Regionalism

Apologies and Ramblings

My apologies for the long absence. Hopefully, with my new phone and this WordPress app, I will be able to post more frequently. I want to get my posts in before this fall, when I make my move across the country. Although, while my posts will be less frequent, I hope that I will be able to learn some useful stuff while in Oregon that I will be able to use when I finally return to Hampton Roads.

We have a lot of potential here, but for some reason, our leaders won’t make the best of it. Portland looked just like Norfolk in the 70s. They had blocks of vacant parking lots. New construction was taking place in the Portland suburbs and the central city was decaying. This is where our regions split. Hampton Roads kept spending money on new highways and infrastructure designed to facilitate new suburban construction. Portland, however, fought the idea that unrestrained growth was good for the region. Their biggest concern? That this new growth was destroying vital farmland, forestland, and other open space. They took their concerns to their legislatures and, after much debate, enacted some of the most comprehensive growth control regulations in the country. This accomplished their goal: protecting open spaces. It also had an unintended consequence. It forced growth back into the city. All of the money that would have been spent on suburbs was then available for the city. They opposed new highways and even fought to get some torn down. They used the savings from that to build a first class public transit system. One of the most important aspects of the new Portland was that they came up with a real comprehensive plan and stuck to it. For this reason, Portland is a well run, well designed city.

Back to Hampton Roads. While Portland was engineering a new city, Norfolk decided the best course of action was to tear ours down. Hampton Roads as a whole, spent a fortune building new highways to allow for quick driving to and from the suburbs. While Portland worked and grew as a region, Hampton Roads  cities decided to compete against one another. Each city had to fight for its share of new development, for is share of tourists, even for its share of defense dollars. For this reason, we live in a region with a half-dozen “downtowns,” each of them only a fraction of what they could be if they were built as one. We now live in a region with no pattern of employment or housing centers but rather a sprawling mass of congestion. While cities like Portland are the places-to-be amongst todays young people, Hampton Roads is not. Without finding some way to attract new younger residents, our problems will only get worse.

We need to get more forward thinking people in our elected offices from local to state levels. We need to learn from places like Portland and act accordingly. They aren’t perfect, but they still have alot to teach us. Projects like the Southeastern Parkway are a waste of money. New highways only serve to promote new suburbs at the expense of the rest of the region. Positive investments would include a true all-encompassing master plan for the region. This plan would include a well thought out fixed guideway mass transit system like light rail. It would also work to rezone the areas around transit stops to encourage high-density developments. An emphasis should also be put on expanding freight rail to take more trucks off the roads. Above all, Hampton Roads needs to formulate a plan to share revenue between cities, preferably by merging into one jurisdiction. People should not be afraid of a merger. They will still live in the same place. Taxes can even stay the same for each segment of the new city. The goal, however, is to create a region where growth in one part is good for the whole region. It won’t matter if a new tower is but in Downtown Norfolk or at Town Center. The increased tax base will pay for both areas. Once we have a region that can function as a region, we should split our collective economic development money between attracting the relocation of large companies and creating new businesses, preferably start-ups owned by recent graduates of local colleges and universities. The opportunity presented to graduates will encourage them to stay in the area. If they stay, their friends are more likely to stay and/or move to the area.

Hampton Roads can do this. We have to make our leaders know we will accept no less.


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HRBT, US460 Both Get Private Proposals

The Virginian Pilot recently reported that the state is going to accept proposals for a new, public-private Hampton Roads Bridge Tunnel and is pushing forward with a similar plan for US 460.

HRBT

The HRBT plan calls for a new, four-lane bridge/tunnel from the Peninsula to Norfolk. The existing lanes would be used for westbound traffic. Additionally, the Monitor-Merrimac Bridge Tunnel and the James River Bridge will also receive upgrades. It would cost $4.5 billion and use tolls as high as $6 each way. These tolls would apparently be applied to the HRBT, the MMBT, and the JRB.

While nobody can argue that an expanded HRBT would ease traffic flow, I also do not think that anybody would argue that tolling all three crossings would not hurt our economy. As described, this project would give the Southside a serious disadvantage over the Peninsula. It would also negatively impact what weak regional drive for mass transit that we have. Alternatively, the “Third Crossing” would most certainly benefit our regional economy, even with tolls. Its multi-modal design would take cars and trucks off the road by allowing freight traffic and transit. The HRBT plan is designed simply to make money for those involved. The “Third Crossing” was designed to improve our regional competitiveness in the global economy. Money would still be made in a public-private partnership, but the impacts would be positive for the region.

US 460

Turning US 460 into an interstate-grade highway is a noble goal… if it were 1960. While it would certainly improved travel time to Richmond and aid in evacuations, it would not serve to increase the region’s competitiveness. The 460 project would make the Western Tidewater communities more appealing to industry and business, but at the expense of Norfolk, Virginia Beach, and Chesapeake. The new highway would only serve to expand the sprawl of Richmond towards Hampton Roads. I think it would be fair to define our region as anything within a 45 minutes drive. The US 460 project would make Isle of Wight County a mere 30 minutes away from Petersburg.

The money would be better invested in High Speed Rail. It has already been estimated that if we had true HSR from both Norfolk and Newport News, that we could operate with profits exceeding $30 million a year. That money could pay for a lot of transportation projects. The economic development that HSR would bring would also benefit the entire region, not just the outlying counties.

I am not against public-private partnerships. On the contrary, I think that they can bring much-needed capital to a tight state budget. We do, however, need to spend it wisely, in a way that will allow us to grow our tax base. This way, in the future, we will not have such a tight budget.

Economist Says LRT Cost Not Justifiable?

As part of the State of the Region report released by ODU yesterday, Economist James Koch made the statement that the cost of Norfolk’s Light rail is not “justifiable.” He claimed that the continual costs would have to be subsidized at a rate so high that it wold not be worth it. Of course, I want to believe that this economist, Mr. Koch is a smart man. I am very likely to believe that this article was the Pilot’s attempt at once again making somebody’s comment appear to support the misguided notion that LRT somehow is going to be way more costly that our current highways. LRT will cost less than half per mile than building a new highway. It will also last longer. Most people don’t realize that when the interstate system was built, it was paved with concrete in such a way as to give it a lifespan approaching 50 years. First, that lifespan is coming to an end. Second, current more ‘cost-effective’ road construction paves highways with asphalt, which last only 10 years if built and maintained properly. When was the last time VDOT maintained a highway properly. So what we have is a network of highways that will have to be reconstructed every 8-10 years. Current estimates to fix I-264 just inside Norfolk’s borders is $16 million. That is on top of the $33 million spent in Hampton Roads for repaving the rest of the highways this year. This number will only get higher as the years progress. Traffic will only get worse, meaning more wear and tear and more frequent repaving projects. If you think because drivers pay a gas tax then they pay their own way, you are dead wrong. Virginia collected around $920 million in 2008. That sounds like a lot of money. Let’s break it down though.

  • $257,700,000 – Debt Service
  • +$405,100,000 – Support to other agencies and administration
  • +$306,700,000 – ‘Special financing’ and earmarks
  • =$969,500,000 - Does NOT include Road Construction OR Maintenance.
  • $656,800,000 – Construction
  • +$1,698,000,000 – Maintenance
  • =$2,354,800,000 - Maintenance and Construction

So your $900 million in gas tax pays for administrative costs. That means that VDOT needs a 70% subsidy over what gas tax covers. Sure that sounds a little bit better than the 80% subsidy that HRT pulls in, but think about this: HRT’s 80% subsidy equals roughly $60 million while VDOT’s 70% subsidy equals $3.3 billion. Also, VDOT is not the only maintainer of roadways. Each city in Hampton Roads pays for some of their roads and the feds kick in the rest. I would venture to guess that the subsidies’ true cost are nearly equal. Let’s move on. Once you get past the negative aspects of the Pilot’s article, you get to this:

Two scenarios could change the cost/benefit ratio: if gas prices rise enough to move commuters from their cars to light rail; and if the rail is expanded to reach more people.

So here is this economist, the same one who just said that the cost was not justifiable, saying that if the system were expanded or if more people used it, the cost would be easier to swallow.  OK. As an economist, I am sure that he would agree that the first part should include all commuter costs, not just fuel cost. Right? If the total cost of operating a motor vehicle increases, then people will start to move from cars to transit. As part of the State of the Region article, the Pilot wrote:

Long standing transportation problems also make the region less attractive to businesses and the military, Koch said. [...] Road improvements, he said, will demand higher gas tax and steep tolls.

As part of his predictions of the future, he acknowledges that the cost of commuting will be higher in the future if we want to fix our transportations shortcomings. Since our transportation problems are a direct result of our region’s lack of planning and cooperation, I would also assume that he would agree that we need to start today if we want to have any chance of improving our outlook. That would be where light rail comes in. We have to built a regional mass transit system because, in the long run, it will be more effective than building roads. If you had asked me 20 years ago (or asked someone else, since I was 3 year old twenty years ago) I would have agreed that roadways were more effective. Gas was cheap. Road construction was (relatively) cheap. Now, however, we can see that there is an end to that. There will be no more cheap gas. It is on an uphill trend. The second game-changing scenario was that the cost would be more acceptable if it were expanded to reach more people. Is that not in the works? We could never afford to build a multi-billion-dollar system all at once. It has to be built in stages. In the end, despite the Pilot’s attempt at more anti-light rail news, I think that, when read into, it is actually quite positive. The Pilot itself wrote that this economist said that if there were more people and higher commuter costs, than light rail would be more cost efficient. Since we should all be able to agree that those two scenarios are approaching, then we should also agree that, while expensive at first, light rial will be more cost-effective than roads as we enter the future.

ODU Predicts Poor Future for HR

As reported on PilotOnline recently, ODU’s recent State of the Region report is predicting a poor outlook for the region for the foreseeable future. It predicts a decline in Military funding and, in conjunction, a decline in military-related industries. This would ripple through our economy, sending us into a much longer, regional recession. It also predicted a continued decline in population. This could be due to a number of factors with the biggest being a lack of jobs that young people are looking for. Also, in an area such as Hampton Roads, there is an abundance of former military people looking for jobs. This crates a pool of experienced people looking for employment, which makes it very difficult for new college graduates to find entry-level positions.

Regardless, it doesn’t have to be this way. Our various regional entities need to step up and create programs (and capital) that encourage new college graduates to start new businesses in the region. Another program could be created by the region’s universities that would give businesses a monetary incentive to hire new local graduates. That could be combined with a local/state government tax break for companies that hire local graduates for local jobs. These initiatives would solidify a young, educated base that would help our economy stay strong for years to come. Businesses would want to relocate here for the new ideas and opportunities that come with an intelligent, entrepreneurial workforce. It would also step up the appeal for local universities, making them more in-demand and, in turn, making them more likely to get grants/research projects from federal and private sources.

For the jobs themselves, we need to work harder to shift our focus from government-supported to private, developing industries. For example, the proposed project for the former Ford plant is a good step. A mixed-use development, it would be focused around a solar panel factory. There are a number of industries that would be great to focus on. A wind turbine plant would be a great addition to Hampton Roads. A high-tech battery factory would be another great addition that could also increase our appeal for a hybrid car plant of some sort. These jobs would be both industrial manufacturing jobs and jobs that would require high-tech research and development employees.

Once we started landing jobs for some of these new college graduates, more jobs would follow. Despite the widespread belief that my generation is one of moronic, half-educated slackers whose only aspirations are government welfare and tree-hugging, I strongly believe that we are more than that. Current college graduates want things to change for the better. I believe that you can have both environmental protection and free market business. Our biggest barrier to becoming our own economic force is that those currently in charge seem to have no regard for us. Once that changes, once our current leaders see that they should be focused on encouraging the younger generations to take part in the economy, the regional economy will be what we make of it.

Forget $5 Million, Try $1.5 Billion

The other day I wondered how VDOT could have an extra $5 million dollars for an HRBT study. Today I am wondering how they have $1.5 billion to spare. If you hadn’t heard, an auditor recently determined that VDOT had around $1.45 billion just sitting around. The money can be used for new projects, although they haven’t stated any particular ones. My fear is that Northern VA will get the bulk of the money. That money would do well to help get the proposed tolls down at the Midtown Tunnel. Or it could help Chesapeake pay for their new Dominion Blvd, which is an important corridor into North Carolina. It could be set aside as the state’s first payment to fund a Third Crossing. Whatever the scenario, the money should be used in Hampton Roads to start to make up for the shaft that we have received for years.