Potential TIGER Streetcar Operation and Maintenance Funding Mechanisms

Transportation & Environment Committee June 10, 2013

TIGER Streetcar Project Overview
• Phase I - The 1.6 mile base project currently under construction runs from Union Station to Methodist Hospital at a cost of approximately $48.6 million, including vehicles
– – – – $26 million in federal funding $12.8 million in local funding (Regional Toll Road Revenue) $1.5 million (reprogrammed bond program dollars) $9 million from DART for vehicles

Phase II – One-half mile northern extension loop is in conceptual design, proposed to run from Union Station to the Omni Dallas Convention Center Hotel, at a cost of approximately $10 million
– Local funding (Texas Mobility Funds)

Phase III – Three-quarter mile southern extension loop is in conceptual design, proposed to run from Methodist Hospital to the Zang Blvd. / Davis St. intersection at the Bishop Arts District, at a cost of approximately $21 million
– Local funding (Texas Mobility Funds)
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Dallas Streetcar Network

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TIGER Streetcar: Operations & Maintenance (O&M) Costs
• O&M cost for Phase 1 ($500,000 per year) funded by Dallas Area Rapid Transit (DART) and private developer (Stratford Land)
– $200,000 a year from DART – $300,000 a year for ten years ($3 million total) from Stratford, reimbursed through Davis Garden TIF District – Base project assumes weekday service only • Between 5:00 a.m. to 7:00 p.m. • Assumes 20 minute peak service and 30 minute off peak service

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TIGER Streetcar: Operations & Maintenance (O&M) Costs
• O&M cost for Streetcar Extension – Phases 2 & 3
– Extensions with weekday service only estimated at $750,000 per year • Between 5:00 a.m. to 7:00 p.m. • Assumes 20 minute peak service and 30 minute off peak service

– Extensions with weekday and weekend extended hours estimated at $2.5 million per year
• • • • Service from 5:00 a.m. to midnight Assumes 15 minute headways DART funds $750,000 per year Unfunded gap of $1.75 million per year

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Potential O&M Funding Sources
• Tax Increment Financing (TIF)
– – – – City Center TIF Downtown Connection TIF Oak Cliff Gateway TIF New TIF districts yet to be created

• Public Improvement District (PID)
– Downtown Improvement District (DID) – New PIDs in North Oak Cliff or Downtown overlay

• DART 2030 Plan

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Dallas Streetcar Phase 2 Extension

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Dallas Streetcar Phase 3 Extension

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Funding Challenges
• TIF funding availability uncertain
– Timing an issue because increment collection varies by district and is dependent on property value increases – Existing TIF commitments in Downtown and Oak Cliff Gateway TIFs – New Oak Cliff TIF would require large catalyst project to ensure new increment is generated

• Public Improvement Districts

• DART 2030 Plan

– Formation and assessment rate requires consent of land-owning stakeholders – Existing Downtown Improvement District (DID) has some capacity but many priorities (potential to form a streetcar-centric Downtown overlay PID) – New Oak Cliff PID would require institutional support
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