Multi-Modal Marvels: Building Sustainable Infrastructure That Pays for Itself

By Rebecca Neilon and Mike Surasky, Contributing Authors

Transportation systems are evolving to embrace a multi-modal reality where various types of mobility—bicycles, buses, trains, scooters and walking paths—work together seamlessly. The challenge, however, lies in funding these projects without heavily drawing on general funds. 

How can these facilities support mobility while generating economic benefits for the communities that build them? There are creative funding mechanisms for multi-modal infrastructure. It’s vital to identify how multi-modal infrastructure can generate income and benefit the local economy.

The Economic Promise of Multi-Modal Infrastructure

Multi-modal facilities offer more than improved transportation—they are catalysts for economic growth. When designed to move more than just cars, multi-modal infrastructure can attract businesses, increase property values, and encourage tourism. 

For example, Atlanta has developed a beltway trail system that circles downtown and connects major centers such as the arena/stadium sports complex, multiple universities and residential/office locations. Before the trail was constructed, businesses were only accessible through a door off the main roadway. Today, commercial destinations along the route have direct connections to the trail, with just as much traffic flowing in from the trail as from the roadways. 

The trail has changed travel and commuter patterns, encouraged multi-modal use, and removed trips from the roadway system. These facilities create opportunities for transit-oriented development, encouraging retail, housing, and office spaces to flourish near transportation nodes.

What Comes First: Service or Users?

The age-old chicken-and-egg debate: should agencies invest in services first to attract users or wait for demand to grow before committing resources?

A phased approach can provide a solution. Initial investments in impactful yet low-cost projects—such as well-placed bike lanes, pedestrian-friendly streets, or segments of Class 1 bike paths—can be proof of concept. 

For example, when pedestrian facilities in Placerville, Calif., were limited due to mountainous terrain and narrow historic roads, the city identified a pedestrian-friendly route between the highway and a creek that ran the length of the town. 

Due to funding limitations, the city could only construct short segments of this trail. However, when the state undertook a major highway project that required the relocation of underground utilities, the city successfully proposed the construction of a large portion of the trail along the utility alignment. 

Today, residents can cycle or walk the full length of a city that previously had no facilities for cyclists. 

Thinking Creatively: Where Should These Facilities Go?

Location is critical for the success of non-motorized infrastructure. Instead of defaulting to the traditional edge of the road, which forces non-motorized users to compete for space in a high-stress location, city planners should consider unconventional locations. 

For example, abandoned railway corridors, utility easements, and creeks can become vibrant bike and pedestrian paths. The 45-mile Washington and Old Dominion trail in northern Virginia is the result of a converted, unused rail corridor into a paved Class 1 trail, providing an alternative to heavily congested regional highways. 

Collocating trails near schools, parks, or downtown areas creates accessibility and encourages widespread use. 

Revenue Generation Through Multi-Modal Facilities

While not captured by a typical cost-benefit analysis, and a surprise to traditional ways of thinking about infrastructure projects, considering the possibility that multi-modal infrastructure can produce revenue streams that offset construction and maintenance costs. 

Local agencies can capitalize on several enhancements to make these facilities financially viable:

Advertising and sponsors: Users of multi-modal facilities travel at slower speeds and often linger at key locations along the facility. Transit shelters, rest areas, and walkways can be equipped with ad spaces that generate consistent income from local or national advertisers.
 
Retail and leasing opportunities: Local agencies can lease these areas to businesses by incorporating retail spaces within multi-modal facilities. 

Event spaces: When space is available, multi-modal facilities can be laid out with expanded areas that can be used as public gathering plazas. These outdoor spaces can then be used for farmer's markets and pop-up events, generating rental income and creating a gathering space for the community. 

Broader Economic Benefits

Beyond direct revenue generation, multi-modal facilities contribute to broader economic advantages for the communities they serve. These include:

Job creation: The initial construction of the facility creates several short-duration jobs, followed by long-term local jobs to maintain the facility for the life of the infrastructure. 

Property value appreciation: The proximity of pedestrian pathways, bike trails, and transit facilities often increases real estate values, benefiting property owners and boosting local tax revenue.

Tourism growth: Providing safe and walkable facilities encourages visitors to stay close to their destination, generating income for local businesses. 

Environmental savings: Providing an alternative to cars for short trips lowers greenhouse gas emissions, improves health for the users who walk or cycle, and improves the livability of an area. 

Paying for What People Want Without Making Them Pay

One significant challenge is funding multi-modal facilities without placing the financial burden entirely on the general fund. While residents often request expanded options like bike paths or pedestrian trails, they resist tax increases to pay for them. How, then, can we pay for these facilities?

Innovative funding strategies offer diverse ways to finance multi-modal projects. These methods allow cities and towns to develop bike and pedestrian facilities without draining their general funds:

Optional amenities fees: Charging fees for amenities such as secure bike parking or electric vehicle charging stations can help recover installation and maintenance costs of amenities that attract users to a facility.

Special tax districts: Establish special tax districts in areas directly benefiting from specific infrastructure. 

Tax increment financing: This non-traditional method captures the increase in future tax revenue generated by a project. For example, a multi-modal facility that boosts nearby property values can fund construction costs using anticipated tax increments. 

Development agreements: Collaborate with developers to integrate bike and pedestrian infrastructure into new housing or retail projects. 

Public agency policy: Require right-of-way allocations and/or construction of multi-modal infrastructure with development projects. 

Public-private partnerships: These teaming arrangements allow agencies to leverage private investment while sharing risks and benefiting from the rewards. 

Infrastructure bonds and loans: Bonds and loans provide an additional option for funding infrastructure projects. Each allows local agencies to raise capital for construction while repaying the debt over time. 

Grants: Federal and state grants are valuable tools for completing the funding plan for multi-modal infrastructure projects.

Case Studies: Multi-Modal Success Stories

The transformative effects of multi-modal infrastructure are not limited to urban centers; communities across the U.S. have leveraged these facilities to achieve economic and social benefits.

Truckee, Calif.

In California's Sierra Nevada mountains, the town of Truckee offers a great example of how multi-modal facilities can generate income in areas challenged with terrain and harsh winter weather. Truckee's integrated bike and pedestrian pathways connect downtown businesses to recreational areas, encouraging residents and tourists to traverse the town on foot or by bicycle. The paths have spurred growth in the local economy, with bike rental shops and outdoor dining areas thriving due to increased foot traffic. Truckee was one of the first communities in California to construct modern roundabouts, which provided calming traffic, walkable streets, and a unique sense of place.

Clayton, N.C.

The Neuse River Trail in Wake and Johnston counties, located in North Carolina, has had a stark effect on the development patterns in the area. Before the trail was constructed, the availability and location of greenways were not discussed in development. Now, locating a neighborhood near the trail is considered a number one amenity for many communities. The town of Clayton built a connection from the main trail called the Sam's Branch Trail. This new connection to downtown Clayton from the river has invigorated financial and social development. Three new communities have been built near the trail, with connections in all directions. This trail also gives users access to a 40-mile section and connection to two well-known long-range trails: the East Coast Greenway and the Mountains-to-Sea Trail.

Amador City, Calif.

The Amador City bridge replacement project is an excellent example of how a roadway project can transform how a community uses its public space. Before it was replaced, a local road intersected the main road at the bridge's western end. This intersection created a large, unused paved area adjacent to narrow pedestrian sidewalks. Instead of just replacing the bridge, the city repurposed two tons of native rock previously used to support the structure into low curb walls to better define the two roads while creating safe pedestrian plazas. Today, one of these plazas is rented to an adjacent restaurant for outdoor dining, and the other two are used for community events. The large volume of rock work was possible because the original bridge abutments were classified as historically significant, requiring on-site reuse. That historical designation created a pathway for the funding grant to pay for the work. What began as a necessary infrastructure upgrade transformed the center of this small town into a community gathering place that enhances the charm of this gold rush era community. 

A Vision for the Future

Bike lanes, sidewalks, pedestrian plazas, transit facilities, and complete streets are more than infrastructure—they are an investment in the economy and livability of our communities. By adopting innovative funding mechanisms, local agencies can construct these assets without depleting their general funds. The success stories of communities, such as Amador City and Clayton highlight successful planning and creative financing to realize the transformative power of multi-modal infrastructure.

Rebecca Neilon, P.E. is a senior engineer at Dewberry, and Mike Surasky, P.E., PTOE, is a senior associate/regional market segment leader at Dewberry.