At the New Starts hearing last week, the Antiplanner testified that the federal government has given transit agencies and local politicians incentives to waste money on expensive transit projects that increase congestion, use more energy than the cars they take off the road, and harm transit riders. Members of the House Highways and Transit Subcommittee then proceeded to prove my point by asking FTA Administrator Peter Rogoff a long series of questions that were all some variation of, “When are you going to send more money to my district?”
Los Angeles-area Representative Grace Napolitano did ask one interesting question: if rail transit does so much to increase property values, why aren’t transit agencies paying for rail lines by imposing some sort of tax, such as tax-increment financing, on those enhanced values? It wasn’t that she disbelieved that rail transit enhanced property values; she just thought that cities could build even more rail lines if they took advantage of this great opportunity.
The Antiplanner didn’t get a chance to respond during the hearing. But in follow-up comments, I pointed out that the enhanced property values are entirely illusory. First, rail transit doesn’t lead to regional economic development; all it might do is shuffle that development to different places around the region. Thus, if property values along the rail line do rise, that means values somewhere else in the city or region are depressed.
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Second, cities are already using tax-increment financing to the hilt to subsidize all the development that is supposedly generated by rail transit. One witness, Gregory Hughes, who chairs the board of the Utah Transit Authority, answered Napolitano that they used TIF to building parking garages along Salt Lake City’s light-rail line–not to use as park-and-ride stations but to support the development that was supposedly stimulated by the rail line. Excuse me, but doesn’t the need to construct a parking garage put the lie to the term, “transit-oriented”?
Another witness, St. Paul Mayor Chris Coleman, claimed that the Twin Cities Central Corridor low-capacity rail line has led to $1.2 billion in new development even before the rail line opened. In fact, the region used tax-increment financing, low-income housing tax credits, sales tax revitalization (the sales tax version of TIF), and a variety of other subsidies to generate that development.
So there’s not likely to be much “value-added” money left over after using it all to subsidize the development that was supposedly stimulated by the rail line. As I’ve previously stated, new transportation infrastructure generates economic growth when the transportation is faster, more convenient, or less expensive than previous forms of transport. Rail transit is none of these.
the anti planners said
“all it might do is shuffle that development to different places around the region. ”
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In Portland along the Airport Max line, when “Cascade Station” was changed from a TOD to big box stores and big parking lots. One of the anchor tenets is Best Buy. Best Buy moved several years ago to Cascade Station from their former site. The formers site was relatively new, about a mile or two on the other side of I-205. The former site is still vacant.
We often see Light rail and streetcar tax breaks, enticing businesses to move from their former site, leaving vacate building to rent, in the old site.
When it comes to cul-de-sacs, everybody is so worried about connectivity. But perhaps the worst hindrance to connectivity in a city is a rail line, but suddenly nobody seems to care about that.
Also, while land near a station might increase in value, the land between stations next to a rail line take a huge plunge in value, especially the lots bisected into odd shapes.
subsidies aside, what was the cost of the Central Corridor?
http://www.twincities.com/stpaul/ci_24350879/st-paul-mayoral-race-coleman-has-backing-unions
The Central Corridor has drawn interest from commercial and residential real estate developers along the route but also has alienated some small business owners who suffered during four years of construction.
“We can’t afford to lose any jobs in the city of St. Paul, and that’s why it’s so important to listen to small businesses,” said Holden, noting that the light-rail line has eliminated hundreds of parking spots along University Avenue.
From looking around, best I can tell is that Mayor Coleman has not shared with the public his source for that $1.7B claim nor do we know how it was arrived at. The question is, what exactly is being counted? Is he including in that figure the new baseball stadium STPL is building in Lowertown? Does it include construction projects at the UofM which while along the corridor, are not occurring because of the build of the line? How many of the projects are like the Chittenden & Eastman building which are located on the far west end of the STPL / far east side of MPLS around MN280 and University? This area has been gentrifying since Clinton was in office. I lived near there back then. How did they account for all the projects in that area that occurred before the Green Line ( aka Central Corridor ) ? It would seem they’re assuming the construction is 100% due to the central line.
Who wants to live near this?:
The gentrification of North and Northeast Portland, the number of high-density, low-income apartments in Gresham and the city’s accessibility to the MAX light-rail system have drawn gang members east into Gresham.
Teen flashes gun at 2 MAX riders in Gresham
Police investigating possible shooting near Gresham MAX stop
Robbers who spotted victims on Gresham MAX train – and broke jaw – get some prison
Teenage victim in shooting at MAX station dies
Teen arrested in double shooting near MAX stop
I’m sure property values near MAX lines are just SOARING!
First, rail transit doesn’t lead to regional economic development;
We already pointed out this is an “error” of scale.
Thus, if property values along the rail line do rise, that means values somewhere else in the city or region are depressed.
There is no evidence to support this assertion.
However, the TIF question is no longer anything but a batting practice fastball to hit. Everyone knows politicians use it to look good, so one can’t just stand there and pretend something was hit out of the park on a pitcher’s pitch . Entire books have been written on how corporations dupe politicians into giving them tax breaks.
DS
Dan should move from Aurora to Gresham so he can ride light rail to and from work.
Politicians also know that if they give out tax breaks or taxpayers money, it often comes back as campaign contributions or good high paying jobs after they retire from politics.
A) That may have been true historically, but modern rail lines are built to be much quieter and integrate well with their surroundings.
B) Highways are about 100 times worse in terms of dissecting neighborhoods and destroying value.
“Highways are about 100 times worse”
Really? About 100 times worse? That doesn’t sound made up at all.
In terms of “destroying value” (and non-biased language would be “affecting value”), according to a CalTrans publication that examines the literature, ” there was no clear consensus on the question of freeway effects on residential property values in the studies reviewed”. To cherry pick one of the studies examined, an older study from WA state, “found that the improved access to residential areas provided by highway construction resulted in property appreciation rates 15% to 17% greater than those of comparable properties lacking such access advantage.” In other places, close proximity to freeways may negatively affect value: “A majority of the studies surveyed found that price appreciation for properties abutting the freeway, or within approximately 500 feet (about 150 meters) of it, lagged behind that of properties in either the secondary impact or control zone.”
Methodologies vary widely as do results, which are often location specific.
No mention of “about 100 times worse” though.
Dan should move from Aurora to Gresham so he can ride light rail to and from work.
I was on the light rail yesterday for work as a matter of fact.
DS
A) That may have been true historically, but modern rail lines are built to be much quieter and integrate well with their surroundings.
What? I can’t hear you!
B) Highways are about 100 times worse in terms of dissecting neighborhoods and destroying value.
That’s not what the actual evidence says. See Frank’s post above or check out this link for the condensed version.