the project no longer has funds to complete the 1.6 mile route,
doyou expect that the voters will then vote for tax increases to fund the project?
Will the city raise real estate and income tax to support the funding shortfall? What impact will those tax increases have on local businesses and future business development?
If taxpayers refuse to fund the projected shortfall,
are there claw-back or other onerous provisions attached to the Urban Circulator Grant ($25 million), the OKI Grant ($4 million), or the Tiger Funding ($10.9 million)?
Extension beyond the abbreviated 1.6 miles will have higher constructioncost per mile due to elevation changes.
If we consider this a long-term project, what is the expected total cost of the streetcar strategy? Is thissimilar to the failed $500+ million rail system in Buffalo NY?
Since your term as Mayor will be complete in December will
current City Council Members bear the sole responsibility
for the investment decisionto proceed with the streetcar investment? Additional background information follows:1. The Business Courier stated that the streetcar is “
viewed by top cityofficials as a vital economic development project to help attract newinvestment that will, in turn, generate tax revenue to fund other services.”
Using some basic assumptions, the projected
Discounted Cash Flow of the streetcar project has a negative cash flow of more than $50 millionduring the next 30 years.
How did the city reach the conclusion that thestreetcar would generate funding for additional investment?
Some of theinvestment assumptions (consistent with a template used by the city) usedto reach the negative cash flow include:a. A 3% discount rateb. Assessed Value at 35% of new real estate investmentsc. Commercial property tax rate of $0.077444543d. Annual abatement at 75%
e. Estimated construction and real estate investment in the city of $100 million per year for the next 15 years, totaling $1.5 billion.f.
Tax abatement for the first 10 years
, although the city regulationsallow up to 15 years for abatement. Do you intend to change thetax abatement practice?2. The current cost estimates now total about $135 million (see Exhibit 1attached). This information is based on the latest article written by theBusiness Courier discussing the project.