Long-term funding for the MARC rail service in the Eastern Panhandle remains an open issue as West Virginia’s Governor and Legislature head into the budget process for 2021-2022. The Observer takes a look at how commuter rail fits into the local economy.
Martinsburg’s Rail Connection to the Regional Economy
The question to ask is, “do you want to take advantage of economic development opportunities?” said Shane Farthing, Director of Economic and Community Development for the City of Martinsburg. He suggested that if the city did not have a train station and “we did a study on how to improve the economy, we’d ask how great it would be to have a train station. Sometimes it’s hard to recognize the good things you already have. The train opens the doors to millions of possibilities.”
Farthing observed that, “train service is not a city topic, typically it’s a state-level conversation.” He suggested looking at the larger context of long-term infrastructure investment, noting that, “It’s a question of where you want to put the traffic. For transit, ticket sales never cover expenses — if you get 30% coverage from fares, you’re lucky. But every road system loses money, too. Did we widen Interstate 81 because of toll revenue? No, we did it to attract businesses and jobs.”
Promoting Business & Tourism
In announcing the funding agreement for the then-current fiscal year in a December 2019 press conference at the Martinsburg train station, the West Virginia Governor’s office specifically noted the importance of train service to support both business and tourism opportunities. Farthing echoed that sentiment, saying, “being a “rail-served” place encourages travel in both directions, travelers going to meetings in DC, and tourists from DC. We have an opportunity to continue tourism development. There are many folks from DC who depend on Metro and train to get around. We want to promote the types of businesses that enable tourism, so you can eat, shop, and stay by the train station. There are a limited number of places that are on a train line. Good things want to be near transit and you can create better economic value around it.”
Farthing pointed out that “Martinsburg’s connection to the fifth largest economy bolsters the local economy in the country [Baltimore-Washington region]. In the Eastern Panhandle, we’re a collection of small cities that are affordable places to live and proximate to DC. We can participate in the full economic entity of the region, if we are connected. We have a hub zone and an opportunity zone designation, but we need the physical connection. It’s an alignment of positive features, and transit is a multiplier of all other incentives.”
He also noted the opportunities from remote working trends for individuals who move out from DC as well as the benefit to local businesses. “We need the investment and the people who will move out from DC, who will live in Martinsburg and work in DC. If someone travels once a month or every two weeks to DC, they are still spending ninety percent of their time locally. Places like WeWork and the ability to commute by train add value and makes it easier to split working here and in DC for people in white collar and high-paying jobs. The money they spend locally adds up for our businesses.”
Investing in Opportunity
Farthing explained the value that comes from long-term planning, noting that ticket revenue is helpful, but that the significant value “is with the investment in land, the value of the parcels close to the station.” He estimated that across the country, property values are typically 40% higher within a half mile of walkable transit stations. “Commercial lenders look at the value to decide what to invest. But we need a long range agreement to get to stable funding solutions. Properties have 30 year mortgages, redevelopment is a long term investment decision, and you can’t attract rational investors and get results without certainty in the infrastructure.”
“It’s a calculation of the economic value,” Farthing concluded. “Martinsburg has 17,000 people. The train station is a portal to 5 million people — that’s a huge spending capacity and employment opportunities. The rail service is crucial and significant to our economy.”
This article has been updated to clarify the timing of the funding announced in December 2019.
By Steve Pearson