Strategic Economic Development Assets: Infrastructure in the East Valley

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1 : Infrastructure in the East Valley Presented by: February

2 INFRASTRUCTURE Moving People, Goods and Services In today s global economy, success belongs to the well-connected, especially in the movement of people, goods and services. The East Valley s transportation connections are second to none. From modern freeways, to light rail, to rapidly growing air service at the Phoenix-Mesa Gateway Airport, the East Valley has a modern, well-developed, multi modal transportation system that easily and efficiently facilitates the movement of people, goods and services within the Greater Phoenix region and State of Arizona. Equally important, the East Valley s transportation system links this vibrant region to the rest of the nation and world through the Interstate highway network, rail and Phoenix Sky Harbor International Airport. 2

3 Phoenix-Mesa Gateway Airport Phoenix-Mesa Gateway Airport is one of the fastest growing hub airports in the U.S. In 2012, the airport served million total passengers, with more than 157,915 takeoffs and landings, making it the 65th busiest airport in the nation. Source: Phoenix-Mesa Gateway Airport 2013; Arizona Republic January 29,

4 Phoenix-Mesa Gateway Airport The Phoenix-Mesa Gateway Airport has been lauded nationally as the best example of a converted Air Force base into a center of commerce, technology, research and commercial aviation. With its planned new terminal slated to begin construction in 2015, Phoenix-Mesa Gateway Airport will accommodate ten percent of Greater Phoenix s total airline passenger service by Allegiant Airlines and Spirit Air have significant operations at Gateway, and the recent announcement of Frontier Airlines will only enhance the airport s position in the State of Arizona and Western United States as an important commercial aviation center. Source: Phoenix-Mesa Gateway Airport

5 Phoenix-Mesa Gateway Airport Named the Airport of the Year for 2012 by the Arizona Department of Transportation, Phoenix-Mesa Gateway Airport serves as the second major airport serving the Phoenix metropolitan market. Its position in this dynamic and fast-growing regional market assures that Phoenix-Mesa Gateway Airport will continue to experience robust growth in the years ahead. Source: Phoenix-Mesa Gateway Airport

6 Phoenix-Mesa Gateway Airport Cited for its exceptional service and commitment to Arizona s system of airports, the Arizona Department of Transportation noted that Phoenix-Mesa Gateway Airport s investments continue to meet the needs of residents, visitors and businesses throughout the state. The airport has continued to grow and expand despite a tough economy, and that speaks volumes about its role in the aviation community and in Arizona s overall economic picture. Source: Phoenix-Mesa Gateway Airport

7 Phoenix-Mesa Gateway Airport Passenger volume at Phoenix-Mesa Gateway Airport (AZA) for 2012 posted a 44 percent gain in comparison to the 956,665 passengers of Based on consistent year-over-year increases in passenger traffic since 2008, airport officials are projecting a rapid climb toward 2 million passengers over the next few years. To accommodate the need for increased passenger service, in 2012, Gateway broke ground on Phase II of a terminal expansion project, which will add 30,000 square feet of space and two additional gates. The airport also completed a 2,700-space parking lot along Ray Road. These expansions will be completed in the Fall of Source: Phoenix-Mesa Gateway Airport website

8 Phoenix-Mesa Gateway Airport Future growth projections for Phoenix-Mesa Gateway Airport demonstrate the unbridled potential of this aviation asset in serving the East Valley, Greater Phoenix region and State of Arizona. 0-5 years: 1.5 million annual enplanements 6-10 years: 2.2 million annual enplanements years: 5 million annual enplanements years: 10 million annual enplanements 10,000,000 Source: Phoenix-Mesa Gateway Airport

9 Phoenix-Mesa Gateway Airport To meet this growth, airport officials have established a four-phase capital improvement program, and have committed to invest $1.5 billion expansion in the first three phases: Phase 1: Designed to accommodate up to 3 million passengers, this phase will include a single-level terminal and concourse with 14 gates, surface parking for 4,375 vehicles, airfield improvements, partial construction of a circulation roadway and other infrastructure improvements. Phase 2: Designed to accommodate up to 4.4 million passengers annually, and includes four additional gates, an extension of the circulation road, expanded surface parking to allow for 10,500 vehicles and a 1,000-foot runway extension. Source: Phoenix-Mesa Gateway Airport

10 Phoenix-Mesa Gateway Airport Phase III: Designed to accommodate up to 10 million passengers a year, this phase will include expansion of the terminal to two levels, and a significant expansion of parking facilities. Sources: Phoenix-Mesa Gateway Airport 2011 and 2012; Arizona Republic June 20,

11 Chandler Municipal Airport Owned by the City of Chandler, and managed by its Economic Development Department, the Chandler Municipal Airport is among the nation s top 50 busiest general aviation airports with 160,000 operations each year. Primarily a business aviation asset, Chandler Municipal Airport also is a base for charter, transport, and sightseeing excursions. As the anchor to a ninesquare-mile employment corridor, the airport has attracted aviation, aerospace, defense and other high tech employers, in addition to institutions of higher learning. Source: City of Chandler Web site

12 Chandler Municipal Airport Situated along the Loop 202 San Tan Freeway, the Chandler Airpark is located within the Chandler Enterprise Zone, which provides income tax credits and/or favorable property tax reclassification to qualified businesses. Employers are able to avail themselves of a planned, business park environment offering a wide range of real estate choices, including parcels with through-the-fence access. They also are able to draw from a population of nearly 1.8 million people within a 30-minute commute. Among major facilities in the Chandler Airpark are the Chandler-Gilbert Community College, Ottawa University, retail, as well as planned hotels and entertainment amenities. Source: City of Chandler Web site

13 Mesa Falcon Field Airport Owned and operated by the City of Mesa, Falcon Field is one of the busiest general aviation airports in the United States. In 2011, it was the 5th busiest general aviation airport in the country and had over 750 based aircraft. More than 100 firms occupy the airport, and more than 13,000 people are employed in the Falcon Field Employment Center, which includes the airport proper and six industrial parks surrounding it. These firms, coupled with airport operations, generate $2.3 billion annually in direct benefit to the local economy. A $22.6 million upgrade program was initiated in January Sources: City of Mesa website; Arizona Republic January 15,

14 Mesa Falcon Field Airport The Red Mountain Freeway (Loop 202) provides access to a growing population of more than 1.5 million residents within a 30-minute drive. With convenient freeway access, proximate executive and affordable housing communities, and available land development and building availability, Mesa's Falcon Field Airport serves as the economic catalyst for the Falcon Field Employment Center. An impressive group of major employers representing aerospace/aviation, high-tech, manufacturing and software industry sectors are located in this employment center. Boeing's Apache Helicopter facility is the largest company in the area, employing more than 4,700. In addition, Alliant Techsystems, Lockheed Martin, MD Helicopters, Nammo Talley and Timken operate large facilities at the Falcon Field Employment Center. Source: City of Mesa Web site. 14

15 ECONOMIC DEVELOPMENT PILLARS FOR A SUSTAINABLE AND Airport Assets in the East Valley TOTAL ANNUAL OPERATIONS AT EAST VALLEY AIRPORTS ,947 Sources: U.S. Department of Aviation, Federal Aviation Administration website; Phoenix-Mesa Gateway Airport

16 Freeways and Interstate Connections Sources: AECOM Phoenix, November 2012; MAG 2030 Transportation Plan

17 Freeways and Interstate Connections The East Valley boasts over 100 miles of freeway and Interstate corridors, supported by a grid network of arterial roadways that support the movement of people and goods while reducing congestion. Freeway and Interstate connections include: Interstate 10: A major economic corridor that stretches coast to coast across from Los Angeles, CA to Jacksonville, FL. Within the Phoenix metropolitan area, the corridor ranges from six to twelve lanes wide, including high-occupancy vehicle (HOV) lanes and express bus service. Studies are underway for the potential incorporation of alternative transit modes. Higher education facilities, industrial complexes, and major commercial centers are sited along the corridor. Source: AECOM Phoenix, November

18 Freeways and Interstate Connections Loop 101 (Price Freeway): This corridor serves as a loop connection around the northern and through the eastern portion of the metropolitan area. In the East Valley, the corridor ranges from six to eight lanes, plus HOV lanes. It is ultimately planned to consistently have eight general purpose lanes and HOV lanes. Loop 202 (Red Mountain and SanTan Freeways): This corridor serves as a loop connection around the East Valley, where it is currently six lanes wide and provides some express bus service. Plans call for eight lanes plus HOV lanes. This corridor connects most East Valley communities and provides the most direct link to Phoenix-Mesa Gateway Airport. Source: AECOM Phoenix, November

19 Freeways and Interstate Connections US 60 (Superstition Freeway): This east-west corridor traverses the center of the East Valley. It is ten lanes wide, including HOV lanes and express bus service. This corridor connects most East Valley communities, and extends beyond the metropolitan area, linking rural communities to central Arizona. Source: AECOM Phoenix, November

20 Light Rail Transit Source: AECOM Phoenix, November

21 Light Rail Transit Valley Metro s Central Phoenix-East Valley (CP-EV) light rail transit (LRT) corridor has served the East Valley since the system s first phase was completed in Since then, the cities of Tempe and Mesa have continued to plan for additional expansions to the light rail system. In October 2012, U.S. Secretary of Transportation Ray LaHood personally visited Mesa to announce that the Federal government would fund $75 million toward the cost of the 3.1 mile Central Mesa Light Rail extension, which will serve an additional 10,000 riders daily. This extension broke ground and is expected to open to riders in A third extension of this corridor also is in the planning stages, and will extend the CP-EV corridor another two miles to Gilbert Road. Sources: Valley Metro Web site 2012; AECOM Phoenix, November

22 Modern Streetcar Source: AECOM Phoenix, November

23 Modern Streetcar In 2010, plans were approved for Valley Metro s 2.6-miles of modern streetcar in central Tempe. Slated for completion in 2016, the Tempe Streetcar will run in a one-way loop between Rio Salado Parkway and University Drive, going north on Mill Avenue and south on Ash Avenue, and will continue to travel north/south on Mill Avenue between University Drive and Southern Avenue. A potential extension of this corridor east-west on Southern Avenue between Mill Avenue and Rural Road is under consideration. The modern streetcar differs from light rail by its shorter train lengths (and therefore less passenger capacity) and higher stop frequencies (stations located every ¼ to ½ mile). Source: Valley Metro Web site 2012; AECOM Phoenix, November

24 Bus Service Source: AECOM Phoenix, November

25 Bus Service Valley Metro offers over ten express bus routes that provide limited stop service between East Valley communities and downtown Phoenix, utilizing freeway high occupancy vehicle (HOV) lanes. These operate in the peak morning and evening travel times to deliver commuters efficiently to their destinations. Planning for arterial express bus routes in the East Valley is underway to connect more local destinations, as well as connect riders to the LRT system (e.g., Arizona Avenue corridor in Mesa and Chandler). Additionally, local bus service operates on most major arterials in the East Valley (one-mile grid network of streets), as well as several local circulators that provide continuous and frequent looping service around the downtown areas of Tempe and Mesa. Presently, transit service generally does not extend past Power Road; however a pilot route has been initiated to serve destinations in east Mesa, including the Superstition Springs Mall, Superstitions Gateway West, and Mountain Vista Medical Center. Source: AECOM Phoenix, November

26 Commuter Rail Source: AECOM Phoenix, November

27 Commuter Rail The Maricopa Association of Governments (MAG), the regional planning agency for Maricopa County, has conducted a series of studies to assess the need for and plan the location of commuter rail. Commuter rail provides a higher capacity service than light rail, typically serving communities within miles of an urban core, and stopping every 3-10 miles. This could provide an alternative transportation option between downtown Phoenix and communities on the metropolitan edge. Studies to date have assessed factors such as existing freight operations, potential opportunities for commuter rail in existing rights-of-way, ridership potential, operating strategies, priority corridors, and associated capital and operating costs. The corridor with the highest ridership potential includes the Union Pacific Railroad (UPRR) Phoenix Subdivision, serving the East Valley at a diagonal. This, paired with the BNSF Grand Avenue and UPRR Yuma corridor, are anticipated to compose a starter system approach, with potential additional corridors serving Tempe and Chandler in the future. Source: AECOM Phoenix, November

28 Intercity Passenger Rail Source: AECOM Phoenix, November

29 Intercity Passenger Rail The Arizona Department of Transportation is undertaking a study to identify a range of viable alternatives for operating passenger rail service between Phoenix and Tucson. Current alternatives are looking at modal options that include a combination of intercity/commuter rail and bus rapid transit. Alignment options utilize the existing I-10 corridor right-of-way, new greenfield rights-of-way, and/or shared UPRR rights-of-way. All of the alternatives would serve the East Valley in some manner. Station locations are still to be determined. The potential exists to share this corridor rightof-way with commuter rail, running both services on the same set of tracks. The intercity service is expected to be a more efficient service competing with Interstate travel times and therefore stopping at only three to five stations between the end of lines in Phoenix and Tucson. Commuter rail could stop as frequently as every three miles in the metropolitan area. Source: AECOM Phoenix, November

30 Planned Roadways Source: AECOM Phoenix, November

31 Planned Roadways State Route (SR) 24 is a planned freeway that would connect Loop 202 near the Phoenix-Mesa Gateway Airport to US 60 in Pinal County. The first phase includes a one-mile stretch between Loop 202 and Ellsworth Road. Corridor location decisions for the second phase are pending the Arizona Department of Transportation s (ADOT) North-South Corridor Study, which is planning for a north-south freeway between US 60 and I-10, providing a redundant transportation route in the eastern portion of the Phoenix metropolitan area. SR 24 will provide enhanced access from southeast Maricopa County to northeast Pinal County, as well as provide additional routes into and out of Phoenix-Mesa Gateway Airport and its surrounding businesses and schools. Source: AECOM Phoenix, November

32 Railroads Three freight rail corridors serve the East Valley, including the Union Pacific Rail Road (UPRR) Phoenix Subdivision, running at a northwest/southeast diagonal across the East Valley, the UPRR Chandler Branch, and UPRR Tempe Branch. The Phoenix Subdivision connects with the UPRR Sunset Route, its major southern U.S. transcontinental goods movement route. Source: AECOM Phoenix, November

33 Railroads The Arizona Department of Transportation completed a new state rail plan in Class I railroad lines in Arizona run parallel to most major Interstate highways in the State, such as I-8, I-10, I-19 and I-40. These corridors represent multi-modal thoroughfares providing freight movements by rail and truck, and passenger movements by intercity rail, bus and personal vehicles. In general, a class I mainline has an approximate capacity of 216 million annual tons. A review of 2005 and forecasted 2050 rail traffic forecasts clearly shows that most of the rail traffic passes through the State with only about one-fifth of the total traffic destined for Arizona. Outbound rail traffic accounts for only two percent indicating the gross mismatch between inbound and outbound freight on rail. Currently, most freight trains going out of the Phoenix metropolitan area carry only waste and scrap metal. Freight traffic is expected to grow significantly by 2030 and However, the percentage share of inbound, outbound, and through traffic is not expected to change. Source: Arizona Department of Transportation March

34 STRATEGY SOLUTIONS SUCCESS Ioanna T. Morfessis, Ph.D. President and Chief Strategist IO. INC 3104 E. Camelback Road, No. 853 Phoenix, AZ (602)

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