Georgetown City Council Workshop Session

Lone Star Rail District Leadership and Staff

December 13, 2011

What are the Challenges?

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?

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 Objectives of the Lone Star Rail District?

Created by the Legislature to:
Improve

Public Safety throughout the corridor by moving through freight trains out of cities and urban cores
Improve Speed

Mobility throughout the corridor by reducing congestion

NAFTA Freight Deliveries through development of a new Freight Service Urban Bypass
Create Offer

New Tax Base Possibilities for city and county governments

an Energy-Efficient Transportation Alternative to nearly 300,000 students, faculty, and staff at colleges and universities along the route
Provide

Predictable, Reliable Travel Choice allowing people to make more productive use of their time
Maintain Create

Air Quality Status by removing cars and trucks from the roads

a Seamless Multi-Modal Transportation System

a Catalyst for Exciting Economic Development Opportunities; provide impetus for directing growth & development in preferred areas

Provide

Why Regional Rail for Georgetown?

Recommended by the My35 team (a multidisciplinary, multijurisdictional team of citizens appointed by the Governor to study solutions for congestion on IH-35) for nearterm implementation. Congestion-proof method to provide new capacity (2,400 passengers per hour and up) using mostly existing rights of way (no need to purchase extensive new property service will operate for the most part in the existing Union Pacific Railroad corridor). Expandability is easier and much less costly with rail than highways; rail provides an excellent adjunct to improved highways, helping to mitigate congestion by providing a high-quality, attractive alternative to driving for many trips.
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Jurisdictions and Service Area

Cities: Georgetown, Austin, San Marcos, New Braunfels, Schertz, San Antonio Counties: Travis, Hays, Bexar Transit Agencies: Capital Metro, CARTS, VIA, ART MPOs: CAMPO, SA-BC MPO Regions Board Representation: Georgetown: Patty Eason CARTS: Debbie Ingalsbe

Financial and Economic Benefits of LSTAR *

Forecast Through 2030:
Personal State

income: cumulative increase of $20.4 billion

tax revenues: increase of $1.02 billion and local tax revenues: increase of $1.31 billion Valorem tax revenues: increase of $578 million

Regional

City/County/Ad Local Sales

and school district property tax revenues: increase of $915 million tax revenues: increase of $415 million area property values: increase between $445 million to over $4.4 billion

Station

Billions of dollars of savings by decreasing travel times, congestion costs, fuel costs, highway maintenance costs, and accident costs.

* Sources: 2004 Austin-San Antonio Commuter Rail Project Feasibility Report Update (Texas Perspectives) 2006 Economic Impact Analysis (Carter Burgess & Capitol Market Research)

Basic Facts about the LSTAR Proposed Service

117 miles of passenger rail from Georgetown to south San Antonio. Up to 16 stations at full service, linking communities and destinations all along the corridor. 20 to 30 trains a day at full service, seven days a week, in each direction, including midday and evening service. Express service of 75 minutes or less at full service between downtown San Antonio and downtown Austin. Primarily routed in existing rail right-ofway upon relocation of Union Pacifics through freight operations to urban bypass line.

An Education Corridor

But FirstUrban 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. 80 mph maximum freight train speed. 20 to 30+ through freight trains per day to be rerouted via Urban Freight Rail Bypass.

The Tail Wagging the Dog

Benefits of the Urban Freight Rail Bypass include:

Enhancement of regional mobility (taking slow, 1- to 2-mile long freight trains out of the urban cores), Increased public safety (grade crossing elimination), Enhanced freight mobility (higher velocity and capacity), Improvement/maintenance of air quality (reduction in vehicle idling at grade crossings), Increased economic development (opportunity to develop regional distribution centers), and Creation of capacity for passenger rail on current route
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Whats Happened So Far?

Raised $7.7 million in federal funding, $8.7 million state appropriation, $50 million in Texas Rail Relocation Fund, and secured $20 million SA-BC MPO and $20 million CAMPO funds Completed feasibility, ridership, preliminary revenue/cost studies, and financial benefits/economic impact studies Evaluated and rejected FTA New Starts process Developed local funding concepts Conducted public meetings Conducted jurisdictional meetings Completed branding program for Rail District Signed Union Pacific Memorandum of Understanding in late 2010

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Whats Happening Now?

Working on environmental & engineering on passenger route Station location studies Updating financing plan and business plan Updating ridership studies (in cooperation with State Rail Plan for I-35 corridor) Working on urban bypass rail studies with Union Pacific partners Conducting local funding discussions for annual Operations & Maintenance (O&M) costs
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What Happens Next?

Engineering and environmental studies are expected to take 3+ years After federal approval, move to final design and construction expected to take 2 to 3 years. Freight rail relocation studies, financing plan, passenger rail environmental and engineering studies going on concurrently Solicit interest from potential private sector partners Federal funding requests (e.g. HSIPR, RRIF, appropriations, reauthorization) Establish local funding mechanisms

Partner to evaluate funding approaches Establish interlocal agreements with LSRD

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Local Funding Operations and Maintenance Costs

Annual operations and maintenance (O&M) costs spread between local jurisdictions

1/3 to San Antonio/Bexar County region: app $10 mil. initial service, $14 mil. full service 1/3 to Austin/Travis County region: app $10 mil. initial service, $14 mil. full service 1/3 to smaller cities and their counties: app $10 mil. initial service, $14 mil. full service

Local O&M funding is needed to apply for federal grants and to solicit publicprivate financing options; it is the Gateway to construction capital

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Financial Strategy Capital Costs

Capital cost for regional passenger rail: $394 million initial service increasing to $613 million full service (2006 $) Capital cost for Union Pacific freight service urban bypass: $1.7 billion*
(2006 $)

Capital expenses covered over time through a combination of:

UP cost-sharing Public-private partnerships Federal grants and loans (FRA, FHWA) State Rail Relocation funds

* Total cost. To be shared

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Project CONNECT

City of Austin, Capital Metro, Lone Star Rail District, and others Coordinate regional rail network development in Austin to anchor urban core Expedite freight rail relocation Create opportunity for Federal funding and public-private investment agreements Evaluate annual O&M funding alternatives and develop Austin regions approach Support economic development within station areas and rail corridors Create and operate a seamless, coordinated high-capacity transit system in Central Texas

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San Antonio Rail Partnership

City of San Antonio, Bexar County, VIA, and Lone Star Rail District Coordinate rail network development in San Antonio to anchor urban core Expedite freight rail relocation Create opportunity for Federal funding and public-private investment agreements Evaluate annual O&M funding alternatives and develop San Antonio regions approach Support economic development within station areas and rail corridors

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Seamless, Cost-Effective, Time-Competitive, Easy-to-Use Transit for Central and South Texas

Fare coordination Schedule coordination Transfer facilities Common marketing/system image Shared customer service Integrated, common web and mobile presence Leveraging technology

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Lone Star Rail Districts Pledge to the Region

LSTAR will give Central and South Texans independence from congested highways:
by providing a reliable, predictable and safe regional transportation alternative that allows people to improve their lives and expand their horizons.

We will also deliver benefits to those Central and South Texans who choose not to ride the LSTAR with:

Improved safety, mobility, and environmental quality Positive economic impact at the local and regional level New opportunities for community vitality, prosperity, and quality of life

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Thank you
for your support!
www.LoneStarRail.com