Report: light rail is boon for Phoenix businesses

Almost 36,000 riders daily

Steve Hawley, Apr 16, 10.

The owners of 14 Phoenix businesses interviewed by the Arizona Public Interest Research Group (PIRG) say that the new light rail line has increased pedestrian traffic, business visibility, and revenues, as well as reducing parking difficulties, according to Rail Life.

Business owners said that in addition to bringing more pedestrians during the day, the light rail has also boosted the number of evening and weekend customers. One owner reported a 30 percent increase in revenue after the line opened in December 2008, and another said he targets his advertising specifically to people getting off at the light rail station.

According to Valley Metro’s official ridership information, the 20-mile light rail averaged over 31,000 riders every day in 2009, and that number has risen to 35,600 through the first three months of 2010. March set a new ridership record with over 1.16 million total passengers, eclipsing the previous mark set in October.

Other business owners reported that the light rail is beneficial for special events such as sports and arts and music festivals, reducing the parking hassle in downtown Phoenix. Another noted that it is already helping to redevelop the area, closing “seedy hotels” and discouraging the “riff-raff” that used to hang out downtown, which in turn boosts residential and commercial property values

Some of the business owners were opposed to or skeptical of light rail initially, but those interviewed have now turned into supporters after seeing its effect on local businesses. The support is not limited to these individuals, either; members of the Downtown Phoenix Association want Valley Metro to build future extensions near their businesses.

In a statement, Arizona PIRG states:

The compilation includes one business for every other light rail stop, and encompasses businesses all along the light rail line, from the Sycamore and Main Street stop in Mesa to the 19th Avenue and Camelback stop in Phoenix. A variety of establishments are represented, from retail stores, to restaurants, to service establishments and art galleries.

In 2006, Houston Tomorrow (then the Gulf Coast Institute) conducted several studies to assess the impact of light rail on businesses in Houston, Dallas, Los Angeles, Minneapolis, Portland, Salt Lake City, and San Diego. In Houston, ticket sales increased at museums and other cultural institutions, bars and restaurants increased their business, and health workers rejuvenated street-level businesses in the Medical Center.

While business owners in some cities experienced problems during construction, the overall impacts were positive in most instances. The only exceptions were San Diego, where most of the rail line is elevated or underground, and Los Angeles, where one of the rail lines runs through a relatively undeveloped area. In both of those cases, there was little positive or negative impact on businesses.

AZ PIRG report: The Businesses of Light Rail: A Compilation of Local Business Interviews (pdf, 9.9 mb)

2006 Houston Tomorrow reports:
The Impact of Light Rail on Local Businesses (pdf, 314 kb)
Impact of Light Rail Construction on Existing Businesses (pdf, 92 kb)
The Business Impact of Light Rail Once Service Begins (pdf, 88 kb)
Interviews with Richmond Business Owners (pdf, 506 kb)
Light Rail and University Campuses (pdf, 124 kb)
Light Rail in Six Big Cities: A Fact Sheet (pdf, 152 kb)