Friday, January 16, 2015

Lone Star Rail is idiotic for Georgetown

A presentation on Project Connect held in Sun City in 2013 left much to be desired.  The Vision Map showed a Lone Star rail terminal on the southeast side of Georgetown, and an express bus service at IH 35 and the Inner Loop.  Neither of these options serve Sun City or other residents along Williams Drive.

A quick look at census data shows that the growth in Georgetown is taking place west of IH 35.  For the years 2010 to 2013, the population west of IH 35 in zip codes 78628 and 78633 increased by about 6000.  In zip code 78626, east of IH 35, the population decreased about 550 over the same time period.  The city boundaries are somewhat smaller than the zip codes, but, it is rational to believe the same trends are occurring in the city.

It does not make good sense to build transportation systems where the growth is declining!  City Council should work with Project Connect to bring express bus service to Williams Drive, west of IH 35, that is where the growth is occurring.

With respect to Lone Star Rail, there is so much factual information available on why it is a bad idea, It is not understandable why it is still being considered.  Here are a few key points.

A Rasmussen Reports poll, August 2013, indicated “three-out-of-four Americans(74%) say they rarely or never use mass transit”.  Only 6% use mass transit every day or nearly every day.  I would be in the 74%.

As I reported to the Council in July, the capital costs associated with rail projects are grossly under estimated in the beginning.  In fact the numbers are so “squishy” right now, Lone Star management does not seem forth coming with an estimate for the costs to Georgetown.  As former San Francisco Mayor Willie Brown wrote in a July 2013 column for the San Francisco Chronicle, “In the world of civic projects, the first budget is really just a down payment.  If people knew the real cost from the start, nothing would ever be approved.”

There is a long list of rail projects that have failed miserably to meet initial expectations.  They include the Honolulu rail, the Portland rail, San Jose rail, Denver rail and the list goes on.  They are all characterized by extensive cost over runs, under-estimates of ridership and ultimately reductions in scope or service to try and contain the budget deficit.

Another significant short coming of rail systems is they are not flexible.  Routes cannot easily be changed to accommodate shifts in population growth, whereas bus routes can be easily and economically changed.

Bus systems initial capital costs and operating costs are also much less than rail systems.

Rail system proponents never include in their initial estimates the capital costs to rebuild or upgrade the systems as they approach their 30-40 lifetime.  The Metrorail system in Washington DC is a prime example of trying to maintain a rail system to current safety standards when the budget is not available.  A 2009 crash caused by substandard maintenance led to the death of nine people.

It seems that the construction of a rail system is a gigantic wealth transfer scheme, first from the 74% of people who will not use it, and from the children and grand children of the future to pay for the never-ending escalating cost of such a project.  The beneficiaries are the riders, the land owners and businesses near the terminals and the construction and development firms. A more prudent approach would focus on providing an economical and flexible system using busses to accommodate changing circumstances.

With respect to financing such projects, it seems one should be very wary of the claims that funding can be provided through increased property valuations.  A 2010 study of the Austin Street Car project entitled  Zero Sum Game: The Austin Streetcar and Development, An analysis of the Capital  Market Research Report by Wendell Cox Consultancy
The overall conclusion: “The CMR report provides no basis to conclude that the streetcar will increase property values in the Austin area. Virtually all of the additional development attributed to the streetcar appears to be taken from elsewhere in the central area or metropolitan area. There is no evidence that the streetcar would materially increase total property values.”

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