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If BART extends to San Jose, all of Santa Clara County would reap the economic benefits, according to an economic impact study commissioned by the Valley Transportation Authority. The 13-page study estimated that by 2030 the county's gross product would increase between $4 billion and $7 billion and travel time savings would total between $2.5 billion and $4.7 billion. Employment figures are also expected to increase by between 1,600 and 5,700 jobs in Santa Clara County.
"I think that it's another demonstration that while the project is an expensive project, it still should be looked at as an investment that will pay off for the next 30 years and even the next 100 years," VTA General Manager Michael Burns said. "With 98,000 riders a day - that's a lot of people getting benefits from the system." Real estate around the proposed path would also become more valuable. The study found that demand would increase for housing, office space, retail space and hotel rooms in the area within a quarter-mile radius of six proposed stations: Milpitas, Berryessa, Diridon/Arena, Alum Rock, Downtown San Jose and Santa Clara. Sites such as the 120 acres owned by the Bumb family on Berryessa Road would increase in value if BART is allowed to extend to San Jose. The long-term economic benefits associated with new land development would be expected to contribute between 2.4 percent and 2.7 percent of the additional total gross regional product. Some of the conclusions were less optimistic. The study also estimated that the additional workers would spend only 5 percent of their income in Santa Clara County. Bay Rail Alliance Executive Director Margaret Okuzumi questioned why the estimate was so low. "What is the economic benefit for Santa Clara County?" Okuzumi said. "Our county is being asked to pay this tax when most of the benefits would go to other regions." Burns said the study figures were low because assumptions were made on the conservative side. The transit agency commissioned the study to improve its chances of receiving federal funding needed to build the $750 million project. The approval of the 16-mile extension from Fremont to San Jose also depends on the passing of Measure B in the November election. A two-thirds approval of the measure would raise the county's sales tax by one-eighth of a cent and bring in an estimated $42 million for operating funds. The VTA can't receive the federal funding unless the operating costs are covered. The $440,000 study was conducted by Wilbur Smith Associates, a transportation and infrastructure consulting firm, and will be part of the VTA's application for federal funds Cathy Weselby can be reached at 408.299.1821 or
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http://sanjose.bizjournals.com/sanjose/stories/2008/10/20/story13.html
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