Dallas Leaders Wrestle Over How to Fund Streetcar Link Through Downtown

A plan to link the Oak Cliff Modern Streetcar through downtown Dallas to the McKinney Avenue Trolley is still in play, but the project’s got at least 108 million problems. Advocates for the “Central Link” streetcar extension say they may have to pay a consultant to determine funding options just to cover maintenance and operations. 

Federal grant funding could be available for a portion of the $108 million capital costs to build the Central Link, city officials said, but further study is needed to determine exact costs and funding options. 

Dallas Director of Transportation Gus Khankarli briefed the City Council on the project Wednesday, noting the city’s complicated relationship with Dallas Area Rapid Transit and the challenges of financing the project. Developing a connected streetcar system has been a focus of Dallas’ planning efforts for nearly two decades. 

Bringing in Downtown Dallas Inc.

City staff has been discussing with Downtown Dallas Inc. a plan to connect the existing incomplete system, “which is critical to realizing the full economic impact of the streetcar,” Khankarli said during Wednesday’s briefing.

Council members have expressed a desire to expand the streetcar outside the Central Business District, the transportation director added. 

“Many expansion routes have been evaluated but we obviously cannot proceed until the Central Link alignment and broader O&M [funding] question are solved,” Khankarli said. 

District 14 Councilman Paul Ridley, who represents a portion of downtown, requested the Central Link briefing by memorandum with District 2 Councilman Jesse Moreno. 

“In light of the increased population in the [Central Business District], I think it’s critical that we move forward with plans for the Central Link,” Ridley said. 

Evan Sheets, vice president of planning and policy for DDI, said downtown stakeholders support the project despite the lengthy planning process and numerous expansion iterations over the years. 

“We see Central Link as a critical part of a completed system that sees the true value of streetcar ultimately come forward to the city, a source to find sustainable ongoing operations and maintenance funding,” Sheets said. “Without a completed system, we don’t believe this is possible. We also see this as the only way to see the full vision of an expanded network reaching further out into additional neighborhoods.” 

Funding the Central Link Streetcar

Khankarli acknowledged the city hasn’t done a thorough study on how to fund the maintenance and operations of the Central Link. 

“I would venture to say that we as a city may have to take that on as part of the analysis of what the O&M could look like since we are the owner of the system,” he said. “Even if we as the city and the transportation department take that lead, it will have to be in coordination with our stakeholders.” 

Sheets said DDI has looked into how other cities fund such projects. 

“There’s a handful of potential sources we’ve identified such as increased parking revenue through parking benefit districts as well as premier zones through public improvement districts,” he said. “What we’ve discussed with Gus and his team is we do see a need to have a thorough technical analysis of those tools and financial projections put together to understand how they could cover those costs long-term and ultimately have a sustainable model that not only shows how they could contribute to Central Link O&M … but how they could contribute to future extensions as a replicable model.” 

Sheets added that he was looking for consensus from the council to have Khankarli craft a request for proposals so a consultant could begin looking into financing options.

Although not discussed at length, the question of how to fund a consultant study also was raised. 

Council Members Push Back 

District 12 Councilwoman Cara Mendelsohn questioned how plans for the “D2” light rail line, intended to relieve overcrowding on the single existing line, were scrapped from DART’s long-term plan without input from the council. 

The City of Dallas uses its sales tax revenue to fund DART and therefore should have been included or at least made aware of such a decision, Mendelsohn said. 

“D2 was tied to the Silver Line,” Mendelsohn said. “We essentially felt like we were giving up something, an enormous quality of life issue for our area, in order to benefit the rest of the city with D2. In the end, Dallas has been totally misled.”

Assistant City Manager Robert Perez said the D2 project isn’t dead. It can be added back to DART’s 20-year plan just as easily as it was removed, he said. It was removed because ridership levels weren’t being met, Perez added. 

Mendelsohn said the city is slated to spend $426 million on DART this fiscal year and is already talking about instituting an entirely new transportation system to be funded separately.

“We should not be funding additional transportation expenses that clearly were intended 40 years ago when we made this arrangement,” she said. 

Deputy Mayor Pro Tem Carolyn King Arnold said her constituents simply want a mode of transportation that’s clean and safe. 

“The streetcars are cute,” Arnold said. “I like them, but it’s not just about me. It’s about the people in my community. Can they get where they need to go with a good bus? I would say so. I’m not being inundated with a cry to put in streetcars.”

The two-hour briefing ended with Khankarli saying his staff would present a “robust plan” that outlines the Central Link technical components, initial costs, and funding options. 

Councilman Moreno, who with Ridley requested the briefing and represents a portion of downtown, said it’s imperative to move forward with the streetcar. 

“Downtown is bustling and hustling more than ever before,” Moreno said. “This is a tool that’s not only going to be used by the residents who live here, but it’s also going to be a big impact for our visitors.”