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<br />. <br /> <br />. <br /> <br />. <br /> <br />public authority purchases an asset, sells it to a private firm, and leases it back over time. <br />Because they reflect the value of the depreciation benefits to the private firm, the lease <br />payments are generally less than would be necessary to cover the original debt service. <br /> <br />Station-Area Development <br /> <br />Improved transportation access adds value to real estate. The areas around commuter rail <br />stations may become attractive development sites for housing, offices, and businesses that <br />serve commuters. Increasing density around transportation centers not only fulfills the <br />environmental and social goals of transit-oriented development, but also provides an <br />opportunity for public-private partnerships. In cases where the commuter rail operator or <br />local government owns the land around the station, opportunities may exist to derive income <br />from developers in the form of lease payments or land sales. In certain locations, private <br />developers may even be willing to fund the cost of the station as part of a larger development. <br /> <br />Tax Increment Financing <br /> <br />Communities could also fund infrastructure improvements within development areas around <br />stations through tax increment financing. In tax increment financing, counties, municipalities <br />or other units of government create districts in which revenues from future increases in <br />property tax revenues (resulting from increased assessed property values created by new <br />development and/or better transportation access) are used to finance improvements in the <br />district. <br /> <br />Northstar Commuter Rail Feasibility Study <br />March 23, 1999 <br /> <br />9-9 <br />Financial Analysis <br />