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INFORMATION 11-08-20101 nf~irr~a.~~u'~v 1f-~~~p . r ~, a ~G~10~°3~~.I~~IIG ~~~~~a November 4, 2010 Dear NCDA Members: We are writing to inform you of an action taken by the Executive Committee this afternoon. As you are aware, Northstar, Mn/DOT, and Metropolitan Council staff and consultants have been working over the last six months to prepare the necessary analysis required by FTA to pursue Small Starts funding. The work .included: negotiations with BNSF, ridership modeling, examination of land use and economic development potential in the corridor, financial commitments by the various funding partners, and calculation of the CEI (Cost-Effectiveness Index). After intensive analysis of the Phase II and an evaluation of the Project using the FTA rating criteria, the Executive Committee unanimously voted to recommend that the NCDA and project partners not proceed with an FTA Small Starts application at this time. The focus of the NCDA's work should be to cultivate ridership on Northstar Commuter Rail and the Northstar Link with the ultimate expectation that the line be extended to St. Cloud. This is a major decision for all of us. At our meeting on December 4, 2010, we will provide you all of the information and analysis, and we will consider our next steps, work plan, and budget for next year. Your continued support for implementation of the line to St. Cloud is more critical than ever. Ridership remains a focus for us all, as we work to continue to introduce the benefits of the service to potential customers all along the line. We are attaching keys on talking points, and a press release that fully explains the rationale for our decision at this time. Please call one of us if you have questions. cerely, Dan Erhart Chair Felix Schmiesing Commissioner, Sherburne County Northstar Corridor Development Authority 2100 3`~ Avenue, Anoka, Minnesota 55303-2265 (763) 323-5700 Fax: (763) 323-5682 www.northstartrain.org ~~- ~ Northstar Commuter Rail Phase II Recommendation ~ _. Key Information Points ~NC7RTHST,AR ~~~ R ~,~f~fl-~~ ~ Draft 3 -Nov. 4, 2010 ~. 1. The Northstar Corridor Development Authority Executive Committee will recommend to the full board on Dec. 2 that the federal application for Northstar Commuter Rail's St. Cloud extension be placed on hold. The recommendation is made after careful review of the Federal Transit Administration's required technical analysis. The decision is based on work completed by the Project Management Team, which includes Metro Transit, the Minnesota Department of Transportation and other project partners. 2. The results of the FTA required technical analysis cannot justify the costs of expanding Northstar at this time. - Phase I ridership has been lower than first projected, partly due to the worst recession in 70 years, high unemployment rates, gasoline and parking price fluctuations, and other factors - Phase II ridership market was analyzed in detail showing only 200-350 potential new rides - Capital costs are too high, given the expected ridership and the low travel time savings - As a result, Northstar's extension to St. Cloud does not meet strict standards for federal matching funds and is not competitive enough compared to other transit projects in development across the country 3. We do not take this decision lightly. Unfortunately, placing the Northstar expansion on hold for now is the best way we can continue to be responsible stewards of taxpayer money. - We have carefully conducted the FTA required technical analysis and fully explored potential expansion models - We have had long discussions with Metro Transit, Mn/DOT and other partners on Northstar's Project Management Team - NCDA and its partners have been aggressively studying the feasibility of Northstar's extension since commuter rail and Northstar Link coach bus service began a year ago - Planning for commuter rail all the way to St. Cloud has been part of the project's vision since the NCDA was created more than a dozen years ago 4. Despite these challenges, the initial phase of Northstar Commuter Rail has proven to be a reliable transit option for commuters. - Northstar customers have ridden more than 16 million passenger miles since November 2009, removing cars from the roads - Northstar has developed a loyal customer base, which we expect to grow as the economy improves - Trains operate on time 96 percent of the time and operations costs are below budget - Northstar effectively responds to the marketplace (e.g. Twins and Vikings special event service) - Northstar riders have consistently said they enjoy the comfort, convenience and safety of Northstar 5. We will continue to build momentum for the extension of Northstar Commuter Rail by working to make Northstar's first phase an even bigger success. - NCDA will continue to work closely with Metro Transit, which operates commuter rail, to ensure Northstar provides convenient commuter and special event service to build ridership - NCDA will also work with St. Cloud Metro Bus to make the Northstar Link bus service between Big Lake, Becker and St. Cloud a success - We are encouraged by the MN State Rail Plan's acknowledgement that the St. Cloud-Minneapolis city paring is one of the strongest corridors in the state - Commuter rail has always been along-term investment meant to attract jobs and complement our region's quality of life Thank you to our project partners, federal, state and local policymakers, BNSF Railway, and thousands of supporters statewide for helping make the first phase of Northstar a reality. We will be ready to extend service when the timing is right. HHI Draft 8 -Nov. 4, 2010 ~L" ~~~ ~~~~NC3RTHSTAR ~` C4yRR"t„"DOR FOR IMMEDIATE RELEASE [Date] NEWS RELEASE Contact: Tim Yantos 763-323-5692 Second Phase of Northstar Commuter Rail to be Placed on Hold After consultation with project partners, Northstar Corridor Development Authority to respond to technical analysis ANOIG4, Minn. -The Northstar Corridor Development Authority (NCDA) Executive Committee today decided to recommend to the Authority that the federal application for~Northstar Commuter Rail's St. Cloud extension be placed on hold. The recommendation was made after careful review of the Federal Transit Administration's required technical analysis "While we have remained committed to tie original vision for Northstar Commuter Rail service from St. Cloud to downtown Minneapolis, the current data cannot justify the costs of expanding Northstar at this time," said Felix Schmiesing, Sherburne County Commissioner and NCDA member. "We do not take this decision lightly. We have examined the technical analysis, fully explored potential expansion models and have come to this conclusion in agreement with our project partners. In the end, placing the Northstar expansion on hold for now is the responsible action as stewards of taxpayer money." The NCDA -together with Metro Transit, the Minnesota Department of Transportation (Mn/DOT) and other partners on Northstar's Project Management Team -has been aggressively stydying the feasibility of Northstar's extension since Northstar Commuter Rail and Northstar Link commuter coach bus service began in November 2009. Plans for commuter rail all the way to St. Cloud have been part of the project's original vision since the NCDA was created more than a dozen years ago. However, the worst recession in 70 years, high unemployment rates, shifts in traffic volumes, and gasoline and parking price fluctuations have hampered commuter rail ridership growth on the project's first phase. Additionally, projected ridership for the commuter rail extension to St. Cloud and other factors do not meet the strict standards for federal matching funds nor would they allow Northstar to successfully compete against other transit projects currently under development across the country. Despite the challenges the current marketplace presents, the initial phase of Minnesota's first commuter rail line has proven to be a reliable transit option for commuters: ^ Northstar customers have ridden more than 16 million passenger miles since service began last November. ^ Northstar has developed a loyal customer base, which is expected to grow as the economy improves and workers seek better commuting options. - More - Northstar Extension Federal Application, Page 2 Northstar trains operate on time 96 percent of the time with operating costs below budget. Northstar is able to effectively respond to the marketplace (e.g. Twins and Vikings special event service). Northstar riders have consistently said they enjoy the comfort, convenience and safety of Northstar. "Northstar has many successes from its first year of service and we have confidence in its ability to deliver long-term benefits to our region," said Anoka County Commissioner Dan Erhart, chair of the NCDA. "As our economy recovers, reliable transportation alternatives will allow our region to compete for jobs, business and economic growth." In the meantime, the NDCA will continue to work closely with Metro Transit, which operates the commuter rail line, to ensure Northstar and Northstar Link provide convenient commuter and special event service to build ridership. h "We will continue to work toward making Northstar's first phase an even bigger success," Commissioner Schmiesing said. "We have always considered commuter rail along-term investment meant to attract jobs and complement our region's quality of life. Northstar is providing reliable service today because of the support of our project partners, federal, state and local policymakers, BNSF Railway and thousands of supporters statewide. We appreciate their ongoing support of Northstar Commuter Rail." About the Northstar Commuter Rail Project The Northstar Commuter Rail Line, operated by Metro Transit, provides service on the 40-mile segment of existing track along Highways 10 and 47 from Big Lake to downtown Minneapolis. Northstar trains offer commuter service during prime morning and evening week day rush hours, as well as regular weekend service and some special event service. The Northstar Corrldor Development Authority (NCDA) is a joint powers board of governmental entities representing counties, cities, townships and regional railroad authorities along the Northstar Corridor, which covers an 80-mile stretch from downtown Minneapolis to St. Cloud. For more information about Northstar service, go to www.metrotransit.orct/northstar. For more information about Northstar Link commuter bus, which provides coach bus service between St. Cloud and Big Lake and is operated by St. Cloud Metro Bus, go to www.CatchTheLink.com. -30-