Five key takeaways from Charlotte’s newest transit plan

The chosen Silver Line route is shown in green, at right, along 11th Street. The blue line shows where the Trade Street tunnel would have run. Other options not chosen are a surface route along Trade Street (purple) and a route along the existing Blue Line.

No tunnel uptown. A light rail line crossing the Catawba River into Belmont. Finally light rail to Pineville?

When the Charlotte Area Transit System’s policy body on Wednesday unanimously adopted an update to its 2030 Transit System Plan, those optimistic visions became part of the official CATS planning process.

Note to readers: CATS doesn’t currently have money to build any of those things, estimated to cost $6 billion or more. Just so you know.

But here are some key takeaways from what the Metropolitan Transit Commission adopted.
1. No tunnel uptown. CATS hired consultants WSP (the former Parsons Brinckerhoff) to study a tricky issue – how would the proposed Silver Line (formerly known as the Southeast Corridor), get across all the freeways encircling uptown, then through uptown and head west on its route to Charlotte Douglas International Airport and over the Catawba River?

CATS’ existing light rail line, the Blue Line and Blue Line Extension, travel through uptown on a pre-existing rail corridor. The proposed Silver Line would not. It’s planned to run alongside Independence Boulevard and then head west, thereby adding the former West Corridor to the Silver Line. Any way you look at it, getting that sucker through uptown will mean complicated engineering and high costs.

One option WSP proposed was to tunnel under Trade Street to the existing Charlotte Transportation Center, a hub for most bus routes as well as a Blue Line light rail stop, and up West Trade Street to the not-yet-built Gateway Station, which would also hold a new Amtrak station. Gateway Station is also envisioned as the terminus for the long-proposed-but-still-distant Red Line commuter rail to north Mecklenburg. More about that later.

The MTC opted not for the tunnel but for a route running the Silver Line above ground, beside 11th Street, then alongside the existing Amtrak route beside Elmwood Cemetery, over to Gateway Station and then heading west to the airport. It’s less expensive to build, although the tunnel route would have cost less to operate, over time, the consultants said, and would have shortened Silver Line travel time considerably. (Update as of March 8: Brock LaForty, the Carolinas area manager for WSP, says the consultants’ analysis found the tunnel route would save two minutes per trip, a difference
LaForty called marginal, and said WSP had not analyzed whether the tunnel would cost less to operate over time. The statements about travel time and lower operating costs were the personal opinions of Ron Tober, a former CATS CEO who was working for WSP as a consultant on the project until this month.)

2. At long last, Pineville welcomes light rail. Ever wondered why the Lynx Blue Line ends where it does, just outside the south Mecklenburg municipality of Pineville? The stated reason from Pineville officials when the Blue Line was planned almost two decades ago was that the town didn’t want the high-density, transit-oriented development that would, rail boosters proclaimed, spring up all along the line. So the Blue Line ends at I-485, just outside Pineville. 

“Saved us $30 million,” recalled Ron Tober, who was CATS CEO at the time and who happened to be sitting next to me Wednesday night.

For the record, to date no high-density, transit-oriented development has yet come anywhere near Pineville.

And on Oct. 9 of last year, the Town of Pineville adopted a resolution to support the prospect of CATS someday extending its light rail line to Pineville’s Carolina Place Mall and then to Ballantyne in far south Charlotte. “Pineville stakeholders now recognizes (sic) the need to extend the line into Pineville, the Ballantyne area and beyond to … improve the accessibility of rapid transit and provide a faster link to and from other parts of the Greater Charlotte area …” the resolution states.

3. Finally, light rail to the airport, and into Gaston County. Someday. The proposed transit corridor formerly known as the West Corridor, and (sort of) planned to be a streetcar is now officially part of the proposed Silver Line. It would be light rail along Wilkinson Boulevard past the airport, across the Catawba River and end in the Gaston County town of Belmont. This would be CATS’ first light rail venture across county lines. Further, an ongoing Regional Transit Study would evaluate light rail to downtown Gastonia.

Gastonia Mayor Walker Reid III on Wednesday presented a city proclamation supporting the idea of light rail to Gastonia. Politically, Gaston County has been deep red, with Republican county commissioners less than a decade ago complaining that greenways were, in essence, creeping socialism. So this is progress of a sort.

The West Corridor, now renamed part of the Silver Line, would run along Wilkinson Boulevard (the route shown in purple) and cross the Catawba River into Belmont in Gaston County.

4. Still no commuter rail to north Mecklenburg, for now.  The updated plan calls for short-, medium- and long-term options heading north. Short-term would be enhanced express-lane bus service along I-77 to and from the north Mecklenburg towns, using the soon-to-open I-77 toll lanes. Medium term would be bus rapid transit from Gateway Station to Mooresville in southern Iredell County. This service would be all-day, including nights and weekends. Bus rapid transit (a.k.a. BRT) uses dedicated lanes so it’s faster than regular bus service.

Long-term, the plan would be to keep talking with Norfolk Southern about using its rarely used rail right-of-way from uptown Charlotte to Mooresville for rail transit – maybe commuter rail as was originally proposed.

5. Even some Union County enthusiasm. If Gaston County is red, then Union County is, if such a thing is possible, even deeper red. Nevertheless, the town of Stallings passed a resolution asking CATS to at least study the possibility of extending the Silver Line from Matthews into Union County and to a potential terminus in Stallings. So CATS will study that.

Remember, though, there’s no money for CATS to build any new light rail. And to date not one of the surrounding counties has proposed taxing its own residents, as Mecklenburg does with its half-cent sales tax for transit, to help build out the transit system.

Read more details here: “Charlotte unveils new transit options.”

Commuter rail to Gaston and Union counties?

Here’s an interesting snippet from deep inside a report to a Charlotte City Council committee. It suggests that some of the money from a proposed special tax on property along the proposed Red Line commuter rail would be set aside to help pay for commuter rail to Union and Gaston counties.

This is intriguing, but extremely preliminary.

The mention is in a memo emailed to council members of the Transportation and Planning Committee in advance of the panel’s Feb. 23 meeting (noon-1:30 p.m. in the city-county government center, room 280); the documents haven’t been posted online yet.

The Red Line proposal is complex, but in a nutshell it proposes setting up a special tax district near the would-be commuter rail line from uptown Charlotte to north of Davidson. Whether it would extend into Iredell County remains an open question; Iredell County commissioners have been relentlessly negative so far. Here’s a link to a slide-show presentation the city council committee heard last month. The idea is to upgrade the not-well-used existing Norfolk Southern tracks for both commuter rail and more freight traffic. You’ve heard of Transit-Oriented Development? The idea is to promote Freight-Oriented Development, luring industries and jobs in some spots, as well as mixed-use residential and retail development in other spots.

The special tax district flanking the rail line would assess 75 cents per $100 of property value on income-producing property, that is, not on single-family residential property. For most of the special tax district, 75 percent of the revenue would go to pay for building and operating the Red Line, with 25 percent going to the local municipality.

BUT, the Friday report emailed to the committee says, “At Charlotte Gateway Station, the proposal would:
• Direct 25% of the tax increment capture proceeds to the Red Line.
• Direct 75% of the tax increment capture to a reserve fund for future commuter rail projects to Union and Gaston Counties
The proposal presumes the future commuter rail projects to Union and Gaston Counties would terminate at Charlotte Gateway Station.”
The Gateway Station is the long-proposed new Amtrak station on West Trade Street, which would also be the end point of the commuter rail line. Some people, notably local planner and architect Michael Gallis, have criticized the idea of having two different rail stations, one at Gateway and the other, for the Blue Line light rail, six or seven blocks away at the Transportation Center. The Charlotte Area Transit System proposes running shuttles between the two stations.
But commuter rail to Gaston County? If you’re thinking that’s more pie-in-the-sky than anything you’ve heard recently, then consider this: The N.C. Department of Transportation has bought several chunks of the old Piedmont and Northern Railroad right-of-way that runs from uptown Charlotte through the Wesley Heights neighborhood, crosses Tuckaseegee Road, crosses the Catawba River near N.C. 27 and heads into Mount Holly. CSX owns much of the line in Mecklenburg County, but the state owns enough of the Gaston County sections that it is introducing freight traffic there. Hmmm. The old P&N was an electrified passenger rail line built and operated between Charlotte and Gastonia by a precursor of Duke Energy. When passenger service stopped it became a freight line.
Commuter rail to Union County, though, might be in that pie-in-sky category. 

New transit rules from the feds, part II

John Muth, chief development officer for the Charlotte Area Transit System confirms that yes, as I speculated in “New transit rules from the feds” yesterday, the rules changes being proposed by the Federal Transit Administration do “cover how fixed guideway projects such as commuter rail, light rail, and bus rapid transit are evaluated for possible federal funding.”  He said in an email that he hadn’t yet reviewed the notice of proposed rule-making but will do so.

“We will be using most of the time between now and the March 26th deadline to review the guidance, compare notes with others in the industry, and prepare our comments,” Muth reports.
The latest news on the Red Line proposal is that the consultants are saying the letter from Norfolk Southern railway is not the final word on the project. Here’s a report from DavidsonNews.net.
Interesting tidbit inside that last link: Note that on Feb. 8, Randall O’Toole from the conservative/libertarian Cato Institute is giving a presentation and analysis of the Red Line plan at 9 a.m. at Cornelius Town Hall. That’s, er, interesting.

New transit rules from the feds

We’ve been waiting months for the Federal Transit Administration to pop out with some supposed new guidelines for how the FTA will evaluate its transit projects. Is this it? “FTA proposes New Starts streamline,” from the U.S. Department of Transportation’s official blog, Fast Lane, says proposed new rules “will speed up the New Starts process and focus more on transit options that fit local needs.”

Here’s the press release.

I’m checking with CATS folks to see if the proposed changes might, for instance, help the proposed Red Line commuter rail to north Mecklenburg (and maybe Iredell but that’s iffy), compete for federal funds. Currently it does not. Commuter rail projects, in general, have not met the FTA’s standards for cost-effectiveness. That’s the big reason CATS and the N.C. Department of Transportation and the Red Line task force have created the idea of pairing commuter rail with freight rail-oriented development. 

And by the way, the fact that Norfolk Southern says freight and commuter rail are incompatible may not mean the railroad is not willing to partner. Or it may.  It’s worth remembering that the railroads have a reputation for driving a very hard bargain. Or being great negotiators, if you want to put it another way.
 

The huge significance of the Red Line proposal

MOORESVILLE – “Revolutionary is not too strong a word for plans being laid out today to a room full of government officials, consultants and interested laypeople. We’re at a “summit” to discuss ideas for reviving a long-stalled proposal to build a commuter rail line to Iredell County.

For starters, the plan involves regional cooperation. Second, the current public money crunch has forced a creative new way of thinking about transportation financing.

Even for a region that’s had plenty of regional “discussions” for decades, what’s being proposed is a major leap forward for working across county boundaries. The complicated proposal depends, in part, on seven governmental bodies agreeing to form a new legal entity, called a joint powers authority. Members would be Mecklenburg and Iredell counties, and Charlotte, Huntersville, Cornelius, Davidson and Mooresville.(The JPA wouldn’t have taxing authority.)

Not since the great Mecklenburg annexation/spheres of influence agreements of the 1980s and the formation of the Mecklenburg-only Metropolitan Transit Commission in the 1990s have so many local governments been asked to come to a formal, legal agreement of this sort. And this time the agreement must cross county lines. That’s a rare proposition around here, where crossing the county line can put you into a place with an entirely different political culture, and where most of the counties outside Mecklenburg harbor, if not fear, then at least wariness of Charlotte’s behemoth footprint.

But if there’s to be any hope of prudently guiding this huge and sprawling metro region away from financially unsupportable growth, it’s going to have to come with a large dose of inter-county cooperation. The choices at hand are these: Cooperate, and continue to progress? Or maintain geographic silos and find the region bypassed by other, more cooperative metro regions?

Viewed that way, what happens to the Red Line proposal could well be a harbinger of the region’s future.

The other reason today’s summit and the Red Line plan carries major significance is this: For the first time since the 1998 transit sales tax campaign, the MTC and member governments are putting on their thinking caps about financing.

Here’s a link to the slide show presentation Tuesday.

Until now, most people here pretty much figured transportation money – including roads, not just transit – would eternally flow down from the feds and the state. For transit, you’d also add in the local revenue stream from the half-cent sales tax, collected only in Mecklenburg. (Individual cities, of course, also use local tax money for local street projects that aren’t part of the vast state road network.)

Even before the 2008 financial crash, it was starting to look as if the MTC couldn’t build out its five-corridor plan in 25 years without more money than it could expect from the half-cent sales tax and expected state and federal funds. Since then, the recession and continuing high unemployment have battered the sales tax revenue. Until a year ago the MTC appeared to believe it had few options beyond delaying transit construction for decades, pushing for a politically unlikely sales tax increase or passively hoping the sales tax revived.

Finally, with help from the N.C. Department of Transportation and some savvy consultants, it has gotten smarter and more creative about finding money. They have looked around the country at other metro areas that are building transit systems. Two important words arose: Value capture.

That means recognizing that building infrastructure such as highways and transit lines makes nearby property more valuable.  (It’s why land speculators like to buy property 20 years before the state highway goes through.) Instead of letting public spending enrich private landowners with little monetary benefit to the public, why not “capture” some of that increased value for public purposes?

A value-capture set-up would use some of the new, higher tax revenues from the now-more-valuable property to pay off bonds sold to build those same infrastructure improvements. The Washington Metro, the Dallas Area Rapid Transit System and the Portland, Ore., streetcar system have all used value capture in their construction.

The Red Line plan proposes two value-capture techniques. One is tax-increment financing (TIF) – using some of the expected higher property taxes to pay off bonds.  Another is a special assessment district, formed when a majority of the income-producing property owners (i.e. not owner-occupied residential homes) along the Red Line rail line agree to an extra property tax (.75 per $100 in assessed property value is what’s been proposed).  Most of that tax revenue would help fund construction, but 25 percent would go to the general fund of the local governments.

The proposals laid out today must undergo weeks of examination and discussion among elected officials before any decisions. And nothing is certain. For instance, Iredell County is a key player, yet not one Iredell County commissioner was at today’s meeting in Mooresville.  All other affected elected bodies had representatives in the room.  What does that mean for the proposal’s chances?

But even if the proposal ultimately fails, the precedents it’s setting, in pushing for smarter transit financing and in pushing for cross-county cooperation, will have far-reaching resonance.

Charlotte transit plan makeover goes beyond cosmetic surgery

The stalled-for-years proposal to build a commuter rail line from downtown Charlotte north to the booming suburban towns of Huntersville, Cornelius, Davidson and Mooresville is getting a significant makeover, not just cosmetic surgery. The state and local officials involved are looking to find funding with freight-oriented development, a sort of cousin to the more widely recognized transit-oriented development (a.k.a. TOD).

The project has been stalled because it hasn’t qualified for federal funding, which typically pays half the cost of a transit line. After years of patiently sitting by, towns in northern Mecklenburg County and Mooresville in Iredell County formed the Lake Norman Transportation Commission, which succeeded in kick-starting a fresh look at the so-called Red Line (which honors the Davidson College school color).

A Wednesday meeting of the Metropolitan Transit Commission heard a detailed presentation of the financing plans. I couldn’t make it, but here are several looks at the presentation: The Charlotte Business Journal’s Erik Spanberg “Red Line rolls toward 2012 vote”  and DavidsonNews.net/CorneliusNews.net’s Christina Ritchie Rogers’ “Homeowners won’t see tax hike in Red Line plans, consultants say.”

Here’s a link to the various presentations and handouts from the MTC meeting.

Nothing’s been decided yet, of course. The Lake Norman Transportation Commission will hold a four-hour summit on the proposal Dec. 13 in Mooresville (10 a.m.-2 p.m. at the Charles Mack Citizens Center, 215 N. Main St.).

Then the different governments, who’d have to agree to create a joint powers authority, must study the proposal and decide whether to opt in. From my observations, I’d predict Charlotte, Mecklenburg County and the Mecklenburg towns are on board. The trickier discussions will be in Mooresville and Iredell County. Although many in Mooresville have favored the transit idea, Iredell County commissioners have traditionally been wary of anything that might be viewed as a tax increase.

This proposal would create a sort of self-imposed tax assessment on owners of income-producing property (that is, not residential property) along the line. A part of the tax revenue from the new development would be used to help pay the costs of the rail construction. A portion of the new tax revenue generated from rail-related development would go to local general funds. This proposal would create a sort of self-imposed tax increase on property owners along the line, although it would send a proportion of those extra revenues into local general funds. (2:50 p.m.: Wording refinement on details of the proposal.)

Adding the freight proposal, which takes advantage of a national boom in freight rail fed by rising gas prices rise and freeway congestion, makes the Red Line plan more clearly an economic development maneuver. Luring freight-oriented industry might be a strategy Iredell leaders can be comfortable with, as opposed to simply building a commuter rail line that will draw more Charlotte-bound workers, which will bring homes and children needing county-funded services.

Like the $5 million regional HUD planning grant, the Red Line joint powers authority proposal is one more example of the need to treat the Charlotte region as more than a disconnected set of individual governments, but as, well, a region.

Carroll Gray to leave N.Meck transportation group

DavidsonNews.net tells us former Charlotte Chamber CEO Carroll Gray has told the Lake Norman Transportation Commission he’ll leave the commission’s executive director job at the end of this year. Gray, 71, of Cornelius helped launch and lead the regional lobbying group over the past three years. He told DavidsonNews.net he has mixed emotions about the decision, “but I think it’s time to move on.”
The LNTC has been effective in getting the long-planned and long-sidetracked proposal for commuter rail service from uptown Charlotte to Davidson (and possibly Mooresville) back into the mix for the Metropolitan Transit Commission, the group that oversees the Charlotte Area Transit System.

See my earlier posts on changes afoot in the strategy for funding the Red Line:
“Charlotte transit plans due for a makeover?”
and
“New strategy for transit to North Meck”

Charlotte’s transit plans due for a make-over?

It appears some basic assumptions about Charlotte’s transit lines may be about to change.

One: The North Corridor transit line (formerly the Purple Line but now the Red Line) will be commuter rail on a little-used Norfolk Southern rail right-of-way leading from uptown to Mooresville in Iredell County.

Two: The Southeast Corridor (a.k.a. the Silver Line) will run down the center of Independence Boulevard from uptown to the Levine Campus of Central Piedmont Community College in Matthews. It’s going to be bus rapid transit. Or maybe rail. In 2006 the Metropolitan Transit Commission agreed that BRT was the preferred alternative but it would wait at least five years to see if light rail made more sense by then.

But the governing body for transit in Mecklenburg County, the Metropolitan Transit Commission, heard two reports Wednesday night that contemplate changing both those assumptions. (My posting on the Red Line proposal. And my posting on the Silver Line proposal.) The MTC hasn’t voted yet on either, but the discussion and questions didn’t point to huge disagreements – at least not openly.

The problems, of course, stem from the MTC’s diminished expectations for money. It can’t afford to build and operate all five transit lines first envisioned in the mid-1990s.

The problem is especially acute for the Red Line, which has beaucoup ardent supporters in the north Mecklenburg towns of Huntersville, Cornelius and Davidson, who point out that the line is pretty much shovel-ready. Except for that pesky money thing. The new idea is borne of a strong push from the North Meck towns, who pooled their money and created the Lake Norman Transportation Commission, with former Charlotte Chamber CEO Carroll Gray as director. They’ve been strategically pushing political buttons and have succeeded in getting the attention of the N.C. Department of Transportation, among others.

Basically, they’re looking for a strategy that will help find funding to make up for the lack of federal funding, which originally had been expected to pay 25 percent of the costs.

The new strategy: Position the rail line as “economic development,” not just “carrying passengers.” Be open to partnering with freight operations, which opens up new potential lending and other strategies. It’s not “commuter rail,” per se, but “rail.”  You’ve heard of TOD – transit-oriented development? Wednesday night there was talk of FOD – freight-oriented development.

For the Silver Line, the problem is also funding. This Southeast Corridor has been contentious. The vocal and organized neighborhood groups in East Charlotte have not been keen on the concept of any form of bus transit. Bus routes haven’t been shown to perk up development the way rail does, although BRT supporters note that a fixed bus way is different from a changeable bus route on city streets. Hence the maybe-bus-maybe-rail position of the MTC.

But, as I and others have written, expecting any form of transit along Independence Boulevard to spark much pedestrian-friendly, close-knit transit-oriented development means closing your eyes to the reality of Independence. It’s a freeway that barrels through miles of highway-oriented, suburban strip development.  Unless someone plans to bulldoze miles of buildings and rebuild from the dirt up – which no one does, due to expense and the sheer impracticality of that notion – it’s not going to be in the same universe as “walkable” for many generations to come.

A group from the nonprofit Urban Land Institute studied Indy Boulevard last year and recommended scrapping, for good, the idea of light rail down its median.  You wouldn’t get much development anyway, the ULI panel said.  Instead, focus on the proposed Central Avenue streetcar and add a streetcar down Monroe Road as well. Since that proposal, a task force has been meeting and it’s recommending similarly.  It suggests being a tad vaguer about that Monroe Road streetcar in case some form of light rail down the CSX rail line to Matthews emerges as a possibility.

But it is suggesting the MTC “rescind the provision that reserves space in the center of the [Independence] highway.” Use that space, now a high-occupancy-vehicle lane used only by buses, for a high-occupancy-toll lane to be used by buses and motorists willing to pay a toll to escape the regular Indy Boulevard congestion.

It was inevitable, of course, that the original five-corridor plans for Charlotte’s transit system would evolve. In the next few months, look for some significant evolutions to take place.

New strategy for transit to North Meck

The Charlotte transit project getting the most attention the past four years has been extending the Lynx Blue Line from uptown to UNC Charlotte. But in recent months plenty of behind-the-curtains work has been focusing on the planned commuter rail line to north Mecklenburg. Tonight, the transit governing body heard about a significant shift in strategy for the Red Line.  The idea is to change the focus from “commuter rail” to “rail.”

Charlotte Area Transit System rendering of Red Line car

Quick background: The proposed commuter rail is a different form of transit from light rail. In many ways it’s more like intercity passenger rail than the electric-overhead-wire, plenty-of-stops Lynx. The rules for federal money for commuter rail and the cost-benefit analyses the feds require are structured so as to make the proposed 25-mile Red Line from uptown to Mooresville ineligible for federal money. That left a huge gap – 50 percent of the total – in the proposed funding plans, estimated at $373 million total for both phases of the project.

In addition, the countywide half-cent sales tax revenues tanked in 2008 and haven’t revived to the earlier estimated levels.  The Charlotte Area Transit System has been stumped over the problem of finding local money for the Red Line to cover the gap left by the lack of federal money, not to mention how to operate the existing bus system and Lynx, plus pay the local share for the $900-million-some Lynx Blue Line Extension.

Back to tonight’s meeting of the Metropolitan Transit Commission, which oversees CATS: The Red Line Task Force subcommittee that’s been meeting for about a year has agreed on recommending a new approach. Led by Paul Morris – formerly a consultant and starting this month,  the N.C. Department of Transportation’s deputy secretary for transit – the group wants to pitch a strategy Morris says will be nationally unique.  Use the rail line as an economic development strategy for both passenger rail and freight rail.  And form a formal partnership among Huntersville, Cornelius and Davidson so they can share tax revenues from new development, via a Joint Powers Authority.

But where would the money come from? Morris said the JPA would have no taxing authority. Whether it could issue bonds might depend on how any financing package is structured.  The Red Line Task Force is, for now, looking at four potential “value capture” ideas (warning, tax-policy-geekdom coming up): tax increment financing, special assessment districts, partnering agreements with private developers, or jointly developing property with a private owner. Which of those ideas, if any, would come to fruition can’t be known at the moment.

For most of the past 15 years, the strategic thinking about the north corridor’s Red Line was to use it to shape residential development. The area was booming, and the three towns adopted zoning ordinances to encourage transit-oriented development at the proposed station areas. The fact that the rail line’s owner, Norfolk Southern, was still running freight trains on it was generally mentioned only in passing.

Now, residential and commercial development are, if not dead, certainly no longer booming. So the strategy being proposed is to use that freight line as a selling tool for industrial development while using the prospect of passenger rail on the same right of way as a selling point for residential and retail development.

Will it fly with the rest of the MTC?  Tonight’s discussion might make that more clear. No MTC vote comes until next month.

Here’s a link to the PowerPoint presentation Morris gave to the Red Line Task Force in August.