Feds designate $480,000 for Grand Rapids streetcar project

By: Deborah Johnson Wood

The proposed streetcar for downtown Grand Rapids is far from being a done deal, yet federal lawmakers have approved a $480,000 earmark from the 2008 Federal Transportation Appropriations Bill.

The money could fund a couple of studies: an environmental impact study, which is a prerequisite for federal funding, and a study of future alignment extensions that might be built after a first phase of development.

Peter Varga, CEO of The Rapid, says that anecdotal evidence indicates that business and city leaders think the streetcar will be approved because of the high return on investment in the streetcar corridor.

In Portland, Oregon, an initial 4.8-mile track cost $55.2 million and leveraged over $1 billion in development. In Little Rock, Arkansas, a 2.5-mile track cost $16.9 million and spurred $200 million in investment.

Chris Beckering of Grubb & Ellis Paramount Commerce is a downtown real estate insider, and, although he's heard a lot of talk, he hasn't seen any investment action yet.

"The concept of walkability in an urban environment is complemented by a robust transit system," says Beckering, "and a streetcar system will add to the momentum of downtown development. Right now, developers are factoring in the potential for the investment, but the streetcar project isn't far enough along where any developers are making acquisitions along the route."

"Once we have a definition of the project, know that it's worthwhile, and know that the people of Grand Rapids approve it," Varga adds, "then some kind of nonprofit would be formed to raise the money to build the streetcar."

Source: Peter Varga, The Rapid; Chris Beckering, Grubb & Ellis Paramount Commerce

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Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at [email protected].