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Tag: Arizona

Phoenix voters could take extreme action to kill rail transit

Later this month, Phoenix voters will decide whether to ban all future rail transit investment, putting an abrupt end to light rail expansions and dealing a major blow to the city’s and region’s efforts to create a sense of place, attract talent, and grow the economy.

Proposition 105 on Phoenix’s August 27 ballot, if passed, will prohibit the city from spending money on development, construction, expansion, or improvement of light rail transit or other fixed rail transit. Local light rail funding would be diverted to other (auto-centric) transportation projects.

In the near-term the measure’s passage would immediately halt two light rail projects that the region plans to start constructing in the coming year, not to mention the impacts on long-term plans approved by voters in 2015.

The two near-term projects on the chopping block, the South Central extension and the Phase II Northwest extension, would connect major employment and recreation destinations to the region’s light rail system while connecting more residents to high-quality transit. Both projects are scheduled to be completed in 2023.

A radical vision

As with other anti-transit election efforts around the country, this one has financial and logistical backing from the Koch brothers’ Americans for Prosperity. But unlike previous Koch-backed attempts to disrupt local transit funding, Prop 105 takes the fight against transit to new extremes. If approved, the measure would not only cancel all current plans to expand light rail (which voters have repeatedly approved at the ballot box on three separate occasions), but it would also prohibit any future efforts to expand or improve the network.

City leaders are clearly concerned about the potential impacts of the measure. The mayor and all but one city councilors have staked out positions opposing Prop 105. The Greater Phoenix Chamber and many other politically active organizations are also working against the measure.

“The Greater Phoenix Chamber has been a long-time supporter of investing in multimodal regional transit plans that move our city forward by connecting people to their community and to work opportunities,” said Todd Sanders, president of the chamber in a published statement. “The passage of Prop 105 would hinder our city’s progress and our region’s attractiveness as a thriving, modern place to work, live, and play.”

Opposition from business leaders is understandable and hardly surprising. As Phoenix diversifies its economy in knowledge sectors like financial and professional services, public transit is a critical tool to create walkable, vibrant neighborhoods and attract and retain a talented workforce. That’s why cities like Indianapolis, Reno, El Paso, and Albuquerque are investing heavily in new, high-capacity transit systems. It’s a sharp contrast to the future that Prop 105 would create for Phoenix.

Expansion of the light rail system also delivers a more convenient and affordable transportation option for residents who don’t have a car, whether by choice or necessity. It gives low-income residents, people with disabilities, older Americans who can no longer drive, children who can’t yet drive, and everyone else better transportation options.

In addition, investment in rail transit is important to Phoenix’s efforts to change its sprawling land use. Sprawl has big fiscal implications, particularly for this desert metropolis. In order to conserve water and balance the city’s maintenance and infrastructure obligations, city and regional plans have focused on shifting more development toward mixed-use, walkable neighborhoods. Rail transit is a key tool to facilitate that while improving quality of life.

If Phoenix does ban light rail expansion, the region will lose out on billions in federal transit funding. The Federal Transit Administration has already announced its intention to fund the South Central extension, but other cities are waiting in the queue should Phoenix abandon its own transit projects.

Whether Phoenicians are aware of it or not, they are in a race to remain an economically competitive city. By the end of this month, we’ll find out if they’re still on the racecourse.

Phoenix voters approve a plan to raise money for transportation; vastly expand the city’s light rail and bus networks

On Tuesday night, voters in Phoenix, AZ, approved a slight increase in the sales tax to help fund a 35-year, $31.5 billion package to greatly improve and expand Phoenix’s light rail and bus systems, as well as other transportation improvements. The vote is further evidence that voters are willing to tax themselves for transportation — especially when they know what they’re getting.

* Final results won’t be in for a few days but at a 55-45 margin in reported results so far, advocates are claiming victory. -Ed.

The measure on yesterday’s ballot, Proposition 104, will raise $17.3 billion by nearly doubling the current 0.4 percent sales tax that’s currently devoted to transportation, increasing it by 0.3 percent on purchases in the city and devoting those extra dollars to transportation.

The city will use the bulk of the new revenue, plus other money from grants and transit fares, to improve and expand bus service and expand the city’s new light rail system. The plan also includes money for improving streets, sidewalks and bike lanes. The anticipated funding breaks down like this:

  • 55% ($17.5 billion) will go to improve bus service, including $2.9 billion to increase frequency of current service and and $1.9 billion for new bus service.
  • 28% ($8.9 billion) to expanding light rail or high-capacity transit—allowing for 42 new miles of light rail, tripling the current system length.
  • 7% ($2.2 billion) will go toward existing light rail service
  • 7% ($2.4 billion) for city streets, sidewalks, and bike lanes, which includes a plan to add over 1,000 miles of new bike lanes.

Expanding the city’s transit system (and new light rail service) was a core part of incumbent Mayor Greg Stanton’s campaign platform — who also won re-election yesterday. Mayor Stanton has repeatedly stated his belief that a robust transit system was essential for Phoenix’s long-term economic prospects.

“(It will be) getting people to educational opportunities, getting them to jobs, creating economic development opportunities. Bar none, it’s going to be awesome,” Stanton told KTAR news this week.

MovePHX , a local transportation advocacy group that also ran the campaign for Proposition 104, presented a compelling vision to the voters that transit is essential for moving citizens around more effectively and efficiently and for helping the region cope with expected population growth. With a specific plan in place for how and where to invest the money, the voters agreed that a more robust transit system is needed for the city to grow to its full potential.

Phoenix’s light rail system, which began running December 27, 2008, has had over 14.2 million riders so far in [fiscal year] 2015, and the service has been successful in attracting companies to the city that want to be close to reliable transit service to better serve their workers. Companies – like State Farm insurance – have moved to downtown Phoenix in search of a good spot near Phoenix’s light rail system to attract younger workers that like having a convenient transit options.

Votes like Phoenix’s are further evidence that city and state residents are willing to pay for transportation-related projects when they know what they’re getting. Ballot measures for transportation pass about 70 percent of the time, and success (or failure) often correlates with how specific (or vague) the proposal is.

Voters in Seattle and Utah will be going to the ballots over the next few years to vote on similar transportation plans. Seattle-area voters will decide in 2016 whether or not to approve a $15 billion package that will allow the region’s Sound Transit agency to expand light rail there. In Utah, voters (in 12 counties so far) will be deciding this November whether to increase countywide sales taxes to raise new money that can be invested in almost any local need, whether roads, transit, or safer, complete streets.

More and more cities (and states) are seizing the opportunity to raise new money to invest in their ambitious transportation plans crafted to help them stay competitive in the future. Former NYC DOT head Janette Sadik-Khan had a succinct takeaway about the Phoenix vote on Twitter this morning:

State Farm is moving to concentrate thousands of employees in locations near transit

State Farm, one of the country’s largest insurance companies, is betting big on transit in three cities by building or expanding regional hubs on sites with good access to public transportation, reflecting a clear strategy to attract and retain talent who increasingly want to live and work in locations connected by transit.

A State Farm Insurance executive told a crowd in Tempe, AZ, that the company’s decision to build a huge new hub there was directly tied to the nearby availability of light rail and other transportation options that are attractive to recruiting talent.

“We’re designing these workplaces to be the future of State Farm,” chief operating officer Michael Tipsord said at an Arizona State University event. “We’re creating a live-work-play environment that will give employees easy access to their work from the neighboring communities.”

The new hub in Tempe will give State Farm enough space to expand their Phoenix-area workforce from 4,500 to more than 8,000, and will be a ten-minute walk from a Valley Light Rail stop right by Sun Devil stadium at the edge of the Arizona State University campus.

tempe state farm google map location

In Atlanta, State Farm is at the center of an enormous 2.2-million-square-foot development at Perimeter Center, already one of the biggest job hubs in the entire metro region, located immediately adjacent to a MARTA heavy rail station. State Farm’s plan to lease more than 500,000 square feet in a larger development has been making waves in economic development circles in Atlanta. They’re planning to hire another 3,000 employees to augment the 5,000 already in metro Atlanta, bringing new jobs to this region as well.

It’s likely to be part of consolidating workers presently at other sites in far-flung Atlanta suburbs that State Farm has already sold. In a region with notoriously bad traffic and jobs scattered all over the metro area, it’s hard to overstate the significance for Atlanta.

Atlanta State Farm Master planstate farm atlanta hq rendering

North of Dallas in Richardson, TX, State Farm is building a new hub from scratch on the main north-south light rail line that will anchor an enormous new mixed-use development. This site, with room to expand further, is so close to the light rail stop that the executives could probably hit golf balls off the roof of the new buildings and hit the tracks. And at over 2 million square feet of office space, the Dallas Business Journal called it “the largest lease in North Texas history.”

dallas state farm google map location

State Farm is just one of many companies coming to the realization that a key part of recruiting and retaining talented workers is having convenient access to public transportation and being better integrated into nearby communities rather than isolated in a 1970’s style office park.

Though plenty of companies are still located in those office parks and will continue to be, other notable employers are looking to move to the kinds of locations more in demand by their workforce.

Just last week, Marriott hotels, a major employer in the Washington, DC, region, announced they’ll be looking for a new headquarters in the area when the lease expires on their existing suburban campus. And one of the most important things they’ll be looking for in a new HQ as they try to keep up in the race for attracting talent?

“I think it’s essential we be accessible to Metro and that limits the options. I think as with many other things our younger folks are more inclined to be Metro-accessible and more urban,” chief executive Arne M. Sorenson told the Washington Post.

Expect more news like this in the coming months and years as more companies realize that locating in vibrant, walkable areas with good transit options are not only good for business, it’s critical for the companies trying to stay competitive.