13
Public Sector Roles in TOD Eric Rothman President HR&A Advisors, Inc. September 2014
| Date post: | 24-Jun-2015 |
| Category: |
Economy & Finance |
| Upload: | railvolution |
| View: | 243 times |
| Download: | 1 times |
Public Sector Roles in TOD
Eric RothmanPresident
HR&A Advisors, Inc.
September 2014
Public Sector Roles in TOD: Eric Rothman
LOSS
InfeasibleFeasible
COST
PROFIT
The private sector can deliver TOD, but the public sector may need to
intervene to ensure feasibility.
REVENUE COST REVENUE
Public Sector Roles in TOD: Eric Rothman
Certain market characteristics of TOD locations can create barriers to
development feasibility.
Infeasible
Cost of land assembly
Insufficient demand
Cost of brownfield remediation
Market barriers to TOD
LOSS
COST REVENUE
Public Sector Roles in TOD: Eric Rothman
Cost of land assembly
Policy barriers to TOD
Insufficient demand
Cost of brownfield remediation
Commuter parking requirements
Public realm requirements
Affordable housing requirements
Market barriers to TOD
Government aspirations for TOD typically increase costs.
Infeasible
LOSS
COST REVENUE
Public Sector Roles in TOD: Eric Rothman
There are a range of tools that government can deploy to improve the
feasibility of TOD.
Provide
InfrastructurePartnerRegulate
Economic
DeveloperRegulator
Incentivize
Rezone to higher
density
Reduce parking
requirements
Increase service
Create public realm
Build stations
Equity investment
Capital or
operating subsidy
Anchor tenancy
Tax abatement
Low cost loans
Grants
Tax increment financing
Public Sector Roles in TOD: Eric Rothman
Increase
service
Build stations
Create public
realm
Provide
Infrastructure
First and foremost, government should create the T in TOD, improving
revenue potential for the D in TOD.
Economic
DeveloperRegulator
PartnerRegulate Incentivize
Public Sector Roles in TOD: Eric Rothman
The creation of the Hudson-Bergen Light Rail, a government funded
project, improved development economics along NJ’s “Gold Coast.”
Public Investment
1996-2006
$2.2 BILLION
Private Real Estate Investment
Housing Units
10,000
$5.3 BILLION
Hudson Bergen Light Rail
Public Sector Roles in TOD: Eric Rothman
Provide
InfrastructureIncentivize
Tax abatements
Grants
Low cost loans
Tax increment
financing
PartnerRegulate
Incentives can also improve development economics.
Economic
DeveloperRegulator
Public Sector Roles in TOD: Eric Rothman
MassWorks Infrastructure Program provided $15 million in gap financing for
a $100 million TOD in Brockton, facilitating land assembly and site prep.
55,000 SQ FT
New commercial space
New residential (25% affordable)
214 UNITS
MassWorks
Conventional finance
New Markets Tax Credits
Enterprise Block, Brockton
Project financing
Public Sector Roles in TOD: Eric Rothman
First office towers under construction;
subway to open early 2015
Aggressive rezoning for commercial
and residential sites, up to 33 FAR
New York City deployed a wide-ranging toolkit for redevelopment of
West Midtown to create Hudson Yards, a transit-oriented district.
Extension of #7 subway line and
creation of new boulevard through
synthetic TIF
Uniform Tax Exemption Policy -
property tax abatements of up to 40%
for “first-move” office towers
10 Hudson Yards
Public Sector Roles in TOD: Eric Rothman
Provide
InfrastructureIncentivize PartnerRegulate
Through direct investment, the public sector can facilitate TOD.
Economic
DeveloperRegulator
Equity
investment
Capital or
operating
subsidy
Anchor
tenancy
Public Sector Roles in TOD: Eric Rothman
At Hoboken Terminal, NJ TRANSIT will invest its land upfront in
partnership with LCOR as part of a major TOD project.
Land
Owner/InvestorLand Developer
Hoboken Terminal and Rail Yard Redevelopment
Vertical
Development
Rights
Land Proceeds
