Another Reason Why The Downtown Street Car Will Be a Success!

This Sunday's New York Times evaluates the economic impact of Phoenix's new light rail system which is based upon the same economic development model as the system being built in Downtown Los Angeles.

Their rail line connects Phoenix's different downtown districts in the way ours will link South Park's Staples Arena, Grammy Museum, LA Live and Convention Center to the almost twenty theaters in the extended Broadway theater district - and to Historic Downtown's Gallery Row, Fashion Walk and bars and restaurants before it finally connects with Bunker Hill's Music Center, MOCA, Disney Hall and Grand Avenue Project and Park.

And to the surprise of many in Phoenix, their new light rail has created a local economic boom while the rest of the city continues in a serious economic decline. The good news for LA is that riders in Phoenix are flocking to a system that has a lot fewer attractions along it than we have and it does so in a Downtown with far less density, considerably fewer tourists, a fraction of the residents and comparatively fewer potential riders of ever kind compared to Downtown LA.

Phoenix also does not have our growing concentration of high rise offices and high rise residential buildings all along their line that will attract far more rush hour commuters to LA's system - nor does it have a connection to a growing regional rail sysem.

The Phoenix light rail design is also a little less user friendly than LA's streetcar model which allows you step right from the curb into the car. The far shorter construction method of our model also means local businesses will not have to suffer through an extended construction period as they did in Phoenix (and have done in past traditional light rail projects in LA) - to reap all the economic benefits.

And the success of the Phoenix system increasingly makes it even more certain Councilman Jose Huizar's decision to champion this project will be one of the few economic development projects in Los Angeles in years to create substantial numbers of jobs awhile also raising tax revenues, benefiting both the residents and tax payers of Los Angeles.

And at a time too many economic development projects in LA - and particularly in Downtown - are still largely designed to provide high paying jobs for politically connected consultants and contractors, hopefully the success of this project - and the hoped for success of the overall Bringing Back Broadway Project - will demonstrate that with the right leadership, our city can accomplish the types of genuine economic development projects every city but LA seems to be able to regularly initiate and complete.

http://www.nytimes.com/2009/09/20/us/20rail.html?hpw

September 20, 2009
In Phoenix, Weekend Users Make Light Rail a Success

By JENNIFER STEINHAUER New York Times
PHOENIX — Among the many detractors — and they were multitudinous — who thought a light rail line in this sprawling city would be a riderless $1 billion failure was Starlee Rhoades, the spokeswoman for the Goldwater Institute, a vocal critic of the rail’s expense. “I’ve taken it,” Ms. Rhoades said, slightly sheepishly. “It’s useful.”

She and her colleagues still think the rail is oversubsidized, but in terms of predictions of failure, she said, “We don’t dwell.”

The light rail here, which opened in December, has been a greater success than its proponents thought it would be, but not quite the way they envisioned. Unlike the rest of the country’s public transportation systems, which are used principally by commuters, the 20 miles of light rail here stretching from central Phoenix to Mesa and Tempe is used largely by people going to restaurants, bars, ball games and cultural events downtown.

The rail was projected to attract 26,000 riders per day, but the number is closer to 33,000, boosted in large part by weekend riders. Only 27 percent use the train for work, according to its operator, compared with 60 percent of other public transit users on average nationwide.

In some part thanks to the new system, downtown Phoenix appears to be one of the few bright spots in an otherwise economically pummeled city, which like the rest of Arizona has suffered under the crushing slide of the state’s economy. The state, for years almost totally dependent on growth, has one of the deepest budget deficits in the country.

In the first quarter of 2009, downtown Phoenix saw its revenues increase 13 percent, while the rest of the city saw a fall of 16 percent, according to Eric Johnson, a redevelopment program manager for the city’s Community and Economic Development Department. (Businesses along the line suffered greatly during the many years of construction, it should be noted.)

“It is bringing us new customers who didn’t have time to get in the car and drive out here before,” said Joel Miller, a co-owner of Maizies Cafe and Bistro, which sits right along the rail line.

The gaggle of light rail users — including Arizona State University students, who use a line that connects its Tempe campus with the downtown campus — have given a small part of the city a new, dense connectivity that was more or less unheard of in the city two years ago. Pub crawls along the light rail have become a weekend staple, and restaurants have seen new customers from outside the neighborhood popping in off the line for brunch on the weekends.

“I think the biggest impact of the light rail is less tangible,” said Matt Poolin, owner of Matt’s Big Breakfast, a busy spot along the line, “which is that it really improves the image and perception of Phoenix’s downtown, which, although experiencing a significant renaissance in recent years, still is undergoing many improvements and changes. The light rail, largely because it is so well run and nicely appointed, is something that I think most people are really proud of and feel positive about. It is rare to hear anyone complain, despite all of the controversy.”

The controversy was largely attached to the rail line’s cost — $1.4 billion — and the relatively low ticket price — $1.75 each way, with all-day passes for $3.50 and discounted rates for longer-term passes. In a city with low density, miles of suburban sprawl to the east and west of downtown and a historical lack of passion for public transportation, the rail line, one of the nation’s 36 systems, seemed like a white elephant.

But its development over the last decade coincided with the city’s expansion of the downtown convention center, the rise of the new A.S.U. campus and the booming commercial and residential real estate market that helped fuel the growth of Phoenix, downtown and elsewhere, earlier in the decade. Since 2001, when the tax for the new rail line was approved, there has been about $5 billion in public and private investment — $3.5 billion of it private — around the site of the light rail, the city’s development agency spokesman said.

Valley Metro, the line’s operator, hopes to add 37 miles toward Glendale and northeast Phoenix, breaking ground in 2012 and completing the extensions by 2017.

“We would like to see a financial audit before they expand,” said Ms. Rhoades of the conservative Goldwater Institute, echoing those who have been critical of the expense. “We are also proponents of paying your own way, and we think the light rail remains too subsidized.”

The hooting of an oncoming sleek new train is a sound many in Phoenix are still becoming used to, but it has given the city a distinctly modern feel. “There has been this pent-up demand for downtown Phoenix to grow up,” said Nick Bastian, a real estate agent in the city who has developed a blog devoted to light rail news. “And the light rail has given people an excuse to say let’s go down there and check it out.”