FINANCING JOINT DEVELOPMENT: CHANGES IN THE TRANSIT PERSPECTIVE

Historically, joint development has meant that developers make contributions, either financial or infrastructure improvements or amenities, in recognition of the enhanced development potential afforded by transit access. Today more creative financing arrangements and a wider diversity of projects are possible. Transit linked joint development is taking place for three reasons: first, rising transit operating deficits have necessitated development of non-fare box revenues; second, more new transit systems are being developed and the older systems increasingly need refurbishing and third, development opportunities in downtown and suburban metropolitan areas have revived. FTA had shown a broadening flexibility in encouraging local transit agencies to entertain joint development proposals. Under FTA's Livable Communities and Innovative Finance Initiatives, a widening range of development projects has been approved for funding. Additionally, FTA is interested in encouraging local transit agencies to make joint development an integral part of their ongoing activities.