Archive for May, 2007

The Proximate Principle: Open Space is Sound Fiscal Policy

Monday, May 7th, 2007

milleniumpark.gif 

People adore parks. Most people also love open space. That applies even to the three Grand Traverse (MI) County commissioners who last month suggested that global climate change was a leftist conspiracy ginned up by Al Gore, and suggested that emailing the sun was a useful antidote. 

A comprehensive study by the San Francisco-based Trust For Public Land, published in early March,  found sound economic evidence for why regions that embrace an aggressive program of park development and open space conservation should stay committed to those goals. The bottom line: Construction of homes and businesses close to parks and open space generate more tax revenue than homes and businesses located further away. 

Parks and open space provide the same economic benefits as shorelines and water views. They increase property values and tax revenues. They also cost muncipalities and taxpayers far less money to manage than neighborhoods and business districts. The short course for the finance majors among us: parks and open space offer communities a great return on investment.

Smart cities, as Chicago, Portland, Salt Lake City, New York, Boston, St. Louis and countless others have learned, build and maintain excellent park systems because they pay back everything and more that’s put into them. Chicago’s Millennium Park (see pix) cost $475 million to build, which initially was a source of irritation to some taxpayers. But the park also has helped to prompt a housing construction boom in nearby neighborhoods that for decades experienced almost no new development. More than 10,000 units of new housing have been built or are permitted around the new park, generating millions in new revenue for city coffers. Millenium Park, by the way, is actually the largest green roof in the world, spanning an underground parking garage and a railroad right of way that had separated Michigan Avenue from Lake Michigan for over a century.   

According to the Trust’s study, The Economic Benefits of Land Conservation, city planners and business leaders have long recognized the social and financial value of great parks. At the turn of the 20th century, several studies found that the market value of properties located near parks and open space were higher than those of comparable properties located elsewhere. That’s still true.

The grand West Side apartments overlooking New York City’s Central Park sell for more and generate more city property tax revenue than similar large apartments overlooking West End Avenue. Planners call this the “proximate principle,” a nifty way of saying if you’re lucky enough to buy a house close to a park – within 600 feet of an urban park and 1,500 feet of a large natural reserve, says the Trust — you’ve usually made a good investment. 

A 2001 study of more than 16,000 single family home sales in Portland, Oregon, found that 16 percent of the value of properties located within 1,500 feet of a natural reserve were due to their proximity to the park. A study in 1978 in Boulder, Colorado found that a neighborhood of homes close to that city’s greenbelt was worth $5.4 million more than a similar neighborhood farther away.

Nor is the increase in property values and the attendant increase in tax revenues the only benefits of parks and open space. They also cost less to operate and maintain. Wayland, Massachusetts found that developing 1,250 acres of open space within its jurisdiction would cost $328,350 more each year than the tax revenues the city would gain from new homes. “A strategy of conserving parks and open space is not contrary to a community’s economic health,” concluded the authors of the Trust study,” but rather is an integral part of it.”

California Governor Tracks Back, Says He Supports High Speed Rail

Sunday, May 6th, 2007

schwarzenegger_41.jpg 

The push back by the old and new media to Arnold Schwarzenegger’s proposal to cut state funds to the agency overseeing the development of a 700-mile high speed rail network in California appears to have influenced the Republican governor’s view.

On Friday, Schwarzenegger (see pix) published an op-ed in the Fresno Bee extolling a high speed system. Thanks to Marcel Marchon’s Trainblog for keeping us current. “The promise of high-speed rail is incredible,” wrote the governor. “Looking forward to the kind of California we want to build 20 and 30 years from now, a network of ultra-fast rail lines whisking people from one end of the state to the other is a viable and important transportation alternative and would be a great benefit to us all.”

So what’s the rub? Schwarzenegger wants a business plan for the $40 billion rail network. ”Identifying the exact funding sources for large transportation projects is more problematic, which is why we need the authority to come up with a well-thought out financing proposal before moving forward.” 

Makes sense. What doesn’t is diverting $2.5 million away from the California High Speed Rail Authority, which is charged with developing the business plan. It’s like sending a kid to the corner store to buy a $3 gallon of milk, and giving him only $1.50. A little attention paid to Schwarzenegger’s proposed fiscal derailment may have kept the money in the rail agency’s budget. On Thursday, May 10, a California Senate Budget Committee is holding a hearing on the state transportation bill that should include discussion of the governor’s pr0posal for high speed rail funding.

Next up is whether the planned November 2008 referendum, during which Californians will decide whether to spend nearly $10 billion to start building the first high speed lines, will remain on the ballot. Scwarzenegger doesn’t want to conduct the vote.

Importantly for California and the nation, it’s the first instance that I can recall that proposed taxpayer cuts to a high speed rail proposal became a political issue, and generated significant citizen and media responses. Californians understand the value to their lives and their state in making this mega investment in new transportation technology. And as California goes, so goes the rest of the country. It’s a promising trend in every way.

High Speed Rail Cut Stirs Response in California

Thursday, May 3rd, 2007

   PROPOSED CALIFORNIA HIGH SPEED RAIL ROUTE

 california-high-speed-route.jpg

California Democrats have elevated building their state’s proposed high speed rail network to the top of their legislative priorities, according to the San Francisco Bay Guardian. The Daily Kos, one of the most read blogs in the country, noted the swirl of attention that Governor Arnold Schwarzenegger stirred with his proposal to cut $2.5 million in state funding to the California High Speed Rail Authority, the agency overseeing the system’s planning. And the Los Angeles Times yesterday published an editorial yesterday that called on Republican Governor Arnold Schwarzenegger to back off his proposal to reduce state funding this year to the California High Speed Rail Authortity, the agency overseeing the system’s planning.

“By 2020, the projected completion date for the bullet train, gas will likely be a lot more expensive,” said the Times. “State and federal governments by that time should be well underway in cutting back sharply on greenhouse gas emissions, probably translated into increased costs for flying or driving. (The bullet train would be emissions-free.) Train service, particularly the kind that could compete with airline travel on convenience, could be far more economically competitive than it is now.”

The push back comes because Californians recognize the value of a reasoned alternative, not only to meet their own transportation needs, but also in responding to the triple whammy of peak oil, global climate change, and explosive growth in the number of people and vehicles expected in the state over the next generation. Nor is California alone. Trainblog, a fine compendium of rail news and notes, included this piece from the Billings Gazette in Montana noting growing support for a high speed rail line, the Ranger Xpress, that would link Rocky Mountain cities. The Republican lawmakers of Wyoming temporarily put down their guns and resistance to abortion and taxes to fund preliminary studies. “The Wyoming Legislature passed a supplementary budget request for $300,000 to help fund a study of the possibility of a Rocky Mountain High Speed Rail Corridor,” the newspaper reporter, “which would stretch from Casper, Wyo., to Belen, N.M. The cities of Casper and Cheyenne each gave $50,000.”

Governor Schwarzeneggers’s move on the California high speed system also coincides with the powerful evidence of rail’s utility in a sound transportation strategy. The San Francisco rapid transit system, BART, is experiencing a surge in ridership in response to the gasoline-fed inferno last week that melted a ramp to the San Francisco-Oakland Bay Bridge, the primary east-west entrance and exit to San Francisco. The San Francisco Chronicle reported this week that  ”BART carried a record 375,200 riders on Tuesday, up from an average weekday of 340,000 riders. BART’s ridership fell back a bit Wednesday morning, with 7,300 more riders than average, for a total of about 140,000 riders who boarded from the start of service to 11 a.m. During roughly the same period on Tuesday — the start of service until noon — 158,000 people boarded BART — an extra 13,000 riders, 9 percent more than usual.”

Fast Trains There; Dreams of Fast Trains Here

Wednesday, May 2nd, 2007

Almost three years after Republican California Governor Arnold Schwarzenegger signed legislation that put $2.5 million in the kitty of the California High Speed Rail Authority, which is charged with overseeing the planning of a 700-mile network of fast trains in the nation’s largest state, Schwarzenegger has had a change of heart. The governor’s 2007 budget proposal calls for cutting state appropriations for the Authority, according to an article in the April 29, 2007 edition of the Los Angeles Times, and has asked the Legislature to postpone indefinitely a public vote on a $9.95 rail bond issue that was scheduled to appear on the November 2008 ballot. The reason for all of this, according to Adam Mendelsohn, one of the governor’s spokesmen, ”Right now the voters are crying for relief from congested freeways. That’s the immediate priority.” 

Say what? Congestion relief from building more highways? Can’t be done. America has built hundreds of thousands of miles of expressway and congestion is worse than ever. Why? The rate of increase in the number of vehicles is rising much faster than the rate that states and the federal government can build more miles of freeway. That’s because they cost upwards of $50 million a mile to build, $100 million to rebuild, and millions more to maintain.

[youtube]zD1QGNsRg74[/youtube]

It’s a mismatch that can not be resolved so long as American communities continue to spread out and the primary transporation mode is highways and personal vehicles. In California traffic volumes tripled from 1965 to 2000. The state’s population doubled during the same period to  almost 34 million. California is adding more people now — about 452, ooo annually — than at any time since the 1980s. There isn’t enough money in California or anywhere in the rest of America to pave over the landscape to save 5 minues on a commute. Period.

Millions of citizens, dozens of communities, and a few courageous and prominent political leaders understand there’s a need to think differently about this. Governor Schwarzenegger is one of them. Last year he campaigned for the $37 billion “Rebuild California” bond, which was easily approved by California voters. The bond’s intent is to be the state’s first concerted response to the global market, environmental, demographic, and economic trends that threaten to upend the Pacific Coast, and every other region of America. Most of the $22 billion devoted to transportation will be used to improve existing roads and highways. The plan is not a new highway building fund. That’s a change. About $1 billion is directed to improving public transit. Other features of the bond were designed to secure the state’s natural resources, deal with the impending fresh water supply crisis that California faces, and strengthen public education. In other words, the Rebuild California plan’s goal is to improve communities and the quality of life, and that’s a change too.

On those facts alone, the governor’s new distate for high speed rail makes no sense. But now consider what’s happening in the Bay Area, where last week a gasoline tanker truck crashed, burned, and destroyed the ramp where the Oakland Bay Bridge, the primary east-west entrance and exit from San Francisco, empties traffic onto Interstate 580. City and state elected leaders had two options to suggest to commuters and avert a cultural and economic meltdown. Drive to and leave work in off-peak hours, or use the region’s excellent regional rapid transit system. Guess what. Ridership on BART increased dramatically because the system is safe, clean, efficient, and easy to use.

It will take months to repair the ramp and in that time BART will develop thousands of new regular riders. The same thing happened after 9/11 when ridership on Amtrak’s northeast corridor increased and has stayed high ever since. 

Schwarzeneggers biggest problem with the high speed proposal isn’t the Republican party’s ideological barrier against rail, it’s money. The rail system that would tie the Bay Area and Sacramento to Los Angeles and San Diego, via the San Joaquin Valley, would carry passengers on trains traveling up to 220 mph and compete with the French, Japanese, and Chinese for the best high speed rail network on the globe. But the projected cost of the 700-mile system has climbed from $25 billion in 1999 to $37 billion, according to the state’s high speed rail authority. 

Oh my! Well consider that the cost of building highways has climbed faster. We’ve got a lot of experience with that in Michigan. In 1996, for example, the Michigan Department of Transportation estimated that a bridge and new highway across the Boardman River valley here in Traverse City, would cost $15 million. By the time the highway proposal died in 2004 the official cost estimate had soared to over $55 million and was heading to nearly $100 million.

Regardless, $37 billion is a lot of money, and we ought to carefully consider how to spend it. At current costs, for that kind of money you get about 700 miles of new concrete freeway that will last about 30 years and then have to be completely rebuilt. Or you get super fast, comfortable, convenient trains and 700 miles of high speed rail that won’t need to be replaced for at least 100 years if you take care of them. You also get new station stops, new walkable patterns of housing and business development around those stops, cleaner air, energy-efficiency, speed, jobs, and time.

The other principal critique of rail proposals in the United States is this one: Nobody will use it. ”Critics see the high-speed train as a potential boondoggle that would be a drain on the state treasury,” said the Los Angeles Times, “and a loser that would never pay for itself. Consider, they say, the poor performance of most long-distance U.S. passenger rail service.”

There are two parts to an appropriate response. The first is that the United States has done everything it can to drain resources and diminish Amtrak’s performance. Still, Amtrak carries 69,000 passengers a day and ridership has been increasing one to two percent a year. Moreover, the very same American business travelers who wouldn’t dare set foot in a long-distance train here are flocking to them in Europe and Asia. Why? They’re reliable, fast, cost-effective, and much more relaxing than traveling by air. “Trains in Europe run like a clock,” Ralph Smith, an executive from Minneapolis, told the New York Times for an article in the April 24, 2007 edition. “They’re nice and clean and fast. And the rail staffs are very helpful to Americans who kind of don’t know where they’re going.”  

The fact is that the industrial nations we are competing with around the globe are building high speed rail networks. It’s prompted a boom for Siemens, Bombardier, Alstom, and other manufacturers who are busy filling multi-billion dollar contracts to build lines and equipment in China, Japan, France, and other nations. High speed rail represents the transportation Mode Shift that makes sense for modernizing economies that are anticipating the transformative demographic, environmental, and economic forces of the 21st century.  

As long as the United States keeps thinking highway, we fall further and further behind. Come to Michigan. We have all the highways a modern society thinks it needs, a smattering of passenger trains, and no regional rapid transit. Our biggest metropolitan region is fading away. Our economy is obsolete. Our bright college-educated kids, who we’ve spent billions educating, are leaving to build the economies of cities that have long-dsitance rail and regional rapid transit systems. Michigan is becoming the new American backwater, and still some lawmakers are considering hiking the gas tax to build more roads. 

A final thought. Voters have the opportunity to make the case for high speed rail in 2008, when the Democrats, who are far more sympathetic to public transportation than the Republicans, will take the White House. And when they do all of the public transit agencies and city officials and citizen advocates across the country who see the future on rail and not concrete need to be much more active in making the case for constructing fast intercity regional rail systems, and equipping those systems with sleek state-of-the art trains. A national movement can certainly be built from all of the regional high speed rail systems proposed around the United States. 

Along with California, high speed rail networks are proposed in:

That’s a lot of territory and spans 85 percent of the presidential delegates. Candidates could pick up a lot of support on that new high speed platform.