Photo, Bombardier Corporation
Mayor’s Task Force to Reestablish Rail Service to Phoenixville, Pennsylvania
Southeast Pennsylvania Transit Authority Rail Extension Project
Phoenixville/Schuylkill Township/King of Prussia to Philadelphia
April 3 , 2019
Background
Rail passenger service to Phoenixville ended in 1981 with the termination of Southeastern Pennsylvania Transportation Authority (SEPTA) diesel powered trains between Reading Terminal in Philadelphia, Reading, and Pottsville, Pennsylvania. Since 1981, there have been significant changes in Phoenixville, primarily centered around the closing of the Phoenix Steel Corporation plant (originally the Phoenix Iron Works) in the early 1990’s and the subsequent redevelopment of the industrial site and simultaneous revitalization of the downtown area of the Borough.
Process
The Transportation Revitalization Investment District Act (TRID) was created by Act 238 in 2004 and amended in 2016 by Act 151 to provide for the specific purposes and intent of a designated TRID include to include:
Increase overall ridership on public transportation systems, including AMTRAK, while generating additional revenues for current and expanded services, capital improvements and related ongoing maintenance.
The Borough of Phoenixville is seeking to work with other municipalities, with an active involvement by SEPTA and related county agencies, for the purpose of establishing an extension of the SEPTA commuter rail to Phoenixville along the Norfolk Southern (NS) line. A Mayoral Task Force has been established to determine if a commuter rail line is feasible for Phoenixville, Chester County.
The Transit Corridor Development project provides for an economic development and enhancement of the corridor which includes commercial and residential development, and related infrastructure improvements and activities. The project will anchor transformative, positive, and long-lasting changes that will result in increased investment in the economic competitiveness of the region; increase transportation choices to decrease household and/or business transportation costs and provide other benefits; improved transportation access to employment centers, educational opportunities, and essential services, by providing walkable communities, and improved quality of life.
The Financing
The project will leverage and incorporate private investment into the overall economic development in and around the corridor projects and the related stations. The nexus between the three corridor projects and the corresponding stations, provides for functional/physical relationships of the proposed Transit Oriented Development (TOD) Projects to the stations. The projects are within a ¾ mile radius of the station location. The distance ensures the enhancement of the use, connectivity as well as handicapped access to the station.
A portion of incremental tax revenues transferred to a TRID shall be dedicated to completion and future maintenance of the specific and necessary transit capital and public infrastructure improvements designated in the comprehensive plan amendment and TRID planning study
The potential projects are as follows:
Phoenixville Sites
Phoenixville Steel Site
Phoenixville Station Site
Schuylkill Township Sites:
The 47-acre National Christian Conference Center
Nolan Development
Upper Merion Sites:
Mancill Mills Site
Area around failed Expressway Road project near Norristown Bridge
Value Proposition
SEPTA has commissioned two studies over the past 5 years concerning the impact of transit on property values in the region. The first study in 2013 was somewhat conservative in their estimation of value increases. There was an adjustment made to the model in 2018 to better reflect the actual impact.
In 2018, SEPTA commissioned a study to measure the impact of rail stations on property values in Bucks, Chester, Delaware and Montgomery Counties. The model excluded the city because of the closeness of the stations and the vibrancy of the public transit locations, including the subway as well as the incoming regional rail. Across all four counties the average property value premium within a three-mile area of the station was $19,400 per transaction in selected communities with over 100 parking spaces and higher levels of service. The value premium in Chester County is $13,500 as Chester County has more limited transit service with only 32.7% of the homes being transit proximate homes compared to Bucks 57%, Montgomery 64%, and Delaware 89% transit proximate homes. Comparisons for payback will use the lesser dollar value. The study identified in Chester County that the average transit proximate house in Paoli is worth $69,400 more and in Thorndale a transit proximate house is worth $46,600 more than houses that are not proximate.
There will need to be a subsidy to increase the number of trips to have more regular service to back into a better property value appreciation number on the formula below. There is a need to reach a .6 service rating to ensure that the multiplier for the following equation as delineated in the SEPTA study SEPTA Drives the Economy of Pennsylvania (Econsult 2018 page 65)
The model that was created considered all of the attributes normally associated with an assessment model and added the rail as a multiplier. The “zone of influence” for value increase is a 3-mile radius of the train station as determined by the hedonic pricing-controlled model below.
House Valuei= f(S, L, N, Rail)
Where S is the Vector of house characteristics
Where L is the Location
Where N is the Neighborhood/Socioeconomic Conditions
The value increase is the highest in a ½ mile from the station and lessens proportionally the further away within the 3 mile radius.
Three station areas will be created with the reintroduction of passenger rail service along the Norfolk Southern/SEPTA Phoenixville/Philadelphia transportation corridor. Each area will have a separate economic development plan but will be presented as a contiguous economic development package, connected by the rail line. This will create a multi-county Transit Revitalization Investment District (TRID).
The TRID project, according to the Act, will be financed through the creation of value capture districts, which are within a ¾ mile radius of the station. A value capture district would encumber a portion of the property tax dollar increment on selected new development. Property tax would be defined as Municipal, County and School District taxes. The existing taxes would remain, but a portion of the increment or increase on the selected parcels in the tax base, would define the value capture for the project. There will be a direct benefit to the homeowners as homes within the three-mile value area would appreciate in value without increase in taxes.
The project would bring an increase in value to existing homeowners, provide much needed relief to the commuters from the current rush hour gridlock and provide for future growth in the community.
The Cost
Capital
The following is the estimated capital cost for the project. There is research necessary to determine if there are any additional costs which would be allocated to the project via SEPTA.
PHOENIXVILLE COMMUTER RAIL SERVICE CAPITAL COST ESTIMATE - SUMMARY TABLE
| |
| |
| |
Track & Signal Improvements at Norristown and Bridgeport
|
$1,900,000
|
Overnight and Weekend Storage Facility (Phoenixville)
|
$1,465,000
|
Additional Track and Signal Improvements at Stations
|
$4,350,000
|
New ALP-45 DP Locomotives (5 @ 11m)
|
$55,041,176
|
Purchase and Overhaul Existing Coaches (22 @ $400k)
|
$8,800,000
|
Positive Train Control On-Board Equipment Modifications
|
$1,000,000
|
Engineering, Environmental and Project Management Services
|
$1,000,000
|
General Conditions (e.g., Utilities, HazMat, Archeological, Design Reviews)
|
$4,000,000
|
SUBTOTAL
|
$77,556,176
|
Stations at Phoenixville, Schuylkill Township and King of Prussia
|
$17,604,000
|
SUBTOTAL
|
$95,160,176
|
Contingency (10%)
|
$9,516,018
|
TOTAL
|
$104,676,194
|
Operating and Maintenance
The following is the best estimate of the operating cost. The project is on the schedule of the Delaware Regional Planning Commission (DVRPC) for a compete a ridership study. The number supplied is a conservative estimate.
ESTIMATED OPERATING AND MAINTENANCE COSTS
|
Ramp Up Period
|
Rush Hour Only
|
Full Service
|
Host Railroad Charges
| | | |
Train Operating Costs (SEPTA)
|
$1,753,920
|
$1,753,920
|
$7,015,680
|
NS Track Access Charges (Per Train Mile)
|
$48,600
|
$48,600
|
$194,400
|
NS Maintenance of Capacity Improvements
|
$25,000
|
$25,000
|
$25,000
|
Stations
| | | |
Janitorial - Trash Removal
|
$37,500
|
$37,500
|
$37,500
|
Utilities - Electric
|
$9,000
|
$9,000
|
$9,000
|
Maintenance - Repairs and Snow Removal
|
$30,000
|
$30,000
|
$30,000
|
Ground Leases
|
|
|
|
Storage Facility
| | | |
Track Maintenance
|
$10,000
|
$10,000
|
$10,000
|
Security
|
$25,000
|
$25,000
|
$25,000
|
Ground Lease
|
|
|
|
| | | |
Total Estimated Annual Operating & Maintenance Costs
| | | |
Totals:
|
$1,939,020
|
$1,939,020
|
$7,346,580
|
| | | |
ESTIMATED FARE REVENUE
| | | |
Assumed Weekday Average Fare
|
$6.36
|
$5.36
|
$5.36
|
Assumed Weekend Day Average Fare
|
N/A
|
N/A
|
$3.92
|
Estimated Annual Fare Revenue
|
$1,458,030
|
$2,457,560
|
$5,668,794
|
| | | |
| | | |
ESTIMATED OPERATING (DEFICIT) OR SURPLUS
|
$ (480,990)
|
$518,540
|
$ (1,677,786)
|
