Finding the Hidden Assets of Cities and Regions

1. Finding the Hidden Assets of Cities and Regions An Emerging Approach to Value Capture and Wealth Creation September 12, 2002

2. As the Curtain Rose on the 20th Century—

3. Why Do Cities, Communities and Regions Exist? • Natural and built advantages • Some things are done better jointly than separately, and • And people & markets thrive better when there is a sense of place

4. The Tangible Assets of Places • Urban Purchasing Power • Concentrated Workforce • Mass Transit Systems • Accessibility • Abandoned and Under-Used Land • Underutilized Infrastructure

5. Tangible Assets-Continued • In Place Infrastructure with Underutilized Carrying Capacity • Already Assembled Rights of Way • Efficient Resource Use • Surprising Biodiversity

6. Sample Asset: Accessibility

7. Mapping the Asset Regionally

8. Showing the Benefits of Capturing the Value

9. Vehicles/Household Household Density This Could Also Work in Cleveland

10. Potential Effects • Shift in expenditures from asset reducing to asset producing accounts • Increase in Homeownership Rates • Transportation Expenditure Savings • Environmental and Quality of Life Improvements

11. Emerging Opportunities • New kinds of retail value capture-Shorebank, ICIC, Chicago Franchise Partnership • Infrastructure accounting and smart growth--GASB Rule 34, watershed accounting • New intelligence systems for workforce spatial matching--Metro Denver Works • Electric utility reliability--Chicago, Bay Area

12. Driven to Debt • Studies show that transportation costs are second after housing • In Chicago, housing costs 36% of HH expenses, transportation 16.3% • Together, that’s 52.3% of expenses

13. Transportation is the Highest HH Cost After Housing

14. Buy Cars or Build Wealth?

15. “Zero Percent Loans Drive Economy”:Detroit Free Press, August 2002

16. Travel Demand Results from What We Do, and Where We Do It

17. Streetcar Suburbs • Developers built streetcar lines to serve their projects • Were pedestrian-oriented, mixed use, moderate density projects

18. Rail systems began to be built again in the seventies and eighties They were oriented to access by the auto Park and ride lots, big roadways, and little relation to neighborhood Auto Oriented Transit

19. Transit Adjacent Development • Development begins to take place near transit • It follows traditional zoning, parking, design, failing to take advantage of location • Can result in higher cost

20. What Is Transit Oriented Development? It • Occurs within 1/2 mile of transit stop • Is linked to a grid of walkable and bikeable streets • Contains a rich mix of uses -- retail, residential, workplaces • Has appropriate treatment of parking -- at rear, away from sidewalk, reduced requirements • Contains a mix of housing types, sizes • Has densities appropriate to its setting • Is a real place, not just a transportation “node”

21. Auto Oriented Transit

22. City Elevated Stop

23. Diverse Land Uses and Walkability

24. Older Suburban Downtown Improvements: Two Story Grocery and Pedestrian Friendly

25. Traditional Urban TOD Retrofit: Two Story Grocery, Shared Parking with University, Pedestrian Oriented

26. “Crane Station”: What’s In Process at 240 Suburban Rail Stops in Chicago

28. Transportation Costs Account for Regional Differences in the Cost of Living • Chicago MSA households spend $7418 on transportation or 17 percent of expenses • Cleveland MSA households spend $8300 or 21.3 percent of expenses • Extra car ownership and extent of driving account for the difference—half the households in Cleveland have one vehicle more than their cohorts in Chicago

29. Land Use Changes Drive These Trends • 1970-1990, Developed Land Increased 55 Percent, Population 4 Percent • 1982-1997, Developed Land Increased 26 Percent, Population 10 Percent • Each 1 percent increase in Developed Land Resulted in 1.25 Percent Daily Vehicle Miles Traveled • In Cleveland, Developed Land Increased 33 percent while the population dropped

30. While Some Assets Get Reused

31. Households Growing Faster than Housing Stock

32. Sample Benefits: Infrastructure and Rights of Way

33. Sample Benefits: Underutilized Infrastructure and Resource Efficiency

34. Sample Benefits: Resource Efficiency and Collective Efficacy

35. Beating the “Last Mile” w/ WiFi: Using Technology to Reconnect a Region’s Communities

36. How We Travel Between Cities

37. Even at current train speeds, rail is time-competitive with airline and automobile travel for shorter-distance trips

38. Percent of Flights Under 500 Miles

39. Reconnected Cleveland: 65 Percent of All Flights & 45% of Originating Flights are Under 500 Miles

40. A Disconnected Vision

41. A System that Will Work • Intermodal hub and spoke, based both at airports and city centers, national in scope • Market sharing between airport pairs—Milwaukee and Gary back up Midway and O’Hare, Providence backs up Logan • Improved and connected regional transit to reduce “landside” access by car

42. Vancouver Seattle Tacoma Portland Springfield Worcester Utica Albany Eugene Syracuse Albany Toronto Minneapolis/ St. Paul Boston Providence Hartford Grand Rapids Milwaukee Cleveland Rochester New London Lansing New Haven Buffalo Stamford Madison Scranton Detroit New York Ann Arbor Pittsburgh Newark Chicago Trenton Toledo Philadelphia Harrisburg Peoria South Bend Wilmington Salt Lake City Gary Omaha Des Moines Atlantic City Columbus Baltimore Sacramento Reno Indianapolis Dayton Washington, DC Denver Cincinnati Richmond San Francisco St. Louis Kansas City Colorado Springs Norfolk Lexington Carbondale Louisville Greensboro Wichita Raleigh Knoxville Las Vegas Springfield Fayetteville Charlotte Tulsa Nashville Oklahoma City Greenville Little Rock Chattanooga Memphis Flagstaff Los Angeles Columbia Albuquerque Atlanta Birmingham Charleston Phoenix San Diego Macon Savannah Montgomery 5 million 25 million 36 million Tucson Dallas/ Ft. Worth El Paso Tallahassee Jacksonville Baton Rouge Lake City Pensacola Daytona Beach Mobile Austin New Orleans Melbourne Orlando Beaumont Houston Tampa Sarasota San Antonio West Palm Beach American Travel Survey, 1995 (1,000,000 or more trips in segment) Ft. Lauderdale Ft. Myers Miami Corpus Christi Starting to Reconnect America

43. Adding Up the Benefits • Resource Efficiency raises household income by 5 to 12 percent • Infrastructure Enhancement frees up $40 Billion in available capital • Location efficient mortgages increase mortgage approvals by 4-10 families per day • Savings capture raises homeownership rate by 5 to 10 percent • Reinvestment, maintenance and retrofit create hundreds of thousands of jobs

44. Adding Up the Benefits • Reduced bankruptcies and foreclosures • Improved regional credit ratings and reputation • A sustainable quality of life • Enhanced regional efficacy • A region of communities working together • A place where people and businesses want to be

45. Employer Assisted Housing Change counseling to highlight transportation $$ Create IDA’s to help working poor capture transportation savings Expand car sharing Transit oriented development—more mixed use, commercial near transit Employee commute assistance Tie solutions together—eg, Housing AND Transportation What We Can Do About These Trends and Opportunities

46. As We Enter the Next Century: • Economic security concerns dominate • Policies need to be reintegrated around place • Regions and communities need scorecards and capacity to succeed • “Homeland Security” concerns need a refocus toward security at home

47. Near Term Policy Opportunities • Welfare Reform and Workforce Investment Acts • TEA21/Air21/Rail 21 Reauthorization • National Housing Trust Fund & HO Tax Credits • New Government Accounting Standards • Regional Transportation Plan • Citizens Transportation Plan II • Elections

48. Smart Regions : • Improve continuously • Anticipate & adapt • Value local assets • Pursue mutual gain • Put a sense of place into marketplace • Healthful, educative & secure • Respect ecosystem roles • Learn as a community • Work for everyone

49. For More Information • scott@cnt.org • www.cnt.org • www.locationefficiency.com • www.prlonline.org