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American Focus > Blog > Economy > Bicycles Before Business
Economy

Bicycles Before Business

Last updated: September 22, 2025 12:55 pm
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Bicycles Before Business
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El Camino Real (ECR), designated as State Highway 82, serves as the principal route linking San Jose to San Francisco and finds itself positioned between the major Federal Highways 280 and 101. The state primarily oversees the maintenance and rehabilitation of this vital corridor, with local governments contributing modestly. Notably, Caltrans possesses the authority to repave and redesign ECR independent of any city approvals.

In 2024, a decision was made by Caltrans to undertake a repaving project along ECR, stretching from Menlo Park southward through Palo Alto (where it runs alongside Stanford University), continuing to Los Altos, Mountain View, and concluding in Sunnyvale. The project aimed to enhance curb ramps and sidewalks to adhere to Americans with Disabilities Act standards and also included the introduction of dedicated bicycle lanes. The extensive work was largely finished by July 1, 2025.

The funding allocated by Caltrans for this project amounted to approximately $7,133,000, although the specific cost associated with the installation of the soft white-posts-and-green-marker bike lanes remained unlisted. An estimation of these costs is no more than $2 million.

Concerns arose from local restaurants and other businesses regarding the reduction of available street parking and the potential impact on customer footfall during and after the installation of the bike lane enhancements. Patrons often find themselves seeking parking in adjacent residential areas, leading to instances where they abandon their plans to dine or shop. Although pinpointing the exact losses incurred by these establishments can be challenging, the observable trend of potential customers departing in search of more accessible parking cannot be ignored.

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The key question remains: How effectively have bicyclists utilized the new bike lanes since their completion? My wife and I frequently dine in restaurants along ECR, and on average, I make weekly trips to Safeway Pharmacy and Grocery Store, while my wife visits two large retail chains weekly and goes to Ranch 99 in Mountain View biweekly. This totals four trips weekly and nine biweekly. On our 62nd anniversary, celebrated on August 17, 2025, we dined at our favorite Chinese restaurant on ECR. Arriving early, we were seated by a large window overlooking the street, and simultaneously we exclaimed, “Look, a bicyclist!”—the first we had observed utilizing the newly dedicated bike lane. By our estimations, we covered around a hundred miles throughout the period from July 1 to August 17.

A significant number of students, faculty, and staff have been cycling to Stanford on a daily basis for years, doing so without the aid of dedicated bike lanes along ECR. Inside Stanford, bike lanes are primarily indicated with paint and textual markings.

Ultimately, the question arises: Are the new bike lanes justifiable in terms of both their upfront installation costs and the indirect losses experienced by local businesses? Personally, I believe these enhancements may not be worth the expense—at least until we witness increased usage rates that lead to fewer cars on the road, alleviating traffic congestion and decreasing carbon emissions. Even with potential improvements, local businesses may still experience financial hardships. But then again, this is California!


Alvin Rabushka is the David and Joan Traitel Senior Fellow, Emeritus at the Hoover Institution.

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Alvin Rabushka





El Camino Real (ECR), designated as State Highway 82, serves as the principal route linking San Jose to San Francisco, positioned between the major Federal Highways 280 and 101. The state primarily oversees the maintenance of this vital corridor, enabling Caltrans to repave and redesign ECR independent of any city approvals.

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