This document discusses transit oriented development (TOD) and the opportunities it provides for communities. TOD is compact, mixed-use development located within walking distance of transit stations. It improves quality of life by promoting walkability and access to transit. TOD also increases property values and fosters vibrant, mixed-use neighborhoods. Simply locating development near transit is not enough - true TOD requires transit systems designed to support development through convenient access. The document outlines challenges to aligning transit expansion and development but argues that capitalizing on TOD can drive economic growth and equitable opportunities for communities.

1. 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.

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 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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3. Simply locating development
adjacent to transit is not enough
An example of transit adjacent development, far
too common in many Twin Cities communities.
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4. What is 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 Atlanta and revitalizing downtown Tampa and Tucson.
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5. What is Equitable Development?
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.
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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7. What is driving
the TOD trend?
• Mobility Redefined
• Market Redefined
• American Dream re-
imagined
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8. Mobility Redefined
“ Emerging evidence
points to a preference
for mixed use,
compact, amenity-
Car Ownership
rich, transit-accessible
2.0
neighborhoods or
1.8 1.7 1.7 1.7 walkable places.”
– Chris Leinberger,
1.6 1.5
1.4
Brookings Institution
1.2
1.1
1.2 1.1
Total Metro Area
1.0 0.9
Transit Zones
0.8
0.6
0.4
0.2
0.0
Small Medium Large Extended
System Type
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9. Americans
appear to be
driving less.
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10. 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

11. Development Response to Transit
20,000
18,000
16,000
14,000
12,000
10,000
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
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12. Today there is more than one
version of the American Dream
Source: William H. Frey, 2012
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13. Demand for Walkable Urbanism or
TOD will Represent At Least 1/3 of
the US Housing Market by 2030

14. What this
means for Twin
Cities Region
• Future transit expansion
• Setting the table for TOD
• Economic Growth +
Equitable Opportunity
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15. Transit Expansion

20. The Twin Cities is not alone in Plans for
More Regional Transit
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21. Significant
Competition for Limited Federal Funding

22. 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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23. Challenges and Timing for
Aligning Transit + Development
› Route Alignment and
“We were behind the
Station Location
curve with Hiawatha, › Station Area
we’re with the curve Planning
on Central, and we › Land Assemblage
want to be ahead of (public/private)
› Infrastructure: transit,
the curve with water, housing
Southwest LRT.” › Equitable
~ Commissioner McLoughlin Development mix of
hsg + jobs
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24. Start with Opportunities and Work
Toward Implementation
Source: Center for Transit Oriented Development

25. 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
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26. 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 region's six rail
units; 23% premiums for systems, with double that
TOD commercial. number planned.
© MZ Strategies, LLC

27. 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

28. 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

29. 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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30. It takes a bit of magic, but
mostly partnership, planning
and perseverance!
Photo Credit: The Onion
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31. 31
Partnerships Emerging
Entre-
Transportation/ Strategic
preneurship/ Talent
innovation land use growth
Corridors of Opportunity
Higher education strategy
Sustainable Communities
Transit ROI study
DEED / MnSCU Workforce
alignment
Regional
Cluster
Initiative
EB – 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

32. Currently the Region has MANY
Planning Efforts underway
› Thrive 2040
› Corridors of
Opportunity
› HUD Sustainable
Communities
Regional Planning
› Reality Check
› TOD regional
framework

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