Metro Magazine, April 2019

20 METRO MAGAZINE COM APRIL 2019 RAIL STREETCARS Improved market and development conditions Real estate that once sold for 40 a square foot and sat vacant and underutilized is now selling for 100 a square foot or more and being productively converted This growth in value also is leading to higher density developments and more viable economic conditions for developments and buildings overall Promoting a fast growing urban core Sales taxes within the streetcars downtown Transportation Development District a revenue generation mechanism have increased by 65 compared with approximately 16 growth citywide over the same period Downtown is growing at a faster rate than the city as a whole and proving to be a strong economic engine SUCCESSFUL SYSTEM LAUNCH The following are other strategies that have positioned our system for success Partnerships The Kansas City Streetcar Authority is a not for profit organization separate from the city We manage operate and maintain the streetcar support all marketing efforts and community engagement and represent the rate payers in the downtown TDD through our board of directors Our staff of three couldnt possibility accomplish those tasks without an active and supportive board and truly dedicated partners including the City of Kansas City the Kansas City Area Transportation Authority and others Revamped zoning and development policies The City of Kansas City in coordination with downtown neighborhoods and corridor stakeholders proactively conducted an aggressive land use policy evaluation and made significant changes to position the corridor to maximize development opportunities by eliminating parking requirements up zoning adjacent property and assessing parking lots Innovative funding mechanism We believed removing fares would increase use of the system Riders would in turn spend more money downtown If that proved to be true which it has the streetcar should be able to benefit from the economic activity it helped generate The end result is a win win win for riders downtown businesses and revenue growth to more than cover streetcar operations and maintenance expenses Revenues generated by a one cent sales tax and a special assessment on real estate within the TDDs boundaries cover 100 of the debt service payments on the capital bonds issued to build the 102 million streetcar system Revenues also pay for the systems 5 million annual operations and maintenance costs Additionally weve used the revenue to pad operating reserves and purchase two more streetcars increasing the fleet to six vehicles Our streetcar line was intended to be a long term investment shaping a new and better downtown over decades However thanks to great partnerships coordinated land use policies and innovative local funding models positive outcomes have accelerated Tom Gerend is executive director of the Kansas City Streetcar Authority