TOD Toolkit: Making a Profit, Creating a Community

1. TOD Toolkit: Making a Profit, Creating a Community

2. What is Transit Oriented Development? TOD is defined as compact development within easy walking distance to transit stations that hosts a broad mix of uses, including housing, jobs, shops, and restaurants. • What benefits can TOD provide for communities? • Increases “location efficiency” so people can walk, bike, and take transit • Boosts transit ridership and minimizes the impact of traffic • Provides a rich mix of housing, jobs, shops, and recreational choices • Provides value for the public and private sectors, and for new and existing residents • Creates a sense of community and place

3. TOD and Value Creation • ULI “Emerging Trends” ranked TOD • as a best bet for investors 3 years • in a row. • 2005: “locations near transit rank as no. 1 choice” • 2006: “distance between where we live and where we work will matter more.” • 2007: “(TODs) have turned into the nation’s investment property meccas.”

4. TOD and Value Creation • New development creates new transit riders • Increased land values can generate new public revenues • Can helpfinance the features that make TOD work • Streetscape improvements • Historic preservation • Green space • Distinction betweenTOD and Joint Development New TOD projects occurring in Denver, CO

5. Start with Opportunities and Work Toward Implementation • TOD and Value Creation

6. TOD and Joint Development Public Agency (e.g. transit agency, city, county or state department of transportation) • Own or control the land, often located immediately adjacent to the station. • Ownership allows them to control what goes on the site and how it relates to the transit station and the neighborhood. • Goal: make a profit and support transit service. A design for the LaCrosse Transit Center, which will be built by a private developer. • The private role (e.g. non-profit or for-profit developer): • Develop the site, and then turn it over for sale or lease OR acquire it or obtain a long term lease themselves. • Bring expertise in market demand and construction processes. • Goal: make a profit and possibly support the health of the neighborhood if they own other nearby sites.

7. TOD vs. Development Oriented Transit Transit designed to support development through convenient location, design and schedules. Streetcars fostered the development of the Central City and expansion of the suburbs in nineteenth-century Minneapolis. More recently, it’s helped in reshaping downtown Portland and revitalizing downtown Tampa.

8. TOD vs. Development Oriented Transit Below: This park-and-ride in Seattle puts the automobile ahead of the pedestrian and surrounding development…but it may be an excellent redevelopment opportunity someday. Above: The location of this Phoenix light rail station in the middle of a street, is typical of newer systems, but not ideal in terms of promoting station area development.

9. TOD vs. Transit Adjacent Development Simply locating development adjacent to transit is not enough. • Does the use support transit, i.e. would people take transit to get there? • Is the design walkable, safe and inviting? • Is the size and scale appropriate? • Does the development support community needs? An example of transit adjacent development, far too common in many Twin Cities communities.

10. What about Bus-Oriented Development? • Research is inconclusive, BUT: • Growing opportunity with BRT systems coming on-line • Eugene, OR; • Boston, MA; • Los Angeles, CA; • Kansas City, MO; and, • many others… • Even greater need to consider land use • Intermodal connections and major arterials • Developer response re: permanence? People boarding Boston's Silver Line Bus Rapid Transit along its Washington St. route. Learn more at www.allaboutsilverline.com

11. Density Bonuses Direct private sector contributions Developer Fees Assessment Districts such as TIFs, BIDs, etc. Negotiated Investments such as Developer Agreements and Community Benefit Agreements Consideration in Federal Funding: Costs and FFGA • Examples of Value Creation and Capture

12. Dallas, TX: Light rail has generated $1billion in development, $3.7 billion in economic activity, and 32,000 jobs. Santa Clara, CA: Along commuter rail line, Premiums for TOD residential 45% higher than similar non-TOD units; 23% premiums for TOD commercial. Evanston, IL: Between 1990 and 2005, the suburb added more than 2,472 housing units in its commuter rail transit zones and its Equalized Assessed Value increased by 40% between 2000-2004 SF Bay Area, CA: BART estimates that 50 mixed-use developments have been built or are under construction along the region's six rail systems, with double that number planned. • Examples of Value Creation and Capture

13. Arlington Heights, IL TOD • Examples of Value Creation and Capture • Hundreds of relatively affordable units of multi family housing has been constructed. • Retail trade has grown at the 157,000 square feet of retail space . • 3,200 daily commuters on Metra from new Commuter Rail station • The downtown population has grown from 350 to about 2,200.

14. Examples of Value Creation and Capture Arlington’s Orange Line • 81% increase in land value around station since 1995 • 38% of residents take transit to work, 73% walk to stations • 12% of Arlington County households don’t own cars, versus 4% regionally • 8% of county land generates 33% of revenues,allowing Arlington to have the lowest property tax of any major jurisdiction in Northern Virginia • Rail investment can be used as a catalyst for development Then and Now

15. Examples of Value Creation and Capture Arlington’s site review process By Right or Density Bonuses tied to GLUP • Historic Preservation • Affordable Housing • Streetscape • Open space • TDM, Parking, other investments Currently in process of Updating County’s Master Transportation Plan New TOD projects in Arlington, VA

16. Examples of Value Creation and Capture Portland’s Pearl District • Coordinated new streetcar investment, urban renewal and brownfields clean-up with the private and public sectors. • The Results: • 7,248 housing units built since 2000. • 4.6 million square feet of office • Portland met its 20 year housing goal in 7 years on 1/10th the land • Properties closest to streetcar developed at 90% of permitted density Portland’s Streetcar opened in 2001, operates in mixed-traffic, and carries over 7,700 riders per day connecting the Pearl to South Waterfront.

17. Examples of Value Creation and Capture Portland’s Developer Agreements • 15%+ of Units in New Projects are Affordable • City-wide Affordable Housing Advocates Participated in Planning and Negotiation of Development Agreements • Tax Abatement Incentives For Central City and TOD Key for Affordable Housing Development – Currently Amending to Apply Equally to For-profits and Non-profit Affordable Housing Developers

18. 11,931 housing units and 1,054,436 square feet of commercial space have been built, are currently under construction, are planned or proposed within a half mile of the line’s 17 stations. The majority of these projects, 65 out of 108 total projects and 45 out of 72 residential and mixed use/residential projects, are within the half-mile areas surrounding the four Downtown stations Transit investment has leveraged higher-density TOD in historic industrial areas “Hot Market” for Downtown station areas apart from transit • Development Response along Hiawatha Recent Planned and Proposed Development, since 2003

19. Analyzing Development Potential in a Corridor: Spotlight on Charlotte Development-Oriented Transit – In Practice New Development occurring along Charlotte’s South Corridor, Photo Courtesy of Jon Bell

20. Charlotte’s South Corridor: A Planned Growth Corridor • Development-Oriented Transit – In Practice Transit Characteristics • Light Rail Scheduled to open Dec 2007 • Arterial Road or Existing Abandoned Right of Way • Short to Medium Headways • High Auto Journey to Work/ Low Transit or Walking • Moderate to High Bus Connectivity • Primary Use – Congestion Mitigation, Economic Development Land Use Characteristics • Mixed/ Outdated Land Uses • Line Connects Major Regional Job Center • Low to Moderate Residential Densities • Redevelopment Opportunities High from Industrial and Commercial Properties

21. Charlotte’s South Corridor: Development Potential • Development-Oriented Transit – In Practice • Major Opportunities • Underutilized Industrial and Commercial Properties • Value of building relative to land value • ~1295 Acres Underutilized • 251 Acres in 6 Properties • Major Challenges • Retrofitting infrastructure (sidewalks, sewers, etc.) • Creating critical mass • Financing

22. Charlotte’s South Corridor: Development Response • Development-Oriented Transit – In Practice • Activity in Uptown & South End; Majority Regional Growth in Suburbs • 46 Development Projects Recently Built or Planned in Corridor; 34 Housing/MU • Uptown & South End Stations Zoned for TOD • Outer Commuter Stations TOD Overlay in Progress • Overlay Intended to Transition Development Direction Without Stimulating Land Costs before Market is Ready

23. Development-Oriented Transit For the Twin Cities Major Twin Cities Employment Centers overlaid with Transit Plans Met Council’s Long Term Vision for a Regional Transit Network How well are transit investments and employment opportunities linked?

24. Development-Oriented Transit For the Twin Cities • Weigh critical factors • Easiest alignment • Cost of Right of Way • Demographics and Commuter patterns • VERSUS • Development Potential • Origins, Destinations and • Employment Connections

25. Putting It All Together for the Twin Cities • Hiawatha is a tremendous opportunity to learn from and expand • Partnerships – public/private and along the corridor • Vision: at state, regional and local levels for mobility and economic development potential • Balancing Nodes and Corridors – access and connections to housing and jobs • Leadership and Vision are Required