HomeMy WebLinkAboutAgenda_GGAF_11.05.2014Notice of Meeting for the
General Government and Finance Advisory Board
of the City of Georgetown
November 5, 2014 at 3:30 PM
at Georgetown Public Library Classroom, located at 402 West 8th Street,
Georgetown, TX
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Regular Session
(This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose
authorized by the Open Meetings Act, Texas Government Code 551.)
A Consideration and possible action to approve a Resolution documenting the City of Georgetown’s
support and creation of a Transportation Infrastructure Zone and entering into an Interlocal
Cooperation Act Agreement with the Lone Star Rail District to fund the future operation of
commuter rail service through a portion of revenue generated by the Transportation
Infrastructure Zone -- Bridget Chapman, City Attorney, Micki Rundell, Chief Financial Officer
and Edward G. Polasek, AICP, Transportation Services Director
CERTIFICATE OF POSTING
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice
of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public
at all times, on the ______ day of __________________, 2014, at __________, and remained so
posted for at least 72 continuous hours preceding the scheduled time of said meeting.
____________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
SUBJECT:
Consideration and possible action to approve a Resolution documenting the City of Georgetown’s
support and creation of a Transportation Infrastructure Zone and entering into an Interlocal
Cooperation Act Agreement with the Lone Star Rail District to fund the future operation of
commuter rail service through a portion of revenue generated by the Transportation
Infrastructure Zone -- Bridget Chapman, City Attorney, Micki Rundell, Chief Financial Officer
and Edward G. Polasek, AICP, Transportation Services Director
ITEM SUMMARY:
At the October 14, 2014 City Council Meeting, staff was directed to bring back all supporting
documents to consider a Resolution and Interlocal Agreement for the creation of the
Transportation Infrastructure Zone (TIZ) and document participation with the Lone Star Rail
District. Since that meeting, staff has met with representatives of the Lone Star Rail District to
determine the TIZ boundary and to negotiate terms of the Interlocal Agreement for Council’s
consideration. Staff has also worked to provide specific answers to questions raised by Council
member Fought concerning funding and operations of the commuter rail station.
Staff has provided a specific details concerning the attached interlocal agreement and resolution in
the Council member Fought questions and Financial and Program Analysis attachments. In brief,
the interlocal agreement and TIZ will:
Place 50% of the growth in property tax revenue in the TIZ into a City-controlled special
fund that will be paid to LSTAR when the meet specific obligations.
The City will pay an additional amount from the growth in property taxes, equal to 25% of
the growth in sales tax revenue in the TIZ into the same City-controlled special fund.
The total payment from those two sources is capped at the value of 75% of the growth in
property tax revenue in the TIZ. In other words, the sum of the two payments above can
never go above 75% of the total annual property tax revenue growth in the TIZ.
The remaining growth in property tax revenue, difference between growth in valuation and
sales tax collected in the area, in the TIZ will be used to fund local projects in the TIZ as
identified in the agreement
LSRD cannot access the funds until it meets two performance goals:
1. Within 2 years or by May 2017, LSRD must have completed local funding agreements with
the cities of Austin and San Marcos and the counties of Travis and Hays.
2. Within 6 years or by January 2021, LSRD must have an agreement in place with Union
Pacific Railroad to relocate its through freight, and a completed financial plan to pay for
project construction.
The only true expense to the City in the creation and operation of the LSTAR station will be
an internal roadway, which is identified as an eligible project in the local TIZ revenue, the
annual maintenance of the rail station (grounds and security, not tracks and trains) and
annual membership dues.
Guarantees a station location in Georgetown and a seat on the LSRD Board of Directors.
STAFF RECOMMENDATION:
Staff recommends approval of the Resolution documenting the City of Georgetown’s support and
creation of a Transportation Infrastructure Zone and entering into an Interlocal Cooperation Act
Agreement with the Lone Star Rail District.
FINANCIAL IMPACT:
See Financial & Program Analysis attachment
SUBMITTED BY:
Edward G. Polasek, AICP
ATTACHMENTS:
Description Type
Councilmember Fought Questions Backup Material
Resolution authorizing TIZ Resolution Letter
LSRD Area Impacts Report Executive Summary
Financial & Program Analysis Updated Cover Memo
Interlocal Agreement Updated Cover Memo
Councilmember Fought Questions Page 1
Concerns and Questions raised by Councilmember Fought
I support the decision of Council to continue our membership in the Lone Star Rail District
(LSRD) for another year. Part and parcel with that support is the Council’s decision to ask the
Georgetown Transportation Advisory Board (GTAB)1 to examine a number of aspects of our
participation, including various financial issues. So that there is no misunderstanding of what I
expect GTAB to consider, I am providing here a list of concerns and associated questions.
Please appreciate that these are my concerns and my questions, and may or may not be the
concerns and questions of other Council members. However, I believe it is important for me to
identify my perspectives at the outset of GTAB’s examination process. I will raise these specific
issues when the GTAB report is presented to Council. My purpose is to do my best to eliminate
surprises at the end of the process.
BASIS OF CONCERN #1: The proposed financial arrangements for funding our share of the
Operations and Maintenance (O&M) costs (estimated by LSRD to be $1 Million annually)
depend upon what I believe to be unrealistic assumptions on economic growth in the
immediate area surrounding the Georgetown LSRD station. The arrangement calls for the city
to obligate 50% of the new property tax revenue from the increased assessed value of
commercial property located within approximately 1/4 to 1/2 mile of the proposed station and
50% of the city share of the increase (over today) in sales tax revenue from the same area.
Question 1: What combination of increase in commercial property assessed value and sales
revenue is envisioned to provide the $1 Million in revenue to meet the LSRD requirement of $1
Million annually?
The proposed TIZ agreement has the following deal points, among others:
• The City will pay 50% of the growth in property tax revenue in the agreed-upon
Transportation Infrastructure Zone (TIZ) around the Georgetown LSTAR station
into a City-controlled special fund.
• The City will pay an additional amount from the growth in property taxes, equal
to 50% of the growth in sales tax revenue in the TIZ into the same City-controlled
special fund.
• The total payment to LSRD from those two sources is capped at the value of 75%
of the growth in property tax revenue in the TIZ. In other words, the sum of the
two payments above can never go above 75% of the total annual property tax
revenue growth in the TIZ.
• The remaining growth in property tax revenue in the TIZ will be used to fund
local projects in the TIZ as identified in the agreement.
Councilmember Fought Questions Page 2
• LSRD cannot access the funds until it meets two performance goals:
o Within 2 years or by May 2017, LSRD must have completed local funding
agreements with the cities of Austin and San Marcos and the counties of
Travis and Hays.
o Within 6 years or by January 2021, LSRD must have an agreement in place
with Union Pacific Railroad to relocate its through freight, and a
completed financial plan to pay for project construction.
• At either of those two points, if LSRD has failed to meet the goal, the City can
reconsider its participation in the project, and at its option extend the deadline
OR cancel the agreement, dissolve the TIZ, and put any collected funds into the
City’s General Fund.
For example, if there is $100 in property tax revenue growth in the zone, $50 would be
set aside in a city-controlled TIZ fund. From the $50 of remaining revenue growth in the
zone, an additional payment will be set aside, equal to 50% of the sales tax revenue
growth in the zone. The sum of the $50 payment and the payment equal to 50% of sales
tax revenue growth will not exceed the total $75 in property tax revenue growth. If we
assume, for example, that sales tax growth in the zone is $50, then an additional
payment of $25 would be set aside in the city-controlled TIZ fund. The final $25 would
be set aside the city-controlled TIZ fund to help pay for local city projects in the zone, as
identified in the agreement between the city and LSRD.
Once we agree to the TIZ formula, or have the ability to negotiate with LSRD, they will
begin modeling the land use and sales tax projections for the area to determine the
actual amount of new property tax revenue generated and project the new sales tax
revenue generated to determine what the revenue growth in the zone will be. The
modeling work will include an estimate of how much of the future value and revenue
growth in the zone is induced and/or enhanced by the presence of the rail station. The
analysis will also determine the point at which sales tax growth is projected to equal or
exceed 50% of the property tax growth. That will give the City an idea of how much
money we will have to fund additional transportation improvements in the area.
Besides the maintenance and security of the station platform and annual membership
dues, that is all the City will be asked to fund for the operations of the Rail District.
LSRD is not requesting a guaranteed payment amount, and is not requesting that the
City take on debt on its behalf.
Councilmember Fought Questions Page 3
Question 2: Is that combination realistic for Georgetown? (Note: a comparison to Wolf Ranch or
the Rivery project would be useful.)
Until we have the ability to negotiate with LSRD and review the financial model, we
will not know the value of the specific revenue streams. The additional sales tax and
associated development fees and utility revenue will have to be modeled to determine
the cost of City services. However, LSRD plans to scale the service level (and therefore
the cost of the service) with the total financial contribution from all TIZ areas – for
example those in Austin and San Antonio, and the other corridor cities and counties.
Therefore, it is a realistic revenue source.
An example of the LSRD Economic Impact Analysis from Hays County was included in
the October 14, 2014 Council item. That same type of report will be completed for the
Georgetown Area.
BASIS OF CONCERN #2. Georgetown will still have to provide standard city services to the area
within 1/4 to 1/2 mile of the station, but will have to do so after diverting $1 Million from the
new commercial property tax and sales tax revenues from that area to cover the O&M costs
(see above).
Question 3: How will the city cover the cost of providing those city services (i.e., replace the $1
Million which was diverted to O&M for LSRD)?
City services would experience a marginal cost increase for the area, and because much
of the area is expected to develop as commercial property, the increased revenues that
would normally be generated at the site should more than cover the typical cost
increases. When we complete the official financial model, this will be even more
apparent, because at this time only the HEB site carries a very high probability of
developing soon. Everything else can change significantly by the time the LSRD looks
to be operational, and will be influenced and possibly induced by the presence of the
rail station.
Much like the Hillwood Agreement, the additional revenue from sales tax, user fees
and economic activity would be expected to cover municipal operations in the area.
BASIS OF CONCERN #3. Georgetown would be obligated to construct the station (other than the
platform) and a parking facility in addition to other infrastructure (roads, utility lines, and so
forth).
Councilmember Fought Questions Page 4
Question 4: Approximately how much would it cost the city to construct that infrastructure?
(Note: I understand we have a preliminary staff estimate of approximately $14 Million.)
The only true expense to the City in the creation of the Station would be an internal
roadway connecting the station and parking lot being built by LSRD. Staff has
completed a list with this specific improvement and other roadway capacity
improvements that could be funded with revenue generated by the TIZ. Once the
financial modeling is completed, we will know how much revenue will be generated for
these projects. Exhibit D of the Interlocal Agreement includes all local projects
considered for funding with TIZ related revenue.
Question 5: What would be the source of funds for that effort?
Exhibit D of the Interlocal Agreement includes all projects considered for funding with
TIZ related revenue. If adequate funding is not available for these projects through TIZ
revenues, staff would continue to seek funding for these projects through traditional
sources such as Road Bonds, GTEC and State or Federal funding where appropriate.
The water, wastewater and electric facilities necessary to serve the project have
adequate time to be funded through the normal CIP and development process, as
service is not anticipated for 6 years or more.
BASIS OF CONCERN #4. Georgetown would normally provide some form of economic incentives
to the area surrounding the LSRD station in order to stimulate economic development.
However, under the proposed financial arrangements, we would already be committing (for an
indefinite period of time) $1 Million for O&M.
Question 6: What would be the expectation for city funds to support economic development,
and what would be the source of those funds for economic development in the vicinity of the
LSRD station?
The roadway improvements and CIP planning for the project area will provide most of
the incentives necessary for traditional development. However, we are not anticipating
traditional development in the area, so we would consider several options over the next
few budget cycles to provide incentives for the targeted type of development, higher
value mixed use/transit oriented development (TOD).
Councilmember Fought Questions Page 5
The first item would be to obtain the entitlements for the property. Staff would propose
a work program in next year’s budget process to complete the regulating
plan/ordinance following Chapter 4.11 of the UDC. The City may also consider
working with property owners in the area on creating a Public Private Partnership in
developing the TOD site.
BASIS OF CONCERN #5. Our overall resource commitment to the LSRD could squeeze out other
projects unless we significantly raised taxes. I am specifically concerned about the $60+ Million
backlog in voter-approved bond issues for Parks, Recreations and Roads, the soon-to-be-
considered renovation and revitalization of our airport (at what cost?), and our rapidly
increasing property-tax-supported debt.
Question 7: Can we flow these various obligations without increasing property tax or, if not,
then what are the projections for property tax increases to meet these obligations?
The City can flow the operations without a property tax impact, depending on your
perspective. In a model where everything develops with or without the LSRD, then the
costs associated with the LSRD imply a tax burden to the City in that it diverts revenue
away from other expenditures. However, if the financial model shows development
occurring at reduced value, or not at all, without the LSTAR station, then not having the
LSTAR station will create a tax burden to the City, while having the station will allow
the flexibility of lowering the tax rate.
When discussing modeling assumptions for the DART system with Dallas area
suburban communities, the responses the City received were very telling. First, the
stations in DART were located in areas that had been developed before, but had also
become vacated and in dire need of redevelopment. This meant that the infrastructure
was already in place, and having the rail station close by made the redevelopment easy.
However, many of the CFOs honestly believed that the development would have
happened even without the rail line, but perhaps just in a different part of the City.
Ultimately they concluded that it was impossible to prove the economic benefit before,
or even after, the rail was built, but that instead they signed off on the deal for
connectivity reasons. The Georgetown station location is different in that very little is
developed nearby, but it is also similar because Georgetown’s population ties into the
greater workforce that stretches from our City to San Antonio. That leaves two
possibilities for the results of the modeling - either nothing of significant value develops
around the station and Georgetown is just an end point on a commuter rail line that is
Councilmember Fought Questions Page 6
subsidized by the other cities, or Georgetown sees significant commercial development
that includes employment and destination centers and that added value more than
covers the expense of operating the rail line. Our best efforts will likely produce an
estimate somewhere in between those two results, but given the inputs we have to
work with the error range is going to be significant. Nobody can accurately predict the
impact of the rail station outside of a Broken Window Fallacy argument when it has
about 6 years left before all of the financing is in place, and the project has not
determined all of the final stations and service levels. All we do know is that the
ultimate long term development around that station will be different than what would
have developed without it.
BASIS OF CONCERN #6. There is no guarantee that the LSRD will place a station in Georgetown,
regardless of the outcome of the Environmental Impact Studies and/or our continued
membership.
Question 8: At what point will we know if Georgetown will get a station and who will make that
decision?
The City will not get a station if we do not create the TIZ. An EIS is underway to
determine the viability of the entire project. Federal and State funding will have to be
secured to build the line and stations. If all of these do not work out, LSRD has not met
its obligation under the proposed agreement and the City will then be able to use 100%
of the TIZ revenue generated to fund transportation improvements in the area as
outlined in the agreement, and will have the ability to terminate the agreement and TIZ,
and return the money to the General Fund.
Thank you very much for taking these concerns into account and I look forward to your results.
Sincerely,
Stephen O. Fought
Stephen O. Fought District 4
Resolution No. __________________
Lone Star Rail District Interlocal Agreement and TIZ Creation
Date of Approval: _______________
RESOLUTION NO. __________
A Resolution of the City Council of the City of Georgetown, Texas,
approving an Interlocal Agreement with the Lone Star Rail District to create
a Transportation Infrastructure Zone to fund the future operation of
passenger Rail service through a portion of revenue generated by the
Transportation Infrastructure Zone, and authorizing the Mayor to execute
same and City Secretary to attest.
WHEREAS, Section 173.256 of the Texas Transportation Code authorizes local
governments and intermunicipal rail districts to enter into interlocal agreements for the creation
of a Transportation Infrastructure Zone for the purpose of funding operations and local
improvements; and
WHEREAS, the Lone Star Rail District is an intermunicipal rail district in Central Texas,
planning commuter rail service from Georgetown to San Antonio; and
WHEREAS, the City of Georgetown’s 2030 Comprehensive Plan identifies an area
generally located around the Intersection of SE Inner Loop and Maple Street as Specialty Mixed
Use, intended for development of a Transit Oriented Development; and
WHEREAS, since the completion of the 2006 Conceptual Engineering Design Report and
Alternative Analysis Station Design Report, both by the Lone Star Rail District, this same area
has been identified as a station for the Lone Star Rail District’s proposed commuter rail line
extending from Georgetown to San Antonio; and
WHEREAS, the City of Georgetown desires to receive, review and participate in the
Economic Impact Evaluation and station design evaluation that will occur with participation in
the Lone Star Rail District; and
WHEREAS, the City of Georgetown desires local improvements surrounding the Station
location that could possibly be funded with additional revenue generated in the proposed
Transportation Infrastructure Zone.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS, THAT:
SECTION 1. The facts and recitations contained in the preamble of this resolution are
hereby found and declared to be true and correct, and are incorporated by reference herein and
expressly made a part hereof, as if copied verbatim.
Resolution No. __________________
Lone Star Rail District Interlocal Agreement and TIZ Creation
Date of Approval: _______________
SECTION 2. The attached Interlocal Agreement between the City of Georgetown and the
Lone Star Rail District (the “Agreement”) creating a Transportation Infrastructure Zone pursuant
to Section 173.256 of the Texas Transportation Code is approved.
SECTION 3. The attached File Report: Lone Star Rail District – LSTAR Station Area
Impact in the City of Georgetown and its findings are accepted and approved.
SECTION 4. The Mayor is hereby authorized to execute this resolution and Interlocal
Agreement, and the City Secretary to attest thereto.
SECTION 5. This resolution shall be effective immediately upon adoption.
RESOLVED this _______ day of October, 2014.
ATTEST: THE CITY OF GEORGETOWN:
__________________________ ______________________________
Jessica Brettle, City Secretary Dale Ross, Mayor
APPROVED AS TO FORM:
__________________________
Bridget Chapman
City Attorney
1
FILE REPORT
From: Ed Polasek
Date: Oct. 20, 2014
Topic: Lone Star Rail District – LSTAR Station Area Impact in the City of Georgetown
Introduction
This report is intended to provide to outline and document the anticipated land use or
growth impacts induced from the introduction of LSTAR passenger rail service by the Lone
Star Rail District (LSRD) in the southeast quadrant of the City of Georgetown (“City”). See
attached Lone Star Rail District Project Plan – LSTAR Passenger Rail Service for a
description of the proposed LSTAR service and its related capital investment and operating
& maintenance (O&M) expenditure estimates.
LSRD’s Georgetown rail station will be on the historic MoKan right of way at or near the
intersection of Southeast Inter Loop and Maple Street/Sam Houston Ave (see attached Lone
Star Rail District Transportation Infrastructure Zone – Georgetown Station map). The
station is approximately 1.7 miles from IH 35, 2.1 miles from the Williamson County
Courthouse and 5 miles from the City’s airport.
Discussion
The Regional Connection: Connecting Georgetown to the region with easy and adequate
transportation options is important to the quality of life and economic well being of the City
and its citizens. Regional mobility broadens the potential for individuals and business to
consider locating in Georgetown while connecting with friends, family and business
interests elsewhere within the region. Providing workforce connectivity in the Central
Texas area is essential given the region’s brand identification as an innovation and creative
class employment center.
Over time, regional competitiveness in business relocation decisions and general economic
conditions have consistently been found to be tied to the economic success of regional core
cities. The Central Texas region is no exception. In 2000 nearly 18% of all jobs in the Austin
region were located in Downtown Austin (the fourth highest concentration percentage in
the country) and in 2009 it was estimated
that 30% of all jobs in the Austin region
were located in four Austin urban core zip
code areas. The location of the University
of Texas, with its 51,000 students and
newly planned medical school, and the
Texas State Capital in the regions urban
core will continue to assure for the
foreseeable future that the region’s job
growth has a focus on access to Central
Austin for business and entertainment
related reasons.
10%
12%
14%
16%
18%
20%
2000 CBD Share of Total Urban Area
Employment
2
Traffic congestion issues affecting Central Texas have been well documented, including in
the August 2013 Texas A&M Transportation Institute report on the Mobility Investment
Priorities Project – Long-Term Central Texas IH 35 Improvement Scenarios. Excerpts from
the report include the following:
“The City of Austin is among the fastest-growing cities in the U.S., with surrounding counties
keeping a similar pace. Travel times from downtown Austin to Round Rock, where many
commuters live, range from 45 to 60 minutes during the average afternoon rush hour. And
yet, there is no agreement on what should be done to solve the travel time problem. The
long-range transportation plan for the Austin Metropolitan Area, the 2035 CAMPO
Metropolitan Transportation Plan (2035 CAMPO), shows no large-scale construction
improvement strategies for IH 35 through Central Texas. On-going IH 35 initiatives by the
Texas Department of Transportation (TxDOT) and the City of Austin are focused upon short-
and mid-term improvement strategies that address existing and near-term congestion with
potential high-return strategies.” (Executive Summary, page 1)
“The most dramatic finding is that IH 35 congestion will be severe even if a substantial
amount of roadway capacity (typically as lanes) is added.” (Executive Summary, page 5)
“Nonetheless, the over-arching and positive message of this examination is that Central
Texas does have options to address IH 35 congestion—using a combined “everything
including the kitchen sink” approach. Any substantial improvement must come from adding
capacity together with operating the system efficiently, new development patterns, and
travel behavior changes.” (Executive Summary, page 6)
The report also identified the importance of maximizing the multimodal options available to
Central Texans to address the growth driven potential for three hour travel times between
Round Rock and Downtown Austin by 2035 (similar travel times are anticipated between
San Marcos and Downtown Austin). Austin is ranked in the fifteen fastest-growing
congested urban areas in the country; it is estimated that on average between 100 and 130
people move to Central Texas every day. The CAMPO 2035 plan estimates the region will
grow from a population of 1.72 million in 2010 to 3.25 million in 2035. LSRD’s planned
LSTAR passenger rail service has consistently been identified in regional transportation
planning efforts, including in the recent Project Connect regional high capacity transit
planning initiative, as an important multi-modal transportation link and component to
addressing the growth in traffic congestion in the IH 35 corridor.
The Georgetown Connection: The southeast quadrant of the City is a relatively undeveloped
area of the City that is receiving economic development interest due in no small part to the
possibility for LSTAR passenger rail service by the Lone Star Rail District. The City
anticipates this interest will mature as the possibility and timing for the introduction of
LSTAR service advances. The City is considering the creation of a Transportation
Infrastructure Zone (TIZ) under Chapter 173 of the Texas Transportation Code to provide
funding support to the LSTAR passenger rail service (see attached Lone Star Rail District
Transportation Infrastructure Zone – Georgetown Station map). It is considered highly
likely that currently indentified development interests will be induced toward accelerated
redevelopment and new greenfield development in the area from the current agricultural,
industrial and large lot rural uses to higher density urban uses due to the rail investment by
LSRD and presence of the accompanying LSTAR passenger service. The attached
Georgetown Station – Potential Land Use Impact map and accompanying Tax Increment
Zone Parcel List provide an overview of anticipated land use changes considered as a result
of the presence of LSTAR service. A portion of the area’s potential for development as a
3
LSTAR related transit oriented development (TOD) was recognized by the City in 2008 as
the Maple Street Transit Oriented Development District (see UDC, Section 4.11.30; page 8
attached) and its Provisional Regulating Plan (see UDC, Section 4.11.040, Mixed User
District Zoning Amendments; page 22 attached).
All of the parcels in the TIZ are estimated to be within the 1.9 mile radius of the LSRD
station. The area identified for multi-use development in the TIZ is predominately within
the half-mile radius of the station. These distances are important because pedestrian
improvements within one-half mile and all bicycle improvements located within three miles
of the Georgetown LSRD station are considered to have a de facto physical and functional
relationship to the LSTAR passenger rail service under the Federal Transit Administration’s
(FTA) Final Policy Statement on the Eligibility of Pedestrian and Bicycle Improvements
Under Federal Transit Law (Federal Register, Vol. 76, No. 161, August 19, 2011). These
improvements are considered within the distances that people will travel by foot or by
bicycle to use a transportation stop or station. According to the separate Department of
Transportation (DOT) Policy Statement on Bicycle and Pedestrian Accommodation
Regulations and Recommendations, March 15, 2010, “walking and bicycling foster safer,
more livable, family-friendly communities; promote physical activity and health; and reduce
vehicle emissions and fuel use.”
Findings Summary: The parcels included as participating in the TIZ have been identified by
the City as those properties whose level and timing of redevelopment or new development
will most likely be impacted or induced by the LSRD investment and LSTAR service. The
establishment of an LSRD passenger rail station in the southeastern quadrant will raise the
importance and potential of this area due to its direct link to the region’s other growth and
activity centers and provide the City of Georgetown with a congestion proof modal link to
the Austin and San Antonio economic cores. The City anticipates the economic development
induced on these parcels will in turn require a number of City infrastructure improvements
within the TIZ to support the southwest quadrant area’s growth and provide adequate
access to the LSRD rail station. These improvements can also benefit from the support of
the delineated TIZ.
4
5
Lone Star Rail District Transportation Infrastructure Zone
Georgetown Station – Potential Land Use Impacts
6
Tax Increment Zone Parcel List
Land Use
Map Area PIN Acreage Property #
A R038792 54.178 R-20-0021-0000-0007
A R038886 87.954 R-20-0021-0000-0086
A R333382 4.288 R-20-0180-0000-0069
B R382189 37.761 R-20-0021-0000-0086B
B R382192 11.948 R-20-0180-0000-0069B
B R461845 51.068 R-20-0021-0000-0066A
C R038820 139.2881 R-20-0021-0000-0031
C R519352 1.379 R-20-0021-0000-0031D-B
D R039324 23.195 R-20-0180-0000-0032
D R518942 10.002
D R518943 9.478
E R524117 21.471
F R038805 18.2 R-20-0021-0000-0018
F R333390 12 R-20-0021-0000-0018E
F R340599 10.65 R-20-6075-0000-0001
F R340601 4 R-20-6075-0000-0002
F R432645 12.732
F R519356 107.187
G R038806 20.47 R-20-0021-0000-0018A
G R337830 19.236 R-20-9915-5000-0001A
G R389446 0.62 R-20-9915-5000-0002A
G R519357 6.708
H R039338 5.13 R-20-0180-0000-0045
H R039339 0.69 R-20-0180-0000-0045A
H R039342 11.3616 R-20-0180-0000-0047
H R485214 20.4874
H R493644 17.14 R-20-0180-0000-0045C
H R493978 4.3735
H R493982 0.7391 R-20-0180-0000-0047E
H R525847 12.772
H R525848 7.258
I R038787 1.29 R-20-0021-0000-0003
I R038788 4.944 R-20-0021-0000-0003A
7
I R038823 1.41 R-20-9931-0007-0001
I R038824 20 R-20-0021-0000-0034A
I R038840 152.848 R-20-0021-0000-0046
I R038862 9 R-20-0021-0000-0066
I R038881 9.69 R-20-0021-0000-0082
I R038898 1 R-20-0021-000H-0066
I R039871 11.61 R-20-0295-0000-0028C
I R039873 5.022 R-20-0295-0000-0028E
I R051147 1.44 R-20-9931-0007-0002
I R051149 1.432 R-20-9931-0007-0003
I R315253 1 R-20-0021-0000-0067A
I R331899 14.5 R-20-0021-0000-0018D
I R333369 1.995 R-20-0180-0000-0063
I R333370 5.732 R-20-0295-0000-0031
I R333371 6.607 R-20-0295-0000-0032
I R333372 3.6673 R-20-0295-0000-0033
I R333379 5.8 R-20-0295-0000-0035
I R333380 0.5 R-20-0295-0000-0035A
I R374498 0.5 R-20-0021-0000-0018DA
I R432644 15.97 R-20-0021-0000-0046B
I R449722 1.7 R-20-0295-0000-0035B
I R463668 9.96
I R472301 6.07 R-20-0021-0000-0046C
I R472302 3.93 R-20-0021-0000-0046BA
I R485231 73.6872
I R492868 1.47
I R494631 9.135
I R524818 14.766
I R525849 9.072
J R038813 82.6 R-20-0021-0000-0026
J R038884 94.49 R-20-0021-0000-0084A
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Lone Star Rail District Project Plan - LSTAR Passenger Rail Service
Lone Star Rail District (LSRD) will develop and operate a passenger rail service, LSTAR, with proposed
stations as shown in the attached Project Map plus any added alternate or skip stop stations, running
primarily in and/or adjacent to the current Union Pacific Railroad (UPRR) corridor between the Austin and
San Antonio metropolitan regions. The development of this service will be accomplished through the
construction and/or purchase of:
• Track construction and/or improvements to bring initial maximum passenger train speed to 79
mph (with provisions to increase that speed incrementally to 110 mph), including but not
necessarily limited to track geometry and/or condition improvements, train control system
components, and grade crossing infrastructure to meet vehicular and pedestrian traffic safety
requirements,
• Curve remediation to minimize speed limits imposed by track curvature,
• Additional track and related infrastructure (bridges, turnout, switch, and train control
apparatus, communications apparatus, and so forth) as guided by LSRD’s joint service planning
effort with UPRR, the goal of which is to identify the improvements needed to support reliable,
on-time regular passenger train service while maintaining UPRR’s ability to serve its customers in
the corridor,
• Stations, including at a minimum platforms, canopies, lighting, seating, passenger information
systems, ticket vending equipment (if necessary), and pedestrian bridges,
• Operations and Maintenance Facilities, to include the following:
o Maintenance shops and yards where LSTAR locomotives and passenger coaches will be
stored, inspected, maintained, cleaned, and repaired
o Operations Control Center where rail system control and communication operations
will be centered
o Maintenance of Way base to function as headquarters and storage for
engineering/infrastructure maintenance functions
o LSRD administrative headquarters to provide space for management and
administrative functions of the LSRD and the rail system.
• Layover facilities at one or other or both the ends of the line, or mid-line may be needed to
provide minor inspection and maintenance of rail rolling stock stored at passenger terminals, and
• Rail Rolling Stock, taking into account the conceptual initial service plan goal’s peak equipment
requirement plus a margin to account for “shopped” equipment (for inspection, maintenance, or
repair). Current plans include a sufficient number of locomotives, bi-level passenger cars, and bi-
level passenger/cab cars to run each of the conceptual service plans. In addition to passenger rail
rolling stock, LSRD will also acquire in the same fashion specialized track maintenance vehicles,
plus a sufficient fleet of highway vehicles to support operations supervision, maintenance, and
transit security functions.
Under current project development plans, one (1) station will serve the City of Georgetown. The
projected station location is a planning location only at this time, and final station location will be
determined through the National Environmental Policy Act (NEPA) process. The location of the Operations
and Maintenance Facilities has not yet been finalized. The final location of these facilities is subject to the
results of the NEPA process and LSTAR operational needs. Track and related infrastructure will be built on
the proposed LSTAR route to Georgetown, including a grade-separated connection between the UPRR
main line and the preserved MoKan Corridor; the final configuration of that infrastructure will be
determined through the NEPA and final design processes. LSTAR rail rolling stock will serve the
Georgetown rail station. Facilities, line improvements and rolling stock are also subject to available
capital budget resources and contracting or purchasing requirements.
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The LSTAR capital program and service levels will be commensurate respectively with the available capital
and operations funding levels. The LSTAR service is planned to be built in stages - LSRD will not delay
LSTAR passenger rail service initiation until the completion of the entire passenger rail project, but rather
commission and operate a minimum logical service (to be analyzed during the NEPA process), while
continuing to bring new segments online as they are completed. Project development may also include
the phasing of improvements within a segment in order to allow the initiation of service in a timely
fashion with available resources and allowing for ongoing or future development of subsequent phases
within a segment toward full completion of planned improvements. It is provisionally believed by LSRD
planners that the system will generally be built and put in operation from north to south, due to the likely
capital investment cash flows, the higher projected ridership in the Central Texas region, and fewer
construction challenges (based on conceptual engineering analyses). The schedule for initiation of project
development and service provision is to be determined by the completion of the NEPA process and
availability of capital funding.
Capital cost estimates are preliminary, and are based on the conceptual service development plan
(discussed below). Those costs are:
Initial Service Base Service Full Service
Entire Line $700 * $840 * $1,400 *
Georgetown Portion
of Line
$43 * $52 * $87 *
* All figures are in millions of dollars and are estimates of not to exceed amounts.
It should be noted that the costs above are not additive, but cumulative totals – i.e. to go from Initial to
Base Service, the incremental cost for the entire line is $140 million ($840 million - $700 million). Capital
cost estimates will be further refined during the NEPA process.
LSTAR service levels will be commensurate with the available funding from participating local jurisdictions
(cities, counties, college districts, etc.). For planning purposes LSTAR has prepared its operations and
maintenance (O&M) projections based on the following conceptual service level goals:
Initial Service Goal – 60 minute headway on peak
120 minute headway off peak
12 total round trips per weekday
Weekend and holiday service
Base Service Goal – 30 minute headway on peak
60 minute headway off peak
20 total round trips per weekday
Weekend and holiday service
Full Service Goal – 15 minute headway on peak
60 minute headway off peak
28-32 total round trips per weekday (including express trips)
Weekend and holiday service
For estimating purposes here, operations and maintenance costs have been determined for each
conceptual level of service target. The annual net O&M cost (after fares and miscellaneous revenue is
accounted for) is planned to be split into thirds, with one third paid by the taxing jurisdictions in the
smaller cities in the corridor, another third by the Austin/Travis County metropolitan region taxing
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jurisdictions, and the final third by the San Antonio/Bexar County metropolitan region taxing jurisdictions.
The following table details the net O&M cost projections, based on service plan targets:
Service Level Goal: Initial Service** Base Service** Full Service**
Smaller Cities $ 9.32 mil $ 12.60 mil $ 20.14 mil
Austin/Travis County Metro $ 9.32 mil $ 12.60 mil $ 20.14 mil
San Antonio/Bexar County Metro $ 9.32 mil $ 12.60 mil $ 20.14 mil
Total $ 27.96 mil $ 37.80 mil $ 60.42 mil
** All numbers are current year/present value estimated amounts and are not escalated
to year of expenditure.
Further allocation of the smaller cities portion of target costs to each of the smaller cities is estimated by
allotting 20% of the total smaller cities costs by the number of stations (full service and split service
stations) within each city and allotting the remaining 80% of total smaller cities costs by estimated city
ridership activity (departures and arrivals) for the planning horizon year of the LSTAR service (2035). The
following percentages (rounded to the nearest half of a percent) are the result of the smaller cities
allocation and would be applied to the total smaller cities portion of total O&M costs (1/3 of the
estimated total O&M costs) to evaluate performance of the proposed funding mechanisms against service
targets: 1) Georgetown 16%; 2) Round Rock 28.5%; 3) Buda 4.5%; 4) Kyle 13%; 5) San Marcos 15.5%; 6)
New Braunfels 13%; and 7) Schertz 9.5%.
The service levels are planning goals only. Should the actual funding support provided by the participating
local jurisdictions be unable to support the planned levels of LSTAR service, the service levels actually
provided will be reduced to a level commensurate with the provided local funding. All allocations are for
cost estimating purposes only and may be updated over time. Actual allocations may be based upon the
availability of funding from individual local government entities supporting the LSTAR service.
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PROJECT MAP
FINANCIAL ANALYSIS – LONE STAR RAIL DISTRICT (LSRD) TRANSPORTATION
IMPROVEMENT ZONE (TIZ)
TIZ Purpose: Finance operations and maintenance costs associated with light rail services between
Georgetown and San Antonio.
Guarantees a station location in Georgetown and a seat on the LSRD Board of Directors.
o Construction and opening of station dependent on overall project construction –
no real delay other than building line
o Any revenues from the TIZ increment would be held until federal funding was
secured
LSRD needs agreements with each entity in order to show local support of project prior
to federal funding
o Agreements from entities included in the original funding plan must be in place
by 03/01/2017
San Marcos (completed)
Austin
Hays County
Travis County
o Additional agreements being sought from:
Kyle
Buda
Georgetown
San Antonio
New Braunfels
Round Rock
Williamson County
LSRD must secure federal funding by January 2021
Federal funding is assumed for all capital construction costs
o Preliminary design of Union Pacific bypass
o Construction timeline to complete line 3 to 4+ years after funding received
TIZ funds system operation – NO CAPITAL COSTS
o Participating entities create TIZ and remit funds to LSRD who then uses all
funding to pay O & M expenses of system
o Agreement is for operations of system for 36 years
36 years allows for 30 year debt financing once federal funds have been
secured
• Option to extend agreement for 20 additional years if parties agree
Financial Commitment:
• City pledges “tax increment” (property valuation increase in zone since 01/01/2014)
o 50% of property tax revenue from the increment of the zone
o 50% of General Sales Tax (1%) in zone (up to 25% of property tax revenue in zone)
Not to exceed 75% of the incremental property tax revenue in the zone
• “In-Kind” costs – once Station is operational
o Utilities & maintenance of station
• Annual LSRD membership fees
o Currently $49,500
• At the time of station construction, $1.8 to $2.5M for internal road connections would be
funded by the City
o Funding for these projects would be General Fund or tax supported debt
• CITY WILL NEVER BE ASKED TO CONTRIBUTE MORE THAN 75% OF THE INCREMENT OF THE
CITY’S TIZ
NOTE: If LSRD does not secure funding after 6 years, the TIZ district is dissolved and reserved funds
released
• Funds could be used for other transportation improvements in the area or reinvested into the
City’s General Fund as determined by City Council
o Specifications could be added to the TIZ creation resolution regarding use of any
released or excess funds related to the zone
TIZ Commitment:
• Resolution creates the TIZ
o No other public notification or legislative action is needed
o “Floor” valuations set as 2014 Property Values (01/01/14)
• Properties have been identified for TIZ
o Create “Transit Oriented Development” – TOD zoning
Provides property owners with City intent for area to prevent future land use issues
o Potential revenue generation for financial support of the TIRZ
• Any non-spent increment could be set aside to fund improvements within the TIZ as directed by Council
SUMMARY:
The area in question is primarily underdeveloped, yet potential valuation growth is anticipated with the
completion of the FM1460 project and development of related properties. The only immediate financial impact
is the on-going $49,500 LSRD annual dues. Financial outcomes will be based on whatever development occurs,
with limited financial risk to the City. If funding is secured, the City will need to construct internal road
improvements necessary to serve the station. If successful, future improvements such as parking structures
would also be required, and also funded by the City. If development is sluggish or does not meet expectations,
the City has minimal risk beyond what has already been described. (Primarily related to road improvement
costs associated with the site) All current revenue being received today from this area will continue, with the
recognition of additional revenues from sales tax and other sources if the project develops as planned.
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INTER LOCAL COOPERATION ACT AGREEMENT
Between The
CITY OF GEORGETOWN AND LONE STAR RAIL DISTRICT
This Interlocal Cooperation Agreement is authorized by Chapter 791 of the Texas
Government Code and by Chapter 173 of the Texas Transportation Code (Chapter 173)
and is by and between the City of Georgetown, a Texas home-rule municipal
corporation (City) and Lone Star Rail District, a Texas Intermunicipal Rail District
(LSRD) (Parties) and has an effective date of October 28, 2014.
RECITALS
This agreement (Agreement) is an interlocal agreement authorized and governed
by the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code. Each
party represents and warrants that in the performance of its respective obligations as set
forth in this Agreement, it is carrying out a duly authorized governmental function, which
it is authorized to perform individually under the applicable statutes of the State of
Texas and/or its charter. Each party represents and warrants that the compensation to be
made to the performing party contemplated in this Agreement are in amounts that
fairly compensate the performing party for the services or functions described in this
Agreement, and are made from current revenues available to the paying party.
Chapter 173 authorizes local governments to enter into interlocal cooperation
agreements with intermunicipal rail districts to perform governmental functions, such
as the creation of a Transportation Infrastructure Zone. A transportation infrastructure
zone establishes a mechanism for a local government to capture increments of ad
valorem taxes from the increased tax revenue attributable to the construction and
operation of an intermunicipal rail system within the territory of the participating local
government.
LSRD and the City wish to create a transportation infrastructure zone to facilitate
the City 's contribution of financing for the LSRD rail system. The zone created by
LSRD and the City (Zone) will be comprised of the one LSRD rail station that is
planned to be located within the City's territory. The City will contribute tax increment
financing for the design, construction, operation, and maintenance of infrastructure
within the Zone, as stated in this Agreement. (Each discrete element of infrastructure for
which increment financing will be used in this Agreement is referred to below as
"Project ").
LSRD wants a transportation infrastructure zone created on or before December
31, 2014 to establish the tax increment base and also wants a method of providing
financing for rail purposes within the Zone to be established at this time. The City and
LSRD acknowledge that creating the Zone and establishing the date for determining the
tax increment base on or before December 31 provides significant value to LSRD and that
establishing a mechanism for financing the Projects in the Zone at this time is also of
significant value to both parties. The proposed Transportation Infrastructure Zone has
been reviewed by the City and is considered by it to include properties whose timing and
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level of development will be directly impacted for the positive by the establishment of a
passenger rail station by LSRD.
In consideration of the premises and the mutual covenants set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
DEFINITIONS
1. “Agreement” means this Interlocal Agreement approved by the Parties as shown in
Exhibit "A".
2. “Captured Appraised Value” – The value of the taxable property in the Zone for a
taxable year as of December 31 less the value of the Tax Increment Base.
3. “Project Plan” is the plan by Lone Star Rail District for transportation facilities and
related improvements in or related to service in the Territory of the local
government and is attached to this Agreement as Exhibit "B".
4. “Tax Increment” – Taxes levied and collected on the amount of the Captured
Appraised Value on taxable property within the Zone.
5. “Tax Increment Base” – The appraised value of all taxable property located in the
Zone as of December 31st of the first year during which this Agreement is effective.
6. “Tax Increment Payment” shall be made semi-annually on March 1 and September
1 (or the first business day thereafter).
7. “Territory” is the city limits of the City.
8. “Zone” means the Transportation Infrastructure Zone and the area within the Zone, as
defined on the Exhibit "C" to this Agreement. If there are separate stations in the
Zone, the separate areas may be referred to by the station name portion of the Zone.
A. TERM
1. The initial term of this Agreement is 36 years and may be extended for an additional
20 years upon approval by the City Council and LSRD.
2. No later than two years (24 months) before the end of the initial term of this
Agreement, the City Council will consider and vote on whether to approve an
extension of the term. LSRD will notify the City of the approaching end of the initial
term of this Agreement and the option to extend the agreement for an additional 20
years no later than two and a half years (30 months) before the initial termination
date.
3. In the event the Council votes to not exercise an extension, the City shall provide
LSRD a written notice no later than 30 days following the Council action stating its
intent to not extend the term.
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4. It is the intent and understanding of the Parties that the obligations of each party
under this Agreement shall remain effective only so long as and provided that there
are current revenues available to the paying party for the purposes of this Agreement.
B. GENERAL OBLIGATION OF EACH PARTY
1. LSRD's Requirements:
a. Measure of Viability and Timelines
i. Measure for Determining Project Viability: LSRD has a contractual
agreement or agreements with Union Pacific (UP) for transfer of ownership
of Union Pacific's existing rail right of way to or for the benefit of LSRD
and LSRD has secured all necessary capital funding for the proposed rail
bypass and the proposed passenger rail transportation facilities necessary to
initiate service. LSRD also has a financial plan and commitment for
funding its operations, capital improvements plan, and repayment for any
loans or debt related to its capital funding.
ii. Regional Cooperation Timeline: If by two years from the execution of this
Agreement or by May 1, 2017, whichever is the later, the cities of Austin
and San Marcos and the counties of Hays and Travis have not approved an
interlocal agreement for participation in funding the operation of the
proposed rail transportation facilities, then the City or LSRD, at either 's
option, may terminate the Agreement and all funds accumulated in the
City's Rail Tax Increment Financing Fund will be available for Council to
redirect to any lawful municipal purpose.
iii. Project Timeline: If by six years from the execution of this Agreement or by
January 1, 2021, whichever is the later, the LSRD has not met the Measure
for Determining Project Viability, then the City or LSRD, at either's option, may
terminate the Agreement and all funds accumulated in the City's Rail Tax
Increment Financing Fund will be available for Council to redirect to any lawful
municipal purpose.
b. Construction Requirements
i. LSRD will design and plan the transportation facilities and related
improvements that are to be constructed in the Zone in a manner consistent
with the Project Plan in effect on the Effective Date of this Agreement. The
plans and specifications for the infrastructure shall comply with all federal,
state, and local design and construction standards, including the Texas
Accessibility Standards, and the applicable provisions of the Americans with
Disabilities Act (ADA), and rail and traffic safety standards, in effect at the
time of construction.
ii. The City will design and plan the transportation facilities identified on Exhibit
D (“City Projects”) and related improvements that are to be constructed in the
Zone in a manner consistent with the Project Plan in effect on the Effective
Date of this Agreement as applicable. The plans and specifications for the
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infrastructure shall comply with all federal, state, and local design and
construction standards, including the Texas Accessibility Standards, and the
applicable provisions of the Americans with Disabilities Act (ADA), and rail
and traffic safety standards, in effect at the time of construction.
iii. The plans and specifications for transportation facilities and related
improvements shall be subject to the City's review as provided by statute,
code, and applicable local laws; provided, however, the plans and
specifications for utility infrastructure for utilities that will be supplied by
LSRD (including, without limitation, electric and thermal) shall be in
accordance with LSRD requirements and subject to City approval per city
code. LSRD agrees to consult with the City with respect to the design aspects
of the transportation facilities and related improvements not directly governed
by City code that relate to community integration and general aesthetics. To
the extent commercially reasonable and within the financial capacity of
LSRD, LSRD shall endeavor to implement the City's recommendations with
respect to those design aspects of the transportation facilities and related
improvements.
iv. All sets of plans, as-built drawings, and specifications required to be provided
to the City in this Section and elsewhere in this Agreement shall be delivered
to the City as complete sets of print and electronic drawings. The electronic
drawings shall be in a program format agreed upon by the Parties.
v. The City will coordinate with LSRD in the design and construction of all
transportation infrastructure directly impacting LSRD’s Project that it is
responsible for constructing under this Agreement, including providing sets
of plans, specifications and as-built drawings in a timely fashion.
vi. The plans and specifications for transportation facilities and related
improvements in the Zone shall include all track improvements and all other
improvements as set forth in the Project Plan. The plans and specifications for
the transportation facilities and related improvements shall comply with all
federal, state, and local design and construction standards, including the Texas
Accessibility Standards, and the applicable provisions of the Americans with
Disabilities Act (ADA), and rail and traffic safety standards, in effect at the
time of construction.
vii. LSRD's obligation to comply with the Project Plan is subject to the City's
provision of funding pursuant to Section B.2.b. of this Agreement, and to
LSRD's right to terminate this Agreement. LSRD agrees to provide prior
written notice of any proposed material or substantial change to the scope of
the work, cost estimates, or project schedule for the Project Plan that is not
caused by an event of Force Majeure, as defined herein. Material or
substantial changes are those changes to the Project Plan that are reasonably
anticipated to increase the City’s costs of participation or increase the costs of
City Projects. LSRD shall have the right to amend and modify the Project
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Plan without providing prior written notice if the proposed change is not a
material or substantial change.
The City shall have a period of 45 business days from the date of receipt of
such notice of a material change to provide comments and objections to the
proposed change. The absence of written objections or comments by the City
will constitute approval of the proposed material change by the City. If the
City provides written notice to the LSRD that it objects to the proposed
material change, and the objection, as set out in the notice, is not resolved
within 45 business days from the date of such notice, then the City and LSRD
shall meet to resolve the noticed objections.
If the City and LSRD are unable to resolve the objections, no change to the
Project Plan shall be made which has the effect of increasing the City's costs
of participation or increasing the costs of City Projects. LSRD shall repair or
otherwise make the city whole for any damage to City Property that is the
result of its development or construction activities under the Project Plan.
LSRD shall select the use of the City’s electric utility service for the operation
of its constructed passenger rail station facilities within the City when given
the option of doing so between alternative electric services providers.
c. Excess Funds and Limitations on Funds.
When the Zone is in operation and Tax Increment Payments are being made,
LSRD will annually identify any excess funds it receives that are not needed for
operating reserves, operations and maintenance, or for capital or equipment
replacement of its Project and return the excess funds to the City for redeposit
into the Rail Tax Increment Financing Fund established under Section B.2.a of
this Agreement.
2. City's Requirements:
a. Rail Tax Increment Financing Fund
The City shall establish a Rail Tax Increment Financing Fund (“Tax
Increment Fund”) as an interest earning Special Revenue Fund, to account for
the property tax increment revenue that is collected in the Transportation
Investment Zone related to the proposed rail station within the territory of the
City. The property tax increment revenue plus all interest earnings in the Tax
Increment Fund will accumulate for potential future use in accordance with the
terms of this Agreement as the City's contribution of financing for the LSRD
rail system and related transportation facilities. The City may terminate, suspend
participation in, or withdraw from this Agreement as stated in Section A.4,
Section B. 1, and Section E. 1. In the event the City terminates, withdraws, or
suspends its participation in this Agreement, the City Council may redirect
accumulated balances in the Tax Increment Fund to any lawful municipal
purpose.
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b. City’s Participation Level
i. The City’s percent property tax increment participation level to be collected
and deposited into the Tax Increment Fund shall be one-hundred percent
(100%) of the Tax Increment.
ii. The Tax Increment shall be allocated for payment to LSRD or for use by the
City for the City Projects as stipulated in this Agreement.
iii. The City shall maintain custody and manage any and all funds deposited in
the Tax Increment Fund. LSRD shall have no access to, control over, nor
any right to manage the Tax Increment Fund.
iv. Preexisting Economic Development or Tax Payment Agreement. If any
property is included within the Zone and at the time of inclusion within the
Zone, the property is under a preexisting TIF district, 380/381 economic
development agreement or tax abatement agreement (“Preexisting
Agreement”), by one or more Parties, the property under the Preexisting
Agreement will contribute Tax Increment Payments to the Tax Increment
Fund as to the respective Party for the duration of the Preexisting Agreement
at an amount equal to the net difference between the Preexisting Agreement
payment obligation and the Tax Increment Payment. After expiration of the
Preexisting Agreement, the Tax Increment Payment shall be governed by this
Agreement. Subsequent to the effective date of this Agreement, the City shall
not grant any economic development benefit or enter into any economic
development agreement that would result in a reduction in its Tax Increment
Payment of the Tax Increment Fund.
c. City’s Payment to LSRD from the
Rail Tax Increment Financing Fund
i. Only the revenue sources or operational support (other than appropriated
annual membership payments) designated in this Agreement will be used or
provided by the City for its contribution of financing for the LSRD rail
system and its operations. Payments to LSRD shall never exceed deposits by
the City into the Tax Increment Fund authorized under B.2.b of this
Agreement plus Tax Increment Fund interest earnings.
ii. The City’s Tax Increment Payment to LSRD from the Tax Increment Fund
shall be fifty percent (50%) of the Tax Increment unless otherwise stipulated
in this Agreement.
iii. In addition to the Tax Increment Payment to be made by the City pursuant to
the preceding section, the City shall make an additional payment to LSRD
from property taxes collected on property in the Zone and deposited into the
Tax Increment Fund on the dates provided for payments into the Tax
Increment Fund based on the following calculation:
a) The City shall determine the general fund’s one percent (1%) local
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rate sales tax revenue collected by the City for the year of the Tax
Increment Base and the amount of corresponding local rate sales tax
revenue collected by the City from taxable activities within the Zone
for the previous calendar year. The difference in local rate sales tax
revenue collected between the Tax Increment Base year and the prior
calendar year is defined as Additional Sales Tax Revenue.
b) The City shall pay into the Tax Increment Fund a total annual amount
equal to fifty percent (50%) of the amount of Additional Sales Tax
Revenue.
iv. Notwithstanding the preceding provisions of Sections B.2.c, the City’s Tax
Increment Payment to LSRD from the Tax Increment Fund shall not exceed
seventy-five percent (75%) calculated on a yearly basis of the Tax Increment
unless otherwise stipulated in this Agreement.
v. Until the conditions in the Measure for Determining Project Viability are
met, no monies shall be disbursed to LSRD from the Tax Increment Fund.
vi. Once the conditions in the "Measure for Determining Project Viability"
are met, LSRD may request reimbursements for uses of the Tax Increment
Fund consistent with Section B.2.c of this Agreement. Requests for
reimbursement must be made in a form approved by the City and shall be
submitted to the City 45 days or more before the date of a Tax Increment
Payment. The City shall reimburse LSRD only for Projects designed and
constructed as stated in Section B.l.b Construction Requirements, above.
Reimbursements may be used only for the purposes stated in Texas
Transportation Code Section 173.256 (e) "Financing of Certain
Transportation Infrastructure," which currently reads as follows:
a) To provide a local match for the acquisition of right-of-way in the
territory of the local government; or
b) For design, construction, operation, or maintenance of
transportation facilities in the territory of the local government.
vii. During the 24 months before the initiation of passenger rail services, LSRD
may request funding consistent with Section B.2.c of this Agreement for
reasonable and necessary start-up costs that are allowable under Texas
Transportation Code Section 173.256 (e), excluding rolling stock. These
costs may include costs for staff necessary to drive and test rail equipment
functionality to meet Federal inspection requirements, security service and
insurance on rail facilities. Requests for funding must be made in a form
approved by the City and shall be submitted to the City 45 days or more
before date of a Tax Increment Payment. Reimbursements may be used
only for the purposes stated in Texas Transportation Code Section 173.256
(e) "Financing of Certain Transportation Infrastructure".
viii. When LSRD begins providing passenger rail service to City of
8
Georgetown residents, the City will begin making Tax Increment
Payments of the property tax increment revenue consistent with Section
B.2.c of this Agreement plus its prorated share of interest earnings collected
and deposited in the Tax Increment Fund to Lone Star Rail District
semi-annually on March 1 and September 1 (or the first business day
thereafter). In addition, the first scheduled payment will include any
accumulated balance in the Tax Increment Fund.
d. City Projects
Funds deposited or held in the Tax Increment Fund that are not to be paid to LSRD
under Section B.2.c of this Agreement may be withdrawn by the City for
reimbursement of the design, construction, operation, and maintenance of the City
Projects described in Exhibit D,
e. In-Kind Contributions by the City to LSRD
i. In addition to the tax increment funds provided herein, City shall provide for
all stations served by the LSRD within the portion of the Territory located
within the city limits of the City custodial services, maintenance of the station,
platform, grounds and landscaping, and expenses related to utilities (water,
electric, wastewater services and trash removal) and security. The City shall
maintain the stations at a regular level of cleanliness, maintenance and repair
as if they were a City facility and to a level at least equal to that maintained
for its other facilities or offices where the public conducts business with City
staff, such as public libraries, utility bill payment offices, development
permitting offices and city clerk or secretary office. A maintenance schedule
and other standards deemed necessary for these services as well as the City’s
legal right for access shall be set out in a separate agreement between the City
and LSRD.
ii. The City shall waive or be responsible for all City fees associated with the
development of LSRD transportation facilities and/or related infrastructure,
including those items identified to be constructed or purchased in the Project
Plan.
iii. The City will initiate in a timely fashion, and be the applicant for the zoning
mutually determined necessary by the Parties for the real property used in the
construction and/or operation of LSRD transportation facilities and related
infrastructure within the Territory.
iv. To the extent legally permissible under state law, the City shall grant, dedicate
or contribute to LSRD, without cost, the use of or necessary property rights
for its real property and rights of way necessary for the Project Plan, including
any City owned temporary or permanent station site within the Territory and
City owned rail right of way to LSRD. The grant, dedication or contribution
of City owned real property or rights of way to LSRD shall be an in-kind
contribution and consideration for the provision of services from LSRD and
shall be available for use by LSRD as a match for federal or state funding.
9
f. No Other Funding Obligation
Except for contributing its respective Tax Increment Payments to the Tax
Increment Fund and related interest earnings and providing its In-Kind
Contributions as set out in this Agreement, the City shall not have any obligation
or responsibility for any costs or expenses associated with the development of the
Zone or the implementation of the Project Plan, including, without limitation, any
obligation to pay or repay any debt.
g. City's Economic Development Agreements
Subsequent to the effective date of this Agreement, the City may grant
economic development agreements or create other tax or fee agreements for
property within the Zone . Such agreements shall not reduce the City's
participation level established pursuant to Section B.2.b. of this Agreement.
The City will inform LSRD of public meetings and hearings relating to these
agreements so that it may inform the City of any impact such an agreement may
have on the operations of the Project.
h. Project Management
i. The City Manager or his designee (the "City's Director") will act on behalf
of the City regarding the City's responsibility under this Agreement with
respect to the development, maintenance and operations of projects within
the Zone and shall coordinate with LSRD, receive and transmit information
and instructions, and will have complete authority to interpret and define the
City's policies and decisions with respect to the Parties' obligations and
performance under this Agreement. The City's Director may designate a
City Project Manager and may designate other representatives to transmit
instructions and act on behalf of the City with respect to the Parties'
obligations and performance under this Agreement.
ii. The Executive Director of LSRD or his designee (the "LSRD's Director")
will act on behalf of LSRD with respect to the development, maintenance
and operations of projects within the Zone, and shall coordinate with the
City, receive and transmit information and instructions, and will have
complete authority to interpret and define LSRD's policies and decisions
with respect to the Parties' obligations and performance under this
Agreement. LSRD's Director will designate a LSRD Project Manager and
may designate other representatives to transmit instructions and act on
behalf of LSRD with respect to the Parties' obligations and performance
under this Agreement.
iii. If a disagreement between the City and LSRD arises regarding any
requirement or provision of this Agreement, and the disagreement is not
resolved by the City Project Manager and the LSRD Project Manager, it
shall be referred as soon as possible to the City's Director and LSRD's
Director for resolution. If the Directors do not resolve the issue, it shall be
referred as soon as possible to the City's City Manager and LSRD's
Executive Director for resolution.
10
i. City Actions regarding the Zone
i. After a Zone is established, the City will endeavor to support station area
planning and development implementation that may result in multi-use/transit
oriented development (TOD) or other rail supportive growth within each
Zone. City staff will inform the Planning and Zoning Commission and the
City Council of the conformance of their pending decisions on land
use/zoning within the Zone with multi use/TOD or other passenger rail
supportive uses within the Zone.
ii. If appropriate, the City will support and work with LSRD, as necessary, for
the establishment and use of other funding mechanisms (such as public
improvement districts or municipal management districts) that allow private
property owners within the Zone to participate in funding the establishment
and ongoing provision of rail service in the Zone.
j. Membership
The City shall establish and maintain its membership with LSRD in good
standing including paying any applicable LSRD membership fee.
Membership in LSRD will entitle the City to have representation on the LSRD
Board of Directors in conformance with Chapter 173. Annual membership fee
levels are established by the LSRD Board and are currently $49,500.00
annually.
3. Reporting Requirements of Each Party
a. LSRD Reporting Requirements
i. LSRD shall provide the City access to its budget calendar, proposed annual
budget (operating and capital), and give written notice of adoption of Rail
District budgets (operating and capital). LSRD shall provide access to both
proposed and approved budgets.
ii. Once the Measure for Determining Project Viability has been met, LSRD
shall prepare an annual report to be provided to all Parties no later than 180
days following the District's year-end (September 30). Such report shall
include, at a minimum, the audited financial statements for LSRD, Report on
Internal Controls, Single Audit Report, Report on any and all Transportation
Infrastructure Zone Funds, Capital Program Status Report, and trend data
covering operational statistics and service level metrics.
iii. Every five years after the effective date of this Agreement, LSRD shall
provide no later than 180 days following the District's year-end (September
30) a written, comprehensive 20 year financial forecast covering operations
and capital programs accompanied by the underlying forecast assumptions.
This forecast shall also include a comprehensive description of rail service
levels, anticipated changes in service levels, and the timing of such changes.
b. City Reporting Requirements
11
The City shall provide LSRD with annual reports on the City's Rail Tax
Increment Financing Fund including, but not limited to, annual tax increment
revenue, interest earnings, assessed valuation for properties in the Zone,
accumulated balances in the Tax Increment Fund, Tax Increment Payments
and reimbursements for City Projects.
c. Right to Audit
i. LSRD agrees that representatives of the City Auditor, or other authorized
representatives of the City, shall have access to, and the right to audit,
examine, or reproduce, any and all records of LSRD related to the
performance under this Agreement. LSRD shall retain all such records for a
period of three years after final payment on this Agreement or until all
audit and litigation matters that the City has brought to the attention of
LSRD are resolved, whichever is longer. LSRD agrees to refund to the
City, in accordance with a schedule reasonably agreed to by the Parties,
any overpayments by the City to LSRD disclosed by any such audit. LSRD
will pursue reimbursement of overpayments by LSRD to contractors
discovered by a City audit in a timely manner consistent with passenger rail
industry practices. LSRD shall include the preceding language in all
contractor agreements entered into in connection with this Agreement.
ii. The City agrees that authorized representatives of LSRD shall have access
to, and the right to audit, examine or reproduce any and all records of the
Tax Increment Fund related to the performance under this Agreement.
The City shall retain all such records for a period of three years after final
payment on this Agreement or until all audit and ligation matters that the
LSRD has brought to the attention of the City are resolved, whichever is
longer. The City agrees to pay to LSRD any underpayments disclosed
by any such audit.
iii. In the event, there is an additional calculation or redetermination of payments
by the City or LSRD, the Party providing payments shall have no obligation
to make any additional payment if the redetermination or recalculation occurs
more than eighteen (18) months after the date of a payment.
4. Management of the Project and Operations
a. The Rail District is the only Party with any responsibility for managing or
administering the Project or determining the schedule and operations of
transportation improvements. The City understands that the service currently
contemplated for the City may include “skip-stop” or “split-stop” service as
defined in Exhibit “B” – Project Plan. The City may inspect Project sites and
review Project plans and drawings at times and intervals, and comment on the
Project. The City shall manage the Zone prior to LSRD successfully meeting the
timeline provision in Section B.1.a, Project Timeline, above. After LSRD has met
the timeline provision of Section B.1.a, Project Timeline, the Rail District shall
manage the Zone.
12
b. Once LSRD initiates regularly scheduled rail service to a permanent station
facility within the City, LSRD will make every reasonable business effort to
continue at least the initial level of transportation service at the station except in
response to an event of Force Majeure or the relocation of service to a
replacement permanent station facility or if the LSRD determines the continuation
of service may pose a risk to the health, safety or welfare of the public, LSRD’s
transportation services users or LSRD employees and contractors.
Notwithstanding any other provision of this Agreement, LSRD shall not be
obligated to provide service to the City if the City’s funding under this Agreement
is discontinued or terminated for any reason.
C. TRANSPORTATION INFRASTRUCTURE ZONE
1. Property Included Within the Zone. All property designated on the maps or in the
list of properties attached as Exhibit "C" shall be included within the Zone.
a. Property under common ownership, identified as Undivided Property on
Exhibit "C" shall be included within the Zone. Such property shall be included in
the Tax Increment on a prorated basis for the acreages designated for the
property on Exhibit "C" or for the subdivided portions of the property at least
50% within one-half (1/2) mile radius of the corresponding station property or
50% within one-quarter (1/4) mile radius for the corresponding Station property.
b. Property designated as tax exempt shall be included in the Zone but shall not be a
part of the Tax Increment until the beginning of the year during which it is no
longer designated as tax exempt.
2. Station Locations. Final Station location decisions are subject to compliance with
National Environmental Policy Act (NEPA) requirements. In the event a final
determination is made under NEPA to adjust, extend or alter the station location
in relation to a Zone designated on the maps as Exhibit "C", the Parties agree that
they shall amend the description of the Zone and the maps and listing of
properties in Exhibit "C" to reflect property influence by the station location and
LSRD rail service, including at a minimum properties within the one-half (1/2) mile
radius of the corresponding station platform, subject to the terms and conditions of
this Agreement. LSRD shall be obligated to notify the City as soon as feasible if and
when a NEPA determination is made to adjust, extend or alter a station location.
Other than agreeing to amend the description of the Zone, the City shall not be
responsible or liable for any costs or work associated with adjusting a station location
as directed pursuant to NEPA.
D. PERIODIC REVIEW OF AGREEMENT
1. The proposed rail system is currently in the planning phase. Beginning with five
years following the Effective Date of this Agreement, and every five years thereafter,
the City and LSRD shall re-evaluate the provisions of this Agreement to determine
if any revisions are needed to address changes in operations, capital programs,
service levels, or other factors that were not anticipated during the planning phase
or prior five-year period. As a result, amendments to the Agreement may be needed.
13
2. Equity of Funding Effort. LSRD agrees that interlocal agreements for funding of
the Project involving other cities and counties in Central Texas will contain funding
agreements based on singular funding concepts or providing equivalent funding from
other sources. As other Central Texas cities and counties sign interlocal agreements,
the C ity will be provided copies of such interlocal agreements by LSRD and for
a period of 60 calendar days after the agreements are provided, the City may object
in writing that the funding efforts do not provide equity of effort between the
corresponding local government entities. If the City 's objections are not resolved
within 60 calendar days after notice to LSRD, the City, until the objection is
resolved, shall have the right to suspend payment of that portion of their Tax
Increment Payment that the City deems to be unequal in effort to the
corresponding local government entities.
E. GENERAL TERMS AND CONDITIONS
1. Termination
Notice of any claims of material breach shall be given in writing to the other Parties,
identifying the breach claimed with particularity, and stating the time permitted
for cure, such time to be commercially and legally reasonable. A claim of breach not
cured in a commercial and legal time is sufficient to constitute termination of this
Agreement. Without waiving any legal rights, the Parties agree to voluntary
mediation of any disputes.
2. Force Majeure
a. Each party to this Agreement agrees to excuse the failure of another party to
perform its obligations under this Agreement to the extent that failure is caused
by an event of Force Majeure. Force Majeure means acts and events not within
the control of the party, and which the party could not use due diligence to avoid
or prevent. Events of Force Majeure include acts of God, strikes, riots, sabotage,
civil disturbances, epidemics, acts of domestic or foreign terrorism, lightning,
earthquakes, fires, storms, floods and landslides. Force Majeure does not
includ e economic or market conditions, which affect a party's cost, but not its
ability to perform.
b. The party invoking Force Majeure shall give timely and adequate notice to the
other party, by facsimile transmission, or telephone confirmed promptly in
writing , or electronic mail, of the event. The party shall use due diligence to
remedy the effects of Force Majeure as soon as possible. If a party's
performance is delayed by the event of Force Majeure, the time for
completion of obligations will not exceed twenty-fo ur (24) months
unless the Parties mutually agree to extend the time for completion necessary
to overcome the effect of the Force Majeure event.
3. Severability
If a term or provision of this Agreement is determined to be void or unenforceable
by a court of competent jurisdiction, the remainder of this Agreement remains
effective to the extent permitted by law.
14
4. Notices
Any notices to be given under this Agreement shall be considered delivered (i) upon
personal service upon the person designated in this Agreement for such notice;
(ii) within three days of deposit if mailed by first-class United States mail, postage
prepaid, registered or certified, and addressed to the person designated for receipt
of notice; or (iii) one business day after being sent for overnight delivery by a
reputable commercial courier having the ability to track shipping and delivery of the
notices. In cases where there is an emergency or other need for immediate notice
to be given, written notice may be faxed to the person designated for service,
provided a written copy of such notice is also delivered promptly to such
designated person by one of the three means identified above.
. . . .
The Parties designate the following persons for receipt of notice:
To LSRD:
Executive Director
Lone Star Rail District
P.O. Box 1618
San Marcos, Texas 78667
With copies to:
William H. Bingham
McGinnis Lochridge
600 Congress Avenue,
Suite 2100
Austin, Texas 78701
Attorneys for LSRD
To City of Georgetown:
City Manager’s Office
City of Georgetown
P.O. Box 409
Georgetown, Texas 78627
Attention: City Manager
With copies to:
Law Department
City of Georgetown
P.O. Box 409
Georgetown, Texas 78627
Attention: City Attorney
The Parties may change the person designated for receipt of notice from time to
time by giving notice in writing to the other Parties, identifying the new person
designated for receipt of service and identifying his/her name, title, address for
notice and phone number.
15
5. Complete Agreement
This is the complete Agreement by and between the Parties on the subject matter
of the Agreement. It supersedes any other agreement or understanding between
the Parties , written or oral, and any other commitments, promises, undertakings,
understandings, proposals or representations of the Parties to each other, written or
oral, concerning the subject matter of this Agreement.
6. Amendment in Writing
This Agreement may be modified only in writing duly executed by each of the
Parties. Neither any representation nor promise made after the execution of this
Agreement, nor any modification or amendment of this Agreement, shall be binding
on the Parties unless made in writing and duly executed by each of the Parties.
7. Counterparts
This Agreement may be executed in counterparts, each of which shall be deemed
to be an original, but all of which taken together shall constitute one and the
same Agreement.
SIGNATURE PAGE FOLLOWS
16
APPOVED AND AGREED UPON this 28th day of October, 2014
LONE STAR RAIL DISTRICT (“LSRD”)
BY: _________________________________
Sid Covington
Chairman, Board of Directors
CITY OF GEORGETOWN, TEXAS
BY: __________________________________
Dale Ross, Mayor
ATTEST: __________________________________
Jessica Brettle, City Secretary
APPROVED AS TO FORM:
__________________________________
Bridget Chapman, City Attorney
17
EXHIBIT A – APPROVAL
18
EXHIBIT B: PROJECT PLAN
Lone Star Rail District Project Plan - LSTAR Passenger Rail Service
Lone Star Rail District (LSRD) will develop and operate a passenger rail service, LSTAR, with proposed
stations as shown in the map on Exhibit B-1 plus any added alternate or skip stop stations, running primarily
in and/or adjacent to the current Union Pacific Railroad (UPRR) right of way between the Austin and San
Antonio metropolitan regions. The development of this service will be accomplished through the
construction and/or purchase of:
• Track improvements to bring initial maximum passenger train speed to 79 mph (with provisions
that may increase that speed incrementally to 110 mph), including but not necessarily limited to
track geometry and/or condition improvements, train control system improvements, and grade
crossing adjustments to meet vehicular and pedestrian traffic safety requirements,
• Curve remediation to increase or eliminate current speed limits imposed by track curvature,
• Additional track and related infrastructure (rail bridges, turnout, switch, and train control
apparatus, communications apparatus, and so forth) as guided by LSRD’s joint service planning
effort with UPRR, the goal of which is to identify the improvements needed to support reliable, on-
time regular passenger train service while maintaining UPRR’s ability to serve its customers in the
corridor,
• Stations, including at a minimum platforms, canopies, lighting, seating, passenger information
systems, ticket vending equipment (if necessary), and pedestrian bridges,
• Operations and Maintenance Facilities, to include the following:
o Maintenance shops and yards where LSTAR locomotives and passenger coaches will be
stored, inspected, maintained, cleaned, and repaired
o Operations Control Center where rail system control and communication operations will
be centered
o Maintenance of Way base to function as headquarters and storage for
engineering/infrastructure maintenance functions
o LSRD administrative headquarters to provide space for management and administrative
functions of the LSRD and the rail system.
• Layover facilities at one or other or both the ends of the line, or mid-line may be needed to provide
minor inspection and maintenance of rail rolling stock stored at passenger terminals, and
• Rail Rolling Stock, taking into account the conceptual initial service plan goal’s peak equipment
requirement plus a margin to account for “shopped” equipment (for inspection, maintenance, or
repair). Current plans include a sufficient number of locomotives, bi-level passenger cars, and bi-
level passenger/cab cars necessary for the funded service level. In addition to passenger rail rolling
stock, LSRD will also acquire in the same fashion specialized track maintenance vehicles, plus a
sufficient fleet of highway vehicles to support operations supervision, maintenance, and transit
security functions.
Under current project development plans, one (1) station will serve the City of Georgetown. The projected
station location is a planning location only at this time, and final station location will be determined through
the National Environmental Policy Act (NEPA) process. The location of the Operations and Maintenance
Facilities has not yet been finalized. The final location of these facilities is subject to the results of the NEPA
process and LSTAR operational needs. Track improvements, curve remediation, additional track and related
infrastructure will be built on the proposed LSTAR route to Georgetown, including a grade-separated
connection between the UPRR main line and the preserved MoKan Corridor; the final number, magnitude
and configuration of that infrastructure will be determined through the NEPA and final design processes.
LSTAR rail rolling stock will serve the Georgetown rail station. Facilities, line improvements and rolling stock
are also subject to available capital budget resources and contracting or purchasing requirements.
Georgetown may receive skip-stop service within the LSTAR system’s funded service level. Skip-stop service
splits the funded level of service for one station between two stations based on ridership, funding provision
and operational considerations.
19
The LSTAR capital program and service levels will be commensurate respectively with the available capital
and operations funding levels. The LSTAR service is planned to be built in stages - LSRD will not delay LSTAR
passenger rail service initiation until the completion of the entire passenger rail project, but rather
commission and operate a minimum logical service (to be analyzed during the NEPA process), while
continuing to bring new segments online as they are completed. Project development may also include the
phasing of improvements within a segment in order to allow the initiation of service in a timely fashion with
available resources and allowing for ongoing or future development of subsequent phases within a segment
toward full completion of planned improvements. It is provisionally believed by LSRD planners that the
system will generally be built and put in operation from north to south, due to the likely capital investment
cash flows, the higher projected ridership in the Central Texas region, and fewer construction challenges
(based on conceptual engineering analyses). The schedule for initiation of project development and service
provision is to be determined by the completion of the NEPA process and availability of capital funding.
Capital cost estimates are preliminary, and are based on the conceptual service development plan
(discussed below). Those costs are:
Initial Service Base Service Full Service
Entire Line $700 * $840 * $1,400 *
Georgetown Portion
of Line
$43 * $52 * $87 *
* All figures are in millions of dollars and are estimates of not to exceed amounts.
It should be noted that the costs above are not additive, but cumulative totals – i.e. to go from Initial to Base
Service, the incremental cost for the entire line is $140 million ($840 million - $700 million). Capital cost
estimates will be further refined during the NEPA process.
LSTAR service levels will be commensurate with the available funding from participating local jurisdictions
(cities, counties, college districts, etc.). For planning purposes LSTAR has prepared its operations and
maintenance (O&M) projections based on the following conceptual service level goals:
Initial Service Goal – 60 minute headway on peak
120 minute headway off peak
12 total round trips per weekday
Weekend and holiday service
Base Service Goal – 30 minute headway on peak
60 minute headway off peak
20 total round trips per weekday
Weekend and holiday service
Full Service Goal – 15 minute headway on peak
60 minute headway off peak
28-32 total round trips per weekday (including express trips)
Weekend and holiday service
For estimating purposes here, operations and maintenance costs have been determined for each conceptual
level of service goal. The annual net O&M cost (after fares and miscellaneous revenue is accounted for) is
planned to be split into thirds, with one third paid by the taxing jurisdictions in the smaller cities in the
corridor, another third by the Austin/Travis County metropolitan region taxing jurisdictions, and the final
third by the San Antonio/Bexar County metropolitan region taxing jurisdictions. The following table details
the net O&M cost projections, based on service level goals:
Service Level Goal: Initial Service** Base Service** Full Service**
Smaller Cities $ 9.32 mil $ 12.60 mil $ 20.14 mil
20
Austin/Travis County Metro $ 9.32 mil $ 12.60 mil $ 20.14 mil
San Antonio/Bexar County Metro $ 9.32 mil $ 12.60 mil $ 20.14 mil
Total $ 27.96 mil $ 37.80 mil $ 60.42 mil
** All numbers are current year/present value estimated amounts and are not escalated to
year of expenditure.
Further allocation of the Smaller Cities portion of costs to each of the smaller cities is estimated by allotting
20% of the total Smaller Cities costs by the number of stations (full service and split service stations) within
each city and allotting the remaining 80% of total smaller cities costs by estimated city ridership activity
(departures and arrivals) for the planning horizon year of the LSTAR service (2035). The following
percentages (assuming likely skip-stop service, averaged for the initial 15 years of LSTAR service and
rounded to the nearest tenth of a percent) provide an estimate of the smaller cities allocations thatwould be
applied to the total smaller cities portion of total O&M costs (1/3 of the estimated total O&M costs) to
evaluate performance of proposed funding mechanisms against service level goals: 1) Georgetown 15.9%; 2)
Round Rock 28.0%; 3) Buda 5.2%; 4) Kyle 13.1%; 5) San Marcos 16.5%; 6) New Braunfels 12.2%; and 7)
Schertz 9.1%.
The service levels, and related cost allocation percentages, are planning goals only. Should the actual
funding support provided by the participating local jurisdictions be unable to support the planned levels of
LSTAR service, the service levels actually provided will be reduced to a level commensurate with the
provided local funding. All allocations are for cost estimating purposes only and may be updated over time.
Actual allocations may be based upon the availability of funding from individual local government entities
supporting the LSTAR service.
21
EXHIBIT B-1: PROJECT MAP
22
EXHIBIT C – TRANSPORTATION INFRASTRUCTURE ZONE
23
Georgetown Station
(Williamson Central Appraisal District (WCAD) Parcel
Identification Number)
WCAD Parcel
Identification
Number
Total
Property
Area (Acres)
½ Mile
Radius Area
(Acres)
Percent
within ½
Radius
Transportation Infrastructure Zone
R038787 1.29
R038788 4.944
R038792 54.178
R038805 18.2
R038806 20.47
R038813 82.6
R038820 139.2881
R038823 1.41
R038824 20
R038840 152.848
R038862 9
R038881 9.69
R038884 94.49
R038886 87.954
R038898 1
R039324 23.195
R039338 5.13
R039339 0.69
R039342 11.3616
R039871 11.61
R039873 5.022
R051147 1.44
R051149 1.432
R315253 1
R331899 14.5
R333369 1.995
R333370 5.732
R333371 6.607
R333372 3.6673
R333379 5.8
R333380 0.5
R333382 4.288
R333390 12
R337830 19.236
R340599 10.65
R340601 4
24
R374498 0.5
R382189 37.761
R382192 11.948
R389446 0.62
R432644 15.97
R432645 12.732
R449722 1.7
R461845 51.068
R463668 9.96
R472301 6.07
R472302 3.93
R485214 20.4874
R485231 73.6872
R492868 1.47
R493644 17.14
R493978 4.3735
R493982 0.7391
R494631 9.135
R518942 10.002
R518943 9.478
R519352 1.379
R519356 107.187
R519357 6.708
R524117 21.471
R524818 14.766
R525847 12.772
R525848 7.258
R525849 9.072
Tax Exempt Property
R038840 152.848
R331899 14.500
R374498 0.500
R432644 15.970
R472301 6.070
R472302 3.930
R494631 9.135
Transportation Infrastructure Zone - Undivided Property
25
EXHIBIT D – CITY PROJECTS
SE Inner Loop TIZ
Roadway Preliminary Cost Estimate
Local Project Purpose:
The local transportation projects proposed to be wholly or partially financed using the
City's portion of tax increment will serve to provide access to and within the project site.
These roadway improvements included a new service roadway to access the station
location from the SE Inner Loop/Maple Street corridor as well as from FM 1460. Existing
roadways and intersections related to SE Inner Loop and Maple Street within and
connecting the Transportation Infrastructure Zone will be improved with additional lane
capacity and traffic control. Additional funding capacity may be used to study and
provide structured parking options in the future. The general location and current cost
estimates are provided below and on the attached page.
Internal Roadway (Avery/GRR):
The internal roadway from SE Inner Loop/Maple area, extending past the to the station
location to FM 1460, will be constructed as a Mixed Use Street Type following
development guidelines outlined in the Chapter 4.11 of the Unified Development Code
and the regulating plan adopted for the Transit Oriented Development. The street and
related stormwater drainage improvements are currently estimated to cost $2,665,000 in
FY 2014/15 dollars.
Maple/SE Inner Loop Intersection
The current intersection of the SE Inner Loop and Maple Street is a non-signalized
intersection that handles very little traffic volume from the Maple street intersection. As a
transit station is built and vehicular and pedestrian traffic increase in the area, signal
warrants may soon be met. The City would propose to improve the intersection by
adding capacity for the auto and pedestrian related traffic and signalization to make the
intersection function properly for both modes of transportation. The intersection and
signalization improvements at the intersection are currently estimated to cost $6,200,000 in
FY 2014/15 dollars.
SE Inner Loop (Southwestern to IH-35):
The SE Inner Loop corridor provides the primary access to the transit station from IH-35,
FM 1460 and SH 29 East. This corridor is currently a two-lane roadway with limited
capacity for expansion within existing right-of-way. As traffic volume increases to and
from the Lone Star Rail station capacity improvements will be required along the corridor.
The design, right-of-way acquisition, utility relocation and construction of the four-lane
divided arterial, with adequate right-of-way for future capacity are currently estimated to
cost $25,575,000 in FY 2014/15 dollars.
Structured Parking:
As the Lone Star Rail service expands in the future and transit oriented development
occurs in the area, structured parking may become necessary to provide adequate parking
26
capacity for regional rail service. The cost to design and construct structured parking with
up to 450 parking spaces and mixed use space is currently estimated to cost in a range of
$9 million to $15 million dollars in FY 2014/15 dollars, depending on the type of structure
and capacity required.
27