Capstone Project Update

In a previous post I mentioned that I would be using this blog as a way to test and share my ideas for my masters capstone project. For those of you who do not know, a capstone project is very much like a master's thesis. So when I say capstone think thesis.

Up to this point I really haven't posted much on my capstone. This has been for two primary reasons. The first reason is that I really haven't had much to post on my project. Most of my time has been spent preparing for my project. I am just starting to get into the meat of my capstone and as as a result am just starting to have some things worth posting. The other reason is that I'm a little wary of posting my work for all to see. I think my fear of failure and my perfectionist streak keeps me from posting anything till its perfect. Hopefully this blog will help me get over both these issues.

One may ask, why post anything at all? Some may think that I just trying to get other people to write my project for me and in a sense I am. I'm a firm believer in the democratization of the planning process and the importance of co-intelligence. The problems facing us today and into the future are increasingly complex and will require collective action and co-intelligence. No longer can the big problems be left up to experts and more and more often solutions are coming from the ground up. I see this project as a chance to harness the collective experience, ideas and intelligence of Memphis residents to make my project even stronger and hopefully impact the future of light rail development in Memphis.

Bad News from CSX

As I was doing my research for the capstone I came across the July 17th Commercial Appeal article "The End of the Line:; Plans to Purchase old Railroad Corridor Screech to a Halt." According to the article the planned purchase price of the rail line was well below the expectations of CSX. In fact there was over a 13 million dollar difference between the price the city was willing to pay and the price the cities own appraiser valued the land at. According to the article:

CSX appraisal of the property last year set its value at $17.8 million. The local governments hired their own appraiser to counter that, but A.E. Balkin & Associates this spring arrived at a sum that's not much lower - $15.7 million. Both appraisals were based on an "over-the-fence" method of setting value. It means the land price was based on what it would be if it was an extension of adjoining property lots. With the high appraisals in hand, CSX rejected a city-county offer of $2 million for the corridor.

Citing their shaky financial situation, the city and county have pulled their bid to purchase the right of way. As a result the status of the greenline and the possibility of a light rail corridor are put on hold. The city believes that they have presented a good package, since it would seem that the only market for the corridor is local government. On the other hand, CSX is a business and seek to maximize profits for their shareholders. From the article:

CSX spokesman Gary Sease said the company is obligated to seek the market price when selling land."We are a for-profit company and we're responsive to our shareholders, so we don't give the property away. We sell it for fair market values,"

With the city and county pulling out of the negotiations the only entity left pursuing the purchase of the rail right of way is the non-profit, Greater Memphis Greenline. It remains to be seen if the non-profit will be able raise the substantial funds needed for the current purchase price.

The central question is what is going to happen now? Does CSX have any other potential buyers to realize what they consider to be the market price of the land? Could they sell the rail right of way to the land owners adjacent to the rail line? It seems to me that if CSX's only option is to sell the corridor in its entirety than the market analysis used by both the local governments and CSX is flawed. Connecting the market value of the corridor to the market value of the neighboring parecls makes little sense if the land cannot be purchased by adjacent land owners. The question then becomes, what is the market value for the entire right of way taken as a transportation/recreational corridor. With either side not willing to negotiate the corridor will be on hold until one or both sides are willing to compromise?

What is this blog all about?

I created this blog to two reasons; 1) to chronicle my masters capstone project from the start to finish and 2) to educate and comment on the prospect of a light rail system in Memphis. For those who do not know a capstone is similar to a masters thesis. The capstone is supposed to incorporate all that you have learned during the program. I will post updates as I make progress on my capstone.

A little bit about me: I am a grad student in the Masters of City and Regional Planning Program at the University of Memphis. I first became interested in this topic when I heard about the old CSX rail line and the non-profit, Greater Memphis Greenline, that wanted to creat a rails to trails path in its old right of way.

A little bit about my capstone: it proposes a new light rail corridor not yet planned for in the mass transportation master plan. I am still working on defining the study area but plan on using the old CSX line for as the backbone for the corridor. It is my hope that this blog will provide much needed feedback as I test my ideas and make progress on my capstone. Please post your comments as they will only make my work better. I am looking forward to hearing from you in the future.