#United States #Metro A Line #Claremont #Claremont Extension #Kleinhenz Economics

Major Economic Impact from the Claremont Extension of Metro A Line

The newly released report by Kleinhenz Economics reveals that the Claremont extension of the Metro A Line is poised to deliver substantial economic benefits to Los Angeles County. This project, which involves a 2.3-mile light rail extension, is expected to generate impressive figures during its construction phase from 2026 to 2032.

Key Findings of the Report

According to the study, the investment in the Claremont extension will yield over $1.1 billion in economic output, while directly creating more than 4,700 jobs. The earnings from these jobs are anticipated to exceed $481 million, which translates to an average annual income of around $101,000. Besides job creation, the construction activities are expected to produce more than $154 million in tax revenues at various levels of government, with Los Angeles County projected to receive over $20 million from these taxes.

This report highlights an impressive return on investment: for each $1 million spent on the extension, an estimated total economic output of $1.6 million will be generated in the region.

A Catalyst for Future Growth

Foothill Gold Line Board Chair and Claremont Vice Mayor Ed Reece emphasized the importance of this project, stating, "It's not just a rail line; it's an economic catalyst for Los Angeles County." By connecting Claremont to metro services, the extension represents a transformative investment that promises lasting economic advantages for the community.

As passenger operations commence, the forecasts remain optimistic. Operating the rail line is expected to result in even more significant returns, generating $7.6 million in total economic output for every $1 million spent on operations. During the initial three years of passenger service (2032-2034), the extension could deliver nearly $460 million in economic output and support around 1,200 jobs with an average annual income of $137,000. Furthermore, it is estimated that more than $123 million in total tax revenues will be produced in this period alone, with approximately $22 million directed to Los Angeles County.

Long-Term Benefits Beyond the Report

Despite the impressive findings, Kleinhenz Economics cautions that the actual economic impact may surpass these estimates. The report does not fully account for the local economic activity generated by new businesses and residents flocking to areas near the rail stations. As the Metro A Line rides become available, it is likely to spur transit-oriented development that will elevate property values and promote lasting community investments.

Additionally, the extension is set to mitigate traffic congestion and lower vehicle emissions, thus contributing to improved public health outcomes.

About the Organizations Involved

The Foothill Gold Line Construction Authority, an independent agency established by the California State Legislature, has overseen this project. It has successfully completed various segments of the light rail system since 1998, emphasizing its commitment to delivering on time and within budget. A dedicated partner in this endeavor, Kleinhenz Economics provides expert analysis on urban and regional economic issues, boasting over three decades of experience.

In light of this insightful report, stakeholders, residents, and policymakers in Los Angeles County can look forward to an economic revitalization stemming from the Claremont extension of the Metro A Line.

For more details on the economic impact report, visit Foothill Gold Line's website.