Chambers Presentation - MN House Transportation Policy & Finance Committee 01.30.13

7/29/2019 Chambers Presentation - MN House Transportation Policy & Finance Committee 01.30.13

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Governors

Transporta/onFinanceAdvisoryCommi8ee

Whiletheexis/ngtransitsystemisefficientandcost-effec/ve,itisundersizedand

needstoexpandtomaketheregion'sprojectedeconomicgrowthareality.

Regionswithrobusttransitsystemsworkbe8erandarechoicedes/na/onsfor

employersandemployees.

Uncertaintyintransitdevelopmentdelaysprivateinvestment.

Toremaincompe//veanda8ainregionaleconomicgoals,theTwinCi/esmustcon/nuetostrengthenitstransitsystem.

www.dot.state.mn.usQac


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ThebenefitsofaTFAC-recommendedtransitsystem:

MinneapolisandSaintPaul

ToddKlingel


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Today

Transitgetspeopletowork 0%ofridersgoingtoworkorschool

40%ofdowntownMinneapolis

USBank:50% Ameriprise:60%


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Todayand

tomorrow

Weneedtransitto

competefor

workers


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Transitmakespossiblearegion

thatdrawsworkersandjobs

Companiesarerecrui/ng

andtarge/ngthenext

genera/onoftalentedworkers,the

Genera/onYmillennials

whoincreasinglypreferurbanlifestyleswithmass

transit. UrbanLandIns/tute

Source:JeffreySpivak,UrbanOfficeMomentum,UrbanLand,

September14,2011


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Otherregionsknowthis

Mapstosamescale

Source:BillRankin,

McKinseyteama

naly

sis


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Andarebenefingfrom

theirinvestments

Denver:

#1Des/na/onforMillennials

Minneapolis:#39

MayorHancock:Theyrecomingfortransit.


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Athrivingregionisa

productwearemaking.

Transitisanecessarycomponent.

Ifweputintooli8le,

wellgetalesscompe//veproduct.


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SouthwestLRT

JudyJohnson


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SWLRT

Transporta)ontoserveandconnectjobcenters* * * * * * *

Downtown&

Minneapolis&

147,000&emp.*

Highway&212&

Corridor&

16,000Golden&Triangle&

Business&Park&

18,000Opus&&

Business&Park&

11,000KFTel&Drive&

Industrial&Park&

3,500 East&End&Hopkins&(Cargill,&Supervalu)&

5,000Methodist&

Hospital&

5,200Excelsior&&Grand&

Park&Nicollet&

1,000Beltline&Business&

Park&

6,000 West&Calhoun&4,200Downtown&

Minneapolis&

147,000

Jobs&within&&

Fmile&of&

staVon&

Neithermoreroadsnormorebusesworkinthiscase.


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SWLRT

Supportsjobgrowth

ComcastCustomerLoyaltyCenter

Couldgoanywhereinthecountry Workforceneedstransit

UnitedHealthGroup

4newtowers 6,600newemployees

Southwest:

2000:210,000jobs

2030:270,000jobs


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h8p:www.twinci/es.comopinionci_2049679klingel-kramer-sou

thwest-twin-ci/es-needs-light-rail


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Votersagree

Support funding for

Southwest Light Rail

Statewide

2012: 61% 2013:70%Metro

2012: 64% 2013:75%ues/on:TheTwinCi/escurrentlyhasoneopera/nglight

raillineandasecondline,betweenMinneapolisandSt.

Paul,isunderconstruc/on.Inordertomoveforwardwith

thenextplanedextensiontothesystemtheSouthwest

LightRailLinethatwouldextendfromMinneapolistoEden

Prairiethestatewoulddedicate$11millioninorderto

secure$625millioninfederalmatchingfunds.Doyousupportoropposededica/ngthesefunds?

Statewide:70%support,27%oppose,3%undecided.

Metro1:75%support,23%oppose,2%undecided.

h

8p:www.m

inneapolischamber.o

rgnews20130117mrcc-featuredpoll-shows-strong-support-for-transit-funding


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Theregionandthestate

WillSchroeer


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Wouldtransitinvestmentbeworthithere?

RegionalTransitSystem:

ReturnonInvestment

Assessment

www.theitascaproject.comTransit%20ROI%20exec

%20summary%20Nov%202012.pdf


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Itascaasked3ques/ons

1. Abuilt-outregionaltransitsystemwouldrequiresubstan/alinvestment.

Whatwouldbethereturnontheregional2030transitplan?

2. Investmentscanbemademoreorlessquickly.Wouldaccelera>ngbuildoutto2023changetheROI?

3. Manycommuni/esdevelopingtransitsystemexperiencemoregrowthneartransitsta/ons.Wouldsuchexpecta>onsforgrowthchangethereturnon

investment?


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1. Vehicleopera/ngcosts2. Travel/mesandtravelreliability3. Shippersandlogis/cscosts4. Emissions5. Safetycosts6. Roadpavementcondi/ons

Costsforeachscenario=capital+opera/ons&maintenance(MetropolitanCouncil)

Wecalculatedsixkindsofdirectimpacts


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DirectBenefits

Note: Benefits and operating and maintenance costs are calculated for 15-year period 2030-2045 for regionalsystem, 2023-2045 for accelerated system. All are reported in 2010 dollars.

*IRR = Internal Rate of Return, the discount rate often used in capital budgeting that makes the net present value of

all cash flows from a particular project equal to zero

Scenario

Totaldirectimpacts

2030Planwithmore

growthnearsta/ons

3

AcceleratedRegional

Plan

2

2030RegionalPlan1

Investment

$4,361

$5,29

$4,361

Low

$6,571

$10,762

$9,02

High

$10,03

$16,516

$13,927

IRR*

7.814.8%

11.218.0%

13.020.9%

Comparedtobasecasescenario

2010$Millions


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Thebenefitsofregionaltransit

faroutweighthecosts Buildingthe2030regionalplan=

$6.610.1billionindirectbenefits,

ona$4.4billioninvestment.

Accelera/ngthesystembuild-outwouldincreasedirectbenefits:

$10.716.5billion

ona$5.3billioninvestment

2030regionalplanwithgrowthneartransitsta/onswouldincreasereturnoninvestmentby$2-$4billion


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Transitbuild-out

increasesaccesstojobs

Buildingtheregionaltransitsystemwouldenableemployersinthe

re iontoaccess500 000moreem lo eeswithina30-minutecommute.


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Thepublicunderstandsthis,and

wantsmoretransitStatewide

79%agreeMinnesotawouldbenefitfromhavinganexpandedandimprovedpublic

transporta/onsystem,suchasrailandbuses.

66%agreeIwouldliketousepublictransporta/onsuchasrailorbusesmoreoen,butitisnot

convenientoravailablefrommyhomeorwork.

83%supporttheStateofMinnesotainves/ngmoreinpublictransitimprovementstoeasetraffic

conges/onandprovidemoretransporta/onop/ons.

ThisincludesasolidmajorityofRepublicans(71%,Democrats(95%,andIndependents(80%.

SurveyconductedinJanuary2013byFM3andPOSforMinneapolis

andSaintPaulChambers.


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Union Depot Track Work

Construc/oncreatesjobsforthewholestate

Homeof

CentralCorridorconstruc/onworkers

Chambers Presentation - MN House Transportation Policy & Finance Committee 01.30.13

Documents

Transcript of Chambers Presentation - MN House Transportation Policy & Finance Committee 01.30.13