Transit Oriented Development: Addressing the Challenges and Capitalizing on Opportunities

Mariia Zimmerman, Principal MZ Strategies, LLC Mariia@MZStrategies.com

© all rights reserved for MZ Strategies, LLC unless otherwise noted in this presentation.

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 does TOD provide for communities?  

 •  It’s about QUALITY OF LIFE: walk, bike, take transit (and

yes, drive)

•  It’s about RETURN ON INVESTMENT from ridership and increased property value assets

•  It’s about PLACEMAKING: a rich mix of housing, jobs, shops, and recreational choices

•  It’s about SAFETY and VIBRANCY on the street and sidewalks

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An example of transit adjacent development, far too common in many Twin Cities communities.

Simply locating development adjacent to transit is not enough

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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 Atlanta and revitalizing downtown Tampa and Tucson.

What is Development Oriented Transit?

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Development that creates healthy vibrant communities of opportunity where low‐income people, people of color and people with disabilities participate in and benefit from systems, decisions and activities that shape their neighborhoods.

What is Equitable Development?

For who in our community? •  Current and future RESIDENTS of the corridor

•  Current & future BUSINESSES of the corridor

•  REGIONAL POPULATION (and state) •  Employees/employers •  Recreation and Retail •  Students and Healthcare

•  AGE, INCOME, ABILITIES

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What is driving the TOD trend?

•  Mobility Redefined •  Market Redefined •  American Dream re-

imagined

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Mobility Redefined “ Emerging evidence points to a preference for mixed use, compact, amenity-rich, transit-accessible neighborhoods or walkable places.” – Chris Leinberger, Brookings Institution

Car Ownership

1.7 1.7 1.7

1.5

1.11.2

1.1

0.9

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Small Medium Large ExtendedSystem Type

Total Metro AreaTransit Zones

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Americans appear to be driving less.

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•  Millennials and Baby Boomers changing market

•  ULI “Emerging Trends” ranked TOD as a best bet for investors 5 years in a row

•  Emerging evidence linking foreclosures and housing recovery to lower-cost transportation neighborhoods

Housing Market is Redefined

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Evanston, IL:METRA 3 miles

Portland:Streetcar 6 miles

Hudson-BergenLRT Line 15

miles

Minneapolis:Hiawatha 12

miles

Arlington:Rosslyn-Ballston

METROrail 3miles

Chicago: UPNWCommuter Line

63 miles

Number of new Housing Units Amount of Development- Office\Commercial (sq ft) x 1,000

Development Response to Transit

Source: Center for Transit Oriented Development

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Today there is more than one version of the American Dream

Source: William H. Frey, 2012

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Demand for Walkable Urbanism or TOD will Represent At Least 1/3 of

the US Housing Market by 2030

What this means for Twin Cities Region •  Future transit expansion •  Setting the table for TOD •  Economic Growth +

Equitable Opportunity

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Transit Expansion

The Twin Cities is not alone in Plans for More Regional Transit

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Significant Competition for Limited Federal Funding

Setting the Table for TOD � Capturing TOD’s

potential value to fund transit, place making, and address equity.

� A realistic assumption?

� Tools required?

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Challenges and Timing for Aligning Transit + Development

�  Route Alignment and Station Location

�  Station Area Planning

�  Land Assemblage (public/private)

�  Infrastructure: transit, water, housing

�  Equitable Development mix of hsg + jobs

“We were behind the curve with Hiawatha, we’re with the curve on Central, and we want to be ahead of the curve with Southwest LRT.” ~ Commissioner McLoughlin

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Start with Opportunities and Work Toward Implementation

Source: Center for Transit Oriented Development

TOD “Silverware”

� Station Area Planning � Zoning and Building Codes/Overlays/Form

Based Codes � Density bonuses and time incentives � TIF/Special Assessment Districts/District

Financing � Affordable housing trust funds/set-asides � Parking strategies/Car + Bike Sharing

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�  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.

Economic Growth + Job Potential

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Arlington Heights, IL TOD

�  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.

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Arlington’s  Orange  Line  •  81%  increase  in  land  value  around  

sta7on  since  1995    

•  38%  of  residents  take  transit  to  work,  73%  walk  to  sta7ons  

•  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  jurisdic7on  in  Northern  Virginia  

•  Rail  investment  can  be  used  as  a    catalyst  for  development  

Then and Now

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.

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It takes a bit of magic, but mostly partnership, planning and perseverance!

Photo Credit: The Onion

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Partnerships Emerging

Higher education strategy

DEED / MnSCU Workforce alignment

Promise Neighborhoods, Race to the Top

Early childhood to early career collective (Strive)

Transit ROI study

Sustainable Communities

Corridors of Opportunity

Strategic growth Talent Transportation/

land use

EB – 5 initiative

Regional Cluster Initiative

Entre- preneurship/ innovation

Housing Initiative Reality Check 2.0

Reinvesting the Region Action Plan

Slide courtesy of Corridors of Opportunity, MK Bailey

Currently the Region has MANY Planning Efforts underway � Thrive 2040 � Corridors of

Opportunity � HUD Sustainable

Communities Regional Planning

� Reality Check � TOD regional

framework

Involvement and Alignment

A plan without action is a DREAM. Action without a plan is a NIGHTMARE.

� To realize the plans and vision emerging from the region will require market reality and strong focus on the economics: jobs, value capture, innovative finance.

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