NJFuture Redevelopment Forum 13 Value Capture Bottigheimer


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  • Source of photo: Metro, http://www.wmata.com/about_metro/news/photo_gallery/
  • NJFuture Redevelopment Forum 13 Value Capture Bottigheimer

    1. 1. Value Capture in Practice The Dulles Metrorail Extension NJ Future Redevelopment Forum March 1, 2013
    2. 2. What is “Value Capture” Ballston 1980 Ballston 2001 Station Entrance StationEntrance Living
    3. 3. MetroIncreases Property Values • $235 billion in real estate value within half-mile of rail stations • Proximity to rail increases property values by 7-9%
    4. 4. WMATA 2040 Benefits• Region tax base would grow by $37 billion• $477 million per year in new tax revenue• $488 million per year in travel time savings• $169 million fuel purchase savings annually from 11 million fewer gallons of gas• $112 million per year in reduced auto accidents• Household savings of $1.8 billion for 60,000 cars• Reduced demand for 45,000 fewer parking spaces in the core saves $870 million• MAIN POINT: LOTS OF WAYS TO CREATE VALUE
    5. 5. Value: Alternative Investments Avoided+ 1 million auto trips/day+ 1,000 lane-miles neededto keep existing levels ofcongestion=• Equivalent of nearly 2 new Capital Beltways• 4-6 new lanes on Potomac crossings• ~ $6.7 billion
    6. 6. Value: Cost Avoided and Land Available for Productive Use 200,000 more parking spaces in core 166 =• Almost 170 blocks of 5- story parking garages • From 23rd to 12th • Constitution Avenue to R Street Price: $4.1 billion
    7. 7. Value: Economic Competitiveness“Companies are recruitingand targeting the nextgeneration of talentedworkers, the GenerationY/millennials… whoincreasingly prefer urbanlifestyles with masstransit.” – Urban Land Institute Source: Jeffrey Spivak, “Urban Office Momentum”, Urban Land, September 14, 2011
    8. 8. Dulles Extension• 23 Miles• 2 Phases• Phase 1 – Tyson‟s Corner 5 Stations• Phase 2 – Dulles Airport 6 Stations• Metrorail system expansion
    9. 9. Dulles Extension• Original Phase I project funding concept for project estimated to cost ~ $1.6 Billion: • 50% Federal New Starts Funds • 25% Funds from State of Virginia • 25% Funds from Fairfax County – Special Improvement District
    10. 10. Phase I Special Improvement District
    11. 11. Tyson’s Today• 46 million sf office and retail• 20K pop• 100K daytime
    12. 12. Tyson’s TomorrowDeveloper concepts forSpring Hill Road andWestwood Center Drive In 2050, 100K residents in Tyson‟s and 200K jobs
    13. 13. Phase I Special Improvement District• Tysons Corner /Wiehle Avenue • More than 6,600 businesses • $200 million in taxes • $100 million in property taxes• Rate not to exceed $0.29 per $100 of A.V.• Initial rate established at $0.22• Generates between $17 and $27 million annually depending on tax rate and assessed value
    14. 14. Phase I Special Improvement District• Authorized under Section 33.1 of the Code of Virginia• Petition to County Governing Board by owners of 51% land or A.V.• Land zoned commercial or industrial• Petition must include:  Boundaries of the district  Transportation improvements  Benefits of the transportation improvements• County Governing Board conducts public hearing• County Governing Board finds district beneficial and adopts resolution to create the district• Requires District Advisory Board (landowners) and District Commission (elected officials) to guide actions of the Special Investment District
    15. 15. Phase II Special Improvement DistrictIssues: Certainty of Phase II, and Ability to Upzone
    16. 16. Loudoun Tax District• $0.20 per $100 within ½ mile of station• Rate steps down farther away• Applies to new commercial and residential, not to current
    17. 17. Project Funding
    18. 18. New York Avenue, DC$35 million of$110 millionstation cost50% built out16 million sfadditionalcapacityAV$500M in „01$2.3B in ‟07
    19. 19. Take-aways• Value Capture is not Tax Increment Financing• Value Capture is two very separate things:  Creation of Value Through collaboration, design, investment  “Capture,” of value for infrastructure funding and finance Through existing public tools, negotiation – many ways to skin a cat• Tailor to project and place specifics• And as in great comedy, timing is key