City Council approves $1.2 million for streetcar cost overruns

streetcar trees
The City of Dallas paid $113,000 to move two oak trees on Zang at Seventh to make way for the streetcar.

The $50-million extension of the Dallas streetcar from Methodist hospital to the Bishop Arts District is over budget by $1.2 million.

The city paid $113,000 to move, rather than cut down, two old Oak trees to make way for the streetcar stop on Zang at Seventh. They’re also paying about $750,000 to move an electrical substation and $400,000 for other unforeseen project costs such as moving utility lines.

The problem is that some of those projects were completed before City Council authorized paying for them out of the general fund. The trees, for example, were moved in March.

Sponsored Message

Councilwoman Jennifer Staubach Gates, Mayor Mike Rawlings and several other council members noted the spending should’ve been approved before the contracts were awarded.

“That is not the way we do business,” Councilwoman Carolyn King Arnold said. “I am not here to rubber stamp those types of behaviors.”

Councilman Scott Griggs, who has championed transparency in city government, said he doesn’t know why the costs were brought to City Council after the work was done.

“We’ve known since 2014 that we would have overruns with the streetcar,” he said.

The streetcar extension receives federal funding, and it must be constructed on time — it is scheduled to open in the fall — or face penalties.

Staubach and Councilwoman Sandy Greyson also questioned whether the city should be spending so much money out of the general fund — the city’s portion is now more than $32 million — on a project that serves a small portion of the city. The streetcar’s current ridership is typically between 150-300 people per day.

“It’s costing our taxpayers a lot of money,” Gates said.

Sponsored Message

It’s expected to cost about $2 million a year to operate, and there’s no fee to ride it, Greyson noted.

“Why are we giving free rides to some people in the city and not elsewhere?” she asked. “Everybody else is paying fares.”

But Councilman Phillip Kingston argued that the streetcar is “a nascent baby” that the city has to nurture in this phase so that it can be successful and possibly change transportation in Dallas.

The streetcar was born of “crazy cliffters” who were tired of having freeways built everywhere, and it’s important to look at the big picture, Kingston says.

“This council is so schizophrenic in its support of public transportation,” he said. “We starve it and then we complain that it’s not serving enough people.”

Council voted unanimously to approve the $1.2 million expenditure.

Written By
More from Rachel Stone

Bishop Arts developer plans art garden, opens pop-up gallery

A public art garden is part of the plan for the upcoming...
Read More
  • Pingback: Dallas Streetcar | Transit Oriented Development on Main St.()

  • OC Dwellin

    Gates is worried about this costing us taxpayers money but yet voted yes to giving away 3M and 4k a day. Way to really look out for “us”.

  • lakewoodhobo

    It does sting a little, but give me a break. This is a very long-term and proven investment, not some quick fix or questionable gamble like $3M for Costco.

    Given the trends in brick & mortar and big-box retail, can we even count on Costco being around in 15-20 years? I know the streetcar will be.