About MTA Capital Construction Company

What is MTA Capital Construction Company?
MTA Capital Construction Company is a new company formed in July 2003 as part of a major reorganization of the Metropolitan Transportation Authority. The company’s mission is to manage major capital expansion and Downtown Manhattan transit infrastructure projects.

Why is MTA Capital Construction Company needed?
The MTA was formed in 1965 as a federation of various transportation entities in existence at that time. This loose structure became less effective over its 37-year history, especially in recent years as Capital Program projects increased in size and complexity. MTA Capital Construction will serve as the construction management arm of the MTA on projects that may cost as much as $20 billion over the next two decades “By providing a single point of focus, MTA Capital will allow us to advance system expansion as well as existing construction and improvement initiatives with a coordinated approach that tells New Yorkers we are serious about getting the job done, on time and within budget,” said MTA Chairman Peter S. Kalikow.

What specific projects will MTA Capital focus on?
The expansion of the MTA network is largely guided by the strategies laid out in New York State Governor George E. Pataki's Master Links, a plan to create transportation hubs that allow easier transfer between the component parts of the MTA system and other providers of mass transit and to increase mass transit service in the New York region.

MTA Capital Construction will focus on multi-billion dollar projects that will expand the nation’s largest regional transportation network, including:

“These projects will dramatically enhance commercial, economic, residential, and cultural development of New York City and the surrounding areas,” said Katherine N. Lapp, MTA Executive Director.

MTA Capital will also oversee security-related capital construction projects, budgeted at nearly $600 million, which will enhance the ability to protect customers and facilities.

Where does the funding for these projects come from?
MTA capital projects are funded from a combination of bond sales and federal, state, and local allocations. President Bush’s FY ’04 Executive Budget recommended the East Side Access Project for a "Full Funding Grant Agreement" (FFGA) and for $75 million in FY ’04 appropriations. “This commitment of federal funding makes us more confident than ever that these critical projects will move forward as planned,” said Mr. Kalikow.

Why are other MTA agencies being reorganized?
The overall purpose of the reorganization is to streamline the MTA and refocus its operating agencies on their core transportation missions by creating single-mission transportation companies, each with a broad regional focus.

The MTA's efforts to serve the changing transportation needs of its customers in a timely, creative, and cost-effective manner have increasingly been hobbled by organizational drawbacks in the current loose federation of MTA agencies. Chairman Peter S. Kalikow has noted that "The MTA has an obligation to the public to spend each dollar wisely, and we have come a long way in the past few years. Many millions of dollars will be saved when this reorganization is fully implemented. Beyond this, however, MetroCard and E-ZPass have changed the way New Yorkers think about their travel patterns. More people are using mass transit than in the past, yet congestion remains a major challenge for our region. We need to employ creative solutions to these challenges in order to maintain New York's competitive position in the national and global economy."

Executive Director Katherine N. Lapp also emphasized the need “to move beyond our past and focus on where we are going. We need to be faster and more responsive to the changing travel patterns of our customers.”

How will the reorganization affect the other agencies?
Enabling legislation for the rest of the MTA’s restructuring plan is pending in Albany. It is expected to be voted on during the fall legislative session and will create four additional companies, each with a single transportation mission: