That said, it makes no sense to build new lines because the costs of building new streetcar lines is actually quite exorbitant and the ridership benefits hardly justify those costs. To use a somewhat back-of-the-envelope calculation, would you spend $200M to build a streetcar line from scratch, or would you just buy about 15 articulated buses and institute POP boarding for (and I think I'm wildly overestimating the costs here) $20M? Even if we assume that the cost of bus replacement and operation is twice as much per rider as a streetcar, you would still have to justify ridership going up 5X to support the streetcar. Has any streetcar that replaced a bus service (eg. Spadina) ever generated 5 times as much ridership as the original bus. No. And that will never be the case.
Spadina's up about 15% since the conversion from the bus began. Chinatown has perhaps declined a bit, but U of T's had an enormous enrollment increase over the past 15 or so years and the development south of Queen has been massive. 15% is not impressive. However, the reasons for ridership ups and downs on Spadina or anywhere else have little to do with the LRT vs bus specifics. The corridor probably doubled in size but only sees 15% more riders largely because the service is usually pretty lousy. Service on connecting routes like College and Queen is also lousy. If every streetcar (or bus route) in the city was as frequent and fast and reliable and well-managed as a route like Finch East, ridership would be explosively higher in many places. When people wait for 15 minutes and then sit in a congested bunch of vehicles for another 15, they become frustrated and next time they just walk instead and save 20 minutes, or cycle, or take a taxi, or take a different route.
Getting rid of one kind of vehicle and spending a bajillion dollars on a different one that does the exact same thing is mindnumbing process when the existing ones are nowhere close to being used properly or to their full potential. Yes, buses could easily replace a streetcar service like Carlton, but doing so would be a pointless waste.
From
Planetizen:
Economic Development. Tangherlini says that one advantage streetcars have over buses is that the tracks “give a sense of permanence, and that encourages long-term investment.” Portland, Ore., which started operating North America’s first modern streetcar system in 2001, can attest to that. A 2008 study by the city says that since streetcar plans were unveiled in 1997, “$3.5 billion has been invested within two blocks of the streetcar alignment.” The study lists “grocery stores, restaurants, galleries, shops and banks” as amenities that have been built near the streetcar lines.
This is an oft-cited example but it's easily debunked. Portland built a streetcar as part of a large, multi-neighbourhood redevelopment project. The areas around the CBD were going to be developed with or without the streetcar. Really, the development built the streetcar. It loops around downtown on one-way streets one or two blocks apart, so a 5-6 block wide swath of Portland - a good 50% of the downtown area - is "within two blocks." It'd be like running a line along Richmond and Adelaide, looping through CityPlace and the Portlands at either end and then saying all of the development between Queen and the Lake was triggered by the transit line. They didn't speculatively build a streetcar line and then cross their fingers that condos and coffee shops would sprout in its wake where none had been already slated. No city does that.
It's easy to say transit "encourages" development but it doesn't do more than new sidewalks, new landscaping, better policing, rezoning, urban design, by-law changes, new parks, civic boosterism, the impact of pioneering enterprises (a loft conversion, a Starbucks on a risky corner), even little things like
demographics, etc., etc.