A demand for an outrageously
expensive insurance premium has stalled construction of the 2.3-mile trolley
linking the Tampa Convention Center and historic Ybor City. The streetcar
tracks must cross a CSX freight line at grade on 13th Street in Ybor City but
the railroad won’t approve an operating agreement unless the nonprofit Tampa
Historic Streetcar, which will run the trolleys, insures the junction for $500
million. “This is really a problem,” Michael English, president of the group
told the Tampa Tribune. “The premiums for that could be anywhere from
$800,000 to $1 million a year. That doesn't even include our own liability
coverage. It's a threat to our system.” The entire project is costing $31.5
million, and its annual operating budget is only $1.8 million. But CSX
spokeswoman Kathy Burns told the Tribune that the high premium is
required because of the potential for expensive lawsuits if there was a
collision. She said $500 million is the industry standard and is being required
for all new passenger systems, including commuter lines in Charlotte and
Raleigh, N.C. “We're living in a very litigious society,” said Burns. A gate
will be installed at the crossing and CSX is designing an interlocking that
should prevent any crashes. An official of the Hillsborough Area Regional
Transit Authority said he’s known about the insurance requirement for years but
Tampa Mayor Dick Greco and other leaders said they’ve just learned about it.
Greco has appointed a consultant to negotiate with the railroad in hopes of
reaching a compromise that would bring the premium down to a reasonable level.
