NORFOLK
Selling naming rights to light-rail stations, park-and-ride lots, or even the entire rail system could reap nearly $29 million in revenue to help pay for running the system, a study shows.
While the city and Hampton Roads Transit have not decided whether to pursue the idea, the transit agency hired a consultant to explore its potential.
"In these economic times, naming rights is about revenue that is sorely needed," said City Councilman W. Randy Wright. "I see it as a steady revenue stream to help offset operating costs."
Light rail's annual operating costs are estimated to be $8 million to $9 million, of which the city will shoulder about 30 percent. Fares plus federal and state funds will cover the rest.
Norfolk has not sold naming rights for public facilities, although it recently announced a naming campaign for overhauling Town Point Park.
Wright said city leaders have approached the issue with trepidation.
"We've not been as aggressive on that front as we could have been," he said. "Maybe this could open it up a bit."
Locally, high-profile public facilities that have sold naming rights are the nTelos Pavilion amphitheater in Portsmouth, the Verizon Wireless Virginia Beach Amphitheater and the Sandler Center for Performing Arts in Virginia Beach.
It's a new concept to public transit and light rail in particular, according to consultant Alan Wulkan of InfraConsult, who works with HRT on light-rail public outreach.
In Cleveland, two hospitals bought the rights to name a new bus rapid transit system there Healthline for $11 million over 10 years. In Las Vegas, monorail stations and trains are named for sponsoring companies.
Several light-rail system operators are considering naming programs, including those in Detroit and in Phoenix, which opened its system Saturday.
HRT hired The Superlative Group Inc., of Cleveland, for $50,000 to study the potential. Its draft report values a package of naming rights for the Norfolk line at about $29 million over about 20 to 30 years.
"The most valuable asset will be the naming rights for the entire line," Wulkan said.
The 7.4-mile system, now under construction from the medical complex on Brambleton Avenue to the city line at Newtown Road, is already known as The Tide.
The consultant estimates that naming the entire system would be worth $20 million to $25 million if The Tide is dropped and replaced by a sponsor's name. If the city and HRT opt instead to maintain The Tide and go for a "presenting-level" sponsorship, the revenue would be about half.
Naming stations could generate another $3 million to $5 million, the report concludes.
The city and HRT could opt for a full package or could decide to name only some elements such as stations, the maintenance facility, and park-and-ride lots, or sell rights to operate vending machines and ATMs at stations.
Assistant City Manager Stanley A. Stein said, "I don't think this is something the city needs to rush into."
The $288 million light-rail line is projected to open in mid- to late 2010. Stein said he plans to have the consultant make a presentation to the City Council in about a month.
"It's fine to say this is how much we can raise, but what are the rules of the road going to be?" he asked. "What principles are we going to build this on?"
Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com
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jimjones ... I gotcha!
Sofa King smooth! H-46 pilot.
Thank you for the laugh!
I loved the various names some people have suggested. Here are some more:
You've been had.
Your money
Why?
Watch where the money goes.
Doesn't Make Sense
Light rail that could have gone from Ocean View to Downtown Norfolk is going from Downtown Norfolk to Where?
Maybe "Sofa King" will
Maybe "Sofa King" will sponsor it. They could even have their name on the EZ Pass. The "Sofa King" EZ Pass.
Open Source Consulting
Forget spending any money on a consultant, there's plenty of free "open source consulting" right here! I wish they would hurry up and build The Tide (current name). I hope it will be faster than bus 20, which takes 50 minutes to get from Newtown to Cedar Grove. Will the Go Pass and Max Express Pass be valid on the Tide? Anyway, I can't wait to hop on at the Sentara Newtown Station and ride the Viagra Express to the Verizon MacArthur Station. There are plenty of naming rights to be had: Segments of the line, stations, train cars. There is also plenty of space available for advertising on the inside and outside of train cars, at the stations, signs along the rail route, and even on the tickets. Are they going to sell naming rights to the buses and bus stations too?
"Many of these corporate companies will fail to exist a mere 50, 60 years from now." That's right Publius85, and then we get to sell the naming rights all over again!
You can't win, Norfolk
The same people who complain about the light rail costs are complaining now that someone has figured out a good way to offset a significant part of those costs. $50,000 is a small amount to pay the consultant. You're talking about tens of missions of dollars. You don't want to ask too little for the naming rates, nor do you want to ask so much that it takes more than a couple of years to sell them.
Ultimately, people would rather be riding the "Verizon Light Rail" system for $2 per day than to ride the Norfolk Light Rail System for $2.25 a day.
Corporations should think about this very, very carefully....
...the last thing they would want to see is a train emblazoned with their company name/logo in the news--right after it struck and killed a pedestrian or t-boned a motor vehicle. That will happen.
Naming Rights to the Tide Light Rail
Naming rights are nothing more than a reflection of greed and serves no one. The practice diminishes both the institution, in this case the City of Norfolk, and the company that buys the rights. I'm not sure where or when this greedy endeavor began but I loath the day it started.
Naming suggestions
How about names like "Seward's Folly", "The Iron Horse", "IBM personal computer", the "Hercules Spruce Goose” or the "CSS Virginia"?
name it failure
Name it FAIL-RAIL....over budget and underperformer...taxpayer money wasted
Appropriate Station Names
Some names for the Tide-tanic stations: "Trust Me..."
"A Good Investment, Like Nauticus..." and my favorite:
"Next Time We'll Use Vaseline"
Why should Norfolk keep any money? Others paid most of the tab
If The Tide were to be named after whomever "invested" the most into this boondoggle it would clearly be named "The Taxpayer". Since the bulk of the costs for this TOD sham were paid for by taxpayers outside of the City of Norfolk! Why should Norfolk be allowed to collect any naming rights and not the Federal Government, the State, or the region? Those taxpayers paid far more for more for this TOD train wreck than Norfolk did.
Good idea....
Glad to see Norfolk seeking those soloutions. I am so happy they do not transport those Thugs/Gangs to Chesapeake via this Light-Rail!! Now if Norfolk could only find a way to tax crime....they'd be cooking!
"It'll be to watch these
"It'll be to watch these light rail cars carrying their 3 people each to their destinations............just like the buses...."
What busses have you been riding? Try riding the 20 out of Downtown Norfolk in the afternoon. Standing room only. And this should say something about the Light Rail since it's path currently is parallel to that of the 20.
Got it....
EXTREME public transportation, powered by BRAWNDO!
too bad....
If Isaac Hayes were still around he'd pay to have it named "The Shaft"...
"Revenue that is sorely needed?"
"In these economic times, naming rights is about revenue that is sorely needed," said City Councilman W. Randy Wright. OK, then. While we're at it ..... revenue is "sorely needed" in our schools, public safety, and infrastructure also. Let's sell naming rights to our schools ("McGraw-Hill Textbooks Maury High School"), put ads on our police cars ("Smith and Wesson Norfolk Police"), on fire trucks ("Tabasco Norfolk Fire Dept"), on street sweepers ("Hoover Vacuums Norfolk Public Works"), etc.. Please pardon me! I'm off today and have entirely too much time on my hands! John Paul Jones.
Opens many possibilities
Cripes......$9M a year out of our pockets to run this thing a whopping 7 miles. Think how that $9M a year could have been put to use in the schools. Or,for that kind of money, we can buy over 500 new hybrids a year, with fuel, and pass them out free to the indigents who typically use this type of transit. Think of the impact that would have on the local economy too.
Think how many city facilities we have that we could sell naming rights for. Viagra may want the naming rights to city hall seeings how our city government is basically inpotent.
Whine, whine, whine.
One can always count on finding the "nattering nabobs of negativity" weighing in here.
If you have questions about how HRT is handling this, why not pick up the phone and call them? There's very little they do that isn't public information or FOI-able. If you're not happy with the answers you get, talk to the HRT representative (usually a mayor, council member or supervisor) from your city or county.
Responsible citizenship isn't a passive thing. With the rights of citizenship come responsibilities. If you want to have a healthy, open government, you must be willing to work at it some, too.
No rush?
Assistant City Manager Stanley A. Stein said, "I don't think this is something the city needs to rush into." Then .... "HRT hired The Superlative Group Inc., of Cleveland, for $50,000 to study the potential." What's another %50,000 thrown into HRT's "Trolley Folly" money pit? Another teacher or police officer's salary?
Naming Rights
Why stop at Light Rail. Technically we already have Chrysler Hall and Museum which were named in exchange for Mr Chrysler's gifts. The Harrison Opera House as I remember was also named in exchange for a monetary gift, but there is still SCOPE, The Cruise Terminal, Nauticus, Rec Centers, Police and Fire Stations, the Granby Municipal Building, Parking garages, parks, pump stations (many are at prominent intersections) and even water lines (see Va. Beach's Cofield water line) that can have naming rights sold. We might even be able to sell the rights to name bridges and interchanges, like Va. Beach Blvd and Military Hwy, THe underpasses at Hampton, Colley, Monticello, Tidewater, Va. Beach Bl. and Brambleton are candidates. The Brambleton Ave Bridge could become "the Bridge to Sentara" or the Hampton Blvd Bridge could become the "Bridge to ODU".
The School system can even sell the naming rights to the school buildings, gyms, auditoriums etc and athletic fields as well.
Oh well it's a thought..then we can use the money to build that $100 million Courthouse, which we can sell the naming rights too as well!!!! Talk about doubling your money!!! (note I am not a consultant and figur