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Southwest Rail Conference

Southwest Rail Conference. Joseph Black – Rail Director. February 25, 2013. Public Safety Issues with trains of up to 2 miles in length running through the urban cores of cities up and down the Austin-San Antonio corridor

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Southwest Rail Conference

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  1. Southwest Rail Conference Joseph Black – Rail Director February 25, 2013

  2. Public Safety Issues with trains of up to 2 miles in length running through the urban cores of cities up and down the Austin-San Antonio corridor Reduced Mobility as population growth and trade growth (two positive indicators for the region) result in increased congestion NAFTA Traffic is growing every year; many businesses in the corridor self-identify as NAFTA-related Economic Development is needed, supporting job creation and mitigating the effects of a negative world economy Lack of Transportation Choices in the corridor leaves people no alternatives to highway travel Decreasing Reliability as congestion increases, and both productive time for commuters and freight deliveries is negatively affected Air Quality is negatively affected by sole reliance on highway mode What are the Challenges?

  3. Public Safety Issues with trains of up to 2 miles in length running through the urban cores of cities up and down the Austin-San Antonio corridor Reduced Mobility as population growth and trade growth (two positive indicators for the region) result in increased congestion NAFTA Traffic is growing every year; many businesses in the corridor self-identify as NAFTA-related Economic Development is needed, supporting job creation and mitigating the effects of a negative world economy Lack of Transportation Choices in the corridor leaves people no alternatives to highway travel Decreasing Reliability as congestion increases, and both productive time for commuters and freight deliveries is negatively affected Air Quality is negatively affected by sole reliance on highway mode What are the Challenges?

  4. Lone Star Rail – Partnering Milestones • SA-BC MPO and CAMPO • 2004 – recommended dedicated revenue stream for LSRD at $5 million each per year for 10 years • 2007 - 2011 – STP-MM commitment of $20 million each for capital planning • Raised additional • $7.7 million federal funding • $8.7 million state funding • $4 million local funding • Signed Union Pacific Memorandum of Understanding in late 2010 • Launched environmental analysis of the passenger rail route, and starting (January) environmental analysis of the freight rail bypass route 3 3

  5. Lone Star Rail – What’s New Continuing to Build Partnerships • Union Pacific • State of Texas • Regional • Local 4

  6. Working with Union Pacific • Freight Rail Bypass – joint planning • LSTAR Passenger andLocal Freight Operations – joint planning “…We believe that both Union Pacific and the District have made substantial progress…and anticipate that an eventual agreement will result in the ability of the District to provide passenger service and relocation of through freight in the Austin-San Antonio Corridor…” Jerry Wilmoth, General Manager – Network Infrastructure, Union Pacific Railroad, May 16 2012 letter to Travis County Judge Samuel Biscoe

  7. First Step: Freight Rail Bypass • 80+ miles of new freight rail line from Seguin to Taylor • 40+ miles of improved freight rail line from San Antonio to Seguin • 30+ through freight trains per day rerouted to Urban Freight Rail Bypass 6

  8. Second Step: LSTAR Passenger Rail Service • 118 miles of passenger rail from San Antonio north to Georgetown • Up to 16 stations at full service • 32 round trips a day at full service • Express service of 75 minutes or less between downtown San Antonio and downtown Austin • Local freight service maintained and improved 7

  9. An “Education Corridor” 8

  10. Regional Partnerships CAMPO • LSTAR implementation of CAMPO 2035 Plan • Project Connect initiative - regional system, funding and organization plan for high capacity transit in 5 county CAMPO area SA-BC MPO • LSTAR implementation of Mobility 2035 Plan and VIA Long Range Plan • Engagement opportunity with VIA, Bexar County, and City of San Antonio on regional high capacity transit implementation 9

  11. Local Growth and Investment Partnership Opportunity: • Economic development opportunities • Connectivity to regional economic centers • Congestion-proof commuter service • Anchors other downtown investments and tax base • Mobility solution responsive to community growth demand • Safety and air quality enhancement O&M Investment: • Tax Increment Financing (TIF) • Station upgrades and in-kind service contributions • Other revenue sources to be identified 10

  12. How Partnerships Could Work • LSTAR, in combination with the downtown segments of the City of Austin’s Urban Rail system (another partnership), could bring the entire corridor from Georgetown to San Antonio right to the front door of the state capital complex and University of Texas at Austin 11 11

  13. How Do We Pay For It? With a combination of local, state, and federal funds with an opportunity for public-private partnerships Local O&M funding commitment (TIFs, etc.) is critical to securing capital investment. 12

  14. Capital Funding Outline • Local revenue sources for annual O&M and lifecycle costs are the “gateway” to accessing the capital funding and financing sources * High end price includes UP costs for full double track • Lone Star Rail District will acquire the Union Pacific RR right of way from Taylor to San Antonio; proceeds will be used to construct the freight relocation line. Service LevelInitialBaseFull Psgr Improvements $ 700 mil $ 840 mil $ 1,400 mil ROW Purchase/Relo* $1,160-1,330 mil $1,160-1,330 mil $1,160-1,330 mil 13

  15. Local funding is the gateway to capital funding from public and private sources. Project Steps – The Way Forward Local Funding Capital Funding Construction Commissioning Operations Design Timing • Capture value from land speculation, zoning and other entitlements • New development influenced by rail opportunity • Local funding necessary to secure capital funding • Helps reduce through freight in community downtowns & neighborhoods

  16. Local Funding: TIF Approach • 50 % participation of new property value increase/growth • Federal ½ mile distance standard for most LSTAR station locations • Exclude existing single family and duplex residential use properties • Tax exempt parcels added when developed • Pre-existing economic development agreements honored to expiration • “Safe Investment” provisions included

  17. LSTAR Operations and Maintenance (O&M) Costs • Operating and maintenance (O&M) expense allocated 1/3 each to: • Austin Region • San Antonio Region • Other Corridor communities Service LevelInitial Austin Region $10.1 mil San Antonio Region $10.1 mil Corridor communities $10.1 mil Total $30.3 mil

  18. Continuing the Partnerships 17 • We appreciate the support that Lone Star Rail has received from the rail advocacy community • Here’s how you can help now: • Champion the project in your local community, if you are a resident of the Austin-San Antonio corridor • Speak with your local jurisdictions about creating local funding sources (TIF, Sales tax TIF, etc.) • Speak with your state legislators about funding the Texas Rail Relocation and Improvement Fund

  19. www.LoneStarRail.com

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