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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 <br />551 <br />