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Communicating the Business Case for
Public Transportation Investment
Cliff Henke
Sr. Analyst, Parsons Brinckerhoff
APA Annual Conference
Los Angeles
April 2012
1
Topics Today
• Overview – the types of Return on Investment (ROI) • Jobs
• Retail sales
• Local economic development
• Supply chain has national effects too
• Case examples • Dallas
• Denver
• Cleveland
• Portland
• Boston
• Answering the critics – recent common arguments
• Resources
Why the Worldwide Growth in these Sectors?
Five Value Propositions
• Vital social service
• Engine for economic growth
• Good for the Environment
• Reduces Oil Dependence
• Key to More Livable Future: --Climate change
--Aging population = driving less (Europe, E. Asia, now USA)
--Population/congestion growth (esp. in the S. America, Middle East, India, parts of USA)
Quadruple bottom line – society, economy, environment, national security
A Catalyst for Economic Growth
• Public transportation creates jobs:
• Every $1 billion invested in public transportation capital and operations creates and supports an average of 36,000 jobs.
• Economic activity:
• Every billion dollars result in roughly $3.6 billion in business sales and…
• Generate nearly $500 million in federal, state, and local tax revenues
• For every $1 invested in public transportation, $4 is generated in economic returns
• Every $1 million in capital investment in public transportation can return up to $3 million in annual business sales alone
A National Business
• Bus and rail projects support
jobs and private companies
throughout the USA
• Public dollars support
national industry—much like
defense
Case Study #1: Light Rail in Dallas
• Proximity to an LRT station “often an important site location factor”
“Rails to Real Estate,” Center for Transit-Oriented Development, March 2011
• $4.26 billion in development projects attributable to presence of a DART Rail station since 1999
• Developers and suburbs now advocate for expansion
Case Study #2: Denver 16th
Street Mall
Opened 1982:
• Urban development project
• 1-mi. exclusive corridor
• Frequent electric shuttle service
• Express bus stations anchor both ends
• Now connected to LRT
Results:
•60,000 riders/weekday
•The real development catalyst in
downtown Denver
•18-hour commercial days
Case Study #3: Cleveland BRT and
Generated Development
$4.3 billion
announced
Health Line Economic Impact
By 2025:
7.9 million sq. ft. in commercial development
5400 + new or renovated residential units
$1.3 billion in capital investments
$62.1 million in annual local taxes
$1.98 million in annual GCRTA sales tax revenues
13,000 new jobs Source: Greater Cleveland RTA
Case Study #4: Portland
THE PEARL DISTRICT
CURRENT VIEW OF SOUTH WATERFRONT DEVELOPMENT
Case Study #5: Boston Silver Line BRT: $1.2 billion around Phase 1
•$250 million in new construction
•$93 million in rehabilitation
•1,731 new or rehab housing units
•900 designated as “affordable”
•128,000 sq. ft. new/renovated retail
Boston Silver Line Phase 2: $700 Million in Development
Not including announced Fan Pier ($3 bil) development
Answering the critics
Comment argument Answer
TOD/smart growth is a UN plot
(Agenda 21)
Smart growth driven by developer
interests—smart growth supports
property rights
Empty buses/empty
train/subsidies
All transportation designed for
peak capacity
Transit not only mode subsidized
Buffett: “no transportation
industry ever inherently
profitable”
BRT/buses vs. LRT/trains Avoid the either/or – false choice
– answer is support the best
investment for your town
Agenda 21/Hobbit Homes —from APTA’s Darnell Grisby
15
Case-Making Products
16
The Conservative Voice
17
Business Case Resources
www.publictransportation.org
Advocacy website
Facts and figures
Policy documents
Facebook.com/apta
Facebook.com/transitmeansbusiness
The Business Case for Public Transportation Investment
Conclusions
• Continued Growth in Rail and Public Transport Markets
• Demand for Sustainable Solutions a Major Factor
• Future Could Include More Private Sector Funds
• North America Emulating International Experiences
• Developers see projects “penciling out” for them
• Many conservatives favor transit
• Community building
• Enables work not welfare
• Return to stewardship values
• Ronald Reagan created Mass Transit Account
• Public opinion is ahead of elected officials
• 70%+ of transit ballot initiatives pass
Questions?
Thank you
Cliff Henke
Sr. Analyst, Parsons Brinckerhoff
Parsons Brinckerhoff
Survey fielded by Harris Interactive, March 2012
The Role of Planning in America General Public Perceptions and Priorities
CONFIDENTIAL PREVIEW DRAFT
A Research Survey Conducted March, 2012
Funding Provided by: American Planning Association Fielded by: Harris Interactive
Design and Analytics by: Collective Strength, Inc.
Survey fielded by Harris Interactive, March 2012 2
Methodology
•Poll has a 95% confidence interval of + or – 3% •1,300 online interviews fielded by Harris Interactive during the week of March 1, 2012 using industry standard protocols. •The data has been stratified to meet the 2010 US Census estimates for race, income, geography and age. •This is an initial preview only. The full report will be available in June. •For more information on the data or methodology contact [email protected]
Survey fielded by Harris Interactive, March 2012 3
Initial Take-Aways
• 66% of Americans feel their community needs more planning/planning is supported by a big majority of all demographics, political parties and regions. •Planners outrank elected officials as those best able to make sure the next 5 years are better than the last 5 •“Communities that Plan are stronger and more resilient than those who don’t” is a widely resonant message.
Survey fielded by Harris Interactive, March 2012 4
Half of Communities Worse Off Now
Compared to five years ago, is living in your community generally better for most people, worse for most people or about the same?
49%
11%
35%
6%
Worse
Better
The same
Don't know
Survey fielded by Harris Interactive, March 2012 5
Not Enough Economic Planning
Do you agree or disagree with the following statement?: My community is doing enough to address the economic situation.
28%
44%
28%
Agree
Disagree
Don't know
Survey fielded by Harris Interactive, March 2012 6
Market Forces Alone Are Not Enough
Some people believe that community planning is a necessary part of improving the US economy and encouraging job growth, while others believe that ’’market forces’’ alone will help the economy and bring more jobs. Which of the following statements comes closest to your belief?
14%
11%
66%
9%
Market forces alone will helpthe economy and bring morejobs
Community planning is neededfor economic improvement andjob growth
Both community planning andmarket forces are necessary foreconomic improvement and jobcreationDon't know
Survey fielded by Harris Interactive, March 2012 7
The Word “Planning” is Positive
Does the word ’’planning’’ have a positive or negative meaning to you?
29%
43%
21%
5%
2%
Very positive
Mostly positive
Neutral
Mostly negative
Very negative
Survey fielded by Harris Interactive, March 2012 8
“Things Work Better with a Plan”
Do you agree or disagree with the following statement? In my experience, things generally work better when I have a plan.
92%
8%
Agree
Disagree
Survey fielded by Harris Interactive, March 2012 9
New Definition of Planning is Widely Embraced
Use this definition for ’’community planning’’: ’’a process that seeks to engage all members of a community to create more prosperous, convenient, equitable, healthy, and attractive places for present and future generations.’’ Generally, do you agree or disagree that your community could benefit from a community plan as defined above?
79%
9%
12%
Agree
Disagree
Don't know
Survey fielded by Harris Interactive, March 2012 10
2/3rds Believe their Community Needs Planning
Some people believe their community needs planning, while others believe it should be left alone. Which of the following statements comes closest to your belief?
66%
17%
17%
Planning is needed in mycommunity
Planning is not needed inmy community
Don't know
Survey fielded by Harris Interactive, March 2012 11
Planners Are Viewed as Key Leaders For Next Five Years
Which of the following types of leaders do you think are best able to understand and implement changes that will make the next five years better than the last five in your community? Please select all that apply
43% 43%
33% 33% 32% 26% 24% 23%
7% 10%
0%5%
10%15%20%25%30%35%40%45%50%
Survey fielded by Harris Interactive, March 2012 12
High Priority National Issues
87% 82%
76% 68% 67% 65%
42% 42% 37% 37% 36%
26% 25% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Survey fielded by Harris Interactive, March 2012 13
High Priorities for Planners
70% 69% 67% 64% 62%
58%
49% 46% 46% 44%
37% 36% 31% 30% 28%
25% 21% 20% 19% 18% 16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Survey fielded by Harris Interactive, March 2012 14
Priorities Given Shrinking Local Resources
•High Priorities ( More than 60%): Education, Job Creation, Clean Water, Safety, Economic Development, Health • Medium Priorities ( 45 % to 59%): Energy Utilities, Water Utilities, Sewage, Clean Air, •Low Priorities( Less than 45%) : Housing (41%), Disaster Preparedness, Transportation (39%), Parks, Trails.
Survey fielded by Harris Interactive, March 2012 15
Awareness of Key Trends is Mixed
Which of the following national trends, if any, are you currently aware of? Please select all that apply.
71%
58%
43%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
The large increase inthe number of seniorcitizens over age 65
The significant increasein racial and ethnic
diversity
The large shift fromfamilies of four or moreper household towards
one or two perhousehold
None of these
Survey fielded by Harris Interactive, March 2012 16
Seniors Are the Priority Trend
Which of the following national trends, if any, do you believe need to be a high priority issue for the United States? Please select all that apply.
66%
28%
18% 22%
0%
10%
20%
30%
40%
50%
60%
70%
The large increase inthe number of seniorcitizens over age 65
The significantincrease in racial and
ethnic diversity
The large shift fromfamilies of four or
more per householdtowards one or two
per household
None of these
Survey fielded by Harris Interactive, March 2012 17
What Makes An “Ideal” Community?
Statement % High Priority
Locally owned businesses nearby 55%
Being able to stay in the same neighborhood as you get older 54%
Availability of sidewalks 53%
Energy efficient homes 52%
Availability of transit 50%
Neighborhood parks 49%
Mix of housing price ranges 43%
A place that attracts young professionals to live 42%
A place with lots of things for kids to do 41%
Mix of housing choices 41%
Schools within walking distance 37%
Unique character and/or culture 33%
Restaurants within walking distance 32%
Availability of bike lanes 25%
A place with lots of young children 17%
Houses being generally the same size 6%
Survey fielded by Harris Interactive, March 2012 18
Issues are Out of Sync
A) Priorities for Planners: Jobs, Safety, Schools, Protecting Neighborhoods, Water Quality.
B) Local Funding Priorities: Education, Jobs, Clean Water, Safety, Economic Development.
C) National Priorities: Economy/Jobs, National Debt, Health, Energy, Education.
Vs D) Planning Themes: Land Use, Transportation,
Housing, Zoning Code, Mixed Use, Sustainability, Climate Change.
