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Transit Fosters Business Development in the Commonwealth
March 2001
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Public
transportation is good for business. In addition to transporting
customers and employees conveniently to community businesses, transit
also attracts businesses and industries seeking to locate in Virginia
because it provides access to a broader labor pool.
Job
Creation
KPMG Peat Marwick found that since Washington, DCs Metrorails
first station opened in 1977, it has generated 90,000 additional
jobs and $1.2 billion in additional Commonwealth tax revenues above
the state contributions to Metrorail. The American Economics Group
determined that the Greater Richmond Transit Company annually produces
about $43 million in direct and indirect economic activity and 700
jobs in the Richmond region.
Attracting
and Sustaining Business Growth
As businesses and residential areas continue to grow in Northern
Virginia, the Dulles Corridor has become a key area. The Corridor
stretches from Tysons Corner to Dulles Airport, through Fairfax
and Loudoun counties, but currently has no rail system. With a projected
56% increase in employment and 58% increase in population by 2020,
there is a dire need for an efficient rail system linking the corridor.
The high tech industries that are expanding along the corridor consider
public transit a must-have. The Dulles Corridor Rail Association
is working to extend Metrorail stops to the area by 2010 and establish
bus rapid transit by 2003. These transit services along the corridor
are essential to sustaining business and residential growth, attracting
new business, and preserving and improving the quality of life.
In
Hampton Roads, more than 75 percent of businesses considering relocation
to the area ask about the availability of public transportation.
A few years ago, the Gateway computer company chose Hampton Roads
as the location for their East Coast plant, with the condition that
Hampton Roads Transit would guarantee a bus route to the plant.
Five years later, Gateway is still growing in Hampton Roads, and
has requested that the route to the main plant be extended to serve
their new distribution warehouse in the area.
Linking
Rural and Urban Areas
In the rural areas surrounding Charlottesville, JAUNT and Charlottesville
Transit Service have collaborated with large and small businesses
to improve transportation for their employees. CTS serves Charlottesville
and portions of Albemarle County and provides free transfers from
JAUNT.
Wintergreen resort has contracted with JAUNT to establish a van
route for its employees. The resort pays for the operating costs
and the employees pay a minimal roundtrip fare. In this mountainous,
rural region, commuting costs are minimized when Wintergreen employees
without cars can get to work and those with cars can avoid the expensive
wear-and-tear on their vehicles.
Employee
Benefits
The Omni Hotel in the Charlottesville area attracts employees by
offering Commuter Choice as part of its employee benefits package.
Commuter Choice refers to federal tax incentives that permit employers
to offer employees a tax-free benefit to commute to work by ridesharing
or public transportation. JAUNT and Rideshare were instrumental
in presenting this program to the Omni for their use. The Omni plans
to take the program nationwide and emphasize this employee benefit
during its hiring process.
Commuter
Choice has also been instituted in the public sector. Governor Gilmore
has required state agencies in Northern Virginia to participate
in the program by paying up to $65 per month in transit commuting
costs to their 8,700 employees. This monthly incentive will increase
the use of public transportation in Northern Virginia, moving more
people through congested corridors at peak hours and decreasing
air pollution in the region.
Earning
a Living
In the Northern Virginia/Washington, D.C. area, Metrorail boasts
the second highest usage of public transit in the nation for getting
to and from work, exceeded only by the New York City area. Loudon
Transit and the Rappahannock-Rapidan Regional Commission are working
together to operate the Job Access Mobility Van (the JAM Van) to
get people to work on time in Culpeper and Fauquier Counties. The
vans run during the busiest commuting times in the morning and evening,
and seats are available by reservation. Culpeper has the newest
JAM route and already boasts 400 rides per month. Loudoun Transit
has also partnered with Loudoun United Way to extend bus service
to Sunday afternoons to more closely match the retail communities
hours of operation and thus increase job accessibility. For ten
years, the Greater Lynchburg Transit Company has worked closely
with Lynchburg Sheltered Industries, which employs disabled individuals.
When the company relocated away from an existing bus line, they
were able to contract with GLTC to provide extra bus runs to their
facility for over 100 employees. If these same disabled individuals
were unable to work and support themselves, it would cost Virginia
approximately $7,000 for each person in tax dollars to provide in-home
support services annually.
Transit is the "To" in Welfare To Work
In areas served by public transportation in Virginia, anywhere from
one-third to more than 90 percent of the areas welfare reform
recipients depend upon it. In the Roanoke Valley, transit systems
have teamed up to extend public transit into Roanoke County by connecting
with existing Valley Metro routes. This "feeder service"
is funded by the Job Access Reverse Commuter Program as part of
state and federal welfare-to-work initiatives. Ridership has skyrocketed
from 36 riders in July 2000, the first month of operation, to 600
riders in August 2000. In the rural and remote Eastern Shore, STAR
Transit is working with the local social services department to
move people from welfare to work. Five new bus routes have been
established to get employees to key industries on the peninsula,
such as Bay Shore Concrete, Perdue and Tyson poultry plants and
the KMC Plant.
Did You Know?
- Every
$1 million in transit operating investment provides more than
30 local jobs.
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The value per square foot of commercial space near Metrorail stations
in Northern Virginia has jumped more than 600 percent since the
first station opened in 1977.
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According to the American Public Transit Association, more than
50% of the trips on transit are for the purpose of "earning
a living."
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Virginia
Transit Association is the Voice of Public Transportation
VTA
is a coalition of professionals from public and private organizations
who know that public transportation is important to mobility,
a clean environment and livable communities. VTA is committed
to raising public awareness of the benefits of quality transit
through our bi-monthly installations of "Virginia Transit
Issues."

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