Assessing the Potential for Transit-Oriented Development in the Twin Cities (CTOD)
The McKnight Foundation
Twin Cities, Minnesota December 2005 to present
The Twin Cities region of Minnesota only recently opened its first light rail line. While under construction, this line
was very controversial due to its perceived high cost. Nevertheless, since the line opened in April 2004, it has
been extremely successful, with ridership far exceeding projections. However, the region still faces extreme
congestion, and transit will not have much impact on this problem unless a much more extensive network is built.
The McKnight Foundation, a large Minneapolis-based foundation with a very strong civic presence, recognized
that this network would not be built without the business community pressuring the state legislature for funding.
To this end, the McKnight Foundation engaged the Center for Transit-Oriented Development (CTOD) to study the
economic benefits of transit to the region. As a research partner in CTOD, Strategic Economics took the lead in
this work by conducting a detailed literature review on the economic impacts of transit on regional
competitiveness, identifying the region’s major employment centers and their spatial relationship to future transit
lines, and estimating future demand for TOD housing to show that workers may be interested in living near transit.
In addition, the project builds on past CTOD work to show the average costs of regional congestion to companies
in the United States. This analysis will be combined in a report designed to build support in the business
community for a regional sales tax initiative that could be used to help finance future transit system extensions.