Money Magazine’s Best Place to Live in America 2000 is Portland, Oregon. In their article on Portland, they stress up front the economic transformation of the city “from old-tech timber town to high-tech hub,” with 1200 technology companies and one of the best job markets in the country. They give much of the credit for this to “a superb light rail network and a new streetcar system [which] are helping make it a cinch to get around.” Mayor Vera Katz says, “We’re growing gracefully because we made decisions early on to honor the pedestrian over the automobile and to plan out growth and transportation as a region.”

Light rail is not just a transit mode; it is a powerful tool for economic development.

• In Dallas, within five years of the opening of their $860 million light rail line (Dallas Area Rapid Transit or DART), over $1 billion in direct private business development has been invested near the train stations.

• Property values increase near light rail lines; they decrease near freeways. In Dallas again, vacant land values appreciated five times faster around light rail stations than around comparable non-DART areas.

• Average occupancies for certain classes of buildings in the Dallas light rail corridor increased from 80 percent in 1994 to 88.5 percent in 1998, and rents increased from $15.60 to $23 a square foot.

• Use of public transit has been shown to increase regional income and regional jobs. A 1999 Texas study found that each 1% shift in regional travel from automobile to public transit causes a $2.9 million increase in regional income and 226 additional regional jobs.

• The existence of a progressive transit system can improve the image, confidence, and quality of life of a region in tangible ways which make it more attractive to relocating businesses, and which help existing businesses attract and retain highly-qualified employees.

• Light rail encourages tourism and conventions. Visitors can get around town in a safe, clean, fun, economical way, which encourages them to spend more money over a greater part of the city.

• The nature of rail transit encourages larger private investment along the corridor since rails ensure a permanent flow of customers/residents/shoppers/visitors to a business’s doors for decades to come.