Sioux City, Iowa, Gets $10 Million From ISTEA to Build Light Rail

CHICAGO - When Congress passed a $203 billion national transportation bill last week, there probably wasn't anyone more shocked than Sioux City, Iowa, town leaders.

The northwest Iowa community of 82,000 learned it would receive $10 million of money from the reauthorization of the Intermodal Surface Transportation Efficiency Act for a light-rail system.

The project is expected to cost $12 million, with the remaining $2 million to be paid by the city. City treasurer Frank Gray said that portion may be financed with bonds, though the timing of the debt is up in the air.

The fact is, the city didn't think it'd get any money for light rail for several more years, so the plan had languished, said city transit director Dan Jensen.

"Where we're at currently is getting over the shock of getting this money," Jensen said.

The news apparently stunned residents, said Dave Dreeszen, a local newspaper reporter. He said many people didn't even realize Sioux City was considering building a rail system.

If Sioux City builds the rail, it would be the first town in Iowa to do so. Jensen said he will ask for bids from engineers to complete a study by next summer, and whoever is hired will also be in charge of building the project. The news came so suddenly that Dreeszen said he hasn't yet been able to gather all necessary city leaders to even discuss the plan.

When asked why such a small community would want a train system, Jensen said the plan fits in with the Missouri River town's history. Sioux City was home to the first elevated train in the world, which opened in 1894. The town also had an extensive streetcar network that went by the wayside with the advent of automobiles.

Though there is no final route plan, Jensen said the light rail would connect the riverfront and its riverboat gaming, and Sioux City's downtown district, which are geographically separated by the north-south Interstate 29.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER