The Galveston Island Trolley to Be, Or Not to Be… Successful Models Galveston Is Not Unique in Desire to Operate a Streetcar System
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The Galveston Island Trolley to be, or not to be… Successful Models Galveston is not unique in desire to operate a streetcar system. Other cities across the United States have successful systems in operation or are making plans to implement them as additions to their transit systems. Tampa, Florida Portland, Oregon Dallas, Texas Little Rock, Arkansas The List Is Quite Extensive… U.S. Streetcar Systems State In Operation Under Construction Proposed/Active Planning Alabama Birmingham Arkansas Little Rock Fort Smith Arizona Tucson Modern Streetcar Tempe Tucson Vintage Trolley California San Jose Sacramento San Francisco Los Angeles San Pedro Santa Ana Los Angeles Pasadena Glendale Oakland San Diego Colorado Denver Boulder Fort Collins Denver Colorado Aurora Connecticut Bridgeport Stamford New Haven Hartford District of Columbia Washington Florida Tampa Miami Ft. Lauderdale Sarasota State In Operation Under Construction Proposed/Active Planning Georgia Savannah Atlanta Idaho Boise Indiana Indianapolis Iowa Des Moines Kentucky Louisville Louisiana New Orleans New Orleans Massachusetts Lowell Boston Maryland Baltimore Annapolis Michigan Grand Rapids Minnesota Minneapolis St. Paul Missouri St. Louis Kansas City Nebraska Omaha New Mexico Albuquerque New Jersey Bayonne New York Rochester Manhattan North Carolina Charlotte Winston/Salem Charlotte State In Operation Under Construction Proposed/Active Planning Ohio Cincinnati Dayton Columbus Cleveland Oklahoma El Reno Oklahoma City Oregon Astoria Portland Salem Portland Lake Oswego Portland Lake Oswego Pennsylvania Philadelphia Philadelphia Rhode Island Providence South Carolina Myrtle Beach Tennessee Memphis Texas Dallas Oak Cliff Corpus Christi San Antonio Austin Utah Salt Lake City Ogden Virginia Charlottesville Arlington County (DC Area) State In Operation Under Construction Proposed/Active Planning Washington Seattle-South Lake Union Seattle-First Hill Everett Yakima Issaquah Tacoma Tacoma Spokane West Virginia Huntington Wisconsin Kenosha Milwaukee In Addition, there are several locations in Canada operating streetcar systems. SUCCESS OPERATIONS MARKETING COMMUNITY Successful streetcar systems utilize these three components Trolley Data The “good” years Though we do not have the records for the first few years starting in 1988, anecdotal information indicates the trolley ridership may have been close to 1 million passengers. Trolley Fares Trolley (Assume 90% Trolley YEAR Passengers paid) Expenses Net Operations 1992 121,238 $109,114 $262,855 ($153,741) 1993 107,016 $96,314 $283,819 ($187,505) 1994 117,577 $105,819 $262,855 ($157,036) 1995 117,299 $105,569 $253,202 ($147,633) 1996 112,204 $100,984 $121,643 ($20,659) 1997 108,036 $97,232 $212,881 ($115,649) Trolley Data The “not-so-good” years Trolley Trolley Fares Trolley YEAR Passengers (reported) Expenses Net Operations 2002 39,100 $36,982 $221,658 ($184,676) 2003 54,335 $36,962 $96,840 ($59,878) 2004 40,566 $22,752 $355,316 ($332,564) 2005 47,706 $20,899 $634,386 ($613,487) 2006 37,024 $9,225 $426,599 ($417,374) 2007 31,286 $15,342 $595,828 ($580,486) Those were some really sour lemons… …and to make it worse! …Then There Was IKE Galveston Is On The Move! …In Addition • High occupancy – Trolley Track Retail • High occupancy – Trolley Track Residential • Available hotel rooms back to pre-Ike quantities • Growth & restoration in leisure attractions • On-going beach nourishment program • Housing sales/square foot back to pre-2008 values However, With… • More People… • More Vehicles… • More Traffic… We Will Have… • Less and Less Available Advantage Parking • Greater Traffic Congestion • Unhappy Galvestonians • Unhappy Visitors We Need to Move People • There is a need to move residents • A need to move visitors • Enhance connectivity with the cruise lines, hotels, UTMB, Island attractions, the downtown retail and art districts, and the seawall beach areas • Assure consistency in scheduling • Project an air of convenience So... could it be different? In 1992 Estimated Island Visitors Trolley Ridership Percentage 3,500,000 121,238 3.5% In 2015 (If the Trolleys were running and operating efficiently) Estimated Island Visitors Potential Trolley Ridership Percentage 5,600,000 168,000 3.0% 150,000 • 150,000 is the current ridership benchmark • 102 riders per trolley, per day (avg.) • $202,500 based on 90% paid ridership at $1.50 But the costs to operate are estimated at: $624K per year Leaving the potential for a deficit of over: ($400,000) We don’t accept that as the only way! So, Let’s Just Remove the Tracks • Remove the tracks - $2,500,000 • Fix/Pave the streets - $2,500,000 • Repay the FTA for Grants - $7,500,000 $12,500,000 It would be like throwing money down the drain. And, we may jeopardize our standing for future grants… The Crossroad • $12.5 Million OR • 3.789 million • The potential costs to • Utilize the money scrap the project already allocated • Could fund a premium • $1.829 million to trolley budget for 25 yrs. restore the trolleys • Based on a $500K • $1.96 million to repair budget the tracks • Address the costs of operations Primary Stakeholders • The City of Galveston • The Parks Board • UTMB • The Cruise Industry • Mitchell Historic Properties • Landry’s Corporation • The Downtown Merchants • Property Owners (along the routes) Secondary Stakeholders • Moody Gardens • Schlitterbahn • Other Hotels We believe there is a better way… OPERATIONS MARKETING COMMUNITY 1. Restore the Trolley System 2. Connect it to other transportation 3. Treat it like a business 4. Promote it like we’re proud of it ! 5. Hold Underwriting support in reserve Promote It Like We’re Proud of It ! • Strengthen our marketing efforts • Build events around the trolley • Market the trolley like another attraction • Include trolley on/off passes in promotion packages for Cruise/Hotel Guests • Hop on/Hop off packages for Artwalk, Mardi Gras, Lone Star Rally, Pub Crawls • Celebrate your Wedding with a loop around town • Perform “The Polar Express” using the trolley Treat It Like A Business • Trolley Car Naming Rights • Trolley Stations Naming Rights • Trolley Car Exterior Advertising • Trolley Car Interior Advertising • Trolley Station Advertising • Brick Paver Sponsorships – Trolley Stops • Bench Sponsorships – Trolley Stops • Map Sponsorship and Advertising • Website Sponsorship and Advertising Creating New Revenue Streams Sources Opportunities Offering Annually Endowment Trolley Car Naming Rights 4 $25,000 $100,000 Trolley Stations/Stops Naming Rights 12 $4,500 $54,000 Trolley Car Exterior Placards 16 $5,000 $80,000 Trolley Car Interior Advertising 200 $250 $50,000 Trolley Stop Advertising 400 $100 $40,000 Interior Trolley Bench Sponsorship (The Benchmark Club) 80 $500 $40,000 Bench Sponsorships - Trolley Stops 24 $500 $12,000 Map Sponsorship and Advertising 12 $10,000 $120,000 Other Sources 5 $5,000 $25,000 $25,000 Brick Paver Sponsorships - Trolley Stops 2,000 $150 $300,000 $521,000 $325,000 Media Rates Publication Size Distribution Price Per Impression Galveston Visitor’s Full Page 150,000 $3,550/issue 0.024 Guide Houston Visitor’s Full Page 200,000 $8,095/mo 0.04 Guide Houston Family Full Page 60,000 $5,674/mo 0.10 Magazine Coast Magazine Full Page 25,000 $1,250/issue 0.05 Texas Highway Full Page 200,000 $7,120/issue 0.04 Billboard 63rd & Broadway $1,600/mo Billboard Hwy 59 & 610 $20,000/mo Billboard Digital IH 45 $2,000/mo Trolley Naming 2 sides 5.6 million $2,084/mo 0.00463 The Bottom Line With the Right Team in place… 2017 2018 2019 2020 Revenue $192,375 $196,000 $202,500 $222,750 (Fares) Revenue $407,625 $448,388 $521,000 $601,000 (Marketing) Total $600,000 $644,388 $723,500 $823,750 Revenue Operations ($600,000) ($625,000) ($650,000) ($675,000) Net $0.00 $19,388 $73,500 $148,750 We have an opportunity to make Lemonade… The Right Team (a model for success) The City of Galveston OPERATIONS MARKETING COMMUNITY MAINTENANCE ADVERTISING ADVISEMENT SCHEDULING PACKAGING ENDOWMENT If we rebuild the trolley system and only operate a bus… We can expect to achieve the same results as before. However, if we change our approach and leverage the trolley as an asset, we have an opportunity for a different outcome. Will we seize the opportunity ? OR • Opportunity to rebuild with restoration dollars already in • PAY back money we don’t place Thehave Answer is • Opportunity to promote • PAY to have the tracks connectivity removed • Opportunity to promote an • PAYReally to repair/fix Quite the track attraction route streets • Opportunity to sell Galveston • JEOPARDIZESimple future grant ! to national firms applications • Opportunity to enhance the historic aesthetics of the Island • Opportunity to contribute to the Island’s quality of life • Opportunity to break even or even make a profit Let’s seize the opportunities and show what Galveston can do ! Galveston Island has a wonderful Asset in the Heritage Trolleys… We have let that Asset decline and we have failed to seize the opportunity to restore this Asset from the ravages of Hurricane Ike. In many ways, we have been given an opportunity to correct past mistakes… A “do over”, if you will. In Addition, we have an opportunity to utilize advances in technology to improve the efficiency of the rolling stock. And we have an opportunity to position the trolley system to create revenue streams so we are not burdened with an unsustainable deficit. The Time is Now! Restore the Trolley System Restore the Galveston Trolley Members Ralph McMorris Council Rep, District 3 Co-Chair Kyle Albright East End Historic District Resident Co-Chair Craig Brown Council Rep, District 2 Member Trey Click Historic Downtown Partnership Member Joe Rozier Mitchel Historic Properties Member David Watson David Watson Architects Member Bob Brown Architect Member Becky Major The National Hotel Artists’ Lofts Member Clyde Woods The Witchery Member Robert Johnson The Front Parlor Member Wydell Dixon The Naked Mermaid Member Lynn McMorris Lt.