Why do we need a streetcar in South Lake Union and Denny Triangle? There is a lot of competition for transportation dollars in our region. Why is the streetcar a priority? Why can’t more buses be added to serve the South Lake Union neighborhood? What route will the streetcar travel? How much will the streetcar cost to build? How will the streetcar be funded? What is a Local Improvement District? How much will my assessment be? What is a “Special Benefits Study”? How do Special Benefits differ from General Benefits? What are some of the key factors considered in the “Before” and “After” valuations of the properties? What is “Highest and Best Use?” Why is it significant? What are the steps to form the Streetcar LID? Will I have an opportunity to ask questions about my assessment? When will I have to pay for the LID? Where can I get more information on the LID? What is the LID timeline? How much will it cost to operate the streetcar? What are the ridership projections for the streetcar? Who will operate the streetcar? How much will it cost to ride the streetcar? How will the streetcar impact neighborhood parking and drive lanes? How long will it take to construct the streetcar? How will construction impact existing businesses? What is the timeline for the project? Q. Why do we need a streetcar in South Lake Union and Denny Triangle? The streetcar will provide an important and easy to build connection to regional transit systems and will allow the redevelopment of South Lake Union and Denny Triangle as pedestrian-focused neighborhoods. The streetcar will connect jobs and housing to people; and people to regional transit. Q. There is a lot of competition for transportation dollars in our region. Why is the streetcar a priority? The South Lake Union neighborhood is currently underserved with transportation solutions. The streetcar will increase transportation options in the four neighborhoods it will serve and it can be built on a fast, predicable timeline. From a financial perspective, the streetcar is the only transportation system being considered that proposes public/private financing through the formation of a Local Improvement District. Approximately half of the cost to build the streetcar would be funded by the property owners themselves through the proposed LID. This is particularly compelling at a time when transportation dollars are scarce. The streetcar also connects downtown, Cascade, South Lake Union and Denny Triangle residents and workers to important regional transit systems such as the bus tunnel, the monorail and light rail. Regional transportation systems are much more effective when people can easily connect to them. Q. Why can’t more buses be added to serve the South Lake Union neighborhood? One of the most compelling reasons to build a streetcar in South Lake Union rather than add more buses is because streetcars have been proven to attract economic development and revitalization in neighborhoods. Buses are doing a good job moving people through neighborhoods where development has already happened. The streetcar can be a tool to help the development occur. For example, Portland benefited from a billion dollars worth of private investment along its streetcar route in the Pearl District. In fact, the original route through the Pearl District has been so successful that the city is planning to build two extensions of the line. Representatives from 48 cities across the nation have visited Portland in hopes of replicating the success of that streetcar in their own cities The certainty, frequency and ease of streetcars make them very appealing to transit riders. Streetcars run at the street grade level so boarding is very easy—pedestrians and wheelchair passengers are able to walk or roll right on without navigating steps. The pedestrian-scale cars, large windows and quiet ride of the streetcar creates a wonderful neighborhood atmosphere. And while adding bus service may be less expensive than building a streetcar, bus service is not inexpensive. Costs include capital costs such as overhead wires for electric buses, pavement upgrades needed to support the added weight of buses, and new coaches, as well as operating costs. Metro cannot currently add more bus service in South Lake Union without taking service away from other neighborhoods. Q. What route will the streetcar travel? The streetcar will begin at the Westlake Center transit hub (with easy connections to the transit tunnel and future Monorail), travel north along Westlake Avenue to Thomas Street, travel east on Thomas to Terry Avenue, head north on Terry Avenue to Valley Street at the new South Lake Union Park. It will head east on Valley Street to Yale Street to the central campus of Fred Hutchinson Cancer Research Center, reverse direction and proceed south on Westlake Avenue back to Westlake Center. Q. How much will the streetcar cost to build? The streetcar is estimated to cost $47.5 million. The budget includes costs for construction of the 2.6-mile line, a maintenance facility, streetcar vehicles, utility relocations, design and environmental work, and a contingency fund. Q. How will the streetcar be funded? Just as in Portland, Seattle is proposing to finance a significant portion of the construction costs of the South Lake Union streetcar line through the formation of a Local Improvement District (LID). This is a mechanism through which the adjacent property owners, whose property would appreciate most dramatically with the construction of the line, would each contribute proportionally to the capital costs. The balance of the project will be funded through: $12.0 million in state and Federal grants $2.5 development rights above maintenance base $6.1 million - pending grants Up to $5.4 million from the sale of city-owned property sales Q. What is a Local Improvement District? A Local Improvement District is a funding mechanism provided in State law that allows property owners to pay for a portion of a capital infrastructure project that will benefit their property. Under state law, the assessment to the property owner for the project cannot exceed the “special benefits” that the property owner receives due to the improvement. Q. How much will my assessment be? The assessment for each parcel is determined by 1) the special benefits that the parcel receives due to the improvement relative to the total special benefits and 2) the amount of the project that the LID pays for. The special benefits are determined through an appraisal process called a “Special Benefits Study.” Q. What is a “Special Benefits Study”? A Special Benefits Study is an analysis that measures directly the special benefits, or the increase in value, experienced by various parcels as a result of a public improvement project. The market values of properties “before” and “after” the LID project is completed are determined, and the difference is the special benefits. Q. How do Special Benefits differ from General Benefits? Special benefits are a specific, measurable increase in the value of properties that can be attributed to the LID project and that are in excess of any enhancement to the general area, which benefits the public at large, i.e. general benefits. Q. What are some of the key factors considered in the “Before” and “After” valuations of the properties? Location, access, utilities, zoning, physical characteristics, including existing improvements, and development potential of each property are considered, as well as the project improvements. Market values before and after the LID project are analyzed on the basis of land sales, improved property sales, and rent studies. The highest and best use of each property is determined as part of the valuations. Q. What is “Highest and Best Use?” Why is it significant? Highest and best use of a property is the use which results in the highest current value. The analysis considers reasonably probable and legal uses, physically possible, and financially feasible uses. The values of a property “as if vacant land” and “as improved” are part of the highest and best use analysis. Q. What are the steps to form the Streetcar LID? Calculation of the benefit to surrounding property owners and preparation of a map of the proposed district Market analyses are conducted to evaluate the anticipated level of private property value increase as a result of the improvement. A Map showing the proposed district boundaries is discussed with property owners and community members and is revised as necessary. Preparation of preliminary assessment roll Preliminary assessment is the distribution of LID costs among property owners in the district in proportion to the estimated special benefits. This includes factors such as proximity to the improvement. City Council adopts a resolution declaring its intent to form an LID for the streetcar improvement and sets a date for a public hearing on formation of the District. Notice of hearing will be mailed to the owners within the proposed District and published at least 15 days before the hearing date. The hearing allows property owners to express their views on whether or not the District should be formed. City Council decision to create the District is expressed by passage of an ordinance establishing the district. The ordinance creating the LID is published in the official newspaper (Daily Journal of Commerce). Within 15 days of creation of the LID, the preliminary assessment roll is filed with the Finance Department. 30-day protest period starts with passage of ordinance establishing district. If property owners representing 60% of the dollar amount of the preliminary LID assessment roll submit written protests during this period, the LID may not be formed. 30-day appeal period begins after protest period Property owners have the right to challenge the formation of an LID in Superior Court. Establishment of the final assessment roll specifying the assessment to be paid by each property owner. A final assessment roll will be prepared in early 2006. This final assessment role will take into account adjustments made through the protest period. Assessment protest Following the preparation and publication of the final assessment roll, the Council will set a date for hearing objections from property owners who believe that their assessment exceeds the actual benefit they will derive from the project. Assessments are levied The LID assessment is a one-time assessment. Assessments may be paid in full, or paid annually over the term of the bonds (likely to be 18 years), with interest. Project is built Q. Will I have an opportunity to ask questions about my assessment? There are several opportunities to ask questions about your property assessment. Use the comment form at the website: http://www.ci.seattle.wa.us/transportation/streetcarLID.htm. Come to the property owner open house on Thursday, July 28th, from 3:00 p.m. to 7:00 p.m. at the South Lake Union Armory Building, 860 Terry Avenue North. There will be presentations on the project and the special benefits study at 3:30 pm and at 5:30 pm. Attend the City Council Formation Hearing on September 22nd at 5:00 p.m. at the City Council Chambers. Q. When will I have to pay for the LID? LIDs provide a way to pay for your improvements over a number of years with low-cost financing. After the final assessment hearing, the City will bill you for your LID payment. You have a choice of payment methods: Make one payment and pay in full. Make a simple-interest payment once per year, over a number of years, until you have paid off the assessment. The City is planning to have the final assessment hearing early in 2006. Q. Where can I get more information on the LID? City of Seattle Local Improvement District (LID) contact info: Kim Nunes, LID administrator (206) 233-7159, Kim.Nunes@seattle.gov Q. What is the LID timeline? SLU STREETCAR ESTIMATED SCHEDULE     TARGET DATE Informal property owner meeting     July 28, 2005 Official notification of LID Formation Hearing     August 2005 LID Formation Public Hearing     September 2005 SLU Streetcar Service begins     Fall 2007 OPERATIONAL QUESTIONS Q. How much will it cost to operate the streetcar? Initially, service would operate every 15 minutes over a 15-hour service day, from approximately 6 a.m. to 9 p.m. The initial year’s cost of operations and maintenance is expected to be $1.51 million (2004 dollars), while subsequent years at this service level will cost $1.37 million (2004 dollars). The cost of operations for phase one, from mid-2007 until mid-2009, is estimated at $3.18 million. The operations of this phase of service will be funded by farebox revenue, FTA formula funds and an operations fund that will be capitalized by the sale of sponsorships and the bulk purchase of tickets. The cost of operations, for phase two, from mid-2009 until 2016, is estimated at $12,772,047 million. The operations of this phase of service will be funded similarly to phase one, with the addition of new, incremental service hours from King County Metro, according to an interlocal agreement. Q. What are the ridership projections for the streetcar? The City has made some preliminary estimates of ridership using two different methods. One method is based on the Puget Sound Regional Council’s 2030 transportation model; the other is based on the number of streetcar riders per route mile in Portland and in other cities with similar systems. The middle range of these estimates is 1,900 to 3,000 riders per weekday, or 550,000 to 900,000 per year. We expect that ridership would be lower in the first few years while jobs and housing continue to grow, and would increase over time. These are preliminary estimates and we will be developing more refined estimates as part of the next phase of study. Q. Who will operate the streetcar? King County Metro Transit will operate the streetcar. Q. How much will it cost to ride the streetcar? We expect that fares will be charged outside of the free ride zone, probably in the range of what Metro charges for a one-zone trip (currently $1.25 to $1.50, depending on the time of day). Metro, Sound Transit and the Monorail are developing an agreement on fare payment integration and our assumption is the streetcar would participate in that agreement. Q. How will the streetcar impact neighborhood parking and drive lanes? Streetcars generally run in the right lane in mixed traffic and, with the exception of platform stops, accommodate existing curbside parking and loading. Just like the current Monorail cars, they are operated by a driver and can be operated from the front or the rear so the car can back up along the same line without requiring a turning circle. The driver controls the starts and stops and the streetcar stops for traffic signals and obeys other traffic rules. Q. How long will it take to construct the streetcar? The streetcar is a technology that’s easy and fast to construct. A shallow 12-inch deep track slab design reduces the construction time and the need for utility relocations. Installing the track requires opening and repaving a strip approximately 8 feet wide and 12 to 18 inches deep, which means that curb-to-curb reconstruction of the street is not necessary. In Portland, they were able to construct each three-block segment in three weeks. Our exact construction schedule will be determined once engineering studies are completed, but preliminary estimates suggest the entire line could be constructed in approximately 1 year. Q. How will construction impact existing businesses? Neighborhood disruption during construction will be minimized. In Portland, construction proceeded in discreet 3-block segments. We look to do the same here in Seattle. Q. What is the timeline for the project? The proposed schedule for the streetcar is: Final design complete in March 06Formation of LID complete in April 2006 Construction and testing complete in June 2007 Operations begin July 2007 Formation of LID complete in April 2006