HOUSTON — Based on a financial review, METRO will not proceed with the federal grant application for the University Corridor Project at this time.
According to METRO’s Board of Directors, the Federal Transit Administration has communicated with METRO’s executive staff the agency will not be precluded from applying for funding at a later date, should the project prove to have future financial viability. Additionally, it will not impact other funding opportunities.
Financial estimates for the project in 2019 were aspirational, but the COVID-19 pandemic significantly reduced ridership and increased costs — variables that were not calculated at the time the project was proposed, METRO explained.
The project, as planned, would reportedly put the agency in a position that would financially impact METRO’s day-to-day operations and “severely limit the ability to implement essential services such as increased public safety, bus frequency, bus and train cleanliness, improved bus shelters, and enhanced sidewalks and roadways since the federal grant does not cover the estimated $1.5 billion liability,” a news release said.
“Our priority is a public transit system that is safe, clean, reliable and accessible,” stated METRO Chair Elizabeth González Brock. “METRO’s decision to not proceed with the federal grant process at this time is based upon the need to prioritize improved customer and community essential services and will better position the Authority to increase overall system ridership.”
METRO says it plans to move forward with proof of concept and more viable infrastructure projects that are part of overall growth and development plans for the entire community, such as the Gulfton Transit and Revitalization Project.
“We will continue to engage with METRO customers, community leaders and key stakeholders as we review the viability of future projects and initiatives,” stated Brock.
Source: METRO
