Skip to Content
Streetsblog USA home
Log In
Development

A Modest Proposal: Ask Developers to Help Pay For Better Transport

3:45 PM EST on February 2, 2010

At today's debate on conservative support for transit, developer Chris Leinberger had a modest proposal for lawmakers who are desperately seeking new transportation financing strategies in an era of diminishing gas tax returns: Ask real-estate developers to pay for projects that will increase their profits.

leinburger_1.jpgChris Leinberger at last year's Walk21 conference. (Photo: M. Katz)

The concept is often referred to by the wonkish term "value capture," evaluated by the University of Minnesota in a groundbreaking study last fall. But Leinberger, an active player on land-use issues who founded the group Locus to help make urban planners part of the federal transportation debate, kept his case simple and accessible.

Many developers are willing to "share part of our financial upside" to ensure continued local investment in transit and mixed-use development, Leinberger said. "We in the private sector need to be at the table because, a) we need these systems, and b) we have the financial means to pay for it."

Leinberger's approach, which attracted vocal interest today from House transportation committee chairman Jim Oberstar (D-MN), would not solve the problem of uneven federal support for roads -- which are funded through an 80-20 split between Washington and local governments -- and transit, which tends to receive a lower 50-50 federal match.

"If we need to lower the federal match, that's fine," Leinberger said, as long as private-sector buy-in could be counted as part of a locality's contribution to transit.

Yet despite value capture's increasing presence in transportation financing debates, it has a long way to go before members of Congress could consider enshrining it in legislation. Increased property taxes are one established method of requiring land owners to contribute to transit construction, but cities such as Portland have attempted a largely opposite approach by offering property-tax exemptions to developers who build up in walkable areas.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday’s Headlines Are Tired Out

Whether it's from degradation or the dust resulting from wear and tear, it's becoming increasingly clear that tire and brake emissions are harmful, perhaps even exceeding tailpipe emissions.

September 22, 2023

Study: What Road Diets Mean For Older Drivers

"After a road diet, all motorists seem to drive at a rate that feels comfortable to a mildly-impaired older adult."

September 22, 2023

Op-Ed: Why Is Fare Evasion Punished More Severely than Speeding?

A.B. 819 offers California the opportunity to decriminalize fare evasion and replace punitive measures with more equitable approaches.

September 21, 2023

Talking Headways Podcast: Local Culture and Development

We chat with Tim Sprague from Phoenix about supporting local culture through development projects and the importance of sustainable development and transportation.

September 21, 2023

City of Yes Yes Yes! Adams Calls for Elimination of Parking Mandates on ALL New Housing

Mayor Adams today announced the historic end to one of the city’s most antiquated — and despised — zoning laws requiring the construction of parking with every new development.

September 21, 2023
See all posts