Its Corridor Protection Report


Part 6.0 Public Involvement



Download 0.71 Mb.
Page4/6
Date01.02.2018
Size0.71 Mb.
#38481
TypeReport
1   2   3   4   5   6
Part 6.0 Public Involvement
Something of a misnomer, both “public” and “involvement” are redefined, in our opinion. Those involved in creating material for the study include public officials from FWHA, the Department, the three counties, and local governments. Representatives of the citizens were involved, but the public at large, was not. As reported in this document, their involvement was limited to comments submitted in writing, by phone, and by email.
Either District 8 or the consultant replied to each person adding a comment. Some were form letters; most addressed the specific question raised by the commenter. And after tallying the results of the comments, their involvement was reduced to a 7-volume file. Continued involvement by our group and other individuals was documented, but filed without action in each case. More on this in Chapter 5.
One irony, however, needs to be highlighted. In Volume E, 11 citizens and 13 groups were classified as “Significant Special Interest Groups,” while the actual special interests, such as the Southern Illinois Builders Association, were not. We believe this treatment indicates the relative bias of the Department to dismiss the public, rather than to listen and engage them. We note that of the 11 individuals, five expressed an opinion opposing the connector, while the other six expressed no opinions that were recorded. We know now that at least one of the six, Frank Heiligenstein, a member of the St Clair County Board, is now opposed to it.
There were 11 meetings/hearings conducted by the study group. They were held in 4 sets over 18 months at 4 locations. The Department says a total of 3,014 people attended them. Yet, many people attended more than one meeting. We sampled 6 meetings and found that about 15% of the attendees were at more than one meeting. The actual number of attendees was closer to 2,550. The attendees were not asked to provide business/political affiliation, but we noted at least 15 elected/appointed individuals and businessmen among those signing in at one meeting.
There were unique comments from among the attendees, for a comment rate of 9%. Disregarding requests for more information (maps, etc.), and removing the political/business interests we identified, 93% of those commenting opposed the project, while only 7% of citizens explicitly supported it in their written comments.
The Corridor Protection report indicates that 180 people expressed support for the project, and 186 expressed opposition (Table 4). That includes 35 letters of support received from business and politicians prior to the hearings. Such data suggests the public is apathetic about the project and that all politicians and business people support it. However, one need only examine the Consultant’s definition of the word “support” to understand that the public is anything but apathetic. The criteria includes anyone “not fully supportive,” “is realistic…that changes happens,” is “skeptical of the project,” or who suggests the Department “explore alternatives.” Such criteria lead to data that is misleading, at best, or deceitful, at worst.
We reviewed each comment form and all other written correspondence in the official record. Our approach was to be more objective and therefore our interpretation of many comment forms was different than MACTEC’s. We classified comments described above as neutral—neither expressly supporting the project nor expressing opposition. We believe, however, that such actually comments indicate a tilt toward opposition, whether they don’t want the highway in their neighborhood or just don’t care to fight “progress.”
If one reexamines the comments and classes them ONLY if support or opposition is actually “expressed,” the conclusion is much different. Forty-four people (44) expressed support for the project, while 104 expressed opposition, and 221 were neutral. That is, more than 70% of people who expressed an opinion expressed opposition to the project! That’s a far cry from the impression the report wants to leave.
We also note the trend in the report’s numbers. Support at the three initial meetings was 2-1 over opposition. By the time citizens had a chance to understand the project and its magnitude, opponents outnumbered supporters by nearly the same amount. Again, these are the report’s numbers, using MACTEC’s definition of “support.” The magnitude of opposition trended upwards, too. Only 51 comments forms expressed “for/against” in the first set of meetings, but there were 126 such forms in the last set. We saw one early supporter change his position between the first and last meetings, so even early supporters began to see the project for what it is.
Though the report adds that 35 business people and politicians wrote in ahead of time, it omits the fact that 271 people also wrote the Department after-the-fact. Of those, 93% who expressed an opinion (214 of 231) opposed the project! There were many more than 271 letters, emails and other correspondence in Vols D, E, and F. We eliminated all the duplicates, neutral comments and politicians, so these numbers represent unique individuals—citizens for whom the Department works and to whom it should be responsive. For this summary, we included people who wanted the Department to move the connector to somebody else’s yard (NIMBYs) as opponents, rather than neutral or vague. We should add that a few people sent in multiple emails opposing the project in some colorful language. These people were counted only once. Moreover, not one of the 271 people changed his/her mind.
Not surprisingly, most supporters were either a business person, who expected to benefit from the project, or a politician. For example, one letter came from the Southern Illinois Builders Association. Among their members are both concrete and asphalt companies (One owner of an asphalt company was an SIBA board member at the time.), as well as the various trade unions. In September 2004, SIBA went so far as to send a letter to all its members stating, in part “It is essential that IDOT receive a significant influx of correspondence supporting this project” in order to counter the apparent public opposition. They even included Talking Points on what to include in the support letter so members wouldn’t screw it up! The obvious result was a number of businesses supported something they knew nothing about. Of the 57 letters received just before and after the November 2004 series of meetings, at least 27 were form letters likely coming from this lobbying effort. Yet, the Department and the consultant accepted the comments and included them in the summary, knowing full well where they came from and why they were received!
We provided two additional lists to the Department following their meetings. One was an list of comments from people who emailed Stop158 after they attended one or more of the hearings. There were 260 comments—nearly as many as received by the Department in emails and letters (Appendices D,E, and F) combined. They are contained in Appendix B. A couple of comments are representative and warrant mention. The project is “another example of elected officials not listening to the people.” “I moved to this area to get away from the effects of..sprawl..” and “don’t let this happen.”
The second was a list of people who signed our petition opposing construction of the highway. That list comprised 2,065 people; it is contained in Appendix C. Despite having the documents in hand, the consultant did not include any of our contributions in its development of the summary conclusion. If they had, their count would have been 180 people in support and 2,251 people opposed. Their conclusion on public support would have been much different.
One great travesty in the state’s exercise of this study is that the Department considers the people and groups writing for building associations and politicians to be “stakeholders” while the thousands of individuals who took the time to express opposition are not. So, even though it touts Context Sensitive Solutions as their approach to project development in theory, it does not do so in practice.
Failures of Corridor Protection
Section 4-510 of the Illinois Highway Code (605 ILCS) provides for the identification and protection of right-of-way for future construction of roadways. We opened this chapter by saying that the state’s position is that only with corridor protection can future social problems can be avoided; that the state is in a better position to protect the environment than current property owners; and that capital improvements to properties, where rights-of-way may eventually be needed, can be controlled to prevent the cost to the state from getting beyond a reasonable amount. Corridor protection is the cure to prevent any of that from happening.
We question a number of assumptions that are needed for this hypothesis to be valid.
Leave a Suitable Legacy
First, there is the presumption that leaders today know better than our descendents what’s good for them. That society is ever-changing is obvious; what’s not so clear is how it will change into the future. Chapter 4 will examine a number of the social trends that experts predict will influence our children and grandchildren as they grow older. Among the impacts is expected to be a reduction in auto travel, so there exists the real possibility that no new road will ever be needed. The experts’ writings on these matters has, so far, been ignored by our leaders. We wonder, then how they can ever “know better?”
We believe our descendants have the right to make their own determination and should be afforded that opportunity. Should conditions warrant, they can make the decision to build.
After all, it’s their money we would be spending today to build it! Nearly every capital project is funded through borrowing, whether it’s a private note/mortgage or a bond issued by a government entity. Roads are no different in this regard. We may start the payback, but before it’s paid for completely, our descendants will cough up a sizable share.
Protect the Environment

Secondly, what basis does the state have for assuming property owners will fail to maintain their property and harm the environment? For the GC corridor, much of the land is agricultural; we submit that the farmers on that land would not harm themselves, financially or otherwise, by failing to maintain it. The state’s intent cannot be to end chemical runoff, protect rare/endangered species, or otherwise control threats to the environment because there are no such protective actions or responsibilities specified in the corridor protection statute.


For improved properties, a certain portion will fail to maintain the property and others will fail to observe environmental rules, but there exist other remedies to correct any damage done to the environment. Again, corridor protection does not need to be imposed to prevent it.
Costs
If construction is put off in perpetuity, or is never needed, the costs of protecting the corridor will have been wasted; the adverse impacts on property owners in that corridor will have been for nothing; and the potential offered by the land protected from improvement/development will have been lost. The best business decision would be to cut the public’s losses as early as possible.
Exactly what amount can be saved by protecting this corridor, and how does that compare to other land acquisition and project costs?
The report estimates the cost of acquiring all the property for the highway would be 15-20% of the construction cost—or $60-80 million. Mr. Meyer, head of District 8’s land acquisition section, estimated the cost to be approximately $77 million (in 2008 dollars) during our meeting with him. Here’s our estimate:
The protected corridor covers 2,385 acres. Of that 2,042 acres are farmland, 255 acres are single family residential, 41 are public land, 34 are business, and the balance are a mix of rail, church, school and utility. Thus, there are three kinds of private property that are contained in the corridor identified in this report—undeveloped land, farm land, and improved properties (i.e., tracts that have houses, businesses, or other structures on them).
The Illinois Society of Professional Farm Managers and Rural Appraisers 2013 report indicates that the farm land in the corridor is average or below, and that prices for such land are $10,900/acre. Taking the more conservative value of transitional land ($9,600/acre), the value of farmland in the corridor is (rounded to) $19 million.
The Corridor Protection Report states the median home value of properties in the corridor area is $110,000; there is no corresponding value for businesses, but let’s estimate that value to be $2 million. Adjusting for inflation, homes are now valued at $152,000. One hundred eighteen (118) would be displaced with an approximate valued of $18 million; and the 12 industrial/commercial properties would cost approximately $24 million.
Fairview Heights paid $8 million to raze a church, so we use that figure. The rail, utility and school could cost another $10 million to relocate/acquire.
The total current value of the properties that would have to be purchased by the Department to build the GC is approximately $79 million.
The Added Cost without Corridor Protection
Over the last 25 years, 2.4% of undeveloped land has been developed in the state of Illinois. That ranks Illinois 31st nationally. There are no listed privately-held undeveloped acres in the corridor. Therefore, the savings from corridor protection is $0.
Most of the 2,042 acres of agricultural land in the corridor is farmed by local families. In Illinois, 2.2% of prime farmland has been developed, so we should expect 45 acres in the corridor to be developed over time, leaving the other 1,997 acres unaffected. Demographics for St Clair County suggest that the 45 acres would develop thusly: 39 acres would become residential, 4 acres commercial, and 2 acres open space.
Residences in the county have been platted on 2+ acre lots and most business lots exceed 5 acres. Therefore, no more than 19 residences and 1 commercial site can be expected to be developed over the next 25 years in the corridor. The average value of homes on 2-acre lots is approximately $350,000, and the value of 19 such homes is $6,650,000; and the value of a small commercial venture on a 4-acre lot is again randomly placed at $2 million. The value of open space is $19,200. Thus the incremental increase in value of undeveloped land would be approximately $8,670,000.
Property already improved will increase in value only when major capital improvements are undertaken by the owner, and then only so long as the property is maintained and remains productive. There will be some increase. The annual rate of issuing building permits in St Clair and Madison counties in 2010 was less than 0.1% for the 288,000 parcels. There are 130 improved properties in the corridor, so one should expect one of those to have a capital improvement every 2 ½ years. If the average improvement for a residence is $50,000, then after 25 years, 10 improvements with a value of $500,000 can be expected. The expected value of capital improvements for the 12 commercial ventures in the corridor is $100,000. The incremental increase in value for improved properties would be $600,000. This analysis is purely academic since the Department has elected to allow capital improvements to proceed, and not to acquire properties.
If corridor protection were not in effect, properties in the corridor would rise by roughly $9.2 million, or 11% of land acquisition costs and less than 2% of project costs. We hasten to point out that 2% is within the margin of error (cost overruns) for most project estimates.
We would also note that the corridor was adjusted because of citizen input in Columbia. The preferred corridor was sited farther south to avoid the Pines subdivision. That adjustment added nearly 4 miles to the length of the facility (37 in the Feasibility Study to 41 in the Corridor Protection report). At the cost of about $10 million per mile for new construction, that added $40 million to the cost, much more than the amount to be saved through protection.
What was the cost to establish and maintain the corridor in the first place? The corridor protection report, written by MACTEC, the cost of preparing legal documents to record all properties and posting notices, the annual costs of staffing the corridor actions (land acquisition, planning, etc.), the costs of 10-year reviews, and so on cost millions of dollars. The net is that over the long run, the state saves little or nothing for all the effort and anxiety!

Has corridor protection worked so far?
The answer is a resounding “no.” The District 8 land acquisition office has purchased only 5 parcels in the corridor—and those were in 2005, at the onset of corridor protection. We reviewed all the cases which came to the Department after that first one with Mr. Mike Myler, Chief of Land Acquisition, in November 2011. Eighteen were for residential improvements and 32 were for commercial properties. The latter ranged from strip malls to entire subdivision plans. None of the properties were purchased and every improvement was allowed to proceed. We are unaware of any acquisitions since 2011, either. Based on that alone, it would be fair to contend that corridor protection is not protecting the public from increased costs.

We would also point to the 2015-2020 Highway Improvement Plan which shows the budget for land acquisition in the GC corridor has dropped from $100,000/yr (in the 2005-2010 plan) to $10,000/yr. A 90% drop signals to us that the Department does not expect to purchase any property for at least the next 6 years, but rather will allow capital improvements to continue.



Recall that the FWHA said environmental and social impacts must be minimized, as well. To date, there’s no evidence that corridor protection activities by the district have affected either one. We would suggest that the social impact has, in fact, been negative. People worry about the values of their properties, as they prepare to sell them. They are put out by having to give IDOT a term in which to decide whether to buy them out, if they contemplate a capital improvement. Cities have to adjust planning for a road that could be built past their plan’s vision.


Maintenance Lost
As to the opportunity costs of the highway, we believe the things that must be given up to afford this highway are too valuable to be sacrificed. The GC cannot possibly provide an equally valuable benefit. Rather, it’s the idea of the highway that must be given up, so that other transportation activities—road maintenance, public transport, bikeways and multimodal corridors, green communities, intelligent systems—can be pursued.
Among those things, maintenance of the existing system should be first and foremost. A number of studies have been conducted over the years to judge the cost of maintaining a road system. The University of Wisconsin Engineering Department published its cost calculations for three states (Wisconsin, Michigan, and Ohio) in 2011. Maintenance costs ranged from $2,309.24 to $8,468.70 per lane mile in 2006 dollars. The Texas DOT estimated costs at $4,040.00 in 2008, noting the rapid rise in costs from 2004 to 2008 could be traced to big increases in both oil prices and union labor costs. In 2010, the Sacramento Council of Governments reported spending an average $25,000 per mile (not lane-mile) to maintain and rehabilitate its system.
We think a reasonable estimate might also be determined by evaluating Illinois’ spending on maintenance. District 8 published its estimates for maintenance work in the current 2015-2020 state highway improvement plan. In the plan, the district expects to repave about 167 miles of roadway at a cost of $163 million. That includes local, state and interstate roadways. They will spend another $56 million on other maintenance activities—notably safety improvements. But, because that work is unrelated to maintaining the specific 167 miles, and because some of it is recurring (snow removal, etc.), we do not count it for this simple calculation. If the average road is 3 lanes, then District 8 will spend about $325,000 per lane-mile to keep them in satisfactory repair; and if the average repaving job lasts for 20 years (approximate design life), then it costs $16,000/lane mile to maintain the system each year. Even adjusting for inflation, that’s much higher than other states’ estimates.
But spending is not the same as cost, as too little or too much might be spent in a given period, to do the required amount of maintenance. Consequently, the cost to maintain a lane-mile of road in the MetroEast is virtually impossible to calculate. Yet, we will pick a number, anyway, to illustrate the opportunities lost if building a GC.
From the data available, we would place the actual cost at $8,000.00 per lane mile per year. (We believe Illinois overspends, and misdirects its maintenance work.)
Assuming we are correct (within a standard deviation of the best cost number), building the GC could prevent the state from fixing 10,000 lane-miles of roads in each of the 20 years of a staged construction, something like District 8 did with I-255. That’s more than all the lane miles in St Clair County! Are the citizens willing to give up fixing all their roads for 20 years so they can have a new highway that the Department won’t be able to repair, either?
It is not only our group and the state of Minnesota who believe opportunity costs are important and should be considered when funding a project. It appears the Department shares our view and recognizes the opportunity costs of other spending. In the current 2015-2020 HIP, IDOT says “…given the considerable needs for funding for other transportation modes…IDOT-maintained mileage is expected to drop (from 82% acceptable in 2014) to 61 percent acceptable at the end of 2020.”
Thus, our leadership has willingly sacrificed the condition of our highways for other transportation projects—most notably high-speed rail. That is the “opportunity price.” Funding the GC will similarly exact a price.
What else could be had for that money? Four hundred new $50 million schools to replace the aging ones in the next 30 years; enough grant money to operate MidAmerica Airport with no help from the citizens for 100 years; enough to demolish every uninhabitable house in E. St Louis, Venice, Washington Park, and National City and to rebuild those neighborhoods; enough to clean every Superfund site in the MetroEast; and more.

Other Critics of Corridor Protection
Our analysis of the actual benefits of corridor protection is not the first one.
Others have done assessments of the value of corridor protection and they’re generally critical of the process, too. Writing for the state of Minnesota’s Department of Transportation, Gary Barnes and Sarah Watters reported that their analysis of 30 transportation projects nationwide “…did not find much apparent financial value in early purchase of land…” They noted there are five broad issues to consider, especially as the FWHA asserted that corridor protection must recognize environmental and social impacts, as well as financial ones. Those broad issues include identifying the true purpose of the protection, lost opportunity costs, and the impact of failing to use the corridor (the “no-build” decision).
On the issue of government’s definition of a corridor’s true purpose, the University of Minnesota’s associate professor Dr. Frank Douma identified at least four weaknesses in current practice:
1. Poorly conceived economic development plans. There is no economic development plan for the GC corridor. The Feasibility study only hopes economic development will sprout up, later. Experts now know that such development hardly ever occurs.
2. Financing problems. The final cost of the desired limited-access GC could reach well over $1 Billion. Today, 82% of funding for such a highway is from Federal funds. That’s today, but the Highway Trust Fund has been insolvent for several years, already. Borrowing has brought the national debt to the same level as the annual GDP; look what that did to Greece. We believe it’s increasingly unlikely that the Federal government would fund such a project. We also doubt that the state would devote that kind of money to such a weakly envisioned project, either. We know the three counties won’t fund it alone. That ought to suggest financing problems are the second of Douma’s weaknesses.
3. Design errors; specifically, overkill in the concept. This project is not designed to solve any transportation problem. In reality, the MetroEast does not have the magnitude of problem experienced in many other parts of the country. This could be called a classic case of overbuilding.
4. Citizen preference. Douma called this weakness the biggest one of all. He noted that too often it’s the easiest thing for planners and politicians to ignore. We find the same thing, here. Our efforts to convey the citizen’s message to them is contained in Chapter 5.
Alternatives to a GC

There are any number of construction alternatives that were not part of either the Feasibility Study or the Corridor Protection Study, both of which focused only on the preference for an outer belt divided highway. We believe growth over the next century can be handled by a combination of the following listed improvements to existing arterials and collectors. We note that officials have suggested the GC could be built in stages, but counter that building these alternatives as they are needed serves much the same purpose, would more directly address the localized transportation problems, and would be cheaper.


Widen IL158 if/when there is growth in Millstadt to the west and east.

Widen IL163 if/when there is growth north of Millstadt.

Add a route 158 bypass south of Millstadt, if needed

Widen western portions of Freeburg-Douglas Road as Smithton grows

Widen portions of RT159 toward Belleville as Smithton grows

Widen Greenmount Road north of IL15 and consider both widening Plum Hill School Road and connecting it with new construction to Jefferson (appx 1.4 miles along Sugar Creek) when/if additional development occurs in The Orchards, Orchard Lakes, Maple Hill, Fox Valley Estates, and Greenmount Manor subdivisions.



Widen Scott-Troy Road when/if additional development occurs in the Braeswood, Albers Farms, Whispering Hills, and Johnson Farms subdivisions. Expansion of Sunnyhill Lake Estates, Hearthside, Steeplechase, and others farther north and west may not occur, as they are nearly complete and have little topographically usable property into which to expand. Steep sloping terrain, conservation areas, and a number of creeks--Ogles, Hagemann, Little Silver, Engle, Deer, Silver, and Mill--severely inhibit further subdivision/expansion.
We are not the only ones thinking targeted improvements are the best alternatives. The March 2010 amendment to O’Fallon’s Comprehensive plan includes plans to improve or construct no less than 12 local roads. Most of that work is to widen existing roads. We agree that’s the right approach; and it seems the city intends to do the work only after the need is established or to support actual business investment in the area.
Yet, one section of the plan centers on the GC. The plan is designed to capitalize on the highway’s (distant) future presence. Mayor Graham defended that section, by observing that it would be imprudent to ignore what the state and county are doing in O’Fallon, even if he didn’t believe it was necessary.
Final Comments
Just as the MACTEC experts assessing the five sections of the GC corridor for this study applied (educated) common sense to each criteria to come up with the preferred corridor, common sense should guide both experts, elected officials, and laymen to a reasonable conclusion about the GC project.
The “no build” option should be sensible and self-evident. It is for this reason that we believe a Phase I Environmental Impact Study isn’t needed to establish that this project is itself not needed. Certainly, a reasoned assessment like the one provided in this paper should be enough to judge the project as too big and too wasteful to meet the real needs of the communities in the 3-county area. One should be able to dismiss the “desire” for a highway, when it is balanced against the facts and circumstances.
One might argue that the Federal government pays for 82% of the costs, so we shouldn’t be overly concerned about opportunity costs; that money is appropriated for specific programs so if Illinois doesn’t get the money, some other state will; that such transportation dollars cannot be reprogrammed to build a school or clean a Superfund site. All of these are rationalizations that ignore the fundamental issue. Money is fungible; it only takes the right group to make the decision and the right people to make the case. And all that money comes from the taxpayer—not the Federal government.


Chapter 4
CURRENT EXPERT THINKING ON TRANSPORTATION
Hundreds of studies and predictions, many detailed in this report, prove that nearly every trend in America today will result in less travel demand, which in turn, will result in less demand for our existing roadways and virtually no demand for new ones. Some of those trends, such as the aging population, will have a bigger influence here than in other parts of the country. Accepting that conclusion is sensible because it means growth and development over the next 40 years will mirror the reality of this region’s last 40 years.

We evaluated a large number of studies which directly bear on the transportation question, and which will influence regional and local activities. Those studies cover a very broad range of issues tied to transportation--and highway usage in particular. They include:

Social and cultural trends (attitudes, housing, sprawl, and community development) Demographic trends affecting transportation (population growth, aging, etc.)

Employment trends

The economics of highway spending/investment

Trends in car usage

Transportation planning and management (highway maintenance, congestion mitigation, traffic safety, and so on)

Actual outer belt highway experiences


One theme seems to be common to most of them: highway travel will diminish in the future, as US communities becomes more dense, and people use more varied modes of transportation.
The Victoria Transport Policy Institute listed 10 factors affecting future demand for automobile travel in its November 2013 study, “The Future isn’t What it Used to Be.” Because of today’s trends in eight of them, the institute predicts net travel demand will decline as time goes by. The downward pressure is significant for 7 of the 8 factors. One factor is neutral, and one factor might cause travel demand to increase. That occurs when people move from poverty to the middle class. However, for the US that prospect looks less and less likely. After 50 years of failed attempts to eliminate poverty, America still has widespread poverty; and despite the end of the 2008-2009 recession, the middle class is still shrinking. There is nothing currently being discussed to turn that trend around, either.

This chapter will examine the trends which will determine the region’s need for new transportation infrastructure. It will outline what the experts currently believe and forecast in a number of disciplines, and capture salient conclusions from their studies which validate our contention that continuing to build outer-belt highways, which encourage sprawl, is wasteful and counterproductive.


Social and Cultural Trends

There are a number of such trends in social behavior all of which mean people will be driving less in the future, including people living in the MetroEast. We shall address four of them—the future consumer, lifestyle changes in view of the maturing millennial generation, sprawl, and the environment.



The Future Consumer
One used to be able to find one or two empty strip malls in nearly every town. Now, many large malls that were built in the last decades of the 20th century are also having trouble staying in business. Locally, Crestwood Plaza closed a couple of years ago, and as recently as July 2014 the Jamestown Mall in Florissant, MO, closed. And the new outlet malls in Chesterfield aren’t doing the business expected.

Decentralization in shopping has come to the MetroEast, too. Sales volume at St Clair Square is down as retail relocated to more scattered and smaller destinations. Yet, the new trend does not mean more sales volume. The numbers and sales tax revenues are down from pre-recession numbers and cities, like Fairview Heights, are having to increase other taxes to make up the shortfalls.

Green Street Advisors forecasts 15% of existing malls will close in the next 10 years. In its 1/1/13 issue, Forbes magazine also discussed “The Coming Death of the American Shopping Mall.” Both economists presented solid and logical reasons why this will happen. Three of their reasons are significant.

First, some of a mall’s anchor businesses, like Sears and J C Penny, are having financial troubles and are closing stores as a result. Anchor businesses are not alone with poor sales. Smaller retailers, like Radio Shack, Sbarro’s, and Men’s Warehouse had, or are having, financial difficulties, too. At least four of the top 100 mall retailers/businesses, like Circuit City, Office Depot, and Border’s, went bankrupt and closed thousands of stores in the last few years.

Secondly, according to US Census Bureau data, since 2005 online shopping has nearly tripled, replacing a substantial portion of the mall shopping. Cyber Mondays are now in vogue with young and older shoppers. In 2013, online shopping was almost 8% of all retail sales by some estimates, and it might well rise in 2014.

Because major retailers find it economically efficient to have only one inventory rather than dozens or hundreds at mall stores, they are more than happy to offer online sales, often at prices which are lower than the in-store prices. That success was not lost on the Walmarts, Costco’s, Lowe’s and other big retailers, either. Most of them now offer online shopping. This trend is expected to continue as the younger, tech-savvy millennials and Gen Z shop.

Third, retail, and mall shopping in particular, will suffer not only because of the languishing economy and the “new normal” economy predicted by the US Bureau of Labor Statistics, but also because there is greater emphasis on buying (fewer and more expensive) American products. Consequently, retail dollars will not buy as many products.

All these add up to fewer road trips to go shopping.



The search for healthy lifestyles.

To gauge the trend in the search for healthier lifestyles, one needs to assess the attitudes and preferences of the 70 million millennials who are actively engaged in that search. According to a study by the American Public Transportation Association, and bloggers at the Huffington Post, millennials are a tech savvy generation and use technology at a much greater rate to connect with their community. One survey showed that fully 26% of millennials said one of the things they saw in themselves and friends was “feeling like a better member of the community” through the use of technology devices. Though that might seem contradictory, they use social media as a satisfactory substitute for physical travel, so for them, there is no loss of the community connection. To the contrary, many youth suggest that the connection is actually strengthened as there is more time to connect, when compared to the time “wasted” using transportation to connect face-to-face.

That is not the only interesting development with millennials. They are more committed to the concept of sustainability in the broad sense. As consumers, they use promotions, coupons, and other cost-saving means and, as a result, have also become the fast-growing segment of the population to buy luxury goods. Their belief in sustainability means they buy environmentally friendly products—organic food, energy star electronics, and products from manufactures that are “socially responsible and …offer lower carbon footprints.”

Their attitudes towards family, home ownership, and suburban living are much different from older Americans, as well. Perhaps affected by the high divorce rates of their parents, millennials tend to marry later or not at all, opting for cohabitation. They do not generally believe having a family means moving to the suburbs or needing an automobile, either; specifically, only 30% of current millennial city-dwellers surveyed said they could envision a time when they would move to the suburbs.

On transportation issues, millennials understand the freedom and flexibility afforded by the car, but are willing to give up some of that freedom. Reasons offered include a car’s affordability, the availability of other alternatives which are better for the environment, and getting a better sense of community by living and traveling together (i.e., public transit). Millennials see far fewer occasions when the car is a significantly better choice than some other means of transportation. An International Transport Forum report in 2012 underscored that point with its observation “that per capita car use among young adults is down,” while use of public transportation is up. The forum report also noted that social media is replacing travel in any number of circumstances for both the young and not-so-young.

The most common times that a car would be preferable are when the weather is bad, when speed is essential, or for running errands (multiple stops). Beyond those few times, walking, biking, and public transport are acceptable alternatives. Indeed, of the more than 370,000 millennials surveyed, less than half expected to buy a car in the next 5 years.

Perhaps in response to these trends, it has become common for city planners to look at new development, as well as redevelopment, with an eye toward building places that can provide for that better, healthier lifestyle. The National Resources Defense Council describes such development in detail in their article, A Trip to Sustainaville. Their sustainable community puts an emphasis on preserving the land, the natural and cultural resources already in place, and providing multiple means of transportation. Sustainable communities tend to be more densely populated, offer public green spaces, and have mixed-use developments, making much of community life (schools, shopping, parks, etc.) within walking or bike-riding distance. In short, they offer what millennials are seeking.

Such communities exist in America already. Portland is often cited for its smart-growth, modern approach to urban living. Much of America’s future’s development, in both urban and non-urban areas, is expected to draw from Portland’s example. Belleville is moving in that direction, too. The city has actively changed its downtown to a more walkable one with outside seating for eating, more parking away from Main Street, and lofts for more and younger residents. The Scheel Street metro station has been suggested as a place to build a Transit-Oriented Development (TOD), another modern community plan. In its 2014 Comprehensive Plan, Belleville places an emphasis on infill of the existing community with both residential and commercial construction, which is expected to generate much of the city’s new growth.

Belleville is by no means unique in this regard. As early as 2006, the O’Fallon Comprehensive Plan recognized the relevance of smart growth principles. Several of the city’s stated development goals include “encouraging densities and mixed uses that support walking and non-motorized forms of transportation,” “create alternatives to vehicular roadway connections,” and recognizing the “economic value of the natural landscape…”

Ironically, the GC study used O’Fallon’s growth as one of its primary justifications, and at the same time puts an outer belt around Belleville. The conflict between the cities’ smart growth goals and the connector’s generation of added sprawl cannot be any more clear!

Other cities in this region are doing similar things to observe ‘smart growth” principles. East St Louis has Emerson Park and a new $100 million residential project in the works. St Louis City touts its Washington Street neighborhood where lofts prevail and where residents can walk to ball games, restaurants, and a vibrant nightlife, while able to access public transit to get farther out to parks, hospitals, and other entertainment venues.

Reversing Sprawl.

The automobile and cheap gasoline, steadily rising incomes, broadly distributed wealth, and cheap credit all combined to facilitate rapid sprawl in the latter half of the 20th century. People with the means tried to capture the benefits of suburban living—better schools, lower crime, more space for play and bigger houses, and all at relatively low prices. But along with benefits came an inevitable down side. Cars were necessary to get around, agricultural land was used up, infrastructure costs went up, and the cost of public services got unsustainably high.


In 2002, Smart Growth America published its report, Measuring Sprawl and it Impact, for 83 metropolitan areas nationwide, based on census data from 1990-2000. One of the significant findings in the report was that congestion and travel times to work did not drop with increased roadways and its resultant sprawl. That notion, used to defend highway system expansion, was contradicted by the evidence in the analysis.
St Louis was among the most sprawled cities (#35 of the 83 cities). One of the reasons the region didn’t finish worse is because of our high number of street miles per capita. It raised the score for the “accessibility” criterion. (There were four study criteria--density, mixed use neighborhoods, strength of downtown, and street accessibility).
By 2014, when the report was expanded and updated with 2010 census data, the St Louis region, including the MetroEast, had worsened to the top third of sprawled regions (#59 of 221 cities). The 2014 report also shows Monroe County is the most sprawling, while St Clair and Madison counties have a bit less sprawl than America’s average urban county, owing to their mixed-use scores (variety of jobs and multimodal opportunities in a neighborhood) and accessibility scores.
What changed the scores for the region? As recently as 2006, land in this region was being used up by governments/developers at more than 10 times the rate of population growth; sprawl was indeed, occurring. According to the Farmland Trust, new highways had been the number one cause of such land consumption.
The International Transport Forum wrote in its November 2012 report that the cost of being mobile, so necessary for suburban living, is going up, because gas prices trending upward over the long term, as are related fees like licenses, auto insurance, and auto complexity and repair costs. In the US, the below-average condition of the road surfaces exacerbates those costs. The forum also notes as car size goes down, safety goes down with it. That represents another not-so-hidden cost.
In the September 2003 edition of the American Journal of Public Health, several researchers noted that sprawl is strongly correlated to traffic deaths. Having developed an objective index, they reported that both pedestrian and all-mode traffic deaths increased by 1.5% for each 1% increase in the sprawl index. The implication is that building new roads, which objective is to reduce traffic fatalities, will actually increase them.
Today, the conditions that enabled sprawl are disappearing, and the adverse effects are overtaking the benefits—at least in the minds of those who would become the next generation of suburbanites. As the conditions that stimulated sprawl disappear, the demand for it disappears, too. Indeed, sprawl has been slowing for the last decade and many city planners expect sprawl to end completely and then to reverse.

Why is sprawl reversing? For one thing, globalization reduced the job pool for American workers, so fewer and fewer people can afford the extra costs of the suburban lifestyle. For another, the boomer generation has begun the process of downsizing; they are curtailing the demand for large homes on big lots. In its place comes the demand for smaller, low/no maintenance, high density living arrangements.

There are fewer millennials interested in suburban living, and the ones who aim for the suburban lifestyle are generally only able to obtain starter homes. Finally, home-buying credit was changed a few years ago to prevent another housing melt-down. That limits the number of people who can afford any kind of a suburban home, let alone a big one. Taken together, these factors indicate an end to sprawling communities—and sooner rather than later.

According to a prediction from the University of Utah’s Dr. A. C. Nelson, demand for single-family homes, with large lots in the suburbs will drop from 79% of buyers in the year 2000 to 15% of buyers by 2030. He predicts demand for smaller, denser living—whether in the expanded city or denser suburbs--will take its place. He’s not alone in that expectation. Even the EWG highlighted an Urban Land Institute article predicting that the great places to live in the future are those which handle the changing the demographic, the shrinking money supply, and the dwindling natural resources.

That’s not all, either. Dr. Nelson reported on four other national studies, all of which found that (1) people are willing to pay more for walkable communities, and (2) fully 25% of Americans actually prefer to walk/bike to work. Perhaps part of this comes from a desire to regularly exercise and manage one’s health. Whatever the motivation, many Americans are finding that living in the suburbs and driving to the gym may not be the best lifestyle choice.

Another development expert, the writer Howard Kunstler , has been describing the eventual reversal of sprawl for a number of years. In his book, The Geography of Nowhere, he suggests that “sprawl is the greatest misappropriation of funds” that this country has ever allowed, and that contraction because of limited resources is inevitable. He notes that investment in sprawl not only puts limited resources to work in ways that harm the very things they are intended to enhance, but it also takes away opportunities to direct those limited resources to more productive endeavors. He was not talking about the GC, but he certainly described its circumstance well.


As one of the most sprawling of America’s cities, it is fair to predict that the reversal of sprawl should be felt in St Louis metropolitan area more than in other places. That should be an important consideration when assessing the need for another highway which would increase sprawl.
Environmental Concerns.

A majority of Americans have accepted the proposition that the climate is changing; many of them—notably the younger generations--also believe that it’s a problem for human existence, and adhere to the idea that global warming is accelerated from manmade air pollution (emission of greenhouse gases) and that it can be turned around. One of the major contributors to air pollution is auto emissions. That has lead to the manufacture of smaller cars, more complex pollution control devices, cleaner burning fuels (biodiesel, ethanol, etc.), and increased use of public transit. Each of these has contributed to lowering emissions, and also to a reduction in the number of vehicle miles driven.

This environmental concern is nowhere more evident than in the auto industry itself! In Jan 2010, the accounting firm of Deloitte and Touche, working in conjunction with Michigan State University, studied young consumers. They found four areas of strategic importance for marketing cars to them. Besides overall economic value, that group valued their own car’s impact on the environment. The study group found that the lack of emissions, not miles per gallon, was a major source of value to new buyers. Two of the recommended strategies were to use young people’s value of sustainability and green technology in marketing campaigns, and to better define hybrid technology.

A second concern is the future availability of fossil fuels. Not only are they primary contributors to atmospheric pollution, but as the supply diminishes, fuel prices will rise. Demand for fossil fuels will ebb, as well. That has been proved in Europe, where fuel prices have been quite high for decades. Even as we develop new sources of fossil fuel, the concern remains. Rapid price increases in the past (most notably in the 1970’s) resulted in measurable reductions in vehicle miles travelled. The trend toward less driving due to environmental concerns is expected to continue.



Demographic Trends

An Aging Population

Baby boomers in the US started retiring in 2008 and will continue to so for the next 15 years. Research by the Victoria Transport Policy Institute, released in Nov 2013, showed that as retirees age, they drive less and less until they drive only half as much as they did when they were working. It’s also particularly important to note that baby boomers have been more intrigued by the automobile than subsequent generations, so their driving reduction will have an especially significant effect. Demographics for the MetroEast show that people here are actually older than the nationwide average. That means per capita mileage will decrease faster in this region than within the country at large.

More to the point, of the 30% increase in population by 2040, a huge percentage will be in the group over 65—those driving less! As people live longer, 40% of those dying between now and 2040 will be replaced by other elderly, while only 60% will be replaced by new births.

Not only does this imply less miles driven and less demand for roadways, it underscores the change in the kind of housing that will be built in the next 30 years—smaller and more densely packed—as was discussed in the previous section of this paper. Dr. Nelson even extends the implications to commercial real estate, suggesting that it will largely be redevelopment and not new development. Both of these trends mean less need for highway expansion.



The Plight of today’s Youth

At the same time, the increase in VMT as younger drivers age is much less than it was when boomers first started driving. This phenomenon reduces the per capita miles driven even more. It could be argued that the expected 1%+/- annual increase in population would overcome that reduction, but it does not. Besides, that’s only one of the many reasons that road use will decline in the future. Others were covered our discussion of Transportation Mobility in Chapter 2, Feasibility Study.

The International Transport Forum report notes that working people use cars for commuting, whereas students do not generally need cars while attending college. Therefore, with a larger and larger segment of the population in school for longer periods, and fewer and fewer people in the work force, car usage is going to diminish. That influence can be observed in the St Louis region.

One of the results of the poor economy and the US’ ever-changing educational system is the significant increase in the number of young people remaining in school. Two forces push today’s youth into extended learning: There is a perception that a high school education is no longer sufficient to survive in today’s tech-heavy society, and most of those who get college degrees will earn substantially more money in their lifetime. That is now being revealed as something of a myth, as schools pump out more graduates than there are jobs for them, but the fact remains that young people stay in school longer.

There are more thousands who enter post-graduate work for just that reason, perhaps thinking that graduate school might give them a better chance and that the job market will bounce back in the interim. Older adults often find they have to enter remedial training programs because the jobs they had have disappeared.

One potentially devastating effect is that student debt is at an all-time high—over $1 trillion nationally. As education costs continue to rise, young and old alike will be forced to adjust their eventual lifestyle according to that debt. For millions of millennials, their affluence will be permanently affected. In turn, that eventuaity has an influence on living arrangements and transportation demand.

Education is a big business in the St Louis region, and the MetroEast, in particular, with a large percentage of adults still in post-secondary schools, either continuing their education or retraining.

Population Growth Predictions

Not only is the population aging, but the rate of its growth is slowing, as well. While the US Census Bureau predicts the global rate of population increase is going to drop from 1% today to 0.5% by 2050, they also predict the US growth rate could even drop to -0.1% (net contraction) by 2050, depending upon international migration activity. That’s consistent with a Millikin Institute presentation in a 2012 international conference in London; they also predicted that the US and other developed countries may experience a negative population growth rate by 2050. If true, the US will never reach 1 Billion people, but that population may fall after reaching 500 million people around the year 2070.

The most likely scenario according to the census bureau, however, is that the growth rate will drop to around 0.47%. Their most recent report showed that the US population growth rate was 0.71% in 2013—the lowest in 75 years (since the period between the Great Depression and WWII). If unchanged, that growth rate would put the US population around 400 million by 2050.

Another University of Utah study showed where those people would live. Their assessment is that 10 megapolitan regions will evolve, and that the share of the total US population would increase in each of them. Since the St Louis region is not one of the ten, its share will drop, implying that growth over the next 35 years will be minimal.

That assessment is consistent with Brookings Institutes expectation that urban areas will continue to grow and become the focus for much of the new transportation infrastructure. It is also consistent with EWG’s observation about the St Louis region--that “growth in the region lagging far behind anticipated growth in the rest of the country.” That prediction followed the observation that its 30-year growth rate (1970-2000) was 0.1% for the region, compared to 0.82% (or 8 times higher!) for the rest of the country.

The Utah model described growth along the two coasts, in Texas and Colorado, the Great Lakes, and the southwest. While the St Louis region was identified, owing to its relative size today, its importance as a population center in the future diminishes over time; and by the end of the study period in 2100, the St Louis region is just another part of the broad Midwest.



So What?

The only reasonable conclusion one can draw from the current literature, including the US Census Bureau’s forecasts, is that the St Louis region will have less demand for new infrastructure than the rest of the country well into the future.

Given the state of roads and bridges in the rest of the country, it makes sense to fund their higher priority projects ahead of this region’s “desired,” but not “needed” ones.

Employment Trends

Telecommuting

There are a couple of significant trends that have directly added to the reduction of miles traveled in America. One of them is the increased number of people telecommuting. A study by the US Public Interest Research Group, published in Dec 2013, noted that in every one of the top 100 cities, there was an increase in the number of workers working from home, while in 99 of those 100 cities, there was a decrease in the number of people commuting to work.

It’s estimated that 4.3% of the work force telecommutes to work. The Bureau of Labor Statistics found that 24% of all workers report working some hours from home each week. And there’s clearly a capacity for telecommuting to grow. The NY Times recently reported that number could reach 30%, depending on how one defines telecommuting

Despite the slow growth in telecommuting, and a fairly limited number of industries in which it makes economic sense (finance, technology, telemarketing, etc), there is still a trend toward more such work. Most experts believe what’s holding down expansion is management’s fears of losing direct control of its workers. That’s due in part to experiences like those at Yahoo, where employees took advantage of the absence of control. But, some people expect that once Yahoo employees correct that behavior, its president, Marissa Mayer, may reverse her decision and allow employees to move their office back into the home.

A number of surveys found that home-based employees worked more, produced more, and were happier than those doing the same work at a business site. Dinah Brin, freelancing for the Society of Human Resources Management, writes that a growing number of Human Resources directors believe as they identify employees who are productive without supervision, and when employees learn the benefits of telecommuting, companies will expand that segment of the work force. According to Meghan Biro’s article on Forbes.com, telecommuting is the future of work.

The St Louis region promotes its technology sector as one of the growing segments; it’s in that segment where much of the telecommuting is taking place. The implication is that stresses on highway driving will diminish in the future. The same can be extended to the MetroEast.



Shorter Work Weeks

There are a number of other factors, besides telecommuting, that have contributed to a reduction of miles driven to work. One was the effort to fit a 40-hour work week into four 10-hour days. There are still places that do that. As in Europe, where the 4-day work week and 35-hour work weeks are common, US workers will find they have less demand to get to work.

Another factor is the advancement of technology and its application to business situations. As far back as 1965, the US Congress noted that productivity and technology improvements might enable workers to cut their work week from 40 hours to 14 hours by 2000. Obviously, American businesses are far from that, though external forces are still causing the average work week to fall. For example, the Affordable Care Act not only redefined “full time” from 40 hours to 30 hours, but one unintended consequence was to cause many employers to further reduce workers’ hours below 30.

The Macroeconomic View

Since the economic recovery began in 2009, disproportionate shares of the jobs created were either low-paying or part time. The slow recovery of the American manufacturing industry, the political impasse affecting both sides of the energy industry, and global economic competition affecting labor signal slow and weak economic growth in the future.

That’s the view of the Bureau of Labor Statistics. In Dec 2013 issue of the Monthly Labor Review, the bureau published its outlook for the next 10 years. They envision a “new normal” economy, which characteristics include decreasing labor participation rates; a permanency in the structural change in the labor market which eliminated many skilled, high-paying jobs; slow-growing productivity; and more reliance on service sector jobs.

There is uncertainty in their predictions, owing to some of the underlying assumptions, which we would call optimistic. They expect renewed growth in construction and health care jobs and reinvestment of money that has been kept overseas to support future growth. They also note that their model assumes full employment by 2022, an optimistic view by their own admission. Uncertainty also comes from the expectation that trade deficits will decrease, as we export more goods.

The picture of the American economic future is not great, and it’s a bit fuzzy. The experts are cautiously optimistic, understandably so, because while Japan and Europe are on the edge of recessions, the US economy lumbers along a upward route.

The message for transportation planners in the St Louis region is not to do too much, too fast, and not to expect a sudden expansion of the population or the economy.



The Economics of Highway Spending/Investment

It is often said that “If we build it, they will come.” The St Clair County Board chairman used that idiom in a speech March 5, 2014 at the opening of the new Mississippi River Bridge and again at the opening of America’s Central Port in Granite City. However, numerous scholarly studies, like those discussed below, show that is not generally the case. When built for no reason except to stimulate growth, any growth follows long afterwards, if ever. Unfortunately for the St Louis area, community leaders seem to adhere to the myth to their constituents’ detriment.

The cause and effect relationship does seem to work the other way around, though. “If they come, we will build it” does produce mutually beneficial results. So, proponents of new infrastructure should be looking for businesses to locate first, then provide those businesses only the infrastructure necessary to accommodate their specific and immediate needs. That approach paid off for the communities that followed it.

Although studies disprove the claim that highways create growth, citizens often view new highways, including outer belts as “beneficial.” Such was one of the Rand Corporation’s findings in a 2011 study. That dichotomy may explain why developers and politicians continue to push new roads, often exaggerating claims about the resulting economic expansion and the number of jobs it creates to ridiculous levels. People either don’t understand the reality and believe a perception instead, or are too apathetic to care.

A few people may even judge the entire benefit in selfish terms, realizing they might save a couple of minutes of commute time. Such was the case with Mark Kern, St Clair County Board Chairman, who, on Feb 9, 2009, told our representatives that he could drive past IL15, get on a GC highway and arrive in South County, MO a few minutes faster! That the GC design would take him on a longer, and probably slower trip did not seem to occur to him.

Citizens for Smart Growth: Stop158 want reality of the situation, not the perception or personal benefit, to dictate what the elected leaders and representatives do. We suspect few people would support government investment when it might fall into the category of “wasteful spending.”




Download 0.71 Mb.

Share with your friends:
1   2   3   4   5   6




The database is protected by copyright ©ininet.org 2024
send message

    Main page