The Foothill Gold Line Construction Authority has released a report explaining the economic benefits expected to come to the region from the upcoming construction and operation of the 12.3-mile Foothill Gold Line light-rail extension.
Beacon Economics, an economic research and forecasting firm based in Los Angeles, produced the report, entitled, "Economic Impact Study of the Foothill Gold Line Glendora to Montclair Segment." The segment is the final of a three-phase project to construct the Gold Line between Los Angeles and Montclair.
The report quantifies the economic impact officials expect to result from the $1.5 billion investment the region is making in the six-station project. Job creation, economic output, labor income and tax revenue are among the predicted benefits.
"We know that investing in public infrastructure projects like the Gold Line are economic engines," said Habib F. Balian, CEO of the Foothill Gold Line Construction Authority. "But it is always impressive to see just how much each project directly benefits our region in job creation, economic activity and future revenues — it is a significant return on investment."
During the construction phase, the Glendora to Montclair segment is expected to generate nearly 17,000 jobs, more than $2.6 billion in economic output, more than $1 billion in labor income and nearly $40 million in tax revenue for Los Angeles County.
In addition, the 26-page report details that the operations of the six-station extension are expected to generate an annual benefit to the county of more than $52 million in economic output, $17 million in labor income and nearly $800,000 in tax revenues, while generating 277 jobs.
The report highlights the secondary economic benefits for the region, as well, which would be derived from private investments in transit-oriented development already made or scheduled within a half-mile of the six future Gold Line stations.
Officials say the extension has already drawn $1 billion in private investments in residential and commercial development, including nearly 1,200 residential units near the future Montclair station and 1 million square-feet of commercial property.
Nearly $600 million in development is also set to occur along the corridor, with more than 1,800 new residential units and 10,000 square-feet of commercial space in the works within a half-mile of a future station.
"The economic story of the Gold Line must also include the long-term private investment that is happening around these light rail stations as the area evolves from what was historically industrial land to suburban communities," Balian added. "There is a unique opportunity along this light-rail line to see extensive growth, allowing the region to add much-needed housing and jobs near our expanding county rail system; adding to the economic benefits of our investment well into the future."
The economic impact report is available to view online here.