The SOHO Loan Workshop sponsored by Small Business Development - August 15
Staff Resource: LaTonya Jones, 704-336-4178
On August 15th, the Small Business Development Program will host a Small Office-Home Office Financing Workshop (flyer attached). This program provides financing in $5000, $10,000, and $15,000 increments. Funds can be used for purchasing equipment/machinery, working capital, expansions, purchase of inventory or hiring personnel. Attendees will be able to complete the loan application at the workshop. This workshop is sponsored in partnership with the SBA's Community Express Loan Program and Innovative Bank out of California.
2005 Second Quarter Economic Development Report
Staff Resource: Tom Flynn, 704-432-1396
Attached is the 2005 Second Quarter Economic Development Report to the Mayor and City Council.
Metropolitan Transit Commission (MTC) Meeting Summary
Staff Resource: Ron Tober, 704-336-7245
At its meeting on Wednesday, July 27, 2005 the MTC unanimously approved Resolution 2005-05, which adopted the Policy Guidelines (implementation tools) to be used by the three (3) North Mecklenburg Towns (Cornelius, Davidson and Huntersville) to encourage transit-supportive development around transit stations and to help achieve selected public policy objectives and priorities consistent with the Centers and Corridors land use vision and the 2025 Integrated Transit/Land Use Plan.
The MTC received three information briefings (Southeast/West and Northeast Corridor Station Locations and Alignment Alternatives; and Transit Governance). All three of the items will be brought back to the MTC for action at their August 24 meeting. (NOTE: Council was scheduled to receive a briefing on the corridors at its July 26 dinner meeting but due to time constraints, it was rescheduled for August 22.)
Two of the briefings provided overall descriptions of the Southeast/West and Northeast Corridors, as well as alignment, terminus and station locations for each that will be studied further in the Draft Environmental Impact Statement (DEIS). The third briefing presented by the MTC Managers Group recommended amendments to the Transit Governance Interlocal Agreement that would address:
1. The timing of adding the representative of the North Carolina Board of Transportation as a voting member of the MTC.
2. The timing and criteria for adding representatives of jurisdictions outside Mecklenburg County as voting members of the MTC necessitated by implementation of the adopted 2025 Corridor System Plan.
3. Amendments to the governance provisions of the Interlocal Agreement that would facilitate timely and successful resolution of issues arising in the future, especially those potential impediments to continued implementation of the adopted 2025 Corridor System Plan created by one or two members of the MTC. (Budget Veto, New Membership, Under Representation Issues)
4. Re-constitution and re-mission of the Citizens Transit Advisory Group.
Finally, under the CEO's report, CATS staff reported:
1. Ridership on the transit system for FY2005 closed at 8.2% over the previous fiscal year marking the seventh consecutive year of ridership increases for CATS and representing a 49.8% increase since FY1998.
2. CATS' ADA Paratransit Improvement Plan, approved by the MTC in 2002 included a recommendation to modify the process for determining eligibility for its Special Transportation Service (STS). The new process required a more detailed application, in-person interview, and possibly a functional assessment of the applicant as needed. For those customers who are determined to be capable of using CATS' fixed route bus services and therefore not eligible to ride STS, the Plan calls for travel training assistance to assist customers with this transition.
CATS has contracted with the Carolinas Medical Center's Charlotte Institute of Rehabilitation to provide this travel training assistance service. Travel training will teach individuals with disabilities how they can ride the fixed route bus service. Participation in travel training is optional, and will cover subjects such as reading a bus schedule, boarding and deboarding, paying fares, purchasing passes, and requesting assistance from the bus operator.
Additionally, as part of the travel training program, CATS will offer one free monthly bus pass to customers who transition from STS to fixed route services. The bus pass will be used as a teaching tool during the training and then subsequently it will serve as an incentive for patrons to use the fixed route service. The gross cost per trip on STS is approximately 10 times more than the cost per passenger trip on the fixed route bus because STS's demand response service is almost entirely one origin to one destination. This new eligibility process and a travel training program are scheduled to start in the next two months.
3. The MTC was updated on plans for the issuance of debt for the South Corridor Light Rail Project (SCLRP) and other aspects of the approved FY2006-2010 Capital Program. In recent discussions with the Federal Transit Administration (FTA), City Finance and Financial Consultants and based on CATS Long Term financial plan, it has been determined that the total amount of the FY2006 financing will be $ 200 million split between short-term and long-term segments as described below. The financing will cover the proposed transit system and include, as collateral, major assets of the SCLRP and is being issued in compliance with the debt and financial policies adopted by the MTC.
The City of Charlotte will issue additional Certificates of Participation for $200 million to fund construction costs of portions of the transit system as follows:
- $125 million variable rate debt to assist cash flow prior to receipt of Federal New Starts grant funds. This debt will be called at intervalsupon receipt of grant payments from the Federal and State governments.
- $75 million fixed rate to fund a portion of the local share of SCLRP.
CATS has received confirmation from FTA acknowledging that its rights in the transit projects are subordinate to the rights of the Deed of Trust Trustee. Charlotte City Council approved the financing on July 25, 2005. The Local Government Commission is scheduled to approve the financing structure and financing documents on August 2, 2005. The Purchase Agreements are scheduled for execution on August 30, 2005, with closing on August 30 or 31, 2005.
The MTC's next meeting will be August 24, 2005.
