Unlocking Additional Value From Transit-Oriented Development

How Value Capture Strategies Can Help Transit Agencies Reinvest in Their Systems

While transit-oriented development is widely recognized for increasing ridership and fare revenue, it also creates additional land value around transit assets. That value often goes uncaptured.

In a recent article in Passenger Transport, published by the American Public Transportation Association, Nathan Macek outlines how tools such as special assessment districts and tax increment financing can allow agencies to reinvest a portion of that value back into their systems.

Macek, HDR’s infrastructure finance director in Washington, D.C., has more than 20 years of experience advising clients on funding strategies for complex transportation programs and long-term system performance.

In the article, he highlights the need for coordination with local and state governments, particularly in regions where transit agencies do not have taxing authority. Macek also notes that value capture strategies are most effective when considered during a project’s initial planning, alongside decisions about alignment, station locations and access planning.

When applied early and with intention, value capture can help agencies close funding gaps and expand the impact of their investments. More broadly, it helps align transit planning, funding and development decisions so projects deliver lasting economic benefits for the communities they serve.

Read the full article, “Realizing the Full Value of Transit Investments,” in Passenger Transport.