Transit-Oriented Development Implementation Strategy Assistance
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Transit-Oriented Development Implementation Strategy Assistance January 2013 Prepared by and January 15, 2013 Jared Lombard, AICP Principal Planner, Land Use Division Atlanta Regional Commission 40 Cortland Street NE Atlanta, GA 30303 Re: Transit Oriented Development Implementation Strategy Assistance Dear Jared: On behalf of Bleakly Advisory Group, Inc. and our sub-consultant, Tunnell Spangler & Walsh, Co., we are pleased to present the final report for the Transit Oriented Development Implementation Strategy Assistance project under the direction of the Atlanta Regional Commission. This report represents the culmination of a six month research and analytic process on the opportunity for additional Transit Oriented Development (TOD) in an around the existing network of 37 MARTA heavy rail stations in the Atlanta region. Our research was organized in series of five key tasks; Task 1: An Analysis of TOD Financing and Incentive Options looked at how TOD projects are being financed and incentivized in the Atlanta region and around the nation for models which could guide future TOD development along the MARTA network. Task 2: A Preliminary TOD Suitability Assessment involved taking a preliminary look at a wide range of demographic, economic and real estate market factors within a half mile of the MARTA stations to assess their current market conditions and suitability for future TOD development. Task 3: A TOD Opportunity Analysis of Ten Stations examined in greater detail the specific opportunities for future TOD development in a representative sample of ten MARTA station areas drawn from the analysis completed in Task 2. In this task sites suitable for TOD development, market characteristics, local land use and incentive policies and characteristics of the station area environment in terms of its suitability to support future TOD were evaluated. A financial pro forma of a potential catalytic project in each area was analyzed and recommendations of next steps to prepare the station areas for future TOD activity were detailed. Task 4: Development of a Form-Based Code for A Sample Station Area provides of prototype of a form-based code that could support TOD development in the area around the Doraville MARTA station and is presented under a separate cover. Transit Oriented Development Implementation Strategy Assistance Page 2 Task 5: Recommendations for Implementation presents the final conclusions regarding the potential for additional TOD development in the ten station areas analyzed and broader lessons for the creation of TOD in the station areas and system wide. The report that follows presents the findings from each of these research tasks and provides an analytic framework for considering the opportunities to see greater TOD development occurring around the network of 37 MARTA stations over the coming decade. Our research indicates that there is substantial opportunity to build off of the extensive TOD development that has already occurred in our region around the MARTA system. A combination of private investment and public infrastructure investment can help create additional TOD areas around the stations that will help the region achieve an even higher level of walkability, transit connectivity, and utilization of the substantial investment in the MARTA system. Please contact us if you have any questions regarding the content of this report. Very truly yours, Kenneth D. Bleakly Jr. President TOD Implementation Strategy Analysis Contents Task 1 Analysis of TOD Financing and Incentive Options ............................................................ 1 Task 2 Preliminary TOD Suitability Assessment .......................................................................... 7 Task 3 TOD Opportunity Analysis of Ten Stations ..................................................................... 10 Station Area #1: Arts Center ...................................................................................................... 11 Station Area #2: Avondale ......................................................................................................... 19 Station Area #3: Brookhaven / Oglethorpe University .............................................................. 26 Station Area #4: Chamblee ........................................................................................................ 35 Station Area #5: East Lake ......................................................................................................... 42 Station Area #6: Hamilton E. Holmes ........................................................................................ 51 Station Area #7: King Memorial ................................................................................................ 61 Station Area #8: Lakewood / Ft. McPherson ............................................................................. 70 Station Area #9: Lindbergh ........................................................................................................ 76 Station Area #10: Sandy Springs ................................................................................................ 88 Task 4 Form-Based Code for A Sample Station Area ................................................................ 98 Task 5 Recommendations for TOD Implementation ................................................................. 99 Appendix ……………………………………………………………………………………………………………………………104 ARC – TOD Implementation Strategy Analysis Page 1 TASK 1: ANALYSIS OF TOD FINANCING AND INCENTIVE OPTIONS In the first task of the ARC TOD Implementation Strategy Analysis we identified the range of local, state, and federal programs that could be utilized to help support Transit Oriented Development (TOD) in the Atlanta region and looked closely at more than 30 of these programs. Details on each of these programs are included in a matrix following this report. Further, we exhaustively researched other innovative tools used in American cities that help to address the unique set of challenges posed by TOD. Federal Financing Programs Related to TOD While numerous federal funding sources that help in the TOD development process do exist, few will serve as priority catalysts to help jumpstart a project. This particularly rings true in today’s volatile political and economic climate. When announced in 2010 the HUD/DOT/EPA Partnership for Sustainable Communities brought promise as a useful source of TOD facilitator funds, along with millions of dollars in the 2010 and 2011 federal budgets. However, Congress removed the funds for this partnership in the most recent budgeting process, diminishing hopes in this regard. Nevertheless, the federal government continues to provide programs and funds, such as the Transportation Infrastructure Finance and Innovation Act (TIFIA), that could potentially enhance and improve transportation networks, including transit. But will these types of programs and dollars help to trigger TOD in Atlanta? Many experts point to “value capture” as a way to leverage transportation dollars to help TOD flourish. While sources such as TIFIA funds may not help create new TOD opportunities in Atlanta, value capture prospects likely exist near many rail stops here. MARTA, ARC, developers, and others can enhance these prospects by tapping into existing federal financing programs. Numerous federal programs exist for planning and technical assistance in helping to revitalize neighborhoods. Funds from these programs could logically be used to jumpstart TOD in many locales. However, given that the ARC Livable Communities Initiative has, to date, helped provide planning and assistance at 34 MARTA rail stops, funds for these activities may not be as useful in the Atlanta region as they would elsewhere. Thus, we have identified a number of potential federal funding programs that could be useful in incentivizing TOD at MARTA stops. The Community Development Block Grant (CDBG) program also holds promise for TOD-specific projects. CDBG can be used for pre-development, site acquisition, site improvements, property acquisition, property rehabilitation, and first-time homebuyer assistance. CDBG funds can also be used for other purposes, such as the construction of public facilities, public services and economic development activities. At least 70% of CDBG funds must be used for the benefit of low and moderate-income households. Many experts agree that this program could be shaped at the local level to help foster TOD. HUD’s Choice Neighborhoods program was a “winner” in the 2012 budgeting process, nearly doubling the amount of funds that the program received in 2011. Choice Neighborhoods, which builds on the successes of HUD's HOPE VI Program, attempts to link housing improvements with a wider variety of public services including schools, public transit and employment opportunities. The program has provided hundreds of millions of dollars in implementation grants to areas in large cities across the country, including the Atlanta University Center neighborhood. It seems likely that, in working with the Atlanta Housing Authority among others, potential TOD developments at select stations along the MARTA rail routes could also be benefactors of this program. ARC – TOD Implementation Strategy Analysis Page 2 Although the Federal Department of Transportation does not sponsor a grant program specific to transit- oriented development, most Federal Transit Administration funding programs can be used for capital projects that support TOD through the Joint Development