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, <www.uli.org>. 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.