Light rail could pump up area

A light-rail line between downtown Spokane and Liberty Lake could bring more than 16,000 jobs and increase nearby property values by $780 million over the next 20 years, according to a preliminary economic analysis of the proposed project.

Those and other economic impacts are over and above the development that would occur without the line, according to the report commissioned by the Spokane Transit Authority from Portland-based firm Marketek.

The report estimates that by 2025, local government would be collecting $11.7 million more in property taxes and $7.6 million more in sales tax per year if light rail is built.

Properties closest to the proposed stations would see the biggest impacts.

“When you get to the bottom line, we felt very positive and encouraged about the net impact,” said Marketek Principal Mary Bosch.

The study may be used in the months ahead by light-rail supporters to show that more than just ridership levels should be considered when deciding whether to pursue the project.

But the study also is likely to get close scrutiny.

Mark Richard, a Spokane County commissioner and Light Rail Steering Committee member, questioned whether the development predicted to occur along the proposed corridor would actually be new or would just migrate there from other parts of the county.

The draft economic impact report is being distributed to business and economic development leaders, said Light Rail Steering Committee Chairwoman Phyllis Holmes.

“We want to put as much scrutiny on this as we can, not just amongst ourselves, but in the community,” Holmes said.

After studying light rail for four years, the STA Board of Directors is scheduled to consider this fall whether to move forward with a mass transit project.

The economic development study isn’t required by the Federal Transit Administration for consideration for federal funding, but Light Rail Steering Committee members thought it was essential to fully understand light rail’s potential impact on the community.

“The entire project is not validated solely on ridership,” said Spokane Regional Light Rail Project Manager K.C. Traver, who added that light rail’s success would likely depend on things like increased economic development, higher local tax receipts because of that development and lower infrastructure costs because of higher density near the rail line.

According to ridership modeling, by 2025 about 3,400 to 4,900 people each weekday would choose to use a Liberty Lake-to-downtown light-rail line depending on whether the track ran on 15-minute or 10-minute frequencies.

It’s predicted about 3,300 would use bus rapid transit (BRT) on 15-minute frequency. The downside is that while BRT is only abut a quarter of the projected cost of light rail, the community wouldn’t see as much economic development potential.

According to the report, businesses are more likely to invest in properties near permanent rails than possibly transitory bus lines.

Bus rapid transit would use existing streets, but buses would be given priority at intersections through new signaling systems, speeding them along the route.

The estimated cost to build BRT from downtown to Liberty Lake is $65 million. That compares to $226 million to build the lowest cost version of light rail between the two cities.