JTLU Volume 5, No. 1 (2012)

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Table of Contents:
  • Introduction to the Special Issue on Value Capture for Transportation Finance, pp. 1-3
  • Joint Development as a Value Capture Strategy in Transportation Finance, pp. 5-17
  • Rail Integrated Communities in Tokyo, pp. 19-32
  • Prospects for Transportation Utility Fees, pp. 33-47
  • Financing Transportation with Land Value Taxes: Effects on Development Intensity, pp. 49-63
  • The Value Capture Potential of the Lisbon Subway, pp. 65-82
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      Introduction to the Special Issue on Value Capture for Transportation Finance
      (Journal of Transport and Land Use, 2012) Zhao, Zhirong Jerry; Levinson, David
      This article introduces vol. 5, no. 1 issue of Journal of Transport and Land Use. This special issue includes 5 articles on value capture strategies used in transportation finance.
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      Joint development as a value capture strategy for public transit finance
      (Journal of Transport and Land Use, 2012) Zhao, Zhirong Jerry; Das, Kirti Vardhan; Larson, Kerstin
      Synthesizing relevant experiences in US and some Asian countries, this article reviews joint development as a value capture strategy for funding public transit. The review starts from the concept of joint development in transportation, its rationale, and the extent of use. We then provide a classification of joint development models with respect to ownerships and transaction methods. These models are illustrated with case examples from multiple countries. After that, we assess the efficacy of joint development with a set of criteria for transportation finance evaluation, including economic efficiency, social equity, revenue adequacy & sustainability, and political & administrative feasibility. Finally, we conclude and provide recommendations for policy consideration.
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      Rail integrated communities in Tokyo
      (Journal of Transport and Land Use, 2012) Calimente, John
      Tokyo’s railway station areas are models of transit-oriented design. To differentiate them from transit-oriented developments (TOD), the term rail integrated community (RIC) has been created to describe these high density, safe, mixed-use, pedestrian-friendly developments around railway stations that act as community hubs, are served by frequent, all-day, rail rapid transit, and are accessed primarily on foot, by bicycle, or by public transit. Japanese private railway operators have been instrumental in creating these RICs. Though they receive little financial support from the government, private railways in Japan operate profitably by diversifying into real estate, retail, and numerous other businesses. Tokyu Corporation is used as the case study to exemplify how government policy and socioeconomic context contributed to the successful private railway model. Ten indicators, such as ridership, population density, and mode share are used to analyze two stations created by Tokyu to demonstrate how this model is manifested in Tokyu’s rail integrated communities.
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      Prospects for transportation utility fees
      (Journal of Transport and Land Use, 2012) Junge, Jason; Levinson, David
      Transportation utility fees are a transportation financing mechanism in which the network is treated as a utility and properties are charged fees in proportion to their network use, rather than according to their monetary value as in property taxation. This mechanism connects the costs of maintaining the infrastructure more directly to the benefits received from mobility and access to the system. The fees are based on the number of trips generated and vary with land use. This paper evaluates transportation utility fees as an alternative funding source in terms of efficiency, equity, revenue adequacy and political and administrative feasibility. The experiences of cities currently using utility fees for transportation are discussed. Calculations are included to determine the fee levels necessary for transportation maintenance budget needs in three sample cities and a county in the Minneapolis-St. Paul (USA) metropolitan area. Proposed fees for each property type are compared to current property tax contributions toward transportation. The regressive effects of the fees and the effect of adjusting for the length of trips generated are also quantified.
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      Financing transportation with land value taxes: Effects on development intensity
      (Journal of Transport and Land Use, 2012) Junge, Jason; Levinson, David
      A significant portion of local transportation funding comes from the property tax. The tax is conventionally assessed on both land and buildings, but transportation increases only the value of the land. A more direct and efficient way to fund transportation projects is to tax land at a higher rate than buildings. The lower tax on buildings would allow owners to retain more of the profits of their investment in construction, and would be expected to lead to higher development intensity. A partial equilibrium simulation is created for Minneapolis, Richfield and Bloomington, Minnesota to determine the intensity effects of various levels of split-rate property taxes for both residential and nonresidential development. The results indicate that split-rate taxes would lead to higher densities for both types of development in all three cities.
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      The value capture potential of the Lisbon subway
      (Journal of Transport and Land Use, 2012) Martínez, Luis Miguel Garrido; Viegas, José Manuel
      This paper tries to build on traditional value capture measures, to estimate the potential of some of these mechanisms for the Lisbon subway by examining their ability to mitigate the system’s operation and development costs. The study focus is on the municipality of Lisbon where this system mainly operates. This research uses spatial hedonic pricing models of the real estate of the region, calibrated on previous stages of the study, to assess the extent to which transportation infrastructure is currently capitalized into the real estate market. The paper uses a Monte Carlo simulation procedure to estimate a synthetic population of residential and non-residential properties that matches the census blocks statistics, measuring the subway valuation for each synthetic property and aggregating the results for the whole municipality. This potential value capture estimate is then used to estimate an annual tax that could be charged under different value capture measure configurations (i.e., land value tax, special assessment). The results suggest that there is significant potential for the use of this instrument to finance the subway infrastructure.