What steps can you take to ensure that a transit-oriented development project is financially viable?

In my experience delivering a successful TOD requires a blend of vision, market reality, tools to fill the gap between the vision and market reality, and public and private sector leadership to move to it implementation. Too many times people are content to have a consensus around a plan and lose sight of the fact that a plan is simply a starting point, not the conclusion. The built TOD plans I’ve lead typically had a real estate economist as a key part of the team to help us understand the degree of “lift” required to make the plan feasible. Then we could adjust accordingly and mobilize the financial and regulatory tools necessary to fill the gap between what was desired and what was possible.

Before TOD Project, the most important thing to understand the Transport System in TOD. where it starts, where it terminates, how far it is spread out in other parts of city. How integrated it is with other transport modes. what exactly is getting connected with it, is it connecting residential, commercial, Office hub etc. land ownership status in the TOD Zone. provide additional benefits interms of enhanced FSI to developers and charge premium along with recurring part stamp duty collections. last is make policy, legal and institutional framework under the existing provisions for capturing land value by changing provisions of land use and ensuring the revenue flows back in to the system.

All good advice to which I’d add in line with the Hong Kong model: transit should own the air rights and block faces/interiors in the adjacent to the transit station, contingent on including 30% of dwelling units as both affordable and accessible according to universal design standards.

From my experience with TOD, if the developer is motivated and has initiated the request for a connection to the system, then the transit agency should enter into an agreement with the developer to articulate the terms and conditions and to construct the connection per the agency's design standards. The developer has already completed the market analysis and should be encouraged to connect to the transit system.

The viability of any TOD development is dependent upon the transit system it is connected to, the land use regulations of the city, and the cost/convenience of alternative transport modes. If you can get to work in less time than it takes to walk, bike or drive, but not to grocery stores, day care, doctor appointments or parks & wild lands on the transit network, then the household may still need to own a car which makes TOD less feasible. The system needs to be robust enough to meet nearly all the household transportation needs - a significant problem for most transit systems. Without this, TOD is simply a lifestyle statement for which there will always be a limited market, but likely not sufficient for large-scale feasibility.

Since this is a transit oriented development plan, transportation sources are critical to ensuring positive outcomes. Often intertwined with “smart growth,” TOD needs to have reliable sources of public transit that are capable of moving numbers of residents to service jobs outside the immediate area. It is also critical to a successful project that costs for the current residents don’t skyrocket, causing massive displacement, especially during the transition period. Too often transit hubs lead to new up-zoning which create a new class of resident. Planners do not spend sufficient time studying the unintended consequences of TOD and the plight of those who will be affected.

In my view, ensuring the viability of a transit-oriented development (TOD) project involves careful planning, analysis, and consideration of various factors like comprehensive feasibility study, collaboration with all stakeholders, zoning and regulatory support, mixed-use type of Development, thorough market and risk analysis, community engagement, but most importantly monitoring and adaptation to ensure a sustainable design

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From what I have seen in HK/Signapore and Melbourne (and -ve examples in Sydney) it requires long term land use planning and town planning near or along the route.

To enable a stream of funds to be available, it is essential that the zoning of the area establishes part of the revenue obtained from taxes to be used in the funding of the transit operation, be that public or private. Only with an influx of cash will the operator be able to plan the business accordingly and the project will be less burdened by the ever insufficient revenue of fares exclusively.

Consider using value capture techniques to fund the project. This has been used successfully in the global South as well as in London's Crossrail to provide partial project funding.

As far as I am concerned, in order to develop urban areas based on public transportation nodes, the first step to boost this concept is to convince the urban authorities that this will be beneficial both to the city and to the investors. As the capital required to develop a rail infrastructure is very considerable and taking into account the point that the revenue from passenger sector cannot offset the expenses, we need to convince the urban authorities and mayors to give as much as required grants and concessions to investors to maximize the land value and let them reap out the benefits of urban development around the transportation nodes. In such case, the projects will be financially justified.

All too often the developer, who has spent weeks, months and sometimes years cobbling together funding for a project, makes profit the driver of success. Funders need to oversee their investments to ensure project outcomes are met before profits are realized and that the promises made to the community are kept. This is an excellent opportunity for positive PR for the developer and should be used when appropriate and accurate.

Securing funding for innovative projects like #SMART_ECI involves diverse strategies. Key methods include public-private partnerships ( #P3s ) for private investment leverage, exploring local funding and regional partnerships, adopting creative funding approaches used in smart cities, utilizing state-owned assets and secondary markets, and engaging with Multilateral Development Banks for sustainable development financing. These strategies offer a blend of traditional and innovative financing options.

Since its inception which preceded the post WWII housing boom in the U.S., TOD has traditionally been viewed as an exceedingly efficient municipal planning approach. The downside is that the customary funding model for the construction and operation of a mass transportation systems usually involves a search for grants, loans, bonds, tax credits and the like. The fact of the matter is, as the Hong Kong private MTR system has shown, is that even in densely populated cities, these type of projects take some 15-20 years to pay off.

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Including stakeholders in the planning, design, and implementation is critical to the success of any and every project. Too often stakeholders are simply presented with a development rather than affording them the opportunity to discuss and negotiate.

All the above are important. I have 3 keys a) Engaging with, understanding and influencing local planning authorities and decision makers is vital to enable not only multi modal development of transport infrastructure but the kind of networks that enhance local communities by connecting them to multi modal transport opportunities b) understanding the role of for example cycle super highways but also the links to, and role of, active travel in creating the vibrant communities that are increasingly attractive where valuing community and low carbon living are aspirant. c) engagement enabing this should be thorough and in depth, engaging stakeholders defined by interest and also diverse groups of various socio economic and identity types.

Effective stakeholder engagement in projects like #SMART_ECI is key. Strategies include identifying and prioritizing stakeholders, tailoring communication to diverse groups, ensuring inclusivity, focusing on long-term project value, maintaining two-way communication and flexibility, encouraging continuous participation, and tracking interactions. These approaches ensure all views are considered, enhancing project success and stakeholder satisfaction.

Yes this is always a very critical aspect to manage any project. we should always engage all the stake holder timely even before that we should be very clear to identify the stake holders so we do not miss any stake holder so later it will helps to mitigate the risk as we have bordered all stake holders

Un proyecto de este tipo requiere un compromiso dedicado, por tanto medible, de partes interesadas. La contribución al proyecto a través de la asignación de momentos y responsabilidades, permite definir y medir este compromiso; de esta forma se puede evitar dentro de unas especificaciones predeterminadas en base a criticidades, los impactos y riesgos que conllevan a esa falta de seguimiento y/o compromiso de todas las partes.

So important to balance the trade-offs between density, diversity, design, and parking to ensure the existing history of the area is not completely lost. When developing a site and the strategies to optimize the site layout, a very delicate balance is required when locating the highest-density and mixed-use buildings near the transit station. The idea of TOD is much newer than most structures slated for removal and carry with them elements of the area’s history. Also, without some strategy for housing for current residents, that maintains a significant core, success cannot be declared. Displacement is not a winning strategy or a community amenity.

Most developers aim to maximise plot ratio and density on any given site. This is ingrained; any compromise appears to be a failure on potential returns. Architects should propose solutions that seek a balance - although mostly just ignored by developers - to the equation. ‘Priorities’ are always a question of perspective. Whose?

Optimizing a Transit-Oriented Development (TOD) site layout is crucial for its success. Key strategies include high-density building placement near transit stations, pedestrian-friendly designs, and diverse public spaces, while minimizing parking supply. Adapting to local contexts and continuous research are vital for effective planning. An inclusive approach, engaging African American, Muslim, and Christian communities, and creating cultural and economic opportunities is essential. This holistic strategy ensures the TOD project's effectiveness and supports social cohesion and diversity.

Optimizing a Transit-Oriented Development (TOD) site layout is crucial for its success. Optimization will lead to optimize the overall cost of project as well and to avoid the changes in layout on later stage which will add the contingency funds of the project.

More importantly, the typology mix needs to fit demographics of surrounding site. Locating highest density mixed use buildings near the transit station may not necessarily be ideal. The component mix need to be appropriate. I have seen many TODS with proposed highest density of mixed use buildings adjacent to or above transit stations, with low occupancy. In some, apartments are taken up by students and / or foreign population needing cheaper accomodation. A sound buffer around transit buildings as well as Last Mile accesibility to surrounding key catchments are prerequisites to good TOD design.

Fixing the TOD around specific corners of development will make the planned TOD grow in a certain direction and will exclude it from uncertainties. One such example could be the Real Estate Development Pockets around which TOD can be developed which will also merge the urban fabric and improve the subsequent services related to the TOD.

Alma Gates let me offer an aside from the perspective of being an early Portland TOD pioneer. Portland today has its share of challenges like many cities post-covid. TOD in Portland is doing just fine. TOD has become part of the DNA for how transportation, land use and regional growth management vision are linked together. Light rail and the streetcar have become an armature for urban and suburban TOD projects. The list is extensive: the Pearl District, South Waterfront and Hassalo on Eight along the streetcar. Lents Town Center, Orenco, the Platform District and the Crossings along light rail. Thousands and thousands of dense homes, jobs and a network of walkable streets and open spaces are just a slice of Portlands TOD legacy.

So many TOD's forget about the T. The transit offered has to be of the frequency and quality that make it a viable option. This is especially true in cities trying this for the first time, or some of the less dense metroplexes. If the T is done right the OD will come with it.

Portland, OR was viewed by many as the city with the right approach and answers. In the ten or so years that have passed, large cracks in the plan walls have begun to surface. While this appeared a monumental success story, it might afford similar opportunities to see what didn’t work..

Here are some things that Governments can do to encourage TODs (from a recent research report for the West Australian Property Council by SMEC and TBB): Have a clear vision. Create amenity. Offer built form choice. Consider offering financial incentives to developers. Streamline the planning approvals process. Provide as much certainty as possible- I.e. de-risk the project. Collaborate widely. Understand the economics - TODs will not work in all locations.

After the market analysis, if it is deemed the project viable a preliminary site investigation including subsurface and environmental should be carried out to establish construction constraints and problems.

Whereas, the aforementioned segments are realistic and validteb the need at maximum, however, * Displacement is never a winning strategy or a community amenity so, it is essential that the real essence of the area is preserved and trade-offs between density, diversity, design, and parking is carefully planned and achieved. * Also, the stakeholders trust should be gained by fairly cmunicating them the pros & cons alongwith work progress, hindrances and possible slakes if any, so the whole team could stay on a single page and project May stand a win win stage.