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,J <br /> ATTACHMENT A <br /> CITYOFEVERETT <br /> FINANCIAL AND POLICY ANALYSIS OF <br /> PROPOSED EVERETT STREETCAR PROJECT <br /> PROJECT UNDERSTANDING AND APPROACH <br /> The proposed work includes providing a clear decision framework to allow City policy makers to make a <br /> definitive judgment regarding the streetcar project. Given the magnitude of the potential investment that <br /> would be necessary to continue toward implementation, it is critical that the decision to move forward be <br /> carefully considered. <br /> Toward this end, we propose a scope of work that will offer a clear and concise policy analysis of the <br /> options available at this time. The analysis will build on the results of the Feasibility Study by putting the <br /> choices into a policy-level cost-benefit framework that will identify the potential economic value of <br /> proceeding including identifying the risks and tradeoffs among the options. The analysis will focus on <br /> three key elements: <br /> Economic and Community Value.What is the value (both direct and indirect)to the City of a streetcar in <br /> downtown Everett? How do these values change under different phasing or program options? How do <br /> these values differ from the no streetcar scenario? <br /> Local Funding Requirements. How can the City fund a streetcar program? How competitive might this <br /> project be for outside funding support, in particular, potential federal funding under the Small Starts <br /> program? How much local funding is likely to be necessary to build and operate the system? <br /> Policy-level Cost-Benefit Assessment. Under different assumptions about local funding commitment <br /> requirements, how do the benefits compare to the costs? <br /> The balance of this scope of work provides additional detail regarding each of these major work elements: <br /> FINANCIAL AND POLICY ANALYSIS <br /> EVERETT STREETCAR PROJECT <br /> Task 1: Policy and Community Benefits of a Streetcar in Everett <br /> A key challenge in making a decision about a major economic development investment, such as a <br /> downtown streetcar, is how one should think about the potential value of such an investment. <br /> The Feasibility Study identified that the project would be supportive of the City's downtown vision and <br /> provided a preliminary assessment of the redevelopment potential in the downtown area. To make an <br /> informed decision it is necessary to more fully explore the potential value of the economic development <br /> benefits of the project. This task will focus on the following issues: <br /> The most important issue in evaluating the economic development benefits is to assess how the <br /> presence of a streetcar might change the land economics in downtown Everett. In particular, what is the <br /> likelihood that the streetcar might: (1) accelerate development activity in the downtown; <br /> (2) increase or maximize the development density of the core; and, (3) encourage particular land uses, <br /> such as residential, office or ground-level retail? <br /> How might land values along the corridor be affected by the introduction of a streetcar? <br /> How might the presence of a streetcar improve the economic development potential of other public <br /> investments, such as the Everett Riverfront project and the Port's Waterfront Redevelopment efforts? <br /> Page 7 I.5 <br />