Developing Around Transit: Challenges for Cities and Suburbs

by Robert T. Dunphy

Current interest in public transit investments is enormous. The challenge is to create the supporting development that will make the investments work.

The Federal Transit Administration recently approved funding for projects in Phoenix, Arizona, and Charlotte, North Carolina. The two join the ranks of light rail cities, which in recent years have added Houston, Texas; Las Vegas, Nevada; and Minneapolis, Minnesota—regions in which transit had captured only 3 to 5 percent of commuters in 2000.

In spreading from traditional markets such as New York, Chicago, and San Francisco to nontraditional markets in the South, Midwest, and West, transit faces a twofold challenge. The first challenge is for advocates to convince the larger community that transit will work—that it will serve middle-class people who are accustomed to driving. The second and more difficult challenge is making the case that compact, urban development around transit will work to generate the ridership necessary to support the new project.

This kind of smart growth linked to transit is also necessary in established markets that have grown up around transit. Ironically, residents in some traditional transit cities such as Boston and Cleveland do not believe that they have any transit-oriented development, which is perceived as more of a West Coast, new urbanist phenomenon—that is, allied with smart growth and walkable communities that are large suburban planned developments.

Aspects of a Conundrum

The conundrum is that much of the interest in new transit investments is occurring in places where transit is a novelty, yet many established transit markets are struggling to maintain services. A national survey, conducted under the Transportation Research Board’s Transit Cooperative Research Program, identified approximately 100 transit-oriented developments in the United States.1 This is a paltry number, which suggests either that not much is occurring or that the size of this market is severely underrepresented in the survey results, considering the vast amount of attention devoted to the topic of transit-oriented development in the planning and transit literature.

A new book by the Urban Land Institute, Developing Around Transit: Strategies and Solutions That Work, avoids the term transit-oriented development but highlights examples that meet the goals, whether or not the developers or the cities acknowledge it.

Another aspect of the conundrum is that from a transit perspective, urban projects yield the greatest leverage in expanding transit ridership and supporting transit services. New housing and offices in neighborhoods with good transit service create additional transit riders, often without the need for adding transit service. Neighborhoods accessible to transit also give options to new residents who would like to avoid driving.

Reshaping Development

Building in established urban areas is friendly to transit, but unfriendly to development. Projects take longer and are more expensive to build. The market is often unproven—the risks are high, and profits are uncertain. In contrast, conventional suburban projects are development-friendly, but transit-unfriendly. Most growth is expected in the suburbs; therefore the challenge is to reshape conventional development to create the kind of vibrant places that offer transit choices.

The market opportunities for urban infill development are excellent in many older areas, with young professionals and empty nesters seeking a more urban lifestyle, and with employers seeking neighborhoods that offer more employee amenities. In the report, Emerging Trends in Real Estate: 2005, the Urban Land Institute and PricewaterhouseCoopers ranked the areas near transit highest for development and investment, reflecting the appeal of infill development, as well as the public’s frustration with traffic congestion.

Development, however, does not occur just because of transit. Block 37 in downtown Chicago, for example, has been vacant since 1990, when the city cleared the land for mixed-use development. The location is excellent, but the vagaries of the marketplace have foiled the city’s plans to create a mixed-use development in one phase—the office market lacked sufficient depth when retail business was strong, and vice versa. When the city relaxed the requirement for single-phase development, a new developer with a retail orientation gave the project new momentum. The experience demonstrates that in urban infill development, a strong location cannot make up for soft market conditions or unrealistic expectations.

The first mixed-use transit project in Texas, Mockingbird Station is located adjacent to a Dallas Area Rapid Transit light rail station. The developer understood the appeal of in-town living near transit, although the city would not assist with pedestrian improvements and would not relax parking standards because of the light rail. In contrast, Dallas suburbs such as Richardson and Plano have created more urban development around their transit stations.

Markets and Policies

Reinforcing a strong market with consistent public policies can turn individual projects into successful transit districts. One of the best examples in the United States is the Rosslyn–Ballston corridor in Arlington, Virginia. The vision that developed three decades ago with the support of public officials and civic leaders has turned a once-declining strip into a vibrant mix of office, high-density residential, retail, dining, and entertainment. The development is a massive fiscal success, giving Arlington County the region’s lowest tax rate.

Successful development around transit is a challenge for cities and suburbs. The transit project must be attuned to the needs of the real estate development market, and developers in turn must appreciate the special opportunities of transit.

The Next Best Thing: Micro-retail

by Callison

The way we shop now

Shopping patterns and preferences have segregated into dozens of what demographers call "clusters," described in Michael Weiss's book The Clustered World, as "consumption communities defined by demographics, intellect, taste and outlook."

Each of these clusters (Weiss names 62) has their own initiations, ceremonies and cultural effects - think of the annual rally of Harley Davidson owners in Sturgis, South Dakota, the appetite for adventure-sports that young technology professionals share, or the environmental sensitivity of gen-y'ers - which influence the types of products and experiences each group seeks.

While this market segmentation is not new, it has been manifested mainly through product differentiation and advertising. Now, however, it is starting to direct the style and substance of our shopping destinations.

The so-called lifestyle center is clearly one type of segmentation - though given its upscale offerings, a more apt name might be the "Elite Suburban" center. Another is the rising number of co-tenancy clauses in lease agreements, where one tenant requires the presence of specific, complementary tenants.

Micro-retailing

These moves signal the start of a larger trend toward what Callison calls "micro-retail." Unlike the "all things for all people" regional shopping mall, micro-centers are targeted, thoughtfully packaged destinations that appeal to a given slice of the increasingly stratified American lifestyle pie.

Like a micro-beer, which is developed as a niche product aimed at specific tastes, these new developments feature carefully chosen ingredients, attention to detail and craftsmanship, custom packaging, and a characteristic, often sociable experience that surrounds its consumption.

Savvy developers will apply similar principles to create 21st century retail destinations, using targeted leasing, packaging and experiences to connect with a particular cluster or clusters.

The Payoff
Like all business today, retail development is far more complex than it used to be. Is it worth it? With its potential for both social and economic rewards, we think so. But don't take our word for it. Next time you decide to kick back and pop a cold one, just ask yourself: Local specialty brew, or Bud? Cheers.

Leasing
If the mantra used to be location, location, location, today it's tenants, tenants, tenants - with the right mix.

1. Replace the rolodex with research
The days of "rolodex" leasing for large retail centers are numbered. More important than who you know is what you know - about the offerings that will best satisfy your shoppers.

2. Bundle tenants
Tenant bundling can be either horizon-tal or vertical. Horizontal bundling serves a range of needs (apparel, hard goods, specialty, food and beverage) for a defined customer profile. Vertical bundling builds a tenant package around a specific concept, like recrea-tion, wellness, or culinary interests. Resist the temptation of cross-market deals, which dilute performance.

3. Think beyond 3-5-9
People will drive 25 miles, even more, to a place created just for them. Get the tenants you need by selling the idea, not the location.

4. Look local
Including local tenants may require extra legwork, but the effort pays off in a stronger identity and customer loyalty. Shoot for 20% local or regional offerings; consider community organizations or business services as well as stores and restaurants.

5. 30% to 40% food and beverage
Cafes, bars and restaurants are increasingly popular among consumers for three big reasons: less time, more money, enough stuff. Last year, Americans spent 46% of their food budget outside the home, a number that is expected to increase to 53% by 2010. (National Restaurant Association.)

Packaging
Customized packaging will leverage the value of a well-bundled tenant mix. Establish an appropriate "look and feel," while addressing fundamentals such as convenient access and smart layout.

6. Borrow from other models
Look to hospitality, wellness, cultural, entertainment or other models as a way to focus and differentiate your position. Remember, it's not just about shopping. Good experiences and relevant services rank right up there with more stuff.

7. Ditch the theme
Consumers up to their eyeballs in "reality" TV and synthetic environments ala Las Vegas and Disneyland increasingly value what is tangible, sensual and emotional. The superficial nature of themed environments now strike us as unnecessary, if not silly. Instead, create places and offerings that activate the senses - live music, fresh air, wood you can knock on, looking across the table and having a real conversation.

8. Identify yourself
Loyalty increases when people identify with a place. Foster a sense of ownership and pride by shaping a relevant design character. Be sensitive to time, people and place.
Experience
People crave rich experiences. It's a well-documented desire that testifies to a broader search for meaning that transcends material goods.

9. Make room for meaning
What types of everyday experiences will be meaningful to your customer? A moment of peace? An energizing crowd? Family fun? Should they be intimate or grand? Offbeat or mainstream? Urbane or down-home?

Set the stage for relevant "third place" experiences to unfold, and hit home with customers no matter where they live.

Harry Allen retail design for UNION

From David Report

The second store by New York designer Harry Allen for prestigious streetwear retailer, UNION, is one part archeological dig and two parts humble masterpiece. Located two doors down from the site of the original UNION store on Spring Street in Manhattan, the new space incorporates some of the elements we developed for its counterpart in LA yet remains true to New York. Harry Allen started by stripping away layers of interior finishes to reveal some original details. He found a window and door that had been covered over, a variety of plaster and brick finished, and the rafters were beautiful. “The demo process in New York is so interesting that we decided to preserve it,” says Harry Allen. The reclaimed details were “ghosted” out by decorative painter Frank Rynan and used as the backdrop for merchandise. The wooden area up front echoes the original store design - it is friendly and familiar. And the back lit, black metal shoe wall at the back of the store becomes a dramatic draw for the eye. The new UNION store is literally a “union” of brand, store environment, and location.

UNION is one of the most respected brands in the streetwear business. Harry Allen is really fond of the whole phenomenon and he has previously designed five stores for the UNION sister brand, Supreme.

Award Winning Park: "Wade Oval"

Cleveland’s Wade Oval is just seven acres, but it is uniquely-situated amid many of the most important cultural institutions in the city, including the Cleveland Museum of Natural History, Cleveland Botanical Garden, and Cleveland Art Museum. Located in the University Circle neighborhood that is home to Case Western Reserve University, the Oval is at the center of a neighborhood that draws tens of thousands of students, patients and visitors daily.
At the request of University Circle, Inc., a local nonprofit planning and development organization, PPS worked with citizens in University Circle, institutional stakeholders and internationally renowned architects and designers hired to expand several of these institutions, to help the Oval’s adjacent uses benefit from their unique location on the Oval, and transform the Oval itself – and the boulevard around it – to become more welcoming to both visitors and the local community, and enlivened by events and activities programmed by the rich array of partners around it.

PPS recommended a plan to connect the institutions to one another and to the park, partly through small changes to building facades and outdoor areas that reveal more information about what's going on inside these buildings. Using PPS’s conceptual plan, University Circle, Inc initiated a $1.4 million renovation of the Oval, which was completed in October of 2003, revealing such improvements as new walkways, pathway lighting, benches, lampposts, drinking fountains, and a performance stage that blends in with the surrounding landscape. The Cleveland Plain Dealer’s architecture critic, Steve Litt, wrote of the revitalized Oval “The transformation though modest in cost is astonishing. UCI has turned the park into a postcard-perfect amenity worthy of any city in the world.”

"Relational Neighborhoods"

Excerpt from Frank A. Mills, Urban Psychologist

A "relational neighborhood" is a "group of people with which an individual interacts frequently, to whom an individual feels connected, or to whom the individual would go to for help." Relational "neighbors" may include family members, schoolmates, friends, co-workers, and church members, as well as neighbors.

Although "relational neighborhood," by definition, can define "neighborhoods" other than geographical neighborhoods it would serve us well to understand the characteristics of a relational neighborhood as they apply to the geographical neighborhood.

Andrew Crook in his essay on the Relational City ("The Relational City: A New Framework for Tackling Unemployment," Relationship Institute, Cambridge, England, 1997) suggests that there are three characteristics, and five "micro-building blocks" for the Relational City. Applying these to the context of a geographical neighborhood, we find that a relational neighborhood is a neighborhood where residents share a commitment to the neighborhood, to each other, and to joint participation in improving their neighborhood.

To delineate, Crook's three characteristics are ...

• A commitment to place: A relational neighborhood is one to which residents are committed to, and feel pride in belonging to.


• A commitment to people: A relational neighborhood in one characterized by mutual respect and concern among residents.


• A commitment to participation: A relational neighborhood is one which residents know their joint power for change and use it.

For Crook, the five elements, or "micro-level building blocks," necessary to create a Relational City, or for our purposes, a relational neighborhood out of which beneficial characteristics like mutual trust and co-operation can develop are:

• Face-to-face contact (Directness)
  Residents physically meet with each other and mutually interact. In the process, they begin to understand and appreciate other perspectives expressed by neighbors. Simply put, relationships cannot exist if people do not come together.


• Common purpose (Commonality)
  Residents share a joint vision, or at least some elements. If residents do not share a common purpose there will be no opportunity to profitably work together. Common purpose requires residents to be convinced that there are common projects on which they can co-operate to their mutual advantage.


• Contact over time (Continuity)
  Relationships take time to develop. People are highly unlikely to form strong commitment to a neighborhood if they see their stay likely to be short.


• Contact in different contexts (Multiplexity)
  Multiplexity is the idea that a relationship between two (or more) people is strengthened if it takes place in more than one context. In my neighborhood, for example, most of my neighbors attend the same church and we all walk to the same stores.


• Mutual respect (Parity)
  Neighborhood residents are able to interact on roughly the same level with equal power. Neighbors meet on equal footing and contribute equally. When a particular neighbor chooses at times to remain aloof from the neighborhood a relational neighborhood will accept the neighbor back into the process as if he had never left.

Keys to a smart transit-oriented project

Urban cluster projects have a delicate chemistry. With so many variables, players, financial formulas, and expectations involved, it's easy to end up on the wrong side of the track before the first shovel of dirt is even turned.

“From a city's point of view, these transit nodes will become a gateway to the city, and everybody has high expectations of what that gateway should look like,” says designer Chek Tang, principal of Oakland, Calif.-based McLarand Vasquez Emsiek & Partners, which specializes in transportation-oriented developments (TODs). Hence, laying the early groundwork for the TOD is every bit as important as its execution, says Tang.

“City governments have an entrenched lack of familiarity in TOD projects,” adds Austin City Councilman Brewster McCracken, the city's point person for two planned transit villages along its future light-rail line. “So, it's absolutely critical to be transparent from the very beginning and to have shared information and shared goals.”

That's a message that Marilee Utter, a Denver-based national transit consultant for Citiventure Associates, routinely carries to cities, architects and developers. Over the years, Utter has compiled a list of five crucial steps cities should take with developers in the early-planning process of a transit-oriented project:

Map out the objective: Cities should aggressively determine the project's initial vision, instead of the developer, urges Utter. “Who better to know the city's culture than the people who hold office there?” Conversely, communities should cede decisions on design elements such as pedestrian-flow patterns to the architects and developers.

Optimize land usage: Cities should commit to studying and understanding a TOD's requirement for higher-density development and less-than-standard parking ratios. Cities should assist developers with land assembly from the beginning of the project, Utter stresses.

Listen to your neighbors: Nearby residents are the most likely to resist plans for a transit village. Their concerns should be prioritized in TOD master plans, tenant mix and traffic flow.

Use quality materials: Construction materials should be top-of-the-line and help make a statement about the project's staying power, Utter says. Additionally, cities should insist on exemplary street designs, but not demand that every enclave or street have retail.

Understand your customer: Project architects and developers should strongly link the development's access points to its design and theme to further create continuity. “Always think about the consumer,” emphasizes Utter.