Covering the environment, engineering, technology, and economics
Monday, March 9, 2015
From an article on a new funding model for public transit in Quebec:
"Fanie St-Pierre, a spokesperson for the Agence métropolitaine de transport, said the agency is in the process of studying funding models, including land-value capture, in order to raise money for an extension to the métro’s Blue Line.
The idea behind land-value capture is that a transit line adds value to the homes and developments that are close by. Developing a transit line, therefore, brings more wealth to those who had already bought their homes in the area. Land-value capture allows the agency developing the transit infrastructure to get a share of some of the value it has created.
Last October, the National Bank of Canada published a study that showed land-value capture could recoup up to 35 per cent of the cost of the West Island train line, and the light-rail line over the Champlain Bridge.
That study was based on a 2011 AMT study that showed that land values in Montreal were 13 per cent higher within 500 metres of a métro station, and 10 per cent higher within a kilometre.