The Sun Corridor Seminar: PAF 591, Spring 2006 Final Class Presentation Instructors: Robert Lang, Virginia Tech John Hall, ASU What’s in This Talk? Review of Megapolitan Area Geography Arizona Sun Corridor Geography The Sun Corridor’s Ten Urban Realms Central Class Findings What’s in This Talk? Next Steps in the Sun Corridor Project Megas In the News Arizona Republic March 2006 The Reality is That They Have Already Statistically Merged Business 2.0 November 2005 Megapolitan Area Centerfold Original 2005 Megapolitan Geography 2006 Metropolitan Hierarchy Types Description Examples Metropolitan Current definition of the Census Bureau Pittsburgh, Boise Metroplex Two or more metropolitan areas that share overlapping suburbs but the main principal cities do not touch Dallas/Ft. Worth, Washington/ Baltimore Corridor Megapolitan Two or more metropolitan areas with anchor principal cities between 75 and 150 miles apart that form an extended linear urban area along an Interstate Arizona Sun Corridor (Phoenix/Tucson), SanSac (San Francisco/ Sacramento) Galactic Megapolitan Three or more metropolitan areas with anchor principal cities over 150 miles apart that form an urban web over a broad area that is laced with Interstates Piedmont, Great Lakes Crescent Megaplex Two megapolitan areas that are proximate and occupy common cultural and physical environments and maintain dense business linkages Megalopolis and Great Lakes Crescent, Sun Corridor and SoCal Evolving 20th Century Metropolitan Form 21st Century Corridor Megapolitan Form Urban Realms Arizona Sun Corridor Arizona Sun Corridor’s Types of Urban Realms Types Description Original core of metropolitan development. Cores are dense and often built out. Realms Central Valley Tucson Valley Favored Quarter The most affluent realm containing upscale housing, retail, and office space. Northeast Valley Foothills Maturing Suburbs Rapidly developing suburbs with East Valley mature older sections and West Valley booming edges. Emerging Exurbs The most scattered and detached urban development in the region. Exurbs contain the most affordable housing. Urban Core Mid Corridor Northwest Valley Santa Cruz Valley San Pedro Valley Arizona 2000 Population Center for the Future of Arizona 2000 Arizona 2000 Population Center for the Future of Arizona 2050 Housing and Equity Housing/Equity Issues in the Sun Corridor Realms Housing Market Values by Realm Housing Appreciation Rates by Realm Housing Burden and Overcrowding by Realm Comparisons between Phoenix and Tucson Housing Markets – Simultaneity? Comparison between Phoenix & Tucson Housing Markets Changing demographics will change the form of housing. The Sun Corridor: 10-20 % Average Annualized Rate of Domestic Net Migration – Where Will These People Live? Source: “Domestic Net Migration in the United States: 2000-2004”, U.S. Census Bureau, 4/20/06 (www.census.gov/prod/2006pubs/p25-1135.pdf) The Sun Corridor is a Destination for People who are Relocating Source: “Domestic Net Migration in the United States: 2000-2004”, U.S. Census Bureau, 4/20/06 (www.census.gov/prod/2006pubs/p25-1135.pdf) “The West is The Best” - Jim Morrison, The End, 1967 Home Price Appreciation in Selected Metros LA Las Vegas Phoenix Tucson Austin 2000 2001 2002 2003 2004 2005 Source: “Economic Outlook: 2006-2007”, Eller College of Management, University of Arizona, 12/9/05 Estimated Median Market Value $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Northwest West Valley Valley Central Valley Northeast East Valley Valley Mid Corridor Foothills Tucson Valley Santa Cruz San Pedro Valley Valley Source: www.zillow.com Housing Appreciation 400% 350% 300% 250% 200% 150% 100% 50% 0% Northwest Valley West Valley Central Valley Northeast Valley East Valley 1 Year Mid Corridor 5 Years Foothills Tucson Valley Santa Cruz Valley San Pedro Valley 10 Years Source: www.zillow.com The Sun Corridor had 3 out of the Top 20 Metropolitan Statistical Areas and Divisions with Highest Rates of House Price Appreciation Percent Change in House Prices with MSA Rankings (4th Quarter 2005 House Price Index) (Period Ended December 31, 2005) MSA Phoenix-Mesa-Scottsdale Prescott Tucson Ranking 1 Yr. Qtr. 5 Yr. 1 39.6 7 7.77 93.02 5 31.8 9 6.93 86.72 15 30.0 2 7.00 81.93 Source: “Housing Price Appreciation Continues At Robust Pace”, Office of Federal Housing Enterprise Oversight (OFHEO), 3/1/06 Housing Burden 80% 70% 60% 50% 40% 30% 20% 10% 0% Northwest Valley West Valley Central Valley Northeast Valley East Valley Cost Burden Mid Corridor Foothills Tucson Valley Santa Cruz Valley San Pedro Valley Severe Cost Burden Source: www.dataplace.org Overcrowded Housing 16% 14% 12% 10% 8% 6% 4% 2% 0% Northwest Valley West Valley Central Valley Northeast Valley East Valley Mid Corridor Foothills Tucson Valley Santa Cruz Valley San Pedro Valley Source: www.dataplace.org Phoenix and Tucson both outpace comparison cities 2005 Annual Appreciation 60% 50% 40% 30% 20% 10% 0% San Diego Los Angeles Las Vegas Phoenix Tucson Albuquerque Denver Dallas Austin Source: “Economic Outlook: 2006-2007”, Eller College of Management, University of Arizona, 12/9/05 Phoenix and Tucson both outpace comparison cities 5 Year Cumulative Appreciation 140% 120% 100% 80% 60% 40% 20% 0% San Diego Los Angeles Las Vegas Phoenix Tucson Albuquerque Denver Dallas Austin Source: “Economic Outlook: 2006-2007”, Eller College of Management, University of Arizona, 12/9/05 Phoenix and Tucson Comparison 50 Average Price, Homes Sold on MLS 40 Phoenix 30 Tucson 20 10 0 1999 2000 2001 2002 2003 2004 2005 2006 Percent Change vs. Year Ago Source: “Economic Outlook: 2006-2007”, Eller College of Management, University of Arizona, 12/9/05 Golf Links to Social Links: The Impact of the Emerging Latino Demographic Median age of White population in Arizona: 40 Median Latino population: 24 – These are the home buyers of the next 30 years. Survey data indicates different housing preferences for this market. – Inclusion of elderly family members in household. – Access to public transportation and nearby shopping a priority – ‘Country-club lifestyle’ not as attractive – Less resistance to attached housing The emergence of Latino home buyers will change the urban form of the Sun Corridor. Education Education in the Sun Corridor How do the Sun Corridor’s K-12 and higher education systems prepare students for the higher level, often high-tech jobs of the future? “Living on the Kindness of Strangers” • Discrepancy between those who are transplants to the Sun Corridor and those who are educated in the Sun Corridor • The percentage of those over 25 with a bachelor’s degree is above the national average • The percentage of those over 25 with a high school diploma is at the national average English Language Learners (ELL) Spanish is the primary home language of 20% of K-12 students in the Sun Corridor (Nat. Average 10%) Proposition 203 ended most Bilingual Education programs and replaced them with Structured English Immersion (SEI) programs Higher Education in the Sun Corridor In the 2006 U.S. News and World report College Rankings, the Sun Corridor had only one University in the top 100 (University of Arizonatied for 97th) Every other megapolitan region has at least one university ranked higher than the U of A Peninsula megapolitan is the next lowest with the University of Miami, tied for 55th Community Colleges Sun Corridor is a national leader The Maricopa County Community System is the largest in the nation (over 250,000 students) Community colleges serve a preparation function for four-year colleges and engage in job training Leading Realms in Higher Education State UniversitiesMain or Branch Campuses Other Educational Institutions of Note Central Valley ASU West, ASU Downtown Center Several community colleges Thunderbird School of Management East Valley Main Campus ASU ASU East Several community colleges Tucson Valley University of Arizona Pima Community College Exurban Realms State UniversitiesMain or Branch campuses Other Institutions of Note Northwest Valley None Prescott College Yavapai College Embry-Riddle Aeronautical University Santa Cruz Valley None None San Pedro Valley None Cochise College Very Underserved Realms State UniversitiesMain or Branch Campuses Other Institutions of Note West Valley None One community college Northeast Valley None One community college Mid-Corridor None One community college Foothills None None Economy Topics Composition of the Economy Realm Share of Development Employment Centers Economic Composition Leading Industries – Construction/Real Estate – Consumer Services Secondary Industries – Aerospace – Producer Services • F.I.RE • Law, Marketing – High-Tech/Bio – Military – Entrepreneurial Opportunities – Baby Boomer Bio – Western Product Gateway – Next Generation Infrastructure Market Share Inventory – Office Development 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Central Valley NE Valley East Valley West Valley Tucson Metro Source: CB Richard Ellis, 2005 Inventory – Industrial Development 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Central Valley NE Valley East Valley West Valley Tucson Metro Source: CB Richard Ellis, 2005 Inventory – Retail Development 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Central Valley NE Valley East Valley West Valley Tucson Metro Source: CB Richard Ellis, 2005 Realm by Realm Assets, Opportunities & Challenges Employment Centers Economic Development in the Realms Northwest Valley: The Room Upstairs – Assets • – Prescott Airport Opportunities • • – Anthem Lake Pleasant Challenges • • Connectivity to Phoenix Transportation Corridors West Valley: The Sleeping Giant – Assets • Available Land Mass • Airports – Opportunities • Future freeway corridors (303, 801) • Building [sub]urban core from scratch – Challenges • Getting someone to test the water Economic Development in the Realms Central Valley: Employment Center – Assets • • • – Downtown Phoenix Sky Harbor I-10 Distribution Corridor Opportunities • • – Redevelopment Stadium/Arena Challenges • • • Aging Infrastructure Suburban Flight Residential Composition Northeast Valley: The Crown Jewel – Assets • Camelback Corridor • Scottsdale Airpark • Deer Valley Airport – Opportunities • Old Towne Redevelopment • Palisene – Challenges • Affordability • Infill Opportunity Economic Development in the Realms East Valley: Young & Emerging – Assets • • • – ASU Chandler/Price Corridor Mesa Airports Opportunities • • – SanTan Corridor Original Core Redevelopment Challenges • Available Land Mid Corridor: In the Crosshairs – Assets • Phoenix Regional Airport • 1-10 and I-8 – Opportunities • Land, Land, Land • Intermodel Hub of Region – Challenges • Cohesive Land & Transportation Planning • Sense of place as connecting point between Phoenix and Tucson Economic Development in the Realms Foothills: Uptown – Assets • • – Wealth Resorts Opportunities • • – Oro Valley corridor Marana Challenges • Connectivity to Tucson Metro and the Mid Corridor Tucson Valley: Downtown – Assets • UofA • Downtown Tucson – Opportunities • Employment Center serving all 4 Tucson realms – Challenges • Transportation Economic Development in the Realms Santa Cruz Valley: The Gateway – Assets • – I-19 Opportunities • • – Transition center between Mexico/US I-19 connection to/from Mexico Challenges • Connectivity to other realms San Pedro Valley: Still Camouflaged – Assets • Fort Huachuca – Opportunities • Transition center between Mexico/US • I-10 connection to El Paso – Challenges • Connectivity to other realms Infrastructure Population Growth=More Congestion Daily Vehicle Miles Traveled, per region (in millions of miles) 100 90 80 70 60 50 2002 2020 40 30 20 10 0 Northern Corridor Mid Corridor Tucson Valley and Foothills Highway Projects in Sun Corridor Projects in the Sun Corridor—Filling the Gaps CANAMEX Sun Corridor pop. weighted to north Housing Units 2010 Airports follow the people … 2010 Northern tier’s realms dominate Sun Corridor aviation PHX: 20 million passengers 504,000 air carrier operations TUC: 4 million passengers 43,000 air carrier operations Pop. balance shifts south Housing Units 2010 2050 Where will the next PHX be? ? 2050 Is the Sun Corridor DFW or LAX? Dallas-Fort Worth = centralized model – Less complex, for passengers, industry – Better control of environmental issues – Requires authority Los Angeles = reliever system – Redundancy – Complex airspace, connection, access – Shares economic burden, boom Recent trends PHX = LAX And will rail be included? MAG, ADOT and others pushing for it Lack of connection between north, south, Mid Increasing population pressure from Mid Commuter rail vs. light rail: access from both north, south and Mid In and Out of the Sun Corridor Freeways/Highways: – – – – Congestion—Central Corridor Tucson must build highways Need for increased planning between realms Revenue challenge Aviation – Current population imbalance drives reliever system, LAX style – Southward population shift may demand regional airport in Mid-Corridor – Regional airport, population pressure may push rail effort Environment and Open Space Active Management Areas AMA Annual Use AMA Annual Us e (acre -fe e t) 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Prescot t AM A Phoenix AM A Pinal AM A Tucson AM A Sant a Cruz AM A Sun Corridor: Water Sun Corridor: Water Infrastructure Salt River Project watershed Central Arizona Project Groundwater CAP Annual Permitted Recharge Capacity (acre-feet) 200,000 150,000 100,000 50,000 0 West Northeast East Valley Valley Valley Source: CAP Tucson Valley Santa Cruz Valley San Pedro Valley *The Northwest, Central, Mid Corridor, and Foothills realms have no pumping stations Air Quality 2004 Annual Daily Average Particle Matter less than 10 Microns 45 40 35 30 25 20 15 10 5 0 ey lley lle y lley lle y ridor hills lley lle y lley l l a a a a a a t a a t V st V ral V st V st V Cor Foo n V u z V ro V s o e a Ea t d cs ta Cr Ped We Ce n rthe Mi hw u t r T an n Source: AZDEQ No No Sa S Open Space Open Space Environmental Impact Economic Impact Preservation of significant areas Quality of Life Effective Open Space Conservation Local political and constituent support Strong state enabling legislation Healthy local economy Community’s public financing capacity – – – – Borrowing history Bonding capacity Degree of fiscal power and authority Tax base Open Space and the Realms What Future? Conclusions General Sun Corridor Key Policy Implications The Sun Corridor is the Fastest Growing Megapolitan—Especially The West Valley The Sun Corridor’s Interstate Network is Designed for Inter not Intra-Metropolitan Trips Megapolitan-Level Policies for Transportation, Environmental Pres. and Economic Development Plan for Urban Realms—Each Realm Needs Some Measure of Autonomy But Realms also Need More Effective Integration and Coordination Specific Urban Realm Key Policy Implications Core Realms – Infill and Redevelopment Favored Quarter Realms – Job/Housing Balance and Affordable Housing Maturing Suburbs Realms – Create Mixed Use Centers Emerging Exurban Realms – Open Space Preservation Next Steps June 2006 – Rollout of Key Findings Including Projections for Population, Employment, Housing, and Commercial Construction in a Joint ASU-VT Press Conference Fall 2006 – Morrison Institute Publishes Sun Corridor Final Report