LA Metro Claremont rail extension to generate $1.1B economic impact, report says

The construction and operations of the upcoming Los Angeles County Metropolitan Transportation Authority (L.A. Metro) light-rail extension into Claremont, California, could generate $1.1 billion in economic output, according to a report released this week by the project's construction authority.

The report, prepared by Kleinhenz Economics for the Foothill Gold Line Construction Authority, states the impact of the 2.3-mile extension will create more than 4,700 jobs during construction and produce more than $481 million in labor income. Workers will see an average annual income of $101,000 and construction activity is estimated to generate more than $154 million in tax revenue, construction authority officials said in a press.

For every $1 million spent during the next seven years of final design and construction, the project is estimated to generate $1.6 million in total economic output for the region, authority officials said. Once construction is completed, the extension will continue to generate economic output. For every $1 million spent on operating the light-rail service, it will generate about $7.6 million in total economic output for the region, they added.

During the first three years of operation, the economists estimate the extension will support nearly 1,200 annual jobs and produce more than $490 million in labor income. Further, the report states that more than $123 million in total tax revenue will be generated.

"The study confirms what we have always seen throughout the various extensions of the [L.A. Metro] A Line from Los Angeles through the San Gabriel Valley — that the return on investment from the project is significant," added construction authority CEO Habib Balian. "The long-term economic effect of the Claremont Extension will go far beyond what is included in this report; it will change where families decide to set down roots, where businesses locate and invest, and how and where jobs are created."