2030 Transit Plan Update

Charlotte Area Transit System July 21, 2015 2030 Transit System Plan Progress

Operating • LYNX Blue Line service • Enhanced Service • CityLYNX Gold Line Phase 1 Under Construction • LYNX Blue Line Extension Under Study • CityLYNX Gold Line Phase 2 • LYNX Silver Line Rail Technology/Alignment Future • LYNX Silver Line • West/Airport Corridor • LYNX Red Line • Charlotte Gateway Station Successful Expansion of Bus System LYNX Blue Line Extension

LYNX Blue Line Extension (BLE)

Project Overview • 9.3 miles, 11 stations • 4 park and ride facilities • Approximately 3,100 parking spaces

• Accommodates 3-car trains

• 25,000+ daily riders

• Improvements to North Tryon St.

• Connects UNC Charlotte campuses • 22 minute commute from Uptown to UNC Charlotte • Initial peak period service 7.5 minute frequency • Connecting bus services • Revenue service in 2017 CityLYNX Gold Line

• Rosa Parks Place to Eastland • Serves many travel markets • Catalyst for development

City of Charlotte CityLYNX Gold Line Phase 1

City of Charlotte CityLYNX Gold Line Phase I - Opening

City of Charlotte CityLYNX Gold Line Phase 2

City of Charlotte Phase 2 Project Schedule

Milestone

Submit Small Starts Application September 10, 2014

FTA Rating & Approval (Medium-High Rating) February 2015

Inclusion in President’s FFY 2016 Budget February 2015

Final Design & Bid June 2015 to May 2016

Small Starts Grant Agreement Oct 2015 to Jan 2016

Construction 2016-2019

City of Charlotte 6 Connecting Small Businesses/Employment, Education, Cultural and Sports

City of Charlotte 5 Economic Development

CityLYNX Gold Line: • Spur growth along the corridor which is expected to broaden local tax base within the corridor over the next 25 years

• BAE study indicates: – 1.1 million or more square feet in new development: • 731 additional residential units • 21,800 square feet of additional retail space • 276,700 square feet of additional office space • 101 additional hotel rooms – Increase in incremental property tax revenues could range from $4.7 million to $7.0 million per year by 2035.

11 City of Charlotte LYNX Silver Line

The Southeast Corridor/LYNX Silver Line transit study officially began in February 2015. The study is anticipated to be complete by the end of June 2016. At this point there are three overarching goals that will guide this study.

• Define a fixed rail guideway alignment that serves future transportation needs and promotes the land use plans/polices of both the Independence Blvd Area Plan and the Town of Matthews. • Provide an interim transit strategy that utilizes the future managed lanes proposed on Independence Blvd. • Coordinate with land development strategies to protect and preserve the fixed guideway alignment. Study Scope and Schedule

2015 2016 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

RAIL Initial Definition Refined Definition

• Alignments • Alignments • Technologies • Technologies Goals / • Station Locations Recs. and Background • Cost Estimates Strategies BUS Operations Plan • Service Recommendations Public Involvement

City of Charlotte Gold Line Airport - West Corridor

2025 System Plan (2002) • Bus Rapid Transit • Light rail not FTA cost-effective

2030 System Plan (2006) • Streetcar extension– post 2030 • Light rail not FTA cost-effective

Today Sprinter Service LYNX Red Line ()

• Commuter rail from downtown Charlotte to Town of Davidson (or Iredell County)

• Currently not eligible for federal funding grants for construction

• NCDOT participation necessary o Financial partners o Leadership with private railroads

• Proposed build-out in 2018 o P3 (Public-Private-Partnership)

• Candidate for design-build Charlotte Gateway Station Partnership with NCDOT

Legend: Rail & Transit Lines Intercity Rail (DC-Raleigh- Charlotte-Atlanta)& Commuter Rail (from Concord/Kannapolis) Future CATS Commuter

Future Rail (from Davidson) Gateway Station Commuter Rail (from Monroe)/Intercity Rail (from Wilmington) Commuter Rail (from Rock Hill) Commuter Rail (from Gastonia) CityLYNX Gold Line CATS Blue Line Light Rail

Charlotte Transportation Center Site serves all major corridors in Charlotte Thank You MTC Transit Funding Working Group

July 21, 2015 2006 Funding Plan

billion $8.8 Financial model through 2035 State $971 million included: • Capital and Operating expense Federal $2.5 billion • 3 main sources: • Local Sales Tax • Federal Grants • State Grants billion $5.1 • Other revenue from fares, Local Sales interest and property tax / Tax vehicle registration

2006 Economic Impact on Sales Tax Funding Gap

$5 billion ( Projected - remaining corridors - 2045)

$5 billion gap needed to advance the remaining corridors $1.7 billion

Operating • Red Line – North Corridor

• Gold Line – Center city

• Gold Line Airport - West Corridor

• Silver Line – Southeast Corridor $3.3 billion Capital

2045 The Best Minds – Best Ideas

Transit Funding Working Group • Metropolitan Transit Commission working committee • Specifically focused on: • Identifying & building awareness for funding challenges faced to complete the 2030 Transit Plan • Recommend a set of funding and financing tools and strategies

• Diverse cross-section of local business, industry and elected officials • Finance, Development, Small Business, Transit • Local Town, City, County and State elected officials

The Best Minds – Best Ideas

National Experts / Projects • Learning from national experts • How they are: • Advancing transit projects thru P3s • Using energy savings / carbon credits to finance projects • Leveraging partnerships to reduce project risk • Creating local jobs & providing ROI to private businesses • Assembling innovative funding / financing models P3 Projects: Denver’s Eagle Project Tucson’s Streetcar Cleveland’s Bus Rapid Transit LA’s Crenshaw Light Rail Line Dulles’ Metro Rail Line Denver’s Union Station NJ’s Light Rail Line One of Denver’s Models

$2.05 billion Denver – Eagle Project: • Transit FasTracks initiative Fed New $1034 million Starts • Multiple corridors advancing • Commuter rail / Bus Rapid Transit Private Activity $396 million Project Delivery: Denver Transit Partners Bonds Design – Build – Finance – Operate – Maintain • For 34 years TIFIA Loans $280 million • Transit retain asset ownership • Set fares, customer service, safety, standards Federal Grants $62million Local/CDOT $40 million GARVEE $16million Revenue Bonds $48 million Local Sales Tax $114million Chicago Infrastructure Trust

Energy Retrofit • Cross-agency project for several Chicago city departments and the Chicago Public Schools • $100 million retrofit of facilities to realize energy savings • Energy savings are shared with P3 to pay for project and provide a return on investment Chicago Infrastructure Trust • 501C organization • Appointed by Mayor with staggered terms • Allows for a more regional approach • Cross different agencies to obtain benefits and advance projects Contrasting Models

Fares / Adv./Other State • More robust and flexible funding & financing mechanisms Federal • Spreads risk across many entities Federal NCDOT • Increased upfront development potential TIFIA/RRIF Loans • Pay-As-Go • TIFs Local Sales • SAD/MSD Tax • Pennies for Progress Pay-As-You Go Capital • Expanded sales tax, etc.

Current Model Proposed Model Toolbox

Local Revenue Exploration Legislative State authorizing legislation for all P3 TIFIA Loan for BLE long-term financing methods TIF and SAD legislation which makes revenue eligible for capital (and operating) Define “System Plan” boundary for general TIF legislation costs of transit

Enact TIF district along BLE Corridor Extend SAD Legislation Sunset State legislative authority that may be Develop local infrastructure bank needed to explore transit loan programs Assess impact of changes to base by the General Additional sales tax (including Pennies for Assembly on the current ½% sales tax Progress for capital) Establish zoning incentives along corridors to attract Technical - Planning/Engineering development Combine Streetcar and West Corridors into Explore menu of options for ancillary revenue: one project o Advertising Define mode for the Southeast Corridor o Air rights Revisit project scopes and cost estimates o Naming rights Outreach o Digital kiosks/boards Initiate and maintain contact with P3 market o Carbon tax Educate other stakeholders on P3 methods o VMT o Parking o Energy Related Revenue o Debt Refunding Coordination/financial cooperation from Airport on West Corridor Streetcar MTC Next Steps

MTC Next Steps:

• Develop specific framework for each corridor to advance

• Develop framework to advance system-wide tools and strategies to assist each corridor’s advancement

• Begin actions on local and state legislation modifications needed

• Once approved develop more detailed public education efforts Questions