Transportation Toolkit

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    Transportation and Real Estate: Making the Connections

    www.realtor.org/transtools

    FOREWORD

    INTRODUCTION

    Te Importance o ransportation to Real Estate and Com-munities

    CURRENT TOPICS IN TRANSPORTATION

    Survey: Te Public Wants More OptionsFast Growing Light Rail Adds to ransportation Choices

    Bus Rapid ransit Oers a Fast Low-Cost AlternativeTe Federal ransportation Program: NARs Positionransportation Costs Can Wipe Out Housing SavingsDevelopers Build Walkable Neighborhoods AroundransitFederal Stimulus Will Boost Inter-city Rail ProjectsTe Federal Government Increases Commitment toBetter Roads and ransitComplete Streets or All ravelersHigh-Occupancy oll (HO) LanesManaging ransportation DemandPublic/Private PartnershipsPublic ransportation Boosts Property Values

    Good ransportation Policy Accounts or InducedDemand

    GLOSSARY OF TRANSPORTATION TERMS

    AASHOAlternative Fuel VehicleAPABudgetary FirewallBus Rapid ransitCommuter RailComplete StreetsCongestion Pricing/Value Pricing

    Fair LanesFHWAFAHeadway

    High-speed RailHighway rust FundHot LanesInduced ravel DemandIntelligent ransportation SystemsInter-city RailIntermodalLight RailMetropolitan Planning Organization (MPO)New Starts

    ParatransitPMReverse CommuteSmall Startsransportation Demand ManagementVM

    FREQUENTLY ASKED QUESTIONS

    What can be done about congestion besides buildingmore roads?How are roads paid or?How is transit paid or?

    How are transportation and land use issues related?What eect do transportation improvements have onreal estate?How does my state receive ederal transportation unds?Who plans the transportation system?Are there any fnancial incentives to commute by transitor bicycle?Why are people talking about raising gas taxes?What is a vehicle mileage tax?How much more will I pay i a mileage tax is levied?I people can pay to use HOV lanes, wont this justbeneft the rich?Have travel trends changed recently?

    NAR POLICY ON TRANSPORTATION

    Table of Contents

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    Alot has changed since the rst Transportation Toolkitwaspublished in 2004. Since we at the National Association

    o REALORS believe that transportation is an issue o vitalimportance to real estate and communities, we thought it wastime to update our members on the new challenges, issues,and concepts in the eld.

    For one thing, when uel prices spiked in the summer o 2008,people started driving less. For the rst time since the SecondWorld War, the number o miles that Americans drove actu-

    ally declined rom the previous year. Fuel prices moderatedin the all o 2008, but the country slid into a sharp economicrecession and driving has still not increased.

    Meanwhile transit use is skyrocketingin 2008 it reached itshighest level in 52 years, according to the American Publicransportation Association. In the ace o a altering econo-my, rising unemployment, and alling gas prices, the numbero transit trips rose 4 percent between 2007 and 2008, to atotal o 10.7 billion. Unortunately, at just the time that tran-sit demand is surging, the recession is killing transit agenciesrevenue streams, leaving them with massive budget problemsand orcing them to cut back their services.

    Another major set o changes concerns the policies o theederal government. Te ederal government has adoptedpolicies to improve uel economy and reduce dependence onoreign oil (e.g., cash or clunkers). Perversely, these poli-cies may have the eect o reducing the revenues available ortransportation. Te chie source o revenue or transportationinrastructure is the tax on gasoline we pay at the pump. Tattax has been bringing in less and less money as vehicle uelefciency has increased, the amount o driving has plateaued,and use o alternative-uel vehicles and hybrids has increased.oday the Highway rust Fund, which pays or ederal trans-portation programs, is essentially bankrupt. Unless and until

    the political will is ound to either increase the gas tax, ndnew sources o unds, or both, it will continue to require largeinusions o general und revenues.

    In addition, ederal transportation programs must now searchor a new political rationale. Te Highway rust Fund was es-

    tablished 55 years ago to build the Interstate Highway System.As the interstate system is now complete, the ederal role andmission in transportation needs to be clearly dened in orderto justiy continued expenditure o tax dollars. axpayers and

    transportation users will expect greater accountability andtangible value or each dollar spent.

    Finally, even as recently as 2004, the issues o climate changeand greenhouse gases were only small parts o the transporta-tion policy discussion. oday, or a host o reasons, they area central part o the debate over the uture o transportationinrastructure. Te transportation sector, which accountsor approximately a third o greenhouse gas emissions in theUnited States, will be expected to do its part to achieve reduc-tion targets.

    Tis Transportation Toolkitcontains a series o concise paperson these topics and more. We will add, update, or removepapers rom time to time to keep this resource timely. In ad-dition, we have included a glossary o transportation terms,FAQs, and NARs ofcial statement o policy. We hope youwill nd it not merely inormative but useul or advocacy inyour own community.

    Foreword: An Updated EditionFor Todays Challenges

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    S avvy homebuyers even look to the uture, keeping in mindthat planned transportation changes can aect a proper-tys value over time. Will the rail transit station thats expectedto open down the street add value to my home? How aboutthe cross-county connector that local ocials have been talk-ing about building or the last seven years?

    But theres yet another level on which transportation is impor-tant to real estate: ransportation provides access to employ-ment, and employment is what allows people to buy homes.A sound transportation system creates the oundation or a

    communitys long-term economic well-being.

    The Larger Stakes

    Robert Fishman, a University o Michigan architecture pro-essor, once asked 150 leading urban specialists to rank thetop ten inuences on the American metropolis during thepast 50 years. What topped their list? Te interstate highwaysystem and the dominance o the automobile. Looking intotheir crystal balls, these urban experts predicted that trans-portation will play an equally large role over the next 50 years.O course, whether the eect will be good or bad is still un-known. Clearly, the outcome will depend on our ability to

    make wise policy choices.

    REALORS have a major stake in these issues. Te biggestcomplaint rom homeowners and homebuyers today is traccongestion, a malady ound wherever sprawl and rapid popu-lation growth combine with an unbalanced transportationsystem.

    Tese three elements can start a vicious cycle, producing moreand more congestion over longer stretches o roada situa-tion that becomes even more costly to deal with over time.Te fnal result can be an exodus o investment rom localneighborhoods and a decline in real estate values.

    But shrinking real estate value isnt the only reason REAL-ORS have a stake in these issues. In order to get a handleon growth, some state and local governments have been pur-suing concurrency regulationsbasically prohibiting anydevelopment unless the inrastructure (including transporta-

    tion inrastructure) is already in place. At the ederal level, theClean Air Act (CAA) can jeopardize a communitys develop-

    The Importance of Transportation toReal Estate and Communities

    Why is transportation important to real estate and communities?

    As any REALTOR can tell you, transportation fgures prominently in most housing decisions. Buying

    a house isnt just about a structure and a lot, its also about becoming connected to a place. In the

    back o every potential homebuyers mind, theres a series o calculations always going on: How long

    will my commute be? How ar am I rom where Im going to shop? How congested are the roads here?

    How close are the nearest hiking trails? How will my kids get to school?

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    ment plans i vehicle emissions associated with its long-rangetransportation plan exceed its pollution budget. And thisisnt an idle threat. In Atlanta, ederal highway unds were cuto or a period in the late 1990s due to a conormity lapsewith CAA requirements.

    But transportation doesnt have to be only a negative con-sideration. Incorporated correctly, it can be a tool or bettercommunities and a higher quality o lie. Tere are transpor-tation projects, or example, that improve air quality, bringaordable housing closer to job opportunities, and expandaccess to suburban employment centers. Want to create more

    vibrant urban centers or counteract a loss o open space?ransportation projects can help with those things as well.ransportation can even be an aid to home ownership i itreduces transportation costs and rees up more income orputting together a down payment and sustaining a monthlymortgage payment.

    Te bottom line: transportation can be a constructive orce inbuilding quality communities. It all comes down to choices.And thats where REALORS ft in. By being intimately in-

    volved in their communities, REALORS can put orwardpractical ideas about how transportation can be improved ina way that balances all o the actors critical or a healthy com-munity, including housing, economic development, and jobs.However, as in any discipline, to be an eective advocate onehas to be conversant in the issues and knowledgeable about

    the state-o-the-art solutions.

    Tats what this oolkit is designed to doto give REAL-ORS a grounding in the current challenges to mobility,especially congestion, and a working amiliarity with the lat-est transportation concepts such as congestion pricing, HOlanes, bus rapid transit, transit-oriented development, walk-able neighborhoods, and more.

    Real estate o all types ourishes best in livable communi-ties with ecient systems o transportation. NARs goal is tomake sure REALORS have all the tools they need to ostera positive nexus between housing and transportationonethat truly promotes quality in the community and in the liveso residents.

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    Growth and Transportation Nationwide

    Americas population is expected to increase 100 million by2050. o accommodate this growth, Americans avor re-storing existing roads and bridges and expanding transporta-tion options, improving intercity rail and transit, and makingit easier to walk and bike. Tree out o our avor improvingrail systems to handle uture growth rather than building newhighways and reeways.

    Hal o U.S. citizens believe that maintaining and repairing

    roads, highways, reeways and bridges should be the top pri-ority as the ederal government makes its plans or transpor-tation unding in 2009. Just under a third (31 percent) believe

    the top priority should be expanding and improving bus, rail,and other public transportation, and only 16 percent believe itshould be expanding roads, highways, reeways and bridges.

    What citizens want or need and what they get are two dierentstories. When asked which one or two types o transportationare not getting enough attention rom the ederal government,more than hal (56 percent) responded trains or light rail sys-tems and nearly hal (48 percent) responded roads and buses.

    Transportation Policy at the Local LevelAlmost two-thirds o Americans believe their communitiesdo a good or excellent job providing parks and protecting

    Survey Reveals That the Public WantsMore Options for Mass Transportation

    The 2009 Growth and Transportation Survey, sponsored by the National Association o REALTORS

    and Transportation America, asked Americans how their communities are handling development,

    how development aects them, and how the transportation needs o communities can best be met.

    Respondents avored increased investment in bus and rail systems and policies to encourage denser

    development over building new roads as priorities or ederal and local governments acing challenges

    o economic stagnation, population growth, and trafc congestion.

    0 10 20 30 40 50

    50%

    16%

    31%

    3%

    Expanding and improving roads,highways, freeways and bridges

    Maintaining and repairing roads,highways, freeways and bridges

    Expanding and improving bus, rail,and other public transportation

    Not sure

    As the ederal government makes its plans or transportation

    unding in 2009, which one o the ollowing should be the top

    priority?

    Build and improve rail systems,such as commuter rail, light rail

    and subways

    Build new highways and freeways

    Not sure

    0 10 20 30 40 50 60 70 80

    75%

    20%

    5%

    Given that the U.S. population will increase by one hundred

    million people by 2050, which o the ollowing transportation

    approaches do you preer to accommodate this growth?

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    open space (65 percent), and more than hal believe theircommunities do a good or excellent job providing good pub-lic schools (58 percent). When it comes to transportation,however, a majority o those surveyed think their communi-ties do a poor or only air job.

    For instance, 56 percent think their community is doing a airor poor job managing growth and new development. Only7 percent believe their community is doing an excellent jobproviding practical and convenient public transportation.

    When it comes to trac congestion in their communities,two-thirds (67 percent) want to address the problem with im-proved public transportation, including trains and buses, andmore options or walking and biking, while only a quarter (27percent) want more roads built and existing roads expanded.When asked about the best long-term solution or reducingtrac, almost hal (47 percent) preerred improving publictransportation. A quarter chose building communities thatencourage people not to drive as much, and 20 percent pre-erred building new roads.

    More people agreed than disagreed that new home construc-tion should be limited in outlying areas and encouraged in al-ready developed areas, and that businesses and homes shouldbe built closer together so that stores and restaurants are withinwalking distance and do not require the use o an automobile.

    The Economic Stimulus Package andLong-Term Economic Growth Priorities

    Overwhelmingly, Americans agreed that transportation- andinrastructure-related projects should be included in theeconomic stimulus package through job creation initiatives.Most wanted highway and bridge repair projects (93 percent),alternative energies such as wind and solar power (86 per-

    cent), the development and improvement o public transpor-tation (83 percent), and developing and expanding parks thatpreserve green space and recreation areas in communities (71percent) to be included.

    Respondents also agreed that economic stimulus activitiesshould be less ocused on immediate needs and more on long-term economic growth. Specifcally, 80 percent o Americanswant transportation and other inrastructure spending in-cluded in the economic stimulus bill to go to projects thatachieve multiple goals including creating new jobs, improv-ing the environment, increasing transportation choices, andreducing dependence on oreign oil, even i it means jobs arecreated over a longer period o time. Te top transportation-related goal in respondents eyes is promoting long-term eco-nomic growth (41 percent).

    In addition, 89 percent want transportation investmentsto support the goal o reducing energy use, with 58 percentwanting that strongly. Tree in our also want the stimulus

    plan to support the reduction o carbon emissions that lead toglobal warming and climate change.

    Te 2009 Growth and ransportation Survey was conducted byHart Research Associates, January 57. Hart Research Associatestelephoned 1,005 adults living in the United States. Te study hasa margin of error of plus or minus 3.1 percentage points. Te en-tire survey can be viewed at www.realtor.org/smartgrowth.

    Statement A

    Statement B

    Depends

    Not sure

    0 10 20 30 40 50 60 70 80

    15%

    80%

    2%

    3%

    Im going to read you two statements, and Id l ike you to tell

    me which one comes closer to your point o view.

    A: Transportation and other inrastructure spending should

    only include projects that can be started right away, such as

    traditional highway and bridge construction, to create new

    jobs and provide an immediate boost to the economy.

    B: Transportation and other inrastructure spending should

    be targeted specifcally to projects that achieve multiple

    goals, including creating new jobs, reducing dependence

    on oreign oil, improving the environment, and increasing

    transportation choices, even i the jobs are created over a

    longer period o time.

    Building new roads

    Improving public transportation

    Developing communities wherepeople do not have to drive as much

    Not sure

    0 10 20 30 40 50

    20%

    47%

    25%

    8%

    Which o the ollowing proposals is the best long-term solu-

    tion to reducing trafc in your area?

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    The term light rail is commonly applied to trains thatoperate on rights-o-way o the streets or on urban-areastreets, have several cars, and are lighter and shorter thancommuter rail trains or heavy rail systems. Tere is generallysome distance between light rail stations, perhaps as muchas a mile, except in urban centers. Streetcars, also known astrolleys, usually share city streets with cars, trucks and buses,have one or two cars and stop every ew blocks. In most cases,light rail and streetcars run on electricity delivered by over-head power lines.

    In 1981, the rst light rail system in the United States openedin San Diego. Nearly 30 years later, 34 light rail systems areserving communities rom coast to coast. Many o them areinvolved in major expansions o their lines, and three dozenmore communities are in various stages o planning and de-

    veloping light rail.

    Light rail and streetcars (including trolleys) still comprisea small part o the public transportation market across thecountry: light rail ridership accounted or less than 1 percento total transit trips last year, much less than major publictransit modes like buses or commuter rail. Most Americans,meanwhile, still hop in their cars to commute to work, goshopping, take in a movie or haul the kids to soccer practice.

    Te transportation environment is changing rapidly, howev-er. Light rails success is leading transportation planners andlocal government ocials across the country to propose newsystems or their communities, and light rail is now growingaster than other modes. Te American Public ransporta-tion Association (APA) reported that light rail and streetcarridership increased by 8.3 percent in 2008, highest among allmodes o public transportation. otal ridership or the yearwas 465.1 million. APA reported double-digit increases inlight rail ridership last year in Charlotte, Bualo, Philadel-

    phia, Sacramento, Baltimore, Minneapolis, Salt Lake City,New Jersey, Denver, and Dallas. Denver is already exceedingits ridership projections or 2020.

    Te newest light rail system in the United States is Soundransits 15.6-mile Central Link in Seattle, which opened inJuly 2009. Nearly 62 percent o the voters approved an exten-sion o Seattles system in the 2008 election. Beore that thelatest was the MERO in sprawling, congested Phoenix. Priorto the launch o the MERO in December 2008, Phoenix, thefh-largest American city, was the largest with no passengerrail service o any kind. Amtrak didnt even stop there. In therst two days o operation, 200,000 rail-starved people rode

    MEROs 20-mile starter line.

    A Boost to Local Economies

    Light rail has proven to be a major stimulus to the econo-mies o communities that have built new systems in recentyears. ransit-oriented development (OD) is built into theplanning or some systems, but is not a consistent actor inthe growth o light rail. (See Developers Are Building MoreWalkable Neighborhoods Around ransit Systems.)

    ransit-oriented reers to developments clustered aroundtransit stations with amenities designed or sae, convenient

    use by pedestrians. One agency that actively promoted ODwas Dallas Area Rapid ransit (DAR), which currently op-erates two lines on 45 miles o track in Dallas and its sub-urbs and is planning to add a third, 28-mile line by December2010.

    In November 2007, the Center or Economic Developmentand Research at the University o North exas issued a reporton the potential scal impacts o OD in the DAR service

    Fast-Growing Light Rail Adds to TransportationChoices and Can Stimulate Local Economies

    Light rail systems are trains that are lighter

    and shorter than commuter rail or heavy rail

    systems. Although light rail represents only

    a small portion o the public transportation

    market, it is the astest growing mode o pub-

    lic transportation and has been shown to

    provide a signifcant stimulus to surrounding

    economies. But the recession is slowing light

    rail expansion plans and orcing service cut-

    backs and are hikes.

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    area. Te report came to this startling conclusion: Te to-tal value o projects that are attributable to the presence oa DAR Rail station since 1999 is $4.26 billion. Te studyreported that homes near rail stations increased in value by 39percent more than homes not served by light rail.

    In Charlotte, transit ocials say that more than $291 millionin new development has been built near stations on a 10-milerail line that opened last year, with an additional $1.6 billionin development to come. Denver transit ocials say 11,000residential units and 8.4 million square eet o new retail, o-ce, and government space have been built along its existing35-mile rail network. A U.S. Department o Commerce mod-el estimates that the University Link, a 3.7-mile connectionrom downtown Seattle to the University o Washington, willgenerate economic activity equivalent to 22,800 jobs.

    The Cost Factor

    Even as light rail is growing in popularity and ridership, how-

    ever, the global recession is creating unding issues that couldput expansion plans on hold, or scale them back, until theeconomy recovers. Many systems are considering are in-creases, service cuts, and layos.

    Light rail construction is nanced largely by local tax increas-es and ederal construction grants with other ederal, state,and local unds added into the mix. Fares comprise a smallportion o revenueor example, just 19 percent o operat-ing expenses or Denvers Regional ransportation District(RD).

    Its not a money-making proposition, says Matt Cohen, a

    Denver REALOR who serves on the RD Board. Its notgoing to pay or itsel in the present model.

    Were always seeking ederal grant sources, RD GeneralManager Cal Marsella says. Weve cut costs here in every waywe can. Were always looking at the state budget. So the onlyplace you can look to really is ederal grants, i theyre there,and raising the sales tax.

    But the sales tax increases approved by local voters in reeren-dums are producing less revenue because o the recession.

    Charlottes LYNX light rail system is unded in part with a

    hal-cent sales tax approved by voters in 1998 with 57 percento the vote. Last year, 70 percent o the voters rejected a ballotissue pushed by light rail opponents to repeal the sales tax. Yeteven so, LYNXs shortall has been projected at $260 millionover 10 years.

    Te ederal government has provided major support or con-struction o light rail systems, coming up with 50 percento the cost in many instances. Art Guzzetti, vice presidento policy at APA, notes, however, that the ederal govern-ment pays 80 percent o the cost o highway construction. Hesays ederal support has been increasing, but the government

    needs to do a lot more.

    I would look at it another way and say they have been under-unding, says Guzzetti. Tere are a lot o good projects outthere, and there should be a higher level o investment.

    Te ederal economic stimulus plan will help, providing $1billion in capital investment grants or light rail, heavy rail,commuter rail, and high-occupancy vehicle projects. Phoe-nix, New Jersey, and Charlotte have already received light railstimulus grants.

    Case Study: Denver

    O all the cities where light rail is winning public transporta-tion converts and pulling people out o their cars, none hasbigger ambitions than Denver. Te RD, the regional trans-portation agency that serves the Mile High City and all orpart o eight adjacent counties, is planning to expand its exist-ing 34-mile light rail system to 122 miles by 2017.

    Unortunately, the cost o the expansion is pegged at $6.9 bil-lion$2.3 billion more than voters were told it would be in2004 when they passed, or the second time, a sales tax in-crease to help pay or light rail. Denver residents and visitorsnow pay a 1 percent sales tax to support light rail.

    A majority o the 15 members o the RD Board o Directorsavor asking the voters to double the portion o the sales taxdedicated to the Fasracks expansion, as the proposed systemis called, to eight-tenths o a percent.

    Te consensus was, essentially, we will vote to ask the votersor a tax increase, but we dont know whether it will be in 2009or 2010, says Cohen. Te best case scenario is the voters willapprove a our-tenths o one percent increase in the Fasrackssales tax, and the eds will approve $1 billion in unding aswe explore public-private partnerships. I the tax is approvedand the eds approve $1 billion in unding, we build out thesystem by 2017.

    Without the additional local and ederal unding, it will likelytake until 2034 to complete Fasracks. As this goes to printthe board has not decided when it will vote on taking the taxincrease to the voters.

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    As any requent driver knows all too well, American road-ways are crowded. And with the population expected to

    increase 100 million by 2050, its a problem thats only goingto become more pressing. Nearly hal o those surveyed in the2009 Growth and ransportation survey, sponsored by theNational Association o REALORS and ransportation orAmerica, thought that improving public transit was the bestway to cut down on local trac. So communities rom Puyal-lup, Washington, to Chicago to Bergen County, New Jersey,are turning to Bus Rapid ransit, an aordable, ecient alter-native to intercity rail. Supporters say that Bus Rapid ransit,or BR, can cut down on congestion while improving accessto employment centers and cultural attractions.

    Strictly dened, BR has seven characteristics:

    Dedicated lanes on streets or highwaysStations that go beyond bus shelters, with benches, light-ing, ticket vending machines, and inormation on arrivaltimes or the next buses

    Specialized, articulated buses that carry more passengersthan regular busesImproved are collection systemsAdvanced technology that allows vehicles to change up-coming trac signals and provide real-time travel inor-mation to passengersImproved service such as aster trips and better reliabilityBranding and marketing, including special signs, distinc-tive logos, and colors or the buses and stations

    Most o the 25 metropolitan areas across the United Stateswith Bus Rapid ransit dont incorporate all seven eatures.Cities as varied in size as Los Angeles; Hartord, Connecti-cut; Charlotte, North Carolina; and Eugene, Oregon, operateBR programs that conorm to the needs o the area. Somesystems are doing little more than calling a bus route BR,while others meet several qualications, such as running ona dedicated lane during peak trac times and being able toaect trac signals.

    An elaborate BR system can cost $300 million to $400 mil-lion. But even small changes that might cost as little as $1to $2 million, such as upgrading bus shelters and running a

    bus that stops at every other stop, can make a dierence, saysDennis Hinebaugh, director o the National Bus Rapid ran-sit Institute in ampa, Florida. ake the best route on yoursystem and make it more rapid, he suggested.

    Encouraging Beginnings

    Early versions o Bus Rapid ransit date back several decades,but only in the past ve to 10 years have communities aroundthe United States engaged in earnest discussions to adoptthese systems. Most have been implemented just in the pastthree years.

    One model o a BR system is the ransMilenio in Bogota,

    Colombia, launched in late 2000. According to a World Bankreport, by early 2004 ransMilenio was running as manyas 280 buses an hour in each direction and providing up to900,000 passenger trips on an average weekday, or about 16percent o the citys public transportation trips. According toransMilenio, air pollution along its corridors decreased 40percent in the systems rst year o operation.

    Bus Rapid Transit Offers a Fast,Low-Cost Alternative

    With Americans seeking out new forms of

    transportation in congested urban areas, Bus

    Rapid Transit (BRT) is emerging as a relative-

    ly low-cost alternative. The 25 BRT systems

    now in operation across the United States

    vary considerably, but most share character-

    istics such as dedicated lanes, larger capaci-

    ties than regular buses, faster trips, and more

    rail-like stations. Although new BRT systems

    in places like Boston and Eugene, Oregon,

    have proved highly popular, some opponents

    contend that light rail systems are generally

    a better choice.

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    In the United States, Clevelands Euclid Corridor ranspor-tation Project is the newest ull-scale BR. Launched in all2008, the BR, called the HealthLine System, uses 63-oot,

    hybrid diesel-electric, articulated buses that can hold as manyas 111 passengers (seated and standing) and have two interiorbicycle racks. Te seven-mile route, through one o Cleve-lands oldest areas, uses special median bus lanes and is beingadorned with $1.2 million worth o public art. Te corridorlinks downtown Cleveland to major hospitals and Case West-ern Reserve University, as well as to cultural attractions. Sincethe HealthLine System began running last October, ridershipis up nearly 40 percent.

    A Burgeoning Success in Eugene

    It didnt take long or people in the Eugene and Springeld,

    Oregon, areas to take to their Bus Rapid ransit system. Afer12 years o community discussion and planning, the EmeraldExpress, or EmX, debuted in January 2007, replacing whathad been a regular bus line. Beore the EmX, the route drew2,700 boardings per day; now, it averages 6,000, says AndyVobora, director o service planning, accessibility and mar-keting or the Lane ransit District, which runs the service.Our projection was a 40 percent increase in ridership over a20-year period. So were pleased with that, he said. So ar, theservice has been ree, but ares will begin this summer.

    Te EmXs our-mile route connects downtown Eugene withdowntown Springeld and uses the same type o elongated

    buses that Clevelands system has adopted. It also has medianbus lanes separated rom trac, median transit stations, andsignal priority. We tried to create, probably, the most exten-sive BR system around, in terms o amenities. We were try-ing to emulate light rail, Vobora says.

    EmX stations are one-third to one-hal a mile apart, whichmeans there are ewer stops than with a regular bus. People

    have to walk a little arther, which may be more dicult orolder or disabled passengers, but ew have voiced concerns,according to Vobora. One benet is aster travel time. Te

    regular bus traversed the route in 22 minutes while the EmXtakes 16 minutes or less.

    Skeptics may ask i it was worth spending $24 million to createthe our-mile EmX stretch just to save six minutes. Voborasreply: Even that is pretty signicant in terms o operationalcost savings. In other words, ewer buses are needed to pro-

    vide the same service. And the real impact will be elt when a7.5-mile, $41 million extension opens in 2010.

    Eugenes EmX quickly drew recognition rom around theUnited States. Te BR system received an Honorable Men-tion rom the 2008 Sustainable ransport Awards, sponsored

    by the Institute or ransportation and Development Policy inNew York. Eugene was the only United States city nominatedor the awards, whose top honors went to London and Paris.

    Bostons Popular Silver Line

    In the Boston area, trac is ofen an issue because the streetsare ormer cow paths and were never laid out in a grid orma-tion like most other big cities, says Gregory Vasil, chie ex-ecutive ocer o the Greater Boston Real Estate Board. Ourmembers were seeing a number o people that were lookingor homes very close to public transportation nodescom-muter rail, subway, or bus routes. rac is a nightmare, and

    people would rather take public transportation than drive,Vasil said.

    It makes sense, then, that Bostons Silver Line also has beenpopular with passengers. Skirting Bostons waterront and ex-tending to Logan Airport, the Silver Line opened in 2005 andhas become the busiest o the 185 bus routes operated by theMassachusetts Bay ransportation Authority (MBA). On a

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    typical weekday, the Silver Line has 14,200 boardings com-pared to 800 to 13,000 a day on the other bus routes.

    Te Silver Line is just one part o a massive transit system inthe Boston area that also includes light rail and subways. JoePesaturo, director o communications, notes when planningwas underway, some people thought the Silver Line shouldbe a light rail or trolley system, but the cost would have beensubstantially higher. And trolleys still compete with trac,he says. All it takes is one car, one accident and trolleys haveto come to a stop. A bus can veer around a crash scene andkeep going.

    BRT vs. Light Rail

    Opponents say Bus Rapid ransit doesnt measure up to lightrail when it comes to long-term labor costs, uel use, or eco-nomic development. You cant make a bus into a train andthats whats been promoted, said Dave Dobbs, publisher oLightRailNow.org, based in Austin, exas.

    A study by the Caliornia Center or Innovative ransporta-tion showed the Orange Line, a BR route that travels romthe end o a subway line across the San Fernando Valley, hasreduced trac congestion on the parallel U.S. Highway 101by 14 percent. Dobbs says he thinks the Orange Line prob-ably could have been converted to light rail or a relativelysmall cost and would carry even more people than it doestoday. According to Dobbs, about 50 United States cities ei-ther have light rail lines or are considering building them;France is building an electric-powered light rail system in ev-ery city o 100,000 or more. Operational costs o light rail,over time, are much lower than a bus, Dobbs said. He said

    a study by LightRailNow.org shows energy consumption ona per-passenger-mile basis is lower with light rail than withcars or buses.

    Dobbs also contends that Bus Rapid ransit does little to en-courage economic development along its routes because busroutes are less permanent than rail lines and can be changed.A bus tends to be an aferthought. Buses are ollowers where-as trains and rails are leaders, he says. A bus stop can goanywhere it wants to go tomorrow.

    Space constraints can also pose problems or BR, wheredowntown streets in big cities may be narrow, says AimeeGauthier, communications director or the Institute or rans-portation Development Policy. What we want is or [com-munities] to implement a good quality, customer-orientedmass transit system. Most cities cant aord to pay or lightrail or heavy rail. But Bus Rapid ransit is not only aordable,you can also provide the same level o service and demandas rail.

    Bostons Silver Line

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    Every ew generations, innovations in transportation spura revolution in how people and goods move around, withproound implications or how and where we build our citiesand towns, and ultimately, how we live. In 2009 the ederaltransportation law is up or reauthorization, and in the aceo a population dissatised with our current car-based trans-portation system, it may be time or some big steps. In the lastyear, two Congressionally-appointed commissions, key mem-bers o Congress, road builders, the U.S. Chamber o Com-merce and large advocacy coalitions such as ransportation

    or America all have declared the current program exhaustedand in need o a major rethink. Many o those ollowing theissue believe that this year may be a turning point akin to thato 50 years ago.

    The Interstate Highway Act

    In 1956, when gasoline was just 20 cents a gallon, PresidentEisenhower signed what came to be called the Interstate

    Highway Act, an ambitious program that linked Americascities and states with a network o long-distance superhigh-ways. Faced with what seemed like a never-ending demandor automobile travel, the government created policies thataccommodated and even promoted the growth o suburbsand sprawling car-dependent urban areas.

    What worked 50 years ago, however, is causing major prob-lems today. Volatile gas prices burden household budgets androil the real estate market; spread-out metro areas require a

    car to reach services and jobs; older Americans and memberso low-income communities nd themselves increasinglyisolated due to unreliable public transportation networks.Americans no longer live howor wherethey did 50 yearsago, and uture transportation policies will need to addressthe new needs o a changing population.

    Shifts in Travel Needs

    It is estimated that by 2030, one in our Americans will be65 or older. As older Americans leave the work orce, stopcommuting and begin to restrict the hours and distances theytravel rom home, they generally drive less than the popula-tion as a whole. In the baby-boom era o car-oriented suburbs,hal o all households had a mom, dad, and kids. oday thatshare has shrunk to less than a third, while the proportion osingle-person households edged past it. Fewer soccer momsand dads shuttling the kids around also will mean ewer milesdriven overall.

    Another signicant change rom the 1950s is that 75 percento Americans now live in metropolitan areas. Te largest 100metropolitan areas alone account or 65 percent o the popu-lation and 78 percent o economic activity. In coming years,the population is projected to become even more heavily con-centrated in urban areas. Te challenge these days is not so

    much getting between cities, or rom arm to market, as trav-eling within increasingly crowded metro areas.

    Americans driving habits are also increasingly shaped by re-alities o climate and limited energy supply. As oil becomesless plentiul and more hotly contested in coming decades,reducing per-person consumption will be part o the nationsplan to insulate ourselves rom volatile energy markets andpotentially hostile oil-producing countries. Proposed mea-

    The Federal Transportation Program:NAR Adopts a Policy Position

    With the six-year ederal transportation spend-

    ing bill up or renewal this year, major changes

    could be in the ofng. For the frst time ever

    Congress is entering this reauthorization debate

    with its main repository o ederal transportation

    unds, the Highway Trust Fund, insolvent. At the

    same time America is changing demographi-

    cally and socially, leading to shits in the kinds

    o transportation options that people want. Con-

    gress will have to meet these new needs and

    fnd new sources o unding. Because these

    issues aect community livability so much, or

    the frst time the National Association o REAL-

    TORS has adopted a detailed policy position

    on the reauthorization o the ederal bill.

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    sures to curb greenhouse gas emissionswhether a carbontax or a cap-and-trade systemmay also increase the cost odriving. Higher prices, in any event, will lead Americans todrive less, as they did when prices spiked dramatically lastsummer and all.

    A Changing Real Estate MarketTese changes in travel patterns, demography, and culturalpreerences are being reected in an evolving real estate mar-ket, says Christopher Leinberger, a real estate consultant anddeveloper, and the author oTe Option of Urbanism: Invest-ing in a New American Dream.

    He notes that in the current, down market, properties on theexurban ringe with long commutes to job centers are lan-guishing even at drastically reduced prices, while those closerto transit stations and employment concentrations are hold-ing value. Recent high gas prices have exacerbated a trendaway rom places with long, expensive commutes, says Bob

    McNamara, senior policy representative with the NationalAssociation o REALORS.

    Tat drive til you qualiy idea was based on a calculus, andthat calculus is broken, as many people are nding to theirdismay, McNamara says. Although gas prices have droppedrecently, people are much more conscious o the cost o trans-portation.

    Te market has begun to shi, Leinberger says. For 50years there was pent-up demand or drivable suburban prod-uct, and it was a new product. We had a very good run o that,but now the pendulum has swung. oday there is pent-up de-mand or another product we havent addressed or decadeswalkable urban.

    Places designed to be walkable allow residents to meet many,or even all, daily needs within walking distance or by transit,according to Leinberger. Recently, the real estate Web site Zil-low.com began posting walkability ratings or its listings, cre-ated by WalkScore.com, which bases the score on how manyactivities and services are located within walking distance.

    Its not that everyone wants walkable neighborhoods, butwe clearly are not meeting the demand, and its only going togrow, Leinberger says. Meeting that demand will require abalanced transportation system: rail transit, walking, biking,as well as cars.

    NARs Position on Federal Transportation Policy

    Tese transportation issues have begun to loom so large inthe real estate and housing equation that, or the rst time,NAR has adopted a detailed policy position on the reauthori-zation o the ederal bill.

    Te reauthorization legislation doesnt touch directly onreal estate transactions, so there is not a direct stake, Mc-Namara says. Te REALORS interest in this stems romtheir interest in community livability, in smart growth, andin looking at the polling weve donethe act that housingconsumers would like more options and dierent options.

    I were successul in providing those options, communitieswill be more prosperous and more livable and thats got tobe good or real estate.

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    In another rst, the NAR also has joined a diverse coalitiono nearly 300 national, state and local organizations with astake in the ederal transportation bill. Te ransportation orAmerica coalition (online at 4America.org) aims to repre-sent the broad range o transportation system users, as dis-tinct rom the industry groups that usually ollow the debate

    closely. Te 4America coalition includes well-known orga-nizations such as AARP, the American Public Health Asso-ciation and the National rust or Historic Preservation, aswell as key groups with a ocus on issues including rural andsmall town concerns, aordable housing, the environment,social equity, public transportation, bicycling, and walking.A number o elected ofcials and state and local entities arealso involved.

    Major Questions

    James Corless, the directoro 4America, says the bigchallenge or coming de-cades will be developing andunding a program to build the second hal o the trans-portation systemthe intercity trains, light rail and bus lines,and walking and biking inrastructure that have lagged overthe yearswhile maintaining and maximizing the efciencyo existing highways, bridges, and transit lines. Such steps willmake communities more livable, helping to address the pent-up demand or real estate with good access to transportationoptions. Some major policy questions include:

    How to meet the pent-up demand or public transit, par-ticularly rail, rapid bus and streetcar projects, many owhich have local unding but must wait years or theirederal match;

    How to give metropolitan areas the latitude to solve theircongestion and mobility issues, while holding them ac-countable or being air and inclusive and making timelyprogress on national goals;

    How better to serve rural areas and small towns, whichwere especially hard hit when gas prices soared, andwhose chronically underunded bus and shuttle servicesleave many stranded;

    How nally to start to coordinate development andgrowth patterns with transportation investment, to en-sure that people can nd homes near jobs, that highwaysdont become overburdened by bad planning, and thatwe make the most o transit investments; and

    How to streamline the programs and delivery systemsthe transport agencies at all levels who must implementthe new visionso that projects get built quickly, yet stillaccording to smart planning.

    And the biggie, o course: How to pay or it all.

    Tis is the rst time weve gone into an authorization debatewith the highway trust und insolvent, notes John Horsley,executive director o AASHO, the association o state de-partments o transportation. Usually there have been re-serves deep enough that congress could take its time and keepextending the existing law till they reached agreement. Buteven as the insolvency question adds to the urgency: Tere is

    a desire by the White House and the Congressional leadershipto make a transormational bill.

    Horsley says he thinks Congress should debate a vision andestablish unding authorizations at a level sufcient to ulllit, an estimated hal-trillion dollars (nearly double the currentlevel), then work through the politics o actually raising themoney in the next couple o years. Te bill itsel should en-courage experimentation with new unding sources: charginga vehicle-miles traveled tax based on how much you drive,rather than how much uel you buy; unding some rail transitprojects by recapturing increased land values; charging con-gestion tolls or those driving at peak times; and plowing that

    money into providing alternative modes o travel in the samecorridor.

    Whatever the mechanism, Corless says, Americans are likelyto pay i it results in giving them cleaner, smarter, cheaper,and more convenient options.

    In the end, you should still be able to choose to drive, hesays, but it shouldnt be your only option.

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    Similar ndings emerged rom a 2006 study by the Centeror Housing Policy (CHP), the Center or Neighborhoodechnology (CN), and the Institute o ransportation atthe University o Caliornia, Berkeley. Tat study, A HeavyLoad, examined the budgets o households earning between$20,000 and $50,000 in 28 dierent metropolitan areas. Whencompared to households o all incomes, these amilies spentthe same percentage on housing (27.7 percent) but ar moreon transportation (29.6 percent versus 20.2 percent). AHeavy Load concluded: In their search or lower cost hous-ing, working amilies ofen locate ar rom their place o work,dramatically increasing their transportation costs and com-mute times. Indeed, or many such amilies their transporta-tion costs exceed their housing costs.

    Hidden Costs

    Rising gas prices last year brought national attention to ofenunobtrusive transportation costs. Gloria Ohlman, the com-

    munications director at Reconnecting America, points out thereason transportation expenses are ofen overlooked: Familiespay or housing in monthly lump sums, either rent or mort-gage, but they pay their transportation costs in bits and pieces.Who knows how much they spend on gas, repairs, insurance?Its all these disaggregated costs. I dont think people are verycognizant o how much they spend on transportation.

    Te Housing and ransportation Aordability Index (onlineat http://htaindex.cnt.org/) developed by the Center orransit-Oriented Development (COD) and CN on be-hal o Te Brookings Institutionilluminates the tradeobetween housing and transportation in 42 cities across thecountry. Te index adds average housing costs and average

    transportation costs and divides the total by average income.(ransportation costs are calculated using a model that takesinto account density, walkability, and transit availability o in-dividual neighborhoods.)

    Te Housing and ransportation Aordability Index con-cludes a amily should spend no more than 47 percent o itsincome on housing and transportation. Tat gure is basedon the national average expenditure o 19 percent or trans-portation plus the mortgage underwriting standard o 28 per-cent or housing. Using 47 percent as a benchmark, the indexcan tell amiliesand/or their REALORwhich neighbor-hoods are aordable based on a amilys particular income.

    Another set o such indices is under development by the U.S.Department o ransportation (DO) and the Departmento Housing and Urban Development (HUD). In the springo 2009 the secretaries o those agencies announced they willcollaborate to expand aordable housing and transportationchoices. High on their agenda: helping metro areas developindexes that roll housing and transportation costs into a sin-gle measure o aordability.

    Tis idea had no traction or a long time, and suddenly theObama administration seems to be seeing the importance,Ohlman says. I think this is the rst time DO and HUDhave partnered on a project in something like 40 years.

    Bringing Costs Down

    People choose where to live based on more than simply costo housing and length o commute, so or some, other actorsare the ones that tip the scales. Its a more complicated issuethan just how much youre paying, says Jerey Lubell, execu-tive director o CHP. People also move because they want abigger house, a saer neighborhood, better schools.

    Fortunately, transportation cost is not purely correlated todistance rom city centers. Mass transit can mitigate the oth-erwise steep price o a daily commute, and a healthy aware-

    ness o the cost o distance may be more valuable to thehome-buying process than any binary imperative. As Lubellsays, Ultimately, its about creating more walkable and tran-sit-oriented communities where more o the things peopleneed to do are closer together.

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    A lthough some cities like New York and Chicago havelong-entrenched public transit systems, in most placesAmericans attachment to their cars made new public transita hard sell or decades.

    But attitudes are changing. Concerns about global warmingand increasingly volatile gas prices have led to increased in-terest in environmentally riendly transportation. Te weak-ened economy is orcing Americans to scrutinize every pennythey spend on housing and commuting. And ever-worseningtrac gridlock may also be converting nonbelievers intotransit evangelists. When asked the best approach to solvingtrac problems, 47 percent o respondents to a 2009 NationalAssociation o REALORS and ransportation or Ameri-ca (online at 4America.org) poll avored improving publictransportation, 25 percent preerred building communitiesthat make it possible or people not to drive, and only 20 per-cent advocated building new roads.

    Real Estate Development Follows Transit

    Increasingly, this shi in attitudes is leading cities to buildnew public transit systems or expand their existing ones. InDenver, voters agreed to tax themselves to pay or a regionallight rail system, says Allison Brooks, managing director oReconnecting America, an Oakland, Caliornia, nonprot

    transit advocacy organization. Minneapolis-St. Paul is in-vesting in a new light rail system. In Los Angeles, voters ap-proved a tax to pay or the expansion o the current system.Charlotte and Phoenix are also investing in transit.

    Following close behind is real estate development clusterednear light rail stations, at subway stations, and near street-carscalled transit-oriented development, or OD. Teseare projects like the Lake Highlands own Center in Dallas, anearly 2-million-square-oot, mixed-use project that will in-

    clude a Dallas Area Rapid ransit (DAR) light rail station.A growing number o developers really get transit-orienteddevelopment, says Jud Pankey, chie executive ocer oPrescott Realty Group, which is building the Lake Highlandsown Center. Its a whole new way o doing business.

    Transit-Oriented vs. Transit-Adjacent

    ransit-oriented development is not just any land use locatedadjacent to or near a rail station. o be transit-oriented thenearby land uses must be readily accessible to and rom sta-tions and must be designed or sae, convenient use by pedes-trians. rue OD has an organic relationship with transit. Itincreases transit ridership and it directly benets rom highpedestrian activity levels associated with the transit line. Suc-cessul OD districts generally display pronounced elementso place in the sense that people willingly spend time there(not just waiting or transit) and the district has a neighbor-hood name and is well-known to the area population as a des-tination.

    Te land use mix required to achieve these characteristics canvary depending on the transit mode and on the location o thestation within the metropolitan area. Generally, at least threemajor land uses should be immediately present. Residential,retail, restaurant, and civic uses would represent a common

    OD mix. Hotels, oce buildings, and other places o em-ployment may also be present.

    Tere are many rail transit stations in the United States (in-cluding some in and around major cities) that have no signi-cant organic relationship with their surrounding land uses.Tis is most common or suburban commuter rail stationsthat serve primarily to provide park-and-ride access to thetransit line, but it can also be true o major employment cen-

    Developers Are Building More WalkableNeighborhoods Around Transit Systems

    Responding to Americans changing prefer-

    ences, developers are helping transform the

    way cities grow with projects huddled near

    transit hubs. Such projects are increasingly

    popular, and are likely to become more so

    as concerns about climate change and gas

    prices continue to rise. They also have drawnsupport from the federal government. But

    in many ways they can be more challenging

    than traditional developments on virgin land.

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    ters served by a transit stop. In other cases, auto-oriented de-velopment patterns and inrastructure design have negatedany land use benet rom the transit service. Tese sites aregenerally reerred to as transit-adjacent and may representa signicant missed opportunity.

    ransit-oriented districts are mainly located within a quarterto a hal mile o a high-capacity transit station. Tis radius isrelated to pedestrian walking distances, since public transitmost inuences those land uses that can be reached on ootin ve to ten minutes. It is important to note that the size oa OD area can be larger or smaller than this depending onthe quality o the walking environment and the presence orabsence o signicant barriers to walking.

    A Growing Trend

    Tose who have mastered OD say the phenomenon willonly expand. In ve years, properties along transit routeswill have increased in value because people will pay a pre-

    mium to live where they can walk to a transit station, even itheyre not using it every day, says Carl Dranof, president oDranof Properties in Philadelphia. Tose will be the mostsought-aer locations. One o Dranofs projects, a 163-unitcondominium development in Philadelphias cultural hub, iswithin steps o a subway entrance and the Kimmel Center orthe Perorming Arts. Tat project is now 90 percent sold. Wewere able to hold our prices, and our all-out ratio o peoplewho cancelled contracts while waiting or their unit to benished was only 7 percent, says Dranof. We were able togo against the grain because sales on projects near transit arebetter than those urther away.

    Ive been doing OD since the late 1990s, and I continue toask mysel whether its going to go away, says G.B. Arrington,

    vice president and principal practice leader or PB PlaceMak-ing, a Portland, Oregon, design and planning rm specializ-ing in OD. But the interest and demand in both the publicand private sectors continues to grow because developers whoollow the principles o OD will create places that are moreresilient in the ace o gas prices and climate change.

    Federal Policy Support

    Federal policymakers seem to agree. In March 2009, the U.S.Department o Housing and Urban Development (HUD) and

    the U.S. Department o ransportation (DO) announced ajoint livable communities initiative to help Americans gainbetter access to afordable housing, nd transportation op-tions, and lower their transportation costs. According to thetwo agencies, the average working American amily spendsnearly 60 percent o its budget on housing and transportation.

    Teyve united to cut those costs by creating afordable, sus-tainable communities that rely heavily on transit. DO alsoannounced $100 million in ederal unding or transit proj-ects that reduce energy consumption or greenhouse gases.

    In the last six months, weve seen national interest at thepolicy level that we havent seen beore, says Abby Torne-Lyman, a principal at Strategic Economics, an economic andreal estate consulting rm, and a staf member or the Centeror ransit-Oriented Development, a nonprot research andadvocacy group in Berkeley, Caliornia. Its become a nation-al movement, not just o developers but also o policymakersrealizing they have a role to play and that transit has largebenets in terms o greenhouse gas reduction and economicdevelopment.

    Challenges

    But even with increased ederal support, OD can be muchmore dicult and complex than development on virgin land.

    It can be dicult to assemble the necessary parcels, and theapproval process can present a maze o zoning and permittingrestrictions. Youve got multiple public entities and publicconstituencies to work with, says Pankey. You have not onlythe transit authority, but other public improvements may alsohave to be done, and that could mean working with the city,county, and a tax increment nancing (IF) district. Tosemembers represent various constituencies, and you have tobe able to navigate that process and articulate the benet otransit living.

    Lenders oen dont understand the large and intricateandlong-termnature o OD projects. Oen a developer must

    borrow in order to acquire property and then hold that prop-erty until the transit service matures and the demand it bringscan support the development. Tis means lenders, which o-ten include public entities alongside private banks, must bewilling to wait a long time.

    Local residents may also lay down early opposition to high-er-density developments. Not-in-my-backyard (NIMBY)concerns are nothing new to developers, but OD presentsadded complications. Dan Johnson, deputy city manager andchie operating ocer or Richardson, exas, which is addingour stations to the DAR rail line that runs through the city,says early planning is one way to avert NIMBY sentiments.

    Several years beore the rail was developed, we were activewith our city council and speaking in public sessions, he says.We were also selected by the Urban Land Institute or a panelstudy in which a task orce o proessionals conducted plan-ning and visioning sessions. A lot o problems were circum-

    vented by having that session early on.

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    E arly in 2009 Congress passed a stimulus package at Presi-dent Obamas request that included $9.3 billion or theconstruction o new passenger train lines. Te president ol-lowed that up with an additional budget request o $1 billiona year or the next ve years. Te 2009 Omnibus Appropria-tions Act includes $90 million in matching grants or intercitypassenger rail travel.

    Te ederal support could help the United States reduce itsautomobile dependence. Unlike other modern industrialcountries like Japan or those in Europe, the country lacks atrue high speed rail train. Te $787 billion stimulus packageincluded $1.3 billion or Amtrak and $8 billion or passengertrain capital grants, including money to develop high speedrail in 11 corridors across the country.

    Clear Benefts

    In remarks to the National League o Cities this past spring,U.S. ransportation Secretary Ray LaHood stressed that thegoal behind all the transportation money included in thestimulus bill was not only to create jobs but to help make com-munities more sustainable. Tis efort not only puts people

    to work, it gets people to work in a way that moves us towardour long-term goals o energy security and more livable com-munities, said LaHood.

    Indeed, economic studies done or a high speed rail projectto link Sacramento to San Diego, by way o San Francisco andLos Angeles, suggest that the train would increase land valueby acilitating denser development. A study o economic ben-ets in Los Angeles concludes that demand to be near thesenew intercity rail stations will lead to more commercial/resi-

    dential inll developments, pushing up property values. An-other study points out that the cities o Ontario and Riversidein Southern Caliornia are already looking to create transit-oriented business and housing developments in order to putcustomers, jobs, and retail outlets in close proximity to oneanother.

    Advocates or passenger rail service stress that the stimuluspackage money wont suddenly create a network o bullettrains across the country. Instead, the money can be used byany train that achieves speeds o 110 mph, which is consider-ably less than ones already operating abroad.

    Its unprecedented but it will not do what people say it willdo, which is run bullet trains, said Ross Capon, president othe National Association o Railroad Passengers.

    Te Federal Railroad Administration states that the idea is toprovide service that is time competitive with both air andauto travel within 100 to 500 miles. But the FRA also statesthat it wants to hand out money to ready-to-go projects orwhich planning, environmental impact studies, and prelimi-nary engineering activities have been completed.

    Caliornia in the Lead

    Te state already the arthest along is Caliornia. Voters in

    that state approved a $9-billion bond reerendum in Novem-ber 2008 to help pay or an 800-mile high speed rail systemthat would traverse the state rom Sacramento to San Diego.Te reerendum also included an additional $950 million topay or urban, intercity, and commuter rail lines to link upwith the high-speed trains. Te state is already moving aheadwith the rst phase o the project, expected to link the LosAngeles-Anaheim area to San Francisco. ravel between San

    Federal Stimulus Package Will BoostIntercity Rail Projects in Multiple States

    At President Obamas request, Congress has

    appropriated more than $10 billion for the

    construction of new intercity rail lines. Eco-

    nomic studies suggest that these new trains

    could increase real estate values. California is

    the most likely state to receive federal funds,

    to help complete a high-speed rail corridor

    linking Sacramento to San Diego. Florida

    may receive funds for a route linking Tam-

    pa and Orlando. Texas, Virginia, Wisconsin,

    North Carolina, and Ohio are other possible

    grantees.

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    Francisco and downtown Los Angeles would take roughlytwo and a hal hours once the train starts running.

    Judge Quentin Kopp, chairman o the Caliornia High SpeedRail Authority, said he is condent that his state can get alarge share o the ederal money because it is pressing aheadwith a train capable o 200 mph. I think its wonderul andIm reasonably condent o getting a substantial amount oallocated grants rom that, Kopp said. Caliornia is unique.

    Kopp said that the state could nish sections o this rst 520-mile phase by 2013, with an estimated completion date o20182020. Te entire $45-billion system is expected to benished by 2025.

    Capon agrees that these aggressive eforts place Caliornia arahead o other states.

    Clearly they have done more or laying the oundation ortrue high speed rail, he said. It could provide a signicantboost to the Caliornia high speed project. Te act is thatmost o the other states are working on what we call incre-mental upgrades in conventional services.

    Florida Another Likely Prospect

    In 2004, then-Gov. Jeb Bush, concerned about the potentialcost, led a charge to repeal a constitutional amendment whichhad mandated that Florida create a high speed rail system totie its major cities together. Beore the states bullet train wasaxed by voters, the state had spent $30 million and pursuedcritical environmental studies or a route connecting ampato Orlando.

    Te Florida High Speed Rail Authority now anticipates thatit could begin construction within the next two years, andthe Florida Department o ransportation says it has ederalgrants in hand that could be used to nish the work needed todraw down stimulus money.

    Other States Not Far Behind

    Caliornia and Florida will not be alone in trying to land bil-lions in ederal assistance or passenger train travel.

    exas wants to expand the rail corridor connecting FortWorth, Houston, and San Antonio.

    Virginia and North Carolina have already done a lot othe groundwork on a route to link Charlotte and Raleigh,N.C., to Washington, D.C.

    Wisconsin wants to move ahead with trains that wouldlink Milwaukee and Madison, and to improve the exist-ing route rom Chicago to Milwaukee.

    Ohio wants ederal money to restart passenger rail ser-vice along the so-called 3C corridor that would link thecities o Cleveland, Columbus, and Cincinnati. Privatepassenger rail travel along this corridor ended in 1971.

    Jolene Molitoris, director o the Ohio Department oransportation, testied beore Congress that with ed-eral stimulus help, Ohio could be in operation quicklyon existing tracks at conventional speeds, laying a oun-dation or high speed rail in the uture.

    A conceptual view of Californias proposed high-speed rail.

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    S hortly aer his election, President Obama began pushingor a massive economic stimulus package, which Con-gress ultimately passed on February 13, 2009. In speechesduring the transition, he called or an investment in transpor-tation inrastructure not seen since the creation o the ederalhighway system in the 1950s. At the same time, he said the

    stimulus investments should be transormational, helpingto put the country on a path to energy independence, curbclimate-damaging emissions, and provide the underpinningso an emerging new economy that would be dynamic, mobile,and less dependent on ossil uels. Many envisioned a newNew Deal, a ederal building program on the scale o the

    Depression-era construction o highways, parks, dams, civicbuildings, and more, much o which we still use today.

    The Stimulus Bill

    Tose aspirations ran head-on into the screen applied byPresident Obamas economic advisers, led by Lawrence Sum-mers. In order to provide the hoped-or, near-term stimulus,Summerss team urged spending on shovel-ready projectsthat could put people to work almost immediately. Tere wasno time to do the planning and big-picture thinking necessaryor transormational investments. Tis meant that much othe money would have to be pushed out through existingprograms, or projectshighways, primarilyalready in thepipeline. It was a major disappointment or those hoping thatthe stimulus would mean a major inusion or oil-saving, low-carbon transportation systems, such as rail and other publictransit, that could become the spines o more walkable orbike-riendly neighborhoods.

    We had all been talking about this potential new vision, butwhen we did the recovery package it was, Shovel the moneyout the door and orget about the consequences, lamentedRobert Puentes, who tracks transportation issues or theBrookings Institution. In the end we ell back on the sameprocesses, the same projects, and the same interests.

    In leaning on yesterdays priorities or expediencys sake, thenation postponed the debate on priorities or the uture untilthe renewal o the ederal transportation program later thisyear, Puentes said.

    Still, the nal stimulus bill, dubbed the American Recoveryand Reinvestment Act, did break some new ground with un-precedented exibility in how the money can be spent. Withnearly 40 percent o the transportation dollars dedicated tointercity rail and public transit construction and rehabilita-

    tion, the bill broke with the past custom that highways al-ways receive at least 80 percent o transportation unds. AerWhite House Chie o Sta Rahm Emanuel intervened on thepresidents behal, $8 billion was added or high speed rail andhigher speed conventional rail, as well as nearly $1.5 billionor Amtrak.

    Federal Government Increases Its Commitmentto Better Roads and Transit, but Slowly

    Transportation inrastructure is drawing sig-

    nifcant attention rom the new administra-

    tion. President Obamas frst major legislative

    eort, the economic stimulus bill, allocated

    nearly $50 billion to transportation projects.

    His frst budget, or fscal year 2010, includ-

    ed plans or a national inrastructure bankthat would be the frst large new unding

    source or such projects in many years. The

    new secretaries o the Department o Trans-

    portation, Ray LaHood, and Housing and

    Urban Development, Shaun Donovan, have

    announced a plan to work together to build

    housing and livable neighborhoods in con-

    junction with mass transit. And Obama has

    announced a plan to connect the countrysmajor economic centers with high speed and

    upgraded conventional rail.

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    Even the $27.5 billion ostensibly designated or highways wasput largely into a unding category, the Surace ransportationProgram, that can be used or transit, ports, and other trans-portation modes. About 30 percent o the money was assignedto metropolitan area planning agencies or allocation as theysee t. Congress resisted entreaties to require state Depart-

    ments o ransportation to x their worst highways and bridg-es beore building big, new projects. Even so, the requirementthat the unds be spent quickly has meant that most DOs areast-tracking maintenance and rehabilitation, resuracings, andbridge painting. Tese are the types o projects that can movewithout a lot o engineering and approval processes.

    Te bill also designates $8.4 billion or public transit capitalprojects. It was a bittersweet moment or transit supporters:Overjoyed at receiving the capital dollars at a moment whentransit ridership was at a 50-year high, they were disappoint-ed that there were no unds to preserve existing service in theace o economic devastation that was requiring major cuts in

    operations.

    The 2010 Budget

    I the stimulus debate sent mixed messages about the nationsdirection on transportation inrastructure, President Obamasrst ull-year budget, or scal year 2010, seemed to giveclearer indications o uture priorities. Te narrative in thebudget overview emphasized investments that advance envi-ronmental sustainability, livable communities, and produc-tive growth. It charted new territory by proposing to requiremore rigorous economic analysis and perormance measuresor transportation projects. Te presidents budget documentalso linked cleaner transportation options like public transitto climate and air-quality issues.

    President Obama also called or $25.2 billion to create andoperate a national inrastructure bank through 2019. Like theFederal Reserve Bank, the inrastructure bank would operateunder an independent board, evaluating and unding inra-structure o national signicance, including water and sewerplants, public transit systems, roads and bridges, and aord-able housing. Te bank essentially would be a revolving loanund, allowing transportation projects to be debt-nanced.Most ederal projects today are unded on a pay-as-you-gobasis rom gas tax receipts.

    In a February 2009 interview President Obama said, Teidea [is] that we get engineers, and not just elected ofcials,involved in thinking about and planning how were spend-ing these dollars Te needs are massive and we cant doeverything. It would be nice i we said here are the 10 mostimportant projects and lets do those rst, instead o maybedoing the 10 least important projects, but the ones that havethe most political pull.

    Not everyone in Congress loves the idea. Sen. Max Baucus,

    the Montana Democrat who chairs the Finance Commit-tee, which would have a say on creating the legislation, has

    voiced opposition. I think that bank idea will rob the u-ture growth o the highway program and that will destroythe national scope o our highway program, he said dur-ing an April hearing on transportation spending held by theSenate Environment and Public Works Committee. Baucusindicated that he believes that wealthier states would be bet-ter suited to compete or the unds, which would have to bepaid back.

    A New Direction for the U.S. DOT

    At the Department o ransportation, Secretary Ray La-Hoodthe ormer Illinois congressman who was the secondRepublican in the administrationcame into ofce promis-ing to promote livability as the watchword o his tenure.

    Te era o one-size-ts-all transportation projects must giveway to ones where preserving and enhancing unique com-munity characteristics, be they rural or urban, is a primarygoal rather than an aerthought, LaHood said at his Senateconrmation hearing.

    He ollowed that with a joint announcement with Housingand Urban Development Secretary Shaun Donovan that the

    two departments would begin to coordinate on transit plan-ning and housing development, and that they would exam-ine ederal rules that either promote or thwart the creationo walkable neighborhoods. Smart growth principles wouldanimate this initiative, the two said. Tey aim to build aord-able housing near public transportation, create shorter neigh-borhood street blocks to promote walking, and expand busroutes to reach more areas.

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    Reviving Rail Networks

    On April 16, with LaHood and Vice President Joseph Bidenby his side, President Obama pulled back the curtain on his

    vision or a revived rail network or America, including de-velopment o high speed passenger rail lines in at least 10 re-gions. Tis would be the rst such transnational eort sincethe Interstate Highway System was launched in 1956. o

    jumpstart the project, he said that he would add $1 billiona year or ve years to the $8 billion to be spent in two yearsunder the stimulus bill.

    In announcing the plan, he noted that clogged highways,struggling airlines and overburdened airways, along with un-certain energy costs and the need to reduce oil consumption,

    threatened the long-term viability o intercity travel in theUnited States.

    What we need, then, is a smart transportation system equalto the needs o the 21st century, the president said, a systemthat reduces travel times and increases mobility, a system thatreduces congestion and boosts productivity, a system that re-duces destructive emissions and creates jobs.

    Te administration plan outlined 10 corridors that have

    passed muster in various studies: a northern New Englandline; an Empire line running east to west in New York State;a Keystone corridor in Pennsylvania connecting Philadelphiaand Pittsburgh; a Chicago hub network; a southeast networkconnecting Washington, D.C., to Florida and the Gul Coast;a Gul Coast line extending rom eastern exas to westernAlabama; a corridor in central and southern Florida; a exas-to-Oklahoma line; a Portland-Seattle-Vancouver corridor inthe Northwest; and a Caliornia corridor rom San Franciscoto Los Angeles that was part o the voter-approved nancinginitiative last all.

    Imagine whisking through towns at speeds more than 100

    miles per hour, walking only a ew steps to public transpor-tation, and ending up just blocks rom your destination,President Obama said. It is happening right now; its beenhappening or decades. Te problem is, its been happeningelsewhere, not here. He noted that Japan, France and Spainall were ahead o us. But, he added: Teres no reason whywe cant do this.

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    C

    omplete streets policies set out to make road projectsmeet the needs o everyone using the road, not just

    motorists, but also people walking, riding bicycles, or catch-ing the bus. Across the country, a growing number o commu-nities are using this deceptively simple tool to change the waythey approach transportation. Adopted as a state law, localordinance, or even as a city council resolution, these policiesset a new vision or transportation investments. More than 85states, regions, and cities have adopted such policies, includ-ing new state laws passed in Caliornia and Illinois and policyresolutions or ordinances in major cities including St. Paul,Miami, Chicago, Seattle, Sacramento, and Charlotte. And thepace is accelerating.

    Complete Streets across the CountryWhen tiny University Place outside o acoma, Washington,incorporated in the mid-1990s, one o its rst priorities wasadding sidewalks to the ormer county roads. Te town start-ed by cajoling the gas company to split costs or transorminggravel shoulders into sidewalks during gas line replacements.

    Tey looked or opportunities to install bike lanes during re-paving projects and to put in pads to provide space or countybus shelters. Ten they started making more radical changes.

    People rom outside University Place comment about howmuch they love driving down Bridgeport Way, says SteveSugg, deputy city manager, describing one o the rst streetsto get a ull complete streets treatment. Tere is a sense ocalm. Te redesigned road eatures a landscaped median,new pedestrian crossings, bicycle lanes, a multi-use path and

    improved sidewalks. Sugg notes that when rader Joes waslooking or a place to locate a store in the acoma region, theypicked a site on Bridgeport Way, perhaps because o the ex-tensive street improvements.

    University Place has added 23 miles o sidewalks to its streetssince incorporation and has installed several modern round-abouts, the rst in Washington State. Now the town is work-ing with citizens on planning a own Center to realize broad-er smart growth principles.

    In Jeerson City, Missouri, in March 2009, disability advo-cates, trail-building organizations, bicycle advocates, healthgroups, and even a REALOR spoke at a state House hear-ing or wrote letters in support o a complete streets bill. InHawaii, bicycle advocates and the state AARP chapter madecommon cause this spring to push or a similar bill with aparticularly Hawaiian twisttheyve linked it to a Hawaiiantradition known as the splintered paddlea native myththat asserts everyones right to travel saely. State legislators inConnecticut, exas, West Virginia, and Maine have also in-troduced complete streets bills.

    Complete Streets on Capitol Hill

    Complete streets policies are also getting ederal attention.Sen. om Harkin and Rep. Doris Matsui have introduced the

    Complete Streets Act o 2009 into the U.S. House and Senate(S.584, H.R.1443). We need to ensure streets, intersections,and trails are designed to make them easier to use and maxi-mize their saety, said Sen. Harkin upon introduction o thebill. Tis legislation will encourage Americans to be moreactive, while also providing more travel options and cuttingdown on trac congestion.

    Complete Streets Addressthe Needs of All Travelers

    Complete streets refers to the concept that

    roads should meet everyones needs, not just

    motorists but also walkers, bicycle riders,

    and bus riders. A growing number of com-

    munities are using complete streets policies

    to reduce accidents, get people more physi-

    cally active, and promote walkable neighbor-

    hoods, which have held their property val-

    ues during the current downturn. Complete

    streets policies will increase in importance as

    a greater proportion of Americans reach old

    age and are forced to give up driving.

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    Te bill would require states and metropolitan planning orga-nizations to adopt complete streets policies to be applied to ed-erally unded road projects. It is expected to become part o theupcoming authorization o the ederal transportation bill.

    Demographic Changes

    Complete streets policies are gaining all this ground or un-damental reasons o demographics and saety. By 2025, nearlyone in ve Americans will be over the age o 65, and they willmake up one-quarter o the driving population. As they age,many will ace disabilities that will orce them to give up driv-ing during the last decade o their lives. Yet they may be reluc-tant to give up the keys when they ace neighborhoods withinrequent and inadequate crosswalks, no sidewalks, poorlydesigned bus stops, and inadequate speed control.

    A recent AARP poll ound that 47 percent o older adults saidthey did not eel sae crossing a major street near their home.In another large survey, AARP ound that nearly two-thirds

    o the more than 1,000 planners and engineers surveyed havenot yet begun considering the needs o older users in theirmultimodal planning.

    AARP recently issued a report based on this research, Com-plete Streets or an Aging America, that makes three broadrecommendations or transorming road design to bettercope with an aging population, summarized as Slow Down,Make it Easy, and Enjoy the View. It recommends reengi-neering streets or slower travel speeds, making intersectionsless complex while providing lower-speed routes, and reduc-ing visual clutter.

    It is no coincidence that the recent push or complete streetscomes against a backdrop o a decline in the amount o drivingand a rise in the use o public transportation, even as more peo-ple take part in Bike to Work Day activities every year.

    Safer and Healthier Streets

    Research is starting to show that a complete streets approachalso leads to ewer crashes and increased physical activity. Arecently released study o a new pedestrian pathway along amajor bridge in Charleston, South Carolina, ound that two-thirds o the users o the bridge said the new acility had ledthem to get more exercise.

    Promoting physical activity as a part o daily lie has been atthe center o a strong move in Minnesota toward completestreets, with three jurisdictions adopting policies in the rstmonths o 2009: Hennepin County (Minneapolis), Saint Paul,and Rochester. Te insurer Blue Cross/Blue Shield (BCBS)

    o Minnesota has been supporting active living initiativesacross the state, based on research that shows that people wholive in walkable environments, or who regularly take publictransportation, are more likely to be active enough to wardo chronic disease. BCBS sponsored three Complete StreetsWorkshops in December to help planners and engineers un-

    derstand how to broaden their scope when planning roadprojects to take into account the needs o pedestrians, bicy-clists, and public transportation users.

    Higher Property Values

    For some supporters, the economic impact is a primary rea-son to support a complete streets approach.

    Chris Leinberger, author o Te Option o Urbanism: Invest-ing in a New American Dream, watched the recent down-ward trajectory o home prices and notes that most o the divetook place in places built or drivable suburbanism, wherethe road network eatures high speed arterials designed only

    or cars. Places that are walkable urban neighborhoods haveheld their value over the last two years, says Leinberger.

    An indicator o the potential importance o a multimodaltransportation network to property values can be ound inthe real estate tool Walk Score. Walk Score uses the magico Google Maps to give every address in the nation a scorerom 0 to 100, based on the number and variety o destina-tions within walking distance. Front Seat, the rm behindWalk Score, has commissioned research to determine i ahigher Walk Score correlates to a higher home value. Te pre-liminary results show that each additional point on the WalkScore scale correlates with increased housing values on the

    order o $1,000 or more, depending on the regional market.wo major real estate Web sites, Zip Realty and Zillow, noweature Walk Score on property listings.

    Walk Score is based on the crow-fy distance to nearby desti-nations, so it doesnt take into account the disconnected streetnetwork common in many newer developments, or the lacko sidewalks and crosswalks that can make walking unpleas-ant, impractical, or dangerous.

    But connected, complete streets are a prerequisite to truewalkable urbanism, according to Leinberger. I you have aneight-lane arterial without complete streets inrastructure,

    you will never see high-density walkable urbanism take placealong that corridor. Complete streets will be a preconditionbeore you can get walkable urban development that will helpmeet the pent-up demand or this type o neighborhood.

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