FINANCING OPTIONS FOR AN EXPANDED
SEATTLE STREETCAR SYSTEM AND NETWORK

An executive report to the Urban League of Metropolitan Seattle and the Streetcar Alliance authored by the University of Washington Urban Form Lab and Washington State Transportation Center (TRAC)

Executive Summary
The two-part study sought to guide decisions regarding the financing of a network of streetcar lines in and near downtown Seattle. The first part of the study addressed the potential revenue and funding sources for the operations, maintenance, and capital costs of developing streetcar lines. The second part explored the social and economic characteristics of neighborhoods and districts that would affect the existing and planned network of streetcar lines and that might affect future extensions to this existing network.

During the many interviews conducted for this work, the research team encountered strong interest in and support for expanding Seattle’s streetcar network.

A review of other streetcar systems across the country revealed that sources of revenue and funding are numerous and diverse in both their provenance and the amount of support available. Revenues from ridership generally meet only a fraction of the financial needs of the systems. Funds for streetcar efforts nationwide tend to come from a combination of various private-sector entities and different government agencies at the local district, city, region, state, and federal levels.

Funds are often generated from "new” money that became available as a result of new development that took place, in part, because of the construction of the streetcar. In such cases, the city building the streetcar acted to guarantee that these growing resources would be sufficient to cover the costs of the streetcar system. Where planning is adequately performed and community support is strong, expected funding generally materializes.

In Seattle, the type of funding that can be generated as a result of growth facilitated by the streetcar network will likely be unique to each different line or extension. For example, increased development density along some extensions would make it possible to charge for on-street parking. That new parking revenue could be used to fund streetcar-operating costs. Other proposed streetcar extensions may be better and more effectively financed through Local Improvement Districts (LID) or Tax Increment Financing (TIF) mechanisms. Any approach to gain private sector support and approval will require the city to obtain cooperation from the landowners and possibly major employers in the subject areas.

The spatial analysis showed that all of the extensions examined present a strong case for being developed. However, just as with the best financing options, the reasons for building each streetcar line extension tend to differ from line to line. In some cases, the extension will be a good way to provide the transportation system needed to support greater density of development, which can be expected to help pay for the streetcar. In other cases, a proposed streetcar extension will provide access to areas that are already heavily populated or have substantial employment but are underutilized by direct transportation options other than vehicular. These extensions may not generate as much "new” money but may serve to relieve existing traffic congestion while also allowing new development to take place.

Tax base, existing ridership and future ridership potential, support from employers, and redevelopment potential all provide good arguments for implementing all the extensions analyzed in the report. The different strengths presented by each extension, and the need to consolidate already apparent public and private sector support for the various streetcar extensions, indicate that building all the extensions as part of one transportation system should draw consideration as the best option. This single streetcar system will provide a linked, seamless network for the mobility of riders and, ultimately, for serving all employees, residents, and visitors of the various Seattle areas.

View The Full Feasibility Report

View Press Release and Additional Information