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Governors
Transporta/onFinanceAdvisoryCommi8ee
Whiletheexis/ngtransitsystemisefficientandcost-effec/ve,itisundersizedand
needstoexpandtomaketheregion'sprojectedeconomicgrowthareality.
Regionswithrobusttransitsystemsworkbe8erandarechoicedes/na/onsfor
employersandemployees.
Uncertaintyintransitdevelopmentdelaysprivateinvestment.
Toremaincompe//veanda8ainregionaleconomicgoals,theTwinCi/esmustcon/nuetostrengthenitstransitsystem.
www.dot.state.mn.usQac
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ThebenefitsofaTFAC-recommendedtransitsystem:
MinneapolisandSaintPaul
ToddKlingel
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Today
Transitgetspeopletowork 0%ofridersgoingtoworkorschool
40%ofdowntownMinneapolis
USBank:50% Ameriprise:60%
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Todayand
tomorrow
Weneedtransitto
competefor
workers
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Transitmakespossiblearegion
thatdrawsworkersandjobs
Companiesarerecrui/ng
andtarge/ngthenext
genera/onoftalentedworkers,the
Genera/onYmillennials
whoincreasinglypreferurbanlifestyleswithmass
transit. UrbanLandIns/tute
Source:JeffreySpivak,UrbanOfficeMomentum,UrbanLand,
September14,2011
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Otherregionsknowthis
Mapstosamescale
Source:BillRankin,
McKinseyteama
naly
sis
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Andarebenefingfrom
theirinvestments
Denver:
#1Des/na/onforMillennials
Minneapolis:#39
MayorHancock:Theyrecomingfortransit.
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Athrivingregionisa
productwearemaking.
Transitisanecessarycomponent.
Ifweputintooli8le,
wellgetalesscompe//veproduct.
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ThebenefitsofaTFAC-recommendedtransitsystem:
SouthwestLRT
JudyJohnson
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SWLRT
Transporta)ontoserveandconnectjobcenters* * * * * * *
Downtown&
Minneapolis&
147,000&emp.*
Highway&212&
Corridor&
16,000Golden&Triangle&
Business&Park&
18,000Opus&&
Business&Park&
11,000KFTel&Drive&
Industrial&Park&
3,500 East&End&Hopkins&(Cargill,&Supervalu)&
5,000Methodist&
Hospital&
5,200Excelsior&&Grand&
Park&Nicollet&
1,000Beltline&Business&
Park&
6,000 West&Calhoun&4,200Downtown&
Minneapolis&
147,000
Jobs&within&&
Fmile&of&
staVon&
Neithermoreroadsnormorebusesworkinthiscase.
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SWLRT
Supportsjobgrowth
ComcastCustomerLoyaltyCenter
Couldgoanywhereinthecountry Workforceneedstransit
UnitedHealthGroup
4newtowers 6,600newemployees
Southwest:
2000:210,000jobs
2030:270,000jobs
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h8p:www.twinci/es.comopinionci_2049679klingel-kramer-sou
thwest-twin-ci/es-needs-light-rail
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Votersagree
Support funding for
Southwest Light Rail
Statewide
2012: 61% 2013:70%Metro
2012: 64% 2013:75%ues/on:TheTwinCi/escurrentlyhasoneopera/nglight
raillineandasecondline,betweenMinneapolisandSt.
Paul,isunderconstruc/on.Inordertomoveforwardwith
thenextplanedextensiontothesystemtheSouthwest
LightRailLinethatwouldextendfromMinneapolistoEden
Prairiethestatewoulddedicate$11millioninorderto
secure$625millioninfederalmatchingfunds.Doyousupportoropposededica/ngthesefunds?
Statewide:70%support,27%oppose,3%undecided.
Metro1:75%support,23%oppose,2%undecided.
h
8p:www.m
inneapolischamber.o
rgnews20130117mrcc-featuredpoll-shows-strong-support-for-transit-funding
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ThebenefitsofaTFAC-recommendedtransitsystem:
Theregionandthestate
WillSchroeer
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Wouldtransitinvestmentbeworthithere?
RegionalTransitSystem:
ReturnonInvestment
Assessment
www.theitascaproject.comTransit%20ROI%20exec
%20summary%20Nov%202012.pdf
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Itascaasked3ques/ons
1. Abuilt-outregionaltransitsystemwouldrequiresubstan/alinvestment.
Whatwouldbethereturnontheregional2030transitplan?
2. Investmentscanbemademoreorlessquickly.Wouldaccelera>ngbuildoutto2023changetheROI?
3. Manycommuni/esdevelopingtransitsystemexperiencemoregrowthneartransitsta/ons.Wouldsuchexpecta>onsforgrowthchangethereturnon
investment?
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1. Vehicleopera/ngcosts2. Travel/mesandtravelreliability3. Shippersandlogis/cscosts4. Emissions5. Safetycosts6. Roadpavementcondi/ons
Costsforeachscenario=capital+opera/ons&maintenance(MetropolitanCouncil)
Wecalculatedsixkindsofdirectimpacts
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DirectBenefits
Note: Benefits and operating and maintenance costs are calculated for 15-year period 2030-2045 for regionalsystem, 2023-2045 for accelerated system. All are reported in 2010 dollars.
*IRR = Internal Rate of Return, the discount rate often used in capital budgeting that makes the net present value of
all cash flows from a particular project equal to zero
Scenario
Totaldirectimpacts
2030Planwithmore
growthnearsta/ons
3
AcceleratedRegional
Plan
2
2030RegionalPlan1
Investment
$4,361
$5,29
$4,361
Low
$6,571
$10,762
$9,02
High
$10,03
$16,516
$13,927
IRR*
7.814.8%
11.218.0%
13.020.9%
Comparedtobasecasescenario
2010$Millions
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Thebenefitsofregionaltransit
faroutweighthecosts Buildingthe2030regionalplan=
$6.610.1billionindirectbenefits,
ona$4.4billioninvestment.
Accelera/ngthesystembuild-outwouldincreasedirectbenefits:
$10.716.5billion
ona$5.3billioninvestment
2030regionalplanwithgrowthneartransitsta/onswouldincreasereturnoninvestmentby$2-$4billion
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Transitbuild-out
increasesaccesstojobs
Buildingtheregionaltransitsystemwouldenableemployersinthe
re iontoaccess500 000moreem lo eeswithina30-minutecommute.
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Thepublicunderstandsthis,and
wantsmoretransitStatewide
79%agreeMinnesotawouldbenefitfromhavinganexpandedandimprovedpublic
transporta/onsystem,suchasrailandbuses.
66%agreeIwouldliketousepublictransporta/onsuchasrailorbusesmoreoen,butitisnot
convenientoravailablefrommyhomeorwork.
83%supporttheStateofMinnesotainves/ngmoreinpublictransitimprovementstoeasetraffic
conges/onandprovidemoretransporta/onop/ons.
ThisincludesasolidmajorityofRepublicans(71%,Democrats(95%,andIndependents(80%.
SurveyconductedinJanuary2013byFM3andPOSforMinneapolis
andSaintPaulChambers.
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Union Depot Track Work
Construc/oncreatesjobsforthewholestate
Homeof
CentralCorridorconstruc/onworkers