Streetcars and the funding picture

From Dave Van Hattum, Senior Policy Advocate

Streetcars could be returning to Minneapolis or Saint Paul in the not too distant future.  Both cities have studies underway to determine the feasibility of streetcars in several different corridors.  In Minneapolis, focus is on Nicollet Ave and Central Ave, with discussion as well about lines along the Midtown Greenway and in North Minneapolis, along Broadway. Specific corridors have not been identified in Saint Paul, but it is likely they would intersect with the Central Corridor LRT and/or be on corridors with very high bus ridership.  

Streetcars are similar to light rail transit vehicles – both are powered by overhead electric – but streetcars are considerably lighter and cheaper to build than light rail vehicles. Today’s new streetcar lines typically are 1 to 4 miles long, travel in the road with other vehicles, make more frequent stops (every few blocks) than LRT trains, but carry fewer people than light rail.

Streetcars are particularly attractive due to their ability to spur economic development.  The 3 mile Portland Streetcar, located in the downtown Pearl District, cost of $57 million to build and led to more than $3.5 billion in new development within two blocks in less than a decade after opening in 2001. Development within a block of the streetcar accounted for 55% of all central business district development since 1997. Combined with a major brownfield redevelopment, excellent pedestrian facilities, and decreased parking, Portland’s first line led to an average density of 131 housing units per acre.

A car of the Portland Streetcar system at the eastbound Portland State University stop.

Interestingly, the FTA New Starts and Small Starts program (which provides matching funds for light rail and streetcars) has funded nine streetcars in the last five years. New Streetcar lines are under construction in Atlanta, Cincinnati, Milwaukee, New Orleans, Portland, Saint Louis, Salt Lake City, Seattle, and Tucson. Charlotte, Dallas and Tampa have recently received funding from the Federal Transit Administration to pursue streetcar lines.  

Recent proposed changes to the FTA New Starts/Small Starts program will increase the likelihood of federal funding for a local streetcar project.  The challenge for streetcar enthusiasts in the Twin Cities, however, is the lack of a local funding source.  Often new streetcar lines are funded with municipal funding sources like property taxes, parking taxes, or development fees.  Neither the ¼ cent regional sales tax for transitways (administered by CTIB) nor Metro Transit’s revenue sources (e.g. motor vehicle sales tax, general fund) are envisioned as likely funding source for streetcars.

The potential of streetcars to create neighborhoods where reduced (and no) car ownership is practical, and to complement a regional system of bus and rail, should engage the attention of local policymakers.  Streetcars, like the impressive potential of rapid bus, call out the need for expanded investment in public transit.  TLC will continue to advocate for increased transit funding for regional and local transit, including streetcars.

Comments

[Fred Peterson]

Too bad the end result will be the same as in the early 1900's when the auto and gas companies conspired to buy-out all the trolley systems and put them out of business.

[Kathleen Murphy]

My comment to the Streetcar issues have always been about the things that make them attractive to business owners and how clean, ecconomical, and on schedule that they are. When you have an efficent, attractive system that is good for the communitties around and in your downtown areas, they can be a good thng for all businesses in the areas. I really think that it would be a wise investment for both Mpls. and St. Paul to have them in and around the downtown areas. For St. Paul, I see them going up by our Capitol area and in Mpls. up and down the Nicollet Mall would be better for the restaurant owners instead of the noisy buses. Streetcars do have a way of attracting people to ride them as, they are clean and efficent and business owners profiting from them. It can be a win, win thing.

[Kathleen Murphy]

In response to Fred P. comment, I do not think that we need to focus on the down side of a streetcar system in Mpls, St. Paul. There are far more positive reasons that outweight the nagative. I do see that this could work if we see it for pulling Mpls. & St. Paul together for more business revenue.

[Gregg]

I love the idea of streetcars in the Twin Cities especially in areas like Nicollet, Broadway, or Central. I am concerned that Midtown Greenway is not appropriate for streetcars. It seems to me that it would fundamentally change the nature of that space from a long narrow park that is really good for bike commuting just a street that works for commuting but is not a pleasure to be in. Why not put the streetcar in on Lake St? It would be right by all the businesses of Lake St and not take away from the greenness of the Greenway.

[Brian Finstad]

I highly support Street Cars on West Broadway. North Minneapolis is greatly in need of better connectivity with the rest of the city as well as economic development.