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Mayor Coleman Unveils Streetcar Financing Plan
‘Benefit zone’ to provide 80% of funding
March 27, 2008
Streetcars could be riding the rails in Columbus in 2012 under a plan outlined tonight by Mayor Michael B. Coleman, City Councilmember Maryellen O’Shaughnessy, and a team of engineers and financial experts. The team brought together the Mayor’s 42-member Streetcar Working Group and residents to outline the funding scenario to pay for a $103 million starter line that would travel 2.8 miles up High Street from Mound to The Ohio State University campus.
“We’ve done our homework and asked the toughest questions, and it is clear that streetcars can be good for Columbus,” said Columbus Mayor Michael B. Coleman. “A sleek, modern Streetcar system will reconnect neighborhoods and downtown, connect workers to jobs in a time of high gas prices, help build our economy, and we can do it all without a citywide tax increase.”
The plan represents more than two years of study by the City, businesses, civic leaders, and most recently by HDR, a national engineering firm, and John Rosenberger, formerly of Capitol South, who developed the detailed financial scenario. An economic impact study commissioned by the Streetcar Working Group from the Danter Company estimated $300 million in private investment in new housing, jobs, commercial development and visitor activity along the first phase of the streetcar line.
“Along these routes you have a lot of people – some 50,000 students, 141,000 workers at 6,000 companies and another 60,000 people who live between campus and downtown Columbus. Every year we get more than one million visitors for conferences and conventions. If we share the costs among all those who benefit from having access to streetcars, we can build a great system by our Bicentennial in 2012,” said Maryellen O’Shaughnessy, City Council Member.
The funding scenario presented to the Streetcar Working Group during a public meeting held at City Hall calls for 80% of the funding to be generated from within a ‘benefit zone’ drawn approximately three blocks on either side of the Streetcar line.
All parking revenue from the ‘benefit zone’ would be dedicated to streetcars, including a increase on metered parking, and a 4% surcharge on paid parking and ticket admissions to sporting and entertainment events. Fares and an annual funding contribution from The Ohio State University would bring ‘benefit zone’ funding to 80% of the cost needed to build and operate the starter line.
“This is a funding scenario that asks a lot of people to pay a little, so that no one has to pay a lot,” said John Rosenberger, a local expert on public private partnerships and downtown development. “We have been timid too long, streetcars would be a bold, transportation option that would drive a new generation of investment.”
While the majority of funds come from those who live, work and visit the ‘benefit zone’, the remaining 20% will be paid for by the greater community, which also benefits from the economic growth of the area. The Mid-Ohio Regional Planning Commission (MORPC) has already pledged $20 million to the project.
Mayor Coleman proposed an initial investment from the City Capital Budget of $2 million in 2008 to begin engineering the project. Under this scenario, the streetcars could be rolling as early as 2012, in time for the City’s Bicentennial celebration, with construction starting as early as 2010.
In making its recommendation to move forward, in November 2006, the Streetcar Working Group identified several benefits that streetcars would bring the city including economic development, connectivity, help with parking, and green transportation. The streetcar also fulfills part of Mayor Coleman’s Downtown Business Plan that has already attracted two billion dollars of investment since 2002.
The full report is available here (PDF), residents can leave feedback by writing to: streetcars@downtowncolumbus
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Great presentation. My favorite part was the older man who pointed out why an elderly community would benefit from the streetcars. When he first stood up I just thought, well here it comes, this guy prob. hates the idea. It was great to hear someone of his age say how much he likes it and why. He also pointed out my fav. part….street repairs are exponentially more expensive than the proposed streetcar idea.
Sounds like a good funding plan to me. Too bad it can’t get done sooner.
FYI: There’s no way installing streetcars are comparable to road resurfacing in costs per lane mile, but the whole argument is sort of irrelevant since you have to repair roads even after a streetcar is installed.
Yes the street car will serve the diverse numbers of people that have no ability, for whatever reason, to drive motor vehicles or operate bicycles. Handicapped, disabled, ill, elderly, children, youths, visitors and more will all have more mobility options and more empowered.
I think we should also have a “special benefits zone”.
This is more of an engineering question: So the line would go between Mound and 11th right? But is can not just end. there, there needs to be a turntable or loop section that uses some space. Where will this be. Plus there will need to be garages and workshops and staging space for the streetcars. Where will those be? Will it go underground at the end point s to perform these functions?
It sounded like they were leading toward loops around blocks at each end, but said it was all still being studied at this point, so they didn’t have anything set in stone yet to present.
I’m not sure where the garage will be. Somewhere close to the line I’d imagine.
Yes the street car will serve the diverse numbers of people that have no ability, for whatever reason, to drive motor vehicles or operate bicycles. Handicapped, disabled, ill, elderly, children, youths, visitors and more will all have more mobility options and more empowered.
I think we should also have a “special benefits zone”.
This is more of an engineering question: So the line would go between Mound and 11th right? But is can not just end. there, there needs to be a turntable or loop section that uses some space. Where will this be. Plus there will need to be garages and workshops and staging space for the streetcars. Where will those be? Will it go underground at the end point s to perform these functions?
I was thinking the endpoints could be park and ride spots. They could build a nice “station stops” that could serve the purpose of fixing and storing cars while providing retail/food for people.
They should build the repair garage on the statehouse lawn. Funny! axles and welder and rusted out streetcars littering the lawn.
Loops around the block eh? Well that would expand its breadth even more- the south loop on Mound, Front and, Main? The north loop next to the south dorms or the Law College? eh?
Thursday, March 27, 2008
BY ROBERT VITALE
Hockey fans, concertgoers and people who drive Downtown would pay the biggest share if Columbus goes ahead with a $103 million streetcar line on High Street.
Taken off the hook with a financing plan endorsed today by Mayor Michael B. Coleman: hotel guests, diners and bar patrons, movie buffs and people in the cheap seats at the new Columbus Clippers baseball stadium.
Coleman plans to send a proposal to the city council before the end of the year in which the city would add a 4 percent surcharge on tickets to most concerts and sporting events within six blocks of the streetcar route.
Another 4 percent surcharge would affect people parking in lots and garages along the line from Downtown to Ohio State University, and parking-meter rates in area would rise an average of 75 cents per hour.
People who pay much of the costs would get a perk: They wouldn’t have to pay to ride the streetcars. For everyone else, fares are expected to average $1.
READ MORE
Funding basics:
- Fees paid by institutions and visitors in the area served by the streetcar would cover $10.5 million, or 80 percent, of the cost.
- Ohio State contribution: $500,000
- 4 percent surcharge on off-street parking: $1.1 million
- 4 percent surcharge on paid admissions: $3.8 million
- Fares (average $1 per ride): $700,000
- Rate increase on parking meters: $800,000
- Existing parking meter revenue: $3.6 million
- Another 20 percent, or $2.2 million, would come from sources outside the streetcar zone.
- Federal grants through the Mid-Ohio Regional Planning Commission: $2 million
- Advertising and naming rights: $100,000
- Other federal funds: $100,000
- Fees paid by institutions and visitors in the area served by the streetcar would cover $10.5 million, or 80 percent, of the cost.
- Ohio State contribution: $500,000
- 4 percent surcharge on off-street parking: $1.1 million
- 4 percent surcharge on paid admissions: $3.8 million
- Fares (average $1 per ride): $700,000
- Rate increase on parking meters: $800,000
- Existing parking meter revenue: $3.6 million
- Another 20 percent, or $2.2 million, would come from sources outside the streetcar zone.
- Federal grants through the Mid-Ohio Regional Planning Commission: $2 million
- Advertising and naming rights: $100,000
- Other federal funds: $100,000
under construction by 2012……..i guess i can live with that. by that time, i hopefully will be living in the new riversouth development. $1.00 rides……..i was thinking $1.50 so that’s good. Ohio State contribution of $500,000….come on, give me a break you cheapasses. i just hope it doesn’t turn out to be a rolling billboard. man i wish this thing could get rolling sooner, but first thing’s first. i’m curious to see how many announcements of new developement we are going to see within the next year or so in anticipation of the new line.
by the way, how was the turnout, i couldn’t make it.
That’s per year. Still, I heard afterwards that it was a bit of a lowball figure, which could increase a bit before all is said and done. Keep in mind that OSU’s direct involvement in the project is a NEW announcement, and it was wonderful to have Gee come and speak up about his enthusiasm for the project. Prior to today’s announcement, OSU had nothing to do with the Streetcar funding.
I’ve only been to a few council meetings, but it was the fullest I’ve seen the room. Lots of extra chairs up front (where we sat) and the balcony was fairly full from what I heard as well.
That fellow was Fred Rea, a wonderful and intelligent guy with a great perspective on Columbus and an ‘engaged citizen’ approach to life.
Construction will actually start in 2010 and be done by 2012. And I agree, I look forward to seeing a streetcar painting on the boards outside Ibiza, or people buying up spots in anticipation of it. If I had the cash, or a great idea I know I would.
I think OSU might be persuaded to release a little bit more even with the line as currently envisioned, but my guess is that they’ll wait until Phase II to really get on board (no pun intended) because that will give the university leverage over where the new route goes … and they may well want to see it turn left at Lane and head to the athletics complex rather than continuing north along High into Clintonville.
(Personally, I like the idea of a High-Schott-Lennox-Battelle/OSU Med Ctr-High loop, but I’m willing to consider the possibility that my world is somewhat Buckeyecentric.)
I’m more curious about what the 20% funding “from outside the streetcar zone” means, given that the mayor has explicitly ruled out general tax increases for this.
Most of that was made up from the $20 million 10-year investment from MORPC.
Yeah, I’m tellin ya… University of Washington had us pay a mandatory $35/quarter fee that gave us a free bus pass for everywhere in the metro.
If OSU bumped their transit fee for students up to that, it would be a solid 20+ per student per quarter income.
At 51,818 students (2006-07 numbers), we’re looking at a rounded down income of 1 mil per quarter. 3 million per year.
That’s frickin huge.
A TV reporter at Northstar yesterday asked Niki (she declined to answer on camera about it) how she felt about the funding proposal and, without knowing she was a High St. business owner) mentioned there was going to be a tax on businesses in the benefit zone as well.
Does anyone know if there is any truth to this?
Does anyone know if there is any truth to this?
The answers given last night were a definitive “no”.
sorry about that open comma, close parenthesis
That fellow was Fred Rea, a wonderful and intelligent guy with a great perspective on Columbus and an ‘engaged citizen’ approach to life.
Why oh why is he living in Reynoldsburg? He should know it’s going to be the next slum. Or at least not have light rail for decades to come.