The Overheated MVET Debate

If reduced MVET revenues impact project delivery, suburban parking projects are first in line to be delayed

Last night, the Washington House of Representatives approved HB 2201. The bill effectively resets the valuation schedule for the 0.8% ST3 portion of the MVET to the lower of the 1999 and 2006 schedules. The outcome is lower taxes for owners of cars less than 10 years old, and a refund for those who have already paid their 2017 car tabs.

Reversing voter-approved taxes, barely five months after the ballot, isn’t a great look. But it is within the Legislature’s authority (second-guessing of initiatives is not new). Democrats have responded to sincere voter anger. The MVET increase was greater than many expected even if voters who carefully read the ballot ought to have understood. Owners of newer cars are taxed against a scheduled valuation higher than their vehicle resale values. Even though Sound Transit has used the same schedule for twenty years, and never presented it otherwise, it just seems unfair.

If HB 2201 becomes law, Democrats expect it to correct the anomalous MVET valuations while delivering ST3 projects on schedule.

The bill creates a credit for taxpayers offsetting the difference in valuation schedules. Crafted this way, HB 2201 doesn’t interfere with Sound Transit’s bond program and doesn’t require defeasement of Sound Move bonds. It means the 0.3% Sound Move MVET, pledged against bond repayments on the now obsolete 1999 schedule, is not prematurely repealed and can remain in place until the bonds are paid off in 2028. Unlike some Republican proposals to simply switch schedules across the board, HB 2201’s credit does not increase taxes for owners of older cars.

The vote was 64-33, with all Democrats in favor. Republican reaction was mixed. Some are willing to accept any tax reduction; others decried that the bill didn’t meet their more ambitious goals. The bill moves to the Senate today where Republicans may make a play for larger tax cuts.

The revenue impact is modest. $780 million in revenues is 1.4% of the $54 billion program over 25 years, albeit front-loaded so the real impact is higher than the year-of-expenditure (YOE) calculation. The credits only run through 2028, after which the Sound Move 0.3% MVET expires and the ST3 MVET switches to the ‘lower’ valuation schedule.

Continue reading “The Overheated MVET Debate”

Who should use the park & ride?

Riders walk to a shuttle bus near Eastgate P&R

Every morning, dozens of riders board shuttle buses one block from Eastgate Park-and-Ride. All but a handful are coming from the parking garage, after storing their cars there for the day. This particular shuttle bus travels to Amazon’s Brazil building in South Lake Union. Other companies appear also to use suburban transit parking as pickup points. Unmarked white buses are frequently seen adjacent to other Eastside P&Rs.

A few riders arrive by bus. Absent direct shuttle service, many might take transit to work. So one may ask whether we should be concerned that publicly funded transit parking is being used by private transit services.

Maybe it depends on what we think these shuttle riders would do in the absence of shuttle buses. Would they use public transit, or drive to South Lake Union? Shuttle buses to South Lake Union are filling a gap in the transit market, albeit one Metro is endeavoring to serve.

At the same time, transit parking is expensive to build. At many locations, it is insufficient for demand. Utilization at Eastgate hovers near 100%, so shuttle riders may be displacing other transit users.

The wholesale parking market is increasingly competitive. Churches and other parking lot owners who have surplus parking on weekdays find it easy to lease space to nearby offices. Many office employers, squeezing more people into smaller spaces, use offsite parking and shuttles for employees. When Sound Transit went looking for parking in Bellevue to replace lost capacity at South Bellevue P&R, there were no nearby alternatives. Every lot in the area was already fully used. Residential neighborhoods near popular transit routes find an increasing number of ‘park-and-hide’ users.

Generally, we should welcome this. It means parking, on- and off-street, is being used more efficiently. The first step to moving beyond ubiquitous driving in the suburbs is to use existing parking more intensely.

But parking scarcity creates a search for less regulated parking. Where can I park for free without getting a ticket? Transit lots are lightly monitored and maybe more readily abused.

2016: Did growth outpace our willingness to build homes?

Growth accelerated in 2016, with more suburban markets leading the way

Census data released last week showed yet another acceleration of regional population growth. King County maintained a high growth rate, added another 35,700 residents in the year ended July 1, 2016. But neighboring counties saw higher growth rates.

Pierce added 18,600 residents, more than twice the average of the preceding five years. Snohomish added 17,500 residents, vs an average 10,900 per year between 2010 and 2015. Constraints on development in King County may be diverting new residential growth into the suburban cities of Snohomish, Pierce, and beyond.

Outlying counties also grew. Thurston County added 6,000 residents and Kitsap 4,300. Both were significantly higher than most recent years.

Measured as growth rates, King County grew 1.7% in 2016 (same as 2015); Snohomish grew 2.3% (vs. 1.6%); Pierce 2.2% (vs. 1.5%); Thurston 2.2% (vs. 1.3%.) Kitsap expanded 1.6%, well above recent norms though lower than a spike in growth in 2015.

Where did the growth come from? The Census breaks down the sources of population change. Natural increase (births – deaths) is predictably stable and contributed 28% of last years growth. Net international migration declined slightly and accounts for 25% of growth in 2016.

Domestic migration rates shifted dramatically toward suburban counties in 2016

47% of growth is domestic migration which grew spectacularly in 2016, everywhere except King County. The Census defines domestic migration as moves between US counties, and has not reported whether the increases in Snohomish and Pierce represent moves from King County or from elsewhere. Even if from elsewhere, many of these new residents may have preferred to live in King County. Both Snohomish and Pierce added more residents via domestic migration than King in 2016, and both more than doubled the pace of domestic net migration over the previous year. Thurston almost tripled.

There’s a clue in driver license data. New driver licenses issued to out-of-state drivers are a measure of gross migration from other states, whereas the Census measures net flows from other counties. The driver license data indicates a continued increase in gross migration to King from other states, but stable migrations from other states to neighboring counties. Follow the math, and it suggests migration from King to adjoining suburban counties. The shift toward suburban growth is local displacement of former King County residents.

It’s hazardous to read too much into one year of data. We also lack the city-level data for a finer analysis at this time. We’ll report on that next month. But the trend of the last few years – that King County would grow at a faster pace than its neighbors – decisively reversed in 2016.

We’ve reported before about the centralization of growth around Seattle and some of the central Eastside cities. High home prices and rents suggest no slowing in demand for housing in close-in communities. But the numbers hint demand for housing in King County has run up against outdated growth targets and other barriers to accelerating construction of more homes. Housing prices and rents are increasing regionwide, with large increases reported in once-peripheral markets like Issaquah and Marysville.

Growth has not slowed in King County. Central cities like Seattle and Bellevue have been rocketing through outdated growth targets for several years. But cities face no penalty for not increasing capacity as long as they are “meeting GMA requirements”, i.e. planning for a growth forecast that predated the boom. Zoned supports as many housing units as the GMA requires, but fewer than the market needs to supply. Easing barriers to market rate housing is politically fraught. The process of adjusting growth targets upwards is likely to work slowly through another comprehensive planning cycle.

Even though the region’s worst traffic is on long commutes from the far north and south, concerns about local traffic congestion can defeat efforts to create more housing in centrally located suburban inner suburbs. Will we look back at 2016 as the year exurban sprawl returned?

Several more charts after the jump: Continue reading “2016: Did growth outpace our willingness to build homes?”

Link Connections on SR-520: take the survey

ST 545 is among the routes that may be rerouted to UW station in Fall 2018 (Image: Atomic Taco)

King County Metro and Sound Transit have begun an outreach process to transit riders in the SR 520 corridor. Transit users and community members are invited to take a survey, running through April 2. Town halls will be held at University of Washington, in Redmond, and in Kirkland.  This will be the first of several opportunities for public input planned as service proposals evolve.

Six Metro routes (252, 255, 257, 268, 277, 311) and six Sound Transit Express routes (ST 540, ST 541, ST 542, ST 545, ST 555, ST 556) may be affected. Generally, the agencies are interested in truncating most service on SR 520 to the University of Washington light rail station. Several of those routes already serve UW, so possible service changes go beyond simply truncating the remaining routes to downtown.

Candidate routes for truncation at UW serve Kirkland, Redmond and Woodinville. A final proposal is also expected to include more frequent service on many routes, along with more service earlier or later or on weekends. New service between the Eastside and South Lake Union will be considered.

The immediate impetus for service changes on SR 520 relates to several construction projects in central Seattle including the anticipated closure of the bus tunnel and Convention Place Station by the end of 2018. Absent other changes, bus performance through downtown will be slowed significantly. The One Center City proposal truncates many bus routes at rail stations outside of the downtown core. Some of the changes are temporary remedies until Link extensions to Northgate and Bellevue are open.

On the other hand, changes to SR 520 bus service offer permanent benefits to riders if executed well. Rail to downtown is faster and more reliable than buses on I-5 and surface streets. The service hour savings can be redeployed to more frequent service on Eastside buses or service to more places. But understandable concerns about the efficiency of bus to rail transfers at UW remain.

Continue reading “Link Connections on SR-520: take the survey”

We have traffic because we drive so far

Afternoon traffic on I-405 near Canyon Park. Photo by SounderBruce.

We are regularly reminded that traffic congestion is growing across the region. The median Seattle metro area worker commutes nine miles to work. What if we could live closer to our workplaces? Drivers would drive fewer miles, and spend less time in traffic. Everybody who lives closer to work would contribute less to the congestion experienced by everybody else. This would reduce traffic even if everybody drives. But there’s a multiplier as denser places have higher transit (and walk, and bike) shares. Reduce travel distances by 10%, and there’s a more than 10% reduction in vehicle miles traveled.

Who has the longest and shortest commutes? The U.S. Census Bureau’s Longitudinal Employer-Household Dynamics has a handy mapping interface to their Origin-Destination Employment Statistics. I’ve charted the length of commute journeys for major cities in the region, per the PSRC classification of Metropolitan, Core, and Larger. (Here’s a similar chart for smaller cities).

The shortest commutes are enjoyed by residents of Mercer Island, Seattle, Bellevue, Kirkland, and Redmond. 75% live within ten miles of their work (vs. 52% for the region). Of course, these are the nearest cities to the two largest employment centers in the region. Commuters from more distant cities to downtown Seattle and downtown Bellevue must travel further.

Among the cities on the chart, the longest commutes are from the exurban communities of Maple Valley, Monroe, Arlington, Lake Stevens and Marysville. 71% of workers who live in those cities are more than 10 miles from their work. 31% are more than 25 miles away. These aren’t the very worst commutes in the region, however. Residents of some of the tiny mountain ‘smaller cities’ drive extraordinarily long distances to work.

Incidentally, Covington and Bonney Lake, both seeking larger city designation so they can grow faster, would have longer commute distances than most of the larger city peer group.

It will surprise few that people who live near Seattle and Bellevue have shorter commutes. But it invites an obvious question. Why is the regional growth strategy constructed around five Metropolitan Cities and 29 Regional Growth Centers? Why not draw more residential development closer to the two dominant business centers?

Continue reading “We have traffic because we drive so far”

Should Small Cities Grow Faster?

Downtown Snoqualmie

For over a year, regional planners have wrestled over growth plans with six small cities that are planning to ‘grow too fast’. Last month, the PSRC Executive Board tabled a decision on reclassification that could have eased the way for faster growth in Covington and Bonney Lake.

Six smaller cities, four of them in King County, are planning for growth that runs ahead of regional targets.

The region’s growth management strategy, VISION 2040, focuses most development within an urban growth boundary. Inside the growth boundary, the highest planned growth in each county is in “Metropolitan Cities” like Seattle and Bellevue. The next highest growth rates are planned for “Core Cities”, with progressively lower growth in “Larger Cities” and “Small Cities”. Small cities outside the contiguous urban area should grow more slowly than cities within.

In the last round of comprehensive plans, Six small cities created plans with growth capacity well above their regional targets. Four of these (Carnation, Snoqualmie, North Bend and Covington) are in King County, and two are in Pierce (Gig Harbor and Bonney Lake). In response, their plans were certified conditionally until they could come into compliance with regional goals. To date, the conditional certification has not impacted their access to grant funding, but might do so in the future.

Small cities have lower growth targets because they are typically further from major business centers. This means longer commutes that increase demands on regional transportation infrastructure. Unplanned growth impacts traffic in neighboring communities and on rural roads. The character of small towns is to be preserved. (Some small cities are indeed charming, others maybe less so). But slow growth strains the budgets of many smaller towns, dependent on an influx of new residents or businesses to fund existing services and infrastructure.

Continue reading “Should Small Cities Grow Faster?”

Eastside Park & Rides to Close for Link Construction

South Bellevue Park & Ride (photo by author)

Two park & rides on the Eastside will close in early 2017 for East Link construction. The South Bellevue P&R, with current capacity of 519 cars, is expected to close later in the first quarter. It will reopen in five years with an expanded capacity of 1,500 cars in a five-level garage. In the second quarter, the smaller Overlake Transit Center P&R will close for up to six years so it can be used for staging materials. Capacity at Overlake is about 220 cars. The future Redmond Technology Center Station will include a 320-stall parking garage.

Sound Transit will lease five new Park-and-Ride lots on the Eastside (in blue), and add capacity or service at several others.

Closure dates are dependent on construction scheduling and will be announced 60 days in advance. As the dates are confirmed, a more extensive public outreach effort will educate riders about alternatives.

To serve users during the closures, Sound Transit has expanded two existing leased lots and leased space at five new locations, accommodating 350 cars in total. All of the added capacity is at churches in Bellevue excepting one Renton location. The leased lots opened in December. That is less than a 1:1 replacement, but there is also unused capacity at some other Eastside locations such as South Sammamish, Houghton, Newport Hills, and Tibbetts Valley in Issaquah.

Buses will continue to serve South Bellevue during the closure. These include ST 550, 555 and 556, and Metro 241 and 249. The southbound stops will be relocated across the street. Road capacity will be reduced during some of the construction, but a reversible lane ensures two lanes can remain open in the peak direction throughout.

The closure of the P&R at Overlake Transit Center is being mitigated in part with ST Express service to nearby Overlake Village on ST 541, launched earlier in 2016. Sound Transit Express service on the SR 520 and I-90 corridors was increased in 2016, improving the frequency of service at several historically under-utilized lots.

Continue reading “Eastside Park & Rides to Close for Link Construction”

Trouble on Paradise Lake

This field off SR 522 is the planned site of a 360-unit apartment development.

Some years ago, I lived in a residential community east of Woodinville. It’s a typical late 1970s subdivision with houses on acre-lots surrounded by tall trees; the kind of place where deer graze in the yard by day and bears sometimes visit by night. After the Growth Management Act was adopted in 1990, the neighborhood was miles outside the King County Urban Growth Boundary. Zoning was amended to RA-5, effectively freezing pre-GMA development in place with five-acre minimum lots.

The neighborhood backs onto Paradise Lake Road, a winding rural road into Snohomish County. It was startling, therefore, to learn last week of a large apartment development on 17 acres of farmland alongside that road. The project comprises fifteen three-story apartment buildings with 360 apartments. Other than a church and middle school across the road, it’s a low density rural area with older homes on large lots.

A drawing of the proposed apartment complex shared by the developer at a meeting on Wednesday evening.

The rural area, it turns out, is bisected by the Maltby Urban Growth Area (UGA). It’s a long sliver of “urban” area along SR 522, mostly light industrial uses on the north side of the highway as it snakes up the hill from Woodinville toward Monroe. Five miles beyond Woodinville, the UGA was extended in 2005 for a church construction on Paradise Lake Rd. A neighboring landowner asked to be included in the urban area. For obscure reasons, the Snohomish County council agreed and rezoned the farm as Planned Community Business (PCB).

The zoning also allows multifamily. Hence the peculiar sight of fifteen three-story apartment buildings in a pocket of UGA surrounded on three sides by R-5 zoning, the 5-acre minimum lots that are designed to prevent development into the rural areas.

It is denser than many new developments in exurban Snohomish County, and will provide more homes than a comparably sized single family subdivision. More affordable too; though many residents will face long commutes, rents are about half the level of core urban markets. But it’s a textbook example of density in the wrong place. The only businesses are a pair of gas stations at the highway intersection, so every errand will involve driving. Roads lack lighting and sidewalks. The 720 parking spots required reflect a realistic estimate of the mode share and traffic impacts. The only bus in the area is the twice daily CT 424 which passes, without stopping, on SR 522.

The Maltby UGA extends for several miles along SR 522. ‘Urban Industrial’ uses are in purple, and ‘Urban Commercial’ in red. Pale green indicates rural areas outside the Growth Boundary. (Source: Snohomish County Future Land Use map)

What’s happened on Paradise Lake Road is an extreme instance of the development pressures along the edge of the UGA in Snohomish County. Around North Creek and other unincorporated communities around Bothell and Mill Creek, single family home development is booming. Land use is so inefficient that developers estimate they will soon run out of land within the UGA. Proposals are being floated to extend the UGA between Bothell and Mill Creek two miles east as far as SR 9 Woodinville-Snohomish Road.

What’s happened on Paradise Lake Road is an extreme instance of the development pressures along the edge of the UGA in Snohomish County. Around North Creek and other unincorporated communities around Bothell and Mill Creek, single family home development is booming. Land use is so inefficient that developers estimate they will soon run out of land within the UGA. Proposals are being floated to extend the UGA between Bothell and Mill Creek two miles east as far as SR 9 Woodinville-Snohomish Road.

Development on the rural edge generates severe traffic congestion, but is too sparse to support a significant transit share. Snohomish County’s Comprehensive Plan classifies Paradise Lake Rd and two dozen other rural arterials at “urban traffic levels”. LOS standards should act as a brake, preventing growth from running ahead of transportation capacity. In Snohomish County, low LOS standards permit low-intensity development to sprawl for miles into recently rural areas.

At two well-attended meetings this week, neighbors expressed frustration. Having been caught unawares of the 2005 rezone, their hopes may now depend on traffic issues. Paradise Lake Rd is the last signal-controlled intersection on SR 522 between I-405 and Monroe. A $100 million flyover is planned, but funded only for design (and only after 2025). Though local traffic congestion is severe, it does not yet appear to put the area in arrears under the LOS standard. The developer anticipates breaking ground in late 2017.