URBAN TRANSIT COST RECOVERY FEASIBILITY STUDY

URBAN TRANSIT IMPROVEMENTS ENHANCE THE VALUE OF THE PROPERTY THEY SERVE. TRADITIONAL URBAN TRANSIT FINANCING TECHNIQUES NEGLECT THIS POTENTIAL SOURCE OF REVENUE. BENEFIT ASSESSMENT DISTRICTS AND IMPACT MITIGATION FEES, BASED ON CONCEPTS ORIGINALLY DEVISED FOR MINOR IMPROVEMENTS (EG. SIDEWALKS), HAVE BEEN APPLIED EXPERIMENTALLY TO URBAN TRANSIT, BUT DO NOT GENERATE THE MAJOR FUNDING URBAN TRANSIT REQUIRES. A MORE ROBUST URBAN TRANSIT FINANCING APPROACH WHICH CAPTURES ENHANCED REAL ESTATE VALUES IS SORELY NEEDED. THE FEDERAL COST RECOVERY DISTRICT CONCEPT, DEVELOPED BY THE PROPOSED PRINCIPAL INVESTIGATOR AND FIRST APPLIED TO FEDERAL WATER RESOURCES DEVELOPMENT PROJECTS UNDER SEC. 916(A) OF THE WATER RESOURCES DEVELOPMENT ACT OF 1986, IS SUCH AN APPROACH. THIS STUDY WOULD EVALUATE THE APPLICABILITY OF THE FEDERAL COST RECOVERY DISTRICT CONCEPT TO URBAN TRANSIT FINANCING, RECOMMEND APPROPRIATE MODIFICATIONS TO MEET THE ECONOMIC, LEGAL AND INSTITUTIONAL NEEDS OF URBAN TRANSIT, AND IDENTIFY POTENTIAL DEMONSTRATION SITES.