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Passenger Rail Economics: Evaluatingthe Financial Feasibility of Passenger
Rail and Transit-Oriented Development
Southern High-Speed Rail Commission
New Orleans, LA
July 15, 2010 John Robert Smith, PresidentReconnecting America
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Creating a national marketplace forTOD, working with cities, transitagencies, developers, investors +communities
Improving practice through
technical assistance, research +policy reform
On-line Clearinghouse of TOD +Transit Best Practices
Reconnecting AmericaRemaking the Mission of Transit for Communities and the Environment
A new coalition of business, housing,environment, development, labor,
health, ageing and transportation
interests
Campaign Focus on the Next Federal
Transportation Bill Transportation investments that are
economically sound, respond to
markets and improve the lives of
people
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Federal Policy is Starting to Align
HUD/DOT/EPA
Partnership
$140 million for planning
grants in FY2010 budget More potentially in 2011
Budget
New investment
demands performanceand accountability
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SAFETEA-LU expired Sept 30, 2009
HIRE Act extended authorization until December 31, 2010
House bill STAA passed T&I subcommittee in June 09
Senate EPW recently held hearings; rural perspective will be
important in the Senate
Sen. Reid has indicated a willingness to bring bill to floor this year
Kerry-Lieberman American Power Act provides $6.25 B for clean
transportation
1/3 to HTF for green projects
1/3 to CLEAN-TEA
1/3 to TIGER program
The State of Play on Capitol Hill
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6
0
80
100
120
140
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Transit Ridership (1995 = 100)
Amtrak Ridership (1995 = 100)
All forms of transit use rising
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Transit is in a Building Boom
$250B in transit planned nationally
$9.5B spent by FTA in last 6 years
$8 billion already for High Speed Rail
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Historically, New
Orleans Street
Railways
Operated amajor system
224 miles ofservice byNew OrleansPublic ServiceInc.
668
passengercars
1924
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The density is still there to support expanded fixed guideway
servicehigher than most recent new starts regions
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Mirror ImagesNet Residential Density Varies from 0-30.2 HH
per Residential Acre; Vehicle Miles Traveled per HH per Year
Varies from 4700 to 29000
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Housing costs only average 28% of AMI for HHs earning AMI; H+T
costs average 52% of AMI for HHs earning AMI
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Even worse for HHs earning 80% of AMI
H-Costs jump from average 28% to 35%
H+T Costs jump from average 52% to 63% of AMI, and
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Gas outlays went from a low of $330 per HH/year with an
average of $1090 and high of $1992, to a new low of $1100, new
average of $3090 and a new high of $5600
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Creating Livable Communities throughStation Area Development
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Using location to advantage
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Using location to advantage
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Play To Your Strengths
Saving city core, working outward Began with transportation hub
Historic restoration
Quality, mixed income housing
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What works really works
Good community planning works on all levels
Transportation options vital to rural areas
Steal the best ideas of others
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Making the impossible POSSIBLE
Several Meridian projects faced
challengesboth internally and externally
Lack of confidence
Lack of infrastructure
Lack of creative financing
Lack of partnerships
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CONSTRUCTION COST
$5,792,000 Low Bid
+ 868,800 15% Construction
inspection, Contingency, Testing (FHWA & MDOT)6,660,000
- 90,603 Difference in Construction Inspection (FHWA)
and Existing Contract
$6,570,197 Total Project Cost
MDOT FUNDING
$2,544,960 ISTEA Enhancement Grant (MDOT)
971,040 Supplemental Grant (MDOT)
640,571 STIP Grant Transfer290,281 STP-93
+ 700,000 Supplemental Grant (MDOT)
$5,146,852 Federal/State Contribution
LOCAL FUNDING
$1,014,000 Balance COPS (5-31-96)
- 53,795 Committed Non-Construction Expense
960,205
+ 431,000 AMTRAK
$1,391,205 Total Local for Construction
$6,570,197 Project Cost
- 5,146,852 Federal/State Contribution
$1,423,345 Total Local Needed
$1,423,345 Total Local Needed
- 1,391,205 Total Local for Construction
$ 32,140 Unfunded
Funding Union Station Development
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Union Station
A Multi-Modal Transportation Center
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Union Station
Annually, Union Station hosts 250 events and300,000 passengers
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Union Station Spurred private development of $135 million
in surrounding area
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MSU Riley Center
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Full Potential Possible MSU Riley Center is state-of-the-art performing
and conference facility
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Full Potential Possible
Retail, restaurants, residential and commercialspace revitalized in area
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Hope VI Village
$17.3 million in HUD HOPE VI grants fordevelopment of low to middle income duplex
and single-family housing
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Contact Us!
Flickr user: tallkev
John Robert Smith
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