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~~- ~ 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.