With Phase 1 of the 10-year TransLink plan funded and work well underway, people are wondering where the money will come from for Phase 2, where some really big bucks get spent. Broadway Subway, Surrey light rail, Pattullo Bridge.
Minister Fassbender is proposing transit be (at least partly) financed by cashing in on the increase in land value and ensuing profits for developments built around transit stations. He assured BC municipalities that he is not planning to rob their piggy-banks.
Hello Broadway Extension; goodbye CAC’s. And welcome to a “transit-supporting levy” collected and administered by your Provincial Gov’t.
Note that the Mayors previously proposed a “region-wide development fee” to help fund transit. This fee would apply region-wide, with possibly higher rate for higher-density transit oriented developments. See page 35 of the Mayor’s 10-Year Vision Investment Plan.
Thanks to Frances Bula in the Globe and Mail.
Other cities, notably Metro Toronto, have considered this kind of “land-value capture” system for financing transit, as well. Some look to the City of Vancouver’s existing method of community-amenity contributions as a model. Vancouver negotiates with developers to give back community benefits equivalent to 75 per cent of the land-value increase they see when their land is rezoned.
Vancouver is especially likely to be concerned how its approach would be disrupted by a new transit levy.
The city collected $105-million in 2015 in community amenity contributions from developers who got rezonings. Half of that went to an affordable-housing fund, while the remainder was spent on heritage, parks, community centres and child-care facilities