Transit Oriented Development Best Practices Seminar Series January 22, 2007 Presented by Jim Prost, AICP, Principal Basile Baumann Prost Cole & Associates 177 Defense Highway, Suite 10 Annapolis, Maryland 21401
Special Thanks to Our Sponsoring Organizations
National TOD Consultant Worked in 1,200 Communities Nationwide Public / Private Development Advisors Facilitated Over $7 Billion of New Development
Regional Economic Analysis & Market Study A Systems Approach to TOD in the Denver Region FasTracks & Metro Denver Project Goals Key Findings TOD Best Practices Closing Thoughts
Not Just Building a New Rail Line Building a New Denver 2008 Emerging Trends in Real Estate Market to Watch The only landlocked d market on the list, Denver has successfully created an exciting urban core in the midst of a sprawling suburban area that s connected to downtown by light-rail transit. Best Bets 2008 Build Transit Oriented Development.condominiums, apartments, and retail near light rail and/or subway/train stops become increasingly attractive, almost can t miss. Urban Land Institute & PricewaterhouseCoopers
$6.065 Billion Investment 122 Miles of New Rail Multiple Modes (commuter rail, LRT, BRT) 57 New Stations 9 Existing & Future corridors 7 Counties Unprecedented Opportunity to Promote & Facilitate TOD
2006 2012 2014 2015 2016
Denver TOD Economic and Market Study
Understand Regional and Station Specific TOD Potential Evaluate Transit Potential to Induce Demand Gauge Short- and Long-Term TOD Demand Align Station Area Plans with Market Realities Address Phasing Issues / Implementation Strategies Optimize Future Development Opportunities
Distributed to 50 Experts in TOD, Economic Development Business Site Selection, & Transit / Rail Major Existing and Emerging Transit Systems Represented 50% Response Rate
Key Survey Responses Does Transit Impact Growth? Conditions include: Redistributes Growth Creates New Growth Amount varies (10 30%) Modest amount (<5%) Under certain conditions* Transfer of Capital Dollars into Region Transit System is Truly Comprehensive Transit System is Well-Used Transit Makes Region More Attractive & Progressive in Employers Eyes Public Policies Support TOD
Is a Function of: Size of the Existing Economic/Demographic Base Projected Growth (Households, Jobs) Public Policies i Degree of Transportation Advantage Generated Function of the Degree to Which Transit Can Influence Growth
Development activity on existing RTD system growing rapidly Residential leading the way, followed by office and retail Less activity to date on future corridors / extensions compared to existing transit corridors, but interest and planning for TOD is increasing Station area planning underway in variety of jurisdictions TOD emerging as a growing niche market in Denver region - Lifestyle and demographic shifts - - Walkable urbanity Source: RTD TOD Status Report 2007
Higher levels of residential development in near term compared to forecasts Station area potential capture between 13-28% of regional growth between 2005 and 2030 Larger share of growth assumed 2015-2030 when regional transit system is built out Station Area Development Activity vs. DRCOG Forecasts (2005-2015) 30,000,000 26,462,000 25,000,000 20,000,000 16,762,000 15,000,000 13,039,188 63% 10,000,000 8,371,050 5,526,021 5,000,000 42% 2,893,300 300 0 35% Dwelling Units (SF) Office Square Feet Retail Square Feet Projected Net Change (2005 2015) RTD Pipeline
8.5% of existing Residential Development Activity (Households) vs. Baseline Forecasts (2005-2015) households within existing/future station areas 7,000 2030 Adjusted Share: 14.6% 13% capture (74,000 HH) Central / CPV and Northwest Corridors exceeding near term projections 6,000 5,000 4,000 3,000 2,000 1,000 0 99% 71% 355% 63% 52% 1% 0% 76% 44% Central Southwest Southeast East West Gold Line Northwest North I 225 CPV Metro Projected Estimated Net Change (2005 2015) RTD Project Pipeline (Under Construction/ Proposed)
23% of office employment within existing/future station areas 5,000,000 Office Development Activity (SF) vs. Baseline Forecasts (2005-2015) 2030 Adjusted Share: 32.9% 4,500,000 4,000,000 20% capture (56,000 jobs) 3,500,000 3,000,000 2,500,000 Central/CPV and Southeast Corridors seeing great office development activity 2,000,000 1,500,000 000 1,000,000 68% I-225 emerging as future growth market 500,000 0 2% 37% 21% 24% 9% 50% 0% Central CPV Southwest Southeast East West Gold Line Northwest North Metro 29% I 225 Projected Estimated Net Change (2005 2015)1 RTD Project Pipeline (Under Construction/ Proposed)
19% of existing retail employment within existing / future station areas 2030 Adjusted Share: 26.8% 3,500,000 3,000,000 2,500,000 Retail Development Activity (SF) vs. Baseline Forecasts (2005-2015) 15% capture (23,000 jobs) Central / CPV and I-225 corridors seeing greatest level of retail development 2,000,000 1,500,000 1,000,000 500,000 0 72% 180% 86% 0% 29% 27% 3% 10% 0% Central CPV Southwest Southeast East West Gold Line Northwest North Metro I 225 Projected Estimated Net Change (2005 2015) RTD Project Pipeline (Under Construction/ Proposed)
Case Study Examples and Key Issues
Not Getting Out the Word Lack of Station Area Planning Not Providing for Phased Development - Manage Pre Transit Growth without Overly Restricting - Allow for Infill - Encourage Greatest Density Closest to Station Not Addressing Multiple Community Needs Assuming One Size Fits All Not Having Tools/Structure to Implement Ignoring the Details
Transportation Advantage Supportive Public Policies Reduced d Parking Costs Opportunities for Higher Density Opportunities for Mixed Use (Support Retail/Entertainment) Appeal to Demographic/Lifestyle Trends Competitive Market Advantage Sustainability Employee Recruitment/Retention
Frequency of Service Station Spacing Service / Drivesheds (e.g. Park-n-Ride Requirements) Traditional Residential Orientation Need for Large Central Core Need for Transfers / Circulators
Macro (System/Corridor Level) - Advantage of Regional System - Addressing of System Phasing - National Marketing - Linking of Stations - Corridor Branding -Regional TOD Champion - Multi-Jurisdictional Cooperation Micro (Station Specific Level) - Public Policy Initiatives - Creation of Incentive Tools - Formulation of Value Capture Mechanisms - Planning / Design Details
Primary goal in near-term is to establish a positive development environment that will incentivize TOD before rail comes Near-term development programs to fulfill and satisfy more immediate and longer-term public and private sector development desires/objectives around rail stations Promote intensification over time to TOD Interim uses can be integrated with a strategy for increasing density over time within immediate station area Potential use of Park-n-Ride lots as phasing opportunities
Near Term Development Framework for TOD Roles of Participating Actors Participating Actor Transit Agency Local Jurisdiction i Developer Actively Market TOD Opportunities to Private Sector Providing Incentives for TOD (e.g. density bonuses, reduced parking requirements, streamlined permitting) Ensure Sufficient Infrastructure is in place Assemble Land for TOD / Land Banking Help to Secure Financing Station Area Planning / Partnering with Developers to Plan, Design, and Construct projects near transit Establish a Development Authority, Community Development Corporation, or other private non profit organization to assist with TOD development activities and funding
Example TOD Phasing / Implementation Toolkit Before Transit Development / Redevelopment Planning Land Banking & Assembly Interim Uses/Parking Zoning/Infrastructure Development of the Donut After Transit Infrastructure Improvements Tax Incentives Parking Management Special Assessments Revenue Sharing Fill in the Hole
Not All TODs are Created Equal TODs have Special Typologies TODs Should be Cost Effective / Sustainable Real Estate Markets are Cyclical Market Opportunities can be Influenced TODs Still Dependent on Vehicular as well as Transit Access Demographic/Lifestyle Trends Support TOD
Jim Prost, AICP Principal Basile Baumann Prost Cole & Associates, Inc. 177 Defense Highway, Suite 10 Annapolis, MD 21401 410.266.7800 410.266.7866 (fax) jprost@bbpa.com www.bbpa.com