>> More than 75 cities are in some stage of planning streetcar projects.
>> Ten projects already are in the pipeline and seeking $655.2 million from one federal program that funds up to $200 million a year.
WASHINGTON -- Mayor Jim Suttle is hoping federal funds will help him bring streetcars to Omaha and boost local economic development, but wrestling that money out of Washington could prove difficult.
The competition is fierce.
Considering just streetcar projects, 75 to 90 cities already are at some stage of requesting or using federal funds, with more lining up all the time, said Jim Graebner, a Denver consultant and chairman of the American Public Transportation Association's streetcar subcommittee.
“A number of them have already gotten in line and a number of them are rushing to get in line,” Graebner said.
The Obama administration is rolling back strict requirements that federal transportation grants go for projects that cut commuting times in the most efficient way possible. Instead, the administration plans to put greater emphasis on fostering economic development and livability in core urban areas.
That change will boost Omaha's ability to qualify for funds and could mean more money available for streetcar projects down the road.
“If that's the case, the idea of getting in line, of getting geared up and getting ready to go after those funds is certainly a very wise one,” Graebner said.
But the prospect of loosening purse strings already has spurred greater interest from other cities, including many that are further along in planning and fundraising than Omaha.
More federal funding is not a given. A large transportation reauthorization bill has been stalled on Capitol Hill since last year. Generally, streetcar spending will have to contend with other priorities in a weak economy amid public concern about federal budget deficits and the ever-growing national debt.
And history shows that any federal money available quickly gets outpaced by demands.
For example, in a recent round of transportation grant funding, streetcar projects in Tucson and New Orleans got significant boosts, but the administration received $40 worth of requests for every $1 available through that program.
A different pot of money that could be a prime target for Omaha is the Federal Transit Administration's Small Starts, which covers projects of less than $250 million.
Suttle has said bringing streetcars to Omaha probably would cost between $200 million and $250 million but could mean $1 billion in development.
The transit agency's most recent annual report lists 10 Small Starts projects already in the pipeline. Those projects are seeking a total of $655.2 million in a program that has had a maximum annual amount of $200 million. The funding comes with restrictions: Projects can receive up to $75 million and require at least a 20 percent local match.
Suttle has hired a public relations firm to promote Omaha streetcars and Washington lobbyist Laurence Bory to help secure federal funding.
Suttle spokesman Ron Gerard acknowledged the competition for that funding. He said it's difficult to determine exactly where the city is likely to get federal money with the administration's guidelines now in flux.
“This is the reason that Larry is so critical in his role a key person in a strategic position looking for all options that become available,” Gerard said.
Bory did not respond to interview requests.
Other cities are ahead of Omaha, with streetcars already in operation.
Little Rock, Ark.'s vintage River Rail streetcars have been running since 2004. Annual ridership initially topped 200,000, but now averages about 135,000 over the 3.5-mile line that connects downtown Little Rock with downtown North Little Rock.
The line strings together growing residential areas with an arena, a minor league ballpark, the Clinton Presidential Library, a fledgling arts district and other attractions.
The federal government funded 80 percent of the nearly $30 million in capital startup costs for the streetcar line, and local governments now split the bill for the annual operating costs. Those operating costs were $883,000 last year, after taking into account about $80,000 in revenue from fares and advertising.
The modest ridership has prompted some grumbling among locals about expensive, empty streetcars rolling through town, but Betty Wineland, executive director of the Central Arkansas Transit Authority, said the expectation was never to have the cars full all the time.
She said the line has become a vital part of the city, is a big hit with out-of-town visitors and has helped spur $500 million to $1 billion worth of residential and commercial development.
One of the developers, Jimmy Moses, is a big proponent of the streetcar and said he would fight to hang onto it, although he said it hasn't been the sole driver of the city's downtown renewal.
Moses said he's been impressed with Omaha on visits to the city and he suggested that Omaha could learn from Little Rock's streetcar experience with how a streetcar can contribute to development efforts. Moses' company opened its latest project, River Market Place, in June 2009 about half a block from a streetcar stop. The $82 million development includes a 20-story condominium tower with 15,000 feet of retail space, a 30-loft apartment building, a 120-room Hampton Inn and Suites and a courtyard that links all three buildings with a 500-car garage.
Moses said condo buyers like the idea of being able to hop on the trolley to go to a concert or a ballgame.
Still, sales have been slow, with about 50 units sold and another 80 to go. Moses blamed the weak economy, noting that his company has built five other successful downtown high-rises in the past 10 years.
Overall, Little Rock still has a ways to go on its downtown, he said. There are relatively few residential units, spotty retail, no grocery store.
But people are excited enough about the potential of the streetcar, Moses said, that there is talk of pursuing additional federal money to extend the line on both ends.
For Omaha's project, Suttle can seek assistance from the state's lawmakers on Capitol Hill, but so far no one in the delegation is publicly touting the benefits of Omaha streetcars.
Rep. Lee Terry, R-Neb., said his office will assist Suttle in navigating the federal bureaucracy. But he doesn't anticipate being a champion for the cause.
He said part of the reason is that city officials seem less than united on the streetcar idea. Council member Jean Stothert has questioned the wisdom of an Omaha streetcar, particularly during a city budget crunch.
Terry said such differences of opinion could complicate attempts at federal funding.
“Frankly, that could really doom the project because the last thing the transportation committee wants to do is get involved in a local spat,” Terry said.
Suttle could look for funding through congressional earmarks. But Terry has signed on to a House GOP moratorium on earmarks, and Sen. Mike Johanns, R-Neb., doesn't request earmarks.
Johanns has directed his aides to assist the project through the grant process, said Johanns spokesman Jim Landry.
Sen. Ben Nelson, D-Neb., could be a powerful advocate. He requests earmarks and is a member of the Senate Appropriations Committee. But Nelson, through spokesman Jake Thompson, declined to comment.
Terry summed up Omaha's prospects for significant federal streetcar funding:
“It's not only a steep hill, it's probably ninety degrees.”
Contact the writer:
202-662-7270, joe.morton@owh.com
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