• Fairfax Ties the Big Boxes in Knots

    The Fairfax County Board of Supervisors has enacted regulations that could curtail the construction of big box stores. Stand-alone stores of 80,000 square feet or larger now must obtain board approval. Mega-stores approved as part of a mall or a larger development are exempt. (Read the story in the Connection Newspapers.)

    Bill Lecos, president of the Fairfax County Chamber of Commerce, opposed the new regs. The uncertainty of gaining approval could scare off potential new businesses, particularly in shopping centers that need revitalization. That’s a valid point, I think, but not a compelling one. There are countervailing considerations.

    As foes of the big boxes rightly point out, Wal-Marts, Targets and other giganzo stores draw from vast market areas. People drive greater distances and place more strain on the transportation infrastructure when patronizing the big boxes than when patronizing neighborhood stores near their homes. Now, there’s nothing wrong with offering lower prices made possible by economies of scale — unless you expect someone else to pay the costs imposed by the traffic congestion caused by those economies of scale.

    That’s the problem. Some of the efficiencies and “cost savings” achieved by the big boxes are illusory. Rather than creating genuine efficiencies, the big boxes are externalizing their costs to motorists at large (or to taxpayers at large, if they’re expected to upgrade the transportation infrastructure).

    Every big box store should be required to submit a traffic impact analysis (maybe they are in Fairfax County, and I just don’t know about it). If the local road network is overloaded (which seems to be the case throughout most of the county), I find it entirely reasonable for Fairfax supervisors to require some kind of proffer, offset or design change as compensation for the costs imposed upon the public.

    (Photo Credit of Wal-Mart in Madison Heights outside Lynchburg: Wikipedia.)

  • Kaine to State Agencies: Prepare for Budget Cuts

    Responding to warnings that the state budget could experience a $300 million revenue shortfall this year, Gov. Timothy M. Kaine has asked state agency heads to look for savings in the current budget that can be set aside to soften the impact of potential cuts in next year’s budget. (Read Tim Craig’s story in the Washington Post.)

    Del. Vincent F. Callahan Jr., R-Fairfax, chairman of the House Finance Committee, said the projected shortfall is “not a big deal” in a biennial budget of $70 billion. “The governor doesn’t really have to cut anything; he can juggle stuff around and delay spending.”

    Callahan was referring to this year’s spending. Presumably, Kaine wrote his memo to agency heads in anticipation of possible additional shortfalls next year. A slowdown in revenue growth next year, compounded on top of one this year, could generate the kind of numbers that could become a big deal. Kaine is wise to prepare for the possibility.

    Meanwhile, the Axis of Taxes is using the temporary dip in revenues to argue for… you guessed it… more taxes. As Craig summarizes the sentiment: “Even so, the forecast of lean budget times has become fodder for foes of the recently approved transportation plan. They argue that the plan is fiscally irresponsible and will not do enough to relieve traffic congestion because it does not include a statewide tax increase.”

    Senate Minority Leader Richard L. Saslaw, D-Fairfax, finds the prospects so alarming that he’s reverting to Harry F. Byrd mode, advocating pay-as-you go for road funding. The problem with the newly enacted road funding plan, he said, is “you go sell those bonds, and those bonds have to be repaid. You can’t say, I am not going to fund the bonds this year because I am short of revenue.”

    I don’t recall Saslaw speaking against issuing bonds earlier in the decade to fund the expansion of the state park system and a building program for higher education. Inconsistent, you say? The only thing inconsistent about Saslaw is the principles he evokes to justify his position of the day. He is utterly consistent in his quest to expand state spending. If issuing bonds to pay for parks expands state spending, bonds are wonderful. If issuing bonds for roads undercuts the case for raising taxes and spending even more, bonds are bad.

    Fortunately, economic growth is likely to pick up speed next year, and Gov. Kaine’s worst revenue fears will not be realized… in which case all this talk will be forgotten.


  • Good Vibes for Crystal City ReDevelopment

    The Crystal City area of Arlington can support significant increases in density, Arlington’s director of economic development has concluded. The employment center, located near the Pentagon, has 20.1 million square feet of leased office and residential space. But, despite the expected loss of 3.2 million square feet resulting from recommendations by the Base Realignment and Closure Commission, demand could reach 33.9 million square feet within the next three or four decades, Terry Holzheimer told the Crystal City Task Force Tuesday. (See the coverage in Examiner.com.)

    Not only will the demand for office space increase — confirming Ed Risse’s assertion that job creation will remain center-weighted in the Washington New Urban region — but preliminary analysis of traffic flows indicate that there is sufficient transportation capacity to accommodate the growth.

    Especially encouraging is Holzheimer’s finding that demand for residential units โ€œis and will remain strong and grow.โ€ Arlington County has done a magnificent job of promoting transportation-efficient growth along the Rosslyn-Ballston corridor, but the massive Pentagon/Crystal City employment center dwarfs the supply of residential housing available close by. The imbalance of jobs/housing is a major contributor to region-wide traffic congestion because so many employees are forced to live in outlying counties and commute long distances into work.

    It appears that Holzheimer acknowledges the critical importance of planning for a much larger residential component in Crystal City than exists now. Let us hope that other county officials do, too. The re-development of Crystal City as a mixed-use community at higher densities could prove extremely positive for Northern Virginia as a whole.


  • The Green Energy Boom Hits Hampton Roads — But What’s All This About Jatropha Nuts?

    There is huge business news brewing in Hampton Roads that has yet to generate much attention outside the region: Two separate ventures are planning to build gigantic biodiesel facilities that would require capital investment exceeding $1 billion and would generate more than 600 million gallons a year of ethanol and biodiesel fuel.

    Bio Energy Virginia, a Chesterfield-based, Swiss-owned company, first anounced its intention to build a $500 million plant in the Elizabeth River in Chesapeake. The plant would make 235 million gallons yearly of ethanol, and transform soy oil into 75 million gallons per year of biodiesel fuel. (See the May 19, 2007, Virginian-Pilot article.)

    Days later came the news that Virginia Point Biodiesel, a subsidiary of a California company, would spend $532 to erect a facility, also on the Elizabeth River in Chesapeake. The plant would be capable of converting jatropha plant oil into 320 million gallons of biodiesel fuel. (See the May 22, 2007, Virginian-Pilot article.)

    Both facilities will require state air permits as well as local government approval. Chesapeake officials relish the prospect of a $1 billion injection to the city’s tax base, but they’re worried about odors emanating from the plants, the impact of hundreds of trucks on city streets, and emergency access for fire trucks. The companies insist that the odors are containable, and tax revenues from the two plants, worth millions of dollars annually to the city, should be more than adequate to fund any infrastructure improvements. (One potential complication: Some of the infrastructure improvements may have to be made in the neighboring City of Portsmouth, which, in Virginia’s winner-take-all tax system, would not reap any of the tax windfall.)

    The green energy boom is coming to Virginia. We’re helping pay for it at the gasoline pump when buying fuel mixed with ethanol, so it’s good to see that Midwestern corn farmers aren’t capturing all of the economic benefits.

    Just one question: What’s this business about using the jatropha plant as a biodiesel feedstock? According to Wikipedia, jatropha is found mainly in tropical regions. Oil from the jatropha nut is used extensively in India to make biodiesel fuel. Unlike soy beans, which Virginia is well suited to grow, I doubt there’s much opportunity for Virginia farmers to cultivate the jatropha plant.
    (Photo credit for jatropha plant: Photogallery of District Kanpur Dehat.)

  • A Mighty Wind (Farm) off the Delaware Coast

    Last November I wrote a column, “Wind Shear,” that outlined the potential for building massive wind farms off the Virginia coast. The Mid-Atlantic coast of the United States, it seems, is an ideal location for massive arrays of electricity-generating windmills. In theory, a wind farm with a footprint the size of Virginia Beach — about three percent of Virginia’s continental shelf — could supply the equivalent of 20 percent of the Commonwealth’s current electricity needs.

    It appears, however, that Delaware is getting the jump on Virginia when it comes to developing this resource. Bluewater Wind, of New Jersey, has won preliminary approval from a panel of state officials to build a wind farm, although the company might have to scale down its original proposal for 200 of the 250-foot-tall windmills.

    Reports the Washington Post: “At a meeting yesterday in Dover, the state capital, leaders from four Delaware agencies ordered an electric utility, Delmarva Power, to negotiate with the wind farm’s developer. … Phil Cherry, who represented the state environmental agency at the meeting, said the agency also expressed a preference for a site off Rehoboth Beach.”

    Advocates argued that the windmills, stationed several miles offshore, would generate clean electricity — no pollution, no greenhouse gases — and appear to beach bathers as toothpick-thin specks on the horizon. The article did not elucidate the cost of the wind-powered electricity compared to conventional technologies. It does not bode well for the economics of the project that Delmarva Power may be required to maintain a back-up plant fired by fossil fuels to supply electricity when the wind wasn’t blowing.

    Bluewater is the first company to propose building a windfarm off the Atlantic Coast. If the Delaware project demonstrates the economic viability of wind power, it shouldn’t be long before Virginia sees a similar proposal.


  • Register for the Blogs United Conference

    You can now register for the Blogs United conference scheduled for July 13-15 in Newport News. Click here to register. Sign up now to get the $25 early-bird special.


  • Virginia Joins the Climate Registry

    Joining 33 other states in a national effort to track greenhouse gas emissions by large industries, Gov. Timothy M. Kaine has signed onto The Climate Registry. The goal is to replace the patchwork reporting system with standardized and verified measurements of carbon dioxide, methane and nitrous oxide that can inform the debate over global climate change.

    Writes Christina Nuckols with the Virginian-Pilot:

    Rob Jones, executive director of the Virginia Climate Initiative, said the uniform reporting system could move the country closer to a system that combines emission caps with market-based regulations that give industries some flexibility in achieving pollution reductions.

    Industry leaders say the registry could benefit them by simplifying what is now a patchwork of confusing regulations in different states. “We’re already reporting all of this data anyway,” said David Heacock, Dominion’s senior vice president of fossil and hydro. “We’re pleased to see Virginia is coordinating with other states to provide standardized reporting requirements.”

    This sounds like a positive development. The dynamics of global climate change and the extent to which climate is influenced by human agency are still imperfectly understood. Both sides of the Global Warming debate can agree, however, that public policy should be based upon sound science and sound data. The cost of setting up the program is minimal: between $20,000 and $30,000. This looks like a no brainer.


  • Traffic Impact Regs: Dazed and Confused?

    A centerpiece of the Kaine administration’s transportation policy is a 2006 law that requires major rezoning projects in Virginia to undergo traffic impact analysis. The goal is to ensure that local government officials understand the level of traffic that proposed developments will dump onto local and regional road networks before granting approval.

    The idea is a simple one, but, as always, the execution is easier than it looks. Assistant Secretary of Transportation Jimmy Carr oversaw the drafting of regulations late last year, and now the Virginia Department of Transportation is holding a series of workshops around the state to make sure all the stakeholders — VDOT staff, local government officials, land developers — all understand the regulations. So far, so good.

    But problems are emerging, I hear from one of my correspondents, who attended a VDOT session in Chester yesterday.

    On the positive side, he said, the session was well attended, and the presentation covered all major topics. People are encouraged by VDOT’s proactive outreach. And attendees received free highlighters and calculators!

    On the problematic side, my source said, many questions went unanswered. For example, who is covered by the “527 regulations,” as the regulations are called? Attendees could not get clear answers. Concludes my correspondent: “Following this latest training seminar, consultants are crazy if they don’t assume every potential development will meet the 527 regs.”

    Intructors frequently brushed aside hypothetical questions with a we-don’t-think-we’ll-see-that-situation-very-often, so-we’ll-just-deal-with-that-on-a-case-by-case basis response. My source’s concern: “Hear me now and believe me later, EVERY case will become a ‘case-by-case basis’”.

    And a final point: Mixed use developments are becoming increasingly prevalent in Virginia, driven by the conviction that they generate far less traffic on critical collector roads and arteries than traditional development does. Says my source: “The regs — though recently updated — include outdated methodologies that will particularly impact mixed use.” He’s concerned that the impact studies will overstate the traffic impact of many mixed use projects, thus discourage use of a beneficial land use strategy.

    I have no idea whether this kind of feedback filters back up to senior Kaine administration officials, or whether the top dogs get told everything is just hunky dory. But the Kainiacs cannot afford to see this signature initiative flounder. Someone needs to ride herd on the training-and-outreach process to make sure the initiative doesn’t plunge the development sector into a state of confusion.


  • Virginia’s Working Waterways

    Lyle Solla-Yates, Bacon’s Rebellion’s summer intern, has filed the following report:

    A vital piece of Virginiaโ€™s heritage — the lively commercial fishing and boating community — is threatened by coastal development, environmental stress and foreign imports. Last week, representatives of government, nonprofit, and industry representatives met in Norfolk to discuss threats to working waterways across the nation and how to respond.

    Commercial and recreational boating has suffered a series of setbacks in the last century. Environmental problems from runoff pollution, destruction of wetlands, and over fishing have greatly reduced potential catches in the Chesapeake Bay and the Atlantic Ocean. At the same time, imports of fish from foreign countries that subsidize their fishing fleets have driven seafood prices down. High end condominiums and other development have crowded out active waterfronts in favor of private coastal access for those who can afford it.

    The net result has been lost jobs, greater dependence upon foreigners for our food supply, an unsustainable trade imbalance, and a loss of cultural and historic heritage.

    Government and civic leaders discussed how to reinvigorate waterfronts in Virginia and across the country. High property taxes and burdensome environmental regulations were a consistent target, creating calls for tax and regulatory reform. Some called for moratoria on coastal development. Communities could use the time to update master plans emphasizing preservation of working waterfronts. Seafood festivals and boating tours were suggested as effective ways to get people out enjoying the waterfront, having a good time and learning the issues threatening our waterways.

    The Working Waterways & Waterfronts 2007 Symposium website can be found here: http://www.wateraccess2007.com. Information for this article is drawn from their final report, which I assisted in collecting.


  • Another Budget Warning, Louder This Time

    The state of Virginia is heading for a shortfall of between $200 million and $300 million in budgeted revenues this fiscal year. With only a month and a half in the year left to go, the Kaine administration will have to move quickly to decide where to pare spending.

    Del. Vincent F. Callahan Jr., R-Fairfax, suggested that the administration could cover the shortfall by postponing some $1 billion worth of capital projects in the budget, according to Michael Hardy with the Times-Dispatch.

    With the prospect that this year’s shortfall could spill into next year, Del. S. Chris Jones, R-Suffolk, sounded an alarm about the Governor’s proposal to implement universal preschool, a program that could cost $300 million a year when fully implemented. Said Jones: “I hope [Kaine] will take the pre-kindergarten program off the table.”


  • Salvaging the Motor Mile

    One of the great unsung stories of The Comprehensive Transportation Funding and Reform Act of 2007 is how it will give transportation planners more tools to clean up highways clogged with too many intersections, stoplights and retail access points. This aspect of the landmark legislation got zero attention from the Mainstream Media, but it will affect the design and functioning of critical pieces of our communities.

    In the first of two articles, “Fighting Corridor Torpor,” Peter Galuszka outlines the thrust of the legislation: reducing the number of intersections and access points to major highways, with the goal of allowing traffic to move more freely. The state is writing the detailed regulations, which will go into effect in early 2008.

    In a second article, “Reinventing the Motor Mile,” Bob Burke takes a close-up look at U.S. 29 north of Charlottesville, where the community has taken matters into its own hands. Planners have written a draft master plan, Places29, that envisions recreating a limited-access highway through the 29 corridor with a parallel network of parallel boulevards, avenues and streets providing local access to neighborhoods and shopping centers. Development will be characterized by greater density, mixed uses and greater attention to pedestrians, bicycles and mass transit.

    Some of the worst traffic congestion in Virginia is concentrated in these retail corridors. Between the powers enacted by the General Assembly and the innovative vision of Places29, there’s no excuse for communities across Virginia not to get cracking on cleaning up their congested corridors


  • The Axman Takes on Public Schools

    Andrea Hopkins with the Bristol Herald-Courier profiles Del. Chris Saxman, R-Staunton, and his Quixotic crusade to promote school choice in Virginia’s public school system. He has submitted school-choice legislation every year for the past four years, and each time, he’s gone down to defeat.

    But this year, the Axman got closer than ever before. Writes Hopkins: “A bill that would allow companies and individuals to receive a tax credit for donating to scholarship funds that could be used in public or private schools โ€“ passed the House on a 56-43 vote. The Senate let it die in committee.”

    Virginia offers less school choice than almost any state in the nation. Not only do we refuse to provide vouchers or tax credits, reactionary educators even discourage charter schools within the public school system. Foes fear that any kind of competition would destroy the public school system. If they’re right… if the public school system is so grotesquely inadequate that it would collapse under the slightest competitive pressure… then maybe it should collapse.

    It’s the 21st century, ladies and gentlemen. We’re still laboring under an educational system invented for the 19th century. That system is failing an increasing number of Virginia children at an increasing cost to society. If anything, Saxman isn’t going far enough. Shifting a few thousand students from public schools to private barely scratches the surface of what needs to be done. We must tear down the old system and rebuild a new one based on entirely new principles.


  • Privatize the Ports?

    The Virginia Port Authority has a new executive director, and judging by a recent editorial in the Virginian Pilot, he thinks outside the box. When Jerry Bridges surveys the port’s strategic options, he says that privatization should be considered.

    The ports have built enormous economic value in the three decades since the Commonwealth of Virginia consolidated them, rescuing them from the mismanagement of separate municipal authorities. Under the leadership of Bobby Bray, the VPA has risen into the ranks of the largest and fastest-growing ports in the United States. VPA officials guesstimate that private bidders might pay as much as $5 billion for the facilities. As the Pilot points out: “New bidders, like investment banks and pension funds, have been pouring billions into an industry where most investment used to come from large companies already involved in the industry, a much smaller, more stingy pool.”

    The Pilot raises some good questions. If the state were to privatize the ports, should it try to maximize the price? Or should it consider other goals, such as environmental protection or good labor relations? What would be done with the money — and who would decide?

    Although the ports are a “state” entity, I believe that the proceeds from privatization should be used for the benefit of Hampton Roads. The ports are, after all, one of the region’s most important assets. The proceeds of privatization should be set aside in a mega-community foundation, similar to foundations in Martinsville, Danville and Petersburg endowed by the sale of their community hospitals. Revenues from a Hampton Roads foundation — potentially some $200 million a year — could be applied to regional priorities.

    One such priority is building a “third crossing” across the James River, deemed critical to accommodate surging truck traffic from the booming port terminals and also for evacuating the population in the event of a major hurricane. It would be poetic justice if a foundation endowed through the privatization of the ports used a portion of its income to support bonds that paid for building the third crossing.

    The state doesn’t have the money to pay for the project, and the funds raised through a cluster of regional taxes enabled by the General Assembly won’t pay for it either. Tolls would cover only a fraction of the cost. Privatizing the ports may be a way to cut the Gordion knot and get the project funded.


  • Desperate Measures

    Charlottesville area officials are studying the option of eliminating fares for the municipal bus system in the hopes of stimulating ridership, according to the Daily Progress. A recent study by the Washington state transportation system said that a free system could increase ridership by 30 percent. On the other hand, Charlottesville and Albemarle County would lose $485,000 in revenue, or 10 percent of the operating budget for the Charlottesville Transit Service.

    Said David Slutzky, a member of the Albemarle Board of Supervisors and chairman of the Metropolitan Planning Organization which is considering the idea: โ€œWe donโ€™t make people pay to take roads here, so why should they pay to get off the roads?โ€

    My gut reaction to this idea is, are they crazy? According to Bacon’s principles of transportation economics, every mode of transportation should pay its own way. People who drive on roads pay for the vast majority of the cost to build and maintain those roads, mainly through tolls and state and federal gasoline taxes. The object of public policy should be to get them to pay 100 percent of the cost — not as we have done in Virginia this past year to sever the connection between driving and road funding.

    Likewise, transit systems should pay their own way as well. If the Charlottesville bus system collects only 10 percent of the revenue it takes to operate, what does that tell us about the bus system? Either that the costs are scandalously high, operations are scandalously inefficient, or demand is scandalously low.

    According to the Charlottesville Transit Service website, the system provided a little more than one million passenger trips last year. That translates into about $4.60 per passenger trip. I’m no expert in transit economics, but that doesn’t strike me as excessively high. The unwillingness of the population to pay a nominal fare, I suspect, stems from a lack of demand for the service. The transit service, I would hypothesize, does not provide the flexibility of routes and times, or the reliability, that people require.

    Flipping the problem around, though, I can see what Slutzky & Company are driving at. That one million passengers translates into roughly 2,750 passengers per day, which translates into 2,750 car trips eliminated. The bus service does get cars off the road.

    Does the elimination of those trips mitigate enough congestion to warrant the expenditure of more than $4 million a year in public dollars? Let’s do some calculations. As of the 2000 Census, there were about 50,000 households in Charlottesville and Albemarle County. The average household generates about 10 trips per day, implying 500,000 trips. Thus, the transit system eliminates one out of roughly 180 trips.

    Would the expenditure of nearly $500,000 dollars a year for fare-free bus travel, resulting in the elimination of roughly 800 more car trips per day, be a good investment? I can’t say because I don’t know what the alternative investments are, nor how much congestion they might relieve. But that’s one question the Charlottesville MPO should ask itself rather than studying the free-fare option in isolation.

    An even better question the MPO should ask is this: Instead of operating a transit system at a cost to taxpayers of $4 million to $5 million a year, should the region shut down the transit service and allow free market competition for shared ridership services?


  • Whirling Blades of Death

    Rick Webb, co-author of the Virginia Wind website and foe of wind farms along Allegheny Mountain ridge tops, summarizes the costs and benefits of wind power based on the findings of the latest National Academy of Sciences report.

    Installed wind generating capacity will amount to between 19 to 72 GW of installed onshore wind generation capacity by 2020. That will equal two percent to seven percent of total U.S. installed generation capacity, but, due to intermittency of wind, only 1.2 percent to 4.5 percent of actual U.S. generation. That wind power development will offset CO2 emissions by only 1.2 percent to 4.5 percent.

    For those benefits, in just the PJM Interconnection Queue, which includes Virginia, these Cusinards on Stilts would slaughter anywhere between 10,372 and 44,999 birds per year, and 58,997 to 110,665 bats per year.

    Tough trade-off. Sounds like a lot of dead birds and bats. Trouble is… compared to what? How many birds and bats are out there? How does this compare to other sources of bird/bat mortality, such as habitat loss, disease and… cats. Yes, house cats are responsible for more carnage among our feathery friends than kitty lovers would care to admit.

    Here’s my humble suggestion: Offset the mortality to birds (if not bats) by culling Virginia’s population of felines. As a bonus, think of all the money people would save on cat food, not to mention the reduction in landfill mass to hold untold tons of kitty litter.