**Streetcar Loop**

**Portland, Oregon**

(November 2007)

The City of Portland, Oregon, in conjunction with the Tri-County
Metropolitan Transportation District (TriMet), is proposing to construct
a 3.3-mile extension to its existing "Westside" streetcar line. The
project would result in a new streetcar line originating at the existing
streetcar station at 10^th^ Street and Lovejoy in the Pearl District
northwest of downtown Portland, running east across the Willamette River
to the City's Lloyd District, and then south along Martin Luther King
(MLK) Jr. Boulevard and Grand Avenue, terminating near the Oregon Museum
of Science and Industry (OMSI). This "Eastside" alignment includes 18
new stations and significant capital improvements to the Broadway Bridge
to accommodate streetcar operations. The project would require seven new
vehicles, all of which are being procured outside of the scope of the
proposed Small Start. Service would operate at 12-minute headways during
weekday peak periods in the opening year of 2011; future streetcar
operations would result in "through" service (i.e. not requiring a
transfer) between the Westside and Eastside alignments. In addition,
later phases of rail project development in the region are proposed to
include a new crossing over the Willamette River to the south and west
of OMSI, resulting in a direct connection to the southern end of the
Westside streetcar alignment to create a continuous central city
"streetcar loop."

+------------------------------------+---------------------------------+
| **Summary Description**            |                                 |
+------------------------------------+---------------------------------+
| **Proposed Project:**              | Modern Streetcar                |
+------------------------------------+---------------------------------+
| ** **                              | 3.3 Miles                       |
|                                    |                                 |
|                                    | 18 Stations                     |
+------------------------------------+---------------------------------+
| **Total Capital Cost (\$YOE):**    | \$126.92 Million (Includes \$5  |
|                                    | million in finance charges)     |
+------------------------------------+---------------------------------+
| **Section 5309 Small Starts Share  | \$75.00 Million (59.1%)         |
| (\$YOE):**                         |                                 |
+------------------------------------+---------------------------------+
| **Annual Operating Cost (\$YOE):** | \$3.70 Million                  |
+------------------------------------+---------------------------------+
| **Opening Year Ridership Forecast  | 8,700 Average Weekday Boardings |
| (2011):**                          |                                 |
+------------------------------------+---------------------------------+
| **FY 2009 Local Financial          | # Medium                        |
| Commitment Rating:**               |                                 |
+------------------------------------+---------------------------------+
| **FY 2009 Project Justification    | **Medium-High**                 |
| Rating:**                          |                                 |
+------------------------------------+---------------------------------+
| **FY 2009 Overall Project          | **Medium-High**                 |
| Rating:**                          |                                 |
+------------------------------------+---------------------------------+

**Project Development History and Current Status**

The City of Portland formed an Eastside Corridor Steering Committee in
2003 to explore opportunities for extending the existing Westside
Portland Streetcar to the Lloyd District and Central Eastside area.
Based upon this work, Metro, the metropolitan planning organization for
the Portland region, initiated an alternatives analysis study in July
2005, evaluating the costs and benefits of various streetcar alignments
and bus service in the Eastside corridor. In July 2006, local
stakeholders selected a streetcar alignment running north-south along
MLK Boulevard and Grand Avenue terminating at OMSI as the initial
construction segment. TriMet submitted a complete request for entry into
Small Starts project development for this alignment in March 2007; the
request was approved by FTA the following month. TriMet is expected to
complete an Environmental Assessment on the project in December 2007.

The project's current cost estimate lacks detail and carries low
contingencies. However, the team assembled to implement the project has
significant experience in the design and construction of modern
streetcar systems. TriMet has a strong track record for constructing
major transit capital investments on time and within budget.

**[Project Justification Rating: Medium-High]{.underline}**

The project is rated *Medium-High* for project justification based on a
*­­­­­­­­­Medium-Low* rating for cost effectiveness and a *High* rating for
transit-supportive land use. The rating for the project's *Making the
Case* document was not factored into the project justification rating
for FY 2009.

####### *Making the Case Rating: Low*

The Portland Streetcar Loop project would extend the current system to
the east side of the Portland Central City area.  The project's purpose
is to address the transportation needs of travelers in the area and
achieve additional economic development.  Problems of increased traffic
and congestion are cited as well as a need to support local land use and
development goals with faster, more reliable transit service.  No
evidence is presented in the "case" showing how much congestion will
increase versus today, nor is there any discussion of the travel markets
affected by the congestion.  Similarly, there is no discussion of the
travel markets that would be served by the Streetcar, which would not be
expected to serve traditional CBD-oriented markets because of its
circuitous routing.  Based upon experience along the "Westside"
streetcar alignment, TriMet estimates that the Streetcar Loop will
result in an additional 3,400 residential units and 2.4 million square
feet of additional development along the project corridor in 2025 than
without the streetcar investment. However, evidence is lacking of the
comparability of conditions between the two areas (such as proximity to
downtown Portland), and of the contribution of the existing streetcar
system - versus other factors, such as the region's strong land use
policies and controls (for which the Streetcar Loop project has received
credit under the *Transit-Supportive Land Use* rating) - to the
achievement of economic development objectives.

####### *Cost Effectiveness Rating: Medium-Low*

The *Medium-Low* rating is based on the level of travel-time benefits
(1,000 average weekday hours) relative to the project's annualized
costs. The project's travel forecast carries some risk, as it may not
reliably capture the travel patterns of short-distance urban circulation
trips.

+------------------------------------------+---------------------------+
| **Cost Effectiveness**                   |                           |
+------------------------------------------+---------------------------+
| Cost per Hour of Transportation System   | **[New Start vs.          |
| User Benefit                             | Baseline]{.underline}**   |
|                                          |                           |
|                                          | \$29.22                   |
+------------------------------------------+---------------------------+

####### 

####### *Transit-Supportive Land Use Rating: High*

The *High* rating is based upon the average of the ratings assigned to
the subfactors below, each of which contribute one-third to the land use
rating. The rating reflects conditions as of April 2007.

**Existing Land Use: High**

-   Portland's central business district, which includes most of the
    Streetcar Loop Corridor, has a total employment of about 173,000.
    Total population in proposed station areas as of 2005 is 29,600 at
    an average density of 7,600 persons per square mile. Total station
    area employment is 84,900. Total employment served in existing and
    proposed station areas is just over 200,000.

-   Development patterns in the corridor are urban in character, with
    minimal to moderate amounts of surface parking, buildings fronting
    the streets, and a number of multi-story buildings. The northern
    section of the corridor consists largely of major office, retail,
    and entertainment uses, while the southern section consists largely
    of lower-rent office and industrial uses. Street and pedestrian
    connectivity are good throughout the corridor.

**Transit-Supportive Plans and Policies: High**

-   Policies and planning requirements at the state and regional levels
    support transit-oriented development and growth management.
    Portland's Central City Plan (1988) includes urban design goals that
    aim to create an enjoyable pedestrian environment and place high
    density development in potential and existing transit corridors. The
    plan anticipates transit service along the proposed streetcar
    alignment by zoning blocks in the Lloyd District as well as along a
    north-south spine in the Central Eastside District for the highest
    densities and establishing policies to support mixed-use
    development. Design review is required for all major developments in
    a Design Review Overlay Zone which encompasses the proposed
    streetcar corridor.

-   Two Urban Renewal Districts cover the area served by the proposed
    streetcar extension. These districts have financed redevelopment
    projects and infrastructure improvements, with other projects in the
    planning stages to support the streetcar investment.

-   The Central City Plan District restricts the maximum size of retail
    uses and provides various requirements, such as minimal setbacks and
    active uses on the ground floor, to promote pedestrian friendliness.
    Some provisions apply specifically to streetcar corridors.

-   State, regional, and local agency programs and guidelines, such as
    Metro's Transit Oriented Development (TOD) and Centers Program,
    promote pedestrian and transit-friendly development and design. For
    decades, the City of Portland's comprehensive planning and zoning
    process has anticipated transit service in the Eastside corridor. A
    number of regulatory and financial incentives for development exist
    and have been applied by the city and other agencies.

**Performance and Impacts of Policies:** **Medium-High**

-   The successful application of land use and TOD policies in the
    Portland region has been demonstrated through numerous housing
    developments in light rail station areas, commercial development in
    downtown and the Lloyd District, and most recently a boom in
    high-density residential construction in the existing Westside
    streetcar corridor.

-   Redevelopment activity in Eastside areas has not been as successful
    to date. However, a major mixed-use catalyst project is underway and
    other projects are in the planning stages.

-   There is a considerable amount of underutilized or vacant property
    in the corridor that could be available for redevelopment,
    especially comparing existing Floor Area Ratios (FAR) to allowable
    FARs of 4:1 or greater. A local economic impact study projected that
    the streetcar extension could catalyze 5.3 million square feet of
    building development by 2025, a 65 percent increase over 2004
    development. The market in the Eastside corridor appears to be
    strengthening, but the timeframe over which development would
    ultimately be realized is not yet clear.

# [Local Financial Commitment Rating: Medium]{.underline} 

####### The project is rated *Medium* for local financial commitment, based upon TriMet's acceptable financial condition; a reasonable plan for funding for the non-Small Starts share of capital costs; and evidence that the operations and maintenance cost of the project is less than five percent of the agency's operating budget.

+-------------------------------+--------------------+-----------------+
| **Locally Proposed Financial  |                    |                 |
| Plan**                        |                    |                 |
+-------------------------------+--------------------+-----------------+
| **[Source of                  | **[Total Funds     | **[Percent of   |
| Funds]{.underline}**          | (\$milli           | Total           |
|                               | on)]{.underline}** | ]{.underline}** |
+-------------------------------+--------------------+-----------------+
| **Federal:**                  | \$75.00            | 59.1%           |
|                               |                    |                 |
| Section 5309 Small Starts     | \$3.62             | 2.9%            |
|                               |                    |                 |
| FHWA Flexible Funds (CMAQ)    |                    |                 |
+-------------------------------+--------------------+-----------------+
| **Local:**                    | \$15.00            | 11.8%           |
|                               |                    |                 |
| Local Improvement District    | \$27.18            | 21.4%           |
|                               |                    |                 |
| City of Portland Tax          | \$6.00             | 4.7%            |
| Increment Financing           |                    |                 |
|                               | \$0.11             | 0.1%            |
| City of Portland Development  |                    |                 |
| Charges                       |                    |                 |
|                               |                    |                 |
| City of Portland General      |                    |                 |
| Transportation Revenues       |                    |                 |
+-------------------------------+--------------------+-----------------+
| **Total:**                    | **\$126.92**       | 100.0%          |
+-------------------------------+--------------------+-----------------+

**NOTE**: The financial plan reflected in this table has been developed
by the project sponsor and does not reflect a commitment by DOT or FTA.
The sum of figures may differ from total as listed due to rounding.

MAP