Realizing Transit: Clearing the funding hurdle. Presentation to the 8 th International Hydrail Conference June 11 th & 12 th Ryerson University,

Transcription

1 Realizing Transit: Clearing the funding hurdle. Presentation to the 8 th International Hydrail Conference June 11 th & 12 th Ryerson University, Toronto, Canada

2 Toronto, Metrolinx is not alone: How do we pay for transit? Charlotte Area Transit System Denver s Eagle Project Tucson s Streetcar Cleveland s Bus Rapid Transit LA s Crenshaw Light Rail Line Dulles Metro Rail Line Denver s Union Station NJ s Light Rail Line

3 2030 Transit Corridor System Plan Adopted by the Metropolitan Transit Commission in 2006 o Guide for growth of mobility options in the region 30 year long range plan o Build out of a multimodal transit system o Introduction of rapid transit modes of transportation Federal Transit Administration (FTA) and the NC Department of Transportation (NCDOT) are key financial and technical partners FTA is the largest investor in projects i.e. 50% of eligible projects Every $ received from NCDOT is matched 100% with local half cent sales tax funds

4 2006 Funding Plan $8.8billion State Federal Local Sales Tax $971 million $2.5 billion $5.1 billion Financial model through 2035 included: Capital and Operating expense 3 main sources: Local Sales Tax Federal Grants State Grants Other revenue from fares, interest and property tax / vehicle registration System Funding Plan

5 Economic Impact on Sales Tax Economies Impact on Sales Tax Receipts 2006 Revenue Estimate 2013 Revenue Estimate

6 Our Next Major Project: LYNX Blue Line Extension LYNX Blue Line Extension (BLE) o +9.4 miles o Implementation in 2017 o +25,000 daily riders o Improvements to North Tryon Street o Connects UNC Charlotte campuses FTA issued Record of Decision in December 2011 Request to enter Final Design in March 2012 Financially sustainable project o $1.16 billion (YOE) o FTA approved project & FFGA o NCDOT approved project & FFGA Next Major Project: LYNX Blue Line Extension

7 LYNX Red Line (Commuter Rail) LYNX Red Line: North Corridor Commuter rail from downtown Charlotte to Town of Davidson (or Iredell County) Currently not eligible for federal funding grants for construction NCDOT participation necessary o Financial partners o Leadership with private railroads Proposed build out in 2018 o P3 (Public Private Partnership) Candidate for design build

8 LYNX Red Line (Commuter Rail) Dual Benefit Corridor o Integrates the efficient movement of both goods (freight) and people (transit) Economic Benefit o Attract new residents, employment and private business, strengthening the North Corridor as a focal point for the regional economy Unified Benefits Approach o Maximize regional value creation, value capture and value distribution though a Joint Powers Authority (JPA)

9 LYNX Red Line (Commuter Rail) Rosa Parks Place to Eastland Serves many travel markets Catalyst for development PE funded by City of Charlotte Federal grant for 1.5 mile starter project CityLYNX Gold Line Streetcar

10 Gold Line Airport West Corridor Gold Line Streetcar West Corridor Airport Connection 2025 System Plan (2002) Bus Rapid Transit Light rail not FTA cost-effective 2030 System Plan (2006) Streetcar extension post 2030 Light rail not FTA cost-effective Today Sprinter Service

11 Funding Gap $5 billion ( Projected - remaining corridors ) $1.7 billion Operating $5 billion gap needed to advance the remaining corridors Red Line North Corridor Gold Line Center city Gold Line Airport West Corridor $3.3 billion Capital Silver Line Southeast Corridor Funding Gap 2045

12 The Best Minds Best Ideas Transit Funding Working Group Metropolitan Transit Commission working committee Specifically focused on: Identifying & building awareness for funding challenges faced to complete the 2030 Transit Plan Recommend a set of funding and financing tools and strategies Diverse cross section of local business, industry and elected officials Finance, Development, Small Business, Transit Local Town, City, County and State elected officials

13 The Best Minds Best Ideas National Experts / Projects Learning from national experts How they are: Advancing transit projects thru P3s Using energy savings / carbon credits to finance projects Leveraging partnerships to reduce project risk Creating local jobs & providing ROI to private businesses Assembling innovative funding / financing models P3 Projects: Denver s Eagle Project Tucson s Streetcar Cleveland s Bus Rapid Transit LA s Crenshaw Light Rail Line Dulles Metro Rail Line Denver s Union Station NJ s Light Rail Line

14 One of Denver s Models Fed New Starts Private Activity Bonds TIFIA Loans Federal Grants Local/CDOT GARVEE Revenue Bonds Local Sales Tax $2.05 billion $1034 million $396 million $280 million $62million $40 million $16million $48 million $114million The Denver Experience: Denver Eagle Project: Transit FasTracks initiative Multiple corridors advancing Commuter rail / Bus Rapid Transit Project Delivery: Denver Transit Partners Design Build Finance Operate Maintain For 34 years Transit retain asset ownership Set fares, customer service, safety, standards

15 Chicago Infrastructure Trust The Chicago Experience: Energy Retrofit Cross agency project for several Chicago city departments and the Chicago Public Schools $100 million retrofit of facilities to realize energy savings Energy savings are shared with P3 to pay for project and provide a return on investment Chicago Infrastructure Trust 501C organization Appointed by Mayor with staggered terms Allows for a more regional approach Cross different agencies to obtain benefits and advance projects

16 Contrasting Models Contrasting Models State Federal Local Sales Tax Fares / Adv./Other Federal NCDOT TIFIA/RRIF Loans Pay As You Go Capital More robust and flexible funding & financing mechanisms Spreads risk across many entities Increased upfront development potential Pay As Go TIFs SAD/MSD Pennies for Progress Expanded sales tax, etc. Current Model Proposed Model

17 Toolbox Revenue tools Metrolinx short listed: Development charges Employer payroll tax Gas tax High occupancy toll lanes Highway tolls Land value capture Parking space levy Property tax Sales tax Transit fare increase Vehicle kilometres travelled Local Revenue Exploration TIFIA Loan for BLE long term financing Define System Plan boundary for general TIF legislation Enact TIF district along BLE Corridor Develop local infrastructure bank Assess impact of changes to base by the General Assembly on the current ½% sales tax Establish zoning incentives along corridors to attract development Explore menu of options for ancillary revenue: o Advertising o Air rights o Naming rights o Digital kiosks/boards o Carbon tax o VMT o Parking o Energy Related Revenue o Debt Refunding Coordination/financial cooperation from Airport on West Corridor Streetcar Legislative State authorizing legislation for all P3 methods TIF and SAD legislation which makes revenue eligible for capital (and operating) costs of transit Extend SAD Legislation Sunset State legislative authority that may be needed to explore transit loan programs Additional sales tax (including Pennies for Progress for capital) Technical Planning/Engineering Combine Streetcar and West Corridors into one project Define mode for the Southeast Corridor Revisit project scopes and cost estimates Outreach Initiate and maintain contact with P3 market Educate other stakeholders on P3 methods

18 Cost Pressures Cost Pressures Create an opportunity: Construction Costs and Operations & Maintenance Costs Have to be included in the finance plans for transit lines. Eliminating catenary can significantly reduce the cost of both. Equipment OEM s need to adopt the BMW approach and provide financing/leases that include maintenance in the cost and/or; OEM s should participate in P3 consortiums which provide a reliable total cost financing.

19 Questions Questions?

20 Thank You Presented by: Bill Thunberg, Executive Director Lake Norman Transportation Commission Thank You!