In 2022 our streetcars had an operating loss of $2.9 million, with 65,000 free rides, which means that each ride was subsidized $44.62.
By contrast, our buses were subsidized $8.77 per ride during the same period.
Emma Hoggard of KVIA reports that our City is in the process of reviewing a new study analyzing streetcar costs and operations.
Contrary to the public claims of Peter Svarzbein (who owns this financial disaster), the study indicates that real estate along the streetcar corridor has appreciated only 3% more than El Paso real estate in general.
The City credits the streetcar with creating $121 million in investments, 60 jobs, and renovations to three historic buildings, but without any supporting data.
KVIA also reports that “Researchers estimate the streetcar area will generate an additional $156.7 million in property tax revenue for the city in the next 25 years.”
How do they know that? Hardly anyone rides the thing!
But here’s the clincher…
Even though the streetcars are totally insolvent, the study recommends doubling down by expanding service from 34 to 81 hours per week!
If our City Council believes the study’s conclusions and implements its recommendations, then Peter’s trolleys, which run in a circle to nowhere, will continue to negatively impact our City budget for decades to come.