Yet another example of light rail spurring economic development comes from Pittsburgh, where the Port of Allegheny County has approved $12.5 million in public subsidies for a $42.5 million transit-oriented development. Since the development will include 152 apartments and 15,000 square feet of retail space, that’s a subsidy of more than $82,000 per apartment. The subsidies will also help pay for a 541-space parking garage.
Don’t be impressed by 15,000 square feet of retail space: that’s about the size of a new Trader Joe’s. The average Trader Joe’s is about 12,000 square feet, but the newer ones are bigger. Of course, if they actually attract a Trader Joe’s, they might be able to fill the apartments, but the fact that Pittsburgh has one of the most affordable housing markets in the country probably means there is little demand for stack-and-pack living.
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So once again it is proven that light rail doesn’t stimulate economic development; it merely stimulates subsidies for economic development. Pittsburgh officials complain that “transit-oriented development is very difficult in Pennsylvania” because “there is no dedicated funding source” that can be used to subsidize it. So why are they bothering? Apparently just because they want to follow the latest fad.
