Friday, April 24, 2009

Additional LRT revenues: Naming Rights

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.

...In Cleveland, two hospitals bought the rights to name a new bus rapid transit system there Healthline for $11 million over 10 years.

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