Vehicle electrification can stimulate the economy, create jobs and, by reducing carbon emissions and other pollution, address inequity, protect our environment and improve public health. Here, we examine current and future policy and funding mechanisms needed to advance this equitable, clean and economically advantageous form of transportation.

Where we are

As we write this blog, the federal government has yet to develop meaningful targeted policies, funding mechanisms or regulations to advance vehicle electrification. States and localities are pressing ahead, working independently of the federal government to develop innovative policies that will advance the transition.

Vehicle electrification is progressing. States like California and New York are taking aggressive approaches establishing initiatives with specific policies and targets tied to utility and transportation sustainability, and climate action goals. The California Air Resources Board is mandating that fleet vehicles across the state be electrified by 2040. Progress is not limited to the coasts. Some of the most aggressive policies are coming from the Midwest and Mountain states. In 2018, Colorado established a comprehensive plan to develop fast-charging corridors across the state. In Illinois, the governor has pledged that his state will be the best place in the United States to drive or manufacture an electric vehicle as part of his published plan, “Eight Principles for a Clean and Renewable Illinois Economy.” Together, those states have pledged to have 1.7 million EVs on state roads by 2030. Both are part of comprehensive approaches aimed at creating jobs, reducing pollution, tackling the climate crisis and ensuring that all communities benefit from the transition to a clean energy economy. They aren’t alone — more states and cities are expected to roll out their own policies once they determine which are successful for early adopters.

Utilities are studying policies to expand energy generation and grid capacity as they work to meet the expected new surge of energy demand resulting from vehicle electrification. Generation increases are expected to come from renewables such as solar, so utilities are opening studies to determine how to best optimize financial and performance success when connecting clean energy sources to battery storage. Careful planning is required to develop a grid that can move energy where and when its needed. As part of this effort, governments and utilities are undertaking studies and projections of when and how people will charge to determine grid impacts and costs.

Funding requires flexibility

Even as states work on policies to accelerate electrification, funding possibilities must be expanded to ensure accelerated goals are met. We work with utilities, regional planners and fleet operators across the country developing options to prioritize investments, tapping new financing strategies and targeting incentives to accelerate electric vehicle adoption, so that e-charging infrastructure is available and affordable.

From that work, we recognize that paying for needed upgrades and charging infrastructure for fleet, transit and personal vehicles can be a major consideration. While there are a few federal grant opportunities available, there are other varied arrays of funding opportunities that can help with the costs. These include traditional incentives from utilities, as well as local and state transportation grants. And, in some instances, states and localities are developing public-private partnerships as one more strategy to innovate on the delivery side of this new infrastructure.

Partnerships: A winning proposition

States, municipalities, regional and local agencies, and utilities have a mutual interest in advancing electrification and are developing partnerships to move the process along. Partnerships provide benefits for all concerned.

Utilities benefit from new customers, a key consideration for an industry where demand has been historically flat. Municipalities and states will see new revenue sources resulting from infrastructure investments, utility taxes and use-based franchise fees. Agencies can reduce systems costs as electrification enables transit networks to run more efficiently with less required maintenance. Importantly, communities will see improved environmental and health benefits through the reduction of greenhouse gas emissions and other air pollution tied to transportation.

So where do we go from here?

The transition to electrification would benefit from a national policy addressing climate change and clear policy targets requiring electrification, sending a strong signal to the markets to boost already significant and aggressive technology investment. Setting this aside, it falls to the state and municipal governments and utilities to prioritize carbon reduction and organize their policies and programs so that vulnerable communities are prioritized for the economic and public health benefits that transportation electrification can deliver.

Some states have established aggressive carbon targets and ask utilities to help meet these goals. This is often accomplished by incentivizing customer behaviors, providing rebates for actions such as installing energy-efficient light bulbs to conserve energy. Similar incentive programs are being rolled out for electric vehicles and charging infrastructure, and increasingly, these programs place equity at the center of program design and delivery.

From government actions to private investments and stronger partnerships, innovative solutions are being developed and tested across the country and the lessons we can learn from those innovations are clear. If we want to get the most from transportation electrification investments, our policies must encourage and require a clear connection between climate action, economic opportunity and equity. Even the most aggressive actions by state and local governments still need an active and supportive federal partner to engage the private sector if we want to ensure that we recover from our current public health and economic crisis and build a future that is healthy, sustainable and inclusive.

The post Energizing Our Future: Policy and Funding for Electric Vehicles appeared first on Blog.

While the transit industry continues to hope for clarity, there are avenues that agencies can pursue to help shore up transit’s future, many stemming from tools that can gather and deliver information. On the passenger side, tools such as rider information applications can help revive rider confidence. For agencies, forecasting and scenario planning can enable informed decisions concerning funding, budget allocations and resources. These efforts together will help keep transit rolling by supporting healthy cities and thriving state economies.

Here are three ways that these tools can help cities maintain the health of their transit networks.

Instilling rider confidence

The future of transit is intrinsically linked to its ridership — which has dropped dramatically as a result of the pandemic. COVID-19 has taken a toll on riders’ confidence in transit safety, with many believing there is a connection between transit use and contracting the virus, despite reports refuting these links. A recent report from the American Public Transportation Association indicated there is no direct correlation between the use of public transit and contracting the coronavirus. The New York Times supports this statement, specifically highlighting conditions in New York City, stating that New Yorkers tend to practice social distancing as they travel on subways and buses while also wearing masks and avoiding talking, eating or drinking.

Regaining rider confidence is essential to the health of our transit systems. Transit agencies can help riders feel more comfortable by prioritizing system cleaning and disinfecting. This, along with providing clear passenger information can enable riders to safely schedule their trips and address their concerns. ArchTam provided cleaning and disinfection protocol guidance to Southeastern Pennsylvania Transportation Authority (SEPTA) to help protect against COVID-19.

While emphasizing the importance of wearing masks and practicing social distancing, transit agencies are also implementing technologies like automated passenger counting, touchless fare payment systems and integrated intelligent solutions to safeguard riders and workers. For passengers, ArchTam’s Transportation Resilient Integrated Passenger Solution (TRIPS) provides an integrated approach to safety by enabling riders to plan their rides for when there are fewer people using the system.

Offering options and information

Tools such as scenario planning — looking at potential occurrences and delivering insight related to different mobility conditions and budget allocations — are increasingly important. Scenario planning and forecasting tools such as ArchTam’s Mobilitics^TM provides agency executives with varied alternatives and up-to-date information giving them if/then scenarios to plan for appropriate mid-, short- and long-term budgetary allocations that can help maintain transit health beyond the short term. Investment is important to the next wave of transit advances — including electrification. Scenario planning can highlight risks and tradeoffs and help to balance immediate concerns with long-term goals.

Options and information are especially important as we continue to manage transit systems in the age of COVID-19, which to date is impacting how many passengers use transit and how. New Jersey Transit is employing ArchTam’s Mobilitics^TM scenario planning tool as well as near real-time anonymized cell phone data to understand behavioral changes, shifts in travel patterns and technology advancements. Together with data analysis, this informs current and future service enabling adjustments around technology and pandemic-related factors and allows for informed budgetary decisions.

Managing resources

Effective transit management can be challenging in the best of times and is even more so during a global pandemic. Agency executive officers, currently focusing available resources on their short-term survival options, may be left with little in reserve for mid- and long-range recovery. It is vital that they move past this thinking as quickly as is feasible and aggressively pivot to comprehensive planning and development of mid- and long-term funding solutions, which I discussed in my previous blog, “Transit Funding in the Age of COVID-19: IT’s Time to Think Beyond the Stimulus.”

In the meantime, scenario planning can help transit agencies develop appropriate resource and budget allocations by providing them with information needed to make the decisions that will put their systems on firmer footing now and in the future. Even in a more typical, everyday scenario, funding and investing in transit electrification has great bearing in equity, climate change and resilience.

These efforts, which are now even more important to the future of transit, require that agencies pursue a paradigm shift toward innovation for new revenue streams including the advancement of vehicle electrification as an essential support. Agencies are investing in electric buses as a means of cutting greenhouse gas emissions as well as the development of new jobs for skilled workers who can advance the infrastructure needed to support this next wave. ArchTam has experts in place to help with the analysis by highlighting risks and tradeoffs to help balance immediate needs and long-term goals.

As the pandemic continues, ridership will continue to fluctuate, and transit agencies will be hard pressed to determine the appropriate short- and long-term investments and budget allocations for their respective systems. Transparency with riders, combined with adherence to disinfectant protocols and the use of scenario planning tools, can help ensure that they maintain the resources that support ridership in the present as well as in the years to come.

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One potential consideration is an increased focus on the transition to transit electrification. Advancing electrification can play a key role in developing new funding options while also improving transit system efficiency, bringing significant operational savings and environmental benefits to our communities.

Building the case for thriving transit systems

Healthy public transportation networks move people across urban areas and provide so much more than just transportation. Transit systems are intrinsically related to economic development, social equity and sustainability — all of which are vital to maintaining prosperous urban environments and communities. According to the American Public Transportation Association, there is a $4 return on investment for every $1 invested in transit, every $1 billion invested creates 50,000 jobs and a $10 million investment in public transit generates about $32 million in increased business sales and residential property values for homes located near public transit. According to a University of Massachusetts Amherst study, each $1 million invested in transit bus electrification will create 14 new jobs. In short, the hidden economic value of public transit could be up to $1.8 billion per city. Public transit, even in its traditional internal combustion form, produces less air pollution per passenger mile than a single driver car. Electrified vehicles can further reduce that rate.

Here are three ways to advance transit funding during the COVID-19 pandemic and why transit — particularly electrified transit — matters.

1. Build in equity, resiliency and sustainability
Incorporating elements that provide equity, sustainability and resiliency into your transit project can improve funding potential and broaden grant eligibility. These elements are key for new transit projects as their initial incorporation will eliminate retrofitting costs, reducing overall project expenditures. Developing projects with these elements also holds a financial incentive as they involve relatively new industries, such as grid adaptation, that will create jobs — a vital factor in this time of major city and state unemployment. Elements incorporating sustainability and resiliency can protect transit from the stresses of extreme weather and climate change while providing equity in the form of continued mobility access.

2. Play the long game, amp up electrification
Before the COVID-19 pandemic, many transit agencies across the U.S. had begun moving toward transit electrification, specifically by transitioning to electric buses. Despite the pandemic, these commitments remain unchanged. It’s estimated that by 2030 more than 25 percent of the United States’ bus fleets could be electric. Transit electrification may offer the potential for additional funding options while benefitting the communities that these systems serve. With day-to-day funding at issue, it may seem unrealistic to ask transit agencies to invest in electrification but investing in electrification creates jobs, advancing city and state economies and in the long term can generate significant savings for bus fueling and maintenance, helping with future transit financing. Electrification also helps with issues of social equity and sustainability by reducing greenhouse gas emissions related to climate change and public health, particularly in low-income neighborhoods where personal vehicles may be slower to convert but may house fleet routes or bus maintenance facilities. ArchTam’s expertise in cities, transportation, energy, sustainability and resiliency can increase the possibility of project funding and community improvement. We have worked with transportation agencies like the Fresno County Rural Transit Authority in California to model and forecast the future of electrification, identifying opportunities where policies that focus on bringing equitable change to underserved communities can be established.

3. Take a fresh look at legislation
With current means of funding transit proving unequal to the task, it’s time to change the measures that fund transit. Public-private partnerships are just one means of providing funding support. These kinds of partnerships could in the future enable technology and infrastructure companies to own and operate charging infrastructure for transit agencies, a model that has already been tested with charging infrastructure for private vehicles. These arrangements could also promote electrification by providing tax credits to the private sector whenever they make infrastructure investment improvements that advance electrification. ArchTam has the technical expertise to provide recommendation on policy, incentive and even utility tariff changes that can support and accelerate bus fleet electrification.

There are no easy solutions to the issues of transit funding in the age of COVID-19, but with historic, drastic issues cutting across capital and operations funding, doing nothing is not an option. Researching and making informed and well-thought-out decisions will protect transit and the communities that it serves while advancing city and state economies in a time of uncertainty and unemployment. Now is the time to act.

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A good example of this is the new Structures and Buildings Allowance (SBA), introduced this year. It is the first new relief under the UK’s capital allowances (CA) regime in more than 10 years. The SBA is designed to stimulate activity in the construction sector, mitigating taxable profits through expenditure incurred on non-residential buildings and structures at a rate of 2 percent per annum over 50 years. Although I won’t seek to assess the detail or operation of the SBA – plenty has been written (refer to our Technical Briefing) – but rather address the practical challenges to be considered and make the argument that this relief doesn’t go far enough as a genuine incentive.

Unlike the CA rules for plant and machinery fixtures, SBA offers only a timing relief for building owners rather than a real cash benefit. The adjustment of base costs upon disposal means that the benefit can be clawed back when you dispose of the asset. Occupiers will be the real beneficiaries as their expenditure will be fully relieved. Undoubtedly there will be a positive impact on working capital for companies that will free up cash for further investment. In practice, there is a requirement for owners to maintain and pass records to future owners for a 50-year period. This is likely to result in future stakeholders losing interest and information with the trail going cold, resulting in a loss of relief, especially where non-taxpayers and traders form part of the ownership cycle. Management of data will be critical to ensure that the benefit is identified, preserved and transferred.

The SBA rules generally exclude all forms of residential accommodation apart from care homes. Arguably, this is a missed opportunity to mitigate the deficit in UK residential development. The legislation could potentially be refined to differentiate between private domestic dwellings – and the private rented sector at the vanguard of speculative development to stimulate and support future supply.

There are examples of where the tax system actively supports construction on real estate. We would argue that Enhanced Capital Allowances (ECA), whilst imperfect and complex to administer, did a lot of good work raising the profile and use of energy and water-saving technologies in modern buildings. It was a regular point of discussion with clients and although it isn’t necessarily driving specific solutions, it did stimulate thinking within design teams. Following the withdrawal of ECA from April 2020, it will be interesting to see the detail around the replacement HM Revenue and Customs (HMRC) envisages in maintaining the sustainable agenda for our built environment.

Similarly, the tax credits for research and development capturing embedded innovation in the design process are generous, but still not broadly understood or utilized by designers for operational expenditure considered part of the “day job”.

The tax legislation around property has become increasingly complex as the sector adopts more sophisticated approaches to ownership, financing and technology. This has been an anti-avoidance response to perceived revenue leakages to HMRC. However, we are on the verge of a paradigm shift in the industry as new methods and materials impact on design and construction processes. If we are truly serious about incentivizing capital investment (especially in specific sectors), the tax system, including CA, will need to keep pace and play a significant part.

SBA may be an initial dip of the toe in the water of an admirably simplistic and broader-reaching relief, but, if adapted, it could form the basis of an effective incentive for future investment. It may even be a more interesting discussion than VAR. Here’s hoping!

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With massive infrastructure demands around the world, and against a reality of constrained public-sector budgets, bold leadership is required to prioritize assertive public policy, harness private capital, and bring innovation to infrastructure funding and project delivery. While many of the following observations and recommendations apply globally, much of the focus in this article pertains to the United States.

FOUR APPROACHES TO BRIDGE THE GAP

The need for substantial investment in infrastructure is well documented. Unfortunately, there are no silver bullet solutions and, given the stakes, inaction is not an option. What is required is a combination of approaches aligned behind a strong vision, transparency, innovation, and a conducive regulatory and permitting environment, as well as willing partners — across borders, governments and industries — that can rise above complicating factors, build trust and generate confidence to proceed forward.

In this spirit, we look at four approaches that, taken together, can help reduce the infrastructure financing and funding gap.

1/ PUBLIC-PRIVATE PARTNERSHIPS

Public-private partnerships (P3s) are an effective way of transferring life-cycle costs of infrastructure from public-sector budgets and creating investable assets for the private sector. We expect that the P3 market — which is quite evolved in the United Kingdom, Australia and Canada — will deepen in the United States as concession terms become standardized and as valuation transparency is enhanced from higher transaction volumes.

2/ A REGIONAL APPROACH TO INFRASTRUCTURE

The U.S. has numerous authorities that operate — and have been responsible for developing — significant portions of the nation’s infrastructure. Their advantages? These bodies take a long-term and expansive view of infrastructure needs.

Governments seeking to advance P3s in a programmatic manner might adopt the successful model of infrastructure offices — such as the U.K.’s Infrastructure and Projects Authority and Canada’s Infrastructure Ontario and Partnerships BC — at a regional level. The role of these centers is, among other things, to spur P3 activity through encouraging enabling legislation, prioritizing projects, and interfacing between procurement agencies and private capital sources.

3/ BETTER MODELS FOR FUNDING OF INFRASTRUCTURE

Whether financed by public or private capital, there is much that can be done to enhance funding models for infrastructure assets.

• GENERATE SUSTAINABLE REVENUES THROUGH FAIR-USAGE CHARGES: Many infrastructure assets, particularly in the transportation and water/waste sectors, are subsidized or free to users. This is not uniformly sustainable and so we recommend a reality where, in the words of the American Society of Civil Engineers (ASCE), users “pay … rates and fees that reflect the true cost of using, maintaining and improving … infrastructure.
• CREATIVELY UTILIZE VALUE-CAPTURE TECHNIQUES: Land and property values increase, sometimes dramatically, when they benefit from adjacent infrastructure. Value capture leverages the increase in real estate valuation to fund infrastructure development.
• ENSURE DEDICATED AND ROBUST STATE AND LOCAL SOURCES OF FUNDING: Stressed state and local budgets inevitably lead to maintenance backlogs. Thus, it is of prime importance that local sources of maintenance funding be developed from tax revenues and safeguarded, protecting them from being diverted to other budgetary needs.
• MODERNIZE THE GAS TAX:The U.S. Highway Trust Fund, which finances most federal government spending for highways and mass transit, is funded primarily from gasoline taxes. Because wear and tear on roads is correlated much more closely to mileage driven than to gasoline usage, the fund could be stabilized using a mileage-based revenue source that accounts for both gasoline-powered and electric vehicles.

4/ ENCOURAGING GREENFIELD DEVELOPMENT

Development of new infrastructure requires substantial capital and entails significant risks. We propose several approaches to address these challenges.

• GOVERNMENT-SUBSIDIZED CONSTRUCTION FINANCING: We believe budgets for U.S. governmental programs that subsidize financing for infrastructure development should be expanded. They are an effective way of providing leverage to federal funds, from private capital and state or local public capital, in the development and maintenance of infrastructure.
• ASSET RECYCLING: An effective way to leverage public capital in a resource-constrained environment is to fund new infrastructure via “asset recycling,” whereby proceeds from the lease of existing assets are redeployed in the development of new infrastructure.
• MITIGATE RISKS FOR PRIVATE INVESTORS: Private capital is generally unwilling to invest in greenfield development because of the difficulties in accurately budgeting development costs and timelines, and forecasting future revenues in the absence of operating history. These risks can be mitigated by inclusion of the right partner in the development and operating consortium.
• REFORMING REGULATORY AND PERMITTING PRACTICES: Predictable regulatory guidelines and efficient permitting processes can be helpful in driving private investment into infrastructure. Policies set by one administration or legislature can fall away with the next, creating uncertainty.

CONCLUSION

As we have argued, there are practical steps that can be taken right now by participants in the infrastructure market, as well as public policy initiatives that we actively support. In future articles, we expect to expand our scope beyond the United States.

For the full article and source material, visit: https://www.archtam.com/infrastructure-funding 

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Brilliant exudes character and confidence. Brilliant works across boundaries in support of a greater vision. Brilliant finds the common ground between private and public to close funding gaps. Brilliant performs technically while achieving broader social and economic benefits. Brilliant overcomes obstacles to get essential projects delivered.

Cities can explore eight steps to capitalize on their strengths, address their weaknesses, and achieve brilliance:

Start at the end

Secure a legacy with strategic planning

What will your city be like in 50 years? Understanding where your city is headed—and how you want to shape its future—should guide how projects and infrastructure are prioritized today. Smart long-term planning anticipates social, economic and environmental changes and builds the strategic direction to secure a positive legacy, for cities and leaders.

Draw a crowd

Energize the center through compact urban design

People come to cities to be near other people. Cities need places where people can come together, places that resonate, inspire and excite; a waterfront promenade or central park, a distinctive district or event center, a signature tower or downtown area. A well-planned project can turn the tide and change a city’s fortune. Cities that work to boost business and celebrate life are positioned to compete and succeed.

Renovations at LAX will help Angelinos and world travelers ‘get there together.’

Get there together

Upgrade transportation to move people and business faster

A city’s economy moves at the pace of its transportation network. Efficient transportation speeds the flow of people, ideas and commerce. Airports and seaports are global gateways. Roads and rail establish regional connections. Bike and walking routes make mobility healthy, inexpensive, and fun. In a great city, access is built into the fabric.

Change the flow

Get more from innovative energy and water infrastructure

We depend upon civil infrastructure to meet our daily needs, but the investments we make for these essential functions can yield wider value when we take new approaches. Stormwater managed naturally can improve the urban landscape, increase property values and protect our waterways. Recycled wastewater can green our parks and neighborhoods. Solid waste treated organically can reduce landfill and produce energy for homes.

The restoration of Echo Park Lake is helping LA ‘change the flow.’

Make green pay

Take environmental action that provides an economic boost Investments in the environment can yield financial and social dividends. As cities take measures to mitigate and adapt to climate change, remediate contamination, and protect and restore natural environments, they are finding a wealth of benefits, from energy savings and cleaner air to rising real estate values and healthier people. It creates a better climate for business and community.

Ignore borders

Collaborate across agencies and boundaries for bigger results

Challenges do not follow the boundaries of departments and municipalities. Neither should solutions. To compete at a global level, cities need to advance in step with their supporting regions. This means collaborating across disciplines and jurisdictions, and cooperating and planning at the regional level, to see the bigger picture, connect better ideas and find smarter solutions.

Act now

Identify and address physical and cyber vulnerability

Buildings and bridges are joining the internet of things. This increases the need for cyber security, along with security against physical attacks, violent weather, earthquakes, and decay over time. Proactive solutions begin with a comprehensive vulnerability assessment. Anticipating the most likely points of attack or failure lets a city know where to invest to prevent or mitigate disaster before it strikes.

A public-private partnership for the Gov. George Deukmejian Courthouse helped Long Beach ‘finish ahead.’

Finish ahead

Get projects funded, built and operating sooner

Public budgets are stretched. Roads, bridges, water systems, hospitals, schools and courthouses need maintenance or new structures, but there are new ways around old obstacles. Partnering the public and private sectors and linking the phases of a project’s life cycle can speed construction, reduce cost, increase performance and manage risk. It’s time to take advantage of the alternatives.

Stephen Engblom (Stephen.engblom@archtam.com) is an urban planner and designer, and global director of ArchTam Cities.

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The day the U.S.-Australian Exchange spent in Dallas kicked off with a presentation that covered the history of Dallas and its entrepreneurial spirit, which has been the cornerstone of the city’s development. As a planning professional who has worked in the Dallas community for more than 20 years, I have seen how business and civic leaders collaborate with local government to facilitate change. For example, the great flood of 1908 spawned the development of the Trinity Floodway System that exists today. Through the business community purchasing and developing the newly protected land, one of the most productive and influential industrial and market areas in the United States was created — with redevelopment along the Trinity River continuing to this day.

The exchange offered me a unique opportunity to not only showcase the work ArchTam has completed within the Dallas/Fort Worth (DFW) metropolitan area, but how that work, subsequent development, and the Dallas philanthropic community continue to elevate the quality of life for all residents.

Dallas is the largest urban center of the DFW metropolitan area. The city’s economy, which has diversified over the last thirty years, significantly drives the region’s productivity. DFW is the sixth largest metropolitan economy in the United States, and Dallas is home to the third-largest concentration of Fortune 500 companies, the recently constructed world-class arts district, and the largest light rail system in the country.

Dallas’ multifaceted environment made the city a fitting location for discussions about the exchange’s focus on multi-party partnerships and how philanthropic contributions and cultural precincts can help stimulate, renew and revitalize a city.

The first stop on the tour took us to the offices of Dallas Area Rapid Transit (DART). DART operates more than 90 miles of light rail across the region. Additionally, they provide bus, streetcar, commuter rail and paratransit services. DART is known for its innovative approach to leveraging local dollars to maximize federal funding for its capital expansion projects. DART’s conservative, long-term approach constantly balances its operating costs and liabilities with growth plans, which has resulted in DART being recognized as a successful, fiscally sound model transit agency. ArchTam has played an integral role in the development and optimization of DART’s system for more than 20 years.

In 1996, DART opened Mockingbird Station, a world-renowned, urban transit-oriented development that provides a unique concentration of retail, residential and commercial development. Developers and transit professionals from around the world continue to visit Dallas to learn from the success of DART and potentially implement similar projects within their home communities.

Our tour also included a visit to the City of Plano, a suburb of Dallas, to highlight successful redevelopment efforts directly tied to existing light rail service. Through city-based incentives and innovative development strategies, the Downtown Plano Station serves as the foundation on which city planners, investors and developers have built to create livable communities. These types of efforts have resulted in the City of Plano importing more jobs than it exports.

Our final destination highlighted the Dallas Arts District, a multi-venue center for music, opera, theater and dance. ArchTam served as the engineer-of-record on the award winning project and collaborated with four Pritzker architects to create the AT&T Performing Arts Center. The Center serves as the heart of the district and was conceived, designed and constructed through the efforts of philanthropic leaders. More than 40 families gave gifts of at least US$1 million to the project.

Klyde Warren Park, a five-acre deck park over a depressed highway, connects the revitalized uptown area to downtown. The green space, which serves as a gateway to the Dallas Arts District, also was conceived and designed by the business community. Funding for this project included philanthropic donations, the City of Dallas, the Texas Department of Transportation and federal stimulus funding. These recent and significant investments in the City’s cultural assets have induced development and created a highly desired location to live, work and play.

The Australian contingent was impressed with the amount of influence the business and civic community have on growth and development, and the speed at which change can occur. They recognize that public-private partnerships in infrastructure investment can significantly impact all aspects of the community from transportation to arts and culture. Dallas was the third leg of their four-city tour, and it is clear that their enthusiasm will affect positive change in their communities.

Jerry Smiley (jerry.smiley@archtam.com) is transit and environmental services business unit leader – Dallas/Fort Worth in ArchTam’s Dallas office.

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The City of Chicago is a good representation of what the Future Cities Collaborative calls an “outstanding example of a sustainability and livability transformation.” Being a native of Chicago, I was particularly excited to help provide the exchange participants with a local perspective on contextual knowledge needed for a successful exploration of the Windy City.

Prior to my 10 years at ArchTam, I served the City of Chicago in several capacities, starting as a project manager in the Department of Transportation. After several infrastructure projects, I was tapped to be First Deputy at the Department of Buildings. My last position with the city was commissioner of planning and development under the Daley administration, where I dealt directly with special services areas (SSA), tax increment financing (TIF) and other entitlement programs.

Today, Chicago is recognized as a leading global city by the Globalization and World Cities Research Network and the Global Cities Index. Chicago is an international hub for finance, commerce and industry, and is a world leader in innovation and technology. While our city’s preeminent position today is anchored by critical transportation infrastructure assets, we cannot forget that our city’s current modern capacity is entirely linked to a number of major infrastructure decisions over the past 120 years.

The exchange in Chicago started off with team introductions on Daley Plaza, followed quickly by our first interview at City Hall. Over the next four hours, our conversations with city staff examined city-led redevelopments and the financing and funding approaches used, including TIF and SSA. The discussion explored how the city funded maintenance and beautification work, auto and bike transit projects and economic developments through local tax initiatives, supported in part by enabling legislation.

ArchTam then led the group on a tour from City Hall through downtown Chicago, walking through numerous infill projects such as Block 37 and Millennium Park — an award-winning sustainable park that offers free cultural programs to those in the Chicago area.  Millennium Park is an example of how joint partnerships, additional commercial development and a new tax base can be leveraged to finance infrastructure. On the tour we held important discussions around tangible examples to aid the knowledge transfer to the Australian context.

We ended the day with two presentations, one on innovation and smart cities initiatives from the City of Chicago’s Department of Innovation and Technology (DoIT), and the other from David Stone, who works in the ArchTam Chicago office and serves on the board of the Old Town SSA on the north side of Chicago.

The DoIT presentation summarized analytics tools used to evaluate an ever-growing amount of data the City of Chicago collects on a day-to-day basis. The presentation reinforced the many ways in which the city is using analytics to enhance service delivery and reduce costs. The SSA presentation focused on the framing and day-to-day realities of how an SSA functions by discussing issues such as the role of contracted services, governance and budgeting.

David’s presentation also placed the Wells Street SSA in context, framing the nature of commercial activity along with what is a vibrant commercial corridor today. The presentation focused on the importance of enabling legislation and creating programs that can allow for the creation of special benefit districts, such as SSA.

Denise Casalino (Denise.Casalino@archtam.com) is senior vice president, Chicago Metro area manager, in ArchTam’s Chicago office.

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I was happy to be part of the team that welcomed the U.S.-Australian City Exchange participants on their first stop in Los Angeles. As a transportation and land use planner in the Los Angeles office with an academic background in international development, it was fascinating to hear the infrastructure and development financing challenges faced by local government officials in Australia. Many of the issues faced in Australia around financing redevelopment and revitalization are similar to those in Los Angeles. It was great to share how tools that I have worked on, such as community facilities financing districts and state and local grant programs, could apply to help local communities around the world.

Los Angeles was chosen as the first stop because it is a leading global city, with strengths in business, international trade, entertainment, culture, media, fashion, science, sports, technology, education, medicine and research; and it was particularly interesting to the delegates as an example of a leading global city due to LA’s status of being ranked sixth in the Global Cities Index and 13th in the Global Power City Index.

Our focus in Los Angeles was transit-oriented development and the use of rail connectivity to add value to the surrounding areas. Participants took part in presentations and site visits to see how federal funding for transit and housing has been combined with private investment and local funding sources to enable catalytic projects that have transformed neighborhoods.

On Sunday, Edward Blakely, chair, Future Cities Collaborative, and honorary professor in Urban Planning, United States Studies Centre, hosted a walk-and-talk for the Australian city leaders that toured the Santa Monica Pier and 3rd St Promenade. He used these sites as examples of municipal financing and strategic urban design in redevelopment.

On Monday, our opening workshop discussed the governance and project delivery process, as well as the mature development around Hollywood/Vine and how local transit station redevelopments, transit infrastructure and the accompanying developments were funded. (Above, City Exchange participants view new transit-oriented development at the heart of Hollywood at the Hollywood/Vine light rail station. The project combines an upscale hotel with retail and residential uses.)

Another workshop focused on One Santa Fe, a new downtown apartment and retail development financed from public-private partnerships. One Santa Fe is expected to contribute to the ongoing invigoration of downtown LA and lead to additional investment in the Arts District. One of the newest and largest developments in the Arts District, One Santa Fe is significant in its iconic architecture, provision of affordable housing units, and public-private partnership delivery mechanism. The project was developed by a private partner, with an 80-year land lease from the public sector on a former parking and maintenance site.

We also visited Pasadena, where we examined mixed-density and mixed-use developments, including retail and entertainment along Colorado Boulevard. One of the highlights was learning about the Business Improvement District (BID) model and downtown revitalization, including the innovative methods the city has used to leverage value from their parking structures to finance redevelopment. A formerly blighted area, Old Town Pasadena was transformed by the BID to provide safety, public information and marketing, branding, and cleaning to the District. The BID is largely funded by an assessment fee that property owners have voted to charge themselves, as well as revenue from parking meters and structures throughout the district.

The case studies viewed in Los Angeles had significant parallels to the issues faced by Australian mayors, such as transforming aging and underutilized industrial areas, providing mobility and access via transit, and leveraging adjacent natural resources such as open space and riverfronts. By seeing how government has incentivized and partnered with the private sector, as well as how local private entities have organized themselves to revitalize neighborhoods and realize catalytic new projects, the delegates will return to their home cities at the end of this week with an expanded infrastructure financing tool-box — inclusive of some of the significant lessons learned from LA — to tackle their most pressing issues.

Veronica Siranosian (veronica.siranosian@archtam.com) is transportation & land use planning manager in ArchTam’s Los Angeles office.

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This return trip, however, is really special. As ArchTam’s lead for the 2015 US-Australia City Exchange on Local Finance Mechanisms, I’m accompanying 20 city leaders from New South Wales, Australia, to examine innovative funding and financing mechanisms used by city counterparts in Los Angeles, Phoenix, Dallas, Chicago and New York.

The 10-day peer-to-peer exchange is presented by the Future Cities Collaborative, an initiative of the United States Studies Centre at the University of Sydney, Australia, with the support of NSW Trade and Investment and ArchTam.

Having kicked off in Los Angeles, California, yesterday, my US counterparts and I are looking forward to hosting exchange delegates (including mayors, councillors and business leaders) in each city and providing introductions to local civic leaders and case study projects that demonstrate “best practice” funding and financing methods for infrastructure and urban renewal projects.

As a firm advocate for government reform and innovation in procurement practices for critically needed infrastructure, I’m really excited at the potential for knowledge sharing during the exchange, and for positive action in and around our cities after it.

When I introduced this year’s exchange delegates to US funding and financing mechanisms in April and May during the Mayors’ Forum – a central component of the Future Cities Program held during the lead up to the exchange – I could sense a real enthusiasm among Australian government leaders to be bold in meeting the country’s infrastructure backlog. We all recognise the need to leave a legacy, not a liability, for the future. Well planned and appropriately funded infrastructure will be an important part of that legacy.

The cornerstone of the Future Cities Collaborative – the Future Cities Program – is to support both regional and metropolitan city leaders from New South Wales and provide them with the knowledge, skills, and resources to build sustainable and liveable communities.

With what we’ve got planned over the coming 10 days or so, I think we’re in great shape and, following the City Exchange’s conclusion on 3 July in New York City, we look forward to the release of a 2015 City Exchange report featuring case studies and “lessons learned” to share with NSW state and local government partners, US host city sponsors, and other supporters.

Follow our journey as we make our way across the US. Daily posts and images will be uploaded to the Future Cities blog, while ArchTam’s respective city leads will be sharing their own thoughts throughout the week, right here on Connected Cities.

Joe Langley is a technical director, Infrastructure Advisory, for ArchTam, based in Sydney. His Value Capture Roadmap is being released by Consult Australia in July.

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