The next essential study for the North+South Passenger Rail is launching now, and one of the key areas of research will be looking at community economic development spawned by train stations in towns along the proposed line. Here we take a look at a couple of high-profile train stations in the United States that have had remarkable impact on their surroundings. The developments offer a sense of possibilities as communities think through how to best manage the potential growth in commerce and population that will flow from the train stations to be constructed or renovated in Michigan towns.
Since its inception, passenger rail has proven to be a strong catalyst for economic development in the communities it connects. Today this remains true, especially when municipal leaders, residents, and business leaders come together and embrace passenger rail as a resource.
Compared with other transportation hubs, train stations provide unique opportunities that make them ideal nodes for downtown development. Airports, for instance, put through high numbers of people, yet require large amounts of land, are typically far from city centers, and are extremely noisy. Train stations offer a quieter and more compact alternative that can still handle large numbers of passengers, and can even function well within walking distance of downtown.
More and more, communities are choosing to develop public amenities such as parks and recreational facilities near train stations to further invigorate the area near a station.
With a relatively small real estate footprint and large transport capacity, train stations are ideal catalysts for development nearby. We’ve seen evidence in cities around the country and the world. Municipal leaders have chosen to invest in new stations and also to beautify existing train stations, re-envisioning them as gateways to the community with reconstruction. More and more, communities are choosing to develop public amenities such as parks and recreational facilities near train stations to further invigorate the area near a station.
When municipal leaders develop a train station that appeals to people, it can become a hub within a community for transit as a whole, a place where buses, rideshare, rental cars, carpooling, and micro-mobility solutions all co-exist. Such a place can create a marvelously efficient transportation ecosystem and also become a public gathering spot, which has immense potential for driving economic development within a community.
Areas with high foot traffic are ideal for restaurants and shops, and in many communities, these types of small businesses benefit the most from successful train station development. If municipal leaders take steps to sustain a train station and transportation hub, and the associated foot traffic, developers typically take note and build retail, offices, and apartments in the vicinity. In some cases, developers purchase and revitalize historic buildings that have fallen out of use. New businesses open in these new and revitalized buildings, and established businesses also share in the increased level of commerce. Inside the station, space can be created for shops and restaurants that can serve both train passengers and the general public.
Comparative cost is another area where train stations are competitive. The most expensive train station remodel/reconstruction project of the 21st century, expanding New York City’s Penn Station through the addition of Moynihan Train Hall, cost $1.6 billion in the heart of a city with some of the most expensive real estate and complex underground infrastructure in the world. (By comparison, New York City’s recent LaGuardia airport renovation cost $8 billion.) What’s more, the expanded Penn Station provides more than just a better passenger experience. Its new amenities are open to the public whether folks are catching a train or not. Area residents gained a small shopping center with more than a dozen restaurants, bakeries, cafes, shops, and a convenience store. And even though it’s New York, the vast majority of these businesses aren’t outposts of national chains. Rather, they’re local businesses with perhaps a few locations in the region and strong ties to the community.
Looking south, Florida East Coast Industries’ (FECI) Brightline passenger rail service has begun to facilitate the local economic development that communities often see when new train stations open. As they launched service and built stations, FECI anticipated the economic boost by building large transit-oriented mixed-use developments around their train stations in West Palm Beach and Miami. The developments quickly became some of the most desirable residential and retail spaces in their respective cities. Architect Magazine estimates that MiamiCentral Station—a six-block megastructure completed in 2018 and consisting of two apartment towers, an office building, and a shopping center with a food court—was constructed for $83 million. The apartments alone sold for more than $400 million in 2022, while the retail and office spaces provide longer-term revenue.
Several cities without stations have directly lobbied Brightline to extend service to their communities or build new infill stations along the route.
Beyond the investments FECI has made in developing the areas around Brightline’s stations, other local and national developers have begun to join the fray with projects of their own. Since the station in Fort Lauderdale opened in 2018, the DDA estimates that the city’s downtown has seen its population rise by 10,000, and developers have built 5,000 new rental units. West Palm Beach and Miami have seen slightly smaller but similar booms, while Aventura and Boca Raton are beginning to see new developments take root. South Florida communities are so excited about the potential for growth and a better connection to the rest of the state that several cities without stations have directly lobbied Brightline to extend service to their communities or build new infill stations along the route.
In each community that is host to one, a train station is among the most valuable of assets. As the Phase 2 portion of the North+South Passenger Rail study moves forward, our team will be working closely with local policymakers to ensure stations become treasured parts of their communities by working to enhance surrounding areas. We’ll explore such strategies as parks, streetscape redesigns, public art, grants for the revitalization of historic buildings, investment in local public transit and micro-mobility solutions, and other initiatives and policies that focus on the public realm. We’ll invite residents to play an essential role too. They will be able to provide input when a train station project is proposed, throughout the duration of the project, and after, to ensure plans take into account the community’s wants and needs. When a community comes together to ensure it, a train station can be a force that spawns a multitude of opportunities.
Michael Goldman Brown Jr. is Groundwork’s Transportation Specialist. michael.goldman.brown@groundworkcenteer.org=
