The Construction Authority commissioned Kleinhenz Economics, a leading economic research firm, to study the economic impact from the upcoming construction and operations of the Pomona to Claremont A Line Extension. The report, which was released last week, quantifies the economic impact for Los Angeles County from the initial capital investment to build the light rail extension (including jobs created, economic output, labor income and tax revenues at the county, state and federal levels), as well as the ongoing economic benefits to the county once passenger service begins.

Below are some key highlights from the report’s conclusions:

As highlighted in the report, during the seven-year design and construction phase alone (2026 to 2032), the project will generate more than $1.13 billion in economic output, support more than 4,700 jobs and produce more than $481 million in labor income. Workers will see an average annual income of $101,000. Furthermore, construction activity is estimated to generate more than $154 million in tax revenues, including more than $20 million in revenues for Los Angeles County.

In short, for every $1 million spent during the next seven years of final design and construction, the project will generate $1.6 million in total economic output for the region.

Once passenger service begins, the ongoing operations will continue to generate return on investment for the county. The report found that for every $1 million spent operating the extension, the project will generate $7.6 million in total economic output for Los Angeles County, driven by effects across the supply chain and from household spending.

Under an 8-minute headway scenario during the first three years of operations (2032 to 2034) alone, the project is estimated to generate nearly $460 million in economic output, support nearly 1,200 annual jobs and produce more than $490 million in labor income. The average annual wage for supported jobs is estimated at $137,000, which, like the average annual wage during construction, is significantly higher than the county’s median earnings. More than $123 million in total tax revenues will be generated in the first three years of operations, with Los Angeles County receiving approximately $22 million of that total. These economic benefits continue in perpetuity once passenger service is underway, and also result in even greater benefits if the line is operated at more frequent headways.

The report by Kleinhenz Economics concludes by noting that the actual economic benefits of the Pomona to Claremont Extension are likely even greater than quantified, as the study does not capture Metro A Line riders spending around the stations, the project serving as a catalyst for transit-oriented development near the rail line, the economic activity generated by residents and businesses at these new developments, and the environmental and public health benefits from reduced traffic congestion and vehicle emissions.

You can read the full report by clicking here.

You can also read media coverage in the San Gabriel Valley Tribune, L.A. Business First, Progressive Railroading, Mass Transit Magazine, Metro Magazine and American Rails.