Cost/ Funding

The city’s plan to move the streetcar forward, approved by the Common Council on February 10, 2015, identifies all of the necessary resources needed to build the initial route plus the lakefront line:

Capital Costs/Construction


COSTS AMOUNT
Phase 1 Route: Tracks/Stops/Systems $98.9 m
Lakefront Line: Tracks/Stops/Systems $29.2 m
TOTAL COSTS $128.1 m
SOURCE AMOUNT
Federal: ICE Funding $54.9 m
Federal: TIGER VII Grant $14.2 m
Local: Cathedral Square TID $9.7 m
Local: Amend Erie St. TID 56 to 19 years $18.3 m
Local: East Michigan TID @ 19 years $31.0 m
TOTAL SOURCE OF FUNDS $128.1 m
Note: The Federal TIGER grant approved for the Lakefront Line in October 2015 provided an additional $14.2 million, which leverages previously approved city funding as a match for the federal grant at a 50-50 local / federal share. The additional funds secured through TIGER also support operational efficiencies and improvements to the Operations and Maintenance Facility.

Operations

A federal CMAQ grant has been secured that pays for 80% of 18 months of pre-revenue operating costs. Pre-revenue operating costs include operator services to prepare for revenue service, procurement of operational equipment and spare parts, and training. Additional CMAQ funding has been secured to support revenue service operating costs of Phase I and the Lakefront Line and an additional CMAQ grant application has been submitted. In total, an additional 18 months of revenue service operating costs are anticipated to be funded under the CMAQ program. With an introductory fare of $1 per ride, it is expected that fare box revenue, sponsorships and advertising during revenue service will fund the 20% local match. After Year 3, operations will be funded through a combination of fare box revenue, advertising, corporate sponsorships, federal funding opportunities, operating agreements with partners and/or the City's parking fund. Ongoing, annual operating costs are expected to be approximately $3.5M at the start of revenue service of Phase 1 and the Lakefront Line.




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