The KC Streetcar Still Isn’t Driving Economic Development

State and Local Government |
By Patrick Tuohey | Read Time 2 minutes minutes

In 2016, my former colleague Joe Miller wrote a piece in which he pointed out that the Kansas City streetcar was not driving up market values in the transportation district in which it runs. Miller wondered why the rhetoric of policymakers was so divorced from actual economic data. He found his answer in a 2010 report from the  Federal Transit Administration (FTA): “Few, if any, streetcar system operators seek information on their impact on economic activity, although most interviewed consider economic-related questions to be vital and desire further research on this topic.”

Fast forward to today and nothing has changed. Property assessment data received from Jackson County through an open records request show the aggregate annual market value of Kansas City’s downtown streetcar Transportation Development District (TDD) is largely growing at the same rate as the county as a whole.

In other words, the streetcar is still not driving economic development in any substantial way. Were that the case, you’d see market values in the TDD rising at a much faster rate, as properties are quickly snatched up and redeveloped to take advantage of all that commerce and excitement.

There may be arguments for expanding the Kansas City streetcar. But those arguments aren’t about transit (all the streetcar routes were once and could be again served much more economically by buses) and they aren’t about economic development. And because 66% of Missouri electricity is generated by coal, the streetcar isn’t green, either.

Unfortunately, as the FTA reported, few streetcar operators actually check to see if their claims are true. That remains the case in Kansas City.

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the consequences — often unintended — of policies regarding economic development, taxation, education, policing, and transportation. In 2021, Patrick served as a fellow of the Robert J. Dole Institute of Politics at the University of Kansas. He is currently a visiting fellow at the Yorktown Foundation for Public Policy in Virginia and also a regular opinion columnist for The Kansas City Star. Previously, Patrick served as the director of municipal policy at the Show-Me Institute. Patrick’s essays have been published widely in print and online including in newspapers around the country, The Hill, and Reason Magazine. His essays on economic development, education, and policing have been published in the three most recent editions of the Greater Kansas City Urban League’s “State of Black Kansas City.” Patrick’s work on the intersection of those topics spurred parents and activists to oppose economic development incentive projects where they are not needed and was a contributing factor in the KCPT documentary, “Our Divided City” about crime, urban blight, and public policy in Kansas City. Patrick received a bachelor’s degree from Boston College in 1993.

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