Fy 2014 Tiger Grant Application

PROVIDENCE STREETCAR

CONNECT. GROW. THRIVE.

FY 2014 TIGER GRANT APPLICATION

CONTACT INFORMATION

Bonnie Nickerson, AICP Director of Long-Range Planning Department of Planning + Development 444 Westminster Street, Suite 3A Providence, Rhode Island 02903 401.680.8534 OFFICE 401.680.8492 FAX [email protected] www.providenceri.com CONTENTS

1. Project Description 1 2. Project Parties 5 3. Grant Funds + Sources / Uses of Project Funds 6 4. Selection Criteria 7 a. Primary Selection Criteria 7 i. State of Good Repair 8 ii. Economic Competitiveness 9 iii. Quality of Life 13 iv. Environmental Sustainability 16 v. Safety 17 b. Secondary Selection Criteria 18 i. Innovation 18 ii. Partnership 20 c. Results of Benefit-Cost Analysis 22 5. Project Readiness 22 a. Technical Feasibility 22 b. Financial Feasibility 24 c. Project Schedule 28 d. Assessment of Project Risks + Mitigation Strategies 29 6. Federal Wage Rate Certification 31

Supporting Documentation is available at:

https://www.dropbox.com/sh/hq5emzi42nnzrcu/Fy6Qxsfd SD

LIST OF supporting documentation

BENEFIT-COST ANALYSIS BCA Technical Report – Providence Streetcar 2014 Providence Streetcar BCA Update COST ESTIMATE Technical Report B_Operations Plan Technical Report P_Cost Estimation Methodology and Results FUNDING PLAN 2014 Funding Plan Update TIF Plan TIF Ordinance LETTERS OF SUPPORT MAPS OTHER PLANS City of Providence Comprehensive Plan Providence Tomorrow City of Providence Cultural Plan Greenprint State of RI Land Use Plan State of RI LRTP 2035 State of RI TIP Transit 2020 Report Growing Smart with Transit TECHNICAL REPORTS Final Locally Preferred Alternative (LPA) Report Providence Metropolitan Transit Enhancement Study_Appendix E Providence Streetcar Opportunities Technical Report A_Final Definition and Evaluation of Alternatives Technical Report B_Operations Plan Technical Report C_Ridership Forecasting Methodology and Results Technical Report D_Conceptual Engineering Report Technical Report E_Streetcar Vehicle Technical Requirements Technical Report F_Streetcar Traction Power Supply and Distribution Technical Report H_Public Involvement and Agency Coordination Report Technical Report I_Traffic Operations Impacts Technical ReportJ_On-Street Parking Impacts Technical Report L_Streetcar Economic Impact Analysis Technical Report P_Cost Estimation Methodology and Results 2013 Technical Report Q_Finance Strategy NEPA Draft Environmental Assessment Technical Report M_Environmental Technical Reports (Resources Not Substantially Affected) Technical Report N_Environmental Technical Reports (Resources To Be Potentially Impacted) Technical Report O_Environmental Technical Reports (Additional Supporting Information)

1. PROJECT DESCRIPTION

INTRODUCTION

The Providence Streetcar is an urban circulator that will connect Rhode Island’s two largest employment hubs and world- class institutions to the downtown core and adjacent neighborhoods, while passing directly through the City’s key redevelopment area, made available by the recent relocation of Interstate 195. The project emerged from a robust public planning process as the preferred option to improve multimodal connectivity, create needed value in the Capital City, and enhance the City’s livability, walkability and vibrancy. This significant transportation infrastructure investment is critically needed to advance the City’s economic recovery and position Providence for sustained growth and economic opportunity into the future.

TIGER Amount Requested: $29 million

Capital Cost: $117.8 million

TIGER Route Length: 2.1 miles

End-to-End Travel Time: 15 minutes

Frequency: 12-min (peak) 15-20 min (off-peak)

Streetcar Stops: 12 stops, approx. every 800 feet

Vehicles Required: 3 active plus 1 spare (total of 4)

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Operating Costs: $3.2 million (2019$)

Other Funding Sources: City TIF Bonds RIPTA CMAQ RIDOT Land Transfer RICAP

1 Serves Brown Univ., 2 Serves 45,000 daily 3 Serves theaters, 4 Links to the Brown 5 Serves nearly 10,000 RI’s 2nd largest RIPTA riders at Kennedy cultural venues, the Medical School while people at the state’s employment center, a Plaza and is a 5 minute Central Library, the catalyzing development largest employment hub historic residential walk to Providence Convention Center, and in the emerging I-195 in the Hospital District neighborhood, and Station the Dunkin’ Donuts District primary commercial Center street

PROJECT NEED

The Providence Streetcar emerged from an eight year planning process as a primary way to advance three goals – enhance access to jobs, education and services and multimodal connectivity (CONNECT), spark value creation and job growth (GROW), and contribute to the City’s quality of life and quality of place (THRIVE). In recent years, with the downturn of the economy and the City and State’s struggle to regain jobs and grow the economy, the Streetcar’s potential to catalyze, concentrate and accelerate growth has been a central driver in advancing the project forward. At 11.2%, Providence’s unemployment rate is nearly twice that of the national average, and Rhode Island has the unfortunate distinction of being the state with the highest unemployment rate in the country. Outside investment is critically needed to stimulate the City and State’s recovery. The City is acting boldly and strategically to invest in its long-term success, while ensuring its attractiveness as a place to invest, start a business, put down The City of Providence is designated as an Economically Distressed Area by roots, and raise a family. the U.S. Economic Development Administration (EDA). Despite its recent economic struggles, Providence is a city rich with world- renowned institutions of higher education, regional centers of healthcare and research, and a strong creative class of artists and entrepreneurs, which has earned the City the nickname of the “Creative Capital”. These characteristics are the cornerstone of a viable knowledge-based economy. Four key geographical areas have emerged to form a nexus of existing and emerging institutional and creative networks - Downcity (Providence’s downtown core), The Link (the 20 acres of former highway right-of-way land now available and pad-ready for redevelopment), College Hill (home to Brown University and the Rhode Island School of Design), and the Hospital District (a cluster of first class medical and research institutions).

If these areas are to grow and help to rejuvenate the economy, there must be a high-quality, direct, and attractive public transit service to connect the institutions, job centers and distressed neighborhoods with “The Link” redevelopment area. The Providence Streetcar would provide reliable, efficient transportation between these points, and to transit connections to the rest of the state and region. It would further enhance the synergy between Over 20 acres of new land is now available for redevelopment in the Knowledge District after the I-195 relocation (source: City of Providence’s technology and life sciences sectors, Providence) concentrating development along its route for private, commercial, and institutional interests to build upon, and would truly be a Transportation Investment Generating Economic Recovery.

As home to the greatest concentration of transportation, employment, medical, educational, and cultural facilities in Rhode Island, the health and vibrancy of the Capital City is essential to the state’s well-being. A truly integrated, multimodal transit system will serve as a ladder of opportunity that will improve access to jobs, education and services, economic competitiveness, and enhance quality of life from a local and regional perspective, attracting more people to live, work, visit and invest in Providence. In addition, the demand for unique and sought-after amenities—cultural institutions, entertainment districts, tourist destinations, and superior mass transit infrastructure—is expected to increase dramatically in the coming years. Businesses want to locate in a stimulus-rich environment, with urban amenities that will attract and retain a new generation of employees. The addition of a streetcar system will allow Providence to boast all of these amenities, and enhance the City’s key strategic asset– its quality of place.

WHO WILL THE STREETCAR BENEFIT?

The streetcar creates an urban circulator network that provides access to jobs, educational opportunities and needed services and amenities. The project will benefit a broad spectrum of users who live, work and visit Providence, including those who are transit-dependent for a variety of reasons. A primary group of users will be those living in disenfranchised neighborhoods seeking better connections to the State’s two largest employment hubs for a range of job opportunities serving a variety of skill and education levels. Another key group of users will be those seeking better connections to educational opportunities and jobs offered by the seven colleges and universities on the route, ranging from a community college to an Ivy League institution. 2

Downtown office workers will benefit from the streetcar by creating a direct transit connection to Downtown destinations from the RIPTA bus hub, and to the Amtrak / MBTA station. Visitors to Providence will be able to park once and enjoy a number of key cultural sites, tourist destinations and restaurants. Residents within the streetcar corridor will have the option to live and thrive in Providence without the need to own a car. Finally, with the addition of the Streetcar, we will attract new transit riders to Providence’s multi-modal transit network.

A comprehensive Environmental Justice analysis was conducted for the Providence Streetcar project. This review examined the potential impacts of the project on households without vehicles, minority populations, and low-income households. The evaluation found that the streetcar project would indeed serve areas with significant low-income and transit- dependent populations. Key findings include:

 The number of households in the project area without vehicles is higher than the State and/or City averages throughout the corridor (24.93% of households in Upper South Providence have no vehicles);  A high concentration of minority and low-income residents live in Upper South Providence, at the southern terminus of the streetcar line (75.23% of the Upper South Providence population are minority residents and the median household income is $24,181); and  A concentration of low-income residents also live on College Hill (comprised of a significant number of students).

The Environmental Justice analysis concluded that the streetcar project does not pose disproportionate burdens to low-income populations (or disproportionate benefits to higher-income populations). In fact, the Streetcar will provide substantial benefits to low- income and transit-dependent populations, including:

 Increased access to regional and statewide job opportunities in areas with high unemployment rates;  Improved connectivity to popular educational, shopping, recreational, and cultural destinations; and  Additional access to vital city services.

STREETCAR: THE MISSING LINK IN PROVIDENCE’S COMPREHENSIVE MULTIMODAL NETWORK

Providence is the statewide hub for local, regional, and intercity transit services, but it lacks seamless connections to residential and employment activity centers just outside of the downtown core. Until recently, our densely developed downtown was within easy walking distance of this statewide hub. However, the increasing expansion of Downtown beyond the traditional core has created a need for an urban circulator to provide high capacity, attractive connections for these extended walk distances. Furthermore, transit ridership on RIPTA has grown by 11 percent over the last three years. The Capital City is in need of greater mobility choices, higher-capacity services and direct seamless connections between key areas creating a nexus for future growth. The proposed streetcar would provide passengers with quick and reliable transportation between Kennedy Plaza and key office, retail and entertainment destinations both within, and beyond the downtown core.

Together with our partners at RIPTA and the State, we are making great progress toward creating a stronger, more viable multimodal transportation system. There are many exciting new investments underway to improve bus service, enhance bike mobility and improve the downtown pedestrian environment. Several of these investments such as a new Rapid Bus Line, a new bike- share program, new bike lanes, and pedestrian improvements will be implemented this year. The streetcar route was selected, in part, because of the direct connection through Kennedy Plaza, the proximity to the Providence Train Station, the shared use of the RIPTA bus tunnel, the shared station stops with the new Rapid Bus service.

The Streetcar is the thread that connects these exciting investments together and truly makes the complete multimodal network greater than the sum of the parts.

Kennedy Plaza Transit Hub & Planned Transformation The Providence Streetcar will pass directly through Kennedy Plaza, the largest transit hub in Rhode Island with extensive connections to RIPTA bus routes and intercity bus services, connecting passengers from around the state to downtown Providence. Kennedy Plaza is the busiest ground transportation hub in Rhode Island, serving more than 45,000 passengers and more than 2,700 bus trips daily. The plaza will also serve as a connecting point to RIPTA’s new Rapid Bus line, providing high-frequency connections to the adjacent urban communities of Pawtucket and Cranston. For commuter and intercity rail connections, the streetcar stop at Kennedy Plaza is less than 1/3 mile (a 5-7 minute walk) from the Providence Amtrak/ MBTA train station. Together, the transit hubs at Kennedy Plaza and the Providence train station enable local, regional, and national connections from the streetcar.

The City has allocated $2M to transform Kennedy Plaza into a vibrant and dynamic public space while retaining its importance as a regional transit hub. The transformation plan includes reducing the number of bus berths in the center of the plaza through scheduling improvements, allowing the bus-only lanes in the heart of the plaza to be re-imagined for a more balanced public use. Raised roadways will allow for better pedestrian connectivity and a “civic plaza,” that will become the center for a variety of activities. Construction will be completed by October 2014.

Providence Station Rail Hub & Planned Multimodal Improvements Over 4,000 passengers use this major stop on Amtrak’s Northeast Corridor every day and ridership continues to grow. Providence Station is in the top 3 for ridership in MBTA’s system and is number 14 out of the 500 Amtrak stations in the country. In addition, Rhode Island is aggressively expanding commuter rail options. Rail service connecting the T.F. Green State Airport in Warwick to Providence and Boston was initiated in December 2010. Service was further extended to Wickford Junction in April 2012. These new extensions will serve nearly 2,000 additional passengers by 2020 and bring more than 250 passengers from the airport into Providence each day. The RIDOT received a $5.7M grant from proposed streetcar project would provide much needed circulation for the FHWA to improve transit, pedestrian increasing number of employees traveling to downtown Providence via and bicycle connections at the Providence Train Station. commuter rail.

RIDOT received a $5.7M grant from the Federal Highway Administration (FHWA) to improve the station’s pedestrian and transit entryways. The project will greatly improve the streetscape, create a new bus stop with real-time bus arrival information and a RIPTA ticket-vending machine, and additional bike storage and create better accommodation for queued taxis at the station. The new stop will be served by RIPTA’s new R-Line Rapid Bus service, which will connect Kennedy Plaza and the Train Station by transit every ten minutes. The construction project will coordinate with the work to connect Kennedy Plaza to the Providence Train Station and will begin in fall of 2014.

Connections Between Kennedy Plaza and Providence Train Station RIPTA received a $400,000 FTA Bus Livability grant in 2012 to better connect Kennedy Plaza and the Providence Train Station. The grant is being used to extend pedestrian, bus, and bicycle access improvements to better connect Kennedy Plaza with the Providence Train Station. Improvements will include streetscape enhancements, including reconstructed sidewalks for ADA compliance, and additional crosswalk improvements, street furnishings and plantings, and intersection signal adjustments. Enhancing walkability between the train station and bus and streetcar operations at Kennedy Plaza will play a vital role in strengthening connections to the region and beyond. Work performed under this Bus Livability grant will also preserve the RIPTA received a $400,000 FTA Bus Livability grant in 2012 to improve opportunity for potential future streetcar connections between these two connectivity between Kennedy Plaza hubs. These improvements will be implemented in fall of 2014. and the Train Station.

Rapid Bus (“R-Line”) A new Rapid Bus line, launching in June of 2014, will carry over 10,000 riders a day, enhancing access to downtown Providence from Cranston and Pawtucket. Uniquely branded vehicles, stop amenities, roadway improvements, and more frequent service will improve the speed and attractiveness of bus service along the State’s highest use bus corridors. The R-Line’s connection to the Providence Streetcar for downtown-area circulation will further enhance mobility for urban residents along this eight mile urban corridor.

Private Shuttles Several of Providence’s major institutions (including Brown University and Rhode Island Hospital) operate private shuttle services for students and/or employees. Both institutions have expressed their support for coordinating and integrating these independent services with the Providence Streetcar. With the streetcar, some of the existing private shuttle services can be reduced or eliminated in favor of the streetcar that serves a broader market, thereby increasing efficiency and limiting parking expansion needs.

New Bike-Share Program The City of Providence is currently working with Alta Bicycle Share and Social Bicycle to implement a third-generation bicycle-share system that will launch in 2015. The City of Providence is home to a progressive cycling community, and the City’s bicycle share program will complement existing city efforts to promote environmentally friendly, alternative modes of transportation. The initial launch of the system will include 200 bicycles at 20 stations throughout Downtown, the Hospital District, and the College Hill, Fox Point, and Federal Hill neighborhoods. The City plans to expand the system to include other neighborhoods in the future.

Potential for two new downtown bus hubs RIPTA, together with RIDOT and the City, has conducted a preliminary study to determine whether the introduction of additional downtown Providence transit terminals could improve service for existing riders, enhance downtown accessibility and mobility, and resolve operational challenges due to crowding at Kennedy Plaza. This study found that the introduction of new downtown transit hubs would improve service for statewide bus passengers, and would help alleviate concerns at Kennedy Plaza. RIDOT is now moving forward to further develop the concept of an expanded intermodal station at Providence Station.

2. PROJECT PARTIES

The City of Providence is the applicant for TIGER funds for this project. As the TIGER grant recipient and the eventual owner of the Providence Streetcar system and its assets, the City will be responsible for project implementation, procurement, administration, operations, and overall liability. The related fiscal responsibilities for project overruns, and all capital, operating and maintenance needs of the system, will also be held by the City. The City will retain ultimate responsibility for these tasks even if we elect to delegate some, or all, of these roles in the future.

As the capital city of a small state, the City works closely with other governing entities on a daily basis. Several key partnerships have already been established to guide this project, and we will continue to draw on the strengths and expertise of these entities, formalizing agreements to develop a viable and practical structure for project delivery and operation.

The Rhode Island Public Transit Authority (RIPTA) has been a major partner in project planning, previously taking the lead to guide the project through feasibility level planning, an Alternatives Analysis (AA) and the Environmental Assessment (EA). RIPTA and the City also have cooperative funding and management partnerships on several other active transit projects, including a HUD Sustainability Communities Grant to implement transit supportive land uses along RIPTA’s R-Line Corridor and the Kennedy Plaza work that is being conducted as part of the Downtown Circulator project.

RIPTA is the NEPA sponsor for the Providence Streetcar and has recently submitted a Draft EA to FTA. The City and RIPTA have had initial discussions about RIPTA serving as the operator of the system for the City. As the statewide transit operator, RIPTA is well-positioned and has the expertise to take on this new role and mode. These discussions will continue this summer, when the Mayor convenes a group of stakeholders to evaluate the best and desired approach to project delivery and system management.

The Rhode Island Department of Transportation (RIDOT) will play a prominent role in project development activities and will lend their construction management and rail expertise to the project. It is also anticipated that Governor Chafee will designate RIDOT as the State Safety Oversight Agency (SSOA), providing the agency with the authority to adopt and enforce laws and guidelines related to the safety of streetcar operations. RIDOT will have the authority to review and approve all streetcar safety plans.

Finally, both RIPTA and RIDOT will also serve as funding partners. RIPTA will provide a small share of its state Congestion Mitigation and Air Quality (CMAQ) funding towards the project and RIDOT will donate surplus land for a streetcar maintenance facility. A summary of the agreed upon project roles and responsibilities is provided in the following matrix:

Table 2.1 Roles and Responsibilities for Providence Streetcar Project CITY OF RIPTA RIDOT PROVIDENCE Project Owner  Project Operator  Assumed designee TIGER Grantee  NEPA Sponsor  Design / Construction Manager   Procurement Manager   Rail Safety Oversight Agency (SSOA) 

3. GRANT FUNDS + SOURCES/ USE OF PROJECT FUNDS

TIGER REQUEST + COST OF PROJECT

The City of Providence is requesting $29 million in TIGER Discretionary Grant funds to See “Cost Estimate” folder In Supporting Documentation complete the local finance plan for this $117.8 million (in $2018) project. TIGER funding will constitute 24.6% of total project costs and supplement a number of other federal, state and local funding sources, which are described in more detail in Section 5.B - Financial Feasibility.

TIGER + OTHER CAPITAL FUNDING SOURCES Table 3.2 Capital Funding Sources FUNDING SOURCE AMOUNT The City of Providence plans to use a mix of federal, state and local funding sources to construct the initial $117.8 US DOT Competitive Grant (TIGER) $29.0 M million segment of the Providence Streetcar. The Other Federal Sources following funding sources have been identified: RIPTA CMAQ funds $5.3 M RIDOT land transfer $0.8 M Since our TIGER application in 2013, we have made Non-Federal Sources significant progress in our local financial plan and have City of Providence TIF Revenue Bond $57.7 M reduced the size of our TIGER grant request by $10 State of RI Capital Funds $15.0 M million. The project now proposes a 30% federal RI Convention Center Bond $10.0 M investment, with 70% matched by local funding. TOTAL $117.8 M Other federal sources include a capital CMAQ contribution from RIPTA and a transfer of a RIDOT owned parcel previously purchased as part of the I-195 relocation project.

AVAILABILITY + COMMITMENT OF FUNDS

The City and its partners are committed to making the Providence Streetcar a reality and a See “Letters of Support” and viable funding plan is detailed in Section 5.2 - Financial Feasibility. Recent actions and “Funding Plan” folders in Supporting Documentation specific provisions related to capital funding support are identified below: However, federal assistance is still critically needed to allow the City of Providence to make this long- term investment in our public infrastructure and generate needed economic recovery.

 City Council has taken the first steps towards creating a new Streetcar Tax Increment Financing (TIF) District by voting to advance legislation to the Council’s Ordinance Committee in April 2014. The Tax Increment Finance Project Plan submitted to City Council is included in the Funding Plan folder as supporting documentation, along with the TIF Ordinance.

 The City is committed to two additional revenue sources to support operations, as described later in this document. These include: 1) a short-term dedication of a portion of parking meter revenues as an interim source of revenue until TIF revenues reach levels sufficient to support debt service; and, 2) a Special Assessment District for tax-exempt medical and educational institutions along the route. Special Assessment Districts are explicitly authorized by state law and are in use in several municipalities across the state. Additionally, the two largest institutions in this Special Assessment District have been close project partners throughout the project planning process and contributed local matching funds to complete the AA/EA.

 The RI Convention Center Authority is located several hundred feet from the Streetcar route and is aware of the significant mobility and circulation benefits that the new transit service will provide to their clientele and workforce. In recognition of these benefits, and since the Convention Center is a tax exempt entity that will not contribute to the TIF District, the Authority will leverage its ability to finance projects at competitive rates by issuing an initial $10 million bond to support early project development.

 Governor Lincoln Chafee and the RI General Assembly work jointly to program state capital expenditures including the RI Capital Plan (RICAP) fund which supports approximately $100 million in infrastructure, roadway and other capital improvements each year. The Governor has encouraged the use of these funds to reduce the reliance on project bonding for desired roadway and transit improvements, proposing about $35 million to be dedicated to such projects in FY14, alone. Discussions with the new House Speaker were conducted immediately following his election in March and the City will request $15 million over four years for the Providence Streetcar, which may be provided from RICAP funds, or another state fund.

 Rhode Island’s Transportation Improvement Program (STIP) sets aside approximately $3.3 million each year in Congestion Mitigation and Air Quality (CMAQ) program funds for RIPTA, a level that has been consistently programmed over the past 10 years for transit services, revenue vehicles and other transit programs. Approximately 35% of RIPTA’s CMAQ program will be dedicated to the Providence Streetcar over a six-year period, including the $5.3 million identified above, and a short-term operating subsidy during the first three years of streetcar operation.

 RI Department of Transportation (RIDOT) will transfer a parcel of state-owned land to the City of Providence for use as a streetcar maintenance facility. This parcel, located under the I-95/195 interchange has a current assessed value of $800,000. RIDOT will also provide construction management to reduce project expenditures on construction.

4. SELECTION CRITERIA

A. PRIMARY SELECTION CRITERIA

“Rhode Island needs to make an investment to develop and maintain a seamless, integrated, high quality transit service that builds on and complements the existing system. An investment in transit will yield numerous benefits; decreased congestion on our roadways; increased economic development potential Statewide; improved environmental quality, including reducing greenhouse gas emissions that threaten significant climate change;…and a preservation of the quality of life that distinguishes Rhode Island.”

-Transit 2020 Report

i. STATE OF GOOD REPAIR

The City of Providence is requesting TIGER assistance to further leverage local funds committed for investment in our capital city to create and maintain a high quality streetcar service that seamlessly integrates with other transit modes. With transit ridership in our state growing by more than 11 percent over the last three years, we are confident this investment will yield numerous benefits: decreased congestion on our roadways; increased economic development potential; reduced greenhouse gas emissions; and an augmentation of the unique quality of life that is distinguished by the historic and densely developed nature of both our city and state.

COMMITMENT TO THE STATE OF GOOD REPAIR PHILOSOPHY

Maintaining a transportation system in a State of Good Repair is the foundation for being able to provide mobility connections to new jobs, education and services. The City of Providence will achieve State of Good Repair goals for the Providence Streetcar by providing a sustainable source of revenue to support operations and asset maintenance over the long term. Our commitment to a State of Good Repair philosophy is further demonstrated by a number of transportation re-investment projects in progress today.

Sustainable Funding for Operations and Maintenance A key component of maintaining systems in a State of Good Repair is to ensure that sufficient long-term funding for operations and maintenance is available. The funding plan for the Providence Streetcar project includes an emphasis on value capture techniques, which provides a long-term, growing source of revenue to support operations. Additionally, RIPTA has committed that no existing funds currently used to support bus operations will be diverted to support the planned streetcar service. This approach helps to maintain the long-term viability of the bus network, recognizing the importance of all modes of transit in meeting the needs of Providence and the surrounding area.

RIPTA’s State of Good Repair Approach As an operations partner, RIPTA is fully committed to maintaining its infrastructure in a State of Good Repair, as demonstrated by the following:

• Construction of a new $41M operations center in 2010 with indoor bus storage to replace an outdated and undersized facility; • Recent replacement of significant portions of the bus fleet, including 50 new buses in 2013 alone; • Efforts to upgrade the East Side Tunnel, used by more than 6,000 patrons each day; • The deployment and active use of a full-featured Asset Management System to monitor the condition of physical assets; and • The inclusion of facility and capital asset repairs in the state’s Long Range Transportation Plan, Transportation Improvement Program, and in RIPTA’s Capital Improvement Plan.

City of Providence’s State of Good Repair Approach The Providence Tomorrow Comprehensive Plan is rooted in sustainability principles, which includes maintaining existing infrastructure in a State of Good Repair. With regard to the street network within which the Providence Streetcar project will be integrated, the plan provides a specific objective to “manage the effectiveness of Providence’s roadway network, including its street grid, by investing in operational and reconstruction improvements.” The City is committed to maintaining its infrastructure in a State of Good Repair. For example, the City is currently conducting a comprehensive $40M program to rebuild and repair approximately 65 miles of roads in the city, including $4.2M to be invested on 11.4 miles of roads within ¼ mile of the streetcar route. The work will be completed by the fall of 2015.

PROVIDENCE STREETCAR CONNECTS TO NEARBY STATE OF GOOD REPAIR PROJECTS

East Side Tunnel A critical link in the streetcar route is the RIPTA owned and operated East Side Tunnel, which runs east/west under College Hill in Providence, connecting Thayer Street to the east with North Main Street to the west, with a 100 foot change in elevation. The 1,800-

foot long tunnel allows RIPTA vehicles to climb College Hill at a manageable 4.5% grade, avoiding the grades in excess of 10% on the streets above.

The East Side Tunnel was originally built for streetcar use in 1914. Streetcar tracks were removed in the late 1940s and the tunnel has since been used for bus traffic. Seven routes currently utilize the tunnel for 327 trips every weekday carrying nearly 6,000 daily passengers. Critical tunnel upgrades will support 6,000 daily bus passengers, as well as future streetcar passengers. (source: City of RIPTA received an $820,000 State of Good Repair grant in 2012 to help support Providence) the first major renovation to the East Side Tunnel in 20 years. The work will begin in spring of 2015 and will include the replacement and upgrade of the entire stormwater drainage system within the tunnel, including underdrains, downspouts, and catch basins, enhancing the structural protections on the west entrance (North Main Street) of the tunnel, including the tunnel support columns and the exposed substructure of buildings above the tunnel. Work will also include roadway safety upgrades, and improvements to reflective lighting and signage to enhance pedestrian and vehicle safety. The funds will also be used to design and upgrade the portal areas to make them safer and more convenient. The portal area improvements will be designed to support future streetcar service. In preparation for the streetcar and as an improvement for existing bus service, additional passenger amenities will be included at the transit stops at the east and west entrances to the tunnel.

City of Providence Road Improvement Project The Providence Streetcar project will support efforts to improve city streets by making much needed improvements to additional roads, including improvements to the roadway surface itself as well as the surrounding streetscape, including adjacent sidewalks. Many sidewalks in the Jewelry District are in a poor state of repair, and the streetscape improvements associated with the Streetcar project will enhance pedestrian access along the streetcar corridor. ii. ECONOMIC COMPETITIVENESS

As the City and State continue to recover from a sluggish economy and struggle with high unemployment rates the need to advance the City and State’s economy is paramount. There are two driving factors to move this investment forward now: the promise of this investment to catalyze development and spur long-term job growth and the economic mobility that will be generated through apprenticeship and workforce training opportunities and connections to education and job opportunities. By routing the streetcar into the Upper South Providence neighborhood, this investment will reach underserved areas with chronic unemployment and provide a direct link to jobs, education, training and services.

WORKFORCE DEVELOPMENT

The City of Providence is proud to be on the leading edge of Workforce Development initiatives, and enthusiastically believes the Providence Streetcar project provides an excellent opportunity to further advance our achievements in this area. Three key local programs are highlighted below; each is in place today and will help us in to create new “ladders of opportunity” for our local workforce as part of the streetcar project: “FHWA is proud of the work done through this partnership…creative programs such as these are key to improving the economic conditions in Building Futures Rhode Island and nationally. Building Futures and RIDOT are to be commended for training The City is a strong partner with Building Futures, a construction minorities and women, diversifying our industry partnership established by the State Workforce Investment workforce, and preparing them for RIDOT- Board. In 2013, they were named as the winner of the Governor’s related construction jobs – that is a great return on our investment.” Workforce Board’s Innovation Award for their work in placing qualified individuals in registered construction apprenticeships through this Peter Osborn, the RI Division Administrator for program. FHWA (2012)

Building Futures helps the construction industry meet its needs for a skilled workforce, while creating career opportunities for low- income residents through registered apprenticeships. Building Futures partners with 17 Providence-area building trades unions, the building trades council, and construction contractors to provide them with qualified and pre-screened applicants for apprenticeship openings. In this way, Building Futures helps the unions access neighborhood residents, helps rationalize and streamline the apprenticeship recruitment efforts of participating locals, and provides support services to apprentices as they complete their apprenticeships. This work is the first step in a career that offers family sustaining wages with full benefits and a progressive career ladder.

The program serves as RIDOT’s selected contractor to prepare underrepresented populations for jobs through the State Transportation Employment Program (STEP). This training initiative is funded through the Federal Highway Administration and housed in Building Future’s home base in Providence's Olneyville neighborhood. As a partner with Building Futures tasked to help oversee project design and construction activities, RIDOT will have a ready supply of qualified individuals located right here in Providence and ready to participate in streetcar construction. The focus on training for minorities and women will further enhance the ability for Building Futures to provide opportunities to these populations, positioning them to be a part of the economic recovery process and the transportation industry in general.

Stepping Up Rhode Island The Governor’s Workforce Board also sponsors Stepping Up Rhode Island, an apprenticeship program focused on finding entry level positions in the health services industry for low income residents. The Stepping Program is employed at Rhode Island Hospital, our state’s largest private employer which is located at the southern terminus of the initial segment of our Streetcar route. RI Hospital participates in Stepping Up to offer job training and employment to residents in the adjacent Upper South Providence neighborhood. The Providence Streetcar will provide a critical connection between this low-income neighborhood and the large medical employment base surrounding RI Hospital, providing the opportunity for these residents to enter and advance in high-growth, high demand healthcare careers. RI Hospital has been a supportive partner of the streetcar project, and provided local matching funds to support the Core Connector Study and Alternatives Analysis completed in 2012.

First Source | Hire Providence This City run program connects local job seekers who are unemployed or underemployed with local employers. The City now requires all businesses of five or more employees receiving grants, tax stabilizations or other forms of funding from the City of Providence to notify the City’s First Source program of all internal job vacancies. Residents looking for work are able to register and search for open positions using an accessible and a user-friendly on-line system. Applicants select positions to match their skills and flag their resume for review by hiring managers. Local employers post jobs in a number of relevant industries and most are full-time, permanent positions that offer competitive compensation and benefits packages. The success of this program has grown over the last few years, and now serves as a valuable tool for the City's workforce and is helping to grow a more diverse and vibrant economy.

Opportunities for Small and Disadvantages Businesses The City of Providence has established programs for Disadvantaged Businesses. The City is committed to increasing its current utilization goals to 40% MBE and 20% WBE by 2018. Construction projects are specifically targeted with a series of concrete actions to increase the use of disadvantaged contractors and strengthen the capacity of MWBE construction firms over time.

STIMULATING LONG-TERM JOB GROWTH

No other single investment would have a more significant impact on long-term job growth in the city than the Providence Streetcar. The City’s bold move to invest in the permanency of fixed-rail infrastructure will spur development interest and growth over the long term. As part of the Alternatives Analysis performed during the RIPTA-led Core Connector Study, it was determined that the project will generate over 250 construction jobs and approximately 6,000 permanent jobs over 20 years. The permanent jobs will be in a variety of sectors, over a broad range of skill and education levels. New residential development will be supported by new retail shops, services and other small business. The development of new office space will generate jobs, and new research and development space will grow new opportunities for job growth. Though the initial construction jobs are a critically needed boost to the City, it is the Streetcar’s potential to stimulate long-term job growth that makes the project a top priority.

The Providence Streetcar will directly connect the State’s two largest employment hubs, world-class institutions, and social services to the larger transportation network, through the City’s key redevelopment area. The investment will augment the already emerging research and development synergies between the universities and hospital networks. The seven colleges and universities along the route include a world-class design school, a community college and an Ivy League institution. The hospital district includes Rhode Island Hospital, Women and Infants Hospital and Hasbro Children’s Hospital. The emerging businesses and spin-offs from institutional growth will bring continued job growth to the area for workers at a variety of skill-levels, from facilities support staff, to recent college graduates to leaders and entrepreneurs in the research and technology sector. Several investments are currently underway to strengthen the collaboration among these institutions such as:

 Johnson & Wales University Physician Assistant Studies program is slated to begin this year. This year-round, 24-month program is part of our new Center for Physician Assistant Studies, located in Rhode Island’s medical education epicenter. The PA program is part of JWU’s new Center for Physician Assistant Studies, housed in a brand-new, 18,000-sq. foot facility dedicated to the health sciences and located in Providence’s Knowledge District, in the heart of downtown’s high-tech health services, research and education corridor, which includes RI Hospital, part of Lifespan’s hospital consortium, and Brown University’s Alpert Medical School.  An economic development proposal now under consideration by Andera Inc., a Providence-based tech firm that the state is a plan to bring the nursing programs of University of makes software for banks, has come a long way from its creation in founder Charlie Kroll's dorm Rhode Island and Rhode Island College together under one roof — room at Brown University. Since its humble in the renovated South Street Power Station in the Jewelry District. beginnings in 2000, the company has grown to Faculty and students from those two programs would be joined by employ more than 70 people, serving more than 500 bank and credit-union clients. The recent Brown University administrative offices. The $206-million project purchase of Andera for $48 million is just one will be undertaken by a private developer, who is planning to break example of the magnificent success of many ground in 2014. similar technology-based startups that have taken root along the Providence Streetcar route, and the potential of many more that will take LADDERS OF OPPORTUNITIY hold in Providence with an investment in the Providence Streetcar. The southern end of the Streetcar route terminates in the Upper South Providence neighborhood, an area that has consistently suffered from chronic unemployment and poverty. With a population of over forty (41.2%) percent Hispanic, thirty-four (34.0%) percent African American, over thirty-six (36.4%) of families below the poverty rate, and over forty (43.0%) percent of public school children whose primary language spoken at home is Spanish, Upper South Providence area has been socioeconomically isolated and economically disadvantaged for decades. The construction of Interstates 95 and 195 imposed both physical and psychological barriers on the neighborhood, and disconnected the area from Downtown and the city’s waterfront. The streetcar will be a direct link to downtown, helping to overcome the physical isolation of the neighborhood. In addition, by increasing mobility and adding an affordable transportation choice, the Providence Streetcar will help bridge this isolation by connecting residents directly to jobs and educational opportunities, as well as spurring new economic development in the neighborhood.

The many populations throughout the city that are non-drivers for a variety of reasons, either due to the high cost of car ownership, physical or mental disability, age (too young or old to drive) and non-drivers by choice, will benefit from the increased mobility offered by the Providence Streetcar and from the connections it provides to the larger multi-modal network.

STREETCAR WILL SHAPE REDEVELOPMENT

The I-195 Relocation Project, known as the Iway, is the largest project RIDOT has built since the construction of the Interstate system. The $610M project has been transformative - quite literally changing the landscape of the Capital City - and addressed a wide range of issues including safety, replacing aging infrastructure, and lessening traffic congestion. By creating 20 acres of land for redevelopment in the heart of downtown, it is also a significant boost to the economic development goals for both the City and the State. Now nearing completion, all new highway construction and old highway demolition has concluded. The final phase, of rebuilding the city streets near the old highway corridor, is currently underway. Over the next 18 months, RIDOT will construct new 11

parks along the east and west sides of the Providence River and a "This is a very exciting time with work just new pedestrian bridge on the granite footings of the old highway underway in providing utilities and realigning bridge over the Providence River. city streets around these parcels and now the transfer of land ownership that allows the I-195 Redevelopment Commission to complete its The relocation of I-195 in Providence represents one of the most mission of bringing new businesses and jobs to important economic development opportunities in Rhode Island’s Rhode Island," recent history. The redevelopment has the potential to change the Rhode Island Governor Lincoln Chafee skyline of the capital city, add significant office and commercial space to the area and create a new hub of job growth in knowledge-based industries, including life sciences, health care and research and development and the variety of jobs required to support these industries. The redevelopment of this land promises to continue to build upon and enhance partnerships between education and business and strengthen the urban economic base through the revitalization and reconnection of city neighborhoods once separated by the highway. Beyond the immense opportunities provided by the relocation of I-195, significant capacity for growth exists elsewhere in the corridor as well. Roughly 50 acres in Downcity and the Jewelry District are vacant or underutilized.

Another major redevelopment effort is in the planning stages to convert a former power station into a joint nursing education facility, adjacent to the I-195 redevelopment parcels. Built in 1912 and decommissioned in 1991, the former South Street power station is a massive Classical Revival building on the Providence riverfront listed on the National Register of Historic Places. Last year, Brown University announced the partnership with the University of Rhode Island and Rhode Island College to redevelop the historic building and build a new mixed-use development on the site. The proposed project would include a shared nursing education center, student housing, administrative offices, retail space, space for incubator businesses and other small technology-based companies, and new parking facilities. The site is located within close proximity to the hospital district and Brown medical school, and provides direct access to the future waterfront park and pedestrian bridge. The project is expected create more than 1,500 construction-related jobs, and a total of $248 million in economic output. The Providence Streetcar stop at Richmond Street is one block from the planned redevelopment of this important Providence landmark and would provide a critical amenity to the employees, students, and faculty at the facility.

The Providence Streetcar provides a unique opportunity to use transit to further catalyze and shape this growth, strengthening connections both literally and figuratively. By routing the streetcar directly through these redevelopment parcels, the investment will tie transit and economic development goals intricately together, sparking the emergence development that is truly transit-oriented.

ECONOMIC DEVELOPMENT IMPACTS

Based on a detailed economic development analysis conducted as part of the earlier See “Technical Reports” folder in Supporting Documentation Alternatives Analysis, the full streetcar project (including the future extension along Dudley Street to Prairie Avenue) would spur 3.6 million square feet in new development, equating to nearly $1.1 billion in additional property value over 20 years. The initial segment between College Hill and the Hospital District would serve the heart of downtown and the emerging redevelopment area, allowing the City to realize almost all of these projected benefits for the full project. This streetcar-attributable growth is above and beyond the projected “baseline” growth, illustrating the capability of the project to create new jobs and attract more residents to downtown neighborhoods.

The methodology to estimate induced economic development due to the streetcar in downtown Providence involved a risk analysis framework, a set of key development assumptions and data, and residential, commercial and office growth assumptions.

Recognizing that the Providence real estate market is different than that of other streetcar cities such as Portland and Seattle, this analysis used growth factors specific to Providence that were vetted by a group of local real estate and development experts.

With regard to projected growth by neighborhood, most of the Figure 4.1 Development Impacts streetcar-attributable growth is expected to occur in the Jewelry STREETCAR STREETCAR District, Downcity, and in the Hospital District. Significant growth DEVELOPMENT BULDOUT(with IMPACTS is projected to occur in College Hill as well; however, due to the extension to Prairie Ave.) (over 20 yrs) built-out nature of the district, most of this growth will be due to New Jobs 5,750 the intensification of development related to Brown University. New Residents 1,890 Because this growth likely would occur even without the presence Additional Development 3.6 million sf of a streetcar, it is not viewed as “streetcar-attributable” growth. Additional Property Value $1.1 billion However, the mobility benefits of the streetcar are an important factor in realizing the university’s future growth plans.

The positive impacts of the Providence Streetcar project in catalyzing development are manifested in numerous ways, including the additional revenue that is made available to the City and State through increased tax revenues, including property taxes, business taxes, and other sources. Additional revenue resulting from a streetcar investment can not only be used to support a wide variety of critical needs, but will also help finance the project. Using “value capture” strategies such as tax- increment financing, a portion of the revenues resulting from new development will be dedicated to help pay for the streetcar investment.

PROVIDENCE + OTHER “STREETCAR CITIES”

As demonstrated in the accompanying table, Providence compares very favorably in terms of activity generators to other cities with established streetcar services. Based on the success of other cities in catalyzing growth with streetcar being a contributing factor, coupled with the unique opportunities available in Providence, stakeholders can have a high level of confidence in the ability of the project to help advance the city’s and state’s mobility, development, and sustainability goals. The figures shown for population, employment, university enrollment, and hotel rooms are based on available data for the area generally within walking distance of each city’s streetcar line.

Table 4.2 Streetcar City Comparison

POPULATION UNIVERSITY HOTEL POPULATION WALKABILITY CITY DENSITY EMPLOYMENT ENROLLMENT ROOMS Providence 440 7,926 47,925 20,320 2,159 88 Little Rock 11 1,942 21,323 0 1,896 60 Portland 153 20,564 110,684 16,781 3,910 96 Seattle 73 6,031 22,411 800 1,453 94 Tacoma 57 2,836 13,296 2,001 641 79 Tampa 104 1,603 10,358 1,125 1,328 70 Sources: HDR Engineering, Inc., Walkscore.com iii. QUALITY OF LIFE

Since Providence’s early history, transit has encouraged people-focused development and helped create thriving neighborhoods with a strong sense of place. Providence Tomorrow, the City’s comprehensive plan, calls for a livable city “with healthy, vibrant, walkable neighborhoods connected to an active downtown, with many transit options.” Providence is a compact, densely populated City with unique and varied “Greater Providence will be the neighborhoods, beautiful historic architecture and authentic arts and cultural region’s premier center for people and vibrancy. The city’s quality of life is its single most strategic asset. culture.” -- Land Use 2025, Vision Statement State Guide Plan for Land Providence has a strong planning tradition that has the protection and Use enhancement of the city’s quality of life and quality of place at its core.

LIVABILITY PRINCIPLES

The Providence Streetcar emerged through a robust planning process as key tool to strategically use infrastructure to promote sustainable urban growth. The project embodies the livability principles established by federal Partnership for Sustainable Communities.

 Providing more transportation choices The Providence Streetcar project is one of ten interconnected recommendations for meeting the growing demand for a vibrant transit system in and around Providence, defined by the Transit 2020 Coalition. The development of a true multi-modal transit network in the Capital City will attract new transit users, reducing the reliance on single-occupancy vehicles for daily use. In addition to decreasing household transportation costs, the shift to greater transit use will reduce greenhouse gas emissions, improve air quality and promote public health.

 Promoting housing choice By increasing mobility and spurring growth in the downtown core, the Streetcar serves those living in neighborhoods adjacent to downtown and promotes the development of additional housing units. The investment in transit infrastructure and redevelopment of existing areas in the city reduces the combined household costs of housing and transportation and promotes development close to employment hubs.

There are over 6,700 household in the project corridor, and over 1,000 housing units are reserved for families with low to moderate incomes. In addition to traditional housing assistance services offered by the public sector (through agencies such as Providence Housing Authority and Rhode Island Housing), there are several unique housing partnerships and initiatives growing along the streetcar corridor. Two examples are AS220 -a non-profit arts organization based in downtown Providence that provides 60 live and work studios, of which 80% are designated affordable housing. AS220 owns several buildings directly on the streetcar route downtown. In Upper South Providence, SWAP Inc. (Stop Wasting Abandoned Property) a strong non-profit community development corporation, has invested more than $90 million in affordable housing development over the past 20 years.

 Enhancing Economic Competitiveness The Providence Streetcar advances Providences’ economic competitiveness in several key ways. The project provides reliable, timely and affordable access to employment center, educational opportunities and services. It expands access to employment centers in the region by connecting in to a larger transit network, creating a true multi-modal system. The project will spur development and long-term job growth in a variety of sectors, for workers in a broad range of skill and employment levels. It also provides important opportunities for apprenticeship in the construction trades.

 Supporting Revitalization and Redevelopment in the Urban Core The benefits of a strong transit system to our community are well recognized. Transit helps protect our environment by providing an alternative to auto use, which diverts cars from our city streets and reduces greenhouse gas emissions. It provides an alternative to auto ownership while preserving mobility options and reducing household expenses. Neighborhoods with transit promote walking and overall public health.

In the past, the strong fabric of Downtown has been punctured by highway construction, building demolitions, and open surface parking lots. Looking ahead, the City intends to use transit as a prime catalyst to recapture the unique historic character and sense of place that defines Providence. The streetcar investment will catalyze, concentrate and accelerate development into the urban core which already has the infrastructure, utilities and services to accommodate additional growth. Repurposing former interstate highway land into a dense mixed-use urban neighborhood will help revitalize Providence as well as preserve the character of rural areas outside of the city.

The Providence Streetcar also marks the return of streetcars to the East Side Tunnel, which was constructed in 1914 for streetcar use to enhance the connection between College Hill and downtown Providence. The tunnel has remained a critical component of

the city’s transportation infrastructure, and this project will use its capacity to carry additional transit passengers and better connect our neighborhoods.

 Streetcar Strengthens and Enhances Neighborhoods The streetcar corridor is characterized by a complex mix of commercial and industrial land uses; office/financial buildings; residential uses and hotels; arts and entertainment venues; historic buildings and museums; educational campuses and buildings; places of worship; government buildings; a convention center and arena; hospitals and health care facilities; parks; transportation facilities, including a train station, bus stops and shelters, parking garages and surface parking lots; as well as vacant lots and partially demolished buildings. The streetcar corridor connects three Providence neighborhoods:

College Hill --Recognized as one of the “Great Places in America” by the American Planning Association, was the site of the first permanent colonial settlement in Rhode Island. Located on a steep hill generated from the east bank of the Providence River, the area has always been primarily residential in nature; however, institutional growth has flourished in the eastern and western sections of College Hill. Both Brown University and the Rhode Island School of Design (RISD) continue to make important contributions to the architectural fabric and commercial vibrancy of this area. College Hill’s Thayer Street has recently been revived as a vital commercial corridor.

Downtown --With nearly 150 acres, Downtown Providence is divided into three areas: Downcity, Capital Center and the Jewelry District. Downcity is the core of Downtown Providence. In addition to being home to the City’s Financial District, Downcity is rich in historical and cultural resources, many of which have been reinvigorated over the past two decades. Filled with beautifully restored turn-of-the-century commercial buildings, Downcity is the home to hundreds of small businesses, thousands of residents, and the richest concentration of arts and culture in the city. This easily walkable neighborhood is home to the city’s theaters, hotels, convention centers, world renowned restaurants, boutique shops, universities, and parks. Downcity is included in the National Register of Historic Places and is also part of a local design review district. It is also home to Kennedy Plaza.

Capital Center is home to the State Capital and state office buildings, along with a regional mall and a large arts & cultural venue. The Waterfire attracts over one million visitors to downtown Providence annually Providence Train Station is also located within Capital Center. This (source: ARTSFWD) area emerged as a result of a transformative redevelopment and revitalization project beginning in the 1980’s that relocated the railroad corridor, built the new Providence Station and uncovered two-thirds of a mile of the river to create a 1.5 miles of riverwalks and new urban waterfront park. The Providence River Relocation project created the 77-acre Capital Center Special Development District.

The Jewelry District includes many industrial structures and factories constructed between 1830 and 1930. This area was once home to innovation and creativity in the jewelry industry and served as one of the centers of manufacturing in Providence. The neighborhood is on the National Register of Historic Places, and designated as a Providence Historic District with regulatory controls over demolition and design review. Today, the Jewelry District is emerging as a center of research and innovation to become a true center of the State’s knowledge-based economy and a reinvigorated urban neighborhood, with several institutions investing in the area.

Upper South Providence --Upper South Providence is the neighborhood immediately south of Downtown. The construction of Interstates 95 and 195 imposed both physical and psychological barriers on the neighborhood, and disconnected the neighborhood from Downtown and the city’s waterfront. The character is the neighborhood has changed over time as a number of large institutions, such as Rhode Island Hospital, Hasbro Children’s Hospital, Women and Infants Hospital, and the Providence Campus of the Community College of Rhode Island have expanded into adjacent residential areas. Upper South Providence is one of the lowest income neighborhoods in Providence. Neighborhood residents as well as employees at the large institutions in

the neighborhood stand to benefit tremendously from improved connections to Downtown and beyond. Also, there are a number of large surface parking lots in the neighborhood which provide opportunities for redevelopment that is oriented to and bolstered by the significant streetcar investment.

STREETCAR ALIGNS WITH CITY AND STATE PLANNING EFFORTS

Providence Streetcar has emerged from a robust transit and land use planning process over the past several years. The project advances the City and State’s goals for multi-modal transit, sustainability, economic development and social equity and aligns with several planning efforts, such as:

 The City received a 2011 HUD Community Planning Challenge Grant as part of the first round of the Sustainable Communities initiative to advance the coordination of the land use, transit and arts and cultural planning on the busiest transit corridors in the city. The grant has also enabled the City to completely rethink the Providence Zoning Ordinance to as a tool to encourage transit‐ oriented development and put into practice the City’s goals of livability and sustainability. The type of transit-oriented development that the City seeks to encourage and incentivize through a new Zoning Ordinance will create lively urban places centered on transit stops and enable residents to enjoy a lifestyle that is less reliant on automobiles for personal travel needs. The new Zoning Ordinance will The City of Providence received a $910,000 HUD Community Challenge consider ways to encourage density bonuses and reduce off‐street parking Grant in 2011 to rewrite the City requirements citywide, and will build upon efforts to enhance transit along the Zoning Ordinance and plan for transit streetcar corridor and in other key corridors across the City. The new and land use improvements. ordinance will be completed this summer and will be adopted in fall 2014.

 The State of Rhode Island received a 2012 HUD Sustainable Communities Regional Planning Grant to advance the state’s sustainability and equity goals to enhance the quality of life for all Rhode Islanders. Rhode Map RI has eight key elements: housing, economic development, growth centers, technical assistance, public participation, social equity, performance measures, and implementation. The elements will be integrated with the State’s existing land use, transportation, and water plans. The mutli- faceted nature of the Providence Streetcar project supports the transportation, housing, growth and economic development aspects of this statewide initiative.

 State planning documents, such as the 2014 Rhode Island State Rail Plan, the Rhode Island Transportation Improvement Program (FY 2013-2016) and Transportation 2035, the State’s Long Range Transportation Plan, all identify the Providence Streetcar as a priority. The Rhode Island State Planning Council, which approves these planning documents, serves as the single Metropolitan Planning Organization (MPO) cover the entire State of RI.

 The City’s cultural plan Creative Providence calls out the need to remove transportation barriers and improve access to cultural sites, events and programs as a specific strategy to build community and foster neighborhood vitality. iv. ENVIRONMENTAL SUSTAINABILITY

SUSTAINABILITY GOALS OF THE CITY + STATE

The City continues to put a high priority on sustainability and the Providence Streetcar project is an important component of this effort. “Great cities have great transit. By promoting public transit and connecting The City’s Comprehensive Plan includes recommendations to enhance pedestrians and cyclists to transportation transit and build the streetcar. Greenprint, our comprehensive report on options, we will decrease oil the City’s efforts to reduce global warming pollution and to position consumption, CO2 emissions, and create a better-connected, more pedestrian- Providence as a leader in green economy, includes transit and transit- oriented city.” - City of Providence oriented development as one of its key focus areas. Greenprint Plan

SUSTAINABILITY BENEFITS

The project will improve transit connections and provide an attractive transit option that will attract new riders and consolidate existing private shuttle trips operated by Brown University and Rhode Island Hospital. This, in turn, will reduce Vehicle Miles of Travel (VMT) in the study area by over 100,000 miles each year and having a positive effect on pollutant emissions and ambient noise quality. Air quality will be enhanced by decreasing local CO2 emissions by 1,400 tons over the first 30 years of the project. The Streetcar will also reduce fossil fuel usage in vehicles by utilizing the more efficient electrically- powered streetcar.

NO ADVERSE ENVIRONMENTAL IMPACTS

The Draft Environmental Assessment submitted to FTA in April 2014 found that there will be no impacts anticipated to flood zone resources, navigable waterways, coastal resources, wetlands, air quality or endangered species as a result of streetcar implementation. There will be no net increase of impervious surfaces resulting from the project. During construction, the City will utilize best management practices to prevent any permanent or indirect effects on water resources.

RESILIENCY

Providence is fortunate to have a 3,000 ft hurricane barrier at the head of the Providence River and operated by the US Army Corps of Engineers. The barrier has successfully protected the City and our many assets, including our transportation system, from storm surges and catastrophic flooding during Hurricanes Gloria (1985), Bob (1991) and Sandy (2012). This valuable piece of infrastructure received a $3 million overhaul in 2006 and will help protect our streetcar track (which passes just blocks from the river) from less damaging storms as well. Smaller, yet equally critical, The hurricane barrier located along hurricane gates are also located on Allens Avenue, just east and south of the Allens Avenue would serve as protection for the proposed VMF proposed Vehicle Maintenance facility and will help protect this investment. (source: Marcbela) v. SAFETY

The City and RIPTA have included safety considerations in the early conceptual planning and design activities for the Providence Streetcar, as well as numerous other related efforts being advanced by the City, RIPTA, and other partners.

SAFETY BENEFITS

The Providence Streetcar project will enhance safety for users of all transportation modes in the Providence urban core. These benefits will result from reductions in overall vehicle miles of travel improved roadway surfaces, and an improved urban streetscape with safer walking conditions in our dense, urban environment.

By reducing local area auto and shuttle traffic and overall Vehicle Miles of Travel (VMT), the project will provide a minor, but positive effect on accident rates, fatalities, injuries and property damage. More significant benefits will be related to pedestrian safety. The streetcar mode has been termed a “pedestrian accelerator,” and because so many streetcar customers will access the system by walking, pedestrian safety along the corridor and in other parts of our downtown is a high priority.

Pedestrian conditions are particularly poor between the neighborhoods of Upper South Providence and the emerging Knowledge District where much of the City’s near term job growth is anticipated to occur, along with new recreational and educational opportunities. Today, I-95 and its interchange with I-195 create a formidable barrier to between the low-income neighborhood and the Knowledge District, with pedestrians needing to cross highway on-ramps and other large highway-oriented intersections. Existing sidewalks along Chestnut and Richmond Streets are narrow and in need of reconstruction. The Streetcar would help weave these disconnected neighborhoods together, with related streetscape elements improving pedestrian access to streetcar stops and through the corridor in general.

The Streetcar also builds upon efforts by the City, RIPTA, RIDOT, and other stakeholders to create a safer environment for pedestrian, bicyclists, and transit users. These ongoing efforts include:

 City of Providence Downtown Circulator Project This multi-year, $8 million dollar City investment will enhance safety for auto, bus, bike and pedestrian travelers. It has widened sidewalks, created shorter high-visibility crosswalks, enhanced landscaping and lighting, and restored two-way street operations to better accommodate the streetcar. The third phase, to be completed this summer, will involve improvements at Kennedy Plaza to make a larger pedestrian plaza and new pathways. Construction specifications have been designed to ensure compatibility with future streetcar operations.

 RIDOT Providence Station Plaza Project This project, which is funded through an FTA Bus Livability Grant, will enhance connectivity between bus and future streetcar operations at Kennedy Plaza and the Providence Amtrak/MBTA station. Improvements will include ADA-compliant sidewalks, enhanced crosswalks and other pedestrian safety improvements included wider sidewalks.

 Bike Path Connections and Bike Safety Improvements The construction of the pedestrian bridge on the former I-195 abutments will include a designated path for bicyclists which will enhance bike connectivity and bike safety.

The Providence Streetcar will further enhance the safety and accessibility of the more robust multimodal system that we are diligently and methodically working to create with our partners in Rhode Island’s capital city.

OPERATION + MAINTENANCE SAFETY

Safety will be a primary area of emphasis for streetcar operations. RIPTA has a strong safety record and, if operations are contracted to a private provider, safety performance would be a key factor in the selection of an operator.

Entering into engineering for a Providence Streetcar will trigger the requirement for Rhode Island to establish a State Safety Oversight Agency (SSOA) as mandated in MAP-21. The City of Providence has initiated discussions with the Governor and RIDOT regarding the designation of RIDOT to serve this role and to assume responsibility for enforcing relevant laws related to the safety of non-FRA regulated rail transportation. RIDOT meets all the criteria needed to serve in this role as they will not be financially involved in streetcar operations, are a designated FTA grant recipient, and have staff qualified to perform this oversight.

B. SECONDARY SELECTION CRITERIA i. INNOVATION

The conceptual engineering work completed to identify a Locally Preferred Alternative for the Providence Streetcar and recent follow- up work have been focused on taking advantage of innovative and efficient best practices successfully administered by other cities with streetcar systems. These include:

Wireless Vehicle Technology As an outcome of our NEPA Environmental Assessment and coordination with the State Historic Preservation Office (SHPO), the City is interested in pursuing the use of hybrid-propulsion or “off-wire” vehicle technology. Using a hybrid battery, this technology stores power through its regenerative breaking, and can reduce the need for for support poles and overhead wires at key locaitons along the route. This will help us achieve the desired outcome of improved quality of life by maintaining the attractive visual environment of our historic downtown as a place to live, work and play.

Our conceptual engineering work found that use of technology would be feasible as the streetcar travels through the Downtown Providence Historic District, between Friendship Street (old I-195) and the bus tunnel (a segment about 0.8 miles in length). This would eliminate the need to affix wires to historic buildings, and could potentially lower overall project costs by reducing the number of substations, poles and wires.

We have been closely monitoring the advancement of this technology and are interested to see that Seattle’s First Hill Streetcar will open for service later this year as the first in the US to incorporate hybrid battery propulsion for the inbound part of its route. The City of Dallas is also pursuing hybrid vehicles to operate an off-wire on a part of their planned streetcar expansion. We will continue to monitor market conditions as we progress through final design in order to be confident that procurement of this vehicle technology will meet our desired operational performance specifications, as well as federal procurement guidelines.

Transit Signal Priority The City of Providence has enthusiastically adopted the use of Transit Signal Priority (TSP) to speed the flow of transit ad enhance operational performance. RIPTA has recently completed a major effort to install TSP at 61 intersections along the R-Line, including 48 intersections along Broad and North Main streets in the City of Providence. Once service begins this spring, we anticipate seeing a strong correlation with increased ridership along this route as RIPTA service becomes faster and more reliable. We are committed to employing the same technology along the streetcar route, to make streetcar travel more competitive with other modes and to enhance the efficiency of our operations.

Value Capture Revenue Mechanisms The Providence City Council recently forwarded a Tax Increment Finance District Plan to its Ordinance Committee for action and approval. This ordinance will allow the City to capture incremental property tax revenues that directly result from the streetcar investment, and to use these revenues to support streetcar related costs. We are also working with the newly elected Speaker of the RI House to authorize a Special Assessment District to capture the anticipated premiums to be realized on tax-exempt institutional property along the route. Together, these local revenues will leverage federal and state capital dollars for construction, and create a long-term sustainable revenue stream for project operations. A TIGER award would allow for expedited project implementation– a critical consideration given that 20 acres of prime, vacant development land in the former I-195 corridor comes on the market this spring.

Efficient Project Delivery Mechanisms In May 2013, Mayor Taveras invited the City’s partners and a group of federal delegates, state agencies, local institutions, business leaders, and financial advisors to attend a Streetcar Implementation Workshop. The purpose of this Workshop was to develop consensus and support for Providence Streetcar funding and governance strategies, and to solicit creative and innovative ideas for project implementation. More than 20 City, State, civic, and business leaders participated in an in-depth conversation on these topics. One of the key outcomes of this session was the establishment of a Providence Streetcar Implementation Steering Committee. This Committee will reconvene this summer to further examine and pursue innovative technology and project delivery mechanisms.

The City has also initiated discussions with private entities that have expressed an interest in helping to design and construct the project through a Design-Build (and possibly Design-Build-Finance-Operate- Maintain) approach. The Streetcar Implementation Steering Committee will be instrumental in determining the most appropriate and beneficial partnership agreements. Whether we use a more traditional or innovative approach, our decision-making process will focus on the mechanism that will lead to project delivery “on-time and on-budget,“ ensure long-term operational performance, and be economically competitive.

Finally, we will take advantage of the benefits our small state of Rhode Island can offer. We work daily with our two key partners at RIPTA and RIDOT and will tap their expertise to oversee construction, introduce a new mode of transit to Rhode Island, and ensure safety is of the utmost priority throughout project delivery.

ii. PARTNERSHIP

COLLABORATION BETWEEN PROJECT PARTNERS + SPONSORING AGENCY

As the capital city of a small state, Providence works closely with state governing entities on a daily basis, as demonstrated by the cooperative funding and management partnership formed during the earlier phases of the streetcar study. The City of Providence aims to strengthen the partnerships already established to guide this project, drawing on the strengths and expertise of state partners and formalizing agreements to develop a viable and practical structure for project delivery and operation.

Robust Planning Process Providence Streetcar has emerged as a priority from vigorous public planning efforts that have been conducted over the past eight years.

 In 2006, The City of Providence created the Transit 2020 Working Group, comprised of business, academic, and community leaders, to identify and advance new transit investments. The Transit 2020 Working Group recommended ten specific strategies for strengthening transit services in the Providence metropolitan area. Following a year of discussion and consensus building, the group presented its final findings and recommendations in a report entitled “Growing Smart with Transit.” One of the key recommendations was to ‘build a Providence streetcar’ to improve connections into and within Providence’s core.

 In 2008, RIPTA, with support from the City of Providence, completed a Metropolitan Providence Transit Enhancement Study as an outgrowth of the Transit 2020 report. RIPTA and the City of Providence established a Metro Transit Working Group to help guide the study and evaluate the potential solutions, including representatives from each study area municipality, the state legislature, state agencies, local businesses and institutions, and non-profit advocacy groups. The Study evaluated potential transit improvements to meet the growing demand for transit within Providence and the surrounding metropolitan area – including East Providence, Pawtucket, Central Falls, North Providence, and portions of Warwick and Cranston east of I-295. As part of the study, a “Streetcar Opportunities Report” was completed as well as a “Streetcar Economic Development Impact Report.”

 The 2010-2012 Core Connector Study advanced streetcar planning to the next level and concluded with the selection of a Locally Preferred Alternative to advance into further study and project development. The study also produced the federally-required “Alternatives Analysis” and “Environmental Assessment” that enables RIPTA and the City to pursue federal funding for the project.

Intricately Linked to Economic Development and Land Use Planning Goals The Providence Streetcar advances the City’s land use planning, comprehensive planning and neighborhood planning goals. It also advances one of the State’s key economic development goals in bolstering the redevelopment of the former I-195 highway land.

 The City’s Providence Tomorrow Comprehensive Plan and the neighborhood plans for Downtown, College Hill and Upper South Providence identify a range of strategies to guide future initiatives within Providence, many of which include expanding and promoting the use of transit. Developed with the input of local residents at over 130 public meetings, the City’s vision focuses on creating a sustainable city, encouraging economic development, revitalizing housing, strengthening neighborhoods, and supporting a high quality of life. Providence Tomorrow also emphasizes the role of existing and new transit modes in promoting mobility and accommodating new development in targeted growth areas. One of the objectives the Providence Streetcar is to support City goals by providing a new neighborhood-based travel option, connecting to other bus and rail services at downtown hubs, and encouraging economic development in desired areas such as Downcity, Capital Center and the Knowledge District.

 The creation of the I-195 Redevelopment Commission by the City and State established the redevelopment of the former highway land as a key economic development priority. The transfer of these lands to the Redevelopment Commission was a cooperative effort between many agencies and utilities, including the Governor Chafee's Office, RIDOT, the Federal Highway Administration, the Rhode Island Department of Environmental Management, the Rhode Island Economic Development Corporation, the City of Providence Planning and Engineering departments, National Grid, the Providence Water Authority, the Rhode Island Coastal Resources Management Council, and the Narragansett Bay Commission. State legislation passed in 2011 designates the LINK

parcels for “commercial, institutional and residential development and beneficial reuse, including without limitation to support or encourage workforce development, education and training, and the growth of ‘knowledge based’ jobs and industries such as research and development, life sciences, media technologies, entrepreneurship and business management, design, hospitality, software design and application, and a variety of other uses consistent with a knowledge based economy.”

The goal of the district is to advance five principles:

o Attract a workforce for today’s knowledge-based businesses and institutions. o Create walkable connections among great places to live, work and play. o Offer convenient transportation choices, including walkable streets, access to public transit and dedicated bike access. o Welcome a mix of land uses. Support daytime and evening life and activity, support retail serving all use categories, and make efficient use of parking and parks infrastructure. o Provide distinctive amenities. Showcase the stunning new riverfront parks, and the adjacent historic districts.

The I-195 Redevelopment Commission is a strong supporter of the Providence Streetcar as it is integral to the district’s success and its ability to fulfill its development goals.

Public-Private Partnerships The City has established partnerships with the RI Convention Center Authority and Brown University, and continues to explore additional opportunities to include downtown businesses and institutions in project implementation efforts. Non-public partners will play a critical role in helping to support and finance the project. The RI Convention Center Authority will allow for near-term advancement of project development through the issue of an initial $10 million bond at a favorable interest rate. Private institutions, such as Brown University, Rhode Island Hospital, Johnson & Wales University, the RI School of Design and Women & Infants Hospital will contribute through annual assessments to support ongoing operations and maintenance. The time and resources already devoted to this project by some of these institutions has been a critical component of initial success, and many are already enthusiastically incorporating the streetcar into future plans, as shown in Brown Brown University has included the streetcar project in their plans for University’s rendering (above) of the streetcar passing through their growing growth. (source: Brown University) Jewelry District campus.

The City has also initiated discussions with private entities that have expressed an interest in helping to design and construct the project through an innovative Design-Build-Finance-Operate-Maintain approach. The Streetcar Implementation Steering Committee will be instrumental in guiding the decision-making process on the most appropriate and beneficial partnership agreements.

Public Art Providence is proudly known as the “Creative Capital,” recognizing the vibrant and diverse arts and cultural community in the city. Numerous local organizations and groups actively and enthusiastically support this community, including the RI School of Design (RISD), innovative non-profit art incubators such as AS220 and the Steel Yard, and the City’s own Department of Arts, Culture and Tourism. Through the Art in Transit program, the City has recently worked in close partnership with RIPTA to fully integrate public art into the planning, design and implementation of new Rapid Bus stations using a place-based design approach which will showcase the unique character, history and culture of individual neighborhoods.

The City is committed to building upon the success of this effort and to utilizing the tremendous artistic assets within the community to integrate public art into the streetcar project design. The Department of Planning and Development is working with RISD to design an interdisciplinary studio class for the fall semester that will advance the unique look and feel of the Providence Streetcar, including the design

of station stops, integration of public art and the branding and graphic design for the new system.

C. RESULTS OF BENEFIT-COST ANALYSIS

A benefit-cost analysis (BCA) was conducted in accordance with the benefit-cost See “Benefit-Cost Analysis” folder in Supporting Documentation methodology recommended by the U.S. DOT and evaluated for a 30-year period beginning with the first full year of operations in 2019. The project yields an effective benefit-cost ratio of 3.67 using a 7% discount rate, and a benefit-cost ratio of 3.17 using a 3% discount rate.

Although, typically, the higher the discount rate, the lower the B/C ratio, this project shows slightly B/C = 3.67 (7% discount) different results. The relatively early accrual of quality of life benefits (or real estate values) B/C = 3.17 (3% discount) translates into a lower percent change in benefits than in costs between the 3 percent and 7 percent discount rates. This yields the somewhat counter-intuitive result of a higher Net Present Value and B/C ratio under the 7 percent discount rate scenario. Yet we remain confident in our analysis which involved a detailed review of the livability benefits realized in other US cities with streetcars, and a conservative application to Providence based on current floor area utilization, as documented in the Streetcar Economic Impact Analysis completed during the AA/EA. The projected streetcar induced development over a 20 year period is less than actual development that occurred in the study area over a ten year period (2000-2010) during a major economic recession. To further reflect the sensitivity of our results, we updated our 2013 BCA by indexing to 2014 cost values, but held the value of these quality of life benefits to their 2012 values to reflect a local real estate market that has yet to return to pre- recession values.

The overall project impacts can be seen in the accompanying table, which shows the magnitude of change and direction of the various impact categories. There are reductions in vehicle miles traveled (VMT), as well as in fuel consumption, oil imports, emissions, and safety incidents, with substantial increases in overall user benefits and quality of life. The complete Benefit Cost Analysis Report and back-up documentation are included in the Supporting Documentation folders.

Table 4.4 Overall Project Impacts CATEGORY QUANTITY CATEGORY QUANTITY Vehicle-miles traveled (VMT) ▼3 million Injury accidents (number) ▼<1 Vehicle-hours traveled (VHT) ▲572,000 Property damage only accidents ▼<1 (number) Reliability (hours) ▲1.2 million CO2 Emissions (tons) ▼1,400 Branding (hours) ▲0.6 million NOx emissions (tons) ▼<1 Station Stops (hours) ▲1.2 million PM10 (tons) ▼<1 Vehicle Amenities (hours) ▲0.9 million SOx (tons) ▼<1 Fuel consumed (gal) ▼140,000 VOC (tons) ▼0.3 Oil imported (gal) ▼133,500 Livability (Real Estate Values) ▲1.1 billion Fatalities (number) ▼<1

5. PROJECT READINESS

A. TECHNICAL FEASIBILITY

DETAILED STATEMENT OF WORK/PROJECT TO BE CONSTRUCTED

Conceptual design plans were developed as part of the AA/EA study, including track See “Technical Reports” and “NEPA” folders in Supporting Documentation alignment, station locations, vehicle characteristics, traction power, and requirements for a maintenance facility. Each element is briefly summarized below, and detailed in 22

the supporting documentation. Key design challenges were also addressed, including the integration of streetcar into the existing bus tunnel, “end-of-line” treatments, and the structural capacity of existing bridges. All elements will be examined in more detail as part of engineering and final design.

Track, Guideway and Roadway The Streetcar will travel along city streets in mixed-traffic or non-exclusive right-of-way; and in short segments of semi-exclusive right- of- way. Conceptual track alignment plans focus on horizontal alignment; future design will consider the vertical profile.

Stations Tweleve stations will be constructed as part of the initial segment, each designed to accommodate both streetcar and bus. Stations will be at-grade on the sides of the street; and will include shelters, electronic messaging, ticket vending, ADA tactile warning strips, and signage.

Systems Systems include the power supply and distribution, traffic signals and communications. Although an overhead contact system (OCS is proposed), the City will further evaluate the readiness of wireless technology during final design.

Vehicles Low-floor articulated vehicles with electrical propulsion motors are proposed. As mentioned above, wireless vehicle technology is of interest to limit visual impacts through sections of historic Downtown. Vehicle specifications will be finalized during the next phase.

Vehicle Maintenance Facility (VMF) A facility was sized based on other active streetcar facilities, or about 0.25 acre per vehicle. It will accommodate vehicle storage, inspection, cleaning, and repair, as well as space for administrative functions and parts storage.

ALLOCATED CONTINGENCY + CONTINGENCY MANAGEMENT STRATEGY

Contingencies developed for the capital cost estimate (see project budget below) are assigned to two major categories – allocated and unallocated.

Allocated Contingency Allocated contingencies are applied to the appropriate FTA Standard Cost Categories (SCC), and vary accordingly based on professional judgment and the variability typically experienced for items within each particular category. The percentages shown in the table below represent the average contingency values used for in the Providence Streetcar capital cost estimating process.

Table 5.1 Allocated Contingency

SCC ALLOCATED CONTINGENCY CATEGORY DESCRIPTION PERCENTAGE 10 Guideway and Track Elements 20-35% 20 Stations, Stops, Terminals, and 20% 30 Support Facilities: Yard, Shops 20% 40 Sitework and Special 25-30% 50 Systems 20% 60 Right-of-way, Land, Existing 50% 70 Vehicles 10%

Unallocated Contingency Unallocated contingency was applied as an additional allowance for risk. An unallocated contingency of 10% was applied to the overall cost estimate in addition to the aforementioned allocated contingencies.

Contingency Management Strategy As project development continues and cost estimates are refined, the allocated and unallocated contingencies will be adjusted. It is anticipated that the overall contingency will be reduced as the design is finalized; however, an appropriate level of contingency will be maintained throughout project development as a risk management strategy.

For all scope, schedule, and budget risk-mitigation measures, please refer to section “D. Assessment of Project Risks and Mitigation Strategies.”

B. FINANCIAL FEASIBILITY

DETAILED CAPITAL COSTS/PROJECT BUDGET

The initial operating segment of the Providence Streetcar, from College Hill to Rhode Island See “Cost Estimate” folder in Supporting Documentation Hospital in Upper South Providence, has an estimated capital cost of $117.8 million (in 2018 dollars). Estimates are presented below using FTA’s Standard Cost Categories and based on conceptual engineering performed as part of the recent Alternatives Analysis / Environmental Assessment (AA/EA). Contingencies ranging from 10 to 50% are applied to individual line items; with an additional unallocated contingency of 10% applied to the overall estimate. The base cost was estimated in 2011 dollars, and has been escalated to the mid-point of construction (or early 2018) using an escalation factor of 3% per year. As the project advances to final stages of design, these estimates will continue to be refined.

Table 5.3 Conceptual Cost Estimate of Initial Streetcar Segment: College Hill to RI Hospital PROJECT COMPONENT [FTA PERCENTAGE STANDARD COST DESCRIPTION TOTAL CATEGORIES] Track installed at-grade in mixed traffic and in 010 Guideway & Track reserved transit right-of- way on the Washington 21.3% $21.71M Street bridge and in College Hill Transit Tunnel.

11 stations (typically including platforms on both 020 Stations, Stops, sides of the street) along the alignment typically 0.9% $0.90M Terminals, Intermodal placed every 800 feet A Vehicle Maintenance Facility to provide vehicle 030 Support Facilities: Yards, storage and maintenance services, including 3.0 % Shops, Admin. Bldgs inspection, exterior washing, interior cleaning, repair $3.02M activities, and spare parts storage

Modification of existing cross-sections in some locations along the alignment to accommodate 040 Sitework & Special 9.6% Conditions the streetcar and pedestrian traffic. Also includes $9.74M in-street utility conflict mitigation.

New and modified traffic signals, five traction power

050 Systems substations, and the overhead catenary power 17.4% $17.71M distribution system TOTAL CONSTRUCTION ITEMS $53.08M Property needed for maintenance facility, to 060 ROW, Land, accommodate streetcar turning radius in several 1.4% Existing Improvements locations $1.14M TOTAL (includes allocated contingencies) $54.22M Three active streetcar vehicles and one spare 070 Vehicles 20.3% $20.64M streetcar vehicle

PROJECT COMPONENT [FTA PERCENTAGE STANDARD COST DESCRIPTION TOTAL CATEGORIES] Design/engineering, project management,

080 Professional Services construction management, insurance, permitting and 14.1% fees, and survey (27% of construction items) $14.33M 090 Unallocated Contingency Standard unallocated contingency (10% of items 8.7% above) $8.92M 100 Finance Charges Finance charges related to bond issue 3.4% $3 50M TOTAL BASE COST FOR PROJECT (2011 dollars) $101.61M TOTAL COST FOR PROJECT (escalated to 2018 dollars) $117.79M

BUDGET ALLOCATION/PROJECT ACTIVITIES FUNDED BY TIGER/FEDERAL/NON- FEDERAL SOURCES

A final budget allocation will be developed as project design advances. However, as currently planned and as shown in the 2014 Funding Plan Update, project design will be initiated with the RI Convention Center bond issue, supplemented with State Capital Funds and Congestion Mitigation and Air Quality (CMAQ) funding. TIGER funding will be directed to fund construction of track/guideway, power systems, stations, the maintenance facility and other capital items, such as vehicle procurement. Construction and procurement activities will also be supported through the City’s issue of a Tax Increment Financing (TIF) revenue bond, use of state capital funds, and CMAQ. It has not yet been determined whether necessary right-of-way acquisition would be performed with federal, state or local funds. OPERATION + MAINTENANCE COSTS

Annual Operating Costs Annual operating costs are projected as $3.2 million in 2019 (the first full year of operations), based on estimates developed during the Alternatives Analysis /Environmental Assessment (AA/EA). The initial streetcar segment between College Hill and the Hospital District would operate with three active vehicles. A fourth vehicle would be put into service when the future extension along Dudley Street to Prairie Avenue is completed. Future year operating costs were projected with a 3% escalation factor.

Debt Service Costs Recurring costs will also include debt service payments for the $57.7 million in bonding used for upfront capital investment. The City would issue a $57.7 million TIF revenue bond to support project construction. Annual debt service payments for this bond issue are projected as approximately $3.2 million per year over a 30-year period, based on a bond rate of 3.50% (or slightly less than the 3.66% rate received for a recent City bond issue for road reconstruction). Finance charges of $3.5 million are included in total project costs.

FINANCE PLAN: RECURRING OPERATIONS + DEBT SERVICE FUNDING

The annual cost to operate the Providence Streetcar and support debt service is projected be See “Funding Plan” folder in $6.4 million (in opening year). These ongoing costs will be supported largely through value Supporting Documentation capture mechanisms within a “Streetcar District” established in the corridor. A detailed 20-year project cash flow is included in the Supporting Documentation, outlining a viable and sustainable local revenue stream to cover anticipated project costs. More specifically, this sustainable revenue stream includes:

 A Tax Increment Financing (TIF) District established by the City of Providence to pay back debt service related to the project and to support streetcar operations.

An economic development analysis was performed as part of the AA/EA, projecting significant investment in underutilized urban parcels within the District after the streetcar is constructed and subsequent increases in property value. The additional property

tax revenues to be captured by the City as a result of this premium will range from $1.15 million in year one to $18.72 million after 20 years, even after accounting for special tax abatements on new development over the first 10 years. The TIF Plan assumes 50% of new tax revenues in the District will be directed to support streetcar costs; the remaining 50% will continue to be directed to the City’s General Fund. This 50/50 distribution of project-specific funding is similar to the formulas used in previous TIF projects in Providence.

 A Special Assessment District authorized by the General Assembly and established by City Council, levying a two-tiered annual assessment on tax- exempt institutional property based on its distance to the streetcar route: o Properties within 1/8 mile of the route assessed at $0.60 per $1,000 of value o Properties within 1/4 mile of the route assessed at $0.30 per $1,000 of value These assessments reflect the benefits that local educational and medical institutions will realize from the project, and the fact that these tax-exempt entities will not be contributing to the project through tax payments in the TIF district. Using the City Tax Assessor’s data, it is estimated these assessments would bring in about $1.1 million in 2019, a number that would grow incrementally as property values increase and new tax-exempt development occurs.

 The City is committed to a short-term dedication of a portion of parking meter revenues as an interim source of revenue until the pace of projected streetcar-induced development reach levels sufficient to support the project through the established TIF. A total of $1.8 million in local parking revenues would be directed toward the project over a six-year period, or about $300,000 per year. This is less than 5% of the annual parking revenues collected by the City in FY12.

 Fares, sponsorships, and advertising revenues. Specifically, these items include: 1) an estimated $1.4 million in annual fare revenue (based on ridership estimates and a $2 fare in opening year); 2) an estimated $175,000 in annual station sponsorship and advertising revenues; and, 3) a small portion of FTA Section 5307 funds anticipated to be eligible to support preventative maintenance once streetcar operations begin.

 A three-year CMAQ operating subsidy of $550,000 per year, dedicated by RIPTA. This is in addition to the capital CMAQ contributions made over the nearer term to support project construction. No existing RIPTA operating funds are to be dedicated towards streetcar operations.

Our finance plan is an outcome of the long and comprehensive planning process performed to advance the Streetcar project. Each of our funding partners has been involved with project planning in some way, participating in workshops on project definition and design, financing, environmental assessment and/or economic development projections. The result is a viable and complete finance plan which includes funding contributions from partners who recognize the value and benefits that the Providence Streetcar will bring to their City, State, private institutions, customers and clientele.

RELIABILITY OF CAPITAL + OPERATING FUND COMMITMENTS

The reliability of funding commitments to support the Streetcar was discussed earlier (3. Grant Funds + Sources/Uses of Project Funds). Recent actions to secure funding include:

 City Council action on a Tax Increment Financing package in April 2014;  Anticipated vote by City Council Ordinance Committee in June 2014;  Letters of support from outside partners indicating their support and intention to participate in the project, including the State of RI (Governor and General Assembly), the RI Convention Center Authority, and RIPTA; and  Inclusion of the project in the Statewide Transportation Improvement Program (TIP/STIP) (most recently amended February 28, 2013) with the following description:

“This program is for the Providence Streetcar program’s next phase of program development and includes a portion of the funds needed for preliminary engineering and final design. (5307) Additional funds for this program will be programmed using other available and competitive grant funds” (State of Rhode Island Transportation Improvement Program for FFY 2013-2016, Appendix A-30).

The STIP also directs a total of $3.3 million in CMAQ funding to RIPTA each year, a portion of which will be directed to the Streetcar project.

Despite the range of funding sources identified and committed, federal assistance is still critically needed to allow the City to make this long-term investment in our public infrastructure and generate needed economic recovery.

AVAILABILITY OF CONTINGENCY RESERVES

In the event that planned revenue sources do not materialize, the City will consider the following contingency plans:

 Issuance of a larger TIF Revenue Bond or separate General Obligation Bond  Dedication of a higher percentage of TIF revenues from the District to the Streetcar project; an allocation of 50% is proposed for the project, leaving reasonable opportunity to increase this share of support if needed.  Higher assessments in the Special Assessment District  Consideration of alternative project delivery mechanisms, includes upfront potential private sector participation in the design, construction and operations

CITY’S FINANCIAL ABILITY TO SPONSOR PROJECT

The City of Providence manages a sizeable annual budget of $662 million (FY2014) and has the capacity and ability to sponsor, build and take ownership of the Providence Streetcar. Over the past three years, the City of Providence has worked to completely restructure our City finances. We turned a $110 million structural deficit into a $1.6 million budget surplus. This has enabled us to freeze our commercial tax rate, invest in long overdue roadway repair, and take other positive steps to encourage economic development and investment in our City. We are financially prepared to continue these positive steps by advancing the Providence Streetcar, one of Mayor Taveras’ identified economic development initiatives.

CITY EXPERIENCE WITH MANAGING MAJOR GRANTS + INFRASTRUCTURE PROJECTS

The City of Providence brings significant managerial experience and capacity to this project. The Department of Planning and Development is responsible for the expenditure and management of federal funds. The Department employs 50 people to implement the City’s programs related to:

 Economic Development - managing and implementing over $24.6 million in federal grants awarded to the City and its economic development arm, the Providence Economic Development Partnership, from the U.S. Department of Housing and Urban Development (HUD), U.S. Department of Transportation (DOT), and other federal agencies, as well as managing the Economic Development business loan programs.  Housing – developing and managing the Providence Housing Trust, which manages a home loan portfolio of over $4.2 million and lead hazard reduction grants of over $5 million;  Community Development – managing the City’s CDBG, HOME, HOPWA and ESG grants;  Workforce Development and Training: managing and implementing the City’s First Source List and a $2.5 million green jobs training program; and  Transportation - managing an $11 million transportation bond program, and serving as a member of the State Transportation Advisory Committee and the I-195 Redevelopment Commission.

To ensure compliance with federal regulations and sound fiscal management of grant funds, over 25% of the Department’s staff is devoted to regulatory and fiscal compliance activities. Compliance and fiscal officers monitor program activities, sub-recipients and budgets to ensure that all grant funded activities comply with the appropriate federal guidance, the OMB circular and specific grant requirements.

As the City agency responsible for providing funding and overseeing the construction and management of public facilities, the Providence Public Building Authority is empowered to acquire, purchase, hold, lease, mortgage, use or sell any property (real, personal, mixed, tangible or intangible) for carrying out the purposes of the Authority. Its powers also encompass it to construct, improve, equip, furnish, maintain, renovate, repair, enlarge and operate facilities and projects, issue bonds for any of its purposes, to collect fees for the use of facilities and projects, to borrow money in anticipation of the issuance of bonds and to issue notes, certificates, or other evidences of the borrowing, and to receive and accept grants for or in aid of construction or acquisition of projects authorized or other transactions with any federal agency

C. PROJECT SCHEDULE

The City of Providence is prepared to initiate project engineering in the fall of 2014 upon receipt of a TIGER discretionary grant. As shown in the schedule below, a significant level of local resources and planning already have been devoted towards advancing this project. Key future milestones include:

 NEPA review will be complete and a FONSI issued in August 2014  All pre-construction activities will be complete by June 2016  TIGER obligation no later than September 2016  Start of service in late 2018

Table 5.4 Project Schedule DATE PROJECT MILESTONE 2006 Transit 2020 Working Group convened to advance vision for better public transit in Providence 2009 Streetcar Feasibility Report completed as part of Metro Providence Transit Enhancement Study 2011 Alternatives Analysis completed as part of Providence Core Connector Study March 2012 Streetcar adopted as Locally Preferred Alternative (LPA) by RIPTA’s Board of Directors July 2012 Project included in Statewide Transportation Improvement Program (STIP). December 2012 Project adopted into State’s Long Range Transportation Plan May 2013 Mayor convened stakeholders to discuss local financing and streetcar ownership/governance strategy June 2013 City submits request to US DOT for TIGER V discretionary funding April 2014 City Council introduces Tax Increment Financing District legislation for consideration April 2014 Draft Environmental Assessment submitted to FTA Region 1 April 2014 City of Providence submits application to USDOT for TIGER VI funding June 2014 NEPA 30-day public comment period and public hearing Summer 2014 Tax Increment Finance District established July 2014 Mayor convenes stakeholders to discuss project delivery and procurement strategy August 2014 NEPA Environmental Review complete / FONSI issued October 2014 City completes Kennedy Plaza renovation, designed to incorporate Streetcar September 2014 Anticipated TIGER award October 2014 City issues RFP for Design/Engineering Services and /or to initiate project delivery November 2014 RI Convention Center issues bond to support project development January 2015 TIF District Revenues begin to accrue December 2015 Design contract awarded / Engineering begins Spring 2015 RIPTA completes State of Good Repair project in East Side Tunnel, designed to accommodate Streetcar

DATE PROJECT MILESTONE Mid-2016 Vehicle Procurement initiated (Issue RFI/IFB) Mid-2016 Special Assessment District established by City Council (assessments begin in 2017) June 2016 All pre-construction activities complete July 2016 Advertise Construction Contract(s) July 2016 Obligation of TIGER grant /Construction Contract Awarded Late 2016 Construction Begins Late 2018 PROVIDENCE STREETCAR SERVICE BEGINS (first full year of service in 2019)

PLANNING APPROVALS

A Draft Environmental Assessment was submitted to FTA Region 1 in April 2014; a letter of completeness is anticipated in May 2014. Following public review and hearing, we anticipate NEPA review to be complete, with a Finding of No Significant Impact (FONSI) in late summer 2014.

Table 5.5 Planning Approvals

AUTHORITY ACTION TAKEN COMPLETE? Adoption of Providence Streetcar into RI’s Long Range State Planning Council √ (2035) Transportation Plan Incorporation of Providence Streetcar into Statewide State Planning Council √ TIP Incorporation of Providence Streetcar into State Rail State Planning Council √ Plan Adoption of Providence Streetcar as Locally Preferred RIPTA Board of Directors √ Alternative for Downtown Circulator Federal Transit Administration NEPA Certificate of Completeness May 2014 Federal Transit Administration NEPA Approval / FONSI August 2014

D. ASSESSMENT OF PROJECT RISKS + MITIGATION STRATEGIES

The primary risks associated with the Providence Streetcar project are common to streetcar projects and other major transit investments. Mitigation strategies are identified below.

Table 5.6 Project Risk Factors & Mitigation Strategies RISK AREA PRIMARY RISK MITIGATION STRATEGY Capital cost increases due These costs can be highly variable  Coordination with utility companies began during the to unforeseen utility due to differing mitigation earlier Alternatives Analysis phase, and close relocation costs requirements of utility companies, coordination will continue as design work advances. local agreements to fund relocation,  The City will begin working with affected utilities as a and other unique concerns. first step during design to establish “Rules of Unknown conditions uncovered Practice” and agreements/MOU’s for conflict during construction may result in avoidance and mitigation, as well as a means for delays and/or cost increases. funding these activities.  Significant attention will be given to utility coordination to minimize the risk of unforeseen conflicts.

RISK AREA PRIMARY RISK MITIGATION STRATEGY Lack of experience in Neither the City nor RIPTA have  The City has a long history of major capital comparable project similar rail project experience, which investment projects, including the extensive railroad implementation could lead to cost overruns or other and river relocation project to create Capital Center, obstacles to implementation. schools, parking garages and public safety facilities.  The City will maintain a strong partnership for project implementation with RIDOT, who has a lengthy track record of successful rail projects, including the construction of rail sidings, and two recent commuter rail stations (total cost of $336M) Environmental risks and Implementation of the Providence  Project planning included close coordination with proposed mitigation Streetcar would result in potentially FTA, other federal agencies, and the State Historic strategies adverse impacts to transportation Preservation Office. There will be minor impacts on and parking, historic resources, peak hour traffic operations at intersections. contaminated sites, and aesthetics. However, signal improvements will likely upgrade existing conditions.  We will update our review of contaminated release sites ranked as low‐risk for potential impact during final design to determine if changes have occurred since NEPA was completed. ROW acquisition delays Acquisition of needed ROW would  RIDOT has agreed to donate land for a Vehicle delay project and have the potential Maintenance Facility. to increase costs  A second partner, Brown University, has indicated a willingness to donate 3400 sf off Ship St. to accommodate a streetcar station.  Two 300 sf parcels may need to be acquired from private parking lot owners to accommodate streetcar turning movements. The Providence Redevelopment Agency is prepared to assist with property acquisition. Insufficient revenue from The amount of revenue from value  A thorough economic development analysis has value capture mechanisms capture mechanisms, such as tax been completed, with significant input from the local increment financing, is directly linked development community. The resulting projections to the amount of development that were deemed to be conservative in nature. actually occurs. If the amount of  The early years of streetcar construction and development falls short of operation do not rely on TIF revenues; these projections, corresponding revenue revenues play a bigger role in later years recognizing projections will not be met, which the time necessary for development to occur could result in operating budget  A maximum of 50% of the projected TIF revenue is shortfalls. reserved for the streetcar project, leaving the remainder for other needs (or as a short-term funding backstop)

6. FEDERAL WAGE RATE CERTIFICATION

Providence Streetcar Project

FY 2014 TIGER Grant Application

The City of Providence, as sponsor of the TIGER project, will comply with the requirements of subchapter IV of chapter 31 of title 40, United States Code (federal wage rate requirements), as required by the FY 2014 Continuing Appropriations Act.

Signature Date

Angel Taveras Mayor City of Providence