Think tank’s report highlights best practices from peer cities to maximize Memphis’ existing transit investment, support economic development, and improve downtown mobility
NASHVILLE – A new policy roadmap released today by nonpartisan think tank ThinkTennessee offers recommendations for how city leaders can revitalize the Memphis streetcar system as a reliable, high-ridership transit asset that contributes to economic vitality in downtown. Drawing on best practices from peer cities, the report outlines strategies to restore and strengthen Memphis’ downtown trolley system after years of service disruptions and maintenance challenges.
“Memphis has already made a significant investment in its streetcar system – rail infrastructure that is now likely worth over half a billion dollars. This is a unique transit asset that only a handful of other cities in the country have,” said Erin Hafkenschiel, president of ThinkTennessee. “By following the models of cities like Tampa, Kansas City, and Tucson that have maximized their streetcars with well-funded and operated systems, Memphis can transform its trolley system back into an engine for economic growth in the heart of downtown.”
Memphis is one of only 21 cities in the United States with a streetcar system. The city’s three trolley lines were built between 1993 and 2004 as part of a broader downtown revitalization effort. At its peak, the system carried more than 1.1 million passengers annually, including approximately 700,000 tourists, and helped spur significant growth in surrounding property values. Today, only the Main Street line remains in operation, using rubber-wheeled trolley buses rather than rail vehicles. The Riverfront and Madison Avenue lines remain suspended due to maintenance and safety issues.
According to the report, restoring the existing system represents a far more cost-effective option than constructing a new urban rail network. Building a comparable 7.2-mile system today would cost approximately $675 million for streetcars and as much as $1.5 billion for a light-rail system.
Drawing on case studies from Tampa, Kansas City, Portland, and Tucson, the report identifies four key recommendations:
- Adopt a nonprofit operating model. Cities like Kansas City and Tampa have improved service quality and financial sustainability by having a nonprofit corporation manage scheduling, marketing, and revenue generation, while the transit agency handles drivers and maintenance.
- Fund operations through development districts. Property-based development districts, used in Tampa, Kansas City, Portland, and Dallas, generate dedicated, stable revenue for streetcar operations. The tax burden on property owners is offset by increased property values and economic activity – as seen in Memphis itself, where commercial land values near the Madison Avenue Line rose 70% and residential values rose 780% between 2002 and 2008.
- Invest in high-frequency service. Systems running every 10-15 minutes attract nearly three and a half times more ridership than those running every 20 minutes, based on data from 15 U.S. streetcar systems. Frequent service makes the trolley a reliable choice for both daily commuters and visitors.
- Modernize the fleet. Heritage streetcars like those in Memphis require specialized and increasingly scarce maintenance expertise. Modern streetcars reduce maintenance burdens while offering higher capacity, faster boarding, better accessibility, and improved energy efficiency.
Memphis’ trolley system has demonstrated its value over the years as both a critical transit service and an economic development tool. With new strategic partnerships and investments, a revitalized trolley system could restore those benefits while also shepherding in a new day for economic growth downtown.
The full policy roadmap, Restoring the Downtown Trolley: Best Practices for Maximizing Memphis’ Investment, is available at thinktennessee.org/research/infrastructure.
