Agenda - Council Work Session - 09/24/2013

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The presence of transit at a station location can have a positive effect on market and development potentials in the immediate area because transit improves the regional accessibility of the station area properties, which has a positive impact on property values. These higher land values can support higher development densities and in some cases a different mix of land uses in much the same way as property adjacent to a highway interchange is different from development farther away. However, the presence of transit alone does not translate to greater development potentials. There are other key economic requirements impacting TOD, including: • A Positive Market — TOD cannot overcome other negative local or national real estate market conditions, including negative household or employment growth, declining building and land values, or the lack of conventional development financing. • Supportive Public Policy — In order for a TOD activity center to be built, the local jurisdiction needs to provide a planning framework and zoning that allows for the type, mix, and density of development supportable by the market and desired by the community. • Realistic Expectations — TOD can alter the location, density, and form of development within a market area. It can have a positive impact on the development capture of a city or sub -region. However, it cannot by itself create the demand for net new development within the larger region. TOD also requires a commitment to a long-term development plan. Historically TOD does not occur until the transit investment is in place and provides a high level of accessibility that is generating high levels of ridership. In all but the most robust real estate markets, a TOD plan will take 20 or more years to become a significant activity center. Commuter Rail vs. Light Rail Commuter rail differs from light rail or heavy rail in terms of its characteristics and markets served; similarly TOD opportunities associated with commuter rail also have some important distinctions. Commuter rail is most often passenger transit service utilizing diesel or electric propelled trains on existing track and/or right-of-ways utilized by freight or other passenger trains. It generally provides frequent peak -hour service and work trip oriented service of longer distances, typically 20 miles or more, with longer station spacings of two to five miles. Until recently, commuter rail systems were only found in the largest metropolitan areas including Boston, Chicago, Montreal, New York, Philadelphia, San Francisco, and Toronto. These systems are made up of multiple commuter rail lines and connect to light rail, heavy rail, and subway systems. The number of destinations that are accessible from these older systems is much larger than some of the newer systems. In the last 20 years, commuter rail lines have been developed in the next tier urban markets including Albuquerque/Santa Fe, Dallas, Los Angeles, Miami, Minneapolis, Portland, and Seattle, as shown in Table 1-1. These newer systems are generally single corridors rather than components of a larger system and have less than 10,000 average daily riders. 1-4