Quote:
Originally Posted by kyle_olsen
|
Whether locating near a transit station is the most socially optimal will depend on the individual or business in question. In my case, it is. For many others, it is not (they are unwilling to accept higher density living / cannot afford the cost of living near a station / do not work near a station / prefer to live downtown to be within walking distance of work). Also, it may not make sense to locate land-intensive businesses near transit stations.
Quote:
What you are saying is that: development is not affected by infrastructure unless there are other subsidies. That is not true at all. That is like saying the availability of roads does not increase auto dependent development around them. Would anyone build an office building in a field without roads or transit? In effect, that is what you are saying, that infrastructure without additional inducements do not shape development patterns. That transportation is not a factor in people's choices at all.
Are you saying that Toronto's downtown would have the same pattern of development without the Go Train and subway? Are you saying that New York would be a business mega cluster without 1000s of miles of commuter rail and 100s of miles of subway feeding its massive towers?
People will pay a premium for property with good rail transit access. They aren't receiving any extra inducements besides transit access. Most of the time they are even punished by disproportionally higher taxes due to being in a core city and having high property values.
|
All things being equal, people and businesses will prefer to locate near good transportation facilities. This will drive up land values. This does not apply just to rail transit stations. I’ve never seen a study for Ottawa, but I suspect land located near Transitway stations fetches a premium. Obviously, land located near an interchange will be worth more than similar land located far away from one.
Over the past one hundred years, the need to locate near rail facilities has diminished tremendously thanks to the advent of the automobile, the truck, the bus and highly-developed road networks. The need to locate downtown has also been diminishing, due in part to advances in communications technology. Only businesses and public sector entities that need to locate downtown (e.g., to take advantage of agglomeration economies) will do so and tolerate the higher rents. Most businesses and public sector entities, including the RCMP, do not fall into that category.
It is becoming clearer by the day that, for most users, conversion to LRT will result in a deterioration of service due to more transfers, longer waits (the trains will run less frequently) and lengthier walks (some key stations will be lost and it will take time to reach those underground stations). The only people that may win out are the few that pass through downtown on their way to a destination on the other side (e.g., someone travelling from Hurdman to Tunney’s Pasture).
Therefore, I doubt land values will go up. The only thing that could change this is the fact that the greatest deterioration in service will be felt by those living far away from the stations (i.e., they will lose their direct, no-transfer bus service). Some of these people may decide to move near the stations in order to minimize the increased inconvenience. This would drive up land values.