodbye," said Barrett, who lost the governor's race to Walker. "Politics trumped partnerships here. . . . This is a part of the city that is desperately in need of family-supporting jobs."
The company had appealed to the Milwaukee business community to publicly back the project, and Friend had pointed words about that.
"Talgo is also disappointed that the business community did not speak about the facts on this project," Friend said. "A basic return-on-investment analysis would show that even if the state of Wisconsin had to pay the full operation subsidy of $7.5 million, the benefit of investing $810 million would clearly surpass the net cost. Talgo was encouraged by the business community to move to Wisconsin, and they were silent about the very same facts that made this project the only one in the nation that qualified to be fully funded by the federal government."
Top officials at the Metropolitan Milwaukee Association of Commerce did not return calls seeking comment.
http://www.jsonline.com/news/statepolitics/111686184.html
The Madison Mayor, Dane County Executive (Madison is located in Dane County), and Milwaukee officials all tried to get Walker to sit down and talk, even offering to help cover the annual operating costs for the state in their own budgets. He refused to speak with any of them. His pockets are lined with road builders and that's all he cares about. How does he expect to create a diversified business climate that is welcoming when he refuses to look at the larger picture?
Quote from: spuwho on December 12, 2010, 02:57:04 PM
Nice opportunity perhaps, but Wisconsin rejected it for a reason.
really...could it be politics?
Walker said it was too expensive and wouldn't have good ridership...but when told he couldn't just switch the money from HSR to roads, Walker said ok...as long as the train didn't go through Madison (the second largest city in Wisconsin).
Quote from: spuwho on December 12, 2010, 02:57:04 PM
Nice opportunity perhaps, but Wisconsin rejected it for a reason.
I wonder what incentives Talgo wants to relocate. TBH, it doesn't take alot to house a railcar assembly.
Essentially, a warehouse with pull through rail and a 100 ton roof lift.
Old Ford plant isn't viable due to its crumbling riverside section, would need some bucks to shore it up.
If this was to happen it would have to be on the west side I imagine.
Actually having been inside several times, the old Ford Plant might make a great if not easy conversion. It has a length for several rail cars en train. The place is all brick on the outside and for the most part steel throughout. A good sand/pellet blasting job and some paint would go a LONG way to making it nearly turn key. It also has rail the full length both inside and outside on the north of the building. The old switch onto the Talleyrand Terminal Railroad is gone and some pavement is over the old tracks but thats an easy fix too. The wharf is dilapidated in only one area which is probably the result of river scour, and this area is beyond the east end of the building, nearly all of the building if not whole place is sound, save for said wharf. Deep water channels are within an easy reach and several fairly large tows have been seen moored there over the last several years. Its just one example of available spaces around Jacksonville, but its one that would fit nicely and is in fact the same shape maybe a bit larger then their facility in Milwaukee. Funny thing now that the exit from WI seems certain, Chicago real estate people have just put a big factory with rail spur on the market, known as the Behr South Parcel, I don't think it's a good fit based on layout, but it was a Ford Stamping Plant. OCKLAWAHA
Quote from: tufsu1 on December 12, 2010, 07:44:18 PM
Quote from: spuwho on December 12, 2010, 02:57:04 PM
Nice opportunity perhaps, but Wisconsin rejected it for a reason.
really...could it be politics?
Walker said it was too expensive and wouldn't have good ridership...but when told he couldn't just switch the money from HSR to roads, Walker said ok...as long as the train didn't go through Madison (the second largest city in Wisconsin).
When dealing with public funds, of course there are politics.....
http://www.jsonline.com/blogs/news/88241122.html
Talgo (Spanish) deal was the creation of the previous administration, an US based competitor was unable to bid (Super Steel)
Having Wisconsin bail is causing serious issues in the long term plans of the Midwest HSR Plan.
http://chicago.cbslocal.com/2010/11/26/other-states-may-suffer-if-wisconsin-rejects-rail-line/
But it also notes that the new Gov. is willing to spend the existing state share (810 Mil) on the existing Amtrak service upgrades.
Where do you think Talgo would rather have a plant?
(http://media.jsonline.com/images/mjs-tower_talgo-nov-2010.jpg)
or here:
(http://www.metrojacksonville.com/photos/thumbs/lrg-3546-p1080198.JPG)
Is that the Milwaukee facility?
(http://assets.bizjournals.com/milwaukee/blog/real_estate/2010/11/talgo-building002.jpg)
THIS IS THE TALGO PLANT IN MILWAUKEE
Based on their previous choice I'd say the second one... Besides you can swim off the end of the lot in Milwaukee, you'd get mugged. Remember it generally doesn't snow in Jacksonville.
OCKLAWAHA
(http://dailyreporter.com/files/2010/12/Talgo.jpg)
This is where their "Ford Plant" like building joins their newer brick and metal building. Of course to do that here you wouldn't have to engineer snow loads. Also the interior shots all appear to be within either the older building or they used our Ford Plants blue print for the work floor.
OCKLAWAHA
Quote from: spuwho on December 12, 2010, 09:03:21 PM
But it also notes that the new Gov. is willing to spend the existing state share (810 Mil) on the existing Amtrak service upgrades.
Amtrak doesn't serve Madison....and there is the story!
(http://dailyreporter.com/files/2010/12/talgopic.jpg)
Kind of weird ain't it?
(http://lh3.ggpht.com/_bQsuhPJduqQ/TQWJR0_SPRI/AAAAAAAADQI/a3E8FB9sbBc/s800/FORD%20PLANT%20III.JPG)
(http://lh5.ggpht.com/_bQsuhPJduqQ/TQWJSDDjuPI/AAAAAAAADQM/Vr4eI78xvzs/s800/FORD%20ASSEMBLY%20PLANT%20RAIL.JPG)
(http://lh4.ggpht.com/_bQsuhPJduqQ/TQWJql7k5mI/AAAAAAAADQQ/1UeFHnAXc5E/s800/FORD%20PLANT%20II.JPG)
Just one of the little extra's that this site would offer...
OCKLAWAHA
our Ford plant has rail lines inside and out, and through site
damage is just to wharf