FOR IMMEDIATE RELEASE
New York, New York
November 26, 2003

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Partnership Proposes Economic Impact Assessment for Big Ticket Transit Projects

Report Offers a Methodology for Determining Return on Investment for Both Economic and Transportation Benefits

A report released today by the Partnership for New York City proposes an economic impact assessment for major transportation projects in the city. The report, entitled Transportation Choices and the Future of the New York City Economy, introduces a new methodology to evaluate
transportation projects based on the their ramifications for the local economy, weighing both economic and transportation benefits.

The Partnership’s economic impact methodology is a sharp departure from the way decisions on transportation projects have been made in the past. The city’s transportation system is its economic lifeline to the regional labor pool and is a major factor in business location decisions.  However, despite this economic importance, major investment decisions on transportation projects are typically made without meaningful consultation with the business community or a careful
assessment of long-term contributions of projects to expansion of the city’s economy. 

“Future economic growth in the city requires substantial investment in mass transportation,” said Kathryn S. Wylde, president of the Partnership. “However, given current budget constraints, choices must be made. The aim of the Partnership’s study is to provide decision makers and the public with a framework to assess the relative economic development benefits of major transportation projects.” 

In addition to developing analytical tools, interviews were conducted with major employers and real estate experts.  The result of this six-month project is a new perspective on transportation planning – and more importantly, some significant findings about how future projects might be planned to maximize their benefits for the local economy.

Wylde also said that the study and its methodology should
be considered the opening round of a dialogue that leads to the development of a widely accepted model for assessing the transportation and the economic development benefits of transportation projects. 

Using the economic impact methodology developed in the study, the following seven transportation projects are examined:  the Lower Manhattan Hub, the extension of the No. 7 Subway line, the 2nd Avenue Subway, the Hudson River Tunnel, the relocation of Pennsylvania Station to the Farley Post Office, the extension of the PATH to Newark Airport, and the plan to extend the LIRR to Grand Central Terminal. 

Highlights of the study’s findings and recommendations include:

• The greatest return on public investment in transportation projects is achieved through the creation of hubs that are a magnet for commuters and travelers and drive business location decisions. Investment in the Lower Manhattan Hub is the single strongest transportation investment reviewed in the Partnership’s study;
• New York City’s transportation investment decisions deserve greater scrutiny from a wider audience of stakeholders, including the business community;
• Determine the economic benefits of a partial build-out of the proposed 2nd Avenue Subway to connect to the N/R Subway and relieve congestion on the Lexington Subway line;
• Identify and review the economic benefits of transportation projects necessary to accelerate economic development in emerging business districts beyond
  Manhattan not currently in the funding pipeline;
• Build the proposed extension of the No. 7 Subway line to stimulate redevelopment of the FarWest Side; and
• Organize a regional ferry system that would be managed by the Metropolitan Transportation Authority.

The Partnership’s study was prepared with the assistance of the Boston Consulting Group, the University Transportation Research Center (UTRC) at the City University of New York, and Rosemary Scanlon, a consultant in urban and regional economics. The study was partially underwritten by a grant from the Robert Sterling Clark Foundation.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.