Workshop on Transportation Corridor Evaluation With a focus on Economic and Community Development

Agenda Overview and Goals for this Workshop Overview of SLPP Research –Five Criteria –Lessons learned –Policy cycle Economic Development’s Role Suggestions for Guiding Later Discussion

Workshop Overview Hiawatha operational for nearly 1 year Little consistency in current research to measure economic and/or community impacts of transit corridors Need for improved and consistent methodology, and for minimizing redundant data requests

Workshop Goals Learn what data is already available / being collected Take advantage of lessons from other projects and evaluation efforts Agree on key elements for academic evaluation of impacts of Twin Cities transit corridors Understand how methods or benchmarks may vary

Workshop agenda Overview of SLPP Research –One way to frame the discussion Overview of Transit Corridors in the Twin Cities –To understand the planning context Overview of data being collected for FTA –To understand what is currently being collected and reported Lessons learned from other evaluations Discussion of what methods should be applied in evaluating Twin Cities corridors

SLPP Research Or, How We Got Here

SLPP Research 1997 Study –Recommend that transportation and community and economic development be integrated in transportation corridors Subsequent studies recommend developing an integrated framework which recognizes that corridor development affects five areas Citizen Preferences Governance Financing Economic Impacts Design

Analytical Framework

Decision Tree

Policy Cycle Policy Proposal Development Issue Identification Problem Definition, Analysis Public Policy Debate Policy Action Events Data Policy Shortcut

Policy Cycle Issue Identification Lessons Learned: Do not let technology or design drive the planning process.

Policy Cycle Policy Proposal Development Issue Identification Problem Definition, Analysis Lessons Learned: Get to know for whom you are planning. Tailor the five components to meet local conditions Priorities can change as scale changes. Have a champion Connect with the regional transportation planning and funding process.

Policy Cycle Policy Proposal Development Issue Identification Problem Definition, Analysis Public Policy Debate Lessons Learned: Amend local zoning as necessary Don’t let economic conditions affect a future vision.

Policy Cycle Policy Proposal Development Issue Identification Problem Definition, Analysis Public Policy Debate Policy Action Policy Shortcut Where the “rubber meets the road” (or the steel meets the rail)

Policy Cycle Policy Proposal Development Issue Identification Problem Definition, Analysis Public Policy Debate Policy Action Events Data Policy Shortcut Qualitative and quantitative results that are used to measure the success of the project Compare with other similar corridors

Policy Cycle Policy Proposal Development Issue Identification Problem Definition, Analysis Public Policy Debate Policy Action Events Data Policy Shortcut

Decision Tree

Policy Cycle Policy Proposal Development Issue Identification Problem Definition, Analysis Public Policy Debate Lessons Learned: Amend local zoning as necessary Don’t let economic conditions affect a future vision.

Economic and Community Development

Economic Development Typically a local government issue What it encompasses varies greatly by locality and agency –Dependent on goals of agency Examples: maximizing real estate, reducing travel times, etc. Different governing bodies incorporate and weigh these factors in myriad ways

How is Economic Development Defined? Traditional economic analysis looks at economic costs and travel times …“an increase in total jobs and income in a region.”.. MNDOT, “Transportation and Economic Development.” …a case in which income and product generated in an area increase. Ten Keys to Using Transportation Investments to Promote Economic Development, David J. Forkenbrock

Economic Development Take a more holistic approach – see the “big picture” Account for temporal aspects Note scale issues

Beyond Cost Benefit Analysis A means to a greater goal and not simply an end Look at a variety of incentives –quality of life, –environmental preservation, –sustainability, –and environmental justice

How is Economic Development Defined? …The achievement of a community’s economic goals via an increase in economic productivity, employment, business activity and improvements to the environment, equity and in other quality of life measures.. Litman, T. Economic Development Impacts of Transportation Demand Management Victoria Transport Policy Institute Page 1

Economic Development Economic Development is More of an Art than a Science Little agreement on how to: –Define the impact area –Assign value to all variables –Determine causality –Account for policy/governance changes

Increase- total jobs and income in a region. Differentiate economic and community development. More Focused Definitions Measuring Economic Development Tiers of Evaluation

Incorporate elements of community development “New Starts” Criteria STEAM Increase- total jobs and income in a region. Differentiate economic and community development. More Focused Definitions    Measuring Economic Development Tiers of Evaluation

Additional Impacts New Starts Criteria –Mobility Improvements –Environmental Benefits –Operating Efficiencies –Cost Effectiveness –Transit Supportive Land Use and Future Patterns –Other Factors (economic impact) FHWAs Surface Transportation Efficiency Analysis Model (STEAM) –evaluate trade-offs between economic benefits and non-monetizable social and environmental impacts

Evaluating development impacts of leveraged partnerships (with local governments) to provide infrastructure catalysts for economic development Objective: bring economic vitality to the state through collaborative efforts of municipal governments and state transportation agencies’ economic development efforts. Incorporate elements of community development “New Starts” Criteria STEAM Increase- total jobs and income in a region. Differentiate economic and community development. More Focused Definitions        More Comprehensive Definitions Measuring Economic Development Tiers of Evaluation

Additional Impacts In latter model, state agencies, together with the local economic development offices, aim to revitalize economic growth by leveraging on economies of scale. Often the local economic development agency is the lead partner Both partners participate in the selection process of economic development–related transportation projects. The state transportation agency is the prime source for funding of construction projects. Among the common elements of program requirements are either compatibility with the state agency’s transportation improvement plans and long-range transportation plans, or job creation and capital investment in the region.

Economic development measures include non- market impacts (ie. human health, environmental quality, equity), versus conventional economic measures Economic development indicators attempt to account for qualitative and non-market values. Evaluating development impacts of leveraged partnerships (with local governments) to provide infrastructure catalysts for economic development Objective: bring economic vitality to the state through collaborative efforts of municipal governments and state transportation agencies’ economic development efforts. Incorporate elements of community development “New Starts” Criteria STEAM Increase- total jobs and income in a region. Differentiate economic and community development. More Focused         More Comprehensive Definitions Measuring Economic Development Tiers of Evaluation

Potential Guidelines Temporal analysis –“Do not let economic conditions affect a future vision” –Lag time between transportation investment and economic development ranges between 2-3 years for short term analysis, 6-8 years for medium term analysis and years for long term analysis

Potential Guidelines Causality (“Do not let economic conditions affect a future vision”) –Transportation projects typically serve areas where economic development activities are already happening –Challenge is defining how much can be attributed directly to infrastructure investment as opposed to location, development of adjacent areas, overall market in locality

Potential Guidelines Planning in advance of transportation projects being built creates additional demand/opportunities –Changes in zoning prior to investment –Demand that occurs because infrastructure investment is planned –“Amend local zoning as necessary”