National Transportation Week, May 14-20
MINUTES FOR ITE ROUNDTABLE TOPIC "UNDERSTANDING
THE CONNECTION BETWEEN TRANSPORTATION AND THE
ECONOMY"
Jim Helmer opened the meeting and provided a brief introduction of the purpose of the
meeting. All attendees introduced themselves and their organizations.
Purpose for Roundtable Discussion
The Purpose of the Public Agency Council sponsored session is to:
1. raise awareness of the effects that the local and national economy have on our
transportation systems
2. better understand how transportation contributes to a community's vital cycle of
success
3. understand the connection between the changing workplace and the quality of
commute
4. explore what we are doing as transportation professionals to improve our local
economies
Action Minutes
Slide 1. Low U.S. Job and Wage Growth
Jim discussed that the centerline is the zero percent mark. This line illustrates that
normally within 37 months after a recession, economic recovery appears, yet in this
recession we are still at negative growth. At a local or state level we can't overcome this
national effect. Orlando Sentinel Paper was discussed on the Presidential platform.
Local San Jose News article on the Governor's 600-page document that has been put
together by local, private, etc of how to get California out of bankruptcy. Citizen
advisory has been formed. One example of the Governor's – relinquish 700 miles of
state roads back to local governments. Terrorism alerts growing to orange. If you focus
on target buildings, they are all finance – economy.
Slide 2. Federal Funding Quote from NLC
Jim discussed a quote from the Nation's Cities Magazine. Jim asked the Roundtable how
this is impacting each of their organizations.
Robert Wunderlich stated that they laid off 23 employees and eliminated another 20
positions. He stated that they are seeing record levels of economic development. They
are seeing the first regional mall. Voters approved the largest bond program and debt.
Values of properties have flattened out. Rising cost of health care is a problem not just in
Garland, but nationally. If you look at this issue, no one is addressing this problem. Jim
asked if local unemployment rate is less than nationally. Robert responded that it is
similar. Karen George stated that there are no raises, increased health care and other
benefit costs that aren't offset.
Steven Gayle discussed his area of 560k base. IBM is the base of their area. He
discussed they are updating their Transportation Plan. They are dealing with the loss of
IBM. He stated that they are looking at site development. He stated that they used to be
very strict on access management. Binghamton now will give any access in order to get
economic development.
Michael Spitz, from Seminole County, discussed that they are under tremendous growth.
People are buying second homes. Economy is services to retirees and tourism. He
discussed that each county has its own tax. Discussion of the effects of the
reauthorization occurred.
Jim asked if others were experiencing similar issues with reauthorization of federal
dollars. Gary Tsutsumi of the City of Stockton discussed that they are one of the fastest
growing areas. Housing has quadrupled in the last 10 years. Stockton is redeveloping
downtown. He stated that no one is looking far enough in advance to see when the
money runs out. He expressed concern with this issue. Gary stated that the DOT wants
the local government to take over intersections now. He is a member of the League of
Cities and they are all talking about architecture issues but there is no money for these
issues.
Richard Hawthorne stated that it is an issue of lack of operating funds. In Montgomery
County, operating issues are satisfactory, however; implementing projects like large
transit or master plan projects are not being done. Jim discussed the impact of the job
creation from federal funding.
Brian and Michael Girardot from Synchronex discussed the issues of signal products'
steep growth they had experienced since 2000 has flattened out.
Ed Mierzejewski provided that the type of development may not necessarily create the
right types of jobs. There was a roll back of the Florida gas tax which reduced significant
funding for roadways. Florida was one of the first states to put in impact fees. Most
cities are not getting but about 10% of the recovery now since the impact fees have not
kept up with the cost. Gary Tsutsumi discussed a similar issue in his area. Gary
discussed that they are issuing 300 home building permits each month, however they are
not providing jobs in the area for his people. These new homes are occupied by people
who travel to Silicon Valley (80 miles away) each day to their jobs.
Slide 3. Vital Cycle of Success
Jim discussed that in order to have a quality community, one must have a vital economy.
He provided a briefing on the outline of this slide. He stated that if you have a growing
economy you have more jobs, enabling prosperity to citizens and more revenue growth to
the local city. This revenue growth can be used to provide better services and projects,
which in turn improves the community, which stimulates the economy.
Slide 4. The Connection between Economic Development/Transportation/Land Use
Jim asked what is the economic development connection between land use and
transportation mobility. He asked if there are changes to cities' land use or other policies
to enhance economic development. If an economic development project comes in they
expect you to change zoning etc to obtain this development.
Robert Wunderlich discussed the issue of a toll road expansion in his community. He
provided a briefing of the outer loop of the toll road outside of the inner loop of 635. It
currently terminates in Garland. He has been instructed to make this a critical
development. His town is 200,000 in population but you cannot buy a suit in the town.
The city missed the opportunity the first time. They are spurs to get this done now.
Robert discussed that the mall will not work very well next to the toll road. The city will
have congestion to go along with the economic development even though they have done
everything possible.
Jim discussed examples of LOS changes being made in San Jose around transit stations.
They are changing their land use to allow higher density, reducing parking requirements
and giving LOS exemptions, and improving other modes – bike, pedestrian and transit.
City will accept congestion in the area. Michael Spitz discussed that without people there
is no economic development. Robert agreed with Michael that without people you have
no transportation issues. Robert discussed the difficulty of transit related development in
the Dallas metroplex prior to the rail system being built. He stated that now it is
operational and successful, and the cities are supporting it.
Steven Gayle discussed that they are trying to build the cycle backwards with
transportation and economic development. Gateway projects were one example he
discussed on main arterials. He discussed modest cost transportation projects that could
help drive economic development. He discussed the issue that Medicaid budget is 40%
of their budget for their county. There are little funds for transportation.
Slide 5. Discussion Topic: Roadway Congestion and Economy
Jim introduced this slide. Michael Spitz discussed that the goods movement "just in
time" is critical for his area. If they can't get there, they will move to another area. He
also discussed that from a land use area you can develop large industrial areas that
consolidate need. Richard Hawthorne discussed that the highest rent offices are in the
most congested areas. They are around the transit stations. He expressed a concern that
he isn't convinced that roadway congestion has anything to do with where businesses
locate. He stated that it isn't a simple issue, and that the most important factor is where
the CEO lives. The highest paid employee is where the company locates. He stated that
it is a complicated issue. Jim stated that it is different in different types of services, for
example in Detroit versus other areas. Gary discussed the inland port in the Stockton
area and that they got 100 acres of land for port development. This has created a
potential for development but they need to determine how to get goods and movement to
the area. Infrastructure doesn't change. Discussion was held regarding the difficulty to
get infrastructure in place to coordinate with development. Jim discussed the Alameda
Corridor. Michael Girardot provided an example of Southwest Airlines in which they
pulled out of the Bay Area since they couldn't meet their on-time performance measures.
It affected their business since people can't get to the airport. Jim stated that if you look
at the National League of Cities strategic goals, they are focused on airports and ports.
They support funding more improvements at Tier 2 airports vs. expansion of Tier 1. The
airfares there are 2-3 times the amount of that at a Tier 1 airport. Steven stated that this is
counterintuitive. If people want to live an hour minimum from their place of
employment, they want to live there. Karen George stated that there are national
statistics that show that roadway conditions affect productivity. It is the number one
statistic in productivity. It takes time to get to work, bad mood of employee. It is one of
the reasons they are pushing TEA-21. Robert stated that there is a disconnect between
the decision to pick a business location. Richard disagreed with Robert. Much
discussion occurred regarding this issue between the panel members. Richard discussed
that you can't control outer ring of development but it still impacts our community with
through traffic. He stated that there should be public policy to control this. Gary stated
that the County is suing the City over affordable housing.
Slide 6. Discussion Topic: Changing Workplace Impacts on Transportation Policies
Jim discussed that in San Jose (Silicon Valley) they have lost 200,000 jobs in the
manufacturing area in the past two years. As a comparison, the entire state of Ohio lost
230,000 jobs. The San José manufacturing jobs are not coming back. Industrial parks
two stories high are switching to brainpower, different work place. He asked how this is
affecting our work place in these buildings for other agencies. Michael Spitz discussed
that in the downtown area they are looking for development that isn't just weekend
development. Gary Tsutsumi discussed that they are trying to bring their development
back downtown, such as insurance agencies, restaurants, etc. City is buying structures.
Stockton built a new movie theatre, new baseball park, and new 10,000-seat arena, and
held the asparagus festival in downtown instead of the county area. Steven Gayle
discussed that there are transportation policy changes. For example, 10 years ago we
made our Main Street wider, now we are making them narrower. We still have the issue
of where to park the 18-wheelers etc.
Slide 7. Discussion Topic: How are Transportation Professionals working with
Business?
Jim asked how each agency is reaching out to the Chamber of Commerce. Robert
Wunderlich stated that he does an annual state of the union speech to them. He discussed
that there are individual businesses that you are trying to attract and you must look at
microscopic issues that need to be addressed. Steven Gayle discussed that both of their
Chamber of Commerce are on their MPOs. He also gives speeches to Lions Club etc.
Brian Girardot asked how cities look for buying services. Discussion was held regarding
low-bid requirements for products. Gary Tsutsumi discussed that they have looked at
some local services that are the best.
Slide 8. San Jose Economic Vision-Transportation Vision/Outcomes
Jim Helmer stated that they have reached out to existing businesses in their community.
When economy is great we tend to take advantage or ignore them. When the economy is
poor we tend to pay attention to them to make sure they don't leave. The Mayor sent out
a letter of appreciation to the critical businesses. Each department head adopts
businesses. The department head meets with them, interviews them, and provides a key
contact to the businesses. Jim briefed the panel on the 15 Strategic Initiatives of San
José's Economic Development Strategy.
For more information, visit the Web site at National Highway Traffic Safety Administration or call the toll-free telephone number (877) 558-6874.
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