Go For the Gold Why Streetcars are a Win for Charlotte May 24, 2013 C ontents Introduction 4 Background on Charlotte’s Streetcar System 5 Benefits ofStreetcar Systems 6 Economic Benefits 6 Charlotte-specificEconomic Benefits 6 Social Benefits 8 Charlotte-specificSocial Benefits 10 Environmental Benefits 10 Charlotte-specificEnvironmental Benefits 11 Selected Case Studies of Streetcar Systems in the United States 12

Acknowledgements Case Study: Portland 13 Background and Impacts 13 We want to thank the following people for their contributions to this report. Funding 14 Case Study: Seattle 14 Research Team: Rachel Kilman, Grace Carr, and Roxana Boyd, undergraduates at Davidson College; Background and Impacts 14 Geoffrey Fey and Charlotte Isenhower, Sustainable Technologies students at Central Piedmont Funding 15 Community College; Shanell Campbell Undergraduate at Johnson C. Smith University; Dylan Case Study: Little Rock 15 McKnight, Urban Design and Community Planning Masters Candidate at UNC Charlotte; and Becky Background and Impacts 15 Johnson, Environmental Management Masters Candidate at Duke University Funding 16 Modern Streetcar System Funding Plans 16 Research Team Manager: Justin Agans, Spengler & Agans, PLLC Cincinnati 16 Graphic Design: Jeff Ream, Sustain Charlotte; and Brian Deck, architecture undergraduate at UNC Los Angeles 17 Charlotte Milwaukee 17 Kansas City 17 Lead Author: Becky Johnson, Environmental Management Masters Candidate at Duke University Conclusion 19

Editors: Shannon Binns, Founder of Sustain Charlotte; and Rob Perks, Transportation Advocacy Director at Natural Resources Defense Council ntroduction ackground of Charlotte’s Streetcar I B System

The growth and expansion of Charlotte Consolidated Construction Company This report represents the combined efforts of students from Davidson College, Central in the late nineteenth and early twentieth signed a $40,000 contract with the Edison Piedmont Community College, UNC Charlotte, Johnson C. Smith University, and Duke centuries was intimately bound with Electric Company to construct an electric University. The purpose of this report is to both educate the public about streetcars the installation and development of its streetcar system, revolutionizing the and to provide local policymakers with additional data so that they can make informed streetcar network. In January 1887, transportation industry. The Charlotte decisions regarding the proposed Gold Line. The report examines the background of horse-drawn streetcars first appeared streetcar reopened in August 1996, and Charlotte’s past and proposed streetcar systems and their expected economic, social, and in Charlotte. They had a dramatic ran fairly regularly for a decade before environmental benefits. Also discussed are several other streetcar systems in the United impact upon the growth of Charlotte being shut down once again when the light States: the history, impacts, and funding of two modern systems, one historic system, and by facilitating the rise of the city’s first rail system began operation. the funding strategies and sources of several planned modern systems. residential suburbs. The Elizabeth College streetcar line enhanced the prospects for Today, Charlotte is poised to realize real estate development in the surrounding the benefits of streetcars once again countryside, including the farms along and is following the lead of many other Providence Road. Additionally, the forward thinking cities such as Portland, neighborhood now known as Myers Park Seattle, Atlanta, and Cincinnati that was originally developed in the early have developed or are planning modern 1900s into a lavish, sophisticated suburb. streetcar systems. These modern systems Among the essential amenities of Myers will have many of the benefits of historical Park was a streetcar line. This type of systems, as well as additional economic, streetcar-dependent development in many social, and environmental benefits, as areas in and around Charlotte greatly outlined in this report. influenced the city’s positive growth and In Charlotte, the streetcar project is progress. Within two years, the streetcars known as the CityLYNX Gold Line, and had become a symbol of Charlotte’s is an integral part of the 2030 Transit economic prowess and competitiveness. Plan. There are currently two phases of “Charlotte has something that every city of the project. Phase I consists of a 1.5 mile the same size hasn’t,” boasted the Charlotte section, which is fully funded and under Chronicle, on January 24, 1889. construction. Phase II will extend the By the 1930s, however, personal system an additional 2.5 miles. Once automobiles had become widespread Phase II is completed, an additional six in the United States. Cars, a symbol of miles of the system will be initiated in freedom for many Americans, caused a appropriate phases. The completion decline in the use of the streetcar system of the entire Gold Line will serve as a in Charlotte. On March 14, 1938, the backbone for connecting the entire rapid streetcar system was shut down. transit system, resulting in economic development for the area and an enhanced Decades later, in 1981, the Charlotte transportation system as outlined below.

Go For the Gold Go For the Gold 4 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 5 Table 1. Returns on Investment in Streetcar Systems

City Streetcar Infrastructure Development Investment Return On enefits of Streetcar Costs along Route Investment Systems Portland, OR $103.2 million $3.5 billion 34 : 1 B Little Rock, AR $28 million $400 million 14 : 1 Tampa, FL $48.3 million $1 billion 21 : 1 because of their fixed tracks. Permanent Economic Benefits Kenosha, WI $5.2 million $150 million 29 : 1 transit systems provide assurance to The economic benefits of streetcars have businesses and bring in transit-oriented Memphis, Tennessee $104.3 million $2 billion 19 : 1 been demonstrated numerous times development. While have the in many cities across the country and flexibility of shifting their route, streetcars the world. From a city’s perspective, are committed to staying in one particular Table 2. Expected Development along Gold Line from 2015-2035 streetcars are extremely useful in area because the tracks are in the ground. spurring investment and development, Extension Corridor No Gold Line Expected Gold Line Change/ thereby driving up property values and From a citizen’s perspective, streetcars Scenario Scenario Increase tax revenue. In Washington, D.C., a provide a tremendous economic benefit in Residential Units 1,189 1,920 +731 terms of reduced transportation costs. By study done on the potential benefits of a Retail SqFt 56,153 77,953 +21,800 streetcar system found that tax revenue commuting via streetcar, citizens save on would increase by $238-291 million, gas, auto repairs, tires, and insurance. The Office SqFt 36,2479 639,207 +276,729 meaning they could recoup the $1.5 billion American Automobile Association, Inc. streetcar development cost in only six estimates that the average cost of driving Hotel Rooms 288 389 +101 years. Other cities have also found a very is about $0.60 per mile. The average high rate of return on their investment in American commuter could save nearly $15 Table 3. Change in Gold Line Tax Increment Finance Revenue streetcar systems (Table 1). per day, or $3,750 per year, by not driving to work. Year Increment: Change Existing TIF Annual Gold Line Not only do streetcars generate substantial in Assessed Value Rate TIF Revenue revenue for a city, but they also create a 2020 $ 560,704,555 0.4370 % $ 1,960,223 significant number of jobs. Infrastructure projects, both on the streetcar itself Charlotte-specific Economic 2025 $ 1,121,409,109 0.4370 % $ 1,718,598 Benefits as well as the additional surrounding 2030 $ 1,752,930,422 0.4370 % $ 1,724,548 development, require a great deal of In January 2013, the city hired Bay Area human capital and manpower. In fact, 2035 $ 2,354,133,419 0.4370 % $ 5,497,176 Economics (BAE) to conduct a study projects that reduce traffic, such as on the potential economic impacts of streetcars, provide the most jobs for the a streetcar system. The findings were Table 4. Change in Gold Line Municipal Service District Revenue money invested. According to Smart presented to the City Council Economic Growth America, for every $1 billion Year Total Assessed Value Gold Line Annual Gold Line Development Committee on May 16, 2013. invested in public transit, more than MSD Rate MSD Revenue The study compared the CityLYNX Gold 16,400 job-months were created, while the 2020 $ 5,995,481,606 0.0200% $ 1,199,096 Line scenario to a “no Gold Line” scenario same amount spent on road development with existing service. The results of 2025 $ 6,556,186,160 0.0200% $ 1,311,237 created less than 8,000 job months. the study are summarized below and in 2030 $ 7,187,707,473 0.0200% $ 1,437,541 Streetcars are also more effective than Tables 2-4. buses at spurring economic development The BAE study found that the 2035 $ 7,788,910,470 0.0200% $ 1,557,782

Go For the Gold Go For the Gold 6 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 7 development of the Gold Line would result positive impact on Charlotte’s economy. amount of time spent in traffic above that for in any benefit-cost analyses of public in an estimated addition of 731 residential needed to complete a trip at free-flow transportation projects. units, 21,800 square feet of retail space, Furthermore, the Gold Line will help speeds. Streetcars, as a part of a complete 276,700 square feet of office space and alleviate traffic congestion and therefore transportation system, could save An additional element of rail transit that 101 hotel rooms (Table 2). This represents the costs of congestion, which are individual commuters up to forty hours a serves to amplify all of the described social an approximate increase of at least 1.1 significant. In 2011, the total cost of year that would normally be wasted sitting benefits is the fact that it attracts higher million square feet in new development. congestion in Charlotte was estimated in traffic. ridership numbers than other forms of The study suggests that the increase in to be approximately $653,000,000. This public transit, such as buses. It attracts development would occur because Phase 2 number includes the value of travel delay Streetcars are also an important part of between 34-43% more riders than bus of the CityLYNX Gold Line would increase for 2011 (estimated at $16.79 per hour a multi-modal transportation system, service on equivalent routes. There are homebuyer, renter and commercial tenant of person travel and $86.81 per hour of something that is very attractive to the many cases of cities that have found very demand for locations along the Gold Line truck time) and excess gasoline and diesel Millennial generation. This generation is high ridership numbers on their streetcar corridor and motivate developers to invest consumption estimated using state average defined as the population between 17 and systems. The City of Tacoma saw a 500% in additional development. cost per gallon. In addition, the general 35 years old. The National Association of increase in riders when it converted an economic impacts described above will Realtors has found that Millennials drive existing bus line to streetcar service. The study also considers the increase in also hold true for Charlotte. less and own fewer cars than previous When Portland opened its first line in property tax revenues from a potential generations, and as a result, they view 2001, they projected 2,800 daily riders. Tax Increment Finance (TIF) district, access to public transportation as a must The line now carries over 10,000 riders and an additional charge to existing and when they consider their housing needs. per day. Conversely, Seattle saw ridership new Municipal Service District (MSD) Social Benefits Two-thirds of the Millennial generation drop to one-fifth of what it had been when districts. The earliest year that a TIF favor public transportation and smart- they temporarily substituted buses for district could be established would be One of the most impactful social benefits growth as solutions for traffic, and 71% streetcars on one of its lines. 2015, which also would mark the first full that streetcars bring to a community is believe that their community would year of operations after Phase 1. The TIF connectivity between neighborhoods, benefit from an expanded and improved While the higher ridership numbers district is expected to see an increase in activity centers, and greater opportunities. public transportation system. A city or associated with streetcars has been assessed values starting from a baseline of Unlike systems which generally town that wants to be a competitive and empirically shown, the reasons for this $0 in 2015 and growing to $561 million in operate on the outskirts of city downtown attractive place for this generation must phenomenon are still unclear. However, 2020 and ultimately $2.356 billion in 2035 centers, streetcars are far more effective therefore have a comprehensive and there are several factors that likely (Table 3). at improving the pedestrian experience complete transportation system. contribute to streetcars’ appeal. First, because they run directly through and rail transit operates on a direct, visible There are currently three MSDs in between activity centers. An additional Streetcars also are beneficial to the route. Passengers can see exactly where the Uptown and Midtown areas that benefit that arises from increased health of a community. Rail commuters they are going and do not have to figure include parts of the Phase 1 and Phase 2 connectivity is a greater sense of are 80% less likely than the average out confusing bus lines or schedules. CityLYNX Gold Line corridors. For the community. By connecting disparate American to become obese. They walk Second, rail transit provides easy loading BAE study it was assumed that either the neighborhoods, streetcars extend the an average of 19 minutes per day, while and unloading for the elderly and boundaries of these MSDs are extended distance that a person can walk and allow the average American walks only 6 handicapped, as well as those with small and/or new MSDs are created so that all them to visit and become familiar with minutes per day. The Center for Disease children and bicyclists. Third, since rail properties within the Phase 1 and Phase areas they would not normally be able to Control recommends at least twenty-two transit is powered by electricity, the ride is 2 CityLYNX Gold Line corridors would access. minutes of walking per day. Additionally, smooth, clean, and quiet. Contrasted with be located within an MSD. An MSD tax injuries sustained while taking public buses, which are subject to often bumpy rate of 0.02 percent is assumed throughout As an alternative to driving personal transportation are around 1/25th less street conditions, streetcars operate on the Gold Line corridors as an additional vehicles, streetcars reduce traffic likely to be fatal than those associated rails for a much smoother ride. charge for existing MSDs (Table 4). congestion on highways and roads in with automobile injuries. The avoided and around the city. In 2011, Charlotte healthcare and other social costs, although Many streetcar critics argue that buses From the BAE study, it is clear that the commuters experienced 28,974,000 difficult to quantify, are a clear benefit can provide all of the same social benefits development of the streetcar will have a hours of delay, which is measured by the of streetcars and should be accounted as streetcars for less cost. However, what

Go For the Gold Go For the Gold 8 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 9 these critics fail to realize is that not only a much-needed connection between private automobiles or taxis will prevent The development of a streetcar system in do streetcars provide additional benefits different parts of the light rail system 4,321 tons of CO2 from being released Charlotte will also cut down on carbon such as easier loading and unloading for that are currently in place or proposed. into the atmosphere each year. Portland dioxide emissions and oil use. In 2011, the elderly, disabled, and children, but also Currently there is no connection between has also estimated that the emissions Charlotte commuters released 296,000,000 by virtue of the fact that they attract more the LYNX Blue Line and the proposed from residential development along their pounds of carbon dioxide and consumed riders, all of these benefits are amplified. LYNX Red Line extension. The streetcar streetcar corridor are approximately 65% 14,599,000 gallons of fuel, both due to will provide a way for commuters to less compared with suburban households, congestion and in addition to what would seamlessly travel significant distances in, while emissions from commercial be released or consumed in free-flow around, and outside of the city. development are approximately 45% less. traffic. Charlotte-specific Social Benefits

With the completion of the CityLYNX Environmental Benefits Charlotte-specific Gold Line, Charlotte will experience all Environmental Benefits of the social benefits described above. By cutting down on personal vehicle travel, Specifically, Charlotte will benefit through streetcars effectively conserve natural Charlotte is located in an 8-Hour Ozone increased connectivity between several resources and reduce emissions of ozone, Nonattainment area, which means that universities that are located directly carbon dioxide, and other air pollutants. it does not meet the national primary or close to the streetcar line. These Streetcars operate using electricity, which or secondary air quality standards for academic institutions include Queens means there are no direct emissions ozone. Mecklenburg and the surrounding University, Johnson C. Smith University, into the local environment. Cities may counties are the only areas in all of North Wake Forest University Charlotte Center, also source their electricity from clean, and South Carolina that do not meet Central Piedmont Community College, renewable energy sources, potentially the federal standards. Ground-level Northeastern University’s graduate making streetcars a zero-emissions form of ozone has many harmful health effects campus, Johnson & Wales University, and transportation. Additionally, streetcars are on both humans and the environment. University of at Charlotte more environmentally friendly than buses Children, the elderly, people who exercise Center City. Many of the riders of the because they can accommodate almost outdoors, and people with lung cancer are streetcar are anticipated to be students at twice as many passengers as a bus, thereby particularly susceptible to ozone’s effects. these institutions. reducing the amount of vehicles on the Ozone can also harm sensitive vegetation road. and ecosystems that make up the forests, While Charlotte has experienced a great parks, and natural areas in and around deal of growth and development in As part of a multi-modal, comprehensive Charlotte. neighborhoods like Ballantyne, South transit plan, streetcars encourage Park, and South End, there are areas that concentrated, urban and mixed use The most significant sources of air have not seen as much investment. The development along its fixed tracks. This pollution are mobile sources due to the streetcar will promote investment in more denser style of living decreases the need high level of commuter traffic. Therefore, areas of the city by connecting the western for vehicles travelling from place to place a major strategy to come into compliance and eastern parts of Charlotte. These and can significantly reduce the carbon with air quality standards is to expand parts of the city have been highlighted by dioxide emitted annually per household by public transportation options that Mayor Anthony Foxx as places with people up to 45% over suburban environments. encourage people to use their cars less. that “have as much ambition as someone This will not only help Charlotte and the from south Charlotte.” The streetcar will Many other cities have realized the surrounding communities avoid the legal provide enhanced access to these areas and environmental benefits of streetcars. penalties associated with nonattainment, encourage development. According to the City of Cincinnati but will also have positive health effects on Climate Protection Plan, the number of the population and the environment. Additionally, the streetcar will provide people riding the streetcar rather taking

Go For the Gold Go For the Gold 10 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 11 Case Study: Portland In the 1960s, Portland was experiencing sprawling suburban, business, and retail elected Case Studies of development that was draining the vitality from the city center. To combat Streetcar Systems in the United this, Portland focused on transit and States cooperative planning as a way to drive S the central city towards the thriving, successful one it is today. One of the key aspects of this planning was the creation of There are currently thirteen historical livable, and accessible cities. However, the system , which was streetcar systems and two modern like any major transit project, streetcars part of a unique public/private strategy streetcar systems in operation in the require a large amount of planning and to link investment in high quality transit United States. The two modern systems capital. The case studies below summarize service with major redevelopment. are located in Portland and Seattle. the background, impacts, and funding Twenty-two modern streetcar systems are After over a decade of planning and strategies for several streetcar systems in currently being constructed or are in the construction, the streetcar began major cities around the United States. Background and Impacts planning and design stages in cities all operation on July 20, 2001. The initial over the country. The map below shows the location of each modern, historical, Table 5. Funding Sources for Portland Streetcar and planned streetcar system in the United Source Amount (in Millions) States. The growing number of planned City Parking Fund $2 systems and the rapid rate of development City Parking Bonds $28.6 make it clear that modern streetcar City Transportation Fund $1.7 systems are becoming an integral element of future transportation plans of modern, Connect Oregon $2.1 Federal Transit Administration $75 Federal Transportation Funds $5 Gibbs Extension Savings $0.66 Local Improvement District $34.9 Portland Development Commission $27.68 Regional Transportation Funds $13.62 SDC/Other City Funds $6.11 State Funds for Vehicles $20 Stimulus Funds $0.36 Tax Increment (North Macadam URA) $12.2 Tax Increment (South Park Blocks URA) $7.5 Tax Increment Funds $1.8 Transfer $0.15 Transportation Fund $0.6 Transportation Land Sale $3.1 Transportation Systems Development $2.5 U.S. HUD Grant $1.95 Miscellaneous $3.89 Total $251.42

Go For the Gold Go For the Gold 12 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 13 ridership goal was 3,500 riders during Case Study: Seattle and water taxis. Due to the success of Case Study: Little Rock weekdays. This goal was immediately the SLU line and the anticipated success surpassed, and currently the ridership is Background and Impacts of the First Hill line, Seattle has also History and Impacts as high as 12,000 during weekdays. There planned the Broadway Extension, which have also been significant development Like Portland, Seattle wanted to create will connect even more diverse people In 1995, Little Rock initiated a downtown changes along the corridor. Since 1997, a multi-modal transit system as a way and neighborhoods to the Broadway retail revitalization plan to spur economic when the streetcar alignment was first to provide new urban mobility options district. development and reignite the metropolitan identified, approximately $3.5 billion has that would enhance the city and regional urban core. An important aspect of this been invested within two blocks of this transportation system while shaping and Funding plan is the River Rail Streetcar system, alignment. This investment has realized supporting continued economic growth. which was emphasized as an integral part The South Lake Union Line was developed 10,212 new housing units and 5.4 million The South Lake Union Streetcar was of the larger project, meant to enhance without the use of the City of Seattle square feet of office, institutional, retail the first part of this endeavor and was the efforts by serving as a connector for General Fund. The centerpiece of the and hotel construction. Overall, 55% meant to transform a rundown industrial tourists, visitors, and locals to major creative financing package of the project of development in the Central Business neighborhood into something that is more activity centers. The streetcar has been was a $25.7 million Local Improvement District since 1997 has occurred within vibrant and intensive. Since the SLU line praised as an instrumental marketing tool District, by which local property owners 1-block of the streetcar. The real estate and began operation, the consensus in Seattle for businesses and government agencies in agreed to establish a special property tax development community has recognized is that it has been very successful. There attracting growth and visitors. levy reflecting the benefits they will receive the streetcar as the main catalyst for these have been significant economic changes from the investments in the streetcar. changes. due to the planning and development of this streetcar. Within a three block radius Federal and state grants and funds from The first phase of the streetcar began The streetcar has also contributed to of the streetcar line, approximately $2.4 the sale of surplus City properties in the operation on November 1, 2004. The increases in property values in Portland. billion in investment has occurred, driving South Lake Union area comprise the second phase opened a few years later, Between 1997 and 2003, the value of property values to increase at a higher remainder of the funding for a total budget in February 2007. The Central Arkansas properties near the streetcar increased by rate than city-wide rates. Raw land value of $52.1 million. The breakdown of the Transit Authority subsequently conducted 44% for single-family residences and by within three blocks of the line increased funding is below: : a study on the economic impacts of the 112% for raw land. From 2003 to 2008, in value by 123%, and mixed use property ■■ Federal: $14.9 Million River Rail Streetcar on the surrounding Portland experienced a 60% increase value increased by 81%, compared to area between 2000 and 2012. It was in property values for industrial, 95% 53% and 50% for the city-wide averages, ■■ State: $3 Million found that 957 new residential units increase for single-family residences and respectively. This investment has were developed, 13,194 employees were ■■ Local Improvement District: $25.7 101% increase for raw land. amounted to an additional 2,500 housing added or retained, over 5 million students Million units and 12,500 jobs. There were also or visitors came to the city, and $816.5 Funding 16,000 construction jobs created from ■■ Surplus Property Proceeds: $8.5 million was invested in the area. The streetcar-oriented development over the The Portland Streetcar was funded from Million study area has also seen a 21% increase in past six years. a variety of sources. The total budget population, a 56% increase in residential The First Hill Line is fully funded through to build 7.35 miles of track was $251.42 property values, and 44% increase in retail Seattle has planned a second streetcar line, a voter-approved sales tax measure. Seattle million, which averages out to $17.1 property values. The study concluded the First Hill Streetcar, which will provide has also secured funding for the planning million per mile of track. See Table 5 for that the River Rail Streetcar successfully connections to the light rail, a university, and design of the Broadway Extension. the breakdown of the and a hospital and is not currently well- contributed to downtown revitalization by served by buses. Construction began attracting capital investments, generating in 2012, and operation is expected to tourism, enhancing residential living, start in mid-2014. The line will provide helping job growth and retention, and connections to a variety of different transit increasing property and sales tax revenue. options, including the Amtrak passenger rail, the light rail system, regional train service, bus lines, bike networks, ferries,

Go For the Gold Go For the Gold 14 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 15 Funding Local funding for the Streetcar Project comes from $64 million in proceeds from While Little Rock’s streetcar system is a bonds as well as $6.5 million in streetlight Los Angeles Milwaukee While Little Rock’s streetcar system is a sale proceeds and private contributions. historical system rather than a modern The $64 million in bond proceeds is one, it provides a model of a successful backed in three ways. streetcar that has significantly contributed to the local economy. It was funded by The first is the Property Tax Capital, which several Congressional earmarks totaling consists of $28 million of bonds backed by $24 million, as well as $6 million of local appropriating over several years a portion contribution split evenly between the cities of the $28.9 million collected by the city of Little Rock and North Little Rock, and annually for property taxes. Cincinnati Pulaski County. The Central Arkansas City Council approved this measure in Transit Authority is also selling naming 2010. Los Angeles has planned a four-mile The Milwaukee Streetcar has been rights and has a sponsorship program to streetcar system that will contribute to The second way is through Tax designed in order to project an image help pay for the streetcar costs. the economic growth of the region and Increment Financing (TIF), which will of a modern and forward-thinking city stimulate movement to the downtown’s back $11 million. An additional $14 that will help attract outside investment, historic and entertainment facilities. The million will come from Fund 762 Urban business, and talent. Currently, the final Streetcar will be funded by a combination Redevelopment Tax Increment Equivalent design team is in place and construction Modern Streetcar System of federal and local dollars. The Federal Fund which collects service payments is scheduled to begin in the spring of Funding Plans Transit Authority only approves funds from Westin/Star and Hyatt Saks. By law, 2014. The capital costs for the initial route once a local funding match is in place. it is not available to help with the current are estimated at $64.6 million. For the Cincinnati For Downtown L.A., that commitment city budget. initial route, federal funding would supply is known as a Communities Facilities $54.9 million, and $9.7 million will come Thirdly, the city will sell the Blue Ash District (CFD). The CFD was approved from local sources. The City will seek Airport for $11 million. The City Council by voters on December 3, 2012, and it federal funding opportunities to finance has approved an additional $15 million will fund approximately 50% of capital secondary route extensions. to front costs in relation to Duke Energy’s costs (i.e.: design, engineering and relocation of utilities. construction.) Operations will be covered Kansas City by fare revenues and government sources. Cincinnati’s vision for their streetcar is a The remaining $6.5 million in local system that spurs development and is part sources will come from the sale of city of a larger multi-modal transportation streetlights to Duke Energy in 2009, The CFD will raise $62.5 million in capital system that links areas outside the worth $3.5 million, as well as $3 million funds for construction of the Streetcar. As downtown core and throughout the in contributions from Duke as part of is the case with any bond, administration, region. The final design is complete, Duke’s 2008 Electric Security Plan. A issuance costs and other fees are part of and the city is currently seeking bids for small amount of private contributions are the bond total in addition to the actual construction of the system. The streetcar included in this total. capital being raised. The maximum “not to is funded by local sources as well as three exceed” amount set for the streetcar CFD federal grants. The federal grants are is $85M. Based on this maximum amount, reimbursement grants. This means that the majority of residential units included Scheduled to become operational in the the grants will reimburse the project for in the CFD will pay less than $100 a year, summer of 2015, the Kansas City Streetcar 80% of its eligible expenses. The remaining with the median rate for a 1,000 square will fill a long-noted gap in the resurgent 20% is required local match and will be foot unit coming in at roughly $60 a year. downtown. It will be funded through a provided by city sources. variety of federal, state, and local sources.

Go For the Gold Go For the Gold 16 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 17 Seventy-five percent of the funding The City is committed to reducing will come from local public and private the commercial assessment further by sources. The primary funding source supplementing with other funds such as will be a Missouri Transportation downtown on-street parking revenues. onclusion Development District (TDD). Within Overall, the maximum cost to residential this boundary, special assessments will property owners is $133 for every $100,000 be applied to cover the portion of the dollars of value, based on state and C project costs not covered through other federal funding that the project is likely to federal, state, and City funds, as well as secure. For commercial property owners, The City of Charlotte and the towns within Mecklenburg County have made a strong ongoing operation and maintenance. The the maximum figure is $1,536 for every commitment to the integration of land use and transportation planning. As a part of this revenue sources for the TDD break down $1,000,000 dollars of value. commitment, leaders in the Charlotte region have established a growth strategy and transit as follows: vision, the 2030 Transit Plan, which calls for providing more transportation choices to Additionally, the City is preparing a federal the citizens of Charlotte and the surrounding areas. An integral part of the transit plan -A 1% sales tax within the TDD boundary TIGER grant application for $25 million. is the City LYNX Gold Line. As city manager Ron Carlee has described, the City LYNX Other federal funds, special low interest -A special assessment on real estate within Gold Line will “provide a critical economic development tool to focus growth along key financing, and cost saving measures are corridors...and will serve as the backbone for connecting the entire 2030 Corridor System the TDD boundary, with the following also expected to reduce overall project maximum annual rates: Plan together.” Based on the projected economic, social, and environmental benefits that cost. the streetcar system will have for Charlotte, and the extensive benefits other cities with -$0.48 for each $100 of assessed streetcars have realized, as described in this report, it is clear that investing in the City value for commercial property LYNX Gold Line is a win for Charlotte. -$0.70 for each $100 of assessed value for residential property -$1.04 for each $100 of assessed value for property owned by the City The proposed TDD rates take into account differing assessment rates for residential and commercial property to ensure that costs are spread equally. There will also be a supplemental special assessment on surface pay parking lots within the TDD boundary (this does not include private lots or lots dedicated to residences and businesses). The rate is $0.15 per pay parking space. Property with non-profit uses will have a $0.40 cost for each $100 of assessed value, but because the first $300,000 of market value is excluded, most non-profits will have no streetcar costs. There is also no streetcar assessment on market value greater than $50,000,000 for non-profit uses.

Go For the Gold Go For the Gold 18 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 19 Go For the Gold Go For the Gold 20 Why Streetcars are a Win for Charlotte Why Streetcars are a Win for Charlotte 21