The Colorado Department of Transportation (CDOT) is proposing the Southeast Corridor project, a 19.7-mile light rail transit (LRT) system extending from the existing LRT station at I-25 and Broadway in Denver along I-25 to Lincoln Avenue in Douglas County, with a LRT spur line along I-225 to Parker Road in Arapahoe County. The double track system is proposed to operate on an exclusive, grade-separated right-of-way and connect with the existing 5.3-mile Central Corridor light rail line in downtown Denver. At I-25 and Broadway, the Southeast Corridor would also connect with the Regional Transportation District’s (RTD) Southwest Corridor light rail line which is currently under construction.

The capital cost estimate of the fixed-guideway element is $479.7 million (in 1997 dollars), including right-of-way acquisition, final design, construction, and acquisition of rolling stock. FTA has estimated total project costs in year of expenditure (YOE) at $595.7 million, with a Section 5309 share of $476.6 million. Annual operating costs for the year 2020 are estimated at $22.3 million (1997 dollars). Ridership is estimated at 29,250 daily boardings, 16,000 of which are new riders.

The overall project rating applies to this Annual New Starts Report and reflects conditions as of November 1998. Project evaluation is an ongoing process. As new starts projects proceed through development, the estimates of costs, benefits, and impacts are refined. The FTA ratings and recommendations will be updated annually to reflect new information, changing conditions, and refined financing plans.

The Colorado Department of Transportation (CDOT), in cooperation with the Denver Regional Council of Governments (DRCOG) and the RTD, completed a Major Investment Study on the corridor in July 1997. The DRCOG Board has included the LRT locally preferred alternative in the 2020 Long Range Regional Transportation Plan. Preliminary engineering and environmental work were initiated in the spring of 1998. A Record of Decision is expected in the Spring of 2000 and opening day is estimated for 2008.

In November 1997, a local referendum to increase the RTD’s sales tax revenue base - - which would have provided sufficient funding to construct and operate LRT in a number of corridors - - was defeated by the voters. Subsequently, CDOT has agreed to implement LRT in the Southeast Corridor, using State transportation funds as local match. A combination of Federal Highway Administration (FHWA) and State funds will fund Preliminary Engineering (PE).

TEA-21 Section 3030(a)(23) authorized the Denver Southeast LRT for final design and construction. Through FY 1999, Congress has appropriated $0.5 million in Section 5309 funds for this proposal.

The following criteria have been estimated in conformance with FTA’s Technical Guidance on Section 5309 New Starts Criteria. N/A indicates that data are not available for this specific measure.

CDOT estimates the following annual travel time savings for the Southeast line.

Based on U.S. Census Data, there are 1,624 low-income households within ½ mile of the 10 proposed (and one existing) stations, representing 16.7 percent of total households served within ½ mile of the stations.

Denver is currently classified a "transitional" nonattainment area for ozone, a "serious" nonattainment area for carbon monoxide, and a "moderate" nonattainment area for PM-10. Denver is in attainment for NO_x. CDOT estimates the following emissions reductions in pollutant emissions. Note that CDOT estimates an increase in CO2 compared with the TSM alternative.

CDOT estimates the following changes in regional energy consumption (measured in British Thermal Units–BTU) will occur. Note that a decrease is reported in the comparison between the New Start and No-Build, and an increase reported between the New Start and TSM.

Values reflect annual BTU reductions. Values in brackets [ ] indicate an increase in emissions.

CDOT estimates the following operating costs per passenger mile.

CDOT estimates the following cost effectiveness indices:

The Medium land use rating reflects the existence of several major employment and activity centers and the transit-oriented policies and zoning that some, but not all, of the affected jurisdictions have adopted. The existing LRT system would link the two largest employment centers in the region: the Denver CBD, with over 100,000 employees in 1995, and the South I-25 business area, with approximately 80,000 employees in 1995. Population densities are generally low to moderate, at less than 10 persons per acre in most station areas.

The corridor has been designated in the regional long range plan as an "urban center" which is a high-intensity, pedestrian oriented, mixed use area. Numerous opportunities for joint development exist at proposed stations, particularly at Colorado Center, Broadway, Union, Arapahoe, Dry Creek, County Line, and Lincoln Avenue. Denver and Aurora have established some transit-oriented development and parking policies. These two municipalities have also revised station-area zoning by adopting transit-supportive changes. The other three jurisdictions affected by the proposed investment have minimal or no transit-supportive policies or station-area zoning regulations.

CDOT proposes that $383 million (80 percent) in Section 5309 New Start funds and 95.9 million (20 percent) in State funds be applied to the project.

The Medium capital financing plan rating reflects the financial strength of the State of Colorado and the RTD and the failure to raise RTD’s sales tax revenue base by voter local referendum in 1997. Currently, the local contribution for the project is proposed to come from SB 97-01 funds, a State source which makes available to CDOT 10 percent of the sales and excise taxes on motor vehicles and accessories collected over the next five years (estimated to generate $839 million dollars over this period). CDOT can use up to 20 percent of these funds for transit.

The Low-Medium operating financing plan rating reflects the absence of a formal agreement between the State and the RTD for operating the system once built, and the need to prepare a complete financial plan. The State and the RTD expect to address the formal agreement issue in 1999. Annual operating cost of the project in 2020 is estimated at $22.3 million (in 1997 dollars). A dedicated sales tax currently provides 70 percent of RTD’s operating revenues. Recent efforts to increase this tax through public referendum have been unsuccessful.