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

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As the Curtain Rose on the 20 th Century

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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

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

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

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Sample Asset: Accessibility

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Mapping the Asset Regionally

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Showing the Benefits of Capturing the Value

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This Could Also Work in Cleveland Vehicles/Household Household Density

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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

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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

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Driven to Debt Studies show that transportation costs are second after housing In Chicago, housing costs 36% of HH expenses, transportation 16.3% Together, thats 52.3% of expenses

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Transportation is the Highest HH Cost After Housing

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Buy Cars or Build Wealth?

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Zero Percent Loans Drive Economy: Detroit Free Press, August 2002

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

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

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Auto Oriented Transit 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

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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

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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

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Auto Oriented Transit

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City Elevated Stop

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Diverse Land Uses and Walkability

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Older Suburban Downtown Improvements: Two Story Grocery and Pedestrian Friendly

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

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Crane Station: Whats In Process at 240 Suburban Rail Stops in Chicago

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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 differencehalf the households in Cleveland have one vehicle more than their cohorts in Chicago

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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

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While Some Assets Get Reused

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Households Growing Faster than Housing Stock

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Sample Benefits: Infrastructure and Rights of Way

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Sample Benefits: Underutilized Infrastructure and Resource Efficiency

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Sample Benefits: Resource Efficiency and Collective Efficacy

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Beating the Last Mile w/ WiFi: Using Technology to Reconnect a Regions Communities

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How We Travel Between Cities

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

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Percent of Flights Under 500 Miles

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

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A Disconnected Vision

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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 OHare, Providence backs up Logan Improved and connected regional transit to reduce landside access by car

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Starting to Reconnect America

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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

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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

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

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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

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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

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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

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