HomeMy WebLinkAboutAgenda - 06-21-2016-13-6 - Information Item - Memorandum Regarding Hillsborough Train Station Funding and the Proposed 2016 Appropriations Act INFORMATION ITEM 1
PLANNING & INSPECTIONS DEPARTMENT
Craig N. Benedict, AICP, Director
Administration 131 W. Margaret Lane
(919) 245-2575 Suite 201
(919) 644-3002 (FAX) 0[ 331 w„ VU a Y P. O. Box 8181
www.orangecountync.gov N( l ." 1 f�ll fM Hillsborough, NC 27278
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MEMORANDUM
TO: Board of County Commissioners
Bonnie B. Hammersley, County Manager
FROM: Max Bushell, Transportation Planner; Tom Altieri, Comprehensive
Planning Supervisor
DATE: June 21, 2016
SUBJECT: Information Item — Hillsborough Train Station Funding and the Proposed
2016 Appropriations Act
ATTACHMENT 1: Hillsborough Senate Budget Letter to President Pro Tempore
ATTACHMENT 2: Hillsborough Senate Budget Letter to House Speaker
Please accept the following memorandum in response to a request from Commissioner
Barry Jacobs for more information regarding the Hillsborough Train Station Funding and
the Proposed 2016 Appropriations Act.
Background
The recently released version of the North Carolina Senate's Budget Proposal
(http://www.ncleg.net/sessions/2015/budget/2016/h 1030-csmdxf-18v64.pdf) contains
the following language on p. 141 under Section 35.12.(c):
G.S. 136-189.10(3)g. reads as rewritten: "Public transportation service that spans two or
more counties and that serves more than one municipality. Programmed funds
pursuant to this sub-subdivision shall not exceed ten percent (10%) of any distribution
region allocation. This sub-subdivision includes commuter rail, intercity rail, and light rail.
Total State funding for a commuter rail, intercity rail, or light rail project shall not exceed
ten percent (10%) of the estimated total project costs used during the prioritization
scoring process. The State shall not be responsible or liable for any project costs in
excess of the maximum established under this sub-subdivision. Any agreement entered
into by the State to fund a commuter rail, intercity rail, or light rail project shall include
language setting out the limitations set forth in this sub-subdivision."
The Hillsborough Train Station ("Station project") is currently funded in the adopted
2016-2025 State Transportation Improvement Program with construction slated to begin
in 2019 at a cost of approximately $7 — 8 million. The Station project may be impacted
2
by this budget language, though it is currently unclear if this project qualifies as a project
"that spans two or more counties and that serves more than one municipality," or if the
currently adopted 2016-2025 State Transportation Improvement Program (STIP) would
be changed to reflect this restriction. The Town of Hillsborough was informed by their
local legislative delegation that this budget language may remove funding from the
Hillsborough Train Station, giving the project a large funding gap. In response, the
Hillsborough Town Mayor, Mr. Tom Stevens, has written to President Pro Tempore of
the North Carolina Senate Phil Berger and House of Representatives Speaker Tim
Moore to express his concerns and ask that the proposed budget language be
amended to preserve the funding for the Hillsborough Train Station.
It is important to note that the budget has not yet been finalized and more information
will be made public in the coming weeks. In order to better understand how this project
is funded, a brief history of the station project and its funding is presented below.
Funding History
An intercity (Amtrak) train station in the Town of Hillsborough was proposed in 2009.
Town of Hillsborough staff, the Rail Station Small Area Plan Task Force, and other
contributors prepared the Hillsborough Rail Station Small Area Plan and considered a
number of funding options, including applying for a 2010 American Reinvestment and
Recovery Act (ARRA) grant. This grant was not awarded to the Station project.
Consideration was also given to the Hillsborough Train Station project during the
development of the Orange County Bus Rail Investment Plans (OCBRIP). This led to
discussion about making an application to the Transportation Investment Generating
Economic Recovery (TIGER) competitive grant program, based on the familiarity of the
North Carolina Department of Transportation (NCDOT) Rail Division with these grants
and the likelihood of receiving a grant in Hillsborough. The OCBRIP provided a
breakdown of the cost split in the case of receiving a TIGER grant. Under this funding
scenario, 80 percent of the total project cost would be covered by federal funds, 10
percent by state funds, and 10 percent by local funds. Local funds for the project were
anticipated to be generated from the 1/2 cent sales tax.
After the Board approved the OCBRIP and Orange County voters approved the transit
funding referendum in 2012, the Legislature in 2013 enacted the Strategic
Transportation Investments (STI) law (HB 817) which implemented a data-driven
process for selecting transportation projects statewide. Following discussions between
the NCDOT Rail Division, the North Carolina Railroad (NCRR) company, the Town of
Hillsborough, and Orange County, it was determined that the Station project would be
eligible for entry into the funding competition established by STI. The project was
submitted, performed well under the relevant criteria, and was added to the STIP, with
construction scheduled to take place in 2019 and 2020. In the current STIP, the Station
project is scheduled to be funded with about 90 percent state funds and 10 percent local
funds, including revenue from the 1A cent sales tax. Under the proposed budget
language, funding from the State may be required to be reduced to 10 percent, leaving
a substantial funding gap.
Next Steps
The Orange County Board of Commissioners may wish to consider voicing concerns
with the Orange County legislative delegation in support of the Town of Hillsborough's
concerns regarding this proposed budget language.
3
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June 8, 2016
President Pro Tempore Phil Berger
North Carolina Senate
16 W Jones St, Room 2007
Raleigh,NC 27601-2808
RE: Senate Budget impact on Hillsborough Passenger Rail station
Dear Mr. President:
I'm writing to highlight and avert what may be an unintended negative consequence of an item in the
senate budget(Sec.35.12) that addresses how transit services (specifically light rail) are to be well
supported at the local and federal levels and limits the burden of financing rail infrastructure by the state.
While aimed primarily at light rail services, it appears that this section would upend funding for an
Amtrak station located in Hillsborough (STIP#P-5701).
The current State TIP includes full funding to build a passenger rail station in Hillsborough adjacent to the
existing rail infrastructure and served by Amtrak. Amtrak has assessed the stop location and determined it
was cost effective for them to provide service in Hillsborough, if the station was provided. This will re-
establish a missing link in intercity heavy rail service in the Carolina Crescent as well as allow
connections to the national heavy rail network. This project operates adjacent to the existing corridor and
doesn't trigger the need to expand capacity on the rail network or road network.
Our citizens already drive to Burlington and Durham to access this existing commuter rail service, which
is why we began the investigation for a station in town. Adding the station in Hillsborough makes it
feasible for more residents to select this option and stop driving in the congested I-85 and I-40 corridors.
This helps relieve pressure to widen these expensive facilities and takes advantage of existing capacity on
the rail network. The Hillsborough station has remarkably widespread support from citizens of all
political persuasions, and helps connect our more rural areas of county to the Triad, Triangle, and
Charlotte as well as points in-between and beyond. This investment benefits the entire state, not just
Hillsborough.
The town acquired the property for the station to be built and funded the conceptual design to inform the
environmental review of this project. Local funds are also committed through the local transit tax to this
project. The support for this project has been constant, both verbally and financially, since the process
was initiated in 2009, and is based on a non-political and empirical assessment of cost-benefits. The town,
the North Carolina Rail Road, Amtrak, and NCDOT staff have all worked together to study the impacts
and the best path forward. Station locations in Hillsborough and in Lexington complete a well-spaced and
planned network of rail access points along the existing corridor in North Carolina in the most efficient
and cost-effective manner, and contribute to an important multi-modal system of transportation important
for all of North Carolina.
101 East Orange Street • P. O. Box 429 • Hillsborough, North Carolina 27278
919-732-1270 • Fax 919-644-2390
4
We request that the budget provisions be amended so this important project can continue to move
forward.
The town of Hillsborough understands that the General Assembly has many difficult funding, operational,
and policy choices to make during this year's budget season. We appreciate your consideration for
amending Sec. 35-12 so the allocated funding for the Hillsborough Amtrak station can be preserved.
Please don't hesitate to contact me directly if you have questions or need additional information on the
rail station project. I can be reached at tom.stevens@,hillsboroughnc.org and 919-360-2249.
Sincerely,
Torn Sevens, Mayor
Cc: Rep. Verla Insko
Sen. Valerie Foushee
Rep. Graig Meyer
101 East Orange Street • P. O. Box 429 • Hillsborough, North Carolina 27278
919-732-1270 • Fax 919-644-2390
5
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June 8, 2016
Speaker Tim Moore
North Carolina Senate
16 W Jones St, Room 2304
Raleigh,NC 27601-1096
RE: Senate Budget impact on Hillsborough Passenger Rail station
Dear Mr. Speaker:
I'm writing to highlight and avert what may be an unintended negative consequence of an item in the
senate budget(Sec.35.12) that addresses how transit services (specifically light rail) are to be well
supported at the local and federal levels and limits the burden of financing rail infrastructure by the state.
While aimed primarily at light rail services, it appears that this section would upend funding for an
Amtrak station located in Hillsborough (STIP#P-5701).
The current State TIP includes full funding to build a passenger rail station in Hillsborough adjacent to the
existing rail infrastructure and served by Amtrak. Amtrak has assessed the stop location and determined it
was cost effective for them to provide service in Hillsborough, if the station was provided. This will re-
establish a missing link in intercity heavy rail service in the Carolina Crescent as well as allow
connections to the national heavy rail network. This project operates adjacent to the existing corridor and
doesn't trigger the need to expand capacity on the rail network or road network.
Our citizens already drive to Burlington and Durham to access this existing commuter rail service, which
is why we began the investigation for a station in town. Adding the station in Hillsborough makes it
feasible for more residents to select this option and stop driving in the congested I-85 and I-40 corridors.
This helps relieve pressure to widen these expensive facilities and takes advantage of existing capacity on
the rail network. The Hillsborough station has remarkably widespread support from citizens of all
political persuasions, and helps connect our more rural areas of county to the Triad, Triangle, and
Charlotte as well as points in-between and beyond. This investment benefits the entire state, not just
Hillsborough.
The town acquired the property for the station to be built and funded the conceptual design to inform the
environmental review of this project. Local funds are also committed through the local transit tax to this
project. The support for this project has been constant, both verbally and financially, since the process
was initiated in 2009, and is based on a non-political and empirical assessment of cost-benefits. The town,
the North Carolina Rail Road, Amtrak, and NCDOT staff have all worked together to study the impacts
and the best path forward. Station locations in Hillsborough and in Lexington complete a well-spaced and
planned network of rail access points along the existing corridor in North Carolina in the most efficient
and cost-effective manner, and contribute to an important multi-modal system of transportation important
for all of North Carolina.
101 East Orange Street • P. O. Box 429 • Hillsborough, North Carolina 27278
919-732-1270 • Fax 919-644-2390
6
We request that the budget provisions be amended so this important project can continue to move
forward.
The town of Hillsborough understands that the General Assembly has many difficult funding, operational,
and policy choices to make during this year's budget season. We appreciate your consideration for
amending Sec. 35-12 so the allocated funding for the Hillsborough Amtrak station can be preserved.
Please don't hesitate to contact me directly if you have questions or need additional information on the
rail station project. I can be reached at tom.stevens@,hillsboroughnc.org and 919-360-2249.
Sincerely,
Torn Sevens, Mayor
Cc: Rep. Verla Insko
Sen. Valerie Foushee
Rep. Graig Meyer
101 East Orange Street • P. O. Box 429 • Hillsborough, North Carolina 27278
919-732-1270 • Fax 919-644-2390