Radical Investment

Aug. 15, 2016
To become the infrastructure capital of the world, LA is looking to revolutionize funding.

In 2008 Los Angeles County went to ballot for Measure R and it passed and went into effect July 2009. Requiring a 2/3 majority to pass, that half-cent sales tax was designed as “Phase 1” for funding transportation projects in the region. There were partially funded projects in the plan and it was assumed the county or Los Angeles County Metropolitan Transportation Authority (Metro) would go back to the voters to finish up those projects. Metro went back in 2012 and it failed to meet the 2/3 majority requirement. It's four years later and they’re going back to the ballot in November.

Metro CEO Phil Washington said, “If and when our ballot measure passes, you’re talking about 18 megaprojects in the first 15 years. You’re talking 40 megaprojects in 40 years. You’re talking, in the first 50 years, injecting about $120 billion into the local economy.

“You’re also talking about a $2 billion NFL stadium about to be built and you’re talking about the possibility of the Olympics coming to Los Angeles.” He added, “With all of that comes infrastructure building so yes, we’re about to become the infrastructure capital of the world.”

The very first project on the list after the ballot measure passes is to connect to the airport. He said, “To be L.A. without a rail connection is ridiculous. It’s absolutely ridiculous.”

And right after that, he said, are projects that they’re doing right now, including the Crenshaw/LAX Line, which is 50 percent complete and the Purple Line, which will eventually go out to the UCLA campus and would provide transportation to many of the sports venues if LA does host the Olympics.

According to the TomTom Traffic Index 2016, Los Angeles ranked No. 1 for having the worst gridlock. 

Pauletta Tonilas, chief communications officer, said after a series of focus groups, Metro has a lot of information from people stating they care about Metro doing something real about traffic problems. “Many of them are willing to invest more if they know that we have a plan and the money is going to be spent the way intended.”

She said what they’re hearing loud and clear is, people want something to be done. “They want options and they want projects done sooner rather than later.”

Real Funding

Revolutionary for a ballot measure, the proposed referendum has no end date.

Washington said, “I wish I could say you could build infrastructure — whether it’s a rail line or a highway — I wish you could say we could build that and never have to repair it but we see what’s going on in Washington, D.C., we see what’s happening in New York City, we see in San Francisco it’s in such a bad state of good repair that they are going to the ballot this year for maintenance alone and no capital.”

“I think that we are doing the responsible thing … to maintain the transportation infrastructure in this county,” he said.

As of press time, there was a 72 percent approval rate of the ballot measure. As Washington reiterated, 72 percent of the public understands they’re going to have to do this in perpetuity for the state of good repair. “They get that.”

With a first-of-its kind tax proposal, special considerations need to be in place. The current sales tax, Measure R, has three judges. For the upcoming measure they’re proposing seven people. They’re also proposing more frequent meetings of that oversight body and a comprehensive program assessment every 10 years.

“I think the oversight is there, the 10-year comprehensives are there, the increased number of oversight panel members with specific subject matter disciplines are being proposed as well,” explained Washington. “There will be quite a bit of oversight over this and there should be.”

Los Angeles County Traffic Improvement Plan

  • ½-cent sales tax would go into effect in 2017
  • Requires 2/3 approval of voters
  • Would continue until voters decide to end it

A Funding Crisis

With passage of the FAST Act, though people speak of it as a long-term federal funding bill, Washington said it’s a shame we have to settle for calling that "long-term."

"It’s not long term. It’s 5 years. It’s going to be over before we know it.

“Unfortunately there is no real, long-term commitment to transportation infrastructure in this country.”

Washington said he feels they are being very responsible, as this is something that is always needed. “You’re always going to need transportation infrastructure unless you’re going to stop moving.

He continued, “If we put out a proposal here at Metro just to build capital programs with no state of good repair slice, then we would be irresponsible and that is what most transportation agencies are doing.” He added, “Putting out something just for capital programs is terrible.”

In the next 20 to 30 years, the L.A. region is expecting about 2.3 more million people. With congestion where it’s already at, accommodating that kind of an influx will be a challenge. When they speak of the perpetual tax, Washington said they are responding to what they have heard from the public.

Another benefit is debt capacity and that this lowers their debt risk. At the end of the day, he said, it makes it less expensive in the long run.

Holistic Planning

Transit agencies should and must be concerned about displacement and gentrification of communities around transportation assets, Washington contends. “I understand what the core business is; the core business is mobility. For us, it’s moving people, I get that.”

Washington explained, when they go out to start the environmental process, sometimes 5 to 8 years before they break ground on a project, when they talk to those communities that surround the proposed project, the community has often changed by the time they break ground. Often it’s communities of color in the urban areas and as development comes in, it runs those communities out of there.

He said, “The community we talk to in the environmental process is now gone and it’s another community.”

The reason it’s so important, is that a great majority of those communities that live around the transportation assets, use the system.

“If we push them out they are displaced further and further out of the urban core, then we need to put transportation out to where they are,” explained Washington. “So it does impact my bottom line.” He stressed, “Displacement, gentrification, it does impact my bottom line because when those disadvantaged communities move out to where the housing is more affordable, I’ve got to put a bus out there.”

The transit-oriented community approach is a non-traditional approach that they have. Washington said they made it a priority in Denver and they’re doing the same thing in Los Angeles County. The idea is to work with the communities within a mile and a half radius of transportation assets and work with them to determine how to develop the community around that asset. They are looking to develop the property and the land in conjunction with or coincide with the development of the community.

If there is adjacent property they own around an asset, the board has said if there is residential there, it must be 35 percent affordable housing. If there is adjacent property owned by other government entities, Metro will work with them to help develop that particular area.

This takes time and there are challenges. Sometimes, Washington said because the more development that goes up in various cities, especially if there’s a tax increment financing district, than that development and the money that comes from it goes right to the city coffers. “Sometimes you’re working against the cities and in some cases by saying that you want to not displace communities … in some areas around the country, it actually stifles big development that would pay some type of property tax to the city — higher property tax rates to the city.”

Metro Deputy Executive Officer Jenna Hornstock talked about TOC and the need to think about the impact beyond the station. You need to support ridership and need to offer a lifestyle supportive of taking transit.

Metro is in the process of taking a look at its development program, updating the policies, looking at affordable housing policies and how it engages with communities. The demonstration program has been launched with seven project sites and Hornstock said, “We’re taking this to heart and putting it in place.”

Hornstock explained, “Our very clear commitment to affordable housing to ensure lower income households in the area, a majority of which are transit riders.” She added, “If we lose ridership, we have to provide more service further out.”

"We understand the value of mobility. And I say we because I’m one of those poor folks," Washington explained. "Because I grew up that way.

The tremendous value of mobility can not be understated. If you are a disadvantaged person or a low-income person, this opens up a whole new world for you ... Poor folks, low income people — more so than others — understand the value of mobility. They can’t take it for granted."


[[[The Metro Crenshaw/LAX Line

This line will extend from the existing Metro Exposition Line at Crenshaw and Exposition Boulevards, traveling 8.5 miles to the Metro Green Line, serving Los Angeles, Inglewood, El Segundo and portions of unincorporated Los Angeles County. It will provide access to schools and jobs in a community that has some of the highest ridership on transit.

8.5 mile extension

8 new stations

3 new park-and-ride lots

A new maintenance facility

Construction to be completed in 2019]]]

The Purple Line Extension Project

One of the most important transportation projects being built in Los Angeles County. Wilshire Boulevard is very congested and this will allow people to travel between Westwood and downtown LA in 25 minutes. It will connect two of the biggest employment areas of Los Angeles County.

9 mile project to be designed and constructed in three sections

More information at MassTransitmag.com/12239960