Hot Topics: Transit Oriented Development


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Presentation by Jesse Souki, Director, Office of Planning, April 17, 2013

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  • Transit-Oriented and Joint Development: Case Studies and Legal Issues, Transit Cooperative Research Program, Aug. 2011, at ULI Presentation:Construction Costs are the MAJOR inhibitor to new development and especially TOD in Honolulu.As a result, most new development that does occur in Honolulu is focused on high value opportunities such as Big box or strip retail, High end condo development, and Single family homes.Opportunities for significant new development, community investment, economic growth, and increase in the tax base lie in the government’s ability to address the biggest cost -- infrastructure.Development cash flow analysis has shown that low to mid rise mixed use development with middle income housing can be a viable investment when infrastructure considerations are removed.Absent public investment and incentives – development projects will continue to ignore the return on investment opportunity that exists with TOD.Something “material” must change.
  • Transit-oriented development (TOD) is compact, mixed-use development near transit facilities and high-quality walking environments. The typical TOD leverages transit infrastructure to promote economic development and smart growth, and to cater to shifting market demands and lifestyle preferences. TOD is about creating sustainable communities where people of all ages and incomes have transportation and housing choices, increasing location efficiency where people can walk, bike and take transit.  In addition, TOD boosts transit ridership and reduce automobile congestion, providing value for both the public and private sectors, while creating a sense of community and place.
  • Location efficiencyDensity, transit accessibility, and pedestrian friendlinessRich mix of residential and commercial choicesPeople’s ability to not only have transport alternatives but also have choice in housing, retail, and employmentValue captureHousehold and community cost savings associated with transit useAccording to the American Public Transportation Association, Honolulu residents who ride public transportation instead of driving can save, on average, $11,388 annually.Place makingAbility for TOD to create attractive, pedestrian friendly neighborhoods with high-quality civic spaces The transit station should also be a place, a destination with work, live, and play opportunities within walkable distance from the transit station. Resolution of the tension between node and placeConverting railway termini and their surrounding areas into urban placesThe transit station should be more than a transportation mode, where riders convert to another mode of transportation before reaching their final destination.
  • Transit Cooperative Research Program
  • American Public Transportation Association (APTA), Honolulu public transportation users save $11,346 annually, or $946 per month
  • SeaTac/Airport StationUniversity Street StationPioneer Square StationInternational District/Chinatown Station
  • The Project is a 20-mile grade-separated fixed guideway rail system that begins at the University of Hawai'i - West O'ahu near the future Kroc Center and proceeds east via Farrington Highway and Kamehameha Highway adjacent to Pearl Harbor to Aolele Street serving the Airport, to Dillingham Boulevard, to Nimitz Highway, to Halekauwila Street, and ending at Ala Moana Center. The entire system will operate in an exclusive right-of-way and will be grade-separated except in a location near Leeward Community College. The Project will include 21 transit stations, a vehicle maintenance storage facility near Leeward Community College, park-and-ride lots at some stations, traction power substations, and the acquisition of rail vehicles and maintenance equipment.
  • Figure 3: Framework Plan Land Use illustrates proposed land use designations. The Downtown and Chinatown stations maintain mixed use designations, but the Iwilei station is transformed from its current industrial mixed use designation (which only permits incidental residential uses) to a new “Urban Mixed Use” designation which permits a wider range of uses, such as medium- and high-density residential, retail and office.Potential development values reflect a realistic level of development that can be expected from transit-oriented development over the next 20 to 30 years, based on an assessment of market data and real estate conditions. As part of this planning process, the consultants estimated that the market in the Downtown TOD Plan area could support +/- 6,000 new dwelling units, +/- 485,000 square feet of retail, and +/- 910,000 square feet of office.Downtown Mixed Use. Mixed-use development in the central business district allowing office, government, retail, and multi-family residential uses, as well as public/quasi-public facilities and open spaces. Assumptions: Max FAR 7.5, Typical FAR 4.5, Mixed Use Allocations 60% Residential/20% Retail/20% Office/R&D, Public/Open Space 12%
  • The Project is a 20-mile grade-separated fixed guideway rail system that begins at the University of Hawai'i - West Oahu and ends at Ala Moana Center. The Project will include 21 transit stations and park-and-ride lots at some stations.The State is the largest land owner within 1/2 mile of proposed transit stations, with approximately 2000 acres.
  • TOD is a powerful tool that can ultimately deliver many of the benefits envisioned both in Governor Abercrombie’s New Day plan and the state Planning Act. The interagency workshops with SGA included representatives from a range of state agencies, along with representatives of the City and County of Honolulu and the private sector. The meetings focused on identifying ways that state activities can be aligned to support TOD and to identify strategies, tools and resources that will be effective in maximizing benefits to the state and in promoting the broader benefits associated with transit-supportive land use patterns.
  • Hawaii’s historic planning goals – set forth in the Hawaii State Planning Act – reflect a longstanding commitment to the principles of what has come to be known as “Smart Growth.” Transit-Oriented Development is essentially a means of implementing Smart Growth since it incorporates compact development accessible by multiple transportation modes. Meanwhile, Governor Abercrombie’s New Day Plan incorporates a number of policy directions which are supported by Smart Growth and Transit-Oriented Development. “We will build livable communities that encourage walking, bicycling, carpooling, and using mass transit.”“[Mass Transit] Rail can incorporate senior and workforce housing adjacent to rail stations; help to contain urban sprawl into rural communities;incorporate small businesses, healthcare, child care and dependent care centers in transit-oriented development; safely transport students to school; andprovide an efficient and potentially green alternative to our overcrowded roadways.”“[The project should be powered] by clean, local sources [of energy].”
  • According to Hawaii Business Magazine, "[t]he first wave of baby boomers—approximately 80 million Americans who were born between 1946 and 1964—is turning 65 in 2011."  "Hawaii has the fastest growing age 65-plus population in the nation, expected to grow by 81 percent by 2030."The World Health Organization (WHO) consulted with 35 cities from all continents (including, New York and Portland in North America).  Their work culminated in a 2007 report entitled, Global age-friendly cities: a guide. 
  • US DOT relocated to waterfront in Anacostia, attracted lots of housing units
  • Hot Topics: Transit Oriented Development

    1. 1. State of Hawaii Office of PlanningPresentation toAshford &WristonPresentation byDirector Jesse K. Souki, Esq.
    2. 2.  The State Office of Planning TOD Definitions TOD Examples CityTOD Planning StateTOD Planning Resources2
    3. 3. Key Policies that GuideOP•Hawaii StatePlanningAct•State Land Use Law•CoastalZoneManagementAct
    4. 4.  Meet the physical, economic, and socialneeds of Hawaiis people Provide for the wise use of Hawaiis resourcesin a coordinated, efficient, and economicalmanner Conserve natural, environmental,recreational, scenic, historic, and otherlimited and irreplaceable resources which arerequired for future generationsSource: HRS §225M-1.
    5. 5. Hawaii State PlanningAct Guide for the future long-rangedevelopment of the State Goals, objectives, policies, andpriorities for the State Basis for determining priorities andallocating limited resources Coordination of federal, state, andcounty plans, policies, programs,projects, and regulatory activities Planning system to integrate majorfederal, state, and county activitiesHawaii Revised StatutesChapter 226 (1978)
    6. 6. State Land Use Law Purpose “preserve, protect and encouragethe development of the lands in theState for those uses to which theyare best suited for the publicwelfare[.]” See L. 1961, c 187, § 1. Implementation Mechanisms 5-Year Boundary Review District Boundary Amendments ImportantAgricultural LandsDesignation State Special Use PermitsHawaii Revised StatutesChapter 205 (1961)U5%C48%A47%R0%
    7. 7. CoastalZoneManagementAct Purpose “provide for the effectivemanagement, beneficialuse, protection, and development ofthe coastal zone.” See L. 1977, c188, § 1. Implementing Mechanisms Special Management Area Permits FederalConsistency Comprehensive Planning andCoordinationHawaii Revised StatutesChapter 205A (1977)
    8. 8. “TOD/TJD, successful projects do not happenon their own, or just because government hasinvested public money into transit and otherinfrastructure. TOD and joint developmentprojects succeed, mostfundamentally, because there is a market forthose types of development.“8
    9. 9. Government should:(1) provide the framework of policy ground rules andregulations that help guide development in the publicinterest, and(2) provide and maintain basic infrastructure and services.
    10. 10. What isTOD? Mixed-use development Development that is close toand well-served by transit Development that is conduciveto transit ridingTransit-oriented development(TOD) is compact, mixed-usedevelopment near transit facilitiesand high-quality walkingenvironments.The typicalTODleverages transit infrastructure topromote economic developmentand smart growth, and to cater toshifting market demands andlifestyle preferences. TOD isabout creating sustainablecommunities where people of allages and incomes havetransportation and housingchoices, increasing locationefficiency where people canwalk, bike and take transit. Inaddition,TOD boosts transitridership and reduce automobilecongestion, providing value forboth the public and privatesectors, while creating a sense ofcommunity and place.10
    11. 11.  Location efficiency Rich mix of residential and commercialchoices Value capture Place making Resolution of the tension between node andplace11
    12. 12.  Comprehensive plans that utilize a combination ofzoning, public improvements, development financingpackages, and effective marketing programs Planning directly responds to the needs of thesurrounding community Pedestrian-Friendly Infrastructure Parking Management and Shared Parking Zoning that includes overlay districts, usecontrols, building standards and requirements forpedestrian amenities Expedited Development Review Successful Demonstration Projects Public Assistance12
    13. 13. Economicdevelopment• Increasesproductivity andsaves time• Encouragesconcentration ofbusiness activity• Increaseseconomiccompetitivenessand promotes agreen economy• Increasesproperty valuesanddevelopmentpotentialFiscal benefits• Savings on costto build andmaintainhighways androads• Generatesstronger taxrevenuesHouseholdbenefits• Savings fromreduced cost ofdriving• Improved accessto jobs, schoolsand otherdestinations• Promotes healthEnvironmentalbenefits• Reducesgreenhouse gasemissions• Preservesagricultural landand assists withfood security• Promotesenergyindependence13
    14. 14. LOCATION MATTERS, BECAUSE TRANSPORTATIONIS A SIGNIFICANT HOUSEHOLD EXPENSE14Honolulu public transportation users save$11,346 annually, or $946 per month(American PublicTransportation Association, 2013)
    15. 15.  Increased access to workersand customers Work force retention andattraction Greater worker productivityDowntown Honolulu(City and County of Honolulu, Dyett & Bhatia)15
    16. 16.  Increased propertyvalues Enhanceddevelopment potential Studies show:o Properties located neartransit experience a pricepremium of 2 to 20%o Homes in “walkable”neighborhoods have highervalues. A one pointimprovement in “WalkScore” = $700 - $3,000increase in home values16
    17. 17.  Increased local spending and tax revenues Cost savings for roads, highways and otherinfrastructure Savings from reduced health costs Enhanced economic competitiveness Assists in addressing affordable housingneeds and food security17
    18. 18. WashingtonMetropolitanAreaTransitAuthority (WMATA)This is a map of theWMATA railsystem.Among other features, WMATAlinks the airport andAMTRAKinterstate rail to localcommuting infrastructure.Each station is adestination, with differingamounts ofresidential, business, commercial, and recreationalopportunities within walkingdistance from the stations andmajor universities.Expansion will include DullesInternationalAirport and otherresidential/commercialcommunities primarilyaccessible by automobile.18
    19. 19. Hong Kong MetroThis is a map of the Hong Kongrail system.Among other features, it linksthe airport and ferries to localcommuting infrastructure.Each station is adestination, with differingamounts ofresidential, business, commercial, and recreationalopportunities within walkingdistance from the stations.Tourists who visit Hong Kongare seldom required to use ataxi or bus to visit key touristsites, shopping, and fooddestinations.19
    20. 20. SoundTransit20
    21. 21. 21The Project is a 20-mile grade-separated fixed guideway rail system that begins atthe University of Hawaii -West Oahu and ends at Ala Moana Center. It willoperate in an exclusive right-of-way and will be grade-separated except in alocation near LeewardCommunity College.The Project will include 21 transitstations and park-and-ride lots at some stations.
    22. 22.  City Council approves zone changes and newspecial districts City’s Department of Planning and Permitting isthe land use permitting agency Current zoning tends to not maximize fulldevelopment potential of the station areas Development standards tend to favor auto useand auto-oriented development e.g., strip malls, surface parking lots at the expense ofpedestrians, bicyclists and transit riders22
    23. 23.  NeighborhoodTOD Plan May include one or more stations TOD development regulations foster andencourageTOD and redevelopment of eachTOD zone After January 2012, Council may establishTOD zones andTOD developmentregulations withoutTOD Plans23
    24. 24.  Minimum Considerations Overall economic revitalization, neighborhood character, andunique community historic architecture Architectural and community design principles, open spacerequirements, parking standards, and other modifications toexisting zoning requirements Affordable housing opportunities Gentrification issues Financing opportunities that should be pursued Population, economic, market and infrastructure analysis Community Involvement Consistent with the applicable regional developmentplan, special area plan, or community master plan Approved by Council resolution24
    25. 25.  Mix of land uses and affordable housing Density and building height limits Elimination or reduction of the number of required off-streetparking spaces Design provisions that encourage use of transit and other non-auto forms of transport Building/parking/bicycle parking guidelines Identify/protect/enhance important historic, scenic, and culturallandmarks Human-scale architectural elements Landscaping requirements that enhance the pedestrianexperience, support station identity, and complement adjacentstructures Incentives and accompanying procedures to encourageTOD25
    26. 26.  Council approves NeighborhoodTOD Plan DPP submitsTOD Zones and DevelopmentRegs ordinance to planning commission PlanningCommission reviews and makesrecommendations to Council Council adoptsTOD special district ordinance Development plans may need to be amended26
    27. 27.  Aiea-Pearl City NeighborhoodTOD Plan LeewardCommunity College, PearlHighlands, Pearlridge Downtown NeighborhoodTOD Plan Iwilei, Chinatown, Downtown East Kapolei NeighborhoodTOD Plan East Kapolei, UHWest Oahu, Hoopili Kalihi NeighborhoodTOD Plan Middle Street, Kalihi, Kapalama Waipahu NeighborhoodTOD Plan West Loch,Waipahu27
    28. 28. Land Use Existing andProposed forDowntown28
    29. 29. 29
    30. 30.  Smart GrowthAmerica Grant funding awarded by the Rockefeller Foundation TOD from the State’s Perspective Land owner/ developer Service provider Employer Not duplicate ongoing efforts by the City &County of Honolulu in the area ofTOD planning Recommendation to the Governor30
    31. 31. 31TOD Elements Smart Growth Principles New Day Plan ComponentsMix land uses to provide easyaccess to employment, housing,and amenities.Mix land uses.Meeting the Needs of Older Adults.Ensuring Access to Affordable Housing and HumanServices.Concentrate population andemployment density near transit.Take advantage of compact buildingdesign.Promoting Energy Independence.Meeting the Needs of Older Adults.Incorporate a range of housing andemployment types based on localcharacter and the transit stationareas role within the transitnetwork market area.Create a range of housingopportunities and choices.Ensuring Access to Affordable Housing and HumanServices.Create a well-connected, walkableneighborhood.Create walkable neighborhoods.Promoting Energy Independence.Ensuring the Health of Hawaiis People.Meeting the Needs of Older Adults.Ensuring Access to Affordable Housing and HumanServices.Create a pleasant pedestrianenvironment with easy access toamenities and daily needs.Foster distinctive, attractivecommunities with a strong sense ofplace.Promoting Energy Independence.Ensuring the Health of Hawaiis People.Meeting the Needs of Older Adults.Ensuring Access to Affordable Housing and HumanServices.
    32. 32. 32TOD Elements Smart Growth Principles New Day Plan ComponentsConcentrate development neartransit to avoid growth of low-density neighborhoods.Preserve open space, farmland,natural beauty and criticalenvironmental areas.Protecting the Environment and Promoting Local FoodProduction.Concentrate development nearexisting transit-servedcommunities.Strengthen and direct developmenttowards existing communalities.Improving the Economy and Advancing Education.Promoting Energy Independence.Protecting the Environment and Promoting Local FoodProduction.Meeting the Needs of Older Adults.Ensuring Access to Affordable Housing and HumanServices.Provide robust regional transitaccess and a well-connected localstreet network comfortable forpedestrians and cyclists.Provide a variety of transportationchoices.Promoting Energy Independence.Ensuring the Health of Hawaiis People.Meeting the Needs of Older Adults.Ensuring Access to Affordable Housing and HumanServices.Plan for and incentivizedevelopment near transit stations.Make development decisionspredictable, fair and cost effective.Improving the Economy and Advancing Education.Engage communities to ensureappropriate character and mix ofuses in transit station areas.Encourage community andstakeholder collaboration indevelopment decisions.Restoring Public Confidence in Government
    33. 33.  A significant proportion of state assets are inpublic lands LeveragingTOD may mean reassessing thebest use of some properties to help the stateprovide public services and amenities Improved transit access can reduce the needfor on-site parking; this can free up space forother activities or additional facilities33
    34. 34.  Transit can enhance access to governmentservices, education and health care Access to these services are key for creatinghealthy, mixed-use neighborhoods Encouraging transit use can help the state meet othergoals and objectives PublicTransportation Saves 37 Million MetricTons ofCarbonAnnually and 4.2 Billion Gallons of Gasoline(APTA, 2009) Riding PublicTransit Saves Honolulu IndividualsApproximately $11,346 annually (APTA, 2013) Affordable Housing Opportunities Addressing the Needs of Our Aging Baby Boomers34
    35. 35.  The state is a major employer that canbenefit from improved access to workers andincreased productivity Lowers transportation costs for state workers The location of major employers can alsoserve as a catalyst forTOD35
    36. 36.  High development costs High land costs High construction costs A lack infrastructure In urban neighborhoods In areas planned for growth A lack of local examples of “walkable” mixed-use neighborhoods36
    37. 37.  A project site or sites must be identified Procurement requirements must be met A thorough environmental review must becompleted Community outreach and participationprocess must planned and implemented37
    38. 38.  Leveraging State Agency Involvement inTransit-Oriented Development to Strengthen Hawaii’s Economy, FinalReport, State Office of Planning, Dec. 12, 2012, at Lesa Rair, Rising Gas Prices MeanTransit Riders Save MoneyWhile Car Drivers EmptyTheirWallets, American PublicTransportationAssociation, Feb. 23, 2012, at Transit-Oriented and Joint Development: Case Studies and Legal Issues,Transit Cooperative ResearchProgram, Aug. 2011, at Policy, Planning, & Major Projects Station Area Planning -Transit-Oriented Development Case Studies, City ofSeattle, at Review of Current City and State Ordinances Honolulu High-CapacityTransit Corridor Project, City & County ofHonolulu,Aug. 2011, at Request for Proposals - 690 PohukainaTransit-Oriented Development Project, Haw. Community Devel.Authority, at Record of Decision on the Honolulu High CapacityTransit Corridor Project in Metropolitan Honolulu, Hawaii by theFederalTransit Administration, FTA, Jan. 18, 2011, at Revised Ordinances of Honolulu 1990 § 21-9.100, available at Downtown & Kalihi DraftTOD Framework Plans, City & County of Honolulu, Feb. 2012, at Jesse K. Souki, TOD,TAD,TAJ:Transit Development Alphabet Soup, Haw. Land Use Law & Policy, Oct. 29, 2011 at Jesse K. Souki, Transit Oriented Development and Affordable Housing, Haw. Land Use Law & Policy, Jan. 7, 2009 at Capturing theValue ofTransit, Center forTransit Oriented Development (2008). HowWalkability Raises HomeValues in U.S. Cities, CEOs for Cities (2009). 38
    39. 39. 39Jesse K. Souki, DirectorOffice of PlanningState of Hawaii(808) 587-2846E-Mail: jesse.k.souki@dbedt.hawaii.govWeb Site: http://planning.hawaii.govFacebook: