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Using Value Capture to Build Free Metro Rail in Sydney

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Using Value Capture to Build Free Metro Rail in Sydney Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett Using Value Capture to Build Free Metro Rail in Sydney Abstract / Summary Response: Overall, an enquiry such as this is necessary for no other reason than to ask how best this can be done, and what projects should be built that most advantages our cities and the nation as a whole. I hope to address these two issues in this submission. I only refer to Sydney for urban metro rail cross-link suggestions and value capture. My overall reaction to the proposal is that, given currently exorbitant Australian and Sydney house prices, this proposal should be expedited as soon as possible in order to do precisely what it says: capture the value. Secondly, economies of scale determine that only urban metro and rail projects will achieve value capture. People want to live next to a railway station, not a motorway. Summary of Value-Capture Process: Invest and Recoup The process is simple: government utilises budget, superfunds and credit to invest in long term projects, and then recoups the revenue back. 1. Government builds train line. 2. Government rezones along the route for high density, with controls on quality, floorspace, acoustics and soundproofing, balcony size and railing height, amenities and artistic architectural design, but a liberal approach to height. 3. Government taxes development according to its proximity to the train station. Current landowners can negotiate price with a floor and ceiling price to be determined (e.g. at 3x market value plus 4 free apartments of equivalent total land area of 3x the size, then owners must accept.) 4. Money received from tax on developers pays for train line. Ongoing fare revenue also pays for train line. Essentially: build line, rezone adjacent area, tax developers, recoup cost. 1 Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett The Terms of Reference for Value Capture addressed in brief Unfortunately I am not able to expand on all of the terms of reference owing to a lack of time. I summarise my responses as follows, and address a few of the categories in more detail below a. Identifying the likely impact on property values and property-related tax revenues as a result of transport connectivity; YES VALUES AND REVENUE WILL GO UP b. examining options for the application of value-capture mechanisms to sustainably fund transport infrastructure; SEE ABOVE ‘INVEST AND RECOUP’. FOR THE CASE OF SYDNEY, CREATE CROSS-LINKS THAT CONNECT EXISTING RADIAL LINES BUT DON”T GO TO THE CITY, E.G. HURSTVILLE-STRATHFIELD (see below) c. considering means, including legislative and administrative actions, by which government and the private sector can best utilise value-capture funding mechanisms; SEE ABOVE ‘INVEST AND RECOUP’ d. considering the appropriate roles of each of the three levels of government in establishment sustainable value-capture funding mechanisms for planning and infrastructure construction; THE 3 LEVELS NEED TO HAVE A MECHANISM TO ENABLE VC TO WORK FLUIDLY. HOWEVER, NO COMPULSORY ACQUISITION IS NECESSARY WHEN REZONING SUBURBS WHERE EXISTING LAND OWNERS ARE OFFERED VERY ENTICING BENEFITS, E.G 3x MARKET VALUE FOR THEIR LAND + FREE APARTMENTS PACKAGE. e. examining any international experiences of the delivery of high speed rail projects by value-capture methods and the impact of high speed rail on city and regional development; SAME AS c. ABOVE. SEE ALSO BELOW. f. examining methods of implementing value-capture in both greenfield and brownfield developments; and THERE SHOULD NOT BE ANY GREENFIELD DEVELOPMENTS. SYDNEY IS ONE OF THE LOWEST DENSITY CITIES IN THE WORLD. THIS IS THE ENTIRE PROBLEM. REZONE BROWNFIELD AND EXISTING LOW DENSITY TO MEDIUM AND HIGH DENSITY. GET RID OF THE FIBRO ASBESTOS. g. examining ways to capture future value opportunity when reserving transport corridors. HAVE OPEN AND ONGOING COMMUNICATION LINES WITH THE CITIZENS OF THIS COUNTRY SO THAT YOU CAN ANTICIPATE WHERE GROWTH IS OCCURRING AND CAPTURE IT BEFORE IT BECOMES TOO EXPENSIVE. 2 Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett Two Priority Rail Line Proposals for Value Capture in Sydney. Priority 1. The Hurstville – Strathfield Line • Hurstville-Strathfield tunneled line alignment: (Blakehurst stabling) - Hurstville – Roselands - Beverly Hills –Wiley Park – Belfield - Enfield/Croydon Park – Strathfield – (Rhodes stabling) Alternatively, blend the line in with the Northern Line, and continue up to Hornsby. At the Blakehurst end, a light rail can continue to Miranda to connect with the Illawarra line and Cronulla peninsular. Value capture opportunities: high rise at each of the stations indicated below. Estimated Cost of the project for: tunneling, outfit of lines, new stations, connection to existing stations: $2 billion. 100,000 apartments built along the line. Infrastructure tax of $20,000 per apartment. 100,000 x 20,000 = $2 billion recoup Outgoings: $2 billion Income: $2 billion = FREE RAIL LINE 3 Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett Figure 1: Sketch of Hurstville-Strathfield Line showing approximate location of stations This line intelligently ties together no less than FIVE currently disconnected lines. The line goes a considerable way to addressing the current disconnected nature of the Sydney train network, as well as addressing the congestion on Metways 3 and 6, for which WestConnex Motorway is offered, I argue under flawed assumptions, as only a partial and inadequate solution. The Hurstville-Strathfield line also radically doubles the network interconnectivity of the Sydney Train network. The line is not about travelling from Hurstville to Strathfield in 12 minutes, although this will be possible as a result. Let us be clear on this issue. The line is about connecting together five lines, so that every single station on every single one of those lines becomes connected. This is the ‘game changing’ nature of this line. The notion of interconnectivity and grid formation on a rail network is well treated in the following document. https://www.griffith.edu.au/__data/assets/pdf_file/0005/281552/ip15-dodson-et-al-2011.pdf 4 Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett Figure 2: Network Map with Hurstville-Strathfield line showing overall configuration and connectivity (stations not shown) 5 Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett Figure 3: Geographical map of relevant HSL line configuration in context of the whole network As can be seen by Figure 3, The Hurstville-Strathfield line is about connecting 4 disconnected parallel lines together, which in turn connect to a 5th, the Northern Line that goes up to Hornsby. The rationale of mirroring the congested roads of Fairford Road and King Georges Road, which form the main north-south arteries of the city, and comprise together between 10-14 lanes of almost 24 hour a day north-south traffic, is not in fact the foremost consideration of this line. Rather it is the weaving together of the network itself, so that it becomes a cohesive whole. Travel times from Hurstville to Strathfield, currently over an hour if not travelling directly from those two stations, would be reduced to 12 minutes. The entire area of South Sydney would have access to the rest of Sydney by rail without having to make a circuitous and unnecessary journey to the city. For instance, Sutherland and Parramatta would be connected in a fairly straightforward way. Cronulla peninsular would be connected through a grid step to the West, followed by North, followed by West – a direct and logical route. There are countless other examples where all stations along all lines would be significantly more closely connected. 6 Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett Figure 4: Sydney geographical line configuration showing ‘before’ and ‘after’ effect of Hurstville-Strathfield Line incorporation The disconnected nature of the current network configuration can be easily seen in the left hand diagram of Figure 4 above. The right hand diagram shows a quantum improvement in connectivity: from 11 connecting nodes to 15 connecting nodes: almost a 50% increase for the entire network achieved with a single 9km rail line. 7 Submission to House of Representatives Enquiry (February 2016): The role of transport connectivity on stimulating development and economic activity yanis garrett The following table shows the 5 lines comprising 107 existing stations that would become connected (stations directly on the HSL are shown in purple), as if they were on the same line, by the presence of a metro HSL and regular services for 20 hours a day: Illawarra & East Hills / Bankstown Line Inner West Line Northern Line Cronulla Lines Airport Line (22) & Western Line (15) (25) (13) (32) Waterfall Holsworthy Erskineville MacDonaldtown Strathfield Heathcote East Hills St. Peters
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