City of Schertz Presentation
Joe Black – Lone Star Rail District
Joe Lessard – Knudson, LP
December 9, 2014
Lone Star Regional Rail – Strategic Considerations

Local Funding Approach

Next Steps
1
Lone Star Regional Rail – Strategic Considerations

Local Funding Approach
2
Lone Star Regional Rail Project
•
Blue Line - 118 miles of LSTAR Service;
105 miles on existing Union Pacific rail
•
Green Line - 40 miles of existing UPRR
trackage to be improved from South San
Antonio to the Seguin area as part of new
freight bypass route
•
Red Line - 80 miles of freight bypass route
is new rail to be constructed between the
Seguin area and Taylor
3
Proposed LSTAR Stations (north to south)
•
Georgetown
•
San Marcos (2)
•
Round Rock (1-3)
•
New Braunfels
•
Austin (7)
•
Schertz
•
Buda
•
San Antonio (5-8)
•
Kyle
4
LSRR Project
Local Funding / Project Status
o
City of Austin ILA - Dec. of 2013
(currently 0% / requesting 50% participation)
o
City of San Marcos ILA - Dec. of
2013 (50% participation)
o
Austin Community College Dist. ILA –
Dec. 2014 (50% participation)
o
Cities of Buda, Georgetown, Kyle,
New Braunfels, San Antonio and
Schertz in discussions for 2015
agreements
o
Freight rail bypass and passenger
rail EIS initiated; agency & public
scoping begins in Jan. 2015
5
LSTAR Service

Schertz – San Antonio Station
Locations:
•
Schertz(1)
•
San Antonio (5-8)
Schertz Station
6
LSTAR Service

Station Locations area in
Schertz
7
LSTAR Station Location Technical Advisory Committee
• Location Selection Criteria:
o Multi-modal Access
o Site Configuration
o Economic Development
o Transit Supportive Land Use
o Environmental Issues
8
Lone Star Regional Rail Project – Capital Costs
LSTAR Planning Targets
Initial
Base
Full
Psgr. Improvements
$ 700 mil
$ 840 mil
$ 1.40 bil
Freight By Pass/Relo.
$ 1.16 bil
$ 1.16 bil
$ 1.16 bil
$ 1.86 bil
$ 2.00 bil
$ 2.56 bil
Totals
 Local jurisdictions not asked to fund major capital
costs
 Capital Expenses covered over time with a
combination of:
o Federal Grants & Loans
o State Rail Relocation Funds
o UP Cost Sharing
o Public-Private Partnerships
9
Metro 1/3 O&M Allocations
Millions
LSTAR Operations and
Maintenance Costs (O&M)
Local Funding Targets
160
140
Smaller Cities
Service
120
100
•
O&M is one key to securing capital
funding
Austin Metro
Service
80
60
San Antonio
Metro Service
40
The Draft LSRD Business Plan
O&M costs split* by thirds
(after fare box & misc. revenue):
LSRD Planning Targets *
Small Cities value capture funding
Central Texas value capture funding
So. Central Texas value capture
Total
20
0
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
•
Initial (2018)
$ 10.56 mil
$ 10.56 mil
$ 10.56 mil
$ 31.68 mil
Base (2023)
$ 19.57 mil
$ 19.57 mil
$ 19.57 mil
$ 58.70 mil
Full (2028)
$ 33.78 mil
$ 33.78 mil
$ 33.78 mil
$101.33 mil
* Escalated over time at 2.5% annually; 15 year avg. of 1/3 cost is $15.16 million (2018-2032)
10
LSTAR Operations and Maintenance Costs (O&M) Local
Funding Targets
Metro 1/3 O&M Allocations
Smaller
Cities
Service
Austin Metro
Service
San Antonio
Metro
Service
Metro O&M Allocations by County
2011
2014
2017
2020
2023
2026
2029
2032
2035
2038
2041
2044
2047
2050
Guadalupe
County
Service
Comal County
Service
Hays County
Service
2050
2047
2044
2041
2038
2035
2032
2029
2026
2023
2020
2017
2014
2011
Williamson
County
Service
Travis County
Service
Bexar County
Service
11
Lone Star Regional Rail Project Local Funding Support –
Operations and Maintenance Focus
Funding Approach:
•
•
•
•
•
•
Local funding established through interlocal agreement
o Transportation Infrastructure Zone (TIZ) around each LSTAR station
o Funding approach is focused on supporting rail service O&M
Funding is from new growth
o Portion of growth revenues from within TIZ
o No impact on current City revenues
o Funding primarily from rail induced station area growth
No guarantee of funding levels
No City or County debt
No added tax or fee on station area properties
No tax increase on station area properties or City residents
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Economic Development/Community Planning Issues
• Delayed/Late Funding Community Impacts:
• Local private development decisions impacted
o Interim developments may lock-in non-transit dev.
o Interim developments may limit life style choices
o May limit revenue growth & lower affordability
• Economic development may go to other locations
• LSRD capital resources allocated first to participating communities
o Rail system extensions or additions compete against other system
investments
• Community may have capital investment and/or catch-up funding impacts
13
Economic Impact Est. & Proposed TIZ Participation
Generic Example
Est.
Normal
Growth
Base
14
Economic Impact Est. & Proposed TIZ Participation
Generic Example
Est. Rail
Influenced
Growth
• Funding Participation:
• All rail induced/related growth
Est.
Normal
Growth
• Plus, normal growth up to a total
participation of 50% of all new
growth
• Plus, addition based on same % of
sales tax growth
Base
15
Economic Impact Est. & Proposed TIZ Participation
Generic Example
TIZ Participation
Growth Only
Est. Rail
Influenced
Growth
50%
Est. Rail
Influenced
Growth
TIZ Participation
General Fund
Est.
Normal
Growth
50%
Base
16
Economic Impact Est. & Proposed TIZ Participation
Generic Example
TIZ Participation
Growth Only
Est. Rail
Influenced
Growth
Rail
Induced %
Est. Rail
Influenced
Growth
TIZ Participation
General Fund
Est.
Normal
Growth
Base
17
Economic Impact Est. & Proposed TIZ Participation
Generic Example
TIZ Participation
Growth Only
Est. Rail
Influenced
Growth
Rail
Induced %
Est. Rail
Influenced
Growth
TIZ Participation
General Fund
Normal
Growth
Base
18
LSTAR Split Service Station Concept
Split service divides operations of one station between two stations based
primarily on ridership demand
•
Buda & Kyle
San Marcos
Downtown & ACC Campus
Downtown & Centerpoint Area
•
Austin
Parmer & McNeil Junction
•
Austin
35th St. & Anderson Ln.
•
San Antonio
TBD
•
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LSTAR Local Funding Concepts
1.
2.
Transportation Infrastructure Zones (TIZ):
a.
New growth property tax from within station TIZ
•
Requesting growth participation % (greater of rail related % or 50%)
•
Add equivalent of new growth sales tax at same %
b.
In-kind contributions to reduce project costs:
•
Station ready site (public access, drainage & utilities)
•
Station maintenance and security
•
Development fee waiver
•
City sponsored zoning
•
No cost for approved use/contribution of city right of way or real
estate
c.
Other Provisions:
•
Exclude existing single family and duplex residential
•
Tax exempt parcels added when privately developed
•
Honor preexisting economic development agreements
City retains funds in special account until LSRD meets performance measures
•
If measures not met, City may dissolve TIZ and use funds
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LSTAR Local Funding Concepts
3.
Performance measures
•
Later of two years or May 1, 2017 LSRD must secure funding
agreements with key Central Texas local governments
•
Later of six years or January 1, 2020 LSRD must secure capital funding
4.
When in operation, LSRD will annually identify excess TIZ funding for return to
contributing jurisdictions
5.
Equitable funding relationship between Central Texas local governments
(i.e.: Pay for Service, Fair share, etc.)
6.
Private Landowners Options to influence station
location
•
PID or MMD for station capital or
O&M
•
Station site contribution
•
May require City assistance
21
Lone Star Regional Rail – Strategic Considerations

Next Steps
22
Project Timeline – Lone Star Regional Rail Project
Local funding is the gateway to capital funding from public and
private sources.
Local
Funding
Capital
Funding
Construction
Commissioning
Operations
Design
Rail Service Anticipated to Start in
6-10 years (2020 – 2024)
Timing
• New development influenced by rail opportunity
• Initiates value capture from land speculation, zoning and
other entitlements
23
LSRD – EIS Public Scoping & Open House Mtgs.
Scheduled Meetings
• San Antonio/Bexar County
• Austin/Travis County
• Buda/Kyle/San Marcos/Hays County
• Elgin/Bastrop County
• Georgetown/Hutto/Taylor/
Williamson County
• New Braunfels/Schertz/Comal &
Guadalupe Counties
Jan 20, 2015
Jan 21, 2015
Jan 26, 2015
Jan 27, 2015
Jan 28, 2015
Jan 29, 2015
(Seguin Coliseum, 950 S. Austin St., Seguin, TX)
•
Schertz Open House &
City Committees
TBD
24
LSTAR – Mobility/Connectivity
Commuter / Regional Rail Service
• Convenient, predictable & easy to use
• Considered a higher level of transit
• Makes drive time available for other activities
• Congestion proof option, competitive with auto commute
experience
• UP right-of-way becomes regional mobility asset
• Helps reduce growth in traffic demand
• Equals between 2-5 lanes of highway capacity in each
direction
25
Next Steps
1.
Economic Impact Study complete in
Jan.
2.
EIS & Public Meetings Participation public scoping meeting. in Jan.
3.
Station Location preference
confirmed
4.
Local funding Agreement adopted by
end of March 2015.
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