Presented by
THE NATIONAL BUSINESS COALITION FOR RAPID TRANSIT
November 3, 2003
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The rebirth of public transportation is a critical part of
America's future. Transit ridership is increasing dramatically -- primarily
because federal and state investments in transit have made it possible document
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The public clearly values public transit: in the last five
years, transit use has risen 21 percent. In 2000, Americans used public transportation
9.4 billion times, representing the highest transit ridership in 40 years.(1)
81 percent of people polled link public
transportation to improved quality of life, believing that increased public
investment in public transportation strengthens the economy, creates jobs,
reduces traffic congestion and air pollution, and saves energy. (2)
For both transit riders and the business community, the
economic benefits of transit are manifold:
1. Transit access is essential for the nation's economic
health and prosperity.
In the major metropolitan areas of the country, the engines
of the nation's economy, public transit is an essential transportation
option that can cut through congestion to provide access to job markets and
remove auto trips from the highway system, thereby helping to maintain highway
capacity for the shipment of goods and material.
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"If our transit system were to suddenly stop, our metropolitan
transportation operation would grind to a halt. This would make it impossible
for employees to get to work and for businesses to receive and ship
goods. The metropolitan economy would eventually grind to a halt as
well."
--A. Lee Blitch, President and CEO,
San Francisco Chamber of Commerce
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2. Transit helps maintain the vitality of our major cities' central
business districts.
Whether it's New York, Chicago, Washington DC, Atlanta or St. Louis,
investments in public transportation keep downtowns thriving as the locus
of finance, commerce, retail and culture. Transit demonstrates results: in
mid-2000, the average downtown vacancy rate for cities without rail was 12.8%,
but 8% for all cities with rail transit. (3)
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"Our Chicago area transit systems have been gaining ridership
within the last 5 years. But with population growth and congestion threatening
the capacity of our roadways, Chicago's central area vision plan
now assumes that 70% of all new work trips into the downtown business
district will be conducted via the public transit system."
--Gerald Roper, President and CEO, Chicagoland Chamber of Commerce
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3. Transit connects workers to jobs in suburban and rural areas.
Most suburbanites who ride public transportation are headed for work. Due
to increased rider demand, transit lines are being extended to outlying suburban
communities -- and bus shuttles carry workers from rail lines to employer
destinations. For service and entry-level employees with limited mobility
options, transit is a key link to suburban-based jobs.
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"To promote economic development, we need to extend our Cleveland
area transit systems within the next decade to provide a cost-effective
and reliable 'reverse commute' for suburban job concentrations
as well as for employees in the urban core. "
--Thomas Adler, Co-Chair of Greater Cleveland Growth Association's
Logistics and Infrastructure Coalition
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4. Transit relieves traffic congestion and improves business productivity.
The tremendous growth in traffic congestion means extra costs for business
-- higher wages and benefits to recruit workers, shorter workdays, increased
absenteeism, and greater employee turnover and transportation assistance.
Business is recognizing that travel mobility is a key quality of life issue
for its labor force. (4) Transit provides another economic
boost to business by removing autos from the highway system, thereby maintaining
roadway capacity for the shipment of goods and material.
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"As the 5th worst congested market in the country, San Diego will
only get worse as we continue to grow. Not only are we dependent on
cars, but with ever-increasing housing prices, residents are forced
to move further from job centers and the central city. Rapid transit
is the only solution to connect our sprawling neighborhoods to jobs."
--Eugene Mitchell, Vice President of Public Policy, San Diego Chamber
of Commerce
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5. Transit stimulates economic development around stations.
Supported by a steady stream of pedestrians and transit riders, a mix of
employment, retail and leisure activities are growing up around transit stations
and housing. Transitoriented development is being used as a tool to encourage
business growth, to revitalize aging downtowns and declining urban neighborhoods,
and to enhance tax revenues for local jurisdictions.
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"The Washington Metro has generated nearly $15 billion in surrounding
private development. Between 1980 and 1990 alone, 40% of the regionís
retail and of.ce space was built within walking distance of a Metro
station."
--Robert A. Peck. President, Greater Washington Board of Trade
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6. Transit reduces energy consumption and achieves clean air standards.
Increased use of public transportation is the most effective strategy for
achieving significant energy savings and environmental gains -- without
new taxes, government mandates or regulations. Emissions from road vehicles
are the largest contributors to
smog; currently, over 200 million passenger cars and light trucks account
for about 50% of air pollution nationwide. Even at current levels of use,
public transportation every year saves close to one billion gallons of gasoline
and reduces harmful emissions by millions of tons. (5)
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"Transit not only provides benefits to our economy, promotes jobs,
and creates economic growth; it also provides important environmental
benefits. Automobiles are getting cleaner all of the time, but transit
is an environmentally friendly way to travel and commute. Here is where
economic growth and promoting good environmental policy come together
to benefit us all."
--Rusty Hammer, President & CEO, Los Angeles Area Chamber of Commerce
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7. Transit generates jobs and a significant return on investment.
In project after project, a capital investment in public transportation sparks
a chain reaction in business activity that far exceeds the initial investment.
The dollars flow to hundreds of industries, from specialized rail or bus construction
firms to maintenance and software suppliers. Every $1 billion invested in
public transit capital projects generates 30,000 jobs, and the same amount
invested in transit operations generates 60,000 jobs. The return on investment
could be as high as 9 to 1. (6)
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"Capital investment historically creates jobs in any industry,
but it's even more pronounced in public transportation because
of the vast number of businesses directly impacted. Movement of a company's
number one assets, its employees, is as critical of an investment as
dollars spent on marketing to your customers."
--Quentin D. Dastugue, CCIM, CEO - Property One, Inc. & Co-Chairman
of the Intermodal Transportation Council of the New Orleans Regional
Chamber of Commerce
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COALIITIION MEMBERS
Chicago Metropolis 2020
Chicagoland Chamber of Commerce
Denver Metro Chamber of Commerce
Downtown Tulsa Unlimited, Inc.
Greater Boston Chamber of Commerce
Greater Cleveland Growth Association
Greater Minneapolis Chamber of Commerce
Greater Pittsburgh Chamber of Commerce
Greater Washington Board of Trade
Lancaster (PA) Chamber of Commerce
Los Angeles Area Chamber of Commerce
Metropolitan Planning Council (Chicago)
Miami (FL) Chamber of Commerce
Minneapolis Downtown Council
New Orleans Regional Chamber of Commerce
Oakland (CA) Chamber of Commerce
San Diego Chamber of Commerce
San Francisco Chamber of Commerce
Silicon Valley Manufacturers Group
Contact Information:
Mr. Rob Nash
Government Relations Office
Chicagoland Chamber of Commerce
330 North Wabash, Suite 2800
Chicago, IL 60611
312-494-6787 -- phone
312-494-0196 -- fax
rnash@chicagolandchamber.org
Coalition Manager:
Mr. Steve Schlickman
Schlickman & Associates
203 North Wabash, Suite 1800
Chicago, IL 60601
312-920-0132 -- phone
312-641-5736 -- fax
steveschl@aol.com
1 Donald H. Camph, Aldaron, Inc., The Renaissance of
Public Transit in America, October 2002.
2 David B. Keever et al, Moving Ahead: The American Public
Speaks on Roadways and Transportation in Communities, February 2000.
3 CB Richard Ellis, United States Office Vacancy Index,
2nd Quarter Flash Report
4 Cambridge Systematics, Inc. and Economic Development
Research Group, A Quantitative Analysis of Public Transportation's Economic
Impact, October 1999.
5 Robert J. Shapiro et al, Conserving Energy and Preserving
the Environment: The Role of Public Transportation, July 2002.
6 Cambridge Systematics, Inc. and Economic Development
Research Group, A Quantitative Analysis of Public Transportation's Economic
Impact, October 1999.
© Chicagoland Chamber of Commerce 2003
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