California’s Foothill Gold Line Construction Authority (Construction Authority) released a comprehensive report, prepared by Kleinhenz Economics, detailing the significant economic benefits that will result from the upcoming construction and operations of the 2.3-mile Claremont extension of the Metro A Line.
The report, "Economic Impact of the Claremont Extension of the Metro A Line on the Los Angeles County Economy," quantifies the economic impact within 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.
Generating Income
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.
Additionally, construction activity is estimated to generate more than $154 million in tax revenue, including more than $20 million 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, according to the Construction Authority.
"This project is more than just a rail line; it is an economic catalyst for Los Angeles County," stated Foothill Gold Line Board Chair Ed Reece. "Connecting Claremont to the Metro A Line represents a transformational investment that will create thousands of high-paying jobs, generate substantial tax revenues, and provide lasting economic benefits for generations to come."
Continued Success
Once passenger service begins, operations will continue to generate a 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 eight-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.
A five-minute headway scenario analyzed in the report showed an even higher return on investment across the same metrics.
"The study confirms what we have always seen throughout the various extensions of the Metro A Line from Los Angeles through the San Gabriel Valley — that the return on investment from the project is significant," added Foothill Gold Line CEO Habib F. 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.”
Possibility for More
The report by Kleinhenz Economics concludes by noting that the actual economic benefits of the Claremont Extension are likely even greater than quantified, as the study does not capture Metro A Line riders spending around the stations, the project catalyzing 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.
