It is said that public transportation can induce a vibrant national economy.
It can make business profitable, increase property tax revenue, and stimulates
private investment. Overall it creates economic development. Statistics
demonstrate how it influences the economy. New York City’s
Metropolitan Transportation Authority and Chicago’s Regional Transportation Authority disclose that the
relationship between statewide economic benefits and cost is slightly more than
2 to 1 and 1.8 to 1 respectively.1) Several cases
evidence how it induces development and promotes economic vibrancy. The Metro
Link light rail system in St. Louis has drawn $491.8 million in private
investment.2) Also, $450 million in commercial and residential development
proceeded around Boston’s silver line.3) This kind of private development around
public transportation induces transit-oriented development making the city more
compact, vibrant, and walkable.
In this research I will examine the economic impact of transportation
especially focusing on a specific area, Dallas. Dallas is usually
regarded as an automotive-sprawl city, which does not seem to utilize mass
transit effectively. Since Dallas
is stereotyped as an auto oriented city, studying the transit system in this
region can show the obvious impact of public transportation. I focus on how
transit changes the city and also illustrate the possibility of its success. I
will emphasize the effect of rail and illuminate the plausibility of the transit
oriented development in Dallas.
- DART (Dallas Area Rapid
Transit)
Dart (Dallas Area Rapid Transit) was founded in 1983. It is operated by a 15-member board
appointed by member-city councils based on population. The
following thirteen cities are serviced: Addison, Carrollton, Cockrell Hill,
Dallas, Farmers Branch, Garland, Glenn Heights, Highland Park, Irving, Plano,
Richardson, Rowlett and University Park.4) Of interest is the
situation regarding the Dallas Area Rapid Transit. This regional transit
authority receives funding in a unique manner, subsidized by a 1% local sales
tax.5) It helps keep fares low. DART also has
various funding sources such as investment income, federal fund, farebox
revenue, and bonds. Its Light Rail system was originally built with 80% local
funds and 20% federal. In its extension program, the Federal Transit
Administration provided $330 million full funding.6)
The unique mindset under girding DART and its 45 miles of light rail transit
(DART Rail), along with 31 freeway miles of high occupancy vehicle (HOV) lanes,
is praiseworthy, due to the formerly dominated auto transit. 130 bus
routes provide service to Dallas as
well as 12 surrounding cities. Accompanying the aforementioned amenities
is a paratransit for the mobility impaired. A joint 35 mile stretch of commuter
railway merges DART and the Fort Worth Transportation Authority, aptly named the
Trinity Railway Express or TRE. This venture, boasting mid-city stops,
ties downtown Dallas and Fort Worth to the DFW International Airport.7)
- DART LIGHT RAIL
The 44 mile light rail was initiated in 1996. It covers 34 stations and
serves 58,0000 weekday riders and weekends, 43,074
passengers.8) A total of 16.5 million passenger trips were generated through
DART in 2004. Now there are two lines, the Blue Line and the Red Line. The Blue
Line serves from Ledbetter to downtown Garland, which are
Dallas suburbs, through downtown Dallas. The Red Line, which services from
Park Lane to Westmoreland, was
newly expanded toward the north beyond Park Lane by more than 9 miles. New stations include nine stations
from Walnut Hill to Parker Road
through Galatyn Park and downtown Plano.9) This rail
does not only serve public needs but also it induces commercial and residential
development. Around the stations, mixed- use development investment amounts to
approximately $1.3 billion. Also, it attracts a transit oriented life
style.
DART additional planned expansion regions include the Northwest Corridor,
which provides transportation to downtown Dallas,
American Airlines
Center, the Dallas Medical/Market Center,
Love Field Airport, and the cities of Farmers Branch and Carrollton. This is a 17.5 mile expanse of
railway. Various other augmentations to DART are in the making such as a
13-mile branch slated to stretch from the Northwest Corridor to North Irving’s
Las Colinas Urban Center and DFW
International Airport. The
Southeast Corridor bridging downtown Dallas, Deep Ellum,
Fair Park, South Dallas and Pleasant Grove, is an additional 10.2 planned
extension. The entire DART Rail System should reach 93 miles in length by the
year 2014, which is twice its existing size. Further extension
propositions will reach south three miles from Ledbetter Station in South Oak
Cliff to I-20 and northeast five miles from Downtown Garland Station to
Rowlett.10)
Picture1: DART Service Areas and its extension
(The overlapping part between the Red Line and the
Blue Line is downtown Dallas.)
Source: www.urbantransport-technology.com/projects/dallas_1/dallas_11.html
- The Outcome
Noteworthy is the mixed-use development investment spawned by the DART light
rail endeavor. $860 million were spent in the railway project, laying the
foundation for an impressive surrounding development generating $922
million. This unique combination has resulted in more than $1 billion
associated with the DART venture.11)
In the beginning, after its inauguration, Downtown
Dallas saw a nearly 33 percent increase in retail sales compared to a 3% rise
citywide.12)
Also, DART boosts economic activities. It marked the increase of sales tax
revenue. In 2004, the sales tax revenue rose to $250.6 million from $234.3
million in 2003, which was a 7% increase.13) It
showed the increase of net assets of $19.6 million, while the previous year had
a record of $49.2 million decrease in net assets. Total operating revenues
also increased to $34,774,000 in 2004 from $32,459,000 a year ago. Cash flows
from investment activities in 2004 were $100,054,000, which also evidenced an
increase from $57,606,000.14)
In 2002, DART’s light rail ridership grew by 45%. Surveys uncover an
interesting 30% rate of diversion from cars to the DART rail system.15) During 2003, more than 32,000 jobs were
created by DART and its overall regional impact is $3.7 billion.16)
Amazingly, over 27,000 jobs and greater than $2.3 billion in regional economic
investment will result from the original $1 billion investment into DART.17)
Its investments in daily operations generate more than $230 million in
regional economic activity per year.18)
3.1. Property Value
Between 1994 and 1998, the value of residential properties near light rail
stations on average increased by 39 percent more than comparable properties,
which do not get rail service, and the value of office buildings near DART Light
Rail increased by 53 percent more than comparable properties not near
rail.19) During the period, the occupancy of
class A buildings increased from 80% to 88.5%. Also, national companies like
Omnicom Group, Blockbuster Entertainment, and the 1,900 room Adam’s Mark Hotel,
the largest in Texas view proximity to the DART stations as the intrinsic
element in their location strategy.
One research from the University of North Texas shows that between 1997 and
2001 residential property near by DART Light Rail stations increased by 32.1%,
while the property lacking close proximity increased by 11.5%.20) In the case of offices, the property near DART Light
Rail station increased by 24.7%.21) On the other hand, non-DART Light Rail
property increased 11.5%.22) This kind of increase reflects the high
demand for the close proximity to the DART Light Rail station.
In the case of retail property, this research shows that there is no
important difference in the value change, but it can reflect an overall retail
growth during the period. However, it discloses the competitive situation
between retail spaces residing within 1/4 mile of DART.23)
3.2. Synergetic Development from DART LIGHT RAIL
The most valuable outcome from DART Light Rail is the triggering mixed-use
development along rail stations. Actually it is in process and the city of
Dallas is taking a “wait and see”
position. Along DART Light Rail stations including the expansion plan, an over
$3 billion investment has been triggered.24) It is remarkable that the ‘city of
sprawl’ is trying to change. No one is sure whether it will be a success or not,
but at least its trial and some proved change imply positive effects. I examine
several representative cases: Downtown Dallas, Mockingbird, Downtown Plano,
Cedars.
1)
Downtown Dallas
More than 200,000
people travel each day, using the DART network, which encompasses bus, light
rail, commuter, HOV lanes, paratransit services and rideshare programs, within a
700-mile region. The Convention Center, Union Station, West End, Akard,
St. Paul and Pearl
are downtown access points. Two downtown stations in the central Fort Worth vicinity are connected by the Trinity
Railway Express (TRE) commuter rail. Especially between stations in downtown,
the light rail fee is reduced to fifty cents. DART also provides the Employer Pass
program for transit use with a discounted price.25)
These factors attract more people to the light rail transit use.
In the downtown region, approximately 45,000 employees commute, via DART.
This light rail will be extended 17.5-miles and 10.2-miles by 2011.
The transit network induces synergetic development. Elm and Commerce, from
Industrial Boulevard to Central
Expressway received a $1.5 million resurfacing due to increased transit use. In
late 2003, a $3.5 million streetscape enhancement project, which makes more
pedestrian-friendly streets, was initiated. It also generated the development of
pedestrian ways.26) Two miles of underground and one mile of elevated
pedestrian walkways, made it feasible for residents, visitors, and employees to
take advantage of 250 restaurants, stores and retail services. It has helped
create a walkable atmosphere. This positive development attracts the extension
of the rail line as mentioned above. In May 2003, Dallas voters approved funding to extend the north/south streetscape
improvements project from the DART Transit Mall to Ross Avenue. Total investment on this area is
from 1999 to September 2005 is estimated at $30 million.27)
2) Mockingbird Station
This area, which is located 4 miles north of downtown Dallas, a 15-minute ride by train, shows notable
characteristics of a transit oriented development. The mixed use development
investment around the station was $145 million. This project was launched in
1997. Hughes bought a 7 acre property and an abandoned Western Electric
building. Erected in 1947, the latter was a three-story brick and concrete
building now filled with junk and grease. Next to that building the DART
light rail station was planned to be constructed. Currently the ground level of
this structure has 45,000 square feet and on the loft, four stories of 200,000
square feet apartments.28) This project added 1,150 underground parking
spaces with the additional purchase of an old next door building and converted
part of its parking garage into 35,000 square feet of retail space. It was
expanded to 140,000 square feet and connected to the light rail station by a
pedestrian bridge. The loft apartment, completed in 2001, has a rental value
ranging from $900 to $2700, which is 35% higher than “comparables”. From
this rail station, the total investment from 1999 to September 2005 is estimated
as $270,000,000.29) It shows positive transit effects inducing private
investment. This kind of mixed use development in a suburb of Dallas was hard to imagine without the transit.
3)
Downtown Plano
Downtown Plano is located 40 minutes north of downtown
Dallas utilizing DART ride. It is
a relatively affluent community, but the downtown was dead since suburban
shopping centers absorbed people from this part of town. However, this sprawled
suburb was recreated with new construction of light rail transit, DART. It
was planned that DART and the city were to collaborate with the local downtown
business zoning district within ¼ mile of the station, and induce
revitalization.
The first project was completed in 2001. It was a mixed-use development on a
3.6 acre spot adjacent to historic downtown and art centers, transit museums,
and Haggard Park. The newly designed buildings were 3 and 4 story buildings with
no set back and 19th century style.30) They include 234 loft
apartments of which rent value is from $600 to 1,200 and over 15,000 square feet
of ground floor commercial space consisting of restaurants, small offices, and a
community room. This project opened 6 months before DART and leased up quickly.
This success induces the second project which included 229 loft apartments and
25,000 square feet of first level retail.31) After DART opened the occupancy
rate of those buildings increased to 98%. Total investment from 1999 to
September 2005 was $260,000,000. Now downtown Plano has become a vibrant and pleasing center which attracts all the
people.
4)
Cedars
Cedars is located south of downtown Dallas. Along the DART light rail station, four projects followed.
It is a Convention Center development, mixed-use development on South Side
Lamar, Gilley’s development and Dallas Police Headquarter. The Convention
Center is located between Cedar Station and the Convention Center Station. The
Convention Center area includes a commercial, entertainment, hotel, residential
district. On the South Side on Lamar is a 10 story, a 1.4 million square feet
mixed use center holding 455 loft retail spaces, offices, and a performance
space.32) It was converted from an abandoned merchandise center and its
occupancy rate is over 90%. Dallas Police Headquarters was also newly
constructed along the station. The 360,000 square feet building on 3.2 acres
holds 1,300 employees. Total investment around this area from 1999 to 2005 is
estimated at $339,200,000.
- Conclusion
It is early to judge whether the light rail in Texas is an overall success or not and how huge
of an impact it brought. Some surveys show that retail business does not benefit
from the DART station and people still love their cars and big suburban malls.
However, DART induces mixed use development along the rail station, and it has
brought over $1 billion of investment. Property taxes have risen and over 30,000
jobs were created from DART and its investment. Above all, Dallas and its suburbs are changing along the
light rail; the region is on the precipice of unavoidable change. At least, the
public transit and the development of its adjacent area give people another
option to commute and enjoy the urban life. In these respects, DART generates
positive effects. This influence brought rail extension plans out toward the
suburbs through downtown. If it is completed, the city will have a more compact
network and better access to downtown. Also, development comes along with it.
Total estimated investment around the rail stations would be over $3 billion.
This development also can increase tax revenues, and additional jobs. The
rail can boost the local economy and the whole city can be recreated.
Reference
1)
http://www.sierraclub.org/sprawl/report04/transit.asp
2)
http://www.publictransportation.org/reports/pub_business.asp
3)
http://www.apta.com/research/info/online/essential.cfm
4)
http://www.urbantransport-technology.com/projects/dallas/
5)
Ibid.
6)
Luther
S Miller, “How light rail pays its way in Dallas”, Railway Age, Feb
2001:202, 2.
7)
http://www.urbantransport-technology.com/projects/dallas/
8)
http://www.dart.org/DARTOverviewApr05.pdf
9)
Ibid.
10)
http://www.urbantransport-technology.com/projects/dallas/
11)
http://www.apta.com/research/info/online/essential.cfm
12) Ibid.
13)
http://www.dart.org/debtdocuments/QDU033104.pdf
14) Ibid.
15)
http://www.cfte.org
16) Ibid.
17) Ibid.
18) Ibid.
19)
http://www.apta.com/research/info/online/essential.cfm
20) Bernard L Weinstein and Terry L. Clower, “ An
Assessment of the DART LRT on Taxable Property Valuations and Transit Oriented
Development”, www.apta.com/research/info/
briefings/documents/dart2002.pdf
21) Ibid.
22) Ibid.
23) Ibid.
24) Bernard L
Weinstein and Terry L. Clower, “ The Estimated Value of New Investment Adjacent
to DART LRT Stations: 1999-2005”,
www.dart.org/WeinsteinDARTDevelopment2005.pdf
25)
http://www.downtowndallas.com/work_trans.asp
26) Ibid.
27) Bernard L
Weinstein and Terry L. Clower, “ The Estimated Value of New Investment Adjacent
to DART LRT Stations: 1999-2005”
28)
http://www.transitalliance.org/TransitOrientedDevelopment/TransitOrientedDevelopment.htm
29) Bernard L Weinstein and Terry L. Clower, “ The Estimated Value of
New Investment Adjacent to DART LRT Stations: 1999-2005”
30)
http://www.planoplanning.org/amicus/Phase%201.html
31)
http://www.planoplanning.org/amicus/phase%202.html
32)
http://www.dot.ca.gov/hq/MassTrans/doc_pdf/TOD/Appendix/Statewide_TOD_Study_APPENDIX--Part%201.pdf