Archive for the 'Funding' Category
December 11 was the final deadline — 550 ballots were counted and certified the following day (video | news). With this win, the downtown streetcar is now fully funded (in addition to previously approved federal funding).
This time money was on the line and nearly half (337) of the second election’s voters did not participate in the first election. Supporters gathered at Nara in the Crossroads to celebrate victory with Mayor Sly James and Councilmen Russ Johnson and Jim Glover. Full results were:
Question 1 (1% TDD sales tax):
Question 2 (special assessments on TDD property):
In the first election, 460 ballots were counted:
Question 1 (formation of the TDD):
The City Council immediately began advancing the project again, putting two ordinances on the docket that authorized the Final Design contract with HDR, Inc. and authorize bonds to finance construction. HDR completed the Alternatives Analysis and Advanced Conceptual Engineering phases; they are also currently involved in streetcar projects in Dallas, Tucson, and D.C.
The TDD Board will meet on Dec. 17 to approve the sales tax and assessments, a formality that is expected to occur without delay.
Ground breaking is planned for Spring 2013 with utility work and construction starting in Summer 2013. Operations are still on schedule to begin in 2015.
Councilman Glover said he was committed to expanding the streetcar “throughout the 4th District”, which includes extensions south to UMKC, west to the Bottoms, and east along Independence Avenue.
It was another big week for the downtown Kansas City streetcar project:
- 69% of downtown voters said yes to the Transportation Development District’s formation,
- The City announced the project’s funding gap has been closed, and
- Councilman Russ Johnson released a list of proposed Phase 2 expansions.
TDD election successful
While process whittled the number of votes cast to 460 from 603 original requests, the winning result was still a resounding victory that was easily predicted based on past transit elections. Downtowners simply want transit options and are willing to pay for them. The final tally was 319 yes, 141 no. The TDD was officially formed the next day in a ruling [PDF] by 16th Circuit Court Judge Charles Atwell.
The same day the TDD was officially formed, the City formed the Kansas City Streetcar Authority, a new non-profit that will run day-to-day operations of the streetcar and advise the City on remaining engineering and construction activities. [Disclosure: I will be serving on the Authority's Board].
Here’s plenty of coverage from the major outlets:
- Kansas City Star (and the hostile editorial)
- Kansas City Business Journal (and here)
- The Pitch
Funding gap closed
Councilman Russ Johnson announced at the streetcar election watch party that a $25 million gap — left by an unsuccessful application for a federal TIGER IV grant — has been filled by:
- $18 million request for federal Surface Transportation Program funds (programmed locally by MARC)
- $7 million in cost savings, primarily through the elimination of the Crown Center stop
The streetcar was the highest scoring (79) project on the Missouri-side STP project list. The next highest ranked project was 71 and the lowest was 33. Per the STP Committee, the highest scoring project has never not been funded (either in whole or part). When engineering completes, additional cost savings may be identified.
Expansion discussion opened
Expansion beyond the 2-mile starter line was always on the table, now Councilman Johnson and his colleagues from the 3rd and 4th Districts have publicly opened that discussion to entice neighborhoods to sign on. A PDF map is here, but the corridors are:
- Independence Avenue (Grand Avenue to Topping Avenue) – 4.4 miles
- 12th Street East (Main Street to Jackson Avenue) – 4.2 miles
- UMKC (Pershing to 51st) – 4.1 miles
- 18th Street East (Main Street to Benton Boulevard) – 1.8 miles
- Southwest Boulevard (Main Street to State Line Road) – 3.0 miles
- 12th Street West (Main Street to Genessee Street) – 1.4 miles
- North Kansas City (3rd Street to NE 32nd Avenue) – 3.1 miles
Of course, all expansion is subject to additional funding. Got a favorite one? Let’s hear about it in comments.
Kansas City wasn’t a winner in the ultra-competitive TIGER grant program, yet the streetcar continues with plenty of political backing. The mail-in election addressing 75% of the project cost wraps July 31; early returns are positive, with half of eligible voters already returning ballots.
Only one of the seven streetcar projects that applied for TIGER actually won: Fort Lauderdale (press release). They applied once before and were denied. This time, all of their outstanding pieces were in place (local and state funding).
Fortunately, many options exist for closing Kansas City’s streetcar funding gap (in no particular order):
Value engineering: Basically trimming scope while providing the same basic service. An entire block has already been eliminated from the route (see above photo). The city could also save money ordering expensive components (vehicles, rail) by teaming up with another city, perhaps even Fort Lauderdale (they also plan to launch in 2015).
Design/Build: The city could (and probably will) hire one vendor to design and build the streetcar line in one contract. This delivery method was used for the new Bond Bridge and is increasingly common as cities and states look to save money on expensive capital projects.
Reduced lending costs: Since TDD assessments will only raise $10 million annually, construction costs will be financed with city-backed bonds. The life of those bonds could range from 10 to 25 years, meaning lots of interest. The lower the interest rate, the lower the overall cost. Rates are very low now — lower than what the baseline budget assumes — but no one can predict what rates will be when bonds are sold before construction starts. Regardless, Missouri’s state infrastructure bank (PDF) is another option that could reduce interest rates to what the market can provide.
Other Federal transit funding: The Small Starts program is the most obvious, since that’s where transit projects under $250 million typically go first; both of our MAX routes were funded through Small Starts. The city is also seeking funds from the Surface Transportation Program (STP) and Congestion Mitigation Air Quality (CMAQ) — both administered through MARC.
Crowd-funding: Crossroads start-up Neighborly is launching ourstreetcar.com, which will allow anyone in the world to donate as little as $1 directly to the project (in exchange for perks, which start at the $10 level). While it might not raise $25 million, every dollar raised through Neighborly avoids lending costs that contribute significantly to the overall price tag. [Disclosure: I serve on Neighborly's advisory board.]
Jackson County: A 1-cent countywide transit sales tax is being eyed for November. County officials have shown interest in making sure the streetcar is completely funded, since their regional rail plans rely on the streetcar to distribute riders to the Central Business District.
PIAC: The streetcar is on next year’s PIAC wish list, which could net another million or two from existing city infrastructure funds (as it did in 2012).
Last week saw a third set of open houses to narrow alternatives for two transit corridors being studied in Jackson County — East (I-70) and Southeast (Rock Island/MO-350). There isn’t a lot of good news for fans of the original Sanders plan, but there are still some very real opportunities.
First, the bad news: A 1% countywide sales tax only generates $80 million annually. That may sound like a lot, but it isn’t much when you’ve got two $500 million rail lines you want to build and operate. Selecting alternatives close to the original Sanders plan leaves nothing for connecting buses (polling indicates this is necessary) or any significant operating budget (absolutely necessary). The tough decision ahead is to pick one corridor to build rail, or just go “all in” with buses.
Pick one corridor that scores best with the Feds and voters. That corridor is probably Rock Island.
Four alternatives remain for Rock Island (see corresponding line colors on above photo):
- Bus Rapid Transit (similar to MAX) from Lee’s Summit, continuing along Linwood Boulevard and US-71 (purple line)
- DMUs on existing tracks terminating in the River Market via land adjacent to Union Pacific Railroad’s Neff Yard (orange line)
- Enhanced Streetcar on new tracks from downtown Raytown, running along Linwood to Main, then sharing tracks with downtown streetcar (blue line)
- Express Buses running on MO-350 to I-435, then I-70 to 10th & Main (green line)
Of the four, the Enhanced Streetcar — defined as a modern streetcar vehicle that makes fewer stops once it leaves denser urban areas — would be a boon for the city and the county. Most Jackson County voters live in Kansas City; any plan that skips most of Kansas City might be at risk with urban voters. Linwood is denser than most suburban areas these lines would serve, which improves our chances for Federal funding. This alternative also has the strongest economic development potential and would help extend the streetcar line south to the Plaza/UMKC.
Voters also want rail and have been prepped for a plan that includes it, as well as service to Truman Sports Complex and Union Station (the revised DMU option for Rock Island would bypass Union Station). Focusing on Rock Island also preserves that corridor for an extension of the Katy Trail into downtown KC, an absolute necessity for any sales tax plan. While some well-heeled Lee’s Summit residents are opposed to anything resembling a train, none of them are opposed to a bike trail.
As for the I-70 corridor, choosing any rail option on the Southeast line pretty much excludes rail for I-70. Since the remaining I-70 rail option (DMU) now skips Truman Sports Complex, Union Station, and the Central Business District, it would likely not score well with the Feds or voters… leaving us with express buses to build ridership and serve more communities directly.
If you missed the open houses, please leave a comment online.4 comments
Judge Charles Atwell today issued his judgement [PDF] on the Transportation Development District the City sought to fund construction and operation of the 2-mile downtown streetcar.
The major question was whether the various assessments — on commercial, residential, and municipal property; a sales tax; and a additional assessment on commercial surface lots — presented an “undue burden” on any property owner. The judge ruled that while the levies would be a burden, no one is being singled out and the rates aren’t “disproportionate to that of other property owners.”
The judge heard testimony at a public hearing on April 17 (see photo above) and allowed the petitioners to make their legal case on April 18 (I was a supporting petitioner). Three commercial property owners showed up to oppose. Supporters outnumbered them, and even a few supporting commercial property owners were on hand to level things out. Deliberation was expected to take between one and two weeks.
Today’s ruling immediately starts a mail-in election (ballots may also be hand-delivered to the court):
- Monday, April 30 (8 a.m.) - Ballot requests begin
- Tuesday, May 22 (5 p.m.) - Ballot requests end
- Monday, June 19 – Ballots mailed to voters
- Tuesday, July 31 (5 p.m.) – Ballots due
Of course, we will have our answer on the TIGER grant application by the time this is all over. Not receiving that grant doesn’t end the project, but just delays it beyond the current 2015 target.2 comments
Now that the $25 million Federal funding application has been submitted for the downtown streetcar, it’s time to recap how we’ll pay for the $76 million remainder — via a Transportation Development District.
Bear with us, because this can get pretty wonky.
First, some background. The TDD is an economic development tool defined by Missouri statute. The law’s original intent was to afford voters an opportunity to organize and fund transportation improvements themselves using a sales tax or special assessment. In practice, most TDD’s in Missouri are drawn around strip malls and highway interchanges, thus allowing only property owners to form and set levies. Regardless of who forms a TDD, the main milestone is for a county judge to rule a TDD petition lawful. Once that requirement has been met, two votes occur within the district — formation and levies. Kansas City’s day in Jackson County court is April 17*.
Second, localized funding has been used heavily in streetcar projects, mostly due to lack of Federal support. Portland and Seattle have projects up and running that were also financed by special districts; others under construction have taken the same approach. The thinking is that the investment in a given corridor benefits those in that corridor the most; why not give them the opportunity to make the investment the City cannot afford to make?
We should note that the City ponied up $2.5 million for engineering, and will be one of the single largest contributors to the TDD (only DST’s reported annual contribution is higher).
Finally, we have the current situation with our streetcar. Once a judge rules that Kansas City’s TDD petition (#1216-CV02419) is lawful, voters will decide — like they decide many taxes and levies that property owners don’t get to vote on — with a simple majority of ballots cast.
TDDs exist in Kansas City and all over the state. Even the St. Louis Loop Trolley is using a TDD, as does the Plaza to pay for your “free” parking garages (if you consider a 1% sales tax premium “free”, even for those who walk or take transit there). There is nothing unconstitutional about voters determining the level of taxation within any municipal boundary. Community Improvement Districts — an economic development tool that can also levy assessments on property – are widely used throughout Kansas City to provide better services than the City can provide (security, litter removal, mitigating panhandlers). The TDD is no different, other than being limited to transportation uses. Downtown residents want a streetcar and this is the quickest, most effective way to build it. Period.
* The April 17 TDD hearing is for public comment. The actual legal decision will occur the next day and is not open for public comment, although the public can attend. We’ll bring you live updates from both on Twitter @kclightrail. To join the effort, like this page: https://www.facebook.com/streetcarneighbors1 comment
It was a big week for the Downtown Streetcar project. Here’s a brief recap:
- The City Council unanimously passed three rezoning ordinances that will make transit-oriented development easier, as well as improve the likelihood of receiving Federal funding. The biggest change involved elimination of suburban-style parking minimums in the Crossroads. To appease some property owners, the changes don’t take effect until May 1, 2013 — about the time the streetcar would start construction on the current timeline. Per Councilman Jim Glover, it’s one of the largest rezoning efforts the City has attempted.
- “Downtown Streetcar Supporter” window clings (see above) began appearing in downtown shops and restaurants.
- The $25 million TIGER application is in process and will be submitted on Friday, March 16.
- A public hearing for the Transportation Development District has been set for Tuesday, April 17 at the Jackson County Courthouse.
- If the judge rules the TDD can proceed, an election to form the district will be held Tuesday, June 5. A second election will be held to set the levies.
A draft version of the final downtown streetcar report has been posted here. The project is now ready to move into engineering. Here are some of the report’s highlights:
- Modern streetcar, electrified by overhead catenary wires and running primarily on Main Street, between River Market and Crown Center/Union Station (2.11 miles).
- Other than Main Street, vehicles will travel on Grand between 3rd and 5th; on 5th between Grand and Delaware; on Delaware between 5th and 7th (where Delaware turns into Main), then on Pershing between Main and Grand.
- Estimated operating hours are 6 a.m. to midnight, Monday through Thursday; 6 a.m. to 2 a.m. on Fridays and Saturdays; and 8 a.m. to 9 p.m. on Sundays. Three vehicles would provide peak headways of 11 minutes (with 22 minute headways on Sundays and after 9 p.m. on weekdays).
- Vehicles will operate in median lanes from Pershing Road to 14th Street, then run in curb lanes between 14th and 9th streets (eliminating the dysfunctional on-street parking that co-exists with a bus lane).
- Construction will take an estimated two years after design and engineering are complete; majority of disruption will occur within the right-of-way and not for the entire two year period along the entire route.
- No property acquisition required for the route, but parcels may be acquired for a maintenance facility.
- Communication utilities (AT&T/Verizon) would be most impacted by construction; Main Street has very few water, sanitary sewer, or gas lines.
- Capital construction cost is $101 million. Annual operating cost is $3.2 million.
- Funding will be a mix of fares, $2 million in City funds (mix of PIAC and TIF), up to $25 million in Federal grants, and $73 million generated by a new Transportation Development District over 25 years. No money will be diverted from existing KCATA operating funds.
- Daily ridership forecast for opening year (2015) is 2,896. By 2035, daily ridership is estimated at 6,023. By comparison, Main Street MAX carries around 4,000 riders between River Market and Waldo.
- Acres of parking within 1/4 mile of proposed stations: 105 (surface) and 53.2 (structured). Surface lots are strong candidates for redevelopment.
- Noise and vibration are similar to existing city buses.
- Connections to other transit services will be available at 3rd & Grand (city bus, Megabus), 10th & Main (city bus), and Union Station (Amtrak, regional rail).
Twelve stations are recommended for the following locations (about every 2 blocks):
- 3rd & Grand (northern terminus and existing KCATA park & ride)
- City Market (on 5th at Walnut)
- River Market West (on Delaware at Independence Avenue)
- North Loop (on Main at 8th)
- Financial District (on Main at 10th, adjacent to the KCATA transit center)
- Convention Center/Power & Light (on Main at 14th)
- Kauffman Center (on Main at 16th)
- Crossroads (on Main at 18th)
- Freighthouse (on Main at 20th)
- Union Station (on Main, opposite the station)
- Crown Center (southern terminus, on Pershing at Grand in dedicated lanes)
The Transportation Development District will generate revenue from the following downtown sources:
- Special Assessment on Real Property Assessed Value (including Chapter 353 abated properties)
- 1% in-district Sales Tax (in addition to a TDD sales tax that covers the Power & Light District)
- Special Assessments on Commercial Surface Parking
- Fares ($1 per ride)
- Advertising revenue
TDDs can issue bonds and are managed by an elected Board of registered voters within the district boundaries will be overseen by a four-person Board composed of City officials and mayoral appointees [Ed Note: Corrected on 1/10/12 at the request of the City of Kansas City; there are multiple ways to form a TDD Board, per statute.]. The proposed boundaries are the Missouri River on the north, 27th Street on the south, the centerline of Broadway on the west, and the centerline of Locust Street on the east. This would include most of the River Market, downtown loop, and Crossroads, but not Quality Hill or Columbus Park. Major retail hubs such as the City Market, Power & Light District, and Crown Center would all be included. An in-district election to form the TDD will occur early in 2012.1 comment
The modern streetcar project is progressing rapidly. With a federal grant to complete a new study for a dramatically smaller corridor in place, the first public meeting will be held on June 21. Check the SmartMoves website for the exact time and location. UPDATE: The meeting has been confirmed!
Major issues for the 2-mile route are street selection and funding.
The 2008 light rail plan basically narrowed the choices through downtown to Main or Grand. With Grand mired in an aggressive Complete Streets effort that came out of nowhere, it appears that Main Street is emerging as a consensus choice (mostly to avoid interference from Cordish-induced street closures and the “parade” argument). While light rail would have taken travel lanes away, the modern streetcar will share them… just like a bus. Opposition shouldn’t be as strong, knowing that the construction timeline will be shorter than a full-scale light rail project.
Funding is a bit more of a gray area. City staff and elected officials have repeatedly opposed attempting another city-wide vote. Yet, downtown support at the ballot box has been consistently strong, and most of the big boys in the loop realize that some sort of major transit investment is inevitable. Since there is no federal or state support for operating costs and KCATA has no wiggle room to add more services, that leaves localized funding. One way to generate revenue within the corridor is through a Transportation Development District, which requires only a petition of registered voters or property owners within a define boundary and a judge’s approval to form.
There is also a sense that City may step up to take the financial lead. A relatively small construction price tag, with perhaps the city owning the vehicles, could make issuing municipal bonds an option. That, of course, will add complexity to the convention hotel discussion that still plagues City Hall. With a strong credit rating but big debt load, will residents revolt if the City attempts both?
The list of cities actively planning new or expanded modern streetcar routes includes Oklahoma City, Washington, Portland, Dallas, Fort Worth, Salt Lake City, Tucson, Charlotte, and Atlanta. All have received federal grants in the last two years to expedite efforts.2 comments