Prov. Pushing for Trolley Program that Has Failed in Other Cities

As Providence looks to obtain federal funding for a streetcar program for the second time in two years, a recent study of the country's use of light rail has showed that rider usage -- or share of regional workers choosing to ride transit to work -- has declined in 4 of the 5 first original cities where "light rail" started over the past 30 year

In an evaluation of census data in an Atlantic Cities piece by transportation analyst Yonah Freemark entitled, "Have U.S. Light Rail Systems Been Worth the Investment?," Freemark wrote that the initial five light rail systems established in the 1980s -- Buffalo, Portland, Sacramento, San Diego, and San Jose -- "neither rescued the center cities of their respective regions nor resulted in higher transit use — the dual goals of those first-generation lines."

The current Providence proposal is looking to both parlay public-private partnerships, as well as the opportunities available through the development of I-195 corridor, to secure a TIGER grant, after losing out last year to a competing application for roadwork in Apponaug.

Gary Sasse, former Director of Administration and Executive Director of the Rhode Island Expenditure Council, is cautiously optimistic at the potential benefit streetcars would bring to Providence.

"[A] city leader needs to be visionary. A well designed street car system that links Brown, the I-195 project, and downtown could be the type of infrastructure project to help revitalize Providence," said Sasse. "However, the return on investment is dependent on how the street car system is integrated with overall development plans and market needs."

URI Distinguished Professor of Business Edward Mazze took a much different view.

"With the social, educational and economic issues currently facing Providence, now is not the time to build a streetcar system even if federal funds were available," said Mazze. "Providence has a long way to go in attracting new businesses, retaining businesses and making the city welcome for middle and high income individuals and families."

Look Back at Data -- and Forward

In his article, Freemark noted that regions that invested in light rail in the 1980s "largely failed to increase the share of workers commuting by transit, or to increase the vitality of their center cities with respect to the surrounding regions." Freemark, however, went on to ask, "Does this mean we should cease investment in new light rail lines?"

Answering his own question, Freemark wrote, "Certainly not; in many cases, rail has provided the essential boost to reinvigorate communities, and in some cases it has also resulted in higher ridership than before: just look at Rosslyn-Ballston in the D.C. region or Kendall Square in the Boston region."

According to the City of Providence's proposal put forth this spring, the streetcar route would encompass 2.5 miles, with a one time cost of $114 million -- of which 34% would come from federal funding -- followed by annual costs of $3 million for the 12 stop line.

The result, says the city, would "spark economic development, create 6,000 new jobs over the next 20 years and 250 construction jobs, increase surrounding property values by $1.1 billion, and attract 1500 new city residents over the next 20 years."

Developer Stever Durkee spoke to the effort put forth by the city to try and secure federal funding for the street car this year, "I think the [TIGER] application is awesome. It's a great application that was put together by Bonne [Nickerson] and her team, with letters of support from Governor on down," said Durkee.

Durkee noted an example of a recently successful light rail program -- in Atlanta, Georgia, that had just gotten coverage in the Atlanta Business Chronicle for its projected positive economic impact in the Atlanta Business Chronicle.

"We need it here," said Durkee of a streetcar system in Providence. "it's one of those game changing investments,"

Council Role - and Prospects?

Part of the funding proposal put forth by the city includes TIF bonds, which would account for 47% of the $114 million capital costs.

Providence City Councilman Luis Aponte spoke to the role a TIF -- and what he saw as the difference between last year's and this year's grant application.

"The last time the [TIGER] grant was put together and submitted, it was largely a city push. There's more private and non-profit sector buy-in in this application that helps us show what the added value and impact can be," said Aponte.

"What this means is a conditional infrastructure for undeveloped parcels of I-195, which means they'd become more attractive for development to move people in and out of the hub," said Aponte. "I think the strategy behind this application is to create public sector investment that will spur and incentivize private sector development."

Aponte noted that he thought the application was "strong," and the city should know if they get the funding by the end of the fiscal year. "The TIF ordinance has already been submitted to the Council."

URI's Mazze thought, however, that other matters were more pressing.

"First and foremost, Providence needs funds to fix its transportation system including city streets, highways, bridges and evening street lighting. Second, Providence needs funds to fix its schools and government buildings. And lastly, Providence needs funds for job training and recreational activities for young men and women," said Mazze.

"Many years ago Pittsburgh Pennsylvania built the bridge to nowhere, Providence can build a streetcar system that will only go one way.....out of Providence unless Providence takes care of its current social, educational and economic problems."

Related Slideshow: Current Tax Stabilization Agreements in Providence

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