Laserfiche WebLink
8.B. - Page 66 of 70 <br />Redwood City Broadway Streetcar/Urban Circulator Study <br />Summary Report <br />Economic Benefits <br />A variety of case studies suggest that a streetcar or urban <br />circulator can potentially increase housing and commercial <br />development and provide other economic benefits. Transit <br />has been shown to encourage both residential and <br />commercial development as the nearby area becomes more <br />convenient and attractive for residents and workers. As the <br />area increases in density, additional economic benefits may <br />benefit the area as a whole, as well as providing additional <br />services for lower income groups. The ability to facilitate <br />growth is dependent on land availability, infill opportunities <br />and city planning policies. <br />■ Real Estate Development: Based on the case studies, <br />a Redwood City streetcar/urban circulator can <br />potentially increase the supply of housing units and <br />commercial square feet by between 5 and 10 percent <br />relative to baseline trends. <br />■ Property Value: Existing properties may experience a <br />one-time increase in property value once the transit <br />line is introduced as the land becomes more valuable. <br />To the extent that a streetcar/urban circulator can <br />increase accessibility and foot -traffic, the real estate <br />market value of existing properties will improve. This <br />benefit tends to be greater when the investment <br />involves a fixed infrastructure investment such as a <br />streetcar as compared to a bus system which may be <br />viewed as lacking permanency. In particular, assuming <br />existing properties experience a 5 to 10 percent <br />increase in market value, assessed values would <br />increase by about 3 to 6 percent. <br />Retail Sales: Businesses in the study area may also <br />reap increases to their annual sales as a result of the <br />added foot -traffic brought by the streetcar/urban <br />circulator. In total, retail sales can reach between <br />$230.1 million and $241.0 million (5 to 10 percent <br />above the No Build scenario) <br />Tax Revenues: The combined effect of increased <br />development, property appreciation, and business <br />activity can have an appreciable impact on Redwood <br />City's General Fund revenues. Property taxes, transient <br />occupancy taxes, and sales taxes are all expected to <br />increase, resulting in an additional 3 to 7 percent in tax <br />revenues. <br />■ Other Benefits: A streetcar/urban circulator in <br />serving Downtown Redwood City could also provide a <br />range of benefits stemming from improved pedestrian <br />accessibility, urban design, place -making and related <br />considerations that, although difficult to quantify in <br />economic terms, are nevertheless significant. <br />While there is very little research on the relative benefits of <br />streetcars versus urban circulator type systems, it is likely <br />Smith <br />609 <br />