The Great U.S. 460 Swamp

The Great U.S. 460 Swamp

VDOT had loads of warning that wetlands could kill the U.S. 460 project but the state charged ahead with a design-build contract that everyone knew could explode.

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Coming up: Car-Lite Burbs

Coming up: Car-Lite Burbs

A California developer is teaming with Daimler AG to bring buses, shuttles and ride sharing to an Orange County community -- with no government subsidies.

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Putting the “Garden” in Rain Garden

Putting the Garden in Rain Garden

Soon Virginians will start spending billions to meet tough storm-water regs. Lewis Ginter Botanical Garden wants to show how we can save the bay – and look really good doing it.

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Tech Insurrection

Tech Insurrection

Smart cities, says Anthony Townsend, will be forged by geeks, activists and civic hackers through bottom-up technological innovation.

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Sprawl’s Hidden Subsidies

Sprawl's Hidden Subsidies

The answer to sprawl isn't more regulation, says Pamela Blais, it's fixing the endemic biases embedded in taxes, utility fees, municipal services and mortgages.

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Building the Dynamic Dominion

virginiaIn its long-running Dynamic Dominion series, the Times-Dispatch today examines the issue of entrepreneurship in Virginia… or the lack of it. The editorial quotes approvingly an argument I made recently that the intertwined phenomena of lackluster economic growth, persistent unemployment, stagnant wages and the income gap can be traced in large measure to the declining rate of business formation, which in turn can be traced to over-regulation. Observing that Virginia trails the national average for business startups by three-tenths of a percentage point, the editorial surveys the climate for entrepreneurship here in the Old Dominion.

The T-D piece covers a number of other topics: Virginia’s lagging R&D sector, regulation of the craft brewery industry, the failings of business incubators and the folly of municipal investments such as the failed 6th Street Marketplace as job-creation schemes. These are all worthwhile matters to examine. Whether you agree or disagree with the T-D — or with me, for that matter — is less important than whether you give serious thought to this foundational question.

After all, there’s one thing that we can all agree upon: Without a hospitable environment for entrepreneurs, we will never have a strong economy. Without a strong economy, we will never have the resources needed to resolve the social problems we all would like to address. Virginians have too long taken their superior economic performance for granted. We’re losing our edge. It’s time to re-examine the way we do things. The T-D editorial, indeed its editorial series on the Dynamic Dominion, is a necessary start.

– JAB

Sharing Information to Gain Competitive Regional Advantage

by James A. Bacon

Very different models of regional competitiveness are emerging as people think seriously how to harness the power of smart cities. In metropolitan regions like Charlotte, Seattle and San Diego, for example, major property owners are collaborating with municipalities and power companies on communal energy-efficiency initiatives.

Tapping the potential of “smart grids” is a great idea. But that’s just a start. Udaya Shankar, a vice president with Xchanging, sees smart buildings as the foundation for smart cities. Writing in IoT World, he recommends that smart buildings pool information for mutual benefit. “When buildings operate in a silo, we gain no insight into the effects one has on the other, and if a smart city is the sum of its parts then there is something to be lost in keeping them separate.” He envisions a future in which smart buildings connect and talk to cities and to one another.

It’s an intriguing premise. Shankar provides few examples of what kind of information sharing property owners can share, but we can think of a few.

Smart grid. Almost all smart buildings draw electricity from the electric grid. They monitor their consumption carefully and have some flexibility as to how much they consume and when. Sharing this information can help the power company optimize its generation and transmission assets, benefiting everyone through lower rates.

Water. All smart buildings consume water. In many municipalities leaking water pipes is a major issue (up to 20 percent of all water is lost through leakage). Sharing of usage data can help water companies identify leaks, reduce water loss and delay the need for expensive capacity expansions.

Parking. Many smart buildings maintain parking assets for their employees: either open parking lots or parking garages. Sharing information about parking capacity and usage can help cities better match parking supply and demand. By optimizing the amount of valuable urban land dedicated to parking, cities can convert excess parking to more productive uses that yield more taxes.

Lighting. Cities operate street lights. So do many smart buildings. Sharing information can allow cities and building owners to reduce the wattage needed to light public spaces, thus conserving electricity and curbing light pollution.

Security. Smart buildings typically are equipped with security cameras to provide added security for occupants. Sharing video feeds with the city can provide law enforcement authorities with more eyes on the street, helping prevent and solve crimes.

Transportation. Smart cities utilize a variety of strategies — mass transit, walkable and bikeable streets, road improvements, car- and van-pooling — to manage traffic demand, many of which require cooperation with employers. Sharing information about employees and their transportation needs can help cities fight congestion.

We’re moving into a world where the sharing of information confers competitive economic advantage. Here in Virginia, we should start by encouraging state agencies and local governments to open up their data — not just to link to it from websites but to make it available so anyone, whether a business enterprise or a civic activist, to add value to it. Then we should start creating mechanisms whereby building owners can share information with local governments to tackle public challenges ranging from energy conservation to traffic congestion.

Communities that move first will gain competitive advantage. Those that are slow to adapt will fall behind.

The Prosecution Closes on a Weak Note

Bob McDonnell: Now it's time to hear his side of the story.

McDonnell: Ready to give his side of the story.

by James A. Bacon

The U.S. Justice Department closed its case in the McDonnell trial on a weak note Thursday as cross examination of FBI Agent David Hulser confounded the narrative prosecutors were trying to establish of a financially desperate first family.

Previous testimony had revealed the seemingly damning fact that Maureen and Bob McDonnell had accumulated $90,000 in credit card debt before entering the governor’s mansion. I blogged my personal shock and dismay at the revelation that the McDonnells had run up such a massive credit card debt. I had viewed that fact in the context of Maureen McDonnell’s oft-cited complaint that her credit cards were maxed out and her grabbiness in soliciting gifts and loans from Star Scientific CEO Jonnie Williams. I drew precisely the conclusion that the prosecution hoped I would: that the McDonnells had run up the tab imprudently, perhaps recklessly.

But it turns out there was more to the story. One reason for the big credit card bill was Bob’s run for governor. He had resigned from his position as Attorney General in February 2009 so someone else could take the helm. He was not exactly left penniless – he made $129,000 during the campaign by going on the payroll of his former law firm, Huff, Poole & Mahoney. Still, as McDonnell told reporters after the trial proceedings, running for governor is expensive.

Yesterday, new dots were added to the page, allowing the jurors (and bloggers) to connect them differently. Under questioning by Henry Asbill, one of Bob McDonnell’s attorneys, Agent Hulser conceded that McDonnell’s credit scores were excellent and that the prosecution had presented no evidence to suggest that he had failed to pay his credit card bills on time. Hulser also conceded that the McDonnells’ credit cards had untapped credit on them, although he could not confirm Asbill’s assertion that the amount approached $175,000 to $200,000. All that came atop previous testimony that the first family had paid down its credit card debt to $31,000 in April 2011 after Maureen received an inheritance and Hulse’s concession that the McDonnells had repaid three loans to Williams totaling $120,000, as had been the intention all along.

Furthermore, here are questions that any reasonably intelligent juror would ask that the prosecutors did not answer:

  • What were the monthly minimum payments on the credit cards?
  • What was the gap between PITI (principal, interest, tax and insurance) on the McDonnells’ former residence in Henrico County and rental income ?
  • What was the gap on their Wintergreen property?
  • What was the gap on the two Virginia Beach houses held in partnership with Bob’s sister?
  • What was the gap on the McDonnells’ Alexandria rental property?
  • What was the income or loss on all those properties? How much of a financial hardship did that pose to a governor earning $175,000 a year and living rent-free in the governor’s mansion?
  • Did the McDonnells subsequently succeed in restructuring their debt? Did a bank and/or credit union deem them credit-worthy?

There’s a lot we don’t know about the McDonnell family finances. This lacunae in the data hardly lets the McDonnells off the hook for soliciting gifts and loans from Williams, a man who was seeking favors from the governor. No matter how you cut it, Bob and Maureen showed colossally bad judgment. The “optics” were terrible. But bad optics are not, in themselves, illegal. And the burdenof proof rests with the prosecution.

While the prosecution did successfully portray the McDonnells as under financial pressure, it hardly made the case that they were desperate. During the time in question, McDonnell was trying to restructure his family finances through loans from the Pentagon Federal Credit Union and Towne Financial Services Group. If he could roll over his debt until his term expired, he could repay it once he started making $500,000 a year or more as a rainmaker for a big Virginia law firm or occupied a well-paid sinecure as a university president somewhere.

That still leaves the seemingly incriminating omission of the Jonnie Williams loans in Bob McDonnell’s loan applications to the Pentagon Federal and Towne Financial, which in previous posts I had regarded as potentially the most damaging charges against the former governor. Why would McDonnell seek to cover up those loans — a potential felony — if not for nefarious purposes?

That question assumes that McDonnell was covering up anything. Defense attorneys revealed their line of logic during cross-examination Wednesday. True, McDonnell submitted a loan application that omitted reference to the Jonnie Williams loans. And, true, after police began asking questions, McDonnell submitted a revised loan document that included the Williams loan information. John Brownlee, McDonnell’s attorney, argued that the governor’s revisions to the loan document were part of an ongoing process before the application was finalized — a process that was extended due to McDonnell’s preoccupation with the legislative session. It turns out he had omitted other data as well, not just the Williams loan. The revised document included a car not mentioned previously. Finally, the Pentagon Federal loan manager testified that she was not surprised to see the revisions. Apparently, such revisions are common.

As for the loan application submitted to Towne Financial, President William Sessoms (who also is Virginia Beach’s mayor) testified that a personal financial statement such as the one McDonnell filled out need not have included mention of debt owed by his wife ($50,000) or by a limited liability company such as MoBo Real Estate Partners.

Bacon’s bottom line: The prosecution case is looking surprisingly weak — and that’s before McDonnell testifies on his own behalf. The prosecution has managed to air a lot of the McDonnell family’s dirty laundry. And it has exposed activities that, if not illegal, perhaps should be illegal. However, if I were a juror rendering a verdict based on what I know at this moment in time, I would vote to acquit. But I have flip-flopped a couple of times already on this trial, and I may well do so again.

Is Pretentious Richmond Really Hooterville?

green acresBy Peter Galuszka

Is Richmond really Hooterville?

By golly gosh, that’s the impression that one might come away with after 14 days of testimony at the corruption trial of former Gov. Robert F. and Ms. Maureen McDonnell.

Pretentious Richmond likes to see itself as a genteel and sophisticated historic relic with a Southern snob appeal rivaling Charleston, S.C.; an architecture and culture that worship the English (although the best of the Brit lot didn’t always end up here); and basic unfriendliness. At the upper levels, people whose can’t trace their families back several generations are not really welcome unless they have lots of money, which bespeaks Richmond’s more honest background as a service and industrial town.

“RVA” as its promoters like to now brand it, is supposed to be a tourism and great restaurant destination with professional service (that’s a laugh). Residents are supposed to enjoy a high life that goes well beyond a burg of 1.25 million trapped in the distant shadows of Washington, D.C.

To be sure, some younger Richmonders are thankfully well beyond these handcuffs. So are a passel of “come heres” who have brought the town more sophistication from Germany, Japan or Croatia or even from  even from such Deeper South spots as Charlotte and Atlanta — Charleston being little more than a tourist trap and shipping center. Richmond does have nice museums, art galleries and a popular baseball team that they’re trying to ruin by moving it to a congested, politically orchestrated spot.

But you’ve got to wonder. In recent trial testimony, the story was told of Jonnie R. Williams, star witness for the prosecution, who tried to court (among many others) Dr. George Vetrovec, a researcher at Virginia Commonwealth University. Williams was trying to get VCU’s and the University of Virginia’s imprimatur on Anatabloc, Williams’ over-the-counter anti-inflammatory so questionable it has just been pulled off the shelves nationally. The former used car salesman also dotted doctors’ meetings with props from Johns Hopkins University as if they were supposed to impress the supposedly lower-tier Virginia folks. To their credit, many state officials didn’t bite.

Dr. Vetrovec thought he was going with Williams to the Executive Mansion to sample some of Ms. McDonnell’s cookies which are supposed to be delicious. Instead, it was a reception for dynamite director Steve Spielberg, in town to film “Lincoln” in October 2011.

Wowie! Zowie! THE Spielberg! “This is the most unusual event you can ever imagine,” the doctor said. As readers can see from the link, Vetrovec’s statements were reprinted in the London media, giving Richmond a somewhat laughable reputation.

Huh? Where the hell are we? “Green Acres?” Go to any city that Richmond aspires to be like Atlanta, D.C. or New York. No one would go nutty over Spielberg-spotting. Movie stars and directors are like so, so what? But Richmond was mad about “Lincoln” and was chock-a-block with all the local stand-ins they hired. You couldn’t walk downtown without tripping over the beard of an extra that he might have waxed with bacon grease to give it an 1865 look and aroma.

My own sister was an extra in “The Exorcist” in Georgetown back in the 70s but she never regarded it as the high point of her life. It was more an amusing anecdote to be shared over a glass of wine. When I worked in Moscow in friendlier times in the 1990s, I was driving downtown near a hotel. I was amazed since it was covered in bullet holes – even more so that I didn’t hear the shots although I lived nearby. Turned out it had been a prop for a Val Kilmer movie and they hadn’t cleaned it up yet. Muscovites did not gush. They walked silently by.

So are Richmonders really that impressionable? Is it a deep sense of being second rate? Is it an over-sized turnip truck? Why were the McDonnells so impressed with Williams’ Ferrari that they had 25 pictures of them with it? Had they never seen a Ferrari before?

There’s the $5,000 bottle of Louis XIII cognac in New York’s Four Seasons hotel. Later, Williams spent something like $36,000 for a four-day getaway for six people including the McDonnells at a posh Cape Cod resort. The six tippled 16 glasses of Louis XIII for something like $125 a snifter. Their dinner menus included lobster, duck, steak and fish – all on Williams’ tab.

And on it goes – the Rolex, Louis Vuitton, Oscar de la Renta, the golf clubs and so on.

The obvious corruption is worrisome and hopefully the  federal (not state)  court will address it.The extra blow is that Richmond doesn’t just look bad, it looks ridiculous. It seems like a Third World capital, perhaps Jakarta, where traders and investors used to bring special goodies for Mrs. Suharto (a.k.a. “Mrs. Ten Percent.”)

Will Richmond be regarded as too simple to handle business, culture, science and education in  a much more interconnected and increasingly sophisticated world? Will foreign business scouts show up at RIC with suitcases full of cash, or maybe fake gold trinkets? Could it be that the McDonnells have it right — Richmond is really Hicksville after all?

Woo Hoo! One Million and Counting…

million

Bacon’s Rebellion passed a big milestone late last night — we hit one million page-views since our blog-relaunch in July 2011. We know there are other political blogs in Virginia that generate more traffic but we’re really proud of the caliber of our audience and quality of interaction in our comments. Thank you, Bacon’s Rebellion readers for helping to bring us this far.

– JAB

Another Day Older and Deeper in Debt

Bob McDonnell. Photo credit: Washington Times

Bob McDonnell. Photo credit: Washington Times

OMG! Maureen and Bob McDonnell owed $75,000 on seven credit cards when Bob took office as governor in 2010. Their credit card debt peaked at $90,000 later that year. The first family managed to pay down its debt to around $31,000 the next year, apparently after Maureen inherited some money, according to the Times-Dispatch.

Think about it: They owned a McMansion in Richmond’s West End, a resort property in Wintergreen, and (co-owned) two beach properties in Virginia Beach. And had $90,000 in credit card debt. And racked up another $220,000 in debt from private individuals, including Jonnie Williams, Sr., president of Star Scientific, to keep their Virginia Beach properties afloat.

I’m wondering if this sheds light on McDonnell’s approach to government. The hallmark of his transportation policy was a willingness to borrow billions of dollars, and then to leverage that state debt through added toll-backed public-private partnership debt. Was there a connection between his views on personal debt and his views on state debt? Perhaps.

The common denominator, one could argue, was a proclivity to engage in best-case-scenario thinking and an inability or unwillingness to consider that things might go wrong. A more prudent man would not have allowed the state to get in the jam it did by rushing the U.S. 460 upgrade — a fiasco that could expose taxpayers to $300 million or more in losses.

As always, I’ll reserve final judgment until after I hear McDonnell’s defense. But I’m not feeling very charitably inclined toward the man at the moment.

– JAB

Innovative Virginia

Innovative State, 2014, by Aneesh Chopra; used with permission of the publisher, Grove/Atlantic, Inc.

Innovative State, 2014, by Aneesh Chopra; used with permission of the publisher, Grove/Atlantic, Inc.

In his new book, “Innovative State: How New Technologies Can Transform Government,” Aneesh Chopra makes the case for using technology to transform government in the United States. Weary of the old liberal-conservative debate of more government/less government, Chopra espouses effective government. In this book, he comes across as conservative in his frank acknowledgment that government often falls short in the execution of its goals. But the former Virginia Secretary of Technology and former Chief Technology Office for the Obama administration remains steadfastly liberal in his conviction that government can be a force for good.

While I hew to the view that less is more when it comes to government, I concede that certain core functions in American society are best provided by government. I believe that what government chooses to do, it should do well. And, like Chopra, I believe that technology can play a major role in improving government performance. That’s why I’m excited to make available to readers of Bacon’s Rebellion Chapter 3 of his book, which describes his experience as Secretary of Technology during the Kaine administration. I expect that readers will be impressed by Chopra’s approach as a pragmatic problem solver and encouraged how often, away from the spotlight, Virginia politicians are willing to cooperate on a non-partisan basis to get things done.

After resigning his job as CTO for the federal government (you’ll have to buy the book to find out what he did in that post), Chopra made an unsuccessful bid for the Democratic Party nomination as Lieutenant Governor. But he remains active in Virginia, as co-founder of Hunch Analytics, based in Rosslyn, which applies Big Data and Predictive Analytics to solve problems in education, energy and health care, and working behind the scenes with Governor Terry McAuliffe on workforce development and veterans affairs. I expect we’ll be hearing more from Chopra who, at 42, has a long career ahead of him. — JAB

Chopra

Aneesh Chopra

Chapter 3
The Virginia Model

Back in 1999, the Virginia legislature was seeking to make someone accountable for nurturing entirely new industries throughout the state, while making sure the government’s internal use of information technology was effective and efficient. Virginia became the first state in the nation to create a cabinet position for a Secretary of Technology. Three men would fill that role over the next six years, and their work over that time contributed to Governing magazine’s 2005 selection of Virginia as the “Best Managed State.”

In 2006, Tim Kaine, the successor to outgoing Governor Mark Warner, chose me to the the fourth Secretary of Technology. He had a different spin on the position, one in tune with the times. By 2006, the Internet had transformed the way consumers accessed information and conducted commerce. yet, though it had improved some services such as e-filing tax returns and renewing professional licenses, it had not meaningfully transformed the relationship between citizens and their government. Kaine assigned me to prioritize the improvement of that interface. I realized that one of the most important things government can do is remove restrictions that exist for really no good reason. On a visit to Google, for example, I learned two things: one, most people get to government websites through search engines, not by typing in their URLs, or bookmarking them; and second, government, perhaps unintentionally, made it difficult for search engines to index information that the public had the right to know. Within 90 days, we initiated a no-cost collaboration to simplify and standardize the interface between search engines and government websites, making it easier for the public to find what they need. We formed a coalition of four states, two led by Republican governors (Utah, California) and two by Democratic ones (Arizona, Virginia), whereby Google, Yahoo and Ask.com agreed on a standard sitemap protocol that the states agreed to adopt. Those states then assigned their webmasters to implement the new protocol, a task that took about an hour per site. By the launch in April 2007, Virginia had tagged about 80,000 of our own web pages (URLs) for addition to the participating search engines. In the first year of the initiatives, we observed a 40 percent spike in site visitors, at no cost other than the modest incremental staff effort.

One of the promising aspects of that initiative was its bipartisan backing. Before my term even started, and as it progressed, I made a point to reach out to members of the Republican-led legislature. Through those conversations, I became convinced that many in both parties viewed technology, data, and innovation initiatives from a more pragmatic prism, beyond the usual, inflexible left-right division. That was evident when those Republicans invited me, a Democrat, to partner as a nonvoting participant on the Joint Committee of Technology and Science (JCOTS), which organized small working groups that included members of the executive and legislative branches, as well as concerned citizens. More than a dozen bills endorsed by JCOTS passed through the legislature with overwhelming bipartisan support and were signed into law by Governor Kaine, including Republican-sponsored legislation to expand rural broadband access, adopt health IT standards, and permit school boards to purchase open source education resources.

Democrats, while a minority in the legislature, also attempted to put their signature on the smarter government movement, with the endorsement of the executive branch. Consider the way Business One Stop came together. Governor Kaine, wanting to buoy the state’s reputation as business friendly, sought to offer every Virginia entrepreneur a single destination to complete all the forms required to start a new enterprise — a task that otherwise might involved as many as seven state agencies, such as the State Corporation Commission, the Virginia Department of Taxation, and the Virginia Employment Commission. Governor Kaine, inspired by South Carolina’s presentation at a National Governors Association meeting, gave me the assignment of creating something similar.

Upon digging in, our team estimated that implementing the South Carolina model — which not only improved the user experience but also connected with existing systems within each impacted agency — would require an investment of roughly $7 million. That estimate far exceeded our available funds. So I improvised… Continue reading.

Let the Grass Grow Free

Native meadow grass

Native meadow grass

There’s a movement afoot in Henrico County to make it easier to grow grass. Not marijuana. Meadow grass.

Lawns are one of the banes of suburbia. They are biologically sterile, supporting very little wildlife. They require constant maintenance, including applications of fertilizer that washes into the watershed and causes algae blooms in the Chesapeake Bay and its major tributaries. They hold little water during a downpour, contributing to the problem of storm water management. Last but not least, they require mowing, and small, inefficient lawnmower engines contribute disproportionately to air pollution. As a society, we’d be better off without lawns. Just one little problem: Homeowners love them.

If people want to keep their lawns, that’s fine with me. But people who want to convert their lawns to prairie grass should be free to do so. Trouble is, they can’t. Suburban county ordinances require homeowners to cut their grass.

In Henrico County, according to the Times-Dispatch, land within 250 feet of a residential property must be cut to a foot or less in height. But the Board of Supervisors is considering an ordinance that would loosen that restriction to 150 feet, and even 50 feet if a property owner is involved with a bona fide conservation program.

“This is a very positive step that the county is taking,” said Nicole Anderson Ellis, chairwoman of the Henricopolis Soil and Water Conservation District Board. “We had a case where somebody wanted to let their property go natural, and there really wasn’t a mechanism to allow that under the code.”

– JAB

No Silver Lining for the Silver Line?

metro_map

Blue dot indicates chokepoint where the Silver, Orange and Blue lines compete for restricted capacity on the Potomac River metrorail tunnel.

by James A. Bacon

By all accounts the Silver Line extension serving Tysons, Virginia’s largest commercial district, has enjoyed a successful start. Ridership is strong and in line with expectations. But a new issue arises. How much of the Silver Line’s traffic is cannibalized from the Orange and Blue lines?

The problem is that the three Metro lines must squeeze through the same Potomac River bridge to enter Washington, D.C. That bridge has a finite capacity of 26 trains per hour.  Trains assigned to the Silver Line are trains that cannot run on the orange and blue lines.

Is this a problem? Del. James M. LeMunyon, R-Oak Hill, worries that redistributing Metro riders between different lines will do little to alleviate regional traffic congestion. He broached the issue two days ago in a letter to Richard Saarles, CEO of the Washington Metropolitan Area Transit Authority (WMATA).

The primary problem created by the Silver Line is the fact that it operates by reducing peak period service on the Orange Line by 42 percent, from 19 to 11 trains per hour. Likewise, Blue Line peak service has been reduced from seven to five trains per hour. These ten former Orange and Blue Line trains now comprise the Silver Line during peak periods, for a net increase of zero Metrorail peak period trains on those lines. … The Silver Line does not represent increased train service, but only cannibalizes previous Metrorail service.

LeMunyon worries what will happen to the thousands of commuters who drive or take the bus from points west to Vienna, where they board the Orange Line. For many commuters, he maintains, switching to stations on the Silver Line will not be a viable option. It’s conceivable that Metro rail, after the expenditure of roughly $3 billion to build the Silver Line, actually could lose passengers. Former Orange Line commuters could switch to Interstate 66, making that freeway even more congested than it already is. “For these people,” he writes, “the Silver Line has no silver lining.”

In concluding the letter, LeMunyon said he hoped that WMATA would adjust the frequency of trains on each line to match customer demand, and if it made sense to move Silver Line trains back to the Orange Line that WMATA would do so.

Bacon’s bottom line: It is inconceivable to me that transportation planners did not take all of these factors into account when calculating the benefits of the Silver Line. If Orange or Blue Line trains are under-utilized at present, shifting some to a Silver Line running at full capacity actually could increase ridership. But, hey, you never know. It will be interesting to watch traffic counts at Silver, Orange and Blue line Metro stations and along Interstate 66 to see how commuters adapt.

I have to say, if it turns out that the expenditure of nearly $3 billion does not result in significant additional Metro ridership — one of the project’s big selling points — don’t be surprised to see lynch mobs forming.

Wild Ride

uber_poolby James A. Bacon

Last week Governor Terry McAuliffe gave the Uber and Lyft ride-sharing services provisional permission to operate in Virginia as long as they comply with minimal standards for hiring drivers. Uber entered the Richmond marketplace around the same time, putting six cars on the road. Rates are competitive with those of local taxicabs but Uber offers the advantage of more timely pick-ups.

While taxicab companies are a political nuisance, using the regulatory apparatus in state after to state to block Uber from the market, the company’s toughest competitor is Lyft, according to a Wall Street Journal piece describing the relationship between the two San Francisco companies as “Tech’s Fiercest Rivalry.” Competition in the business of shared ridership, which includes other start-ups such as Sidecar, is intense. Companies are testing new innovations every day. Some ideas catch on, others fall by the wayside, but the business is evolving rapidly.

The latest permutation, rolled out by the two companies independently on the very same day, is carpooling. Lyft Line and Uber Pool let passengers ride with strangers and split the bill. While the innovation might reduce revenues temporarily, both companies are betting that they can more than offset the loss by growing the size of the shared-rider market.

This is entirely consistent with what I have long predicted: Shared ridership companies will continue to push their innovations “down market” — to less affluent customers — in order to build a larger customer base. Uber started as a company that provided luxury car rides at premium prices. Then it introduced UberX, which provides taxicab-comparable rides. Now it is moving into carpooling. A future next step — and if Uber doesn’t do it, someone else will — will be to introduce a jitney-like van service that provides rides along high-traffic transportation corridors at rates and schedules that are more than competitive with buses.

Hat’s off to the McAuliffe administration for fostering transportation innovation in Virginia rather than stifling it. Stick to your guns. If you think the taxicab companies can raise political hell, just wait until municipal transit companies start complaining that Uber or Uber-like companies are “skimming the cream” of their customer base. This ride ain’t over by a long shot.