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Stories You May Have Missed – Week of December 8th

As a valued member, Transportation for America is dedicated to providing you pertinent information. This includes news articles to inform your work. Check out a list of stories you may have missed last week.

  • President Trump will apparently release his infrastructure plan in January. (Bloomberg)
  • U.S. Sets January Push for $1 Trillion Infrastructure Revamp. (Wall Street Journal)
  • After his tax bill becomes law, President Trump is looking to localities to raise revenue for infrastructure. (Washington Post)
  • Governing Magazine explores “how small cities can attract and keep millennials.” (Governing Magazine)
  • “San Francisco is now the first U.S. city to implement a surge pricing program at all of its meters, parking garages and city-owned lots.” (Smart Cities Dive)
  • Streetsblog explores how the United States, unlike Europe, has not implemented any safety regulations for cars to reduce the likelihood of death or severe injury in automobile crashes involving pedestrians or cyclists. (Streetsblog)

As transit becomes ‘must-have economic development tool,’ will Congress help?

An excellent piece in the Washington Post this morning caught up to the topic we have been raising here for some time: Good transit service and walkable locations with nearby places to live, eat and shop are essential for economic development in today’s world. Which makes us wonder: Is Congress listening?

Recalling that Marriott’s chief executive recently expressed a desire to locate near Metro rail, reporters Katherine Shaver and Bill Turque wrote:

Marriott’s announcement is the latest sign that mass transit, once viewed as a prescription for traffic congestion, is now considered a must-have economic development tool to attract millennials — the country’s largest living generation — along with their employers, and the taxes that both contribute to local governments. Adding to the demand is the country’s second-largest demographic group: empty-nest baby boomers seeking to downsize in the suburbs and drive less as they grow older.

As regular readers are well aware, Congress must find money to renew the federal transportation program this year, ostensibly by May 31 (though an extension of the law itself is all but inevitable). In doing so, lawmakers can either help or hurt communities, like those discussed in the story, that are lining up for very limited dollars for transit, TIGER and the like — money that can help them prepare their communities for economic success.

They are doing so in large part because they are continually hearing messages like this one from Stephen P. Joyce, Choice Hotels’ chief executive, quoted in the Post:

If you’re a suburban employer and you want to be relevant to people who want to live in urban locations, you’ve got to think mass transit,” Joyce said. “I can’t compete unless they can get to us without driving.

Henry Bernstein, a longtime economic development official who is now an executive in a commercial real estate firm in Rockville, MD, explains why: “This generation wants more things at their fingertips, rather than having to jump in a car to get to the mall or go eat. I truly believe any community that doesn’t have these things will fail.”

The Post story comes the same month that State Farm officials announced they would consolidate employees in three cities at regional hubs on sites with rail transit. “We’re designing these workplaces to be the future of State Farm,” chief operating officer Michael Tipsord said. “We’re creating a live-work-play environment that will give employees easy access to their work from the neighboring communities.”

Among the possible solutions within the federal program is the Innovation in Surface Transportation Act, introduced in both the House and Senate this month by a bipartisan group of lawmakers. It would give a major boost by allowing local communities more access to federal dollars flowing to their state, but there is so much more that could be done with more robust transit funding and more flexible use of existing dollars.

Here’s hoping that Congress is paying attention, and that the next federal program will provide local communities more access to the funds they need to meet the needs of today’s economy.

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.

Transit still more popular with millennials, despite their upbringing

One of the deepest studies of attitudes about public transportation, published yesterday, finds that core fundamentals like speed, reliability and cost are far more important to millennials than wi-fi or smartphone apps. They’re open to riding it even more, but like everyone else, find that there just aren’t enough neighborhoods being built that have great transit options.

Flickr Creative Commons photo by wowwzers.

Flickr Creative Commons photo by wowwzers.

Our own recent poll explored the attitudes of millennials in relation to cities and their general positive attitudes about public transportation, but this terrific survey from TransitCenter goes even deeper with questions to people of all ages from all over the country on what they think of transit and where they live as a whole.

What type of neighborhood are they currently living in? What type of neighborhood would they like to live in? What is the ideal type of neighborhood to live and raise a family in? How does one make a decision to change how he or she gets around?

According to this 12,000-person survey by TransitCenter, a civic philanthropy, unsurprisingly, people under age 30 use public transportation the most, across the 46 metros surveyed. They looked at a variety of places that broke into two distinct categories; metros considered “transit progressive” akin to San Francisco or Washington, D.C., or “transit deficient,” like Little Rock, Arkansas and El Paso, Texas. Age was the greatest factor overall, non-dependent on region, education level, or income.

One of the more interesting findings in the report was that “there is no unique ‘cultural bias’ against transit in [the South, Midwest], and that if you build a quality transit system (and the land use is supportive), people will ride it no matter where they are from.”

While it’s been proven that younger generations are most likely to use public transportation, it’s largely happening in contrast to their upbringing. The report shows that millennials were less likely to: have been encouraged to walk or bike by their parents, to have grown up within walking or biking distance of a commercial district, and less likely to have traveled by themselves on public transit as children. In fact, 39 percent of them said their parents thought it was unsafe for them to ride transit.

This shows a huge generational shift (though maybe just an insight to human nature) from their Baby Boomer parents who grew up in denser urban neighborhoods and might have used transit as children. The over-60 group is now the least likely group to want to live in urban areas and rides public transit the least. As the report states, “Put simply, Baby Boomers don’t live in – and largely don’t want to live in – places well-served by transit.”

Data Who's On Board

Some surprising findings upended the conventional wisdom that’s been reported about millennials. Better smartphone apps or wi-fi on their buses or trains are near the top of the list of things that would induce them to ride more often, right? Nope. Across every single age group, the fundamentals were the most important consideration of all: quicker trips (speed), more stations near them, cheaper, and more reliable than other options.

The findings on housing confirmed much of what’s been reported by Smart Growth America, the National Association of Realtors, and a handful of other recent polls: the market is not building enough of the kind of neighborhood that is in the highest demand these days.

TransitCenter found that 58 percent of all respondents wanted to live in neighborhoods that consisted of a mixed use between housing, retail, offices, and restaurants that provided a variety of options to get around including public transportation and safe walkable streets. However, only 39 percent currently live in such a neighborhood, creating a huge demand for this ‘ideal’ neighborhood.

Meeting the demand for that type of neighborhood — especially in places connected to today’s or tomorrow’s transit lines — will create a positive feedback loop of boosting ridership. Supply more neighborhoods connected to transit, and you’ll create more riders out of the people who say they’d ride it if they could, but don’t live somewhere it’s available.

While a majority of Americans may not necessarily want to live downtown in a big city, they do want their neighborhoods to transform into better towns or suburbs centered around a mix of uses with more options for getting around.

The findings in this smart survey should inform the elected officials, commissioners, and policy advocates planning for the needs of our growing and diversifying population in towns and cities of all sizes.