Local Real Estate Firms Invest $500,000 In Loop Trolley

UNIVERSITY CITY, MO — Local real estate development firms Clayco and CRG today announced that they are dedicated to supporting The Loop Trolley project in order to make it operational. Clayco and GRG will immediately commit the funds necessary to get the project started, the companies' representatives said in a statement, and are committed to funding a $500,000 matching grant and at least one full time project manager and project executive to make sure the Loop Trolley stays on track.

“The Loop Trolley is an important part of a vision to create a vibrant neighborhood in a historic area to unite the City of St. Louis and St. Louis County together,” said Clayco CEO Robert Clark. “I’m confident the Loop Trolley will be a positive force in the community to help guarantee the area continues to be a top destination and a community where residents and students can work and live.”

There have been significant investments made by taxpayers to continue the Loop Trolley project, but it has been at a standstill for many months. A $25 million Federal Transit Authority grant, as well as local grants, tax credits and a special districtwide sales tax have made up the bulk of the project's initial funding. St. Louis County has provided $3 million toward the project, while University City has kicked in $250,000.

But, the Loop Trolley Company said in October it needed another half million dollars cash before it could begin services. In a letter sent to county and city officials, the company's president said the nonprofit would be insolvent by January due to recurring delays in starting service and the accompanying delay in revenue that was expected from fares.

St. Louis County Executive Steve Stenger told the Post-Dispatch last month that wasn't convinced of the need for further funding from the county. "I would say at this point it's probably not going to happen," Stenger said in an interview with the paper. "We would need to have more of a demonstration of need than we've been given." He encouraged the company to explore other avenues for obtaining funding.

Clayco and CRG have said they are committed not only to providing that funding, but also helping the Trolley team with leadership, support and resources to immediate make the Trolley fully operation by spring 2018. The City of St. Louis, St. Louis County and University City are also working get the regulatory items, permits and operational requirements in place by then.

“The Trolley is nostalgic and will be an important part of the region’s public transportation system,” Clark said. “But, it can only fulfill its role in the community if there are sufficient funds to operate it effectively.”

Image via Loop Trolley Company