Austin urban rail to cost $1.3B
Thursday, June 24, 2010 | Modified: Friday, June 25, 2010
Austin Business Journal - by Jacob Dirr Staff Writer
A 17-mile urban rail system, with track in both directions, would cost about $1.3 billion to start building in 2012, increasing in cost by about 5 percent for every year of delay, the Austin transportation director said Thursday.
Unofficial estimates for the trolley-like system that would go from downtown to Austin-Bergstrom International Airport to the new Mueller neighborhood had previously pegged the cost at $600 million, but that does not account for projected inflation costs in the coming years, Director Rob Spillar said.Council is seeking to finalize a 2012 bond package that would help jump start the system. However, many questions remain about the specifics and viability of such a bond package.
Spillar also said there is keen interest in infrastructure projects from foreign investors, and the city is keeping all of its options open.
The track will be built in phases, not all at once, said transportation officials, allowing the city to construct sections as funding becomes available. City staff hopes to brief council on its plan for phased construction, including which sections will be built first, by the end of the year, Spillar said.
“We know this size of investment is best phased, to take advantage of federal funding,” he said. “Whether it is two or three phases, I can’t say now.”
Transportation officials said that the cost estimate for the entire system includes a healthy rainy day fund, which would cushion the city against unexpected costs. The high contingency funds are likely a reaction to criticism levied at the Capital Metropolitan Transportation Authority, which has been accused of not accounting for possible cost overruns when it pitched the Red Line to the public.
While the Capital Metropolitan Transportation Authority is a partner on the new urban rail system, it will not be involved with planning or managing construction, instead the process is managed from city hall.
Austin transportation officials are still working to decide who will operate the urban rail once it is constructed. Spillar said the staff plans to give council its recommendation when it develops a plan for the first phase of construction.
The proposed rail system also includes about three miles more of track than initially planned —along Guadalupe and Lavaca streets— as well as 13 additional passenger cars to travel the expanded network.
The annual cost to operate a full system would cost between $22 million and $25 million, staff said.
Officials estimate the system will run about 16 hours a day, seven days a week, carrying 28,000 weekday riders by 2030. The entire travel time from one end of the track to downtown is estimated to take about half an hour.
The next step is to adopt a formal plan and initiate an environmental study contract, which will also examine how the new rail line will gentrify communities.
“I think we will find many chances for council to work on policy issues to mitigate or negate the issues,” Spillar said.
While the urban rail plan has been a key tenant of Mayor Lee Leffingwell’s administration, Spillar said the transportation staff has also steadfastly concluded that it is all but necessary to keep the city’s economic engine growing in the core.
In coming years, the population is expected to skyrocket in Austin, and without rail allowing people to enter the central business district, state capitol complex and the University of Texas from outside the greater downtown area “growth is going to happen outside the core,” Spillar said.
“Austin has grown to a size where if we want to preserve our way of life, we have to find ways for people to get around,” Spillar said.
Read more: Austin urban rail to cost $1.3B - Austin Business Journal
City Council approves $1 million Urban Rail study
By Beth Wade Thursday, 10 December 2009
AUSTIN — The Austin City Council approved hiring Austin Urban Rail Partners to complete a $1 million preliminary engineering study for the city's Urban Rail project at its Dec. 10 meeting. The study will help identify the rail's route through downtown.
Also at the meeting, Transportation Department Director Robert Spillar gave an update on the proposed Urban Rail project, along with a list of the city's remaining questions city leaders want answered and an expected time line for getting those answers. This information will be available to the public at an open house Dec. 14 from 10 a.m. to 2 p.m. at City Hall.
The rail, a 15.3 mile streetcar and light-rail hybrid to stretch from the Mueller development to Austin-Bergstrom International Airport, is scheduled to be part of a November 2010 city bond election.
Construction on the line could be up to two years away, but Spillar said the city needs to be planning now.
"We really have a circulation problem here in central Austin, and when I say central Austin, I mean downtown, university district and the Capitol complex," Spillar said. The rail is expected to help improve access to the downtown area.
Spillar is expected to return to council in February with additional information, including where the first segment could be. Preliminary costs of the first segment could be available by the February update, Spillar said. Additional cost details could be available in May 2010. Other answers could come later in the spring and summer.
The council meets Feb. 12 and 26 at 10 a.m. in council chambers, 301 W. Second St.
To see the video of the city council presentation, visit click here.
Thursday, June 24, 2010 | Modified: Friday, June 25, 2010
Austin Business Journal - by Jacob Dirr Staff Writer
A 17-mile urban rail system, with track in both directions, would cost about $1.3 billion to start building in 2012, increasing in cost by about 5 percent for every year of delay, the Austin transportation director said Thursday.
Unofficial estimates for the trolley-like system that would go from downtown to Austin-Bergstrom International Airport to the new Mueller neighborhood had previously pegged the cost at $600 million, but that does not account for projected inflation costs in the coming years, Director Rob Spillar said.Council is seeking to finalize a 2012 bond package that would help jump start the system. However, many questions remain about the specifics and viability of such a bond package.
As part of the urban rail plan, council awarded a $100,000 financial planning contact Thursday to Austin-based Public Financial Management so it could examine system costs and potential sources of revenue to build, operate and maintain an urban rail system.'
The city could also pursue federal grants, loans, tax increment financing and special tax districts to supplement funding, according to staff.Spillar also said there is keen interest in infrastructure projects from foreign investors, and the city is keeping all of its options open.
The track will be built in phases, not all at once, said transportation officials, allowing the city to construct sections as funding becomes available. City staff hopes to brief council on its plan for phased construction, including which sections will be built first, by the end of the year, Spillar said.
“We know this size of investment is best phased, to take advantage of federal funding,” he said. “Whether it is two or three phases, I can’t say now.”
Transportation officials said that the cost estimate for the entire system includes a healthy rainy day fund, which would cushion the city against unexpected costs. The high contingency funds are likely a reaction to criticism levied at the Capital Metropolitan Transportation Authority, which has been accused of not accounting for possible cost overruns when it pitched the Red Line to the public.
While the Capital Metropolitan Transportation Authority is a partner on the new urban rail system, it will not be involved with planning or managing construction, instead the process is managed from city hall.
Austin transportation officials are still working to decide who will operate the urban rail once it is constructed. Spillar said the staff plans to give council its recommendation when it develops a plan for the first phase of construction.
The proposed rail system also includes about three miles more of track than initially planned —along Guadalupe and Lavaca streets— as well as 13 additional passenger cars to travel the expanded network.
The annual cost to operate a full system would cost between $22 million and $25 million, staff said.
Officials estimate the system will run about 16 hours a day, seven days a week, carrying 28,000 weekday riders by 2030. The entire travel time from one end of the track to downtown is estimated to take about half an hour.
The next step is to adopt a formal plan and initiate an environmental study contract, which will also examine how the new rail line will gentrify communities.
“I think we will find many chances for council to work on policy issues to mitigate or negate the issues,” Spillar said.
While the urban rail plan has been a key tenant of Mayor Lee Leffingwell’s administration, Spillar said the transportation staff has also steadfastly concluded that it is all but necessary to keep the city’s economic engine growing in the core.
In coming years, the population is expected to skyrocket in Austin, and without rail allowing people to enter the central business district, state capitol complex and the University of Texas from outside the greater downtown area “growth is going to happen outside the core,” Spillar said.
“Austin has grown to a size where if we want to preserve our way of life, we have to find ways for people to get around,” Spillar said.
Read more: Austin urban rail to cost $1.3B - Austin Business Journal
City Council approves $1 million Urban Rail study
By Beth Wade Thursday, 10 December 2009
AUSTIN — The Austin City Council approved hiring Austin Urban Rail Partners to complete a $1 million preliminary engineering study for the city's Urban Rail project at its Dec. 10 meeting. The study will help identify the rail's route through downtown.
Also at the meeting, Transportation Department Director Robert Spillar gave an update on the proposed Urban Rail project, along with a list of the city's remaining questions city leaders want answered and an expected time line for getting those answers. This information will be available to the public at an open house Dec. 14 from 10 a.m. to 2 p.m. at City Hall.
The rail, a 15.3 mile streetcar and light-rail hybrid to stretch from the Mueller development to Austin-Bergstrom International Airport, is scheduled to be part of a November 2010 city bond election.
Construction on the line could be up to two years away, but Spillar said the city needs to be planning now.
"We really have a circulation problem here in central Austin, and when I say central Austin, I mean downtown, university district and the Capitol complex," Spillar said. The rail is expected to help improve access to the downtown area.
Spillar is expected to return to council in February with additional information, including where the first segment could be. Preliminary costs of the first segment could be available by the February update, Spillar said. Additional cost details could be available in May 2010. Other answers could come later in the spring and summer.
The council meets Feb. 12 and 26 at 10 a.m. in council chambers, 301 W. Second St.
To see the video of the city council presentation, visit click here.



