People in the path of a proposed but floundering high-speed rail line between Houston and Dallas last week filed a letter that in many ways labels Texas Central Railroad the little engine that will never be.
They think it can’t. They think it can’t. They think it can’t.
“Granted, Texas Central appears to be doing things,” attorney Patrick McShan said in the letter sent to the company on Sept. 29. “But none of the things Texas Central is now doing suggest in any manner whatsoever that it does, in fact, intend to construct the project.”
The planned rail line, once touted as mere months from construction, now is more paperwork than planning. Since its former CEO left in June, the company has said it is securing financing, but shown little other signs of life, beyond a July 8 statement after the Texas Supreme Court affirmed its right to use eminent domain to acquire property.
“Texas Central has made significant strides in the project over the last several years and we are moving forward on a path that we believe will ensure the project’s successful development,” the company said then. “We look forward to being able to say more about this at an appropriate time in the near future.”
The company did not respond to a request for comment on Friday.
Citing various examples, McShan’s letter said it appears Texas Central is operating as a shell of a corporation, paying property taxes it owed in eight of the 11 counties where it owns property, but still owing HOA dues for numerous locations and property taxes in Ellis County. It reportedly, McShan said, has lost investment from Japan once considered necessary for the project, and has sold some of the properties it acquired during six years of planning and design.
The company never has applied for any construction permits related to construction of the line, though it has certain federal clearances.
“We believe Texas Central has not filed, nor will it ever file, an application for a construction permit for two reasons,” McShan wrote. “One, Texas Central does not want to make these required financial disclosures; and two, it knows that if it did make these disclosures its application would be summarily denied.”
See here and here for the previous depressing examples. I note that the last post on the Texas Central Twitter page was July 8, in response to that last story. If you can’t even issue a pro forma denial to this sort of thing, it is eminently reasonable to wonder what the heck is going on over there, and if anyone is doing anything. I’d love to find some reason for a bit of optimism, but right now that just ain’t there. Please prove me wrong, guys.
this is why you use the government to accomplish public goods. too bad we don’t have one.
The way I read the letter (or perhaps press release) that comes from a lawyer representing the railroad’s opponents is “Texas Central didn’t do anything while it was being sued to keep it from doing anything, therefore it can’t go forward now”