INFRASTRUCTURE:

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INFRASTRUCTURE
Implications for society and real estate
professionals
(Whats the big deal with Infrastructure?)
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Who is Not in Favor of Improving These Elements
of Our Society?

• SECURITY
• ENERGY INDEPENDENCE
• ENVIRONMENT
• CARBON FOOTPRINT
• REDUCED CONGESTION
• EFFICIENT TRANSPORTATION SYSTEMS
• GLOBAL COMPETITIVENESS
• QUALITY OF LIFE

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Housing Policy
Land Use Decisions
Energy and Climate Change
Transportation Policy

• Land use decisions and altering land use
  behavior are game changers
• for climate change and a better future.
• Land Use decisions are linked to two-thirds of
  greenhouse gas emissions.
• The application of higher density, multimodal,
  compact development
• patterns is a game changer in addressing
  climate change solutions.

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THE U.S. IS AT A PIVOT POINT

• We have the opportunity to fundamentally
  rethink how we
• plan, build and pay for infrastructure
• Will we prosper by making better investment
  decisions?
• Will we slide further behind on the global
  stage?

THE CHOICE IS OURS
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Combined transportation and housing costs are
nearly 60 percent of total income for Working
Families they are nearly 50 percent for all
families
Source Center for Housing Policy
All Households
Working Families (Incomes of 20,000-50,000)
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The Land Use/Transportation Mismatch Sources
Bureau of Transportation Statistics, U.S. Federal
Highway Administration, U.S. Census Bureau
Growth, Indexed to 1980

• Vehicle miles traveled (VMTs) have grown faster
  than population, vehicle registration and miles
  of interstate since 1980.
• After years of steady growth, VMTs taper off in
  2007.

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Our Auto-Dependent Society
Over 86 of U.S. trips are made by automobile,
either alone or with others 9 of trips are done
on foot
Other 2
Walk 9
School Bus 2
Transit 2
Personal Vehicle Alone 37
Personal Vehicle Multiple 49
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• Everything starts with and is driven by
  Principles and Values.
• All ideas are on the table, no matter the
  source.
• Barack Obama
• We need to build, create and maintain national
  assets
• We need to strategically invest, not spend!
• Build infrastructure we will need in the future
• Lay foundation for 21st Century economy
• Compact development patterns comparable to
  raising gas
• efficiency
• We can do better! / Kennedy Space Program

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• Lets build a smarter house
• Lets build a smarter neighborhood
• Lets build a smarter community
• Lets build a smarter megaregion
• Lets build a smarter nation
• Lets build a smarter planet

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INFRASTRUCTURE INFRASTRUCTURE INFRASTRUCTURE INFRASTRUCTURE
Economic Economic Economic Social
Transport Energy Utilities Communications Social
Roads Urban Mass Transit Bridges Tunnels Airports Rail Systems Seaports Shipping Cargo Logistics Centers Water Supply Wastewater Treatment Electricity Distribution Generation Renewable Energy Gas Storage Distribution Satellite, TV, Other Systems Cable Networks Cell Towers WiFi Schools Full Spectrum of Housing Choices Community Facilities Hospitals Universities Prisons Convention Centers Sports Stadiums Facilities Parks
Source Ernst Young Source Ernst Young Source Ernst Young Source Ernst Young
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• 70 to 80 of infrastructure projects are
  under 25 million
• in the United States.
• We are not saying 70 to 80 of infrastructure
  funding in
• the United States flows to projects under 25
  million.
• Conclusion Local and project decision making
  on a
• collective basis can and will be a major
  factor in creating
• a better future.

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VALUE OF PPP DEALS BY REGION IN 2006 AND 2007
North America
Western Europe
Eastern Europe
Asia
Australia
South America
Middle East
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The U.S. Gas Tax is substantially below that in
European countries
US TAX PER GALLON
Source Energy Information Agency February 4,
2008