There is more to the Federal Highway Administration approving the city of Glen Cove yet another time extension before having to pay back $16.6 million in grant funding. “Glen Cove ferry launch deadline extended” (Jessica Parks — Feb. 8).
These dollars were approved in 2003 for construction of a new ferry terminal. It was to support a new ferry service from Glen Cove to the downtown Manhattan financial district which has yet to start.
Based upon my previous 31 years experience in management of Federal Transit Administration capital grants for similar ferry capital projects, it should have taken several years to complete construction of any ferry terminal. Three years later, ferry service should have been up and running by 2006.
Federal grants include basic project descriptions, milestones and budgets. Recipients are required to submit periodic progress reports and explanations for delays. Federal investments should reach beneficial use and be in transit service within a reasonable time period.
Based upon language in any Master Grant Agreement, between the federal agency and recipient, is a clause which would provide the right to ask for their money back if the investment is not used for its intended purpose.
Waiting 17 years until 2020 to see if this might happen is a clear example of waste, fraud and abuse of federal tax dollars. My agency would have been obligated to ask Glen Cove to return any unspent funds, repay the balance of expended funds and return them to the treasury.
Perhaps my old colleagues in the Federal Highway Administration were subject to undue influence by other federal elected officials on behalf of Glen Cove. Were they made “an offer they couldn’t refuse” to keep the grant open and give Glen Cove more time under yet another recovery schedule to complete the project?
A cat has nine lives and Glen Cove used them all up long ago. How disappointing that the Federal Highway Administration issued yet another time extension to May 2020 for initiation of permanent ferry service. If federal employees do not do their duty as stewards of the taxpayers’ funds, the Federal Department of Transportation Office of Inspector General surely would have.
It is naive to believe that local residents would pay a premium fare estimated to be $45 or more. This would be significantly higher than what the LIRR would charge for a similar trip into Manhattan including a transfer to the NYC Transit subway. A 2017 city survey of people who rode a special summer ferry to help LIRR passengers avoid “summer of hell” construction at Penn Station found that only 12 percent were willing to pay as much as $40 to $45 for round-trip ferry service.
A 2015 city survey of potential ferry commuters found that 75 percent would pay no more than $25. Previous attempts of private operators have failed due to insufficient ridership. There is no reason why this would not continue. It is obvious that any private operator who bids on providing service starting in 2020 will be looking for millions in subsidies.
How much money is Glen Cove, Nassau County and Albany prepared to provide in operating assistance to make this new service financially viable for a private operator? Past private ferry operators have come and gone. They could not financially survive on farebox revenue alone without government subsidy.
MTA LIRR, Nassau Inter County Express bus, NYC Transit bus, subway and commuter rail along with NYC DOT Staten Island Ferry and NYC Economic Development Corporation private ferry operators are subsidized by a combination of city, state and federal assistance for both capital and operating costs.
New ferry service from Glen Cove to Manhattan will require similar subsidies if it is to get off the ground and survive. The only way for this service to be potentially viable is adding more stops. Including intermediate stops in Queens including Bayside, College Point, Flushing Marina, LaGuardia Airport and Long Island City. These additional stops would add more travel time. It could, however, generate significant additional riders resulting in a more financially viable operation.
Even the MTA LIRR $11.8 billion East Side Access to Grand Central Terminal may be completed and running in less time. Would past and current Glen Cove mayors tolerate a similar boondoggle if it was 100 percent locally funded managed by their own Department of Public Works? I doubt that they would be reelected by local constituents.
Larry Penner
Great Neck
(Larry Penner is a transportation historian, advocate and writer who previously worked 31 years for the U.S. Department of Transportation Federal Transit Administration Region 2 NY Office)
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