From: "Friends of Transit NEWS" To: Subject: Report Shows Light Rail System Could Boost Development Date: Sunday, June 09, 2002 11:37 PM Report Shows Light Rail System Could Boost Development Light rail is one of the solutions to help with our transportation problems here in the Valley, but according to national real estate experts, it could also help stimulate economic development along the rail line. According to a report just released by the Urban Land Institute (ULI), one of the world's most respected urban planning and land use organizations, light rail stations will be catalysts for development in the region and could help revitalize the Central Phoenix core. The report, funded through a public/private partnership between the City of Phoenix and the ULI, found that "light rail has the potential to transform the areas within walking distance of the stations into special places that will enrich regional urban life." The report stated that Phoenix can expect a similar positive experience as other cities with existing light rail systems, such as Portland and Dallas, whose light rail systems have actually paid for themselves in the economic development they have generated. The average premium in value for properties with proximity to light rail stations is 5-10 percent over time, ULI reported. While the ULIreport added that economic development around the light rail stations can take time, it can also have a "snowball effect" on future development. "We are excited about the opportunities identified by ULI for economic development in Phoenix as a result of the light rail line," said Patrick Grady, Phoenix's director of economic development. "Light rail is an asset that will help us promote Phoenix - and the area around the rail line in particular - as a great place to live and to do business." According to the ULI panel, the area surrounding the light rail station at Central Avenue and Camelback Road, which connects the two most prestigious and highly-traveled streets in the Valley, has the most potential for development triggered by light rail. "The demographics of this area support a mixed-use development," said Grady. "We have already had some developer interest at this corner and we believe this station will be one to watch." The panel also identified several other key areas that have a good potential for transit-oriented development, including stations along Central Avenue and near the airport between 22nd and 40th streets on Washington Street. The report cited the area around Washington and 22nd streets as having "enormous short-term and long-term potential" and attributed this strength to Sky Harbor's growing volume and presence as well as its proximity to downtown, and forecasted this area to be prime for hotel, restaurant and office development. "As a leader in supporting responsible land use planning, ULI Arizona was interested in participating with Phoenix on the Light Rail Project to ensure that every advantage is taken to maximize light rail's potential to create and revitalize centers for pedestrians and help raise our urban environment to the next level," said ULI Arizona President Gina Trimble. "We really wanted to be involved in something that is an opportunity for the Phoenix metro area to develop an example of excellent planning and development." The ULI panel praised the City of Phoenix's efforts to begin dedicating efforts to light rail economic development now, before the system opens in late 2006. Those efforts include assigning staff to stimulate economic development around light rail stations and integrating comprehensive transit-oriented development planning into its General Plan. "We believe light rail will be a win-win for our community," said Alton Washington, City of Phoenix special assistant city manager. "Not only will it provide more transportation options, but it can be a catalyst to stimulate development that is pedestrian friendly." Other ULI findings and recommendations included: The City should take bold steps to promote intense development around the stations at Camelback Road/Central Avenue and 19th Avenue/Bethany Home Road. Phoenix should emphasize neighborhood preservation around Midtown stations and establish improved pedestrian connections between light rail stations and neighborhoods. Developers should be offered incentives for transit-oriented development, including reduced or delayed development fees, a streamlined permitting process, enhanced financing tools and land assemblage. "We are developing an action plan to implement ULI's recommendations in a way that makes sense for our community," Grady said. "We will be working closely with the community to ensure that any new development enhances the existing neighborhoods along the light rail line." Established in 1936, ULI is recognized as one of North America's most respected sources of objective information on urban planning, growth and development. The ULI panel members assigned to the Light Rail Project study included 10 national experts in planning, design, real estate development and financing and were selected for their expertise on light rail economic development. In addition to reviewing market data and studies, the group spent a week interviewing more than 100 local community and business leaders to provide insight into the area's unique planning and development challenges and opportunities. The 20.3-mile starter segment of the light rail line is scheduled to begin construction in 2003 and start operations in late 2006. The initial route begins in Phoenix at 19th Avenue and Bethany Home Road, travels through downtown Phoenix and Tempe and about a mile into Mesa, ending at Longmore and Main streets.