City of Schertz PresentationJoe Black – Lone Star Rail District

Joe Lessard – Knudson, LP

December 9, 2014

Local Funding Approach

Next Steps

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Lone Star Regional Rail – Strategic Considerations

Local Funding Approach

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Lone Star Regional Rail – Strategic Considerations

• 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

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Lone Star Regional Rail Project

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• Georgetown• Round Rock (1-3)• Austin (7)• Buda• Kyle

• San Marcos (2)• New Braunfels• Schertz• San Antonio (5-8)

Proposed LSTAR Stations (north to south)

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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 passengerrail EIS initiated; agency & public scoping begins in Jan. 2015

LSRR Project

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Schertz – San Antonio Station Locations:

• Schertz(1)

• San Antonio (5-8)

LSTAR Service

Schertz Station

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Station Locations area in Schertz

LSTAR Service

• Location Selection Criteria:o Multi-modal Accesso Site Configurationo Economic Developmento Transit Supportive Land Useo Environmental Issues

LSTAR Station Location Technical Advisory Committee

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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

Totals $ 1.86 bil $ 2.00 bil $ 2.56 bil

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Local jurisdictions not asked to fund major capital costs

Capital Expenses covered over time with a combination of:o Federal Grants & Loanso State Rail Relocation Fundso UP Cost Sharingo Public-Private Partnerships

Lone Star Regional Rail Project – Capital Costs

• O&M is one key to securing capitalfunding

• The Draft LSRD Business PlanO&M costs split* by thirds (after fare box & misc. revenue):

LSRD Planning Targets * Initial (2018) Base (2023) Full (2028)Small Cities value capture funding $ 10.56 mil $ 19.57 mil $ 33.78 milCentral Texas value capture funding$ 10.56 mil $ 19.57 mil $ 33.78 milSo. Central Texas value capture $ 10.56 mil $ 19.57 mil $ 33.78 mil

Total $ 31.68 mil $ 58.70 mil $101.33 mil

* Escalated over time at 2.5% annually; 15 year avg. of 1/3 cost is $15.16 million (2018-2032)

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2011

2015

2019

2023

2027

2031

2035

2039

2043

2047

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

Smaller Cities Service

Austin Metro Service

San Antonio Metro Service

Metro 1/3 O&M Alloca-tions

LSTAR Operations and Maintenance Costs (O&M)Local Funding Targets

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2011

2015

2019

2023

2027

2031

2035

2039

2043

2047

Smaller Cities Service

Austin Metro Service

San Antonio Metro Ser-vice

Metro 1/3 O&M Allocations

2011

2014

2017

2020

2023

2026

2029

2032

2035

2038

2041

2044

2047

2050

Guadalupe County Service

Comal County Service

Hays County Service

Williamson County Service

Travis County Service

Bexar County Service

Metro O&M Allocations by County

LSTAR Operations and Maintenance Costs (O&M) Local Funding Targets

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• Local funding established through interlocal agreemento Transportation Infrastructure Zone (TIZ) around each LSTAR

stationo Funding approach is focused on supporting rail service O&M

• Funding is from new growtho Portion of growth revenues from within TIZo No impact on current City revenueso 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

Funding Approach:

Lone Star Regional Rail Project Local Funding Support –Operations and Maintenance Focus

• Delayed/Late Funding Community Impacts:

• Local private development decisions impactedo 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

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Economic Development/Community Planning Issues

Generic Example

Economic Impact Est. & Proposed TIZ Participation

Base

Est. Normal Growth

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Generic Example

Economic Impact Est. & Proposed TIZ Participation

Est. Rail Influence

dGrowth

Base

Est. Normal Growth

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• Funding Participation:

• All rail induced/related growth

• Plus, normal growth up to a total participation of 50% of all new growth

• Plus, addition based on same % of sales tax growth

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Generic Example

Est. Rail Influence

dGrowth

Base

Est. Normal Growth

50%

Growth Only

50%

Est. Rail Influence

dGrowth

General Fund

TIZ Participation

TIZ Participation

Economic Impact Est. & Proposed TIZ Participation

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Generic Example

Est. Rail Influence

dGrowth

Base

Est. Normal Growth

Growth Only

Rail Induced %

Est. Rail Influence

dGrowth

General Fund

TIZ Participation

TIZ Participation

Economic Impact Est. & Proposed TIZ Participation

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Generic Example

Est. Rail Influence

dGrowth

Base

Normal Growth

Growth Only

Rail Induced %

Est. Rail Influence

dGrowth

General Fund

TIZ Participation

TIZ Participation

Economic Impact Est. & Proposed TIZ Participation

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Location Potential Split Service

• Buda & Kyle Downtown & ACC Campus• San Marcos Downtown & Centerpoint

Area

• Austin Parmer & McNeil Junction

• Austin 35th St. & Anderson Ln.

• San Antonio TBD

LSTAR Split Service Station ConceptSplit service divides operations of one station between two stations based primarily on ridership demand

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1. 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

2. City retains funds in special account until LSRD meets performance measures

• If measures not met, City may dissolve TIZ and use funds

LSTAR Local Funding Concepts

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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 orO&M

• Station site contribution

• May require City assistance

LSTAR Local Funding Concepts

Next Steps

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Lone Star Regional Rail – Strategic Considerations

Capital Funding

Design

Construction Commissioning Operations

Local funding is the gateway to capital funding from public and private sources.

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Local Funding

Timing• New development influenced by rail opportunity• Initiates value capture from land speculation,

zoning and other entitlements

Project Timeline – Lone Star Regional Rail Project

Rail Service Anticipated to Start in 6-10 years (2020 – 2024)

Scheduled Meetings• San Antonio/Bexar County Jan 20, 2015• Austin/Travis County Jan 21, 2015• Buda/Kyle/San Marcos/Hays County Jan 26, 2015• Elgin/Bastrop County Jan 27, 2015• Georgetown/Hutto/Taylor/ Jan 28, 2015Williamson County

• New Braunfels/Schertz/Comal & Jan 29, 2015Guadalupe Counties

(Seguin Coliseum, 950 S. Austin St., Seguin, TX)

• Schertz Open House & TBDCity Committees

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LSRD – EIS Public Scoping & Open House Mtgs.

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

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LSTAR – Mobility/Connectivity

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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.

Next Steps