**North Corridor LRT**

**Columbus, Ohio**

(November 2003)

# Description

The Central Ohio Transit Authority (COTA) is proposing to construct a
new light rail transit (LRT) line connecting the Columbus central
business district (CBD), Ohio State University, the State Capitol, and
the city's northern suburbs, utilizing both public and privately-owned
railroad right-of-way. The LRT would operate at-grade in exclusive lanes
in the CBD, while the majority of the line would operate along existing
CSX/Norfolk-Southern railroad tracks outside of the CBD. The North
Corridor is served by two freeways -- Interstate 71 and State Route 315
-- on its east and west sides. Only one north-south arterial (High
Street) traverses the entire project corridor. The corridor is
considered the most congested in the Columbus metropolitan area and is
served by COTA's busiest bus route.

Projected growth within the residential and commercial areas of the
North Corridor is expected to increase auto travel time between the CBD
and the city's northern suburbs. Auto travel time between the Polaris
and Crosswoods suburban employment centers to the CBD, for example, is
estimated to increase 63 percent and 33 percent, respectively, by 2025.
Current transit travel time between the CBD and Polaris, a distance of
approximately 12 miles, exceeds 75 minutes.

The North Corridor LRT project is expected to improve accessibility
between the CBD and the Polaris and Crosswoods suburban employment
centers by reducing transit travel times by an estimated 10 minutes and
25 minutes, respectively. Overall, the North Corridor LRT project is
anticipated to yield 7,600 weekday hours of travel-time benefits by 2025
compared to bus improvements. The project is forecast to improve both
traditional suburb-to-CBD and reverse-commute travel patterns.
Transit-dependent passengers in the corridor would receive a significant
share of these benefits.

  ------------------------------------- ---------------------------------
  **Summary Description**               

  **Proposed Project:**                 Light Rail Transit

  ** **                                 13 Miles, 14 Stations

  **Total Capital Cost (\$YOE):**       \$528.7 Million

  **Section 5309 New Starts Share       \$264.4 Million (50%)
  (\$YOE):**                            

  **Annual Operating Cost (2010         \$13.2 Million
  \$YOE):**                             

  **Ridership Forecast (2025):**        17,600 Average Weekday Boardings

  ** **                                 6,500 Daily New Riders

  **Opening Year Ridership Forecast     15,800 Average Weekday Boardings
  (2008):**                             

  **FY 2005 Finance Rating:**           **Medium**

  **FY 2005 Project Justification       **Medium**
  Rating:**                             

  **FY 2005 Overall Project Rating:**   **Recommended**
  ------------------------------------- ---------------------------------

The ***Recommended*** rating reflects the sufficiency of the North
Corridor's transit-supportive land use, the project's fair cost
effectiveness, and the adequacy of its capital and operating financial
plans at this stage of development. The overall project rating applies
to this *Annual Report on New Starts* and reflects conditions as of
November 2003. Project cost estimates and proposed New Starts share are
developed by local project sponsors and are not FTA assumptions. Project
evaluation is an ongoing process. As New Starts projects proceed through
development, estimates of costs, benefits, schedules and impacts are
refined. FTA's ratings and recommendation will be updated annually to
reflect new information, changing conditions and refined financing
plans.

# Status

The North Corridor LRT was approved into preliminary engineering in
December 2001. COTA is currently preparing a Draft Environmental Impact
Statement, which is scheduled for completion in summer 2004. A NEPA
Record of Decision is anticipated in summer 2005. COTA is planning to
place a ¼-percent sales tax referendum before Columbus area voters in
May 2005. If passed, the funds would provide approximately 24 percent of
the project's total estimated capital cost. In the event the referendum
does not pass or is delayed beyond May 2005, the project's financial
plan would require modification and may result in a reduction of the
project's financial rating.

The North Corridor LRT's total capital cost estimate increased
approximately five percent since last year's *Annual Report on New
Starts* due to the inclusion of finance charges (\$26.9 million).

COTA has executed a memorandum of understanding and cost allocation
agreement with CSX and Norfolk-Southern to conduct a freight rail
capacity analysis to quantify the impact of implementing light rail
within each railroad's right-of-way. The analysis will also examine the
feasibility of constructing a new intermodal rail yard for both COTA and
Norfolk-Southern near the northern terminus of the corridor. The
capacity analysis is scheduled for completion in spring 2005. The
potential conclusions of the study, most notably the possible
construction of a new intermodal rail yard, may impact COTA's budget for
the North Corridor LRT.

The North Corridor LRT was not authorized in TEA-21. Through FY 2003,
Congress has appropriated \$0.5 million in Section 5309 New Starts funds
for the project.

# Evaluation 

The following criteria have been estimated in conformance with FTA's
*Reporting Instructions*

*for the Section 5309 New Starts Criteria*, updated in June 2003. The
project will be re-evaluated

for next year's *Annual Report on New Starts* and when it is ready to
advance into final design.

# Project Justification

# [Rating: Medium]{.underline}

The *Medium* rating reflects the sufficiency of the corridor's
transit-supportive land use environment and the adequacy of the
project's cost effectiveness. Based on 2000 Census data, there are an
estimated 7,091 low-income households (35 percent of the total number of
households) within a ½-mile radius of proposed station areas. There are
also an estimated 171,850 jobs within a ½-mile radius of station areas.
The Columbus metropolitan area is designated as an attainment area for
ozone, carbon monoxide and particulate matter. The proposed project has
an incremental cost per incremental trip value of \$21.10.

+---------------------------------------+--------------+--------------+
| **Project Justification Quantitative  |              |              |
| Criteria**                            |              |              |
+---------------------------------------+--------------+--------------+
| **Mobility Improvements Rating:       |              |              |
| Medium-High**                         |              |              |
+---------------------------------------+--------------+--------------+
| **Average Employment Per Station**    | **[New Start |              |
|                                       | vs.          |              |
| **Average Low Income Households Per   | Baseline]{.  |              |
| Station**                             | underline}** |              |
|                                       |              |              |
| **Transportation System User Benefit  | 8,186        |              |
| Per Project Passenger Mile            |              |              |
| (Minutes)**                           | 402          |              |
|                                       |              |              |
|                                       | 3.91         |              |
+---------------------------------------+--------------+--------------+
| **Environmental Benefits Rating:      |              |              |
| Medium**                              |              |              |
+---------------------------------------+--------------+--------------+
| **[Criteria Pollutant                 | **[New Start |              |
| Reduced]{.underline} (tons)**         | vs.          |              |
|                                       | Baseline]{.  |              |
| **Carbon Monoxide (CO)**              | underline}** |              |
|                                       |              |              |
| **Nitrogen Oxide (NO~x~)**            | 220          |              |
|                                       |              |              |
| **Volatile Organic Compounds**        | 30           |              |
|                                       |              |              |
| **Particulate Matter (PM~10~)**       | 30           |              |
|                                       |              |              |
| **Carbon Dioxide (CO~2~)**            | 2            |              |
|                                       |              |              |
| **[Annual Energy Savings]{.underline} | 7,875        |              |
| (millions of BTU)**                   |              |              |
|                                       | 91,120       |              |
+---------------------------------------+--------------+--------------+
| **Cost Effectiveness Rating: Medium** |              |              |
+---------------------------------------+--------------+--------------+
| **Cost per Transportation System User | **[New Start |              |
| Benefit**                             | vs.          |              |
|                                       | Baseline]{.  |              |
| **(current year dollars/hour)**       | underline}** |              |
|                                       |              |              |
|                                       | \$18.00      |              |
+---------------------------------------+--------------+--------------+
| **Operating Efficiencies Rating:      |              |              |
| Medium**                              |              |              |
+---------------------------------------+--------------+--------------+
| **System Operating Cost per**         | > **         | **[New       |
|                                       | [Baseline]{. | Start]{.     |
| **Passenger Mile (current year        | underline}** | underline}** |
| dollars)**                            | >            |              |
|                                       | > \$0.70     | \$0.68       |
+---------------------------------------+--------------+--------------+

**Existing Land Use, Transit-Supportive Land Use Policies and Future
Patterns**

# [Rating: Medium]{.underline}

The *Medium* rating reflects the corridor's positive growth management
policies, transit-supportive zoning regulations near stations, tools to
implement land use policies, corridor development targets and station
area proposals. However, the rating also acknowledges the few zoning
allowances for reduced parking/traffic mitigation or demonstrated cases
of development affected by transit-oriented policies. In some areas,
employment and population densities are not transit-supportive.

**Existing Conditions:** The North Corridor includes several major
activity centers located at the northern and southern termini, including
cultural sites, entertainment districts, hospitals, sport stadia,
universities, fairgrounds and a convention center. Five station areas
have significant amounts of vacant or undeveloped land. Numerous
redevelopment projects are occurring in the station areas and throughout
the corridor. However, average station area population of 5,700 persons
per square mile, coupled with total employment within station areas of
approximately 114,600 jobs, reflects relatively moderate densities
within the corridor. The Columbus CBD presently contains approximately
94,700 jobs.

**Future Plans, Policies and Performance:** By 2025, population in
proposed station areas is expected to increase by 17 percent and
employment by 25 percent. Within the Columbus CBD, employment is
expected to increase by 32.6 percent by the forecast year. COTA and
local jurisdictions are actively engaged in the promotion and support of
transit-oriented development (TOD) principles and regional growth
management strategies. The city has enacted several tax abatement
incentive programs to facilitate continued growth in the CBD area as
well as development / redevelopment districts throughout the corridor.

COTA's *1999 Planning and Development Guidelines for Public Transit*
handbooks were distributed to local governments and developers. Land use
policies and planned renewal efforts in the corridor, especially near
proposed station areas, have fostered several development /
redevelopment projects, including the 21-acre Capital Auto Parts
redevelopment site at Hudson and Fourth Street adjacent to the proposed
Hudson station. Currently, a Lowes Theater has been built on 13 acres of
the former auto site and more commercial uses are planned. The planned
Polaris Station has attracted a regional office of BancOne. The city, in
cooperation with private developers, is creating a multimodal transit
center within ½ mile of the Arena District.

The 1999 *Railroad Corridor Preservation and TOD Study* produced a
sample TOD ordinance. The second phase of the study is an educational
TOD program for developers and local governments, including a review of
a model TOD ordinance to meet local needs. Columbus recently adopted a
Traditional Neighborhood Design Code. The code promotes redevelopment in
transit station areas. The regulations support multiple density level
neighborhoods with mixed use, pedestrian friendly streets and
street-oriented building standards.

########  

# Local Financial Commitment 

# [Rating: Medium]{.underline} 

The *Medium* local financial commitment rating was determined by the
project's thorough capital and operating financial plan, tempered by the
uncertainty surrounding passage of a sales tax referendum that would
provide funding for the project.

######## 

# Proposed Non-Section 5309 New Starts Share of Total Project Costs: 50% 

# [Rating: Medium]{.underline} 

COTA's financial plan for the North Corridor LRT proposes Section 5309
New Starts funds to cover 50 percent of total project costs. State
legislative appropriations, local dedicated sales tax revenues, and less
than one percent in cross-border lease proceeds would cover the balance
of project capital requirements.

+-----------------------+----------------------+----------------------+
| **Locally Proposed    |                      |                      |
| Financial Plan**      |                      |                      |
+-----------------------+----------------------+----------------------+
| **[Proposed Source of | **[Total Funding     | **[Percent of        |
| Funds]{.underline}**  | (\$mil               | Total]{.underline}** |
|                       | lion)]{.underline}** |                      |
+-----------------------+----------------------+----------------------+
| **Federal:**          | \$264.4              | 50.0 %               |
|                       |                      |                      |
| Section 5309 New      |                      |                      |
| Starts                |                      |                      |
+-----------------------+----------------------+----------------------+
| **State:**            | \$132.2              | 25.0 %               |
|                       |                      |                      |
| Ohio DOT              |                      |                      |
+-----------------------+----------------------+----------------------+
| **Local:**            | \$127.7              | 24.2 %               |
|                       |                      |                      |
| COTA Regional Sales   |                      |                      |
| Tax                   |                      |                      |
+-----------------------+----------------------+----------------------+
| **Other:**            | \$4.5                | 0.8 %                |
|                       |                      |                      |
| Cross Border Lease    |                      |                      |
+-----------------------+----------------------+----------------------+
| **Total:**            | **\$528.7**          | 100.0 %              |
+-----------------------+----------------------+----------------------+

**NOTE:** Funding statements reflected in this table have been made by
project sponsors and are not DOT or FTA assumptions. Sum of figures may
differ from total as listed due to rounding.

######## 

# Stability and Reliability of Capital Financing Plan

# [Rating: Medium]{.underline}

The *Medium* rating reflects the strong capital condition of COTA and
the comprehensive capital financial plan for the proposed project. The
rating also acknowledges the uncertainty of a portion of the project's
proposed local funding, which is dependent on the passage of a sales tax
that is currently scheduled to go before Columbus area voters in May
2005.

######## **Agency Capital Financial Condition:** COTA's capital financial condition is stable. The average age of the agency's bus fleet is 6.3 years, which is just under the national average. At this time, COTA has no outstanding debt and thus no bond ratings.

######## 

**Capital Cost Estimate and Contingencies:** The total capital cost
estimate for the North Corridor LRT increased five percent over the
amount reported in last year's *Annual Report on New Starts*, due to the
inclusion of finance charges. The current estimate includes a 25 percent
contingency on major project elements (construction, vehicles, etc.),
with the exception of railroad force account work that is currently
budgeted at 17 percent. Typically, railroad force account work is
budgeted with a contingency of 30 percent of the total estimated capital
cost. COTA's debt coverage ratio is projected above 2.0 over the life of
the capital plan, which is good. The agency currently has sufficient
cash balances and debt capacity to cover unanticipated cost overruns
related to the LRT's implementation.

**Existing and Committed Funding:** At this time, none of the
non-Section 5309 New Starts funds are committed.

**New and Proposed Funding Sources:** The primary sources of non-Section
5309 New Starts funds for the North Corridor LRT are the COTA sales tax
and State legislative appropriations. Currently, COTA levies a ¼-percent
sales tax and is planning to implement a second ¼-percent sales tax
beginning in 2005. The latter would fund approximately 24 percent of the
proposed project's total estimated capital cost. The State's
contribution accounts for 25 percent of the project's total estimated
capital cost.

# Stability and Reliability of Operating Finance Plan 

**[Rating: Medium]{.underline}**

The *Medium* rating reflects the soundness of the operating financial
plan for the proposed project at this stage of project development. In
addition, the rating reflects concerns surrounding COTA's current
operating condition that have led to recent service reductions. The
rating also acknowledges the operating plan's heavy reliance on a sales
tax referendum that has yet to take place.

######## 

**Agency Operating Financial Condition:** COTA's current operating
condition is sound. Through the 1990s, COTA's bus service levels
increased steadily, peaking in the year 2000. Since then, bus service
levels have declined due to reduced sales tax revenues. If the planned
¼-percent sales tax referendum is passed in May 2005, bus service levels
are projected to grow. COTA's most recent financial statement reflects a
current operating ratio (current assets over current liabilities) of
2.7, which is good.

######## 

**Operating Cost Estimates and Contingencies:** The annual operating and
maintenance cost for the North Corridor LRT is estimated at \$13.2
million during the first full year of the LRT's operation (2010),
accounting for approximately 11 percent of COTA's systemwide operating
and maintenance costs. Cash balances are projected to cover three months
or less of operating expenditures after FY 2004.

######## 

#### Existing and Committed Funding: At this time, approximately 73 percent of the North Corridor LRT's operating and maintenance funds exist and are committed to the project. These funds consist of existing sales tax revenues, transit fares, and other transit revenue. An additional 8 percent of operating revenues come from existing sources, but are considered planned including Federal and State assistance and fuel tax refunds, which are subject to annual appropriations.

#### New and Proposed Funding Sources: Nineteen percent of operating costs would be provided by the planned sales tax increase. Fare revenues from the proposed LRT are projected to constitute only three percent of the project's operating funds during the first full year of operation. 

MAP