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.
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