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8.B. - Page 8 of 70
<br />Areas of Economic
<br />Existing
<br />Baseline/No
<br />Estimated
<br />Estimated Increase
<br />Percentage
<br />Benefit
<br />Build Scenarioz
<br />Growth with
<br />Increase
<br />(includes
<br />Streetcar / Urban
<br />projects in
<br />Circulator (Low -
<br />development
<br />High)
<br />pipeline)
<br />Annual revenues
<br />$6,431,000
<br />$11,024,000
<br />$11,359,000 -
<br />$335,000-$771,000
<br />3%-7%
<br />to the City
<br />$11,795,00
<br />Property tax
<br />$5,320,000
<br />$9,239,000
<br />$9,488,000 -
<br />$249,000-$597,000
<br />3%-6%
<br />$9,836,000
<br />Transient
<br />$138,000
<br />$138,000
<br />$145,000-
<br />$7,000-$14,000
<br />5%-10%
<br />occupancy tax
<br />$152,000
<br />Sales tax
<br />$973,000
<br />$1,647,000
<br />$1,726,000-
<br />$79,000-$160,000
<br />5%-10%
<br />$1,807,000
<br />It should be noted that an urban circular would have less impact than a streetcar on the real estate market,
<br />property values, retail sales, and tax revenues. The main reason for this is that real estate investors and
<br />businesses are more likely to be willing to commit their funds when they view the transportation
<br />investments in the area to be permanent and long term in nature, which would be characteristic of a
<br />streetcar, but not as much for an urban circulator.
<br />Study Outcomes and Next Steps: Overall, the study determined that a streetcar system or an urban
<br />circulator are technically viable options to enhance mobility and access along the Broadway corridor and
<br />between the transit center and areas outside the downtown core. Implementation of the streetcar or
<br />urban circulator would potentially reduce Vehicle Miles Traveled (VMT) in Redwood City by about 1% of
<br />total VMT, addressing the City's transportation goals, and it could also encourage additional housing
<br />development, addressing the City's housing goals.
<br />Tax revenue to the City could also increase, however, the estimated revenue increase (upwards of
<br />$700,000 annually) would only cover 40-60 percent of the ongoing operating costs for either a streetcar
<br />or an urban circulator.
<br />On the capital side, the cost to develop a streetcar system is more than 10 times the cost to develop an
<br />urban circulator system. With either approach, multiple funding sources would be sought, but obtaining
<br />funding for a streetcar system naturally is a much more significant challenge given the higher cost. Given
<br />the expense of implementing a streetcar system, uncertainty about who the governing body would be,
<br />and what funding sources could support both capital and operating costs, an urban circulator may be
<br />more attainable than a streetcar system.
<br />Staff will continue to monitor development along the Broadway corridor and the performance of the
<br />existing shuttles (Commute.org and Marguerite). While these services provide some of the benefits of the
<br />urban circulator or streetcar, they are focused on employees, don't have stops throughout downtown and
<br />may not incentivize redevelopment to the extent that a streetcar would. As development continues along
<br />the corridor and transit demand increases, investments could focus on increasing transit service and
<br />improving amenities for riders.
<br />Page 8 of 10
<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org
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