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A maintenance facility located perhaps midway between Rochester and the Twin Cities
(perhaps in Cannon
Falls, allowing for future service access)
Significant activity related to a public-private partnership has also occurred recently. Two
separate investment
groups have approached the project, interested in fully developing the project with the
following elements:
Provide direct domestic and foreign investment in the project to complete preconstruction planning and
preliminary design activities and to design, build, own, operate and maintain the project.
Provide substantial private real estate development at and around station locations.
Develop manufacturing facilities in Minnesota for high-speed trainsets to serve North,
Central, and South
American markets. There are currently no such facilities in the Western Hemisphere.
No local or state capital funding contribution
No operating subsidies
Right-of-way owned by State of Minnesota, with lease payments directed to Highway Fund
Some need for state planning funds until public-private partnership is fully defined
Possibility of federal loans (RRIF loan) but no expectation of federal grants
I will continue to update you as we proceed.
Thanks,
Chuck
Direct: 612.581.3003
January 9, 2015
RAIL ISSUES
I have attached legislation that House Rep. Drazkowski is proposing for the Zip Rail. This
is a problem. Mayo is concerned that the Zip Rail may influence the Minnesota
Legislature in the DMC legislation or create other problems for Zip Rail. We are meeting
with Mayo representatives on Monday to determine how we should address this issue.
Commissioners Wilson, Brown, and Kiscaden will be present for the meeting and will
have additional information for you after Monday. Also attached, please see email
correspondence from Chuck Michael summarizing significant rail activity from the past
couple of weeks.
$30,000 will be used to increase the County reimbursement for my costs. We are
preparing documents to bring this amendment to the OCRRA meeting on January
20.
We are preparing a contract amendment for Parsons Brinckerhoff for $140,000 for
the additional Highway 52 work. I am working with Deb Palmer on the documents, and
plan to bring this amendment to the OCRRA meeting also on January 20.
2.
On January 2, Dan Krom and I received a Business Plan from North American High
Speed Rail Corporation (Joe Sperber and Mark Ritchies group) indicating their proposal to
fully fund the remaining planning, design, and construction of Zip Rail. We will be meeting
with them (Joe Sperber and Wendy Meadley) and Dan Krom on January 13 from 1:00-3:00
at MnDOT in St. Paul. You are welcome to attend.
3.
Be sure to read Gov. Daytons remarks on Zip Rail and DMC in todays paper:
http://www.postbulletin.com/news/politics/dayton-talks-about-transportationzip-rail- dmc/article_36efe469-ff3b-52c6-bce0-c44230e12259.html
Thanks,
Chuck
Direct: 612.581.3003
ADMINISTRATORS REPORT
TO:
STEPHANIE PODULKE
KEN BROWN
PAUL WILSON
MATT FLYNN
JIM BIER
SHEILA KISCADEN
LOUIS OHLY
RAIL ISSUES
North American High Speed Rail Group, the private organization investing in the Zip Rail,
will be in town on Friday, February 20, to meet with interested County Board members.
They will also be meeting with our area legislators that morning. We will have more
information to share with you as soon as arrangements are finalized. In the meantime,
Ken Brown is available if you have questions about this.
February 27, 2015
RAIL ISSUES
We have contracted with Pat Sexton, a lobbyist, to work on Zip Rail legislation and the
problem with
coupling Zip Rail and DMC legislation. We are compensating him $2,500 per month
through the
legislative session.
After the Board meeting on March 10, Wendy Meadley will be meeting with
Commissioners Flynn,
Ohly, and Podulke to brief them on the Zip Rail and the private organization that is
looking at
financing the project. Please see the attached memo.
A public meeting sponsored by MnDOT was held in Rochester on Thursday evening to
review the
State Rail Plan. Only three people showed up, one being a Commissioner representing
Cannon Falls.
MnDOT staff met with the Commissioner to learn more about his concerns; he is
concerned that a rail
station will be put in Cannon Falls. How ironic
From: Chuck Michael [mailto:chuck.michael@gmail.com]
Sent: Friday, February 20, 2015 12:01 PM
To: Devlin Richard
Cc: Caucutt Amy; Brown Ken
Subject: Rail Update
Richard,
Wendy Meadley and I met with the remaining area legislators this morning including Carla,
Kim,
and Nels. All are on board. Paul, Sheila and Jim were also there as was Pat Sexton. We are
looking
for a roll out of the private funding plan before March 20.
Joe Sperber meets with Charlie Zelle on Monday to craft the plan. Total private sector
investment is
$8-$10 billion including rail, stations, and significant other development in both the Twin
Cities,
Cannon Falls and Rochester. Governor Dayton will make the announcement when we are
ready.
Investors include a Whos Who in Minnesota as well as Fortune 500 companies together
with
foreign investment.
Amy or Sheila can give you a complete update.
And from the Post-Bulletin today, continued concerns about public funding:
http://www.postbulletin.com/news/local/zip-rail-criticized-again-in-goodhuecounty/
article_31d17f8d-e410-5fbd-af19-bdbb0650b6c8.html
Chuck
612.581.3003
March 6, 2015
Zip Rail
We recently received an email from Joe Sperber, the CEO/President of the North American
High Speed Rail Group. In the email, Mr. Sperber states the desire to transition from a publicfunded Zip Rail to a privately-funded project. Please see the attached email. There are issues
that require resolution or clarification. Document and data transfers are one issue, as they
were prepared with state funding from state bonds.
We have three identified options for transfer:
1) Develop the legal documents necessary to transfer the ZIP Rail work product to a private
party.
a) Potential problemspossible violation of Federal bond proceed usage. Requires State
Bond Counsel to provide opinion that the transfer is acceptable/okay.
b) We have no template to follow for developing the transfer documents.
2) Suggest to the private party that they request all work products through a Data Practices
request.
a) We would be obligated to comply; this would be the fastest route.
b) We would retain ownership of the original work product.
c) May mitigate any private-use problems with the bonds.
d) Would willingly help them use the work products.
3) Transfer the work product to MnDOT for them to do with as they see fit.
a) MnDOT may be slower in getting the work product to the private party because of their
bureaucracy.
b) We would be absolved of any Federal law violations regarding the bond proceeds; would
put the issue squarely with MnDOT.
We are working with MnDOT to determine which option they prefer, but the final decision
remains with the County Board.
We also need to clarify what is meant by their request for the Countys commitment to
ongoing
collaboration and support, as well as how they plan to use Chuck Michael, the project
manager. We will need a closed session with the Board to receive your direction
on how to proceed.
Re: Olmsted County / Twin Cities to Rochester MN High Speed Rail Corridor Project
Transition Letter Request
It is our desire to transition the current Zip Rail Project from a publicly funded
transportation project to a privately funded transportation oriented development
project with high speed rail corridor development in the center of it all.
At this time, North American High Speed Rail Group (NAHSR), a Minnesota company is
requesting the transfer of all rights and responsibilities related to the completion of
the Tier 1 EIS feasibility study, the service development and business plan
components. Additionally, if relevant and within the countys rights and
responsibilities, the right to go ahead with development upon successful
completion of the appropriate federal, regional and state level authorizations and
approvals including the Minnesota Department of Transportation.
In order to successfully transition this important economic development project for
Minnesota and the Southeastern region of Minnesota including: Olmsted,
Goodhue, Dakota, Ramsey and Hennepin (the affected counties along the proposed
corridor), the North American High Speed Rail Group requests the project
management collaboration and continuity of the current Project Manager, Chuck
Michael through 2015. This also allows for the significant relationships and
knowledge created and cultivated at the city, county and regional levels to continue
to be leveraged to the success of the project.
Page 1 of 2
The following are specific requests that the NAHSR would find helpful to our
continued public and private development efforts:
6.
Project Rights and Responsibilities Transfer- (as soon as possible- we would
like to go public with transfer during this legislative session)
7.
Project Documentation Transfer
8.
Project Data Transfer
9.
Commitment of Ongoing Collaboration and Support as is appropriate (Olmsted
County, City of Rochester, and Mayo related)
10. Ongoing Legislative Collaboration and Support as is appropriate to minimize
legislation that would impede the successful development and completion of the Twin
Cities to Rochester High Speed Rail corridor
11. Collaboration and Support as NAHSR continues to support the MN DOT Statewide Rail
Plan
We appreciate the opportunity to continue this important effort that Olmsted has
lead and sheparded to date. We at NAHSR look to continue that stewardship to
develop a comprehensive economic development project that will stage
Southeastern Minnesota for future economic development and growth for
generations to come.
Regar
ds,
Jo
e
Sp
er
be
r
CEO/President
North American High Speed Rail Group
jsperber@nahsr.com
612-819-6816 Cell
Riverview Office
Tower 8009
34th Avenue
S. 15th Floor
Bloomington, MN 55425
Page 2 of 2
March 13, 2015
RAIL ISSUES
We are waiting for Transportation Commissioner Zelle to give us approval to transfer the
ZIP Rail to
the private developer. Commissioner Zelle is planning to meet with Governor Dayton
sometime
during the week of March 16, 2015, seeking approval to move ahead forward with the
transfer to the
private developer.
March 20, 2015
RAIL ISSUES
The private investors for the Zip Rail were at the Capitol on Thursday morning, meeting
with State
and County representatives. Commissioners Brown and Kiscaden were present and can
provide you
with more information about how the meeting went. Please see the attached handout
used during the
meeting.
The people of Olmsted County have neither the desire nor the money to build
or run a multi-billion dollar, 90-mile passenger rail system.
14.
In fact, exactly because of the cost, as the Chair of the Olmsted County Board of
Commissioners, I hav welcomed the news that private enterprise wants to build and run
this project.
15.
If the Legislature needs to pass something saying Olmsted can't build or run a
railroad, just have language that says that.
16.
The language before you is quite complicated and could have far-reaching impact,
most of which wont be known until far into the future.
17.
On behalf of our constituents, we need to protect our ability to oversee and regulate
the project and, if warranted, be able to build things adjacent to the railroad like a bus
station or parking ramp for the convenience of our constituents.
18.
Page 1 of 3
Because we wont build or run a train system, and because we dont know
how the language could adversely affect any private option or our ability to meet
the needs of our constituents far into the futur we cant support the bill.
Again, if you dont want Olmsted County to build and/or run a railroad,
just say that simply.
If you have to pass something, make it simple: Olmsted County can't spend
money to build or run a railroad. Period. This language is too convoluted.
EXAMPLES
The article published in todays (April 24) edition of the Rochester Post Bulletin
contained inaccurate
information about the estimated number of patients coming from the Minneapolis/St.
Paul area. Mayo
Clinic was concerned about the article, so Chuck sent a correction to the Post Bulletin.
Please see
the attached email from Chuck Michael, dated April 24, 2015.
2nd Data Practices Request for Zip Rail
I have attached a copy the second data practices request received pertaining to data
about the Zip
Rail. Please see the attached email from Dave Mueller.
From: Chuck Michael <chuck.michael@gmail.com>
Date: April 19, 2015 at 9:49:06 AM CDT
To: ' Richard Devlin' <devlin.richard@co.olmsted.mn.us>
Cc: <brown.ken@co.olmsted.mn.us>
Subject: FW: NAHSR Group
Richard,
Here is Joe Sperbers response to MnDOTs questions. The leader for the rail division has
been
hired but is not yet public. I wont begin any discussions with them until there is a clear
direction
and MnDOT has finalized the MOU.
NAHSRs primary partner will be China CNR Corporation, the worlds largest manufacturer
and
builder of high speed rail with over 35,000 km in service throughout the world.
Chuck
From: Davis, Eric (DOT) <Eric.Davis@state.mn.us>
Sent: Thursday, April 9, 2015 12:25 PM
To: Joe Sperber
Subject: NAHSR Group
Joe
In preparing to brief the Governor, a few questions have come up about the NAHSR Group.
Specifically,
1. How / where are you incorporated?
Hi Eric, We have 2 soon to be 3 registered Corporations all in Minnesota. (I can give you EIN
Numbers if needed) Our Holding Company which is the company investors will invest in, was
formed in early 2014. It has a Full PPM and business plan which I can share. This Company is
currently has 3 founding shareholders, Joe Wang, Joe Sperber and David Melander, but will be
will have a 50-50% split between International investors and US investors. It will remain a
Minnesota Based Company.
We have two other subsidiaries which will have their own Leadership, The Rail division(formed
in 2014) which will be in charge of Constructing and Running the rail The Third will be a real
estate division (formed in 2015) which will own and operate all our Real Estate holdings. We
have hire specific Leaders which will be announced later this spring who come with many years
Nora,
We corrected the P-Bs statement on daily patient visits. Even if we had the number we
would not
disclose it we only look at total daily trips.
http://www.postbulletin.com/news/local/zip-rail-backers-make-their-case-inwashington-dc/
article_b035ea9b-4847-5665-bfc4-570d104aa83c.html
Chuck
From: Chuck Michael [mailto:Chuck.Michael@gmail.com]
Sent: Friday, April 24, 2015 11:49 AM
To: 'news@postbulletin.com'
Cc: 'Heather Carlson'; Wendy Meadley
Subject: Zip Rail
Tauren,
I realize you may be new to the project, and we appreciate your coverage. A few of your
numbers
came out a little egg-shaped so I thought I would clarify.
MnDOT contributed $2 million to the studies, and Olmsted County contributed $300,000
(not $2 million)
The statement He anticipates the number of daily patient visits to double from 10,000 to
20,000 after the medical center expands is incorrect. Today there are 10,000 daily trips
(not patient visits) from the Twin Cities to Rochester that include workers, patients,
visitors, caregivers, and others in aggregate. That daily total is expected to double to
20,000.
Cheers,
Chuck
Charles R. Michael, PE
Project Manager Zip Rail
Direct: 612.581.3003
Director
Intergovernmental Relations/Data Practices/Organizational Development
507-328-6026 (d)
mueller.dave@co.olmsted.mn.us
_______________________________
Olmsted County
151 4th Street SE
Rochester, MN 55904-3710
www.co.olmsted.mn.us
June 5, 2015
RAIL ISSUES
The Minnesota Department of Transportation (MnDOT) and the North American High
Speed Rail Group (NAHSR) are drafting a letter on behalf of Transportation Commissioner
Zelle, which will be released once the Governor signs off on current legislation. Joe Sperber
of NAHSR has been meeting with investors in China this past week, and was not happy that
the letter had not been released in advance. We are not certain of the effect, if any, this may
have on the outcomes of the meetings. Please see the attached email for information about
a recent meeting between MnDOT and Congressman John Kline.
Please also see the attached article as posted in todays edition of Politico (political
journalism organization based in Virginia). Apparently the state of Maryland is researching
alternative transportation options, including light rail lines (Purple Line) and magnetic
levitation (Maglev) trains.
From: Chuck Michael <chuck.michael@gmail.com> Date: June 5, 2015 at 10:11:47 AM CDT To:
<brown.ken@co.olmsted.mn.us>, 'Wilson Paul' <wilson.paul@CO.OLMSTED.MN.US>, ' Richard
Devlin' <devlin.richard@co.olmsted.mn.us>, 'Jim Bier' <bier.jim@co.olmsted.mn.us>, Matthew
Flynn <flynn.matt@co.olmsted.mn.us> Subject: FW: Rep. Kline
See note below from MnDOT regarding Zip Rail and Rep. Kline. Kline has been briefed on the private
sector funding approach and was satisfied. Further contact and briefings will occur with Rep. Kline
as we proceed.
Chuck
From: Phillips, Sergius (DOT) [mailto:serge.phillips@state.mn.us] Sent: Friday, June 05, 2015 9:44
AM To: Chuck Michael; Krom, Daniel (DOT) Subject: RE: Rep. Kline
MnDOT met with Pat Pelletier (Klines transportation staffer) about a number of projects, including
ZipRail. Kline is opposed to the idea. He is getting a lot of complaints from constituents, Pat said.
We updated him on the latest discussions, including the idea of private funding, and he was
satisfied.
Let me know if you have any additional questions.
Serge
POLITICO
Morning Transportation
A daily speed read on transportation and infrastructure
By Jennifer Scholtes
6/5/15 9:59 AM EDT
With help from Heather Caygle.
MARYLAND GOVERNOR EYES MAGLEV TRAINS:
Still holding out on approving or nixing the Purple Line that would connect Bethesda to New
Carrollton, Maryland Gov. Larry Hogan is out in Asia this week taking a look at an
alternative transportation option: maglev trains that promise to cut the trek between D.C. to
Baltimore down to 15 minutes. The governor took a ride on one of the magnetic levitation
trains on Thursday with the CEO of The Northeast Maglev, a company thats working with
the Central Japan Railway Company to bring to the U.S. the same kind of high-speed rail
line that connects Tokyo and Osaka at more than 300 mph. Maryland has applied for $27.8
million in funding the FRA is offering for U.S. maglev projects. And the governors office
says the federal grant comes with understanding that the Japanese government will be a
source of significant financial backing for the project, along with private-sector support.
The Action Committee for Transit, which has been pushing for the governor to back the
Purple Line, criticized the trip to Japan on Thursday. The Purple Line is funded and ready
to build," the groups president, Nick Brand, said in a written statement. "Maglev is in the
early planning stages. If the governor can fly to Japan and look at the maglev line, how
come he hasn't found the time to visit Silver Spring or Riverdale Park
June 26, 2015
The Technical Advisory Committee (TAC) and the Community Advisory Committee
(CAC) met
yesterday regarding the Zip Rail. Please see the attached email correspondence from
Chuck Michael
for additional information about the meetings.
As of yesterday, the Governor and Commissioner of Minnesota Department of
Transportation
(MnDOT) have not met to review a Letter of Agreement between MnDOT and the
private investors.
From: Chuck Michael [mailto:chuck.michael@gmail.com]
Sent: Friday, June 26, 2015 9:33 AM
To: Brown Ken; Devlin Richard; Wilson Paul; Kiscaden Sheila
Subject: Zip Rail TAC and CAC
On Thursday, June 25 we held meetings in Rosemount at DCTC for both the Technical
Advisory Committee (TAC)
and Community Advisory Committee (CAC). This was meeting No. 7 for the TAC, and the
first meeting for the CAC.
Membership lists for each are attached. We recently added several cities to the TAC
(including Byron, Pine Island,
Wanamingo, Cannon Falls and Zumbrota) and many attended. ROCOG attended via
conference call.
Both meetings went extremely well from our perspective. Both were well attended and
provided for excellent
dialogue between the committee members and the project team, clearing up numerous
misperceptions, rumors,
and disinformation. The CAC, in particular, was most beneficial as this group consists of
residents along the
corridors that have the greatest personal interest in the project and have been the most
vocal. We opened the
CAC meeting by asking each member to take a few minutes and share their reasons for
applying and their specific
interest in the project. They all appreciated an opportunity to speak and be heard.
The resulting dialogue cleared the air on critical topics such as no roads being closed, no
farms being split, no
impacts on emergency services, no school districts being split, and our intentions of using
existing highway right of
way on Highway 52 resulting in little or no impacts. Most were surprised as they came with
many fears that we
addressed right up front. Certainly there is more work to do here but it was an excellent
start.
A citizens group opposed to the project, Citizens Concerned About Rail Line (CCARL) are
members of the TAC and
advertised both meetings, asking that all their members attend to support their cause. Only
one showed up. In fact,
other than a MnDOT communications person and two from CARB, no one else attended.
There are several supporters of Zip Rail that sit on the CAC that we had not been aware of.
They were quite vocal
in their support and the need for the project. They include a mayors (Mendota Heights and
Dennison), a financial
analyst, transportation specialists, engineers, planning commission members, and
professional planners. CAC
members (27) were selected from 67 applications that were reviewed by members of the
TAC independent of the
project team.
A challenge remains with regard to benefits to those communities that will not have a
station. We discussed the
need for a maintenance facility to be located in a strategic location located somewhere
between Rochester and
the Twin Cities that would provide local jobs and tax base while allowing for a future
station if it can be justified.
We have more work to do on that but the discussion was well received.
There were virtually no questions, statements or discussion at either meeting that referred
to Olmsted County.
We can discuss further at your convenience.
Chuck
Direct: 612.581.3003
Page 1