1. City of Schertz Presentation Joe Black – Lone Star Rail District November 25, 2014

2.  Lone Star Rail District  Connectivity/Mobility  Community & Economic Development  LSTAR Local Funding  Next Steps 1 Lone Star Regional Rail – Strategic Considerations

3. Lone Star Rail District 2 Lone Star Regional Rail – Strategic Considerations

4. 33 Cities: Georgetown, Austin, San Marcos, New Braunfels, Schertz, San Antonio Counties: Williamson, Travis, Hays, Bexar Transit Agencies: Capital Metro, CARTS, VIA, ART MPOs: CAMPO, AAMPO Region’s Board Representation: 20 members representing the political leadership and business community of Central/South Texas, plus “at large” members appointed by the TxTC. Jurisdictions and Service Area

5. 44 30+ through freight trains per day rerouted to Urban Freight Rail Bypass 80+ miles of new freight rail line from Seguin to Taylor 40+ miles of improved freight rail line from San Antonio to Seguin Urban Freight Rail Bypass LSTAR is Regional rail - hybrid of commuter & intercity rail Originally 16 stations at full service (up to 24 with split stations service) 32 round trips a day at full service 118 miles of passenger rail; San Antonio north to Georgetown How Does the LSRRP Effort Fill a Central Texas Need?

6. Initial Service: 60 min. headway on peak 120 min. headway off peak 12 total round trips per day Weekend & holidays: per demand & budget Base Service: 30 min. headway on peak 60 min. headway off peak 21 total round trips per day; including express service Weekend & holidays: per demand & budget Full Service: 15 min. headway on peak 60 min. headway off peak 28-32 total round trips per day; including express service Express, Weekend & holiday service: per demand & budget 5 Lone Star Regional Rail – Service Planning Targets

7. Rider Experience Considered a higher level of transit o Dependable/predictable service o Avoids destination parking & costs o Bring your bike along o Wi-fi enabled Congestion proof option – bypasses traffic bottlenecks Makes drive time available for other activities Links nearly 300,000 students, faculty and staff at 17 campuses: Texas A&M University San Antonio UTSA Downtown Campus Alamo Community Colleges Texas State University The University of Texas at Austin 6 Lone Star Regional Rail – LSTAR Passenger Service

8. Regional Mobility/Access Relocation of UP reduces freight rail traffic in city centers o “Through” freight trains are longer & slower (1-2 miles long; avg. 20 mph or less) o Passenger trains are shorter & faster (max. 8 cars; avg. 60 mph) o Moves “through freight” trains to bypass (approx. 30-40 trains/day) o Remaining local freight stays in the corridor (no loss of service) 7 Lone Star Regional Rail – Freight Rail Bypass

9. 8 “Union Pacific Railroad has been working cooperatively with the District on its Austin-San Antonio Corridor project for several years…We believe that both Union Pacific and the District have made substantial progress…and anticipate that an eventual agreement will result in the ability of the District to provide passenger service and relocation of through freight in the Austin-San Antonio Corridor…” Jerry Wilmoth, General Manager – Network Infrastructure, Union Pacific Railroad, May 16 2012 letter to Travis County Judge Samuel Biscoe “Union Pacific Railroad has been working cooperatively with the District on its Austin-San Antonio Corridor project for several years…We believe that both Union Pacific and the District have made substantial progress…and anticipate that an eventual agreement will result in the ability of the District to provide passenger service and relocation of through freight in the Austin-San Antonio Corridor…” Jerry Wilmoth, General Manager – Network Infrastructure, Union Pacific Railroad, May 16 2012 letter to Travis County Judge Samuel Biscoe Freight Rail Bypass – joint planning LSTAR Passenger and Local Freight Operations – joint planning 8 Union Pacific Railroad

10. National Environmental Policy Act (NEPA) requires an Environmental Impact Statement (EIS) to assess project alternatives o LSTAR Service and Freight Bypass Line NEPA environmental impact categories o Threatened or endangered species impacts o Air & water quality impacts o Historic & cultural sites impacts o Social & economic community impacts o Cost-benefit analysis Environmental Justice considerations of NEPA assess human health, economic, and social impacts on minority and low-income populations. LSTAR has initiated an EIS for the passenger line and freight bypass Process will take approximately 3 years with results expected Summer 2017 9 Environmental Process

11. Connectivity/Mobility 10 Lone Star Regional Rail – Strategic Considerations

12. 11 I-35 between San Antonio and Austin is one of the deadliest and most congested stretches of highway in the country. ACCIDENTS 100+ fatalities per year 9000 accidents annually between San Antonio and Georgetown. CONGESTION AND TRADE 80% of Mexico’s trade with the U.S. and Canada runs through the I-35 corridor. Truck traffic on I-35 is projected to grow over the next 20 years from 3,000 to 15,000 trucks per day. Dozens of freight trains per day pass through highly populated urban communities and nearly 140 at-grade crossings. Lone Star Regional Rail – Connectivity/Mobility

13. 12 Highway expansion capability is limited Right of way established in 1950- 1970s Alamo Area MPO anticipates adding one million in population o Traffic model - avg. daily transportation system capacity overwhelmed between 2020 and 2040 Capital Area MPO data – 12-14 additional southern lanes needed by 2035 TxDOT funding is limited Lone Star Regional Rail – Connectivity/Mobility

14. What We’ve Learned from Other Cities… Community Tipping Point 30 minute trip 2 million regional population Congestion builds, mobility is limited Personal Choices Find alternative route (Cut-through traffic) Relocate residents/businesses (Closer to CBD or affordable area) Relocate to avoid key destinations (new or expanding centers or move out of region) Choose another mode of (pedestrian, bikes, transportation improved commuter transit) Lone Star Regional Rail – Connectivity/Mobility 13

15. 2010 – Population Density 14

16. Scenario 2 – Population Density 15

17. 2010 – Employment Density 16

18. Scenario 2 – Employment Density 17

19. 18 Schertz is not supported by transit links to region. 18

20. 19

21. Community & Economic Development 20 Lone Star Regional Rail – Strategic Considerations

22. Economic Development Induces new development and redevelopment Can attract diverse types of high value development (TOD or TAD) Focuses development within/near activity destinations for walkable neighborhoods Links regional employment centers & anchors investment/property values Retains competitive advantage in region and nationally Lone Star Regional Rail Community Benefits Community Development Part of a broad vision for community & aligns with community plans/goals Reinforces community identity/brand as “connected to region” Reduces growth in traffic congestion Relocates most freight trains Safety and aids in air quality attainment 21

23. Growth Trends National shifting to information & service economy Convenient walkable mixed-use city centers/destinations Communities seeking to diversify housing/life style options Flattened national demand for new autos o Auto costs projected to increase for fuel & technology improvements Employers stressing “work at office” for collaborative relationships Location is still key – migration to more affordable second tier urban areas o Austin is #1 and San Antonio #3 destinations o San Marcos fastest growing city in 2010 census Impacts - rents rising, home sales spiking and traffic congestion increasing 22 Lone Star Regional Rail Broad Based Regional Benefits

24. 23  Regional approach to local rail service & Local Funding : Core Cities of San Antonio & Austin Hays County Cities of Buda, Kyle & San Marcos Comal County Cities of New Braunfels & Schertz Williamson County Cities of Round Rock and Georgetown LSTAR Passenger Rail Service

25. 24 New Braunfels Schertz Loop 1604 San Antonio International Airport Downtown San Antonio/UTSA Port San Antonio City South/ Texas A&M San Antonio Proposed South Central Texas LSTAR Stations

26. 25  Schertz – San Antonio Station Locations: Schertz(1) San Antonio (5-8) LSTAR Service Schertz Station

27. 26  Station Locations area in Schertz LSTAR Service

28. Location Selection Criteria: o Multi-modal Access o Site Configuration o Economic Development o Transit Supportive Land Use o Environmental Issues LSTAR Station Location Technical Advisory Committee 27

29. LSTAR Local Funding 28 Lone Star Regional Rail – Strategic Considerations

30. 29 Establish Local funding established through interlocal agreement o Transportation Infrastructure Zone (TIZ) around each LSTAR station o Funding approach is focused on supporting rail service O&M Funding is from new growth o Portion of growth revenues from within TIZ o No impact on current City revenues o Funding primarily from rail induced station area growth No guarantee of funding levels No City or County debt No added tax or fee on station area properties No tax increase on station area properties or City residents Funding Approach: Lone Star Regional Rail Project Local Funding Support – Operations and Maintenance Focus

31. Delayed/Late Funding Community Impacts: Local private development decisions impacted o Interim developments may lock-in non-transit dev. o Interim developments may limit life style choices o May limit revenue growth & lower affordability Economic development may go to other locations LSRD capital resources allocated first to participating communities o Rail system extensions or additions compete against other system investments Community may have capital investment and/or catch-up funding impacts 30 Economic Development/Community Planning Issues

32. O&M is one key to securing capital funding The Draft LSRD Business Plan O&M costs split* by thirds (after fare box & misc. revenue): LSRD Planning Targets *Initial (2018)Base (2023)Full (2028) Small Cities value capture funding$ 10.56 mil$ 19.57 mil$ 33.78 mil Central Texas value capture funding$ 10.56 mil $ 19.57 mil$ 33.78 mil So. Central Texas value capture$ 10.56 mil $ 19.57 mil$ 33.78 mil Total$ 31.68 mil $ 58.70 mil$101.33 mil * Escalated over time at 2.5% annually; 15 year avg. of 1/3 cost is $15.16 million (2018-2032) 31 LSTAR Operations and Maintenance Costs (O&M) Local Funding Targets

33. 32 1. Station Location preference confirmed 2. Local funding Agreement adopted by end of December 2014 or Spring 2015. Next Steps