TOD Story 9/2/03 11:55 AM Page 1

Washington, D.C., Monday, August 18, 2003 Volume 61, No. 33

The Weekly Newspaper of the Public Transportation Industry Transit Agencies Seeing Increased Interest in Transit-Oriented and Joint Development By Federico Cura potential in both large and small communities Reporter that are served by either bus or rail transit, adding that a successful TOD will reinforce ransit-oriented development both the community and the transit system. and transit-adjacent develop- Another term, joint development, refers ment—terms referring to a to TOD projects located on transit agency form of urban planning that property, sometimes replacing surface park- connects development with and-ride lots. It implies a partnership between locations near public trans- a transit agency and a private-sector entity portationT properties—is growing in popularity such as a developer. as transit systems take an increasingly active role in the process along with developers and Increased Ridership and local governments. Other Benefits Over the past two years, public transit U.S. Rep. Earl Blumenauer (D-Ore.), a long- agencies have been stepping up efforts to cap- time supporter of “smart growth” planning, italize on underused agency properties that pointed to the numerous U.S. transit agencies can be used for TOD in an effort to boost rid- taking a more active role in supporting TOD. ership, revenues, or for other benefits. In an “The resulting increased ridership and rev-

era of tightening budgets, the agencies are enue has benefited these transit agencies, PHOTO BY ROBERT HANSEN PHOTOGRAPHY EMSIEK & PARTNERS COURTESY OF MCLARAND VASQUEZ looking for greater non-farebox revenues, engaged developers and others in the private The Promenade at Rio Vista development in San Diego is a mixed-use project at San Diego Trolley’s which may include TOD. sector, and—perhaps most importantly—sig- Rio Vista Station. TOD often incorporates some sort of nificantly improved the quality of life of the mixed-use development, which may include surrounding communities,” noted Blume- between enhanced property values and loca- outlined several market conditions intensify- high-density residential space and shops; com- nauer, who also is the founder and board pres- tion near Dallas Area Rapid Transit light rail ing over the past few years—such as demo- mercial buildings; entertainment facilities; ident of the annual Rail~Volution conference stations. The study calculated that office graphics—that he sees as making TOD, tran- offices; and public open spaces. The proximity that promotes building livable communities properties located near suburban DART rail sit, and to a transit station connects the development near transit. stations increased in value 53 percent above urban lifestyles more attractive to home to other places, and reduces the dependency While some transit agencies have turned comparable properties not served by light rail, renters, home buyers, and developers. on automobiles. joint development into a significant source of and values of residential properties near the Transit villages typically create pedestrian- non-farebox revenue, others have found it stations rose 39 percent compared with a Removing the Obstacles friendly environments that appear open and helps them gain riders, as well as other benefits group of control properties not served by rail. However, smart growth advocates and transit welcoming to the surrounding community: such as the possibility to expand their systems In a study of Santa Clara County property officials maintain that TOD faces a number neighbors may walk to a nearby station, pick and reach more potential riders or markets. values in 1998 and 1999, a University of Cal- of obstacles and developer disincentives in up a cup of coffee and a newspaper on the way Arrington cited a 2002 Parsons Brincker- ifornia at Berkeley researcher found rents for addition to occasional community opposi- to work, and shop on their way home. hoff report for the state of California showing commercial properties within walking dis- tion. While demographers estimate that as These developments are designed to bring that TOD can yield 20 to 40 percent higher tance of Santa Clara Valley Transportation much as 30 percent of the demand for hous- potential transit riders closer to transit facili- ridership at an individual transit station Authority light rail stations were 23 percent ing is for denser, walkable, mixed-use com- ties, leading to increased ridership through a through both commuter and non-work trips, higher than at non-transit-oriented commer- munities, less than 2 percent of new housing location at, or within one-quarter mile to not to mention increasing overall regional rid- cial buildings. starts are in this category, said Hank Dittmar, one-half mile from, a transit stop, said G.B. ership by up to 5 percent. Arrington quoted the Urban Land Insti- president of a livable communities advocacy Arrington, senior professional associate for Some local governments have seen the tute/PricewaterhouseCoopers publication organization called Reconnecting America. transit-oriented development with Parsons economic development triggered by TOD, Emerging Trends in Real Estate, which empha- Reconnecting America recently created Brinckerhoff Quade & Douglas in Portland, and also want to attract these typically urban- sized TOD market fundamentals in its 2002 the Center for Transit Oriented Develop- Ore., and chair of APTA’s Land Use and De- styled, high-density, mixed-use developments. market review, in his recent paper titled Light ment to tackle the many policy, zoning, and velopment Subcommittee. Over the past two decades, according to Ar- Rail and the American City: The State-of-the- planning obstacles facing developers and Arrington noted that different transporta- rington, a growing number of communities Practice for TOD: “Markets served with mass- transit agencies who want to create a TOD or tion consultants define TOD in slightly differ- have married light rail with TOD as part of an transportation alternatives and attractive joint development project. Moreover, ent ways, such as mandating that the transit integrated strategy to revitalize urban close-in neighborhoods should be positioned Dittmar noted, building high-density devel- stop be part of a fixed guideway system such as areas. to sustain better long-term prospects as peo- opment requires a developer with unique ex- rail transit or busway-dependent Bus Rapid For example, a University of North Texas ple strive to make their lives more conve- pertise, which tends to be rare. Transit. He said the TOD process has broad study released in January shows a direct link nient.” In a telephone interview, Arrington TOD may provide the answer to the chal- TOD Story 9/2/03 11:55 AM Page 2

ULI Releases ‘Ten Principles’ for Transit- Oriented Development

he Urban Land Institute transit was most often an afterthought in recently published a booklet development,” the report states. T titled Ten Principles for Successful The report lists the 10 principles as Development Around Transit, using re- follows: search done in cooperation with mem- • Make It Better with a Vision; A major joint development project is taking shape in Washington’s Chinatown area at WMATA’s bers of APTA’s Land Use and Develop- • Apply the Power of Partnerships; Gallery Place/Chinatown Metrorail Station. The Metrorail pylon indicating the entrance to the ment Subcommittee. • Think Development When Think- subway station is located to the right of the Chinatown Arch. The joint development project is also The report by Robert Dunphy, Debo- ing About Transit; adjacent to the MCI Center sports/entertainment arena, shown in background at right. rah Myerson, and Michael Pawlukiewicz • Get the Parking Right; compares the pairing of housing and re- • Build a Place, Not a Project; lenge of meeting demand for more com- sisted assets for joint development if cer- tail with stations for light rail, other forms • Make Retail Development Market pact and convenient housing and tain conditions are met as advantageous of rail transit, and Bus Rapid Transit that Driven, Not Transit Driven; lifestyle, according to Dittmar. “Virtually for TOD. The St. Louis transit system has been seen since the late 1990s with • Mix Uses, But Not Necessarily in every major metropolitan area is plan- wants to take advantage of this favorable the streetcar-stop communities that were the Same Place; ning, designing, or constructing a new federal policy change, she said, and will typical of urban areas in the 1920s. “By • Make Buses a Great Idea; transit project at this time,” he said, probably discuss the possibility of allow- the close of the twentieth century, how- • Encourage Every Price Point to adding that new transit stations offer the ing Metro to purchase land around sta- ever, the automobile had become the Live Around Transit; and “opportunity to create new anchors for tions to generate either an eventual one- dominant means of travel in urban cen- • Engage Corporate Attention. growth and development that is oriented time financial benefits or a constant ters, cities with extensive transit net- Copies of the report are available at to transit service.” revenue stream to supplement the works were in decline, and proximity to the ULI web site, . Other benefits of TOD listed by tran- agency’s budget. She explained that sit officials include enhanced livability Metro was limited in its joint develop- of surrounding communities; improved ment opportunities because the system air quality that contributes to residents’ purchased only enough land to build the use plan is to transform unfocused devel- velopment from Houston’s developers, health and overall quality of life; and a light rail stations themselves. opment patterns in corridors and wedges banks, retailers, and others. He said he way to begin curbing suburban sprawl Even with these limitations, the St. into compact, mixed-use, pedestrian- also is looking to attach development to and vehicle miles traveled, and ulti- Louis region has seen substantial TOD, friendly development along corridors bus facilities such as major stops and mately meeting stricter ozone standards. redevelopment, and real estate invest- and in station areas. park-and-ride lots. Federal policies also are contributing ments near its MetroLink light rail sta- CATS Chief Executive Officer Ron In Denver, the Regional Transporta- to TOD’s popularity, according to Ar- tions since the system opened in 1993, Tober noted that developers and busi- tion District is approaching developers, rington and other transit experts. The generating approximately $1 billion nesses along the South Corridor Light local governments, and owners of land Federal Transit Administration increas- within Metro’s service area. Rail line already have invested nearly near the future sites of 13 stations of a ingly encourages New Starts project ap- Portland’s Tri-County Metropolitan $400 million in anticipation of the line’s light rail line currently under construc- plicants to pursue joint development Transportation District of Oregon re- opening in 2006. tion, said TOD Specialist Chris Coble. and TOD projects; with the competition ported more than $3 billion in real es- The long-term success of public tran- RTD representatives already have re- for federal funding for high-capacity tate and overall economic development sit in the Charlotte region is closely ceived TOD proposals for five of the sta- transit projects, particularly for light taking place within walking distance of linked to creating dynamic, mixed-use tions, and are working with developers rail, at an all-time high, Arrington said, its MAX light rail stations since the development at stations, Tober said, to better accommodate the projects by “land use can make a difference in which agency began planning its 38-mile sys- adding. “This will require a new level of adapting the line’s alignment, and sta- projects are recommended for federal tem in late 1970s, according to cooperation and coordination in both tion and parking design and location, funding.” spokesperson Mary Fetsch. government and private sectors.” Incen- among other things. tives, partnerships, and promoting The new 19-mile RTD light rail line Changing the Rules Help from Local Government demonstration projects are just some of and an associated highway expansion Tina Votaw, vice president of economic The Charlotte Area Transit System in the ideas CATS is proposing to make project are part of the Transportation development at Metro in St. Louis, said Charlotte, N.C., will be able to foster in- this happen. Expansion Project, also known as T- the real estate-financing system was tai- creased TOD near its future light rail and REX. lored toward the construction of tradi- commuter rail stations and other facilities Building Local Efforts The city of Greenwood Village, site tional housing in low-density or isolated thanks to a a crucial local government In Houston, the Metropolitan Transit of a station on the T-REX line, has ex- communities that tend to be discon- endorsement. Authority of Harris County hopes to pressed an interest in high-density de- nected from public transportation. In May, the Charlotte City Council, generate up to $1 billion in economic velopment around the station, Coble Moreover, she said, local zoning codes Mecklenburg Board of County Commis- development along the path of its said. The city—located in an area south require a developer pursuing a TOD to sioners, and the Metropolitan Transit METRORail light rail system, which en- of Denver characterized by shopping provide as many parking spaces as a de- Commission adopted the CATS Transit ters service Jan. 1, 2004. plazas, industrial uses, and highways— veloper pursuing a greenfield-type devel- Station Area Joint Development Policy Using DART’s light rail system as a paid $7 million to the T-REX construc- opment: “It makes it exceedingly diffi- Guidelines. These guidelines and a set of model, Houston Metro began seeking tion authority, jointly run by future cult for a TOD project to compete similarly named CATS principles provide TOD opportunities and hired Steve owners RTD and Colorado DOT, to lo- against projects in other areas where a framework for local governments to en- Bonczek as a joint development special- cate a planned park-and-ride lot above land values are lower.” courage TOD at transit stations, and will ist. In a city where strip centers, big-box an adjacent highway maintenance facil- Votaw and other transit professionals ensure consistency with the region’s long- stores, and vast parking lots still pre- ity to preserve more land so the city can also pointed to a 1997 change in FTA term urban and transportation plans. dominate, Bonczek said he has noticed create a village center around the sta- policy that allows the use of federally as- The primary goal of Charlotte’s land increasing interest in TOD and joint de- tion that will include cultural and retail

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attractions. estimated to grow to $15 million by FY In keeping with a 2006. Because of projections for major growth plan or “vision” re- population growth projections in the re- leased by the city of gion, WMATA decided some years ago Toronto last year, develop- to make TOD one of its top four policy ers worked with the priorities for capital projects. Toronto Transit Commis- Kent noted a connection between the sion to build a large condo- type of living provided through many minium complex near the TOD projects and the recent introduc- site of a future TTC station, tion of Fannie Mae’s Smart Commute according to TTC Program in Washington, which allows a spokesperson Marilyn mortgage applicant to qualify for a larger Bolton. Construction of mortgage amount to purchase a property both the station and the near a transit station or major stop. condos was completed at WMATA has pledged to give free transit the same time. passes for those acquiring these mort- In Boston, the Massa- gages. chusetts Bay Transporta- Alberto Parjus, chief of management ser- tion Authority recently vices for the Dade County Office of Public agreed to a land exchange, Transportation Management in part of the largest TOD Miami-Dade County, said he expects the in- project on MBTA property Orenco Station, along TriMet’s Westside MAX Blue Line, is a 200-acre transit-oriented development featuring retail, troduction of the Smart Commute program in in its history. The project commercial, and housing. The buildings shown here in Hillsboro feature mixed-use retail and housing. The Orenco Sta- September may trigger more interest in TOD known as the North Point tion Community was voted the Best Planned Community by the National Association of Home Builders in 1999. from developers. will help the agency relo- Parjus also oversees the county’s Joint De- cate its Green Line, locate a velopment Program, which he said has a long new intermodal station along history of success in fostering TOD around the new alignment, and eventually seek a vi- high-density, mixed-use project that the de- account for 10 percent of current subway Miami-Dade Transit’s rail stations, and is cur- able extension of the line, said MBTA Gen- veloper plans to build and fully integrate with ridership in the nation’s capital, said rently gathering public input to have TOD di- eral Manager Michael H. Mulhern. the new station. Moreover, MBTA has sev- Denton Kent, director of the Office of rected around BRT stations in its South Dade The relocation of the line, Mulhern ex- eral projects underway to sell “air rights” over Property Development and Management Busway’s extension to Florida City. The city of plained, not only will include a new station MBTA right-of-way for rail and BRT, which at the Washington Metropolitan Area Homestead, Fla., also is planning its own ur- serving Cambridge and new tracks, but also is also will help the agency increase its non-fare- Transit Authority. WMATA expects to ban transit village around a future busway expected to increase the line’s ridership by at- box revenues. earn $12 million from joint development station serving its community. tracting residents to live, shop, and work in a Joint development and TOD projects projects in Fiscal Year 2004, an amount

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