The Benefits of Transit Oriented Development

There are significant benefits for all participants in Transit Oriented Development (TOD). The grant funding programs are specifically designed to provide economic and social incentives that will encourage transit agencies, developers and municipalities to work together in order to realize the many benefits discussed below.

• Higher Revenues - Transit agencies realize increased ridership and fare revenues when other development is integrated with transit station projects.
  


• New Revenue Streams – By engaging in Joint Development projects with developers, new long term revenue streams are created from the joint activities.
  


• Safer Transit Facility Environment – TODs tend to create a more active and vibrant environment that provides an “eyes-on-the-street” safety factor for the transit facility and the surrounding development.
  


• More Accessible Facility – By incorporating the transit facility into a larger and more diverse development, access to the transit system is enhanced.
  


• Transit Becomes High Profile - By blending the transit facility into the community, transit takes on a higher profile position and level of importance in the community.
  


• Long Term Results - By integrating land use and transportation planning, the region and transit system will increase their chances for Federal participation in future transit capital investments. Over the long haul, the region and transit agency are more competitive when they can offer many types of livable communities.
  

• Increased Property Values - Developers that build near transit often experience increases in property values, building rents, and building occupancies. An estimated one-third of housing demand in the next twenty years will be in “24-Hour TOD Neighborhoods”. Currently, there is an extreme shortage of TOD developments, and, as PricewaterhouseCoopers has stated in their Emerging Trends in Real Estate 2002 publication, “24-Hour” places are the best real estate investment locations.
  


• Higher Profits – More valuable property yields higher revenues. Additionally, developers participating in Joint Development projects can enjoy the benefit of many “soft costs” being covered under various TOD grant programs. The combination of a lower cost project with higher property values provides increased profitability in both the short and long term.
  


• Preferred Location – As more and more baby-boomers and young professionals prefer convenient “24-Hour Neighborhoods”, employers and businesses are following individuals and desire to locate in TOD developments too. This enables employers to attract employees and their jobs are more accessible from across the region.
  

• Increased Revenue - Local governments profit from increased sales tax and property tax revenue generated by development near transit as well as a more efficient use of public services and infrastructure.
  


• Economic Revitalization – TOD can be the catalyst to revitalize aging downtowns, declining urban neighborhoods and brownfields, thereby helping to reduce crime, enhance tax revenues and improve the quality of life in the community. These revitalized traditional towns preserve the investment a community has already made in public infrastructure, historic assets, community institutions, and social networks.
  


• Conserve Land and Open Space – Because TOD consumes less land than low-density, auto-oriented growth, it reduces the need to convert farmland and open spaces to development. Environmental resources are preserved and protected when development is focused in existing communities already effectively served by transit with infrastructure basically in place.
  


• More Transportation Choices - More mobility choices are created, especially in congested metropolitan areas. This allows young people, the elderly, people who prefer not to drive and those who don’t own cars the ability to get around.
  


• More Affordable Housing – Costs for land and housing structures can be significantly reduced through more compact growth patterns. TOD can supply more affordable and more easily accessible housing.
  


• Reduced Pollution and Energy Consumption – By reducing the use of automobiles, households significantly reduce their rates of air pollution and energy consumption.
  


• More Disposable Income – Next to housing, transportation is the second largest household expense. By driving less, especially with the escalating price of gasoline, parking, tolls, etc., thousands of dollars can be saved annually by each household. Household driving rates can be reduced by 20-40% for those living, working and shopping by transit stations. As vehicle miles traveled go down, so do vehicle-related costs such as wear and tear on streets and highways, damage due to accidents, etc. Also, compact and infill development patterns provided by TOD verses “sprawl” can reduce infrastructure costs for expanding water, sewage and roads by up to 25%.
  


• Safer and Healthier Community - Walkable and bikeable communities promote healthy lifestyles for residents and a more active “eyes on the street” safer environment throughout the day and evening. Properly designed pedestrian facilities also increase safety by decreasing accidents involving pedestrians and automobiles.