Policy Forum Series: Zimmerman - Transit Oriented Development-Addressing the Challenges and Capitalizing on Opportunities

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  • 1. Transit Oriented Development:Addressing the Challenges andCapitalizing on Opportunities Mariia Zimmerman, Principal MZ Strategies, LLC Mariia@MZStrategies.com © all rights reserved for MZ Strategies, LLC unless otherwise noted in this presentation.
  • 2. What is Transit Oriented Development?TOD is defined as compact development withineasy walking distance to transit stations thathosts 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 © MZ Strategies, LLC
  • 3. Simply locating developmentadjacent to transit is not enough An example of transit adjacent development, far too common in many Twin Cities communities. © MZ Strategies, LLC
  • 4. What is Development Oriented Transit?Transit designed to support development through convenientlocation, 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. © MZ Strategies, LLC
  • 5. What is Equitable Development?Development that creates healthy vibrant communitiesof opportunity where low‐income people, people ofcolor and people with disabilities participate in andbenefit from systems, decisions and activities thatshape their neighborhoods. 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 © MZ Strategies, LLC
  • 6. What is drivingthe TOD trend?•  Mobility Redefined•  Market Redefined•  American Dream re- imagined © MZ Strategies, LLC
  • 7. Mobility Redefined “ Emerging evidence points to a preference for mixed use, compact, amenity- Car Ownership rich, transit-accessible2.0 neighborhoods or1.8 1.7 1.7 1.7 walkable places.” – Chris Leinberger,1.6 1.51.4 Brookings Institution 1.2 1.11.2 1.1 Total Metro Area1.0 0.9 Transit Zones0. Small Medium Large Extended System Type © MZ Strategies, LLC
  • 8. Americansappear to bedriving less. © MZ Strategies, LLC
  • 9. Housing Market is Redefined •  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
  • 10. Development Response to Transit20,00018,00016,00014,00012,00010,000 8,000 6,000 4,000 2,000 0 Evanston, IL: Portland: Hudson-Bergen Minneapolis: Arlington: Chicago: UPNW METRA 3 miles Streetcar 6 miles LRT Line 15 Hiawatha 12 Rosslyn-Ballston Commuter Line miles miles METROrail 3 63 miles miles Number of new Housing Units Amount of Development- OfficeCommercial (sq ft) x 1,000 Source: Center for Transit Oriented Development © MZ Strategies, LLC
  • 11. Today there is more than oneversion of the American Dream Source: William H. Frey, 2012 © MZ Strategies, LLC
  • 12. Demand for Walkable Urbanism orTOD will Represent At Least 1/3 of the US Housing Market by 2030
  • 13. What thismeans for TwinCities Region•  Future transit expansion•  Setting the table for TOD•  Economic Growth + Equitable Opportunity © MZ Strategies, LLC
  • 14. Transit Expansion
  • 15. The Twin Cities is not alone in Plans forMore Regional Transit © MZ Strategies, LLC
  • 16. SignificantCompetition for Limited Federal Funding
  • 17. Setting the Table for TOD›  Capturing TOD’s potential value to fund transit, place making, and address equity.›  A realistic assumption?›  Tools required? © MZ Strategies, LLC
  • 18. Challenges and Timing forAligning Transit + Development ›  Route Alignment and“We were behind the Station Locationcurve with Hiawatha, ›  Station Areawe’re with the curve Planningon Central, and we ›  Land Assemblagewant to be ahead of (public/private) ›  Infrastructure: transit,the curve with water, housingSouthwest LRT.” ›  Equitable~ Commissioner McLoughlin Development mix of hsg + jobs © MZ Strategies, LLC
  • 19. Start with Opportunities and WorkToward Implementation Source: Center for Transit Oriented Development
  • 20. TOD “Silverware”›  StationArea 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 © MZ Strategies, LLC
  • 21. Economic Growth + Job Potential›  Dallas, TX: Light rail has ›  Evanston, IL: Between 1990 generated $1billion in and 2005, the suburb added development, $3.7 more than 2,472 housing units billion in economic in its commuter rail transit zones and its Equalized activity, and 32,000 jobs. Assessed Value increased by 40% between 2000-2004›  Santa Clara, CA: Along commuter rail line, ›  SF Bay Area, CA: BART Premiums for TOD estimates that 50 mixed-use residential 45% higher developments have been than similar non-TOD built or are under construction along the regions six rail units; 23% premiums for systems, with double that TOD commercial. number planned. © MZ Strategies, LLC
  • 22. 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. © MZ Strategies, LLC
  • 23. 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   Then and Now•  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  
  • 24. 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. © MZ Strategies, LLC
  • 25. It takes a bit of magic, butmostly partnership, planningand perseverance! Photo Credit: The Onion © MZ Strategies, LLC
  • 26. 31 Partnerships Emerging Entre- Transportation/ Strategicpreneurship/ Talent innovation land use growth Corridors of Opportunity Higher education strategy Sustainable Communities Transit ROI study DEED / MnSCU Workforce alignment Regional Cluster InitiativeEB – 5 initiative Promise Neighborhoods, Housing Initiative Race to the Top Reality Check 2.0 Reinvesting the Region Action Plan Early childhood to early career collective (Strive) Slide courtesy of Corridors of Opportunity, MK Bailey
  • 27. Currently the Region has MANYPlanning Efforts underway›  Thrive 2040›  Corridors of Opportunity›  HUD Sustainable Communities Regional Planning›  Reality Check›  TOD regional framework
  • 28. A plan without actionis a DREAM.Action without aplan is a NIGHTMARE. Involvement and Alignment ›  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. © MZ Strategies, LLC