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Plans for a subway line along Second Avenue date back to 1929. In fact, a plan developed in the 1960s resulted in the construction of several tunnel segments before work was suspended due to the city's financial crisis. In 1995, MTA began the Manhattan East Side Alternatives (MESA) Study. The project's goal was to recommend a course of action to reduce overcrowding and delays on the Lexington Avenue line, and to improve transit accessibility for residents on the Far East Side of Manhattan.

On April 12, 2007, ground was broken on the new subway line's first phase, which will run down Second Avenue from 96th Street to 63rd Street. The plan for ultimate build out of the line calls for the subway to run north to 125th Street and south to Hanover Square in the Financial District. The first phase of construction is estimated to cost $3.8 billion while construction of the entire project is estimated to cost around $13 billion. The first phase of what is now also known as the “T” line is scheduled to be completed in 2013 but there is no timetable for the rest of the project.

In November 2005, New York State voters approved the Transportation Bond Act, which contained $450 million for the project. This is in addition to the $1.05 billion the State has committed to the project and the anticipated federal commitment of at least $1.3 billion.

There are several sources of concern about the project. Some local residents are concerned about the relocation of residents in 60 residential buildings along the planned route. Partnership for New York City, a group of business executives, has published a study that, while not opposing the new subway, found that other projects, including a $6 billion rail link from lower Manhattan to Kennedy Airport, or the $2.1 billion No. 7 subway extension, would bring greater economic development. In addition, questions remain regarding financing of much of the rest of the line after the first phase is complete with full build out estimated to cost another $10 billion.

U.S. Senate Provides $250 Million for Second Avenue Subway

The Senate Appropriations Committee has allocated $250 million in funding for the Second Avenue subway, says Senator Charles Schumer. The first phase of the project, which is currently under construction, is slated for completion in 2013.

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Major Projects on Hold As Cement Truck Drivers Strike

Many major construction projects in the City have now been put on hold due to a cement truck driver's strike. Negotiations were unsuccessful yesterday, causing the union to strike which halted construction on projects already facing delays and budget issues. Continued negotiations are not expected to occur again until after the holiday weekend at the earliest.

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2nd Ave Businesses Seek Economic Relief

Business owners on Second Avenue, where construction on the Second Avenue Subway line has been ongoing, are asking Mayor Bloomberg to support state legislation that would give them relief to the economic strife that they say has been caused by the construction. They say that about half of the businesses in the construction area between 91st and 96th Streets have closed down and that remaining businesses have seen significant profit losses, prompting lay-offs of employees and potentially more closures. The legislation, if passed, would give $4 million to the Second Avenue businesses to help them attract more customers.

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Fears About the Fate of the 2nd Avenue Subway Line Arise

With the Metropolitan Transportation Authority (MTA) recently publicizing its inability to finish the Fulton Street Transit Center, some fear that the Second Avenue Subway project could end up not being completed either. The project has already begun construction in the Upper East Side, demolishing three miles worth of buildings, stores, and restaurants. The New York Post asserts that The MTA underestimated the cost for Phase 1, which was budgeted $4.34 billion in the capital-budget summary released in February. The newspaper also claims that the timeline for the project, with a 2013 completion date, is overly optimistic. It calls for action from Mayor Bloomberg and Governor Paterson to save the project.

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72nd Street Entrance for 2nd Ave Subway May be Reconsidered

The Metropolitan Transportation Authority (MTA) is planning to reconsider a proposed entrance on 72nd Street for the 2nd Avenue Subway after two lawsuits were filed by area residents. The residents are urging the MTA to complete another environmental impact study before moving forward on the project.

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MTA Chief Discusses Transit Issues at State of the MTA

Eliot Sander, Executive Director of the Metropolitan Transportation Authority (MTA), spoke about the future of the MTA and transit in New York City at the first annual “State of the MTA” address. Sander highlighted the progress of the 2nd Avenue Subway and said that revenue from congestion pricing was a “critical piece” in planning for the future of transit operations in the city.

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Delay on Second Avenue Project to Save Money

Riders expressed frustration at the MTA’s announcement that the Second Avenue subway line project would again be delayed. According to MTA CEO Elliot Sander, the further delay will save money in the long run by allowing the authority to sign smaller contracts. The new schedule on the Second Avenue line is part of a new capital plan that the MTA has will submit to the legislature for approval. The new plan includes a budget increase, as well as new schedules for several other projects.

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MTA Prepares New Capital Plan; Project Delays Persist

Rising construction costs and $9 billion gap in the MTA’s capital plan are causing delays in several capital projects, including the 2nd Avenue subway line, the East Side Access project, and the Fulton Street Transit Center. In response, the agency has drafted a new capital plan that includes $4.5 million in bonds from the proposed congestion pricing plan and will expand the budget from $21.3 to $29.5 billion.

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MTA Projects Over Budget and Behind Schedule

Because of rising construction costs, the Metropolitan Transportation Authority (MTA) will be $1.5 billion over budget in its four big construction projects: the 2nd Avenue Subway, East Side Access, the Fulton Street Transit Center and rebuilding the South Ferry terminal. Because of the budget problems, both the 2nd Ave. Subway and the East Side Access project have been delayed. They were both scheduled to open in 2013, but MTA now projects that they will open in 2015. Although the MTA’s five-year capital rebuilding program, which includes all these projects, may be cut back, the MTA does expect to pass the current plan along to legislators.

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Capital Plan for MTA Expected to be Nearly $28 Billion

The Metropolitan Transportation Authority (MTA) is expected to unveil a new capital budget plan that could end up costing about $28 billion for major projects such as the 2nd Avenue subway and other smaller transit initiatives. There is some concern that the MTA will not be able to levy from federal, state and local officials the kind of money they need to implement their capital budget plan. Congestion pricing advocates are using potential shortfalls in the capital budget as an opportunity to push their plan which could generate $500 million annually for the MTA. Included in the capital plan is $1 billion to begin the implementation of the second segment of the 2nd Ave Subway.

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2nd Avenue Subway Construction Causes Hardships for Nearby Businesses

Many local business owners have been forced to deal with reduced foot traffic, lower revenue, garbage pileups and other construction nuisances as the Metropolitan Transit Authority (MTA) builds the 2nd Avenue Subway. Marcelo Ronchini, owner of Nina’s Argentinean Pizzeria on 91st Street & 2nd Avenue has seen up to a 23 percent reduction in revenue and has had to reduce the hours of his staff since the construction of Second Avenue Subway.

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Bush Includes Funding for East Side Access and 2nd Avenue Subway

In the $3.1 trillion budget presented to Congress by President Bush this week, $211 million was included for the East Side Access Project that will connect the Long Island Railroad to Grand Central Station on the East side. In addition, Bush's budget includes $277 million for construction of the 2nd Avenue Subway. Congress will now review President Bush's budget.

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High Costs Force Delays and Cutbacks in Key Projects for MTA

The East Side Access Project, 2nd Avenue Subway and the Number 7 Extension line will all be reviewed in the coming month by the Metropolitan Transportation Authority in an effort to cut costs without compromising the Authority’s transportation goals. The MTA recently scaled back plans for the Fulton Street Transit Center glass entranceway because of costs. High construction and materials costs have lead recently to these transportation projects to be over budget and behind schedule. The three keys projects – East Side Access, 2nd Avenue Subway and the Number 7 Extension – have a combined budget of $12.5 billion. MTA Executive Director Eliot Sander has said that cutbacks will hopefully not directly affect riders.

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Some Business Owners Were Unaware of Plans for 2nd Avenue Subway

Two business owners on 2nd Avenue on the blocks where construction has begun on the 2nd Avenue Subway claim to have been given little to no information about the plans for construction of a new subway line when they signed their long-term leases in 2006. Both some now worry that lagging business due to the inconvenience and noise of construction may force them to shut down before the projected 2014 completion of the line. Many business owners in the area claim that their sales have dipped up to 35% since construction began. Jeremy Soffin, a spokesman for the MTA, said that information has been shared with business owners and residents via letters, public presentations and personal visits.

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2nd Avenue Subway Construction Hampering Local Businesses

Since construction began on the 2nd Ave Subway, local businesses are losing revenues as foot traffic is minimal and obtrusive construction equipment is blocking some of the storefronts. A survey conducted by one of the small business owners concluded that 29 stores in the blocks where construction has begun have each experienced about 20% loss in profits. In response, some politicians have initiated a campaign for tax credits, rebates and grants to keep the businesses afloat until the construction is completed. The MTA has also agreed to collaborate with local businesses through better signage and meetings to minimize economic impact. Construction for this phase of the subway is expected to take another 3 years.

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MTA Capital Construction President Resigns

Mysore Nagaraja, president of the Metropolitan Transportation Authority’s Capital Construction Co., is leaving at the end of January to take a consultant position in the private sector. His projects included the LIRR extension to Grand Central Terminal, the Second Avenue subway, the Fulton St. Transit Center and the No. 7 train extension. MTA officials express concern about how Nagaraja's departure will affect delays and rising costs for these projects.

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Second Avenue Subway Construction Affecting Businesses

Some business owners on the Upper East Side are reporting that the construction on the Second Avenue subway is negatively impacting their small businesses. A coalition of owners is negotiating with the city to develop a plan to ensure that small businesses survive the seven more years expected for the subway's construction. Possible solutions include state-sponsored low-interest loans or a tax-free zone.

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Call for Second Avenue Subway Art

The Metropolitan Transportation Authority (MTA) will commission artists to create four installations in the 96th, 86th, 72nd and 63rd street stations of the Second Avenue subway line. The installations will cost up to $1 million each and take up as much as 2,200 square feet of wall space each, and MTA has requested that they reflect the “brighter and sleeker” feel of the new subway stations.

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Second Avenue Subway Must Stay on Schedule

Although the federal government recently guaranteed $1.3 billion to the 2nd Avenue Subway, officials warn that the Metropolitan Transportation Authority (MTA) must keep the project on time and on budget. If the project detours too significantly from the plans, the Federal Transit Administration could withdraw its funding.

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Federal DOT Approves $1.3 Billion for 2nd Ave Subway

The United States Department of Transportation has agreed to finance a portion of the first phase of construction for the long-awaited 2nd Ave Subway. DOT will pay $1.3 billion over the next seven years for construction of the phase that runs down on 2nd Ave and will stop at 92nd Street, 86th Street, 72nd Street as well as stop at 63rd and Lexington Avenue. This portion is expected to be completed in 2014 and will connect to the Q train until the rest of the line is built. The Secretary of Transportation, Mary Peters said that her agency's contribution to the 2nd Ave Subway is the second largest federal expenditure for a single mass-transit system behind the federal contribution to the East Side Access Project.

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Earmarks for East Side Access and 2nd Ave Subway

Federal funding for the East Side Access Project and the 2nd Avenue Subway was included in the Fiscal Year 2008 Transportation and Housing and Urban Development Appropriations bill that is awaiting final approval by Congress before it is sent to the President. $170 million was included for the 2nd Avenue Subway between 125th Street and Hanover Square. The 2nd Avenue Subway is expected to transport 600,000 people a day, which will provide some relief to the overcrowded Lexington Subway line. $215 million was included for the East Side Access project, which will connect the Long Island Railroad to Grand Central Terminal. The East Side Access Project is expected to be completed by 2014.

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Residents Display Mixed Feelings Over 2nd Ave. Subway

The neighborhoods surrounding the proposed Second Avenue subway line stand to undergo significant changes as the new subway is being built. Real estate brokers are using the subway as a selling point to attract new residents to the area. While many residents are excited about gaining access to transportation, some worry about the new subway's potential to raise existing rents and compromise the neighborhood's historical character.

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Second Avenue Subway and East Side Access Project Move Forward

Officials announced that a federal grant for $1.3 billion would be obtained soon to aid the Second Avenue Subway project. Other funding sources for the new subway line include $450 million Transportation Bond, and $1.05 billion from the State. Many anticipate that the new line will alleviate crowding on the Lexington Avenue line and will allow for better commute times. The East Side Access project will also be moving forward because a a 200-ton tunnel boring machine, which will dig from Long Island City to Manhattan, is scheduled to begin running within weeks. Once the East Side Access is completed in 2013, more than 150,000 Long Island Rail Road commuters are anticipated to take advantage of the project which will provide an easy ride between Pennsylvania Station and Grand Central Station.

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MTA Takes Over Upper East Side Apartments in Anticipation for 2nd Ave Subway

Because construction of the Second Avenue Subway will require tearing down four rent-controlled apartment buildings on the Upper East Side, under federal law the MTA is required to relocate tenants to equivalent housing. In order to ensure that the buildings scheduled for demolition are clear by the end of 2008 and to limit the number of tenants it will have to evict, MTA has begun leasing individual apartments in the buildings as they become vacant.

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Federal Transit Administration Funding Second Avenue Subway

Officials announced yesterday that the Federal Transit Administration approved a $1.3 billion grant for the $3.8 billion project. Although the funding requires congressional approval, this step demonstrates major advancement in securing funding for the new subway line. The state committed $1.05 billion and the 2005 Transportation Bond Act pledged $450 million.

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Eminent Domain a Concern for 2nd Ave Subway

At a public hearing held on Thursday evening, the Metropolitan Transit Authority (MTA) heard from several property owners who are opposed to building takeovers in order to build the 2nd Avenue Subway. The first portion of the subway line being built between East 63rd Street and East 96th Street may require eminent domain of four buildings. At least 19 other properties may be seized to complete the subway line. Manhattan Community Board 8 has expressed a willingness to work with the MTA to ensure that eminent domain is used “sparingly.”

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Federal Funds a Possibility for 2nd Ave Subway and East Side Access

$125 million in funding was included for the 2nd Avenue Subway in the Senate-passed Transportation funding bill for Fiscal Year 2008. Also included in the Senate bill was $200 million for the East Side Access Project. Funding levels will face at least one more hurdle as a Conference Committee must now hammer out the details of the House and Senate versions of the bill and develop compromise legislation that must be signed by the President.

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NYC Capital Projects Such As 2nd Ave Subway May Be Delayed By Limited Labor Supply

According to a presentation put together by the Lower Manhattan Construction Command Center, the simultaneous progress on many large capital improvement projects within New York City could lead to a shortage in labor and key materials such as concrete and steel. The situation may further delay construction of several projects, as demand for certain professions is expected to outstrip supply. High demand for materials may also raise construction costs.

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Federal Funding for NYC Mass Transit Projects

The House of Representatives has approved several chunks of federal funding for New York City mass transit projects. Approved funding included a $9 million grant to upgrade air traffic control at La Guardia Airport, $215 million for the East Side Access Project, and $200 million for the Second Avenue Subway. The funding was all set aside in the 2008 Transportation and Urban Development Appropriations Bill, which must still be approved by the Senate as well.

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MTA Fare Increase in the Works?

The MTA may be seeking a fare increase for subway and bus riders in order to help fill a budget shortfall of over $800 million. Fares have not been raised since 2005. The fare increase would also help pay for capital projects such as the Second Avenue Subway, a link between LIRR and Grand Central Terminal, and the No. 7 subway extension.

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Second Avenue Subway Expected to Spur Profits

Experts expect the Second Avenue subway will boost real estate prices on the Upper East Side along First and Second Avenue, as well as open up East Harlem to new investment. Some buyers are still hesitant to invest in such property, due to the extended length of the project. The first section of the subway is not slated to be complete until 2013, with the remaining section to be complete in 2023.

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2nd Avenue Subway Entrance Altered to Keep Grocery Stores

Designs for the Second Avenue subway entrance at near 85th and 86th Streets have been altered to allow two existing Food Emporiums to remain open. The plans have been changed due to the high cost of buying out the grocery stores, as well as complaints by residents that closing the stores would worsen an existing shortage of grocery stores in the neighborhood.

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High Cost for Second Avenue Subway Groundbreaking

The New York Times is reporting that the April 12 ceremonial groundbreaking on the Metropolitan Transportation Authority's new Second Avenue subway cost nearly $89,000. Supporters of the ceremony argue that such an expense was necessary to inform the public about the nature of the transportation system in the city. Others argue that such a cost is excessive in light of cost-saving tactics used to keep fares low. The entire project has a $4 billion budget.

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Downtown-JFK Rail Link In Jeopardy

In order to win support from state officials for his anti-traffic tax plan, New York City Mayor Bloomberg may agree to fund a larger portion of the Second Avenue Subway, and scrap plans for a Downtown JFK Rail Link. This concession is part of the negotiations over a bill on congestion prices that the Mayor wants to conclude before Memorial Day.

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Property Values Uncertain Due to 2nd Avenue Subway

Real estate observers are cautious about the effect that 2nd Avenue Subway construction will have on property values in the neighborhoods adjacent to the new line, whose first phase between 96th and 72nd streets will be finished by 2013. Some analysts have seen a flurry of developer activity along the line, citing a near 10% increase in property value along 2nd Avenue. Others have witnessed a downturn in prospective developments because of the uncertainty caused by the city's ability to use eminent domain to seize properties in the way of the construction project.

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Rock Excavated from 2nd Ave Subway Could be Valuable Building Material

The unusual rock, known as Manhattan Schist, which will be excavated in the process of building the Second Avenue Subway could potentially be sold and used for future construction. Other buildings have been built using such material, such as the Cathedral of St. John in Morningside Heights. The MTA is hoping someone will be willing to buy the rock from the current contractor for future use. However, the likelihood of such a project is yet to be determined and will depend on what form the rock comes out in after excavation, whether it is largely dust or remains in usable chunks.

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2nd Avenue Subway Construction Testing Patience

With the first phase of the city's construction of the 2nd Avenue Subway underway, motorists, businesses, and pedestrians have already registered their impatience with the construction's toll of their daily lives. A temporary fence has been placed in two of the five lanes of 2nd Avenue between 91st and 98th streets, leading to complaints from local business owners and those who are no longer able to park on the east side of the street. The reduction in lanes from five to three will last for 18 months, while the entire first phase of the project from 63rd to 96th Streets is expected to last until 2013.

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Will Finance Troubles Plague the Second Avenue Subway Again?

After the recent groundbreaking on the Second Avenue Subway project, this article by the Economist addresses the financial concerns raised by the project. With funding for the first phase still about $875 million short and finances for the remaining three phases yet to be determined, concerns that the project will not advance past Phase One or that passengers will end up bearing the cost of construction are valid. Complicating matters are forecasted deficits at the MTA, reducing financial flexibility, and budget overruns at other large transportation projects totaling $1.4 billion. While the Second Avenue Subway is needed to ease traffic on New York’s most congested subway line, there is also much investment needed just to maintain the current infrastructure.

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The Anatomy of a Groundbreaking

The groundbreaking for the Second Avenue Subway line had the monumental task of defeating the symbolism of the failed subway attempts of the past. The Metropolitan Transportation Authority (MTA) spent nearly $40,000 on the event to do this, crystallizing the memory of the event for the ages. Without ceremonial pickaxes, the cadre of public officials guaranteed success of the $3.8 billion project by alluding to its secured funding. With Mayor Bloomberg absent, the occasion was the first subway groundbreaking in which a New York mayor was not present.

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Will the Second Avenue Subway "Curse" be Broken?

Yesterday's groundbreaking ceremony for the Second Avenue Subway at the southern portion of the rail line where construction attempts in the 1970s failed because of financial woes raised an important question: Will the new construction break the old "curse"? The New York Post likens the inconsistency of Second Avenue Subway construction over time to the famed Curse of the Bambino, a legend from Major League Baseball about the inability of the Boston Red Sox to win the World Series. Peter Kalikow, Chairman of the Metropolitan Transportation Authority, declared the "curse" over, citing the project's financial and political will.

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Should MTA Look to Private Funds for Second Avenue Subway?

At this morning’s Second Avenue Subway groundbreaking, the head of the Federal Transit Administration (FTA) proposed a new financing solution for the completion of the line; looking for a public-private partnership to help provide funds. While this type of partnership has been used in Texas on public transportation projects, Governor Spitzer stated that it has not been discussed in connection with the New York subway system.

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A New Beginning for the Second Avenue Subway Today

Groundbreaking for the Second Avenue Subway line was scheduled for this morning at 10:30 a.m., with officials optimistic about the fate of the new line. While previous attempts at building the Second Avenue Subway have failed repeatedly because of financial troubles, officials believe the current plan is more feasible becuase it calls for building the line in smaller phases rather than tackling the entire line at one time. The MTA has 75 percent of the funding for the first phase, but still needs to locate approximately $1 billion more. Some have expressed skepticism that the funding will be obtained given the host of other transportation projects going on in the city and rising federal deficits.

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Second Avenue Subway: Breaking New Ground or History Repeating?

With the fourth groundbreaking for the Second Avenue Subway scheduled for April 12th, this New York Times article reminisces on past groundbreakings and discusses why previous attempts to build the line failed. It is suggested that this fourth attempt is more likely to succeed because the financing arrangements are more concrete and because the project is being undertaken in smaller, more achievable portions. The first phase is expected to cost $3.8 billion and be completed in 2013. One-third of the initial cost expected to be covered by the federal government.

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Tenants Face Displacement with Second Avenue Subway Construction a Reality

With construction on the Second Avenue Subway set to begin, some residents are being forced to face the truth that their buildings are likely to be demolished. The MTA believes that thirty buildings need to be demolished for construction of the subway, with four slated for demolition next year as part of Stage One. Federal law requires that the MTA find displaced residents’ new apartments and the MTA has initiated a plan to try and find rent-stabilized apartments in the area. However this may be very difficult to do, and finding apartments of comparative quality and similar prices may mean a move to the outer boroughs for many of the displaced.

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2nd Ave Subway Stations to be a Refreshing Change

The 2nd Ave. subway stations might have mechanical doors on the edge of the platforms that would open to allow passengers to move on and off the trains. This will prevent people from falling onto the tracks and save money on cooling expenses. In addition to air conditioning, the new stations will be fully handicapped accessible, brighter and roomier.

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Date Announced for Second Avenue Subway Groundbreaking

The Metropolitan Transportation Authority has announced that groundbreaking on the Second Avenue Subway line will be on April 12th. Construction of the line, which will occur in phases, will begin with the "T" line from 63rd to 96th Streets. The MTA projects an end date of 2013 for the first phase. Ultimately, the Second Avenue Subway will run from 125th Street all the way to the Financial District of Manhattan.

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2nd Avenue Subway Project Necessitates New Homes for Tenants

As the Metropolitan Transportation Authority embarks upon its colossal creation of the 2nd Avenue Subway it is responsible for finding replacement housing for the tenants whose homes will be destroyed due to construction. Rules require that the MTA locate new housing for all tenants removed by the process and the housing must be of "comparable" value. Relocation is more difficult in this instance, however, because of the expensive nature of housing on the Upper East Side of Manhattan, as well as the elimination of nearly 60 rent-stabilized apartments due to the project.

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First Contract Signed for 2nd Avenue Subway Project

The Metropolitan Transportation Authority has announced the first awarded contract for the 2nd Avenue Subway project, which will eventually run from 125th Street to Lower Manhattan. Three firms won the $337 million contract, which will commence “Phase One” of the construction: a $3.8 billion extension of the subway’s Q line from 63rd Street to 96th Street that will be completed in 2013. A groundbreaking is expected next month. The MTA projects that the full project, known as the T line, will be finished in 2020. The news comes as city authorities continue to discuss with the MTA about possible cost overruns of major transportation projects.

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Second Avenue Subway: Increasing Costs

The cost of breaking ground on the first leg of the Second Avenue subway line has increased from previous projections, forcing the MTA to pay about $54 million more than it had planned to buy five Upper East Side buildings and parts of 24 others to make way for construction. Officials say the unexpected rise in costs will not deter the Authority from beginning construction on the new line.

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City Anticipates Funding Problems with Big Transportation Projects

Deputy Mayor Daniel Doctoroff expressed concern yesterday that construction of the Second Avenue Subway, a two-way line from the East Side of Manhattan to 125th Street, might not begin shortly after the project's groundbreaking ceremony in a few weeks. Doctoroff's apprehension is due to funding uncertainties, especially with the MTA's capital budget dwindling in the next few years. Capital budget projections for the MTA include deficits from 2008 to 2010: $800 million in 2008, $1.4 billion in 2009, and $1.8 billion in 2010. Worries about completion of large subway projects also apply to the construction of the No. 7 line extension, whose current budget will likely produce cost overruns beyond the $2.1 billion allotted to it. The city has vowed that the MTA must pay the bill for the No. 7 line extension should it run over budget.

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MTA To Seal Second Avenue Subway Deal

On March 29, the MTA is expected to seal the deal on the Second Avenue Subway. The new line, dubbed the T Line, will extend from 96th Street south to Houston Street. Construction of the first phase of the line, which will include three new train stations on the Upper East Side and a connection to the 63rd Street Q station and cost $333 million, is a joint venture involving Skanska USA Civil, Schiavone Construction, and J.F. Shea Construction. This first phase of four projected phases is expected to be complete in 2013.

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Long Anticipated Second Avenue Subway Line To Begin Construction

According to the MTA, phase one construction of the Second Avenue Subway is expected to begin in a matter of weeks. The project has been under discussion since 1929 but fiscal considerations have previously prevented its completion. Phase one will extend the Q line from 63rd street to 96th street and is expected to be completed in 2013 at a cost of $3.8 billion dollars. Before tunneling can begin infrastructure such as water, sewer, and electric lines must be moved out of the way or reinforced. Residents on the East Side feel that the MTA has addressed their relevant concerns, and that the inconveniences that will inevitably result are the necessary cost of completing the long-awaited subway line.

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Using Public-Private Partnerships to Finance State Projects

Governor Spitzer's expressed willingness to create more public-private partnerships has inspired a movement among investment bankers to propose buying state assets to finance those projects. So far, discussions have occurred between private firms and government agencies, like the Thruway Authority, the Empire State Development Corporation, the Department of Transportation, and the Port Authority of New York & New Jersey. Private ownership of public infrastructure has grown nationally in recent years, as states like Illinois, Indiana, and California have sold their toll roads to the private sector. Proponents believe that public-private partnerships improve project efficiency and quality, while opponents fear that such deals exclude the public and the ability to change course. Only the Metropolitan Transportation Authority has not entered into discussions.

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MTA Head Considers Cost-Saving Policies

Elliot Sander, new Executive Director of the MTA, outlined a plan yesterday before the New York State Joint Legislative Fiscal Committee to close the state agency's looming budget gap, which is expected to exceed $1.79 billion in 2010. Sander claimed that 40% of the MTA's current costs of its $10 billion annual operating budget are controllable. In particular, he suggested consolidating the human resources of all seven MTA agencies and combining the three bus companies -- New York City Transit, MTA Bus, and Long Island Bus. Commenting on the increase in major construction projects, Sander said that he would investigate ways to finance the projects most efficiently.

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Additional Costs on 7 Line Extension Could Hurt Other Projects

Rising construction costs will make the extension of the 7 train even more expensive, rising $1 billion more than expected. As a result, other critical MTA projects may be put on hold, including the Second Avenue Subway, the East Side Access, and the crucial repairs to the system. Head of the MTA, Elliot Sander, declined to say that the project is on hold, but registered his hesitation to award construction contracts until a deal is negotiated. The city, largely under the leadership of Mayor Bloomberg and Deputy Mayor Doctoroff, agreed to pay for the $2.1 billion project in exchange for development rights to the West Side yards. The city has no obligation, however, to pay for additional costs.

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Bush Budget Backs Two Transportation Projects

President Bush's $2.9 trillion budget for 2008 includes funding for the Second Avenue extension and the East Side Access project, a rail link between Long Island and the Grand Central Terminal at 42nd Street. The deputy director of the MTA said that the state agency had been in communication with the federal government about funding for the projects, and hailed the increases as "very good news." The first phase of the Second Avenue extension, which will cost $3.8 billion, is set to receive $1.3 billion in federal funds over a set of to-be-determined years. The $6.3 billion East Side Access will receive $215 million in federal funds.

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MTA Maintenance Limited by Disproportionately Granted State Funds?

With news that the MTA’s $21 billion dollar capital expansion program may already be over budget by $1.4 billion, the agency may have to look to cut costs or projects. There are several large capital projects in line, including the Second Avenue subway, but continuing basic maintenance and upgrades should remain a priority. According to an audit review by the City Comptroller, the MTA is negatively impacted by the fact that it gets a disproportionately small share of state maintenance funds even though it has a larger share of riders. The report suggested that more money is needed for basic upgrades, especially as the city becomes more reliant on public transportation.

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MTA Will Avoid Cutting any Major Projects Despite Cost Overruns

While concerns of large cost overruns among the MTA’s many construction projects have some worried about the continuation of funding on some of the agency’s projects, the MTA has stated that it does not plan to cut any major projects. A panel has been organized to review the timing and costs of all major projects and attempt to find areas in which costs can be cut. They will be reporting results of their review in sixty to ninety days, and may become a permanent watchdog panel within the MTA.

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Needed Transit Projects Might be Derailed Due to Costs

The Metropolitan Transportation Authority (MTA), in the midst of a five-year, $21 billion capital campaign to expand and improve its transit system, might have to delay or eliminate necessary projects because of surging costs. According to one estimate, the MTA is already $1.4 billion over budget. Transit projects in jeopardy include long-awaited renovation to subway and commuter train stations, repairing old signal systems, and purchasing new buses and subway cars. Also in doubt are featured mega projects like the Second Avenue subway, a Long Island Rail Road link to Grand Central Terminal, and an extension of the No. 7 subway line. Some attribute the situation to rising construction costs, a weak dollar, and a reduction in the number of contractors for project bids.

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Second Ave Subway Construction Set for March

The president of MTA Capital Construction has stated that construction of the Second Avenue subway will begin sometime in March. The construction process will begin with the digging of a hole to bring the tunnel-boring drill to the correct level underground. The initial work will begin between 92nd and 96th street.

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Second Avenue Subway Construction to Begin

MTA officials have selected a winning bid for construction of Phase One of the Second Ave subway line. Construction is expected to begin in approximately a month, after the contract is formally awarded following a two to four week vetting process. Phase One of the Second Avenue Subway will run from 63rd street to 96th street, and will originally run as an extension of the Q train. Construction will begin at the north end of the line, with Phase One anticipated to be completed in 2013.

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MTA Executive Director Outlines Plans for Future

Elliot Sander, Governor Spitzer’s appointment to the position of MTA Executive Director, has outlined his priorities for the organization over the next several years. These include improving labor relations, expanding the Bus Rapid System, and creation of the 2nd Avenue Subway as the beginning of new major subway line. Sander has promised organizational changes to improve efficiency but believes the MTA can avoid layoffs in the process.

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Governor Criticizes Pace at Ground Zero

Governor Spitzer said that Ground Zero had become a "monument to government gridlock" and promised to pick up the pace of the rebuilding. Spitzer raised the idea that the Freedom Tower may be shorter than planned. The governor also called for the construction of the first segment of the Second Avenue subway and a "plan for the full extension to lower Manhattan" and threw his support behind a plan to connect Long Island and Queens commuters to Grand Central Terminal.

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2nd Avenue Subway in Spitzer’s First State of the State Address

Governor Eliot Spitzer delivered his first State of the State address in Albany, promising bi-partisan cooperation, no tax increases, and commitment to investment throughout the state. In particular, Governor Spitzer announced the state’s ambition to begin building the first part of the Second Avenue subway, as well as a plan for a complete extension to lower Manhattan.

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End of 2006 Brought Approval For Major Projects

Final approvals were granted to six major New York City economic development projetcs in the last month of 2006. Approval or financing was given to a Second Avenue subway; an extension of the Flushing Line to the Far West Side; a spur to connect the Long Island Rail Road to Grand Central Terminal; financing for tens of thousands of apartments for low- and moderate-income residents; and the Atlantic Yards complex near Downtown Brooklyn, among others.

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Federal Government Lends Massive Support to Transportation Projects

The expansion of the Second Avenue Subway and the East Side Access, a link between the Long Island Rail Road and the Grand Central Terminal on the east side of Manhattan, received a boost from the federal government yesterday, who promised $2.6 billion for the rail link and $693 for the subway. While the announced figures do not cover the full costs of the respective projects, Transportation Secretary Mary Peters declared that Congress will be asked to re-appropriate a determined amount every year for the projects. Both expansions are expected to finish in 2013.

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Port Authority Invests $2 Billion in NYC Transportation

The Port Authority has announced an investment of $4 billion in mass transit in New York and New Jersey as part of its ten-year capital plan. While $2 billion will be devoted to a rail tunnel under the Hudson River benefiting New Jersey commuters, the other half will go towards New York projects. Discretionary spending of that investment is mostly up to Governor-elect Spitzer, who has intimated that the investment will finance critical transit projects like the East Side Access, the Long Island Rail Road Link to Grand Central, the Second Avenue subway, and the Number 7 line extension.

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Spitzer puts Key Transportation Projects on Agenda

Spitzer has identified several transportation projects that he believes are key to New York development and that he hopes to complete by the end of 2014. These include building the first segment of a new Second Ave subway line, creating a new Long Island Railroad center at Grand Center Terminal and adaptations to the Tappan Zee Bridge. He believes these three projects along with several other transportation improvements will help encourage economic development by improving commutes and allowing for creation of job opportunities. Where the capital funding for all the projects will come from has not yet been determined.

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Spitzer Visits Capitol Hill: Development Projects On The Table

Governor-elect Spitzer met today with the New York delegation on Capitol Hill to discuss the needs of New York State. Development projects, including the Second Avenue subway and the environmental effects of 9/11, were on the minds of New York assemblymembers. Spitzer said that he would submit a budget of about $115 billion to the legislature this winter.

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Transit Advice For The New Governor

Public transit advocate Gene Russianoff offers advice to governor-elect Eliot Spitzer in an editorial in the New York Times. Russianoff favorably notes Spitzer's support for the Second Avenue Subway and the East Side Access projects. He also says Spitzer shouldn't pursue projects which divert resources from the MTA's "core rebuilding program."

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MTA: Fares Hold In 2007, Only To Rise In 2008

The MTA announced that fares will likely rise in 2008 unless the city and the state discover new subsidies to close the MTA’s widening budget deficit. The announcement about probable fair hikes by MTA Chairman Peter Kalikow precedes the chairman's intention to resign in 2007.

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MTA Chair Kalikow Intends To Leave Post In 2007

The chairman of the Metropolitan Transportation Authority, Peter Kalikow, announced on Thursday that he plans to step down during the second quarter of 2007. The announcement came as a surprise to some who had expected a public battle between the current chairman and Governor-Elect Spitzer, who has revealed his interest in appointing a new chairman. Kalikow insisted on finishing key projects before resigning, such as the 2nd Avenue Subway and a new Long Island Rail Road connection to Grand Central Station.

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Scrutiny Expected of Potential MTA Chairman

Eliot Sander, a former city transportation commissioner, is expected to be Governor-elect Spitzer’s appointee to chair the MTA. Many worry that Sander’s executive status at a company with close to $198 million in contracts with the MTA will present a conflict of interest, however. In particular, Sander’s company has a $150 million for the final design of the Second Avenue subway project. Sander maintains that he would divest himself of work with companies that do business with the MTA if appointed. Spitzer does not see any conflict of interest in the potential appointment.

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Schumer Lays Out Priorities

Among the projects that New York’s senior senator said are priorities are the Second Avenue subway, a rail link between lower Manhattan and JFK Airport, and building a new tunnel under the Hudson River to connect Midtown with New Jersey.

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Upper East Side Residents Express Fears about Second Ave. Subway

The Metropolitan Transportation Authority (MTA) held a meeting on Tuesday about the Second Avenue subway project with Upper East Side residents. Some residents, who inhabit 60 residential units affected by the project, expressed concern that their rent-stabilized status would be negatively impacted by the forced move. The MTA is legally obligated to help residents find comparable apartments in the case of relocation.

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NY Transportation Needs Have Good Prospects in New Congress

The recent ascension of powerful New York elected officials in the Senate and the House of Representatives, Senator Charles Schumer (D-New York) and Representative Jerry Nadler (D-Manhattan), bodes well for major transportation projects that have thus far received little federal funding. In particular, Schumer will seek added funds for the completion of the Second Avenue subway and the linking of the Long Island Rail Road to Grand Central Terminal. Representative Nadler will focus on the cross-harbor freight tunnel between Brooklyn and either New Jersey or Staten Island.

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Gov.-elect and Mayor Meet: Development Projects Mentioned

The Mayor of New York City, Michael Bloomberg, and Governor-elect, Eliot Spitzer, met on Friday for a private breakfast to display their friendly political relationship. While the governor-elect and mayor maintained that they would not always agree on key policy issues, the two expressed the likelihood of great agreement on most projects. On the issue of Moynihan station, both expressed the need to move the project forward. Spitzer maintained that “open issues” exist with regard to the project, however. The redevelopment of Ground Zero and the 2nd Avenue subway were also discussed.

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The Next MTA Chairman?

Insiders are speculating that Eliot Spitzer may tap Elliot Sander, a former city transportation commissioner, to lead the Metropolitan Transportation Authority. The current chairman, Peter Kalikow was recently appointed to a new six-year term and has said he plans to stay on at least until the federal government makes a final commitment to finance construction of two major projects: the Second Avenue subway and a Long Island Rail Road link to Grand Central Terminal.

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Will Bus Rapid Transit Pilots Move at Subway Speeds?

The MTA and Department of Transportation have announced the location of 5 pilot Bus Rapid Transit (BRT) lines in each borough. Supporters of BRT highlight program’s advantages over regular express buses. Will the 188,000 people who ride existing buses along these routes double in size because of BRT, however? This article’s analysis of the five pilot lines argues that ridership will increase.

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Candidates' Views On MTA Projects

Newsday summarizes gubernatorial candidates Eliot Spitzer and John Faso’s positions on MTA-funded projects including the 2nd Avenue Subway and creating access to Grand Central for LIRR trains.

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Groundbreaking Soon On 2nd Avenue Subway

The Metropolitan Transit Authority say that they are months away from breaking ground on the Second Avenue subway. By the end of this year, the MTA hopes to award a contract to build a new tunnel for the East Side subway line. The $3.8 billion first leg of the project will feature stations at 96th, 86th and 72nd Streets and is scheduled to be completed by 2013.

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2nd Avenue Subway: Proceeding With Caution

The MTA plans to award the tunneling contract for the first phase of the 2nd Avenue Subway project later this year with digging commencing in 2008. Phase 1 of the project calls for the construction of stations at East 96th, 86th, and 72nd streets, and a connection to existing tracks at 63rd Street. Having recently discovered historic artifacts while working in Battery Park, the MTA has said that it will have archaeologists at the ready should they encounter Native American and Colonial artifacts while digging, a possibility they readily acknowledge.

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Riders Favor 2nd Avenue Subway

According to a survey by a transit advocacy group, the 2nd Avenue Subway and the Downtown JFK-LIRR Rail Link are top priorities of transit users.

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Eliot Spitzer On Transportation

Gubernatorial candidate Eliot Spitzer wants to make transportation his number one priority if elected to office. His top three projects are the 2nd Ave Subway, the LIRR connection at Grand Central Terminal, and the replacement of the Tappan Zee Bridge. The most likely projects to not