DDA to explore trolley to connect Oxford, Orion

Interest was expressed, but no commitments were made regarding a proposed trolley service to shuttle shoppers and diners to locations in Oxford and Orion.

Last week, the Oxford Downtown Development Authority (DDA) board voted 7-2 to move forward with exploring the idea.

“I just assume this would be huge with the business owners, especially the restaurants,” said DDA Board Member Geno Mallia, Jr.

The North Oakland Transportation Authority (NOTA) is considering purchasing a used, wheeled-trolley to transport riders along a “fixed route” between Oxford and Orion.

The proposed route would include stops at the Kmart and Kroger stores in Orion Township, the downtown areas in the villages of Oxford and Lake Orion, and the Meijer store and Legacy Center in Oxford Township. It’s estimated each roundtrip would take about 30 minutes.

“People enjoy riding on trolleys,” said NOTA Director Lynn Gustafson. “It offers a nostalgic feel, which I think fits into both communities very well.”

According to Gustafson, a used trolley can be purchased for approximately $60,000 and NOTA has a little more than $100,000 left in this year’s capital budget to cover it.

She proposed having the trolley run from May 1 through Sept. 30 on Thursdays through Sundays for 42 hours a week.

The proposed rider fee is $1 per trip and Gustafson told the DDA the trolleys can generally hold between 23 and 30 passengers.

Gustafson believes a trolley would “help boost sales, support local businesses, keep money in our communities and promote community togetherness.”

“I believe it’s a win-win for residents and businesses,” she told the DDA board. “It would improve community service by offering transportation to everyone, not just the seniors and disabled that (NOTA) currently serves.”

The trolley could also be used for community events, rented for special events and even used in December to promote local holiday shopping, according to Gustafson.

But in order to hit the streets, the trolley has a huge financial obstacle to overcome. While NOTA has the cash to buy one, it does not have the additional funds to operate it.

According to a proposed budget prepared by Gustafson, the potential revenue is estimated to be $11,000. Revenue sources include fares, donations, the sale of advertising space and vehicle trips for special events.

But the potential expenses total $56,530, meaning the trolley would be operating at a net loss of $45,530 annually.

Gustafson said the NOTA board is “very adamant” that 100 percent of the operational costs must be covered by outside funding sources.

“They believe that the millage that we collect should be kept for the seniors and the disabled (NOTA serves), and that this trolley benefits the businesses enough that they should be paying for the operation of it,” she said.

Gustafson suggested the possibility of the Oxford and Lake Orion DDAs returning the portion of NOTA’s millage that each captures on an annual basis. For 2017, the Oxford DDA is expected to capture $3,908, while the Lake Orion DDA is expected to receive $8,689 from NOTA’s millage.

However, she noted even if both DDAs returned all of their captured dollars, the trolley project would still be short nearly $33,000 per year.

Gustafson has started seeking sponsorships from local businesses.

“I haven’t got any commitments yet,” she said. “They seem to be interested, but again, there’s no commitments.”

Gustafson asked if the DDA would be willing to help solicit businesses to sponsor the trolley.

The trolley proposal met with some favorable responses.

“I think I’m actually for it,” said DDA Board Member Rod Charles.

Based on the people he’s spoken with, Charles said NOTA is a “pretty efficient organization.”

“Apparently, you guys don’t waste a lot of money,” he said.

To Mallia, the trolley would be one more way to get people “out and about” and help promote local businesses.

He believes the trolley would be perfect for folks who wish to tour Oxford and Orion’s craft breweries. He said it would allow people to safely visit them and alleviate parking problems in the downtown areas, all for $1 per ride.

But DDA Chair Sue Bossardet pointed out people would still have to park somewhere to grab the trolley and they would still have to drive home.

“The trolley’s not going to pick you up at your house,” she said.

The only opposition to the trolley idea was expressed by Bossardet and DDA Board Member Dorothy Johnston, both of whom voted against the motion to explore it.

“I don’t think I would ever use it, quite frankly,” said Bossardet, who noted she wouldn’t take a trolley to Meijer or Kmart when she can just drive there herself.

Bossardet’s biggest issue was with what she viewed as the lack of details in NOTA’s proposal.

“I don’t see any plan, so to speak,” she said. “It’s just all vague – so vague that I just can’t support it.”

While Johnston also found the trolley proposal to be vague, one of her big concerns was the request to have the DDA help solicit business sponsors.

She noted the DDA isn’t “flush” with volunteers and the prospect of asking the same people to do more “kind of scares me a bit.”

“I’m not sure that we want to take on more . . . I don’t,” Johnston said. “I just see that as one more job to do.”

“I don’t think it’s fair to push it on the executive director, either,” added Bossardet. “I think that he’s stretched to the limit.”

Bossardet said she would feel more comfortable if NOTA was going out and soliciting business sponsorships.

“It sounds to me like they expect us or they would like us to do the bulk of the work . . . I would expect (the NOTA) board to get out and walk the streets and sell the idea,” she said.

Bossardet made it clear she would “not be in favor” of returning the captured funds to NOTA because the DDA needs money to put toward the M-24 rebuild project expected to happen in 2019 (see related story on Page 5).

“I’m sure that you know that the DDA is struggling with money and we have a huge road project coming up,” she said. “We’re putting as much money as we can away, consistently, and we’re trying to cut our expenses to do that.”

 

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