The Role of Transit in Support of High Growth Business Clusters in the U.S

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The Role of Transit in Support of High Growth Business Clusters in the U.S The Role of Transit in Support of High Growth Business Clusters in the U.S. The Role of Transit in Support of High Growth Business Clusters in the U.S. Acknowledgement This study was conducted for the American Public Transportation Association (APTA) by the Economic Development Research Group, Inc. (EDRG). Darnell Grisby, Director of Policy Development and Research, APTA, provided overall direction of the study. Principal Authors: Glen Weisbrod, EDRG; Derek Cuter, EDRG; Chandler Duncan, EDRG Contributions: Arlee Reno, Cambridge Systematics Acknowledged Individuals: Michael Melaniphy, President and CEO, APTA; Art Guzzetti, Vice President-Policy, APTA; Carolyn Flowers, Chair, Investment Requirements Working Group of the APTA Reauthorization Task Force i American Public Transportation Association Table of Contents Acknowledgement...................................................................................................................i Table of Contents....................................................................................................................ii Executive Summary...............................................................................................................iv 1 Introduction...........................................................................................................................1 1.1 Objective.....................................................................................................................1 1.2 Approach....................................................................................................................1 1.3 Report Organization.................................................................................................3 2 Job Access for High Growth Industries.............................................................................5 2.1 Concept of Agglomeration Economics..................................................................5 2.2 The Changing Economy............................................................................................6 2.3 Industry Clustering Patterns.................................................................................10 2.4 Transportation Needs of Business Clusters.......................................................16 2.5 Public Transportation Support for Business Clusters.......................................21 2.6 National Implications............................................................................................23 3 Atlanta: “Medline” Cluster................................................................................................29 3.1 Overview of the Cluster..........................................................................................29 3.2 Transportation Challenges & Outlook.................................................................31 3.3 Role of Transit in Sustaining the Cluster.............................................................35 4 Boston: Kendall Square Cluster.......................................................................................37 4.1 Overview of the Cluster..........................................................................................37 4.2 Transportation Challenges & Outlook.................................................................39 4.3 Role of Transit in Sustaining the Cluster.............................................................42 5 Route 128 Technology Cluster........................................................................................43 5.1 Overview of the Cluster..........................................................................................43 5.2 Transportation Challenges & Outlook.................................................................45 5.3 Role of Transit in Sustaining the Cluster.............................................................48 ii The Role of Transit in Support of High Growth Business Clusters in the U.S. 6 San Francisco: Mid-Town & South of Market Cluster...................................................49 6.1 Overview of the Cluster..........................................................................................49 6.2 Transportation Challenges & Outlook.................................................................51 6.3 Role of Transit in Sustaining the Cluster.............................................................54 7 California: Silicon Valley Cluster......................................................................................55 7.1 Overview of the Cluster..........................................................................................55 7.2 Transportation Challenges & Outlook..................................................................57 7.3 Role of Transit in Sustaining the Cluster.............................................................61 8 Deerfield, IL: Business Cluster.........................................................................................63 8.1 Overview of the Cluster..........................................................................................63 8.2 Transportation Challenges & Outlook.................................................................65 8.3 Role of Transit in Sustaining the Cluster.............................................................69 9 Denver Technology Center Cluster..................................................................................71 9.1 Overview of the Cluster..........................................................................................71 9.2 Transportation Challenges & Outlook.................................................................72 9.3 Role of Transit in Sustaining the Cluster.............................................................76 10 Seattle: South Lake Union Cluster................................................................................77 10.1 Overview of the Cluster........................................................................................77 10.2 Transportation Challenges & Outlook...............................................................79 10.3 Role of Transit in Sustaining the Cluster..........................................................82 11 Conclusions......................................................................................................................83 iii American Public Transportation Association Executive Summary The Role of Transit in Support of High The study draws on eight high-growth knowledge- oriented business clusters and their transportation Growth Business Clusters in the U.S. conditions in six US cities to provide an estimate of the total national income and employment consequences of A white paper prepared by Economic Development road accessibility challenges—challenges that could be Research Group, Inc. for the American Public addressed through investment in public transportation. Transportation Association, December 2013. A cross-section of clusters was selected to represent a This study addresses issues of business productivity, diversity of key characteristics: market access and transit service for high growth business clusters in the United States. Metropolitan Development Existing Transit Service Transit Cluster Industry Market Type Anchors Setting Type Improvement Life Sciences/Biotech Life Suburban Office Park Suburban Office Software/Computer Research University Research Build Reuse/Infill/ Internet/Gaming Private Shuttles Private Other Research Other Research Fixed Guideway Fixed Commuter Rail Commuter LRT/Streetcar Social Media/ Case Study Area Densification Heavy Rail/ Heavy Urban Care Urban Institutions (all Types) Suburban Emerging Telecom Mature Bus Bus Kendall Square ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Route 128 ■ ■ ■ ■ ■ ■ ■ Atlanta Medline ■ ■ ■ ■ ■ ■ ■ ■ ■ Deerfield IL ■ ■ ■ ■ ■ ■ ■ Denver Tech Center ■ ■ ■ ■ ■ ■ ■ ■ ■ Silicon Valley ■■ ■ ■■■■ ■ ■■ ■ SoMo/ MidMarket SF ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ South Lake Union ■ ■ ■■ ■■ ■■■ ■ ■ iv The Role of Transit in Support of High Growth Business Clusters in the U.S. Key findings from these cases and the accompanying national-level analysis are: • All of the examined clusters are rich with examples of firms choosing locations in proximity to other firms and actively seeking ways to get people to these places. • There are very real transportation access constraints looming that will affect the growth of high tech business clusters and the competitiveness of US firms. Those constraints apply (to some extent) across all such business clusters. • Efforts are currently being spearheaded by the private sector to develop transit to sustain the cluster location and ensure workforce accessibility. • Between 379,000 and 480,000 jobs could potentially affected by the year 2040, depending on steps taken to address the transportation capacity constraint. • Transit access to clusters could support approximately 104,000 of these jobs, along with their associated $13.6 Billion in annual business output, $5.7 Billion in wage income and nearly $8.6 Billion in GDP. • Given constraints on continued roadway system expansion (detailed in the case studies), there is a solid case for expanding the future role of public transportation to support growth of high tech business clusters. v American Public Transportation Association Introduction 1 1.1 Objective There has been significant attention in the transportation research field regarding the extent to which transit investment supports “agglomerations economies” – the ability of business firms to realize productivity gains because
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