Silicon Valley REALTORS® filled the room eager to listen to what Mark Simon, senior advisor for Caltrain/SamTrans, had to say about the Caltrain electrification project, high-speed rail and grade separation. REALTORS® at the recent district meeting of the Silicon Valley Association of REALTORS® (SILVAR) said they have received questions from clients who want to know not only about how these projects would affect their pocketbooks, but more importantly, how properties and property values along the transportation corridors might be affected.
Not everyone knows that Caltrain does not have its own tax base. Public transportation is subsidized and it is a scramble every year to get enough money to fund it, said Simon.
Simon said Caltrain is a huge asset to the region and a positive alternative to the car. In fact, Caltrain is regarded the fourth best transportation system in the country.
"Because of Caltrain, 65,000 people are not on the roads driving," said Simon.
The Caltrain spokesperson said ridership has increased since Caltrain started its Baby Bullet service. The average weekday ridership for 2016 is 62,416, a 7.2 percent increase from 2015. Since 2010, ridership has increased by 83 percent. The average trip length is 27 miles.
Property within the Caltrain system or walking distance to a station has increased in value, though development along those corridors is still met with resistance. Simon mentioned there have been lost opportunities in some cities because of pushback against development.
"It comes down to how much can we plan better, how much development can we tolerate?" Simon asked out loud.
Simon indicated the same resistance is encountered by high-speed rail because people feel the system would change the very nature of their community. Caltrain has become the vehicle for high-speed rail since both systems will be sharing the same tracks.
The objective of both projects is to alleviate traffic congestion and get people off the roads, explained Simon. He noted traffic is bound to get worse regardless, as companies like Facebook anticipate 20,000 employees working in their campus. Travel to major employment centers has taken a larger volume of Caltrain's ridership.
Caltrain electrification is expected to boost times and double ridership to about 110,000, with fewer time gaps between trains. Trains will be able to stop and start faster and more routes can be added.
Electrification from San Francisco to San Jose is scheduled for completion by late 2020 or early 2021. By 2025, it is anticipated that Caltrain will achieve 100 percent electrification all the way to Gilroy.
REALTORS® raised questions about the controversial issue of grade separation, the work it entails and how it would change the landscape. Grade separation will be necessary if the high-speed rail project pushes through.
Grade separation improves safety for drivers and pedestrians, and reduces traffic congestion, said Simon. He urged REALTORS® to check out the grade separation at the San Bruno station, which he said was "nicely done" and cost about $160 million.
The Santa Clara Valley Transportation Authority recently voted to put a 30-year half-cent sales tax measure on the November ballot. If passed by two-thirds of voters, the tax would raise $6.5 billion for transportation improvements - about 24 percent ($1.5 billion) to fund BART's extension to San Jose; 16 percent ($1 billion) for Caltrain improvements, of which $700 million would go toward safety improvements/grade separations. Forty-three percent ($2.7 billion) would fund street maintenance and pothole repair and the improvement of highway interchanges and county expressways.
The rest of the money would go to transit operations, transportation improvements in the West Valley/North County Corridor, and bike/pedestrian facilities. High-speed rail will not be funded by the proposed tax measure.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.