Station Area Value Capture Initiative

Transcription

1 Washington Metropolitan Area Transit Authority Station Area Value Capture Initiative Presented to: Planning and Development Committee Office of Planning and Information Technology April 7, 2005

2 I. Purpose Brief Planning and Development Committee on proposed Station Area Value Capture Program and provide additional information on the proposed scope of work as per Planning and Development Committee s request at the March 3, 2005 Planning and Development Committee meeting. 1

3 II. Background Development around Metrorail stations benefits from improved accessibility and higher land value. New developments also impact the capacity of Metrorail station pedestrian facilities, access roads, parking facilities, and fare collection equipment. New developments may necessitate station specific capacity enhancements (new entrances, additional faregates, etc) to accommodate anticipated ridership. A federal government access fee was studied during the development of the Metro Matters Financial Plan as part of the Strategic Alliances and Risk Assessment (SARA) project. Blue Ribbon Panel explored a number of real estate-based sources of revenue including Tax Increment Financing, Special Assessment Fees, and Ad Valorem Property Taxes. On March 3 the Planning and Development Committee requested additional information on the proposed scope of work prior to moving forward on proposed program and approving a contract modification. 2

4 II. Background Station Area Value Capture Project will build on current and future projects: Planning support for joint development projects Preparation of vision plans for Metrorail stations Development Related Ridership Study 3

5 III. Value Capture Scope Goal: Provide analytical support for the development of new revenue sources based on the benefits provided by the Metro system and the financial impacts of development on the Metrorail system Objectives: Develop tool for WMATA and local jurisdictions to assess the financial impact of development on the Metrorail system. Analyze the potential revenue of a commercial/federal access fee. 4

6 III. Value Capture Scope Effort A: Access Fee Description: Analyze the amount and type of federal/non-federal commercial space within an appropriate catchment area around Metrorail stations and assess the feasibility of various levels of access fees. The estimated cost of this work is $125K from the FY2005 PLSP operating budget. Summary of Tasks: Determine the amount of federal/non-federal space adjacent to Metrorail stations Determine operating cost/rental rates of space Determine financially feasible access fee level. Product: Analysis of the Revenue Potential, Regional Equity, and Federal Share of Access Fee Effort B: Impact Fee Description: Analyze the impacts of ridership growth on station improvements, such as fare gates, parking, elevators/escalators, etc, and develop a tool/model for WMATA and the local jurisdictions to assess the financial impacts of new development. Will use 3 to 4 stations to demonstrate the use of the tool. The estimated cost of this work is $175K FY2005 PLSP operating budget. Summary of Tasks: Determine the capacity of station improvements Determine the lifecycle cost of station improvements Develop tool for WMATA and jurisdictions to estimate the financial impacts of new development on WMATA Product: Development Impact Fee Model 5

7 IV. Next Steps Seek Board approval to modify Contract CO4018 with PB Consult to increase contract authority Complete work on Access Fee July 2005 Brief Board on Access Fee Recommendations August 2005 Complete preparation of Development Impact Fee Tool October 2005 Brief Board on Development Fee Impact Tool October