Finance and Commerce teases me: High-speed link between Rochester, Twin Cities could pay for itself, report claims – Finance & Commerce:
“A high-speed rail line between Rochester and the Twin Cities would more than pay for itself with the extra economic benefits and tax dollars generated, according to a report released Monday by economic development officials in southern Minnesota. The report from Rochester Area Economic Development says a rail line would generate $27.54 billion in economic benefits, including …”
Alas, I don’t subscribe to Finance and Commerce, so I will have to make up the ellipsis
(1) $1 billion in added noise benefits. Since noise reduces property values, renters and new owners will be able to buy land for cheap.
(2) $10 billion in opportunity costs avoided. Since the HSR line will result in other bad construction projects avoided, and since we can’t afford everything, there is clearly a benefit here.
(3) $5 billion in added profits for the operators of the line. The line will cost billions to operate over time, so that must be a benefit to those paid to operate it.
(4) $3 billion in construction benefits. We are paying people to build the line, they benefit. Therefore all construction costs are benefits.
(5) $9 billion in development. There will be new development in Rochester and the Twin Cities. All of that can be attributed to the HSR.
(6) $.5 billion. There will be development taking place in Rochester that would otherwise take place in Mankato. That is another benefit.
(7) $35 billion. The Mayo Clinic won’t move to Phoenix.
Was I right?