REGIONAL PLAN ASSOCIATION (RPA)
Key Findings
Our infrastructure crisis is real.
The Milstein Forums on Infrastructure were established by the Regional Plan Association (RPA) and the Howard and Abby Milstein Foundation to explore the challenges facing our regional transportation network, with the imperative of maintaining New York as a global city, important not only to its inhabitants and neighbors, and connected to the world as a whole. Infrastructure investment is vital to this success.
We must act now.
Our entire metropolitan economy is at risk if we fail to do a better job of maintaining, modernizing, and expanding our key regional infrastructure networks, including roads, bridges, railroads, subways, and airports. A number of themes and key issues emerged from these forums. These include the following findings:
It’s not just about roads and bridges.
Subways, buses, and airports are as important as road and bridge projects in encouraging economic growth, land development and enhancing mobility.
There are no silver bullets.
Public-private partnerships (PPPs) have helped advanced infrastructure projects in the New York metropolitan region, but have not been a replacement for government financing from the federal, state and local levels. The Federal Transit Administration’s New Starts program, in particular, has been critical in financing transit projects, though the slow planning timeline for New Starts has been a consistent frustration for local agencies.
Public-private partnerships are uniquely distinct – no two are alike.
PPPs analyzed by Regional Plan Association over the course of this project were complex agreements and unique to particular locations, government leaders, and moments in time.
The market matters.
Innovative financing through land value capture is more feasible in dense areas with strong real estate markets.
No project is an island.
The most successful infrastructure projects in our region were developed as part of a broader strategy to meet long-term growth and sustainability goals, and those projects benefited from strong connections to local land use policy.
Short cuts are dead ends.
Public engagement programs that go far beyond the legal environmental review requirements have helped projects overcome obstacles and local opposition.
Leadership and institutions matter.
Strong state and city leadership and a dedicated project team are critical to advancing projects.
Executive Summary
New York often moves to the beat of its own drummer, but when it comes to infrastructure, it shares common cause with metropolitan regions throughout the United States. Crumbling bridges, crowded airports, contaminated drinking water and dilapidated schools have become metaphors for both economic and political dysfunction. We spend far less on infrastructure than our peers: just 1.6 percent of our GDP compared to 5 to 9 percent in most other European and Asian developed countries. And transportation legislation that formerly highlighted bi-partisan compromise is now mired in political stalemate.
The results of this disinvestment, along with our failure to innovate, are palpable. Delays have grown, construction costs have skyrocketed, and our institutions have failed to modernize or learn from other world cities. It is more expensive to build new transit in New York City than anywhere else in the world, so we’re not adding nearly enough new capacity. We’ve added 400,000 new residents and over 500,000 new jobs in 7 years, and subway ridership is up by 22% over that time period, but our system has barely changed.
Through intensive research, this report analyzes how other cities have handled infrastructure investment, where we are falling further behind, and recommends solutions that will bring New York back to its position of leadership.
Critical Recommendations
Build the new Gateway Tunnel and advance national transit priorities immediately
The New York region, and the country, will not succeed without a new passenger tunnel under the Hudson River. And it must be completed before the existing tunnels fail, which is likely to happen within the next two decades. Federal, state and local leaders need to keep their focus on this priority, and the business community must continue advocating and explaining what will happen if we lose the Northeast Corridor for an extended period of time.
Penn Station must be redesigned
Penn Station has reached its maximum practical capacity. The location, design, and connectivity of the new station must address the current and future needs of commuters into the New York Region.
Dramatically increase federal, state and local government spending on infrastructure
Our economy, national security, and future success as a region depend on our infrastructure network, a network that is currently falling apart from years of disinvestment. Even as we look to private investment in infrastructure, we still need the public sector to lead by investing in maintenance, modernization and capacity expansion. The federal government needs to lead here, and reward cities and states for providing local funds.
The business community must take a leadership role
We can’t rely on politicians or the public sector to fix all our problems. London’s Crossrail project was advanced in large part because of business support and willingness to contribute financially. The New York business community must step up to the plate, demonstrate leadership, and help solve this crisis.
Political leaders must unite to solve the crisis
Infrastructure projects across the country have benefited from strong leaders and political coalitions. Our elected leaders need to put aside their differences and find common ground to move forward on an ambitious program of rebuilding and modernizing. This applies equally to federal, state and local officials and legislators. Infrastructure is too important to become a political bargaining chip. The economy of New York is literally being held hostage. Every day that we fail to build the Gateway project, expand our airports or modernize our subways is another lost opportunity.
Win public support by asking voters to support a clearly defined set of projects
Too often, the public is asked to support new funding without any clear program of what it will provide. Institutions needs to commit to investments – and then deliver them – to build public support for further investment and break the cycle of cynicism.
Partner more with the private sector
One Vanderbilt is an excellent example of how private companies can help advance projects and ensure they get completed on time. In other parts of the world, transit systems are operated and maintained by private corporations under strong concession agreements. This approach could provide better service and a reasonable price, if done right.
Modernize work rules
Overly restrictive work rules are not keeping pace with technology and needs of the system, and are limiting access to the workforce. New trainings programs and types of jobs are needed, to expand the roles of transit employees in customer service and construction.
Reform our key institutions
Outdated governance models at the MTA and Port Authority have put the agencies deeper into debt and unable to plan, finance and deliver the full range of projects necessary to keep us competitive. The Port Authority has not been able to deliver meaningful reform over three years after the Bridgegate scandal came to light. New leadership at the MTA offers hope, but institutional reform needs to give these public servants the powers and resources they need to deliver.
Initiate ambitious reform at transportation agencies
Outdated work rules, overly bureaucratic procurement processes and burdensome regulatory requirements cripple our public agencies. The lessons learned from successful projects, especially the Tappan Zee Bridge construction, need to be institutionalized to allow future projects to benefit from parallel permitting and planning, expedited procurement, and Public-Private Partnerships.
Integrate land use planning and transportation
Transportation projects should be part of an integrated planning system that encourages growth and density near stations, including new employment opportunities, housing and public amenities. Communities that are unwilling to grow should not expect to get limited public funds for capacity expansion.
Consider targeted subway and station shutdowns so work is completed faster and cheaper
Other transit systems benefit from having longer periods of time when maintenance can occur. The only way New York’s subway system can be restored to a state of good repair in a reasonable amount of time is if portions of the system are shut down to allow aggressive repair and maintenance schedules, as has been done at Penn Station and will be done to the L line.
Drive innovation through value recapture, but understand its limitations
Beneficiaries of infrastructure investments can help pay for the costs of the projects, but there are limitations to this model. Land value capture successfully helped advance the #7 subway extension to the Hudson Yards, but few transit extensions have the opportunity to generate that much new development.
Plan for sea level rise now
Especially vulnerable areas with substantial infrastructure include those in the Secaucus and the Meadowlands, especially Teterboro and LaGuardia Airport. This includes phasing out Teterboro Airport by 2050 by building a new business jetport or one or several smaller close-in general aviation airports, and accommodating the growth in travel at JFK and Newark, perhaps with the addition of new runways. We need bigger airports to grow and accommodate future travel, but we need to plan in a way that takes our future coastline into account.
Utilize the certificate of occupancy to ensure that developers deliver the agreed upon improvements
The occupancy of the “bonused” space has been directly tied to the delivery of the transit improvements. This ensures that the developer will be highly motivated to complete the improvements in a timely manner. The One Vanderbilt public-private partnership is anticipated to deliver cost savings through greater efficiencies. It is a model that should be evaluated for future new developments throughout the region, no matter the scale.
Complete projects in longer but fewer phases to eliminate the drivers of construction cost
Breaking tasks into multiple phases typically increased costs for construction and soft costs. Completing projects in fewer phases increases efficiency and reduces capital costs.
Download full version (PDF): Rescue and Renew
About Regional Plan Association (RPA)
www.rpa.org
RPA is America’s most distinguished urban research and advocacy organization. RPA works to improve the prosperity, infrastructure, sustainability and quality of life of the New York-New Jersey-Connecticut metropolitan region. Some of the region’s most significant public works, economic development and open space projects have their roots in RPA ideas and initiatives, from the location of the George Washington Bridge to the revitalization of downtown Brooklyn, Stamford and Newark to the preservation of open space and development of parks in the Palisades, Governors Island and Gateway National Recreation Area.
Tags: New York City, NYC, Regional Plan Association, RPA
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