Value capture is often seen as a strategy that can help recover part of the cost of new transit infrastructure or station area improvements, which can then serve as the basis for new TOD. TOD can also help to bolster value appreciation, which in turn can generate increased public revenues that can help lower the overall tax burden for residents and be used to fund community investments.
For transit agencies, value creation can occur in two key ways. One, through generating new ridership through TOD projects along the corridor. And secondly, if the transit agency enters into lease or sales agreements with excess land owned by the transit agency through some type of formal joint development process. Typically, extra right of way is purchased when constructing a new transit line that can be used by the transit agency for joint development purposes.
The housing, development and building communities have increasingly recognized the growing market for urban living. Housing near transit is a growing market niche for both cities and suburbs. Before 1987 the Urban Land Institute ranked "24-hour cities" as the worst opportunities for investors and "edge cities" were ranked as the best. Bust since then investments in 24-hour cities have consistently outpaced investments in "9-to-5 cities" and in edge cities. This change in demand has a strong potential to increase the value capture potential of new transit investments.
- Download a copy of the pdf on Value Capture here.
- View a powerpoint describing Value Capture. [ Download PPT ] [ View Slideshow ]
- Review the findings from the TOD Workshop Series session on Financing TOD and Public/Private Partnerships.
- The University of Minnesota Center for Transportation Studies has identified eight potential strategies to raise funding for transportation infrastructure investments through value capture. Learn more and read their reports on this work here.
CTOD has been studying the potential for Value Capture across the country. A report will be released in 2010 that goes over findings, including a case study on the Hiawatha Corridor. Check back to download a copy of the report when it is released.