Funding highway projects with value capture could speed project completion

There’s broad agreement that the U.S. transportation system cannot continue to be funded with existing financing and revenue-generation methods. What’s unclear, however, is how to pay for highway projects in the future. The current transportation funding system emphasizes user fees, but there is growing interest in alternative funding strategies. One promising strategy is value capture, which aims to recover the value of benefits received by property owners and developers as a result of infrastructure improvements.

In recent years, University of Minnesota researchers have helped lead the way in value capture research with a series of reports identifying value capture strategies. In a newly published study, the research team applied their previous work to a real-world scenario, with impressive results.

The new research, sponsored by the Minnesota Department of Transportation, focused on the planned development of Trunk Highway 610 (TH 610) in Maple Grove, Minnesota—a stretch of planned state highway delayed for years by state transportation funding shortages. Researchers set out to discover how the value of the enhanced accessibility provided by the planned improvements could be predicted and captured to help fund the project’s completion.

To accomplish their goal, researchers first defined a study area of about 10 square miles surrounding the unfinished highway segment. Then, they modeled property values based on five factors using parcel-level data. This model was designed to isolate the so-called “highway premium” by controlling for other factors that affect land value including water views, open space, railroads, transit stops, and existing highway exits. Using this model, researchers found significant evidence that the completion of the highway could lead to an over $17 million increase in property value.

Researchers expect these findings to have significant benefits for the TH 610 project and beyond.

Read the full article in the March issue of Catalyst.

Photo courtesy of SRF Consulting Group, Inc.

Warning system could protect drivers from traffic ‘shock waves’

Two summers ago, the Minnesota Department of Transportation installed electronic message boards on parts of Interstates 35W and 94 to help warn drivers of crashes and to recommend speed levels during periods of high congestion.

Now, MnDOT would like to use the devices — officially known as Intelligent Lane Control Signs (ILCS) — to advise drivers of sudden stopping or slowing of traffic.  Many crashes occur when drivers cannot react quickly enough to these changes.

The Minnesota Traffic Observatory (shown in the feature photo above) is developing a warning system to detect such problematic traffic patterns and issue automatic advisories to drivers.

Shock waves on I-94

A section of I-94 in downtown Minneapolis, where southbound I-35W and westbound I-94 converge, may have the highest crash rate in the state.

As shown in the video above, vehicles constantly slow down and speed up here during rush hour, which causes a ripple effect called “shock waves.”

“There’s a crash every two days,” said University of Minnesota researcher John Hourdos, whose students watched over a year’s worth of video footage to document every accident and near accident. “They’re not severe crashes — no one has died for as long as I can remember, and most happen at slow speeds — but they cause a lot of delays for the traveling public.”

When statistics were still being kept, this section of I-94 had the highest number of accidents in the state, with approximately 150 crashes and 400 near crashes observed in 2003.

Researchers developed a program 10 years ago to detect “shock wave” patterns in the traffic, but they couldn’t develop a practical solution until the state invested in electronic message boards.

The University of Minnesota deployed cameras and sensors on three downtown rooftops in 2002 to observe traffic patterns.  They provide seamless coverage of the entire area, allowing researchers to watch vehicles from the moment they enter and exit the area. MnDOT has added additional cameras and detectors to watch over this roadway section. For the past year, the combined efforts of MnDOT and the university have provided data from 26 cameras and 12 traffic sensors for the two-mile section that includes the high-crash frequency location.

Thanks to the message boards, Hourdos and his team can now create an automated system to warn drivers when conditions for “shock waves” are greatest, using an algorithm he developed in the previous study.

Traffic monitoring equipment on a rooftop
From downtown Minneapolis rooftops, traffic monitoring equipment detect shockwaves on Interstate 94.

Crosstown interchange 

A newer problem that researchers hope to tackle is the lineup of cars on I-35W southbound during rush hour at the newly reconstructed Crosstown interchange.

Although two lanes of traffic are provided for eastbound Highway 62 at the I-35W/62 split, these vehicles must later converge into one lane, due to the Portland Avenue exit. This causes a back-up on the 62 ramp that stretches back to 35W.

Hourdos said developing an algorithm to detect these queues is a different problem than what goes on with I-94, since there is a constant stoppage of cars and no rolling shockwaves.

“Combining the two methodologies will form a more robust solution and a single implementable driver warning system,” Hourdos said.

Researchers might target other problems areas should the state  install additional ILCS message boards elsewhere in the Twin Cities.

Value capture alternative finance model tested on Highway 610

Those who use the roads in Minnesota are generally those who pay for them — through gasoline and vehicle taxes.

But motorists aren’t the only ones who benefit when a new interchange is built or a highway is improved. Home and business values along the corridor go up and the price of undeveloped land can skyrocket.

With highway funds strapped, a new method of funding road expansion, called “real estate value capture,” is garnering attention.

This emerging technique strives to identify beneficiaries of transportation improvements beyond just the highway user, so they provide their fair share of the costs — a concept not dissimilar from residential street assessment.

For instance, a local government might dedicate the additional property tax revenue generated due to a new highway to offset some construction costs, or collect fees on land that is developed near an interchange.

However, value capture is a relatively new technique that has been used primarily for transit projects. To be considered for roads or bridges, questions need to be addressed about potential revenue, impacts and public acceptability.

In a new case study, researchers use a long-delayed planned extension of Highway 610 in Maple Grove to model the impact of a completed highway on nearby property values, and, for the first time, quantify the potential revenues from several value capture strategies.

With properties near new highway exits worth an additional $65,450 more per acre, researchers calculated that $37.1 million in revenue could be generated through assessments on existing development and impact fees for future development.

Other strategies explored include tax-increment financing and private-public development of undeveloped parcels, in which revenue generated by that development is split.

“This research demonstrates a way to estimate the value of transportation improvement and to communicate that to the public,” said principal investigator Jerry Zhao, an associate professor of public administration at the University of Minnesota’s Humphrey School of Public Affairs.

This map projects the anticipated increase in estimated market value (EMV Change) of parcels near Highway 610 that will result from completion of the highway and construction of exits at the two locations marked in purple. The impacted parcels are currently vacant, farmland or residential.
This map projects the anticipated increase in estimated market value (EMV Change) of parcels near Highway 610 that will result from completion of the highway and construction of exits at the two locations marked in purple. The impacted parcels are currently vacant, farmland or residential.
Study links:
    • Real Estate Value Capture: An Emerging Strategy to Pay for New Transportation Infrastructure – Technical Summary (PDF, 1 MB, 2 pages);  Final Report (PDF, 5 MB, 36 pages).

‘Smart window’ technology opens new possibilities for transportation noise control

Nearly every time a highway or airport expansion is proposed, transportation planners face opposition from residents who fear the increased noise levels in their homes and businesses. Traffic noise is often mitigated with physical noise barriers, but the large, thick walls often draw opposition as well.

A new technology developed by University
 of Minnesota mechanical engineering professor 
Rajesh Rajamani as part of 
a research project funded
 by the National Science
 Foundation could soon
 provide a nearly invisible
 solution for transportation 
noise cancellation—and 
give transportation planners another tool for overcoming project opposition.

Noise enters homes close to airports and highways primarily through windows, and windows can transmit ten times the sound energy as walls can, says Rajamani. With this in mind, researchers set out to reduce the amount of transportation noise transmitted through windows.

To accomplish this goal, researchers created a method of active noise control for windows. Active noise control works by using speakers to generate a sound wave that is a mirror image of the undesirable sound wave. Superimposing an “anti-noise” wave of the same amplitude as the undesirable noise wave results in a reduced decibel level of noise in the environment.

The research team began by designing thin, transparent speaker panels to fit in the empty space between the two panes of a double-pane window. Then, the researchers tested the effectiveness of the new speakers, using them to cancel out undesirable transportation noise from outside the home while preserving the desirable noise from inside the home.

In addition to mitigating traffic noise, this new technology offers other surprising benefits. Researchers have found that the “smart window” speakers can actually be used as home audio speakers without losing any of their noise-control benefits.

Read the full article in the February issue of Catalyst.

Three common questions about bike lanes, answered

If you’ve ever driven near a bike lane and not known what to do, you’re not alone.

A forthcoming video from the Local Road Research Board seeks to answer common questions about on-street bike lanes and help bicyclists and motorists better understand the rules. The video is due to be released this spring; in the meantime, we thought we’d give you a sneak preview by addressing three common misconceptions about bike lane rules and safety. 

1) Are bicyclists required to use a bike lane, when present?

No. Although bike lanes usually provide the smoothest, safest and most efficient method of transportation — for everybody — they are not required to use them. They are allowed to ride outside bike lanes to make turns or avoid debris, and they still have the option of using an adjacent trail where available.

2) Are vehicles allowed to enter bike lanes?

Yes, but only to park or turn onto a driveway or street. Motorists should treat bike lanes like any other lane of traffic and yield to approaching bicyclists, but they do have the right to enter bike lanes when turning.

3) Do bicyclists have to follow the same rules as motorists?

Yes. Bicycles are considered vehicles under Minnesota state law and have the same rights and responsibilities. Cyclists are required to obey stop signs and signal their turns, just like motorists.

A federal project funded 75 miles of new bike lanes in four communities, including Minneapolis.
A recent federal project funded 75 miles of new bike lanes in four communities, including the city of Minneapolis. Biking in these areas increased 50 percent; 7,700 fewer tons of carbon dioxide were emitted and gas consumption was reduced by 1.2 million gallons. (Source)

Watch for the LRRB’s new bike safety video on Crossroads this spring. In the meantime, check out MnDOT’s tips on bicycle safety.

Demonstration project helps truck drivers find safe places to park

With freight traffic increasing on U.S. roadways, commercial truck drivers often struggle to find safe and legal places to park. If parking spaces are not available at a nearby rest area or truck stop, drivers may be forced to pull over in unsafe locations or continue driving and become dangerously fatigued. Drivers may also risk violating federal hours-of-service rules, which require them to rest after 11 hours of driving.

In response to this issue, a team from MnDOT, the University of Minnesota, and the American Transportation Research Institute
 is developing a system that can identify available truck parking spaces and communicate the information to drivers—helping them determine when and where to stop. System benefits include improved safety, reduced driver fatigue, and better trip management.

The system uses a network of digital cameras suspended above a parking area to monitor space availability. Image processing software developed by researchers at the U of M’s computer science and engineering department analyzes the video frames and determines the number of available spaces.

As part of a demonstration project funded by MnDOT and the Federal Highway Administration, the project team is installing the system at three MnDOT rest areas and one private truck stop on I-94 west and northwest of the Twin Cities.

The U of M research team first installed the system in late 2012 at the the Elm Creek Rest Area, two miles north of Interstate 494 on I-94. As of early 2014, the system has been installed at an additional rest area, and a third site is in progress.

Next steps for the project include implementing several mechanisms that will communicate parking information to truck drivers. First, the team plans to install variable message signs along I-94 this spring. Also in the works are an in-cab messaging system and a website.

Overall results of the demonstration project will help the team determine whether this technology holds promise for use in other corridors throughout the nation.

Read the full article in the February issue of Catalyst.

Innovative pavement textures reduce noise, improve fuel economy

What if something as simple as changing the texture of the pavements we drive on could not only increase safety, but also reduce noise pollution and boost our vehicles’ fuel economy?

It’s possible, according to the latest research from MnROAD, the state’s one-of-a-kind pavement research facility. In a new report, investigators detail how quieter pavement textures, such as those applied by grinding grooves into pavements with diamond-coated saw blades (see the photo above), may also reduce rolling resistance — the force that resists a tire as it moves across the pavement’s surface.

The potential benefits to the public are significant. A 10-percent reduction in rolling resistance could reduce the U.S. public’s fuel consumption by 2–3 percent, eliminate up to $12.5 billion in fuel costs each year (as well as cutting carbon emissions). Add on the cost savings from reducing noise pollution (building noise barriers along highways can cost as much as $3 million per mile), and it’s clearly a win-win situation.

In the study, researchers used an innovative line-laser profiler to develop three-dimensional representations of test pavement surface textures. They then investigated the relationship between these surface characteristics and data on rolling resistance that was collected during a 2011 study using a special test trailer developed by researchers in Poland. This year, the same trailer will be used to conduct a second round of rolling resistance measurements at MnROAD.

The research is related to an ongoing pooled-fund study on concrete pavement surface characteristics. The goal is to produce data that will allow MnDOT to identify ideal ranges for surface characteristics that improve pavements’ quietness and ride quality while keeping them safe and durable.

Learn more
Researchers relied on rolling resistance data from a study conducted in 2011 with a test trailer developed by the Technical University of Gdańsk, Poland. This was the first time such measurements were taken in the United States.
Researchers relied on rolling resistance data from a study conducted in 2011 with a test trailer developed by the Technical University of Gdańsk, Poland. This was the first time such measurements were taken in the United States.

MnROAD earns concrete pavement association award

Staff from MnROAD, the Minnesota Department of Transportation’s cold weather road research facility in Albertville, Minn., were presented with the Marlin J. Knutson Award for Technical Achievement by the American Concrete Pavement Association in December.

The award cites the facility’s well-deserved reputation for being a place where both agency and industry ideas are put to the test. This award was presented as a tribute to the agency’s commitment to learning and putting ideas into practice.

The Marlin J. Knutson Award for Technical Achievement is presented to an individual or group who has made significant contributions to advance the development and implementation of technical innovations and best practices in the design and construction of concrete pavements.

(far right) Gerald Voigt, ACPA president and CEO, presented MnDOT with the Marlin J. Knutson Award for Technical Achievement during a ceremony in December. Receiving the award are (from left) Luke Johanneck, Bernard Izevbekhai, Roger Olson, Tom Burnham, Glenn Engstrom, Maureen Jensen and Sue Mulvihill. (Photo courtesy of the ACPA)
(Far right) Gerald Voigt, ACPA president and CEO, presented MnDOT with the Marlin J. Knutson Award for Technical Achievement. Receiving the award are (from left) Luke Johanneck, Bernard Izevbekhai, Roger Olson, Tom Burnham, Glenn Engstrom, Maureen Jensen and Sue Mulvihill. (Photo courtesy of the ACPA)

“MnROAD is helping to make roads last longer, perform better, cost less, construct faster, and have minimal impact on the environment,” said Gerald Voigt, ACPA president and CEO. “It is a model for other agencies to follow.”

MnROAD is a pavement test track initially constructed between 1991-1993. It uses various research materials and pavements and finds ways to make roads last longer, perform better, cost less to build and maintain, be built faster and have minimal impact on the environment. MnROAD consists of two unique road segments located next to Interstate 94.

Staff from the MnROAD facility in Albertville were recognized during the ACPA’s Distinguished Service and Recognition Awards ceremony in December. (Photo by David Gonzalez)
Staff from the MnROAD facility in Albertville were recognized during the ACPA’s Distinguished Service and Recognition Awards ceremony in December. (Photo by David Gonzalez)

This article, authored by Rich Kemp, originally appeared in Newsline, MnDOT’s employee newsletter. 

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