Urban Mobility India 2012 New Delhi. Dr. Adnan Rahman. December, Transportation leadership you can trust.

Transcription

1 Urban Mobility India 2012 New Delhi Dr. Adnan Rahman December, 2012 Transportation leadership you can trust.

2 Introduction TOD and real estate prices Financing TOD Conclusions 2

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5 A Complex Process Involving Several Actors and Multiple Trade-offs Mixed use, high density, pedestrian friendly environment for living, working, playing, and shopping with multi-modal transport connections Density Diversity Design Distance to transit THE 5 Ds OF TOD Destination Accessibility 5

6 Work 650,000 m2 office space 405 companies 30,000 direct jobs 15,000 spin-off jobs Health & Education 10,000 jobs in the healthcare & education sectors 20,000 students 350,000 patients/year 2 million visitors to exhibition centre Residential 95,000 m2 residential space 2,500 residences Retail chains are present & shops Hotels & restaurants Art & culture Green areas, parks & public spaces Recreational & sports facilites Mobility 70,000 station users/day 6 minutes to Schiphol airport 45 minutes to London Connected to Metro and Tram system Highway goes through (will be underground) the development Bicycle and pedestrian walkways crisscross the development 6

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22 VALUE The price of land before development is less than what it is after development of and investment in transport infrastructure Value capture is the identification and capture of land values resulting from public investments in infrastructure Start of development Potential value to capture Increase in value after development Value prior to development TIME 22

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24 TOD Improved Quality of Life Improved mobility Increased transit ridership Reduced traffic congestion and driving Fewer car accidents and injuries Increase in Housing Demand Increase in Demand for Office and Commercial Space Increase in Property Values Less spending on transportation, resulting in more affordable housing Healthier lifestyle, more walking, and less stress Increased foot traffic and customers for area businesses Reduced pollution and environmental destruction Less urban sprawl, increased incentive for compact development 24

25 Airport Line Urban Line TKO Line Tin Hau ,571-13, ,723 - Hang Hau Tsing Yi Source: Cervero, R., & Murakami, J. (2008)

26 Percent Change in Residential Prices Distance in km Source: Land and Real Property in Japan, Ministry of Land, Infrastructure and Transport 26

27 Premiums of 4 to 30 percent for office, retail and industrial buildings located near rail transit in Santa Clara, Dallas, Atlanta, San Francisco and Washington, D.C. 1 Premiums of 17% for properties near commuter rail stops in San Diego 2 In Chicago, housing near commuter rail stations has retained its value during recession better than regional average 3 1. California State University at Fullerton 2. Urban Land Institute 3. Re/Max Realty 27

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29 Private Partner Equity and Debt Public Partner(s) Capital Investment Tax and Non-Tax Revenue Generated by the Project Government Funding and Incentives Transit Station Operating Income Tri-Party and Public-Public Partnerships Infrastructure Funds 29 Source: John Stainback, A 10-Part TOD Finance Plan, Mass Transit Magazine

30 Transit-Owned Land PPP Transit Finance Districts Property Taxes Local Revenue Sharing Ground/Air leases Land Development Vertical Development Station connection fees Development partnerships Ownership dedication Route location auction Station location auction Rail concessions to private developer Developer infrastructure provision Quasi-public developer Benefits assessment district Infrastructure assessment districts Tax increment financing Parking districts Transit redevelopment districts Ad valorem realty tax Land-only tax Split tax rate Vacant/ underutilized land tax Windfall value tax Highest and best use tax Business taxes and fees Parking assessment districts Capitalized zoning changes Redevelopment agency partner 30 Source: Fleissig/Carlton. Moving Toward TOD 3.0 Rail-Volution 2010

31 1. Tax Increment Financing (TIF)» A special district created for the duration of development period,» Tax base frozen at predevelopment level (redevelopment would not occur without public investment).» Property taxes continue to be paid, but» Taxes from increases in assessed values (the tax increment) either go into a special fund created to retire bonds issued to originate the development, or leverage future growth in the district. 2. Land Value Tax - An additional tax solely on the land value of a property, without regard to improvements on the property. 31

32 3. Special Assessment Districts - An additional tax or assessment on the full value of a property, usually paid by property owners within a defined district Special Assessment District or Special Service Area that benefits from the improvement. 4. Development Impact Fee - A one-time fee charged to a development based on a justifiable relationship between the impact of the proposed development and the improvements it makes. 5. Joint Development (Public-Private Partnership) - A municipality or agency utilizes land it owns, often in the form of surface parking lots or excess rail right-of-way, for a redevelopment project and then shares profits. 32

33 3 private partners, the City and County of Denver, Colorado DoT (CDOT), RTD, and U.S. EPA Transit hub for 200k passengers/day Create a vibrant, pedestrian and transit-friendly neighborhood. Housing, retail, restaurants and offices on 20 acres of currently vacant land 42 acres of vacant land in downtown Denver. 30 year TIF TIFIA Federal Loan $145.6 RRIF Federal Loan $155.0 Land Sales $39.5 FasTraks $41.3 ARRA $28.2 TIP Funds $2.5 CO Senate Bill 1 $17.3 FTA 5309 Grant $9.5 CO DoT $45.3 Annual return of $3 billion 31,272 short-term construction jobs, 20,000 long-term jobs Vibrant neighborhoods 10 acres of public spaces Reduced congestion 33

34 Constructing a 23-mile Metrorail extension to relieve future congestion To Dulles Airport and to Tysons Corner, Reston and Herndon Cost is $5.2 billion, will be built in two phases. Commercial and industrial (not residential) real estate owners in the Phase 1 assessment zone around Tysons Corner will be charged an additional 22 cents per $100 of assessed value (in addition to normal property taxes) with a $400 million cap Phase 2 (build line through Reston, Herndon, and Dulles Airport), partly funded with a special assessment of five cents per $100 of assessed value in the Phase 2 zone in 2010, rising to 20 cents per $100 of assessed value in The Phase 2 special assessment is capped at $330 million. Virginia DoT transferred Dulles Toll Road to MWAA Toll rates increased by $0.25 cents three times Toll revenues will fund $2.8 Billion, 52% of project Remainder in matching state and federal funds` 34

35 Phase 1 - $1.6 Billion: Replacing old Transbay Terminal and new bus storage facility (completed by 2017) Phase 2 - $3 Billion: Extending Caltrain and California High-Speed Rail underground into the new downtown Transit Center (completed by 2018) Ongoing: Creating a new neighborhood with homes, offices, parks and shops in the 40 acres surrounding the new Transit Center 2,600 housing units (35 percent affordable) 1.2 million sq. ft. of office/hotel space 60,000 sq. ft. of retail Project will reduce vehicle miles traveled by 260,000 miles per day Reduce emissions by 28,200 tons per year. The project will generate more than 125,000 construction jobs and 27,000permanent jobs 35

36 Property tax 1400 SF Property taxes San Mateo property taxes 5 22 AS Transit capital 39 Other local funds 7 Regional bridge tolls Transportation imporvement program Land sales Federal transit and railroad administrations TIFIA loan ARRA HSR 400 Special assessment?? Impact fees?? Total

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38 TOD» Is a process, NOT a project» Takes time to realise» Is about development and value creation, and NOT just about financing a gap in project funding Value capture mechanisms offer an avenue to finance a development process that would otherwise not be possible Involvement of stakeholders is essential to success Requires a systems approach to develop an integrated solution 38

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