20
August 24, 2015
Ms. Tina Shannon City of South Lake Tahoe Socio-Economic Impacts of Vacation Home Rentals 1901 Airport Road South Lake Tahoe, CA 96150
Reference: Request for Proposal (RFP) Socio-Economic Housing Study
Dear Ms. Shannon:
This introduction cover letter is attached with information about the appraiser Liam K Cunningham and his appraisal firm LNM Equity Associates LLC, relating to the submission for the bid for the above reference Request for Proposal (RFP) Socio-Economic Housing Study.
Liam K Cunningham is an experienced Certified General Appraiser and Transportation Planner, with the compatibility to write high end residential, commercial and eminent domain project, estate, economic impact studies, housing studies, probate, and trust appraisal assignments .
Included in the bid is: Company history and experience with Socio-Economic Impact Studies, Scope of Work, description of other studies completed, and a budget and time frame when key elements will be completed.
Also included in the bid package is a list of completed commercial assignments, right of way projects, and current resume.
If after you have reviewed the package, and need additional information regarding my appraisal firm, please contact me.
LNM Equity Associates LLC is looking for a mutually beneficial business arrangement with you and the City of South Lake Tahoe.
Regards;
LA~~ Liam Cunningham, President LNM Equity Associates LLC MS Urban Studies Certified General Appraiser CA AG044398 Enclosure
Statement of Qualification
LNM EQUITY ASSOCIATES LLC Is a full service appraisal-planning firm provides both private and public clients with expertise in Right of Way Projects, Commercial Appraisal Reports, Economic Impact Studies, and Housing Planning Reports. The following attached information will be about the appraisers Liam K Cunningham, President of LNM Equity Associates LLC and Judy Dowdy (SRA), Senior Appraiser for LNM Equity Associates LLC. Both Liam K Cunningham and Judy Dowdy are experienced Certified General Appraisers and have the competency to write high end residentia~ commercial and eminent domain project, estate, economic impact studies, probate, and trust appraisal assignments. For your review, please see the attached completed right of way projects list for similar type of appraisal assignments including their current resume.
Liam K Cunningham served as an expert witness in various areas of litigation and arbitration practice including z.oning issues and disputes, dispute management, mediation, appraisal methodology, damages and eminent domain matters. As part of his service, he has prepared use irqJact studies, highest and best use studies, feasibility studies, cost estimates, estimates of just co~ensation, leasehold interests and leased fee interests. In addition to the above services, he has provided documented appraisals for financial institutions, corporations, developers, municipalities, governmental agencies, law firms, and private individuals.
Judy Dowdy, who lives at16947 Skislope Way Truckee CA 96161, is the only Designated SRA in the Lake Tahoe area currently. Appraisal assignments completed are both commercial and residential for serval banks who are main lenders in the Lake Tahoe Region. Also has been an expert witness in various areas of litigation and arbitration.
The following is a list of Public Works Departments and one major lender that LNM Equity Associates LLC is on either the right of way approved appraisal list, or high end residential mortgage department list::
1) California Water 2) Me reed Irrigation District (MID) Lyon 115kV P/L Project (Corre nt Project) 3) County of Contra Costa Public Works Department 4) U.S. Bank, Red Sky Risk Service (RSRS) Minneapolis, MN 5) City of Santa Rose Public Works Department
EXECUTIVE SUMMARY
REQUEST FOR PROPOSALS RFP # 2015-09-15
Socio-Economic Impacts of Vacation Home Rentals (VHR)
The City of South Lake Tahoe is seeking to contract with a Consultant to prepare a Socio-Economic Impact Study of Vacation Home Rentals (VHR) using an academic and holistic approach. The comprehensive, unbiased report shall assess how VHR's impact the City, community, housing market and day-to-day quality of life for residents
Executive Summary Introduction
The Socio-Economic Impact Study of Vacation Home Rentals was commissioned by the City of South Tahoe to conduct a comprehensive city-wide market study VHR. The objective of this analysis is to identify a set of strategic recommendations for future growth and investment in the City overall, and in particular, in three targeted redevelopment areas:
1. Demographics (population, age, income) which create the demand for various uses. 2. What' s happening in the real estate market (e.g. market/economic reality) for all use? 3. Identifies a set of strategic recommendations for future development and business opportunities
that are realistic and suited to the community.
The Executive Summary will serve as an overview of the full report, explaining the direction and recommendation for the city to follow. It will also show the type of detailed methodology and analyses for The Socio-Economic Impact Study of Vacation Home Rentals. The study will help the City of South Lake Tahoe understand the market direction for VHR going forward at least ten years .
Scope of Service
It will be a background assessment summarizes relevant findings from existing reports and ordinances, visits , and ample project outreach. Public outreach conducted significant public outreach including shareholder interviews, public meeting with keypad polling, focus groups, a professionally conducted residential phone survey, and an online employer survey. Public sentiment was incorporated into the findings. Socio-Economic & Social Infrastructure analysis examined estimated and projected trends in population growth, household formation, household income, occupational employment, and age cohort characteristics, and how these trends might influence real estate demand. Included is assessing the adequacy of existing social infrastructure indicators included are stores, child care, open space, and housing quality).
Real Estate Supply and Demand Analysis identified prospective areas of unmet demand for land-use types within primary market areas. This also includes key findings regarding real trends - local supply, demand, occupancy, and pricing factors .
An Economic Impact Analysis conducted an economic impact analysis, using IMPLAN 3.0 (an input model) to measure the impact of installing sewers if needed in the City of South Lake Tahoe.
Redevelopment Opportunity Prioritization utilizing GIS technology, combined with real property assessment value zoning data, prioritized sites having near-term and long-term valuated included those having improvement-to-land value and areas identified by the Town as likely to redevelopment
opportunities. Financial Analysis of Key Redevelopment Sites conducted a financial feasibility analyses on four sites, identified by having likely redevelopment potential The purpose is to determine the mix (e.g., residentia4 retai4 and/or office) and minimum development (e.g., units of housing and commercial
square footage) which could be financially viable.
Project Time line
1. Town hall meeting to get feedback from the community.
2. Survey of current housing stock, including vacation homes.
3. Economic impact survey o current infrastructure
4. Tax base analysis
List of Housing Studies
Below is a list of land use-house studies that Liam Cunningham has been involved with, along with the agency that Liam Cunningham was working for at the time of the study.
NEPA-Alliance Northeastern Pennsylvania Alliance 1151 Oak Street Pittston, PA 18640-3726 Phone: 570.655.5581 httpJ/www.nepa-alliance.org
Starting May 1990 to December 1991, I worked at NEPA-Alliance has a student planning assistant. Some of the projects I was involved with in respect to housing issues were the following:
1) City of Wilkes-Barra Fair Housing Study (1991) 2) Township of Tobyhanna Master Plan(l990)
One element in the Tobyhanna Master Plan was discussing issues around is the township going to remain mostly summer-winter rentals. Or is that segment of the housing market going to become full time residents. Because Tobyhanna Township is the heart of the Pocono Mountains, it faced decisions on how handle the increase road traffic and retail demand.
Department of Economic Development Nebraska 301 Centennial Mall South Lincoln NE 402 471-3778
Starting in November 1995 until August 1999, while fmishing up my Master in Urban Studies I was an Housing Intern Department of Economic Development Nebraska in the Rural Housing Unit. Developing a tracking system for the "HOME POGRAM, which helps analyzed and developed planning reports that pertained to housing issues in rural Nebraska. The HOME PROGRAM, was administrated under the Nebraska Affordable Housing Trust Fund (NAHTF).
Caltrans District 4 111 Grand Ave Oakland CA 94612
Starting in 09-2001 until 09-2009 I was a Transportation Planner in the Regional Planning Branch. My
main function was to administrate-lead planner for the Overall Work Program (OWP). However some
other duties involved the list below of land use-housing studies.
1) 04/05, Bay Area Corridor Planning Program (PP)
Beth Thomas Lead Planner
2) 05/06, BART Strategic Station Assessment (5304)
Becky Frank Lead Planner (510) 286-5536
3) 05106, San Mateo County Transit TOD Opportunity Studies (5304)
Beth Thomas * Lead Planner
4) 06/07, Focusing Our Vision (Bay Area Regional Blueprint)
Beth Thomas Lead Planner
While workfilg has lead planner for the Overall Work Program (OWP) I administrate the land use
housing studies listed above. It should be noted that Beth Thomas no longer is employed with Caltrans,
but is principle planner for the City of Berkeley(*). The San Mateo County Transit TOD Opportunity
Studies, I attended meetings and help write and review the housing element of that study.
Also, I used information from that study to do a research paper for one of elements towards my Member
Appraisal Institute (MAI) designation. Then I had that research paper published in the International Right
of Way Association (IWRA) September-October (2010) magazine. I included in the bid a copy of the
published research paper.
Contact information for land use-housing studies.
Becky Frank Lead Planner (510) 286-5536
Blesilda Gebreyesus District Branch Chief Regional Planning & Native American Liaison Office of Regional Planning Caltrans District 4 510-286-5575 111 Grand Ave Oakland CA 94612
Beth Thomas Principle Planner Department of Transport City of Berkeley Public Works Department 2180 Milvia Street, Berkeley, CA 94704 (510) 981-7068 Email: [email protected]
Socio-Economic Impact Study VHR Proposal Budget
Consultant's hourly rate charge
Liam Cunillngham $150 an hour
Principle Planner Runillng Town Hall Meetings, reviewing total housing stick, and economic analysis
(130) hours x $150.00 an hour = $19,500
Judy Dowdy $125 an hour
Researching and writing housing stock element (65) Hours x $125 an Hour = $6,250
Monette Toverada $75.00 .an hour
Editing-reviewing documents and other related items for packaging the fmal report
(45) Hours x $75.00 an Hour = $3,375.00
Cost of coping $1400
Motels and travel time $3000
Miscellaneous $1700
Other related expenses $1000
Total VHR Proposal Budget $36,225.00 Rounded $37,000.00
RIGHT OF WAY /SPECIAL ASSIGNMENTS PROJECTS
New South Merced 115-kV Transmission Line
Project Description
Merced Irrigation District (MID) plans to extend its transmission line to serve customers in the southern and eastern portions of the City of Merced. The proposed New South Merced 115-kVTransmission Line will go from Tower Road and Gerard Avenue, and then running approximately 14 miles to Highway 99 at Franklin Road. Currently MID is looking at two different routes for the New South Merced 115-kV Transmission Line. The purpose of this report is to estimate the cost and budget for the project in (two phases). The values indicated for land per acre on the different type of land use will show a range of value from low to high. Because this is an estimation of the cost and budget for the project, price per acre range will fall towards the middle value.
1. Thornton Bulge 2. Franklin Alignment 3. Thornton Alignment
See attached map in the addendum section for more information about the different routes. This Cost Analysis Budget Report will concentrate on the Thornton Bulge and Franklin Alignment section of the Project, or (Phase one). This will help assist MID in choosing the most economic route for the project. Liam Cunningham was the lead appraiser and wrote this economic appraisal report for MID. Mr. Cunningham so far has attended several meetings with the engineers ' who are project managers forthe New South Merced 115-kV Transmission Line. Currently MID is waiting for the final approval of the Environmental Impact Study (EIS). When the EIS is completed, Liam Cunningham will be lead appraiser on the parcels involved in the project, and attend any required meeting.
Mr. David Chan Properties
Liam Cunningham was engaged in the appraisal assignment by Mr. David Chan for Probate appraisals on the following three properties in January 2014. In was written has a retrospective appraisal reflecting the Date of Death on a family member.
1. Chan Truse 1985 1855 Washington Avenue San Francisco CA (16 rental units)
2. Kwan Lilly W Revocable Trust 241 Francisco Street San Francisco CA (5 rental units)
3. Kwan Lilly W Revocable Trust 1188 Clay Street San Francisco CA (7 rental units)
Lincoln Highway 50 Lancaster County Number of Parcel 1
Total taking of (1) parcel which was a storage facility has an estimated total value of $245,000 for both property and building. The property was located on East Highway 50, or 0 Street, Lincoln Nebraska. Nebraska Department of Roads was installing new sewer lines along Highway 50. Liam Cunningham was the lead appraiser and wrote the appraisal report. He also attending any meetings associated with
the project.
San Mateo Transit-Oriented Development Opportunity Study Prepared for the San Mateo County Transit District (SAMTRANS) July 2007 San Carlos California
The old railroad station located in the downtown section of Redwood City, California, was underutilized and was becoming an eye sore. In 2007, the San Mateo Transit District (SAMTRANS) completed a study referred to as the San Mateo Transit-Oriented Development Opportunity Study. The purpose of this study was to determine how to get this old station to be an active part of the city again. The Redwood City
railroad station was one of eighteen railroad stations being studied by SAMTRANS. This study was funded under the Federal Transit Authority (FTA) State Planning and Research Projects (Section 5313[b]) through California Department of Transportation (Caltrans) and the Metropolitan Transportation Commission (MTC). The San Mateo County Transit-Oriented Development (TOD) Opportunity Study assesses opportunities and constraints and includes action plans for advancing TOD adjacent to Caltrans and Bay Area Rapid Transit (BART) stations in San Mateo County. Liam Cunningham was lead
appraiser for this project and was responsible for developing all real estate data associated with the project.
Beaver City Nebraska Number of parcels 55 Highway 89 Furnas County
Nebraska Department of Roads was widening and straightening out the roadway on highway 89 or Floyd Street to Road 431 in Beaver City for safety reasons. The project involved 36 properties or parcels that were being appraised for permanent easements or temporary easements along highway 89 during construction. These easements were located on property that was either agricultural or commercial. The value of each temporary easement was around $500 for agricultural, to $1 ,200 per tract for temporary
easements for commercial properties. Whereas, the permanent easements for agricultural was around
$800 per parcel, to $2,500 per parcel for commercial properties. The additional 19 parcels were the following. On the north corner of highway 89 and highway 283, ATT had a wire junction building. This
building had to be relocated. Fourteen tracts involved buying 10 to 15 feet of property from the edge of roadway. It also involved the following damages, fencing, irrigation piping, and a number of mature pine trees. The value of these tracts ran from $3,000 to $5,500. The remaining ( 4) tracts were total takings and (2) tracts where vacant agricultural land, whereas the other two tracts were commercial buildings. One building was a city garage building, and the other was a residential property. Other damages involved in the project were estimating valuing on fencing and water irrigation equipment. Liam Cunningham was the lead appraiser and wrote all appraisals reports, along with attending any
meetings associated with the project.
West Point Highway 275 Cuming County Number of parcel 1
Total taking of (1) parcel which was a pig raising barn, estimated total value for land around (20) acres and barn is: $35,000. It also involved relocation of about 50 pigs. Liam Cunningham was the lead appraiser and wrote the appraisal report. He also attending any meetings associated with the project.
Ponca State Park Newcastle State Spur 26 East Dixon County Number of parcels 5
Nebraska Department of Roads was straightening out State Spur 2 East to make it easier to drive to the Ponca State Park. Five tracts were used for permanent easement during construction use. The properties involved were all agricultural land. The value was between $350.00 an acre to $550.00 an acre. Nine tracts involved taking approximately 15 feet of property from the edge of roadway. Also involved in these (14) tracts was valuing fence damage. One tract involved full taking of a barn that was about 100 years old. Included in this taking was moving or relocating farm equipment. Liam Cunningham was the lead appraiser and wrote all appraisal reports . He also attending any meetings associated with the project.
Omaha Interstate 80 Douglas County Number of parcels 20
The project involved taking or buying 20 feet of property from the edge of interstate 80 along (9) tracts. These (9) tracts were located in a new commercial business park. The value was $3.00 to $3 .50 per square foot of road frontage . This project also involved moving an A TT fiber optic cable. Liam Cunningham was the lead appraiser and wrote all appraisal reports. He also attending any meetings associated with the project.
South Sioux City Highway 77 Dakota County Number of parcels 12
This project involved (12) parcels that was located on Highway 77, between west 29th Street and west 25th Street. The traffic lights on both streets were being changed for expansion and safety. Ten tracts involved in this project were taking approximately 20 feet of the property frontage to expand the intersection. Two tracts were complete takings, with one being a three unit commercial building. The price per square foot was between $3 .50 Sq. Ft. to $5.50 Sq. Ft. The approximate value of the property with the building was $250,000.00 Liam Cunningham was the lead appraiser and wrote all appraisal reports. He also attending any meetings associated with the project.
EDUCATION
LIAM K. CUNNINGHAM 555 Rincon Ave
Livermore, CA. 94551
University of Nebraska, Omaha, NE Master of Science in Urban Studies 2001
King's College, Wilkes Barre, PA Bachelor of Arts in Economics 1992
RELEVANT EXPERIENCE
June 2010 - Current
September 2001 -October 2009
December 1996 -August 2001
REFERENCES
LNM Equity Associates LLC, Livermore, CA
President Certified General Appraiser
An experience Certified General Real Estate Appraiser specializing in residential, commercial, and eminent domain. With a client's list of a variety of banks, private land owners or homeowners, government entities ', while completing appraisals reports that are either open space land, offices buildings, industrial buildings, retail space, or eminent domain. Train and review appraisal assignments of staff appraise. Maintain client relationship and office personnel.
CALIFORNIA DEPARTMENT OF TRANSPORTATION, Oakland, CA
System and Regional Planning Associate Transportation Planner
Project Manager for the Overall Work Program (OWP) and budget describing all anticipated tasks, work products for project-by-project basis and funding "in excess of 30M annually" information including federal grants that finance the planning and programming policies. Other assignments included reviewing the environmental justice Grants for District 4, the highway expansion plans (Rt. 580) and on the committee for the San Mateo County Transit Oriented Development Plan.
NEBRASKA DEPARTMENT OF ROADS, Lincoln, NE RIGHT OF WAY DIVISION
Right-of-Way Appraiser
Worked as a Right-of-Way appraiser on site development for highway acquisition and expansion. Types of property appraised include rural, farmland, commercial, surplus land, industrial, railroad, and residential. Expertise in reading highway plans and engineer design reports. This involved site inspections and negotiations with property owners, along with preparation of cost estimate for site development.
An expert witness in court for the state of Nebraska Department of Roads for the following projects: Highway 89 Beaver City project, whereas Beaver City and several properties owners along Highway 89 took the Nebraska Department of Roads Appraisal Division to court regarding appraisal values. The project located in South Sioux City on Dakota Ave., two property owners contested the appraised value. Finally, a project located on Interstate 80 in Omaha, ATT sued the state on appraisal value and comprehension over fiber optics right of way access.
Available upon request.
Genera/Star™ General Star National Insurance Company
P 0 Box 10360 (Attn: GSN) Stamford, Connecticut 06904
REAL ESTATE APPRAISERS ERRORS & OMISSIONS INSURANCE POLICY
DECLARATIONS PAGE This is a claims made and reported policy. Please read this policy and all endorsements and attachments carefully.
Policy Number: NJA859308C
1. NAMED INSURED: Liam Cunningham STREET ADDRESS: 555 Rincon Avenue
Livermore, CA 94551
Renewal of Number: NJA859308B
2. POLICY PERIOD: Inception Date: 06/25/2015 Expiration Date: 06/25/2016 Effective 12:01 a.m. Standard Time at the address of the Named Insured.
3. LIMITS OF LIABILITY: Each Claim : $1 ,000,000 Aggregate: $2,000,000
Claim Expenses have a separate Limit of Liability: Each Claim : $1,000,000 Aggregate: $2,000,000
4. DEDUCTIBLE: Each Claim : $0 Aggregate: $ 0 ~~~~ ~~~~
5. RETROACTIVE DATE: 06/25/2009 If a date is indicated , this policy will not provide coverage for any Claim arising out of any act, error, omission or personal injury which occurred before such date.
6. ANNUAL PREMIUM:
TOTAL Premium and Taxes/Surcharge:
7. ENDORSEMENTS:
$793.00
$793.00
This policy is made and accepted subject to the printed policy form together with the following form(s) or Endorsement.
AP 00 0001 (06/11 ), AP 04 0001 (06/11 ), AP 21 0002 (06/11 ), AP 27 0004 (06/11 ), AP 01 0004CA (06/11 ), AP 08 0005CA (06/2011 ),
8. PRODUCER NAME: Mercer Consumer STREET ADDRESS: P. 0 . Box 8146
Des Moines, IA 50306-8146
Producer Code: 26460 Class Code: 73128 Date: 04/01/2015
.. .. ,., ... '+ . .. ~....: · .. \ .... ~ ... ': ~~,. ....
· .. :
Authorized Representative
AP 1 O 0001 06 11 ©Copyright 2011 , General Star Management Company, Stamford, CT Page 1 of 1
l .Denis DeSaix, SRA MetroCal Appraisal 2450 Armstrong Street Livermore CA 94551 (925) 800-5162
2. Matt Boxberger
References
Santa Clara County Commercial Tax Appraiser 2704 Plaza Americas San Jose 95132 (408) 394-6984
3. Michael DiCiccio 291 Rutherford Ave Apt 1 Franklin, NJ 07416 (973) 847-5474
4. Bruce Whiting, Reality Specialist Bureau of Reclamation Provo Area Office 302 East 1860 South Provo UT 84606 (801) 379-1061 (Office)
Insurance
1. E & 0 Insurance General Star Policy Number NJ A 859308 A 2. Sentinel Insurance Company, Limited Business Insurance
One Hartford Plaza, Hartford CT 06155
Awards
1. GEORGE & ALBERTA STAUSS SCHOLARSHIP, APPRAISAL INSTITUTE2010
2. Act 101 Programs Academic Achievement Award 1992
3. Appraisal Institute Academic Scholarship 1991
Professional Qualifications
1. International Right of Way Association magazine (September-October 2012)
Article: Transit Oriented Development: A Viable Solution to Revitalize Inner Cities
2. Lead Panelist on education requirements for the designation MAI with the
Northern California Appraisal Institute Fall Conference 2011, San Francisco California
3. Three (3) Articles Published in the areas of planning and real estate (1995 to 1998)
WHO ARE WE
LNM EQUITY ASSOCIATES LLC 555 Rincon Ave
Livermore, CA 94551 (925) 292 1560
(925) 92 4912 (Fax) Email: [email protected]
LNM EQUITY ASSOCIATES is a full service firm providing Appraising and planning
expertise for the clients, both public and private.
APPRAISAL SERVICES
We have experience in a variety of appraisal projects including the following:
Right of Way Projects Single Family Residential Commercial Appraisals Farmland-Open Space Probate Appraisal Tax Appeal
OTHER SERVICES
Valuation of Highest & Best Use Analysis Housing Studies Zoning Analysis Land Use Planning
We would be glad to meet with you to discuss how we can help.
18
Transit Oriented Development: A Viable Solution to Revitalize Inner Cities
BY LIAM CUNNINGHAM
As our local, state and federal administrators face larger budget deficits, communities are left with deteriorating infrastructure and a loss of tax dollars. In an attempt to offset their financial deficits and create opportunities for urban renewal, revitalization has become a realistic option for many communities. Consequently, many urban cities have taken steps to retrofit land development while encouraging the use of alternative modes of transportation, such as mass transit.
Creating Livable Environments
In recent years, Transit Oriented Development (TOD) is a planning concept that has gained popularity in the United States, especially in large urban areas . The main goal is to create livable environments where people can access transit arteries to employment centers, services and shelter with minimal use of cars. A TOD system is designed to enable transit vehicles to navigate easily through communities while giving transit passengers a safe and convenient way to access transit services. lt addresses a number of typical urban issues, such as traffic congestion, shortages of affordable housing, air pollution and suburban sprawl. The popularity of TOD also stems from demographic factors , such as when empty nesters seek to downsize their living space.
Ri g h tofWay SEPTEMBER / OCTOBER 2012
There are several important reasons that inner cities have been looking at TOD projects. One benefit is recapturing the lost tax revenue that most inner cities need. When properties are considered to be blighted, they are either underutilized or vacant. This leads to a substantial loss of both real estate and sales tax revenues. Taking advantage of the existing land is another plus. ln many cities, old rundown train stations and surrounding areas have crumbled and now serve as an eyesore. By rehabilitating these neglected areas, old neighborhoods that were once considered dead soon become livable again.
Lack of Incentives
Over the last 50 years, America's vast interlocking highway system has made it easy to travel by car. The freeways spurred the housing and commercial development outside the older urban cities, leading to the growth and expansion of suburbia. With an expanding freeway system and affordable gas prices from the early 1950s to the early 1980s, there was very little incentive for infrastructure improvements on the mass transit system.
However, since the 1960s, buildings and infrastructure in older inner cities have been decaying. In some cities, entire blocks of buildings once used as apartments orcommercial
enterprises have either deteriorated or are entirely abandoned. ln response, many residents and companies moved to the suburbs. An expanding interstate freeway system made it easy to commute, and the suburbs offered people the opportunity to purchase homes with larger lots that were far from the crime rate of the city and offered a less polluted environment. Yet, while suburbia offered a more peaceful and quiet lifestyle, it also led to an increased dependency on cars. This flight to the suburbs caused financial strain on the inner cities, primarily because of the loss of a large tax base from commercial, industrial and residential properties.
Two Cities Embrace the Needs
Two major economic hubs, San Jose, California and Atlanta, Georgia were both facing traffic congestion on their major freeway systems, along with a high demand for housing. Traffic congestion was threatening their ability to attract and retain new employers, and minimizing the need for a car would increase the demand for a high-quality workforce. This is especially important in places like Atlanta and San Jose because of the number of high-tech employers located m those cities.
Atlanta, Georgia: The North Line Transit Oriented Development Study
North line Transit Oriented Development
(TOD) Study
marta:
In 2006, a study was conducted for the Metropolitan Atlanta Rapid Transit Authority (MARTA). At the time, strong job and population growth were impacting general market trends and conditions within the 1-20 freeway. With the support of several major employers, the study was designed to
evaluate the potential employment market in hopes of driving continued job growth and economic development.
The study would determine whether commercial development sites within a half-mile of the potential station locations had any physical characteristics which precluded future development or redevelopment opportunities. The extent of potential development opportunities within proximity of the alternatives was also examined. The assessment also considered the amount of vacant parcels, underutilized parcels and trends in demographics that might increase employment, housing and retail. It was believed that low-income households would benefit the most because they tended to lack the resources to own cars and would be within walking distance to resources and services.
Overall, none of the potential station locations had any disproportionate physical constraints. Growth was therefore encouraged by designing and building both a light rail system and TODs located in the various rail stations along the I-20 freeway. As the 1-20 corridor faced limited growth and freeway congestion, the TODs that were built actually helped to centralize both development and accessibility to housing and employment. The low-income populations benefitted from the new mass transit system because it gave them access to a wider job market.
San J ose, CA: Transit-Oriented Development Program, Santa Clara Valley Transit Authority
One of the major challenges facing Santa Clara County was maintaining its quality of life. As its population and employment opportunities kept growing, so did traffic congestion. As congestion worsened, the community looked to the Santa Clara Valley Transit Authority's (VT A) for effective transportation solutions. In 1995, the VTA'sStrategic Plan specified a goal to integrate transportation and land use planning. To accomplish this, they established an ambitious transit expansion plan to intensify and diversify land uses, while enhancing pedestrian circulation at appropriate locations.
Since land use authority rests with the cities located in Santa Clara County, the VT A formed partnerships with local jurisdictions to implement the TOD program and ensure that transit-oriented development occurred. Several cities amended their zoning codes and regulations to include provisions for transit-supportive land uses at existing and planned rail stations. The VT A provided expertise and resources on how to achieve transit-friendly development. The expected result is to have better communities that offer essential transportation
The Santa Clara Valley Transit Authority fo rmed partnerships with local jurisdictions to implement their program.
Din h t nfW-..u 10
choices. Using joint development helped the VT A implement projects that now serve as models for projects that promote transit and pedestrian use. Through partnerships between VT A, private companies and the cities within the county, TOD will continue to emerge along existing and future rail lines. In the long run, this coordinated effort will further guarantee the rail system's success and make the Santa Clara Valley a more attractive place to live and work.
The development of these cohesive neighborhoods illustrates how effective public transit can support land-use planning. Cities throughout the Bay Area and Santa Clara County are pursuing goals to reduce sprawl and make more efficient use of taxpayer-supported city services. By developing a TOD system, both Atlanta and San Jose were able to increase their employment and tax revenues. Private companies and public entities worked together, and this joint development encouraged a good mix of public and private dollars.
Utilizing Abandoned Train Stations
With so many abandoned or underutilized train stations, redevelopment can work to energize an inner city. In most cases, the transit hub rehabilitation is coupled with mixed-use commercial construction and can include a residential, retail or office component. However, efforts to reform and re-urbanize former blight or underutilized transit corridors are not without problems. Some of the challenges include rezoning issues, proximity to local transportation access and displacement of the existing populations.
In San Mateo County, housing demand is projected to be around 13 ,400 units by 2030. An additional 24.4 million square feet of office/retail space will be needed to meet demand. Given that the old railroad station in downtown Redwood City was underutilized and considered an eyesore, the San Mateo Transit District (SamTrans) decided to conduct a study to determine how to get the old station to become an active part of the city again.
In 2007, the San Mateo TOD Opportunity Study was funded under the Federal Transit Authority State Planning and Research Projects through the California Department of Transportation (Caltrans) and the Metropolitan Transportation Commjssion (MTC). The Redwood City railroad station was one of 18 railroad stations being studied by SamTrans. The study assessed the opportunities and constraints and included action plans for advancing TOD adjacent to Caltrans and Bay Area Rapid Transit (BART) stations in San Mateo County. The study also included land assembly, on-site parking requirements, affordable housing and zoning.
The study showed that the increased demand would fall within a half mile of mass transit. The study area consisted of the half-mile radiuses surrounding the 18 BART and Caltrans stations in San Mateo County and an intermodal station served by both Caltran and BART. The population within the station areas totaled approximately 113,000, with individual station areas ranging from 2,800 to 11 , 700. Roughly 20 percent of all households in San Mateo County live near transit, and the number of employed residents living within station areas who drive alone to work ranged from 63 to 90 percent. More than a third of San Mateo County residents work in San Francisco or Santa Clara Counties. Those who worked in San Mateo County commuted from all over the Bay Area, and retailers are supported by shoppers from outside the county as well.
Since Redwood City is located on the peninsula about halfway between San Francisco and San Jose, it was considered a great location for increasing entertainment and retail traffic. The planned project was not just to redevelop the old train station, but also included a three-block radius where retail shops and restaurants would be located. It included a movie theater complex within two miles and apartments that would be built above the retail shops or within a multi-unit building. !twas determined that the real estate and sales taxes would increase Redwood City tax revenue by 15 percent to 20 percent overall. Furthermore, foot traffic in the area was expected to increase by at least 50 percent. Increased property values in the TOD area and throughout Redwood City were also anticipated.
Overcoming the Hurdles
One of the main roadblocks in developing a TOD project is the affordability issue in housing.
In some neighborhoods in older cities like Oakland California, homes can average more than 100 years old. A majority of residents are older people who are living on a fixed income. The affordability factor comes into play because most of the dwellings are in need ofrepair,and the real estate valuation is trending toward
Through redevelopment programs, old abandoned train stations can be used to re-energize an inner city.
the lower value. Conversely, after an urban renewal project, real estate valuation trends upward, making it unaffordable for the current population. As a result, they are often displaced from their neighborhoods.
20 Right of Way SEPTEMBER/OCTOBER 2012
One solution is to use an inclusive community engagement process to ensure that the entire neighborhood has the same vision of urban renewal. Understanding the community goals and vision, along with changing attitude on how people feel toward the low-income population, is an essential part of the process. Enhancing the economic ability oflow-income residences and not forcing them out of their long-term neighborhoods will help stabilize the social fabric of the neighborhood by creating a feeling of well-being between all residents. This SamTrans study demonstrated the many regional benefits of creating socially and economically diverse neighborhoods, including gains for the economy and environment, as well as for social equity.
A lack of revenue is another major roadblock to TOD development. As older inner cities throughout the United States face financial setbacks, identifying the funding sources can be overwhelming. Some cities have used the Community Reinvestment Act (CRA) to generate needed funds. ln 1977, President Carter signed this act into law to help older inner cities to acquire the financing needed for urban renewal. The CRA was passed as a result of national pressure to address the deteriorating conditions of American cities, particularly lower-income and minority neighborhoods. The CRA seeks to ensure the provision of credit to all parts of a community, regardless of the relative wealth or poverty ofa neighborhood. Before the Act was passed, there were severe shortages of credit available to low and moderate-income neighborhoods.
Another financial tool to help fund a TOD project is the Tax Increment Financing (TIF). It is a way to jumpstart a project by either the developer using its own money, or through use of a bond. This is a joint venture between private development money and government municipalities. It encourages cities and developers to take a chance with urban renewal by enhancing the needs of both the community and the local neighborhood.
Summary
Over the last 50 years, many older inner cities in the United States have become run down and blighted. Aging buildings, a change in demographics and a shift in the employment base have all been contributing factors. Furthermore, access to an expanding freeway system caused many large retailers to move to suburban malls, resulting in a loss of tax revenue and further erosion of the inner city infrastructure. This inner city erosion, combined with an expansion of the suburbs, has led to a declining population within many older communities.
As communities continue to face budget deficits, revitalization has become a viable option for offsetting further losses. Many urban communities have taken action in retrofitting land development while encouraging the use of alternative modes of transportation. In fact, TOD projects have shown that, with mixed-use projects that include
Caltrans, Sam Trans and the San Mateo County Transportation Authority joined supporters across the country to speak out against proposed funding cuts for public transportation and all surface transportation programs.
residential and retail development, inner cities can increase tax revenue and real property value. However, cities must be sure to maintain the delicate balance between urban renewal and making living economically out ofreach for low-income populations.
Although there are other concepts that exist to modernize blighted inner cities, TOD is gaining in popularity for revitalizing the once forgotten areas. Reforming and reurbanizing former blighted areas is possible, especially when mass transit is incorporated into development plans.
References The Hidden Costs of the New Economy: A Study of the Northeast Mission lndustrial Zone, October 2000 Peter Newman and Jeffrey Kenworthy, Cities and Automobile Dependence: An International Sourcebook, 1989.
East Bay Alliance for a Sustainable Economy, 2008, Building a Better Bay Area.
Association of Bay Area Governments, December 2009, Development without Displaced Development with Diversity.
Overview of Capitol Expressway Light Rail Project January 20 I 0, Santa Clara Valley Transit Authority (VT A) San Jose, CA.
Transit-Oriented Development and Household Travel ; a study of California Cities, August 4, 2006, UCLA.
A llan Ferguson, University Light Rail Station. May 13 , 2008.
Max Blue Line Gresham-Hillsboro, Community Building Sourcebook May 2003 , Trimet Portland, OR.
The North Line Transit Oriented Development TOD Study, Spring 2006, prepared for: Metropolitan Atlanta Rapid Transit Authority (MARTA), Atlanta Georgia.
Transit-Oriented Develo1llnent Strategic Plan, August 212006, prepared for Community Planning and Development Denver C-oloraao.
The Community Development Block Grant pro~m. administered l:>y Department of Housing and Urban Development, Source: Strategic Economics, 2007 Berkeley California
Liam Cunningham
With more than 30 years of real estate appraisal experience, Liam is the Owner and Presidentof LNM Equity Associates, a full-service firm specializing in right of way appraisal. Previously, he worked for the California Department of Transportation as a transportation planner and served as lead planner on the San Mateo County Transit Oriented Development Plan. He was also an appraiser for the Nebraska Department of Roads. He is a member of the Appraisal Institute and holds a masters degree in Urban Studies from the University of Nebraska. Visit www.lnmequityassociates.net
SEPTEMBER/OCTOBER 2012 Rig h tofWay 21
