Streetcar component a controversial part of Knowledge Park plan

Would a 1.5-mile streetcar system be the key to developing Rock Hill’s Knowledge Park and its projected high-tech jobs, residential community and retail shops, or would it become an underused service that diverts tax revenue from Rock Hill schools and York County government?

That question has emerged as a key issue during discussions about how to develop the corridor between downtown Rock Hill and Winthrop University. Supporters of a rail streetcar system say it’s an essential component to the Knowledge Park plans for the Bleachery, spurring development and bringing people to the park.

Opponents predict the streetcar won’t meet ridership expectations and the land needed for the streetcar will become city property, thus exempt from taxes paid to the county or the school district.

The debate comes as Knowledge Park supporters wrestle with two steps they say are needed for the project to unfold. Efforts continue to amend a special tax district downtown that would provide money to spur development. And negotiations on a master development agreement are ongoing with the company selected to lead the project.

The Knowledge Park is a two-pronged city economic development effort. One strategy is designed to bring high-tech jobs to Rock Hill. The other strategy is redevelopment of the former Rock Hill Printing & Finishing site – commonly called the Bleachery – into a multi-use community.

A plan proposed by the project’s master developer, Sora-Phelps, a partnership between Sora Development of Towson, Md., and Phelps Development of Greeley, Colo., calls for 19 buildings on the Bleachery site with 1.3 million square feet of retail, restaurant, office and residential space that would create more than 1,000 jobs.

The plan calls for a streetcar system that could cost about $20 million to build and $1 million annually to operate. The streetcar would run from the new Fountain Park downtown to Winthrop. It would run on rails and share the streets with other traffic.

The streetcar has become one of the bigger sticking points in discussions about whether to amend the tax district. City officials have asked York County Council and the Rock Hill school board to increase the tax district’s size and to extend its life. If the County Council and school board agree, some tax revenue would be diverted from schools and county operations to the Knowledge Park.

School board members have said if they go along with the request, they don’t want any of the money they give up to be spent on the streetcar system.

Tax district vote

School board Chairman Jim Vining said one reason for the board’s position is a lack of communication between the city and school board. He said the school board asked for information about the streetcar and was ignored.

City Manager David Vehaun has said the city needs to have more “intentional” talks with the school board about the streetcar and Knowledge Park.

Vining and school board member Walter Brown also have other concerns. Vining questions the estimated $1 million operating budget, fearing it would be much more.

Brown said the proposed streetcar “won’t serve a useful purpose” as he doesn’t think Winthrop students will ride it.

He said he is also concerned that land set aside for the streetcar would be city property and exempt from taxes that would normally go the school district and York County.

He also notes that the proposed route to Winthrop would take the streetcar outside the boundaries of the special tax district. By law, revenues from the special tax district that are set aside for improvements must be spent within the district, he said.

Last week, the city sent its latest tax district proposal to school board members and asked them to vote on it Monday night. The proposal does not mention the streetcar system.

Rock Hill Mayor Doug Echols has said the questions raised by the school board are part of the “healthy debate” needed to move the project forward.

Nothing set in stone

City officials have said the streetcar is just a concept. Its future would largely be determined by those willing to invest in the Knowledge Park.

Stephen Turner, the city’s economic development director, has said that “developers must tell us that the streetcar makes a difference, that it accelerates development.”

He also has said development of Knowledge Park without a streetcar “could be slower, have a different character” and might not include support from partners such as Winthrop University.

Echols said Friday there would need to be enough development in place for the city to justify moving forward with the streetcar. He said it could take as many as 10 years before the city would see that level of development.

Proponents: Essential to development

Former Winthrop president Anthony DiGiorgio said Friday a streetcar is “the thread that ties the whole (Knowledge Park) development together. Without it, there will be nothing to force, require, the attention to dead zones.” Dead zones are areas where development would be too costly and thus avoided.

“If the goal is to have a walkable, mixed-used community, we can’t have dead zones,” he said.

DiGiorgio was involved in the Knowledge Park Leadership Group, businessmen and community leaders who advocate for the project. As president of Winthrop, DiGiorgio was involved in several studies examining ways to better connect the university and the city.

DiGiorgio said the streetcar is an important part of an “infusion strategy” where Winthrop would grow beyond its current campus into the Knowledge Park.

Gary Williams, owner of the Williams and Fudge collection agency, said he supports the streetcar because it would benefit his employees and be a key component for spurring Knowledge Park growth. Williams’ business is in the Cotton Factory, located between downtown and Winthrop.

Currently, when his employees leave work for a break, they usually go to the Galleria or Manchester Village area by car, he said. A streetcar could keep them downtown.

Williams was part of a streetcar committee formed in 2009 that evaluated the idea. He traveled to Little Rock, Ark., to study that city’s RiverRail trolley system. Williams said the system created energy, spurred development, and brought people to downtown Little Rock.

According to a 2008 consultant’s report for Rock Hill, the Little Rock trolley cost $28 million and resulted in an investment of $400 million along its route, a 14-to-1 return on investment.

The consultant’s 2008 study predicts that even with moderate growth, a Knowledge Park streetcar would spur more development, about a 10 percent increase in commercial space and an 83 percent increase in the number of residences by 2025. Under a high-growth scenario, the number of residential units would more than double while commercial space would increase by 31 percent.

The Knowledge Park plan, with the streetcar concept, has been endorsed by the Knowledge Park Leadership Group, the York County Regional Chamber of Commerce, the Rock Hill Economic Development Corp. and City Council.

The city council has not taken a formal vote on the streetcar itself and recently asked city staff to study the issue.

The council wants more information on where a streetcar has worked and where it hasn’t. The council also asked if a trolley without rails is an option.

DiGiorgio and Williams said using rails shows potential developers the community is committed to the project. Williams said one recent Knowledge Park development prospect asked if the streetcar was definite. Williams did not reveal the prospect’s identity.

Vehaun said answers to the council’s questions won’t be ready until spring.

A streetcar connecting Winthrop to downtown was first proposed about 20 years ago when university officials were envisioning what the campus would look like in 20 years. A 2003 consultant’s study for the city also proposed a streetcar.

This story was originally published October 25, 2014 at 6:09 PM with the headline "Streetcar component a controversial part of Knowledge Park plan ."