Study: SEPTA helps fuel local economy

Transit agency generates $2.93 billion annually in economic activity throughout southeastern Pennsylvania

WEST CHESTER » The comparison to railroad machinery was perhaps not unintentional during a discussion Tuesday at the Chester County Commissioners’ work session about the economic impact that SEPTA mass transit has on the county, and region’s, fortunes.

According to a study reviewed at the meeting, SEPTA generates $2.93 billion annually in economic activity throughout southeastern Pennsylvania, including $174 million in the county, and adds value to homes within striking distance of rail stations on the Downingown-to-Center City R5 line.

“Our region is a powerhouse and an economic engine for the state,” said SEPTA General Manager Jeffrey D. Knueppel at the beginning of a slide show on the results of its new study by Econsult Solutions that determined that the region generated 41 percent of the state’s economic activity with 32 percent of its population – on just 5 percent of its land.

“We are very, very strong and very, very vital, not only for our own region but across the state,” Knueppel said of the five-county area. SEPTA, he said, plays a large role in helping to drive that economy through its mass transportation system that include regional rail and bus service in the county.

Between 2010 and 2016, southeastern Pennsylvania grew by 81,565 residents, helping the state grow by 71,884 people. According to Econsult, this degree of economic productivity and density is not possible without SEPTA services, which provide residents with efficient, affordable and reliable options to move throughout the region.

Examples of SEPTA’s economic impact in the county include:

• The ongoing expansion of SEPTA’s Frazer Shop and Yard in East Whiteland. When completed by the end of 2020, the new facility will be a state-of-the-art home to SEPTA’s new locomotives and the Authority’s first ever fleet of multi-level railcars.

• Accessibility improvements

to Exton Station in West Whiteland. Upon completion this fall, the station will be fully upgraded and ADA-compliant, including the construction of highlevel boarding platforms, ramps and stairs, and a new station building. Knueppel sad that like the “Field of Dreams” baseball field, the study shows that as facilities grow so does ridership. “If you build it, they will

come,” he deadpanned.

• A joint Amtrak-SEPTA project to make Paoli Station in Tredyffrin fully accessible for all passengers, including construction of a new center high-level platform, new elevators and ramps, a pedestrian overpass, and parking lot improvements. This project will set the stage for a new, expansive Paoli Transportation Center envisioned to serve the growing needs of the traveling public.

In addition, SEPTA’s study found that home values increase significantly

the closer the home is to a rail station.

The report analyzed 315,115 suburban residential property transactions between 2005 and 2016 and found that access to SEPTA’s Regional Rail and Norristown High Speed Line adds $14.5 billion, or 7.4 percent, to suburban residential property value.

In the county, access to SEPTA’s rail system is worth $1.9 billion, or 4 percent of total value. This added value supports a property tax base that funds schools and municipal

services across the county. For example, SEPTA service increases residential property values on average of $69,382 for houses within three miles of Paoli Station; $66,931 for houses within three miles of Malvern Station; $36,998 for houses within three miles of Whitford Station in West Whiteland; and $36,410 for houses within three miles of Exton Station.

In a joint statement, Commissioners Michelle Kichline, Kathi Cozzone and Terence Farrell said, “Through (state capital)

funding SEPTA has the resources necessary to rebuild their aging infrastructure and address its infrastructure state of good repair backlog. Enhanced mobility and congestion relief are vital to improving the quality of life for those living and working in Chester County, and we are pleased with the investments SEPTA is making here.”

The county appoints two members to SEPTA’s Board of Directors, and contributes over $1 million annually to its budget. In 2017, that figure was $1,813,079,

and in 2018 the total was $2,248,000.

Kichline, a longtime supporter of the efforts to build the Regional Rail center at Paoli, said the county’s younger workforce remains very interested in finding ways to get to work that do not involve driving a car, something SEPTA services will play a large role in.

“We already have enough traffic congestion on the road,” she said.

To contact staff writer Michael P. Rellahan call 610-696-1544.