Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Tag: transit

  • Teaming up to fix Toronto’s traffic troubles

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    “This will be a game changer and will establish Toronto as a leader in running a truly smart city.”
    – John Tory, Mayor of the City of Toronto

    Yesterday I registered for a hackathon called TrafficJam that’s taking place this October 2 – 4, 2015 here in Toronto. It’s being organized by Evergreen CityWorks and the City of Toronto, with the goal of fixing Toronto’s traffic troubles.

    Tickets are free, but going fast. If you’re interested in this sort of thing, I would encourage you to sign up today. And if you do register or are already registered, drop me on a line so we can connect. I’m excited to see what kind of solutions we’re all able to come up with over the course of a weekend.

    But as I was registering and reading through the website, I couldn’t help but think about some of the traffic problems that we won’t be solving over the hackathon weekend, namely the politicization of transportation planning in this city.

    As an example of that check out a post by transit blogger Steve Munro called, The Vanishing Relevance of SmartTrack

    SmartTrack is the transit platform that Mayor John Tory ran on last year. And this post explains why it is unlikely to achieve its pitch promises.

  • The PRESTO Push

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    Back in 2004, I spent a summer living in Asia. And one of the things that I remember really standing out for me was Hong Kong’s Octopus card. It’s a refillable card that you just tap to get onto transit. Lots of cities have them.

    But the cool thing about the Octopus card was that you could use it so many other places besides just on transit. I don’t know know what it’s like today in Hong Kong, but I remember also using it in taxis and to buy breakfast in the morning at Pret a Manger. That was pretty incredible for 2003.

    This was also great for me because I’m one of those people that dislikes carrying around paper money/change. I almost never spend my change and so it just ends up just accumulating in a container beside my front door. Here in Toronto we also use microscopic transit tokens, so that adds another layer of inconvenience.

    But that’s all changing.

    Toronto now has its own version of the Octopus card and it’s called PRESTO. Technically it launched in 2009, but I only recently noticed the card readers appear at my home subway station (King Station). So tonight I decided to finally pull the trigger and order a card. I’ve been waiting 11 years for this moment 🙂

    And I was doing that, I noticed this message on the website:

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    Not surprisingly, we seem to be pushing to get PRESTO rolled out before the world comes to visit. And I think that’s a great thing.

    One of the big benefits of hosting an event like the Pan Am Games or the Olympics is that it creates a hard deadline to get things done, which is something governments often need. It’s a bit like tidying up before guests come over for dinner. You find a way to do it before people arrive.

    There’s a lot of debate about whether or not it makes sense for cities to spend the money on playing host city. But I don’t think we should ignore the fact that they can be a great catalyst for city building. Things get done. And oftentimes done is better than perfect.

    Good news: I’ve been told that the PRESTO system will be compatible with mobile phones and near field communication. Because let’s face it, cards won’t be around that much longer.

  • 11th Annual Land & Development Conference

    Today I spent the day at the 11th Annual Land & Development Conference here in Toronto. I found it particularly good this year, but it’s now late, I’m tired, and I want to go watch game 6 of the NBA finals. So I think this is going to be a fairly short post.

    Here’s a summary of some of my key takeaways from the day (a lot of it is Toronto-centric):

    • Increasingly, the commercial and residential sides of the real estate development business are converging. And it’s being largely driven by the focus on urban intensification and mixed-use.
    • This is leading to an “institutionalization” of the residential side, which has historically been the domain of smaller private/local companies and rich families.
    • Merger is creating complexity around asset valuations: Is it about the income (cap rates) and/or the future development potential?
    • Low rise house prices in Toronto continue to skyrocket. Supply is highly constrained. This has been the story for a number of years now.
    • High rise condo prices in Toronto continue to be more or less flat (modest increase). The industry is going to need to figure out how to work with and compliment the current surge in rental apartment development. There is an element of competition between the two asset classes.
    • According the RealNet’s new home price index, the spread between low-rise and high-rise housing in the Greater Toronto Area widened to $326,659 as of this past April (2015).
    • Rental Apartment Case Studies: Motion on Bay by Concert Properties (Bay and Dundas) was underwrote at $2.60-2.80 psf rents back in 2009. Rents are now in the $3 range. The Heathview by Morguard (Bathurst & St Clair) had $2.80-2.90 psf rents in its pro forma. It achieved and beat these numbers.
    • There’s a flood of Asian money coming into (1) Vancouver and then into (2) Toronto looking for development projects. There appears to be a lot of impatient and/or dumb capital out there. Challenge remains finding good development sites.

    I will end by saying that I found there to be greater transparency at today’s conference. There was a lot of talk about deal specifics and I don’t remember seeing this much detail at past conferences. 

    Maybe I just wasn’t paying attention closely enough before or maybe the industry is slowly becoming more transparent. I hope it’s the latter.

    If you were there today and I missed something groundbreaking, please share it in the comments below!

  • Revisiting electronic road pricing as a way to fight traffic congestion

    https://500px.com/embed.js

    As disappointing as this week’s vote on Toronto’s Gardiner Expressway East was, there is one good thing that has come to the forefront and that is the will to explore road pricing. At this point, I have almost no confidence that this City Council would ever vote it in, but at least we’re talking about it. That’s better than not talking about it.

    If you’ve been reading Architect This City since the beginning, you might know that I’ve been a vocal supporter of road pricing. I wrote two posts on the topic: The case for electronic road pricing (which was based on an HBS case I did as part of my MBA) and More on electronic road pricing (which was a Lunch & Learn I did while I was at TAS).

    I continue to believe that road pricing is a highly sensible solution to big city traffic congestion. But I do think that an electronic/variable pricing model is preferable to and more equitable than a flat toll model. A variable model means that the price of using the road adjusts based on congestion levels and/or the time of day. I also think that we should use as much of the revenues as possible to fund continuous transit improvements.

    If you’re interested in learning more about this topic, check out the two posts mentioned above. I’d also love to hear your thoughts on road pricing in the comment section below. Would you welcome it in your city?

  • Gardiner East vote shows that Toronto is not yet ready to be an urban leader

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    Today is very sad day for Toronto. 

    After 2 days of debate, City Council voted this afternoon, 24-21, in favor of rebuilding the elevated Gardiner Expressway East (”hybrid” option) that runs along the city’s eastern waterfront.

    And once again, Toronto is largely divided. See above image prepared by Joel Eastwood and William Davis.

    It’s the old city of Toronto (who uniformly wanted the elevated highway replaced with a boulevard) versus the rest of the city (who for the most part voted for the hybrid).

    I can’t begin to tell you how deeply disappointed I am by not only the outcome, but also by how it happened and why it may have happened. For all of our talk about being a progressive global city, today we are clearly not that. 

    Because more than a vote on what to do with the Gardiner East, today was a vote on how we believe we should be building this city for the future. 

    When the Gardiner East was first built, the vision was one of fluid private mobility, where it would be possible to quickly circle around and across the city on an endless sea of highways. Detroit was doing it. Baltimore was doing it. Everybody was doing it.

    In other words, we were building our environment around the car. And our primary – some would say singular – focus was to ensure that the car could move unencumbered around the city. That’s why Toronto is now home to the busiest and one of the widest highways in the world.

    But despite all this, Toronto remains crippled by gridlock. And so does every other big city city in the world that has bet on cars as the solution. Why is that?

    Because that model doesn’t work.

    The I-10 Katy Freeway in Houston is 26 lanes at its widest point. It is the largest highway in the world by number of lanes. But from 2011 to 2014, commute times in some sections increased by as much as 51%. Is that because they haven’t built enough highway? How much is enough?

    By comparison let’s look at a city that has bet on transit as the solution: Tokyo. 

    The metropolitan area of Tokyo is approximately 37.8 million people. That’s more than the entire population of Canada and by most accounts is the largest urban region in the world. But despite its size, Tokyo is consistently ranked as one of the most livable cities in the world and also one of the most efficiently run.

    Interesting.

    So when I heard Councillors going on today about how a vote for the “hybrid” is a vote not to increase congestion and gridlock, it became abundantly clear that many – apparently most – people in this city still do not appreciate what it is going to take to get us efficiently moving as this region approaches 10 million people by 2041.

    This should not have been a debate about 3 minutes. That, as I’ve said before, is a red herring.

    Of course, there was lots of lip service to transit. Many seemed to agree that transit is the future. And some even went so far as to say that removing the Gardiner East and replacing it with a boulevard is the right thing to do, but that we simply can’t do it now because we haven’t made the requisite investments in transit. 

    If transit is truly what we want, then we why don’t we take the boulevard savings and put it directly into transit?

    To me it’s like saying: I really want to be homeowner, but I can’t afford it right now. So instead, I’m going spend more on rent so that I can burn through more money and make it even more difficult for myself to eventually become a homeowner.

    Because that is what happened today. 

    We voted to overspend on a stretch of elevated highway that is used by a small sliver of downtown commuters (~3%), instead of replacing it with a cost-effective surface boulevard (with similar road capacities) and then prioritizing the proven solution to urban congestion: transit.

    At the same time, we also made a number of other things clear in today’s vote. 

    We made it clear that cars matter more than our city’s public realm; that cars matter more than our waterfront revitalization plans; that cars matter more than our environment and our “efforts” to reduce GHG emissions; and, frankly, that cars matter more than our overall quality of urban life.

    I believe that cars will always be a part of our cities, but I don’t believe in putting them ahead of you and I. I guess old habits die hard. That my friends, really sucks.

  • The case for planning transit around minimum population densities

    Photograph Blitz by Tristan O'Tierney on 500px

    Blitz by Tristan O’Tierney on 500px

    Back in 2011, the The Pembina Institute published a report called, Building transit where we need it. And in it they quite clearly outlined the population densities that are needed to make various types of transit investment cost effective.

    For subway they specify a minimum population density of 115 people per hectare and for light rail (LRT) they specify a minimum population density of 70 people per hectare. 

    And the reason for this is because there’s a strong correlation between population density (i.e. land use) and transit ridership. The two go hand in hand and should not be decoupled. If population densities are too low (as they are, for example, along the Sheppard subway line here in Toronto), people don’t take transit. They drive.

    Here’s a chart from the report showing the current and projected population densities for Toronto’s existing and proposed routes (keep in mind this is from 2011).

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    So what does this chart tell us?

    • Subways don’t make a lot of sense in many parts of the city. LRT will do just fine.
    • The Sheppard subway line is an under-utilized asset. Even by 2031 we’ll barely be reaching the requisite population densities.
    • The Bloor-Danforth corridor could use more intensification.
    • The Yonge-University-Spadina line is going to need to relief.

    Unfortunately, transit decisions are often made based on politics instead of data. And that results in subways in places that don’t make a lot of sense. That’s unfortunate because it means less riders, less revenue, and more subsidies.

    The other challenge with running subways through low density neighborhoods is that it then creates tension when the city and developers go to intensify those neighborhoods through transit-oriented development. (See #DensityCreep.)

    But if we’re going to be fiscally irresponsible about where we deploy our transit capital, the least we could do is upzone the surrounding areas and impose minimum population densities. 

    In fact, here’s what I think we should do: Land use should be bundled with the transit decision. 

    Instead of asking where the subway station should go, we should be asking where the subway station should go and all the density needed to bring the area up to a certain minimum population density. And if that second criteria for whatever reason can’t be met, then we don’t build the line. 

    I wonder if we framed the question in this way if it would change where subway lines get approved. What do you think?

  • Scootering around New York City

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    I am writing this post on a Porter flight from New York back to Toronto.

    For my last day in New York, my close friend and I rented scooters and rode all around Manhattan and Brooklyn. It was a great way to cover a lot of ground, but also a great way to still absorb the city. It’s harder to do the latter in a car and I never have any desire to drive in New York.

    Because the great thing about New York is that as a pedestrian you feel like you control the streets. When you’re waiting at a crosswalk, you’re never actually waiting. You walk off the sidewalk and onto the street so that you can assert yourself in front of the cars and wait for an opening. This serves to narrow the portion of road that the cars can actually drive on and reminds the drivers who is boss.

    At the same time, there are many instances throughout the city where New York has purposefully reallocated the space dedicated to pedestrians (and cyclists) and the space dedicated to cars. They’ve created new public spaces, widened the areas where people can walk, and seemingly blanketed the city with bike lanes. And that makes a lot of sense given that in many (most?) areas of the city, pedestrians greatly outnumber cars.

    So does that mean New York is at war with the car? (I’d be curious to know – in the comment section below – if those kinds of discussions take place in the city.)

    I suppose you could spin it that way. But New York also does things for cars. While riding around on the scooter today, I was so impressed by how well timed the streetlights were along the avenues. It made it incredibly easy to go downtown or uptown. In Toronto, I often feel like we time our lights to make driving as slow as possible.

    But make no mistake; New York is not a driving city. 

    New York is about walking, biking, taking transit, and hailing cabs. There is a reason they have the highest transit ridership in the US. The city is built for it. And unless driverless cars and ride sharing completely changes the equation, I will continue to believe that transit is the most efficient backbone for any big city.

  • What will driverless electric cars mean for cities?

    Photograph T E S L A by Thomas Juel on 500px

    T E S L A by Thomas Juel on 500px

    Yesterday I posted a video about the career of Elon Musk. And it reminded me of something that’s been on my mind as I think about transportation, cities, and the future.

    Elon’s story for why he founded SolarCity, Tesla, and SpaceX is incredibly compelling. He chose problems and industries that he felt would move humanity forward. He felt that we needed sustainable forms of energy production (SolarCity), sustainable forms of transport (Tesla), and a way for humans to occupy other planets (SpaceX). That’s incredible ambition.

    Today though, I just want to focus on the transportation piece.

    Electric and driverless vehicles, I believe, are a step in the right direction. I honestly believe that at some point in the not too distant future we’re going to look back at that time when people used to drive their own cars and wonder how we ever allowed that to happen.

    But fundamentally, I think there still remains a question of how best to plan our cities. 

    There’s lots of talk today about peak car and the death of the automobile. Certainly within planning and urbanist circles, there’s an almost universal belief that planning (most of) our cities around the car, as opposed to people, was a huge mistake. Multimodal solutions with a public transit backbone are now the way forward.

    But will that always be the case as the notion of the “car” evolves?

    Intuitively, driverless vehicles feels like a massive opportunity to leverage data and better optimize our private transport assets. We know that the utilization rate for most private cars is incredibly low and so there’s lots of room to improve how we use and share private vehicles and how we move people around cities.

    But how big is that opportunity? Does a city filled with driverless electric vehicles and with networks like Uber mean that public transportation now becomes less important? And if so, how much less important?

    I can’t help but feel like private and public transport are on a collision course right now. I suppose that isn’t anything new. But this time around I wonder if private transport won’t figure out a way to achieve similar efficiencies to large scale public transport.

  • Waterfront Cities of the World comes to Toronto

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    This morning I was interviewed for a Montreal-produced TV show called Ports D’Attache. The English version of the show is called “Waterfront Cities of the World” and it airs on Discovery. 

    Here’s a list of all the cities they’ve visited in the first 4 seasons and here are all the shows from the first 2 seasons in English (which you can watch online for free).

    Rather than a travel show, it’s a look at the “spirit and soul” of each waterfront city through the lens of “local personalities.” There’s definitely a lot of fodder for city geeks and so I thought you all might find the series interesting.

    Toronto was the last stop of season 5. The other cities from this season include Philadelphia, Budapest, Rome, Taipei and Kuala Lumpur, to name only a few of them. 

    I’m glad that they decided to come to Toronto and I’m delighted that they invited me to be on the show. The team was great and, if you haven’t already noticed, I love supporting this city.

    The show will first be released in French (with my comments dubbed over), but an English version will follow. Once that version is released, I’ll circulate a link.

  • “Project Snowball” cracks down on UberX drivers in Toronto

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    This afternoon I saw on Twitter that Toronto Police are now starting to crackdown on UberX drivers in the city. The investigation is called “Project Snowball” and they have already charged at least 11 people. The fines are anywhere from $200 to $20,000.

    My response on Twitter was the following:

    I get that Uber is a highly disruptive company. I’ve written about it many times before. But at the end of the day, this is not just about Uber. This is about a larger shift in the economy.

    The buzz term is “sharing economy.” But one of the ways I like to think about it is like so: Facebook doesn’t produce any of its own content, and yet you could define it as a media company. Airbnb doesn’t own any rooms, and yet it is disrupting hotels. Uber doesn’t own any cars or plates, and yet it is disrupting the taxi industry.

    What’s happening is that the internet and mobile phones are allowing for peer-to-peer connectivity and more decentralized forms of marketplace supply.

    What does that mean?

    It means that instead of having a fleet of cars or a centralized hotel building, anyone with an extra car or an extra room (and an internet connection) can plug themselves into the market. And that represents an entirely different cost structure for businesses.

    It’s worth noting that prior to Uber, Travis Kalanick founded a peer-to-peer music sharing company called Scour (1998). Its closest equivalent would have been Napster. Remember Napster? This is not a new trend.

    That said, I still think we’re at the early stages of this shift. I predict that many other industries will see disruptors similar to Airbnb and Uber. And so when I look at it in this context, I have a hard time believing that fining UberX drivers is the most enlightened way forward.

    I believe we should instead be taking a leadership position and trying to figure out how to adapt our rules and regulations to this changing economy. Toronto is not alone in this battle. But we could certainly be the one to lead the way out.