Bicycles Before Business – Econlib
El Camino Real: A Controversial Repaving Project
El Camino Real (ECR), State Highway 82, serves as the main link between San Jose and San Francisco, running parallel to Federal Highways 280 and 101. The maintenance and rehabilitation of ECR are primarily funded by the state, with limited involvement from local governments. Caltrans, the state transportation agency, has the authority to undertake repaving and redesign projects on ECR without city approval.
In 2024, Caltrans embarked on a repaving project for ECR, stretching from Menlo Park through Palo Alto, Los Altos, Mountain View, to Sunnyvale. The project aimed to upgrade curb ramps and sidewalks to comply with the Americans with Disabilities Act and included the addition of dedicated bicycle lanes. By July 1, 2025, the majority of the work had been completed.
With a budget of $7,133,000 allocated for the project, the specific cost of the newly installed bike lanes was not explicitly disclosed. However, estimates suggest it may not have exceeded $2 million.
The installation of the bike lanes faced criticism from local businesses, particularly regarding the loss of street parking and a potential decrease in customer traffic. Some patrons found it challenging to locate parking spaces, resorting to nearby residential areas. The impact on business revenue remains uncertain, with reports of potential customers abandoning their visits due to parking difficulties.
Despite the controversies surrounding the project, the use of the new bike lanes by cyclists has gradually increased. Observations by local residents, such as driving along ECR for various errands and dining outings, have noted a growing presence of bicyclists utilizing the dedicated lanes. The integration of these lanes aims to enhance safety and accessibility for cyclists traversing the area.
Stanford University, located along ECR, witnesses a significant daily influx of students, staff, and faculty commuting by bicycle. While the university has relied on internal bike lanes marked with paint and signage, the introduction of dedicated bike lanes on ECR offers a safer and more structured route for cyclists.
The debate over the value of the new bike lanes continues, with considerations of installation costs and potential economic impacts on local businesses. The long-term benefits, such as reduced traffic congestion and carbon emissions, may justify the investment in cycling infrastructure. However, concerns persist regarding the financial losses incurred by businesses affected by the project. As California navigates evolving transportation needs, finding a balance between promoting cycling and supporting local commerce remains a complex challenge.
Alvin Rabushka is the David and Joan Traitel Senior Fellow, Emeritus at the Hoover Institution.
