South Division Bus Rapid Transit Project

Bus Rapid Transit (BRT) is an innovative, high capacity, higher speed, cost-effective public transit solution that can achieve the performance of a higher cost light rail system. Being both efficient and higher speed, BRT systems attract choice riders. The efficiency and high speed of BRT is achieved by:

--Dedicated bus lanes – During rush hour traffic, a large portion of the BRT system operates in bus-only lanes, resulting in higher speeds than the general traffic lanes.

--Improved fare collection – Electronic payment, prior to entering a bus, allows for quick boarding of passengers.

--State-of-the-art technologies – BRT uses intelligent transportation system (ITS) applications such as transit signal priority, which allows BRT to travel through intersections more quickly than general traffic. Other technologies, such as real-time arrival travel information and advanced communication systems, result in faster and more convenient trips.

--Improved service – BRT service features all-day service with high frequency service.

--Station design – BRT makes less frequent stops than regular bus service. Generally, stations are spaced from ½ mile to 1 mile apart. Stations are designed for level boarding on vehicles. This, in conjunction with wide entry and exit doors, allows BRT to enter and exit stations quickly.

--Vehicle branding – BRT vehicles are comfortable, clean, quiet, high-efficiency vehicles that often use hybrid propulsion drive systems. Vehicles have a modern design with unique logos that are easily distinguished from regular bus service.

--Transit supportive land development – BRT investments generate significant positive development effects. Some examples include:
       Pittsburgh - $300 million in development around stations
       Ottawa - $700 million in development around stations
       Boston – $650 million in development around stations

The South Division Rapid Transit Project will create both temporary and permanent jobs. On the Construction side, there will be jobs in facility and roadway construction, vehicle manufacture, professional, technical and other services. Long term construction jobs will be as a result of transit oriented development (TOD) construction primarily at stations. Although the numbers of total jobs created are more than 1,200, we have to consider some jobs are only for a year and some up to ten year periods and therefore that job totals must be shown in full time equivalents characterized as permanent. The total direct and indirect permanent jobs related to construction are 189 jobs.

Permanent jobs will also be created in transit operations, retail trade and food services. Based upon accurate transit operations currently planned for and potential for development that is known to be in process we estimate permanent direct and indirect jobs to be 216. The total number of jobs created by the rapid transit project therefore will be 405 permanent jobs. The average annual wage will be $37,000. The total annual wage creation will be $14,985,000.

Each Bus Rapid Transit (BRT) project has a return on investment. With some BRT projects that are more robust in scope, the return can be as high as 1000%, e.g. Cleveland’s Euclid Corridor, or York, Ontario’s VIVA. Kansas City’s MAX has a return on investment of 300 %. At the lowest end of ROI is Pittsburgh with 115%. In summary, the range of ROI varies substantially from just over 100 percent to over 1000 percent. The average for six North American systems examined was in the range of 400 percent. Some findings from a University of Michigan report³ give insight into the importance of stations and station areas. The findings showed the type of running way had little impact on development. “BRT attracts real estate development because BRT stations are substantial enough and classy enough to signal to developers that the stop will become a permanent destination. When BRT systems feature such attractive stations and offer good quality service, they attract new real estate development equivalent to that attracted by rail transit.”

For the Grand Rapids South Division BRT project, planned and potential station area projects at Wealthy, Maplelawn, and 54th Street would provide a return on investment for the South Division BRT project of approximately 400 percent – the average for the six North American systems examined above.



³Source: William Kaplowitz, “Bus Rapid Transit: A Powerful Real Estate Development Tool” in the Urban and Regional Planning Economic Development Handbook, University of Michigan, 2005.

--Vehicle requirements – 10 hybrid electric, 40ft, low-floor buses

--Route length – 9.87 miles

--Station stops – 19

--Service frequency – 10 minutes during peak hours, 15 minutes off-peak

--Total project cost: $40,144,000 ($32,115,200 federal, $8,028,800 state)

The Rapid is currently working closely with local cities, organizations and developers on the details of the project, such as zoning and placement of the BRT stations.

In order to secure a Project Construction Grant Agreement, which is necessary to begin construction of the South Division BRT project, we must obtain a funding commitment from the state of Michigan for the 20% match for the capital portion of the project. In addition, we must secure the operating funds for the project.   The targeted startup date for the project is in 2012.