Feasibility Report Wilmington Rail Realignment and Right of Way Use Alternatives Feasibility Study June 2017 Introduction The City of Wilmington (the “City”), the Wilmington Urban Area Metropolitan Planning Organization (WMPO), and the NC Department of Transportation (NCDOT) directed that a study be performed to investigate the feasibility of realigning the existing CSXT railroad line that traverses in a “V” shape through the City. Moving this line will provide a new location for rail access to the Port, and offer the potential of repurposing the existing CSXT railroad corridor for transit use. Note that this is a high level planning document and does not reflect or state otherwise the policies or positions of NCDOT regarding use of a specific approach or modal alternative. This study approaches these initiatives as two separate but linked projects: 1) The development of a new freight rail corridor and realignment of the freight traffic to this corridor to provide a more direct route to Navassa 2) The reconfiguration of the existing tracks to provide a path for a heritage trolley or similar light transit within the City. This feasibility report covers many aspects of the project across a wide spectrum of detailed areas of investigation. Project success will depend on successful negotiations of rights, agreements and control. Therefore, at a very high level, the four primary prominent aspects for project success are: 1) Developing agreements between the key players such as City, the State of North Carolina (NCDOT/NCSPA)/North Carolina Department of Commerce), CSXT, regulatory agencies and the Surface Transportation Board (STB). 2) Obtaining STB concurrence that CSXT will retain control and ownership of the realigned freight rail corridor. 3) Retaining a single rail access controlled by CSXT to the Port. 4) Allowing CSXT to retain control of the northern leg of existing Beltline corridor and negotiating an agreement for transit service to operate within the CSXT corridor along the south side. Other significant aspects for consideration include: Derive and present data and cost‐benefit analyses to drive state and federal funding, compete for grant funding and assure return on public and private investment. Infrastructure investors will be interested in transit redevelopment potential along the repurposed or dual use rail corridor. The return‐on‐investment for the freight rail realignment indicates that private investment may take a wait‐and‐see position for this initial phase. The City will need to establish zoning and other Feasibility Report | Page | 1 regulations, which are favorable for the development of the trolley system to show the City’s resolve to move forward. Environmental benefits of transit use on the rail line are a minor factor due to the replacement of longer delays a few times per day for freight trains with shorter delays multiple times per day for a trolley system. Shorter delays is a positive result offsetting the impacts of a new corridor. Interim alternatives will have a level of impact, and despite efforts to mitigate, they are not desired as an optimal solution long term. Phases of the project planning process can be undertaken sequentially in manageable components to minimize risks in project investment and development thus reducing the risk to the City. The CCX Intermodal hub is currently in development near Rocky Mount NC on the CSXT A‐Line. The proximity to Wilmington will likely increase intermodal freight moves from the Port once completed. How CSXT chooses to modify their network once CCX is in operation has not yet been determined. It is anticipated that CSXT intermodal traffic from the Port of Wilmington will be sent to both Charlotte and CCX for classification. There are other benefits to the project including an improved quality of life, reduced risks which are accounted for in the benefit cost analyses using generalized data. The list of benefits may grow once the final design is developed and the benefits can be measured quantitatively. The following is a list of potential benefits associated with the development of the freight and transit projects: Freight Improved freight rail access to business properties on the west side of the Cape Fear River. Shorter freight rail transit time between CSXT’s Davis Yard and NCSPA’s Port of Wilmington, as well as customers near the NCSPA such as Colonial Oil and Vopak. No increased congestion in the City due to rising volumes of trains serving the NCSPA per day. Slightly lower freight rail fuel usage and emissions due to shorter length of track. Greatly reduced number of crossing conflicts with freight trains on the Beltline in Wilmington. Reducing the impacts of cars idling for significant periods due to long freight trains could also help improve runoff water quality, air quality and fuel savings. Lower highway maintenance, fuel usage and emissions as more containers are converted to freight rail, lessening the number of container trucks on the highways. CSXT will have a shorter, newer track requiring less short‐term maintenance than current track and less crossings to maintain. Reductions in risks from derailments to the City proper. Curtail noise due to freight trains being realigned across the Cape Fear River to a less populous area. Potential benefits to the NCSPA from more direct rail routes. This may translate to less residential opposition to Port growth that then furthers industrial recruitment. Reduced diversion and or blockage of emergency vehicles. Feasibility Report | Page | 2 Transit Expands the City’s streetcar history. Likely increase in redevelopment and land values in proximity to transit stops. Possible increase in City’s population density around transit stops. Offer other mobility options for citizen in the study area. Reduces demand for surface parking lots and parking decks, particularly in downtown Wilmington and near UNCW. Promotes walking and biking as other mobility options in the City. Decreased automobile dependency. Repurposed use of existing/vacant/underutilized infrastructure along trolley corridor Reduction of vehicle ownership due to transit options. Ability to deliver students and university employees to UNCW from within the City limits. Leverage existing surface parking near the trolley corridor during major events to bring large volumes of people downtown to the Northern Riverfront Park, Pier 33, Thalian Hall, Cape Fear Community College, or specific events such as the Azalea Festival, Riverfest, Independence Day Fireworks, etc. Technical Reports The summaries below reflect the information presented in the 14 technical reports: Technical Report A ‐ Socioeconomic Conditions The demographic and socio‐economic characteristics of New Hanover and Brunswick Counties, the City and the study area are indicated in Table 1 through Table 5, inclusive. Realignment of the freight rail corridor and reuse of the existing railroad corridor along the Beltline are considered together as the “actions being considered” for the purpose of this study. The Wilmington region is experiencing brisk growth, rebounding strongly since the 2008‐2009 recession. The total population in New Hanover, Brunswick, and Pender Counties in July 2015 was 401,700, and by 2036, another 150,000 people are anticipated to make the region their home. Table 1: POPULATION CHANGE Population Population Percentage Annualized Geographic Location Population 2000 2010 Increase Increase Growth Rate Study Area 40,461 43,223 2,762 6.8% 0.7% Brunswick County 73,143 107,431 34,288 46.9% 3.9% New Hanover County 160,307 202,667 42,360 26.4% 2.4% North Carolina 8,049,313 9,535,483 1,486,170 18.5% 1.7% Source: U.S. Census Bureau, Census 2010, and Census 2000, Summary File 1 100% Data, Table P1 and P001 "Total Population." Places of regional importance include downtown Wilmington, the Port, the Wilmington International Airport (ILM), the University of North Carolina at Wilmington (UNCW), Cape Fear Community College (CFCC), New Hanover Regional Medical Center (NHRMC), and the NHRMC Orthopedic Hospital. Feasibility Report | Page | 3 Table 2: POPULATION BY RACE American Indian Black or African and Alaska Other Geographic Area White American Native Asian Race Study Area 59% 37% 1% 0% 1% Brunswick County 84% 11% 0% 1% 2% New Hanover County 81% 15% 0% 1% 1% Source: U.S. Census Bureau, American Community Survey 5‐year Estimates (2009‐2013), Table B02001, "Race." Data averaged over a five‐year period from 2009 to 2013. Currently, residents across the region rely mostly on automobiles for travel, and meeting the residents’ needs to connect to their jobs will become more challenging as traffic congestion worsens with population growth. Wilmington adopted a comprehensive plan to help the City meet future challenges, with a defining focus on urban growth (The Create Wilmington Comprehensive Plan, adopted in 2016). Table 3: POPULATION BY POVERTY STATUS Geographic Area Percentage of Population Below the Federal Poverty Level Study Area 30.6% New Hanover County 16.9% Brunswick County 16.6% Source: Five‐year estimates, U.S. Census American Community Survey. Data averaged over five‐year period from 2008 to 2013. Land Use The City’s downtown core is one of the most important areas in the region. It is a vibrant mix of new and old residential developments and neighborhoods, entertainment, retail and restaurants, hotels, office and service oriented business centers. Portions of the study area along the CSXT Beltline may be appropriate for redevelopment; that is, transit‐oriented redevelopment. Table 4: POPULATION DENSITY Southeastern Cities in the U.S. Population Per Square Mile Wilmington, North Carolina 2,070 Charlotte, North Carolina 2,460 Virginia Beach, Virginia 1,760 Savannah, Georgia 1,320 Source: QuickFacts data are derived from: Population Estimates, American Community Survey, Census of Population and Housing, Current Population Survey. Mobility A robust multimodal transportation network supports Wilmington, including river traffic, airline travel, freight rail lines, major streets and highways, local streets, public transit, bikeways, trails and greenways and sidewalks.