Mixed Use Development Vs. Wal-Marts and Malls

Image via Wikipedia

Many times I have mentioned how it has been shown that smaller businesses actually will produce more sales tax revenue per square foot than a big box store such as Wal-Mart.

Here is a posting from Citiwire.net comparing property tax revenue between a major mall and downtown mixed use development.

Mixed-Use Downtown Development Puts Standard Malls’ Tax Yield to Shame

Also you must remember that stores like Wal-Marts also are well known for fighting to get their property tax bills cut down to almost nothing. So not only does the sales tax revenue not cover their infrastructure and other associated costs, but they also don't generate enough property tax revenue to justify the tax incentives and other subsidies they receive.

Alternative Transit

Image by Metro Library and Archive via Flickr

Back in January Yonah Freemark in his Transport Politic blog talked about a program in Baltimore which is starting local circulator routes separate from the main MTA bus service. The city is financing the routes through a additional fee on parking.

Cities Develop Alternative Bus Networks to Combat Perceived Disadvantages of Mainline Routes

If you look at the Los Angeles area, many cities sponsor their own transit service over and beyond the main bus routes operated by MTA and select other operators. These services are funded by a sales tax initiative that provided construction funds for rail transit and a city option fund.

The city of Pasadena for example started with a shuttle down their main shopping districts streets of Colorado and lake and have expanded the service to cover most of their city plus replace some low ridership MTA routes in which that agency could no longer afford to operate.

Here is a map of the Pasadena network:

Pasadena ARTS

In the past we have heard calls for UTA it reduce bus fares in the city of Salt Lake. While the cost per passenger is less in the city than in the rest of the county because of its higher density, it is fair to charge people different rates just because they are boarding in a certain area? Some would say yes some would argue the opposite. If UTA was to reduce bus fares just in the city of Salt Lake then the city of Salt Lake should fund that reduction through their general fund.

Instead of creating a nightmare for UTA drivers with fares, the city of Salt Lake could look at creating its own network of circulators in the city. The city could take over Route 500 from UTA plus provide service to the new Harmons, the library, Trolley Square and senior citizen housing in the area. In other words improve the transportation options for the many new residents moving into the downtown area and vicinity.

The service could be contracted out to a company such as Le Bus or Lewis Brothers Stages to provide the drivers and the maintenance of the vehicles.

To fund the system the city could look at property taxes which are never popular, or through parking fees like the city of Baltimore is doing. This will avoid the volatility of the sales tax which is hampering current UTA services.

One of the things I have repeatability pointed out is that the current system of funding transit systems in the US is very volatile and we have seen that during this extended period of economic downturn. In good times sales tax goes up and in bad times often when it is needed the most by the transit system sales tax receipts go down.

The city could also look at taking over UTA routes that operate all within their borders. If Salt Lake where to do that they would need to insure ease of transferability between their system and the UTA if fares are to be charged. The last thing you want to do is create two separate systems that don't cooperate with each other like in some other cities like the Los Angeles region.

What this alternative transit should not be used for is a way to stick it to the UTA. The primary purpose in establishing an alternative transit line would be to improve the transit options for the residents, visitors and workers in the area. If the primary purpose of the system becomes a way to stick it to the UTA, it is doomed to failure.

Article Roundup

Image via WikipediaUtahns walk less, weigh more

Well this is unexpected, NOT. Of course I am not one to talk since I need to loose some weight but it is slowly going down. Just today I walked from work to home even though there was some white stuff falling from the sky.

Of course part of the problem is there is too many pedestrian unfriendly neighborhoods. Take a walk in my neighborhood and by the time you get back you are checking how good your life insurance policy is.

UTA TRAX Operator Told To Stop Singing On The Train

On the one hand its nice to see a TRAX operator with personality. On the other hand when I am on TRAX I am usually either working on a project or thinking about it so I can see how many would consider it distracting. Just goes to show you can satisfy some of the people some of the time but...

Bus routes at risk as revenues slip

Once again, when your revenue base is dependent on something so cyclical as the sales tax, you have to deal with downturns in revenue usually when it is need the most.

Tolls and Taxes

Image via WikipediaOnce again we have the west side cities trying to stop an attempt to toll the Mountain View Corridor.

West-side cities re-emphasizing opposition to toll for new road

However, the question needs to be asked, if the road is not tolled, how will the state pay for it? This brings up another problem that will start facing highway funding and that is decreases in gas tax revenue. However, if people switch to more economical cars and start taking transit more, then gas tax revenues will go down further straining the revenue.

Since the gas tax is assessed by the gallon and not by a percentage of sale like a regular sales tax, revenue goes down if drivers don't drive as much or get more efficient vehicles.

In fact highways actually face the same problem as transit. In Utah much like the rest of the country, transit systems are dependent on sales tax revenue which of course goes down during back economic times. Like the gas tax, it is an unstable form of taxation because you cannot depend on the revenues remaining constant.

Of course tolling is not a 100% solution to the gas tax since it is also dependent on people driving but if someone buys a more efficient vehicle, but drives the same amount on the toll road you do not loose that revenue.

In the long run a more stable form of taxation is going to be needed. Plus, new developments are going to have to a bigger portion of their true cost.

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