TOD strategy in LAC Region

Transcription

1 HOW TRANSIT ORIENTED DEVELOPMENT -TOD -COULD TRANSFORM URBAN SPACE Vanessa Velasco, Urban Specialist. Source: Metro Sabana,2017 TOD strategy in LAC Region

2 1. TOD context 2. How TOD supports urban transformation Key aspects for implementing TOD Urban Transformation trougth TOD Key aspects for implementing TOD in LAC Urban Transformation trougth TOD in LAC 3. Developing a TOD strategy General strategy LAC Lima Metro Project

3 TOD Context 1

4 TOD HAS A KEY ROLE IN URBAN TRANSFORMATION More Competitive Access and Mobility Lower Transport and Housing cost WHY TOD? High quality neighborhoods with lower infrastructure costs and lower CO2 Resilient to Natural Hazards Partly self financing by capturing value created Source: Gerard Ollivier, World Bank TOD-COP 2018 Positive outputs of TOD include: higher economic productivity in densified areas, and residents spend lower income on transport and housing in nearest stations.

5 Physical and Technical Aspect TOD HAS A KEY ROLE IN URBAN TRANSFORMATION Institutional Categories Infrastructure Categories Enabling Factors Source: Gerard Ollivier, World Bank TOD-COP 2018 Social Aspect For TOD implementation, it is necessary to engage different stakeholders using physical and technical instruments, social agreements and enabling factors 5

6 TOD HAS A KEY ROLE IN URBAN TRANSFORMATION National and Municipal Regulations Land Use Planning Institutional Municipal Finance Source: Autor, based on Gerard Ollivier, World Bank TOD-COP 2018 Regulatory framework for TOD implementation include: urban regulations, institutional framework and municipal finance tools 6

7 How TOD supports urban transformation 2

8 KEY ASPECTS FOR IMPLEMENTING TOD Source: Gerard Ollivier, World Bank TOD-COP 2018 Key aspects should include: scoping, planning, financing and implementation of TOD

9 URBAN TRANSFORMATION THROUGH TOD TOKIO- Tokyu Corporation Tokyu Corportation: Urban and Transport Development Corporation Owner of Metro Stations and Land Bank for nearest áreas Housing Univ. Housing Housing Retail Land Readjustment/ (re)development Readjusted Land Rural Land Real Estate Business Line Offices / Hotel comercio Station secures high user demand Transport Operation Business Source: Murakami, Jin Transit Value Capture Key aspects include: an strong urban and transport corporation, a planning instrument including land assembly, and station secures higher usser demand.

10 URBAN TRANSFORMATION TROUGH TOD TOKIO (re)development Metro Tokio (urban areas) Scheme for (re)development and land use incluse renewal Project in central areas New Urban regulation, Biggest FAR e f sale $ Subsidie d b c a a b a, b, c, d, e, c& f d e f A A,B,C,D,E B & CF D F public F Social infrastructure Fuente: Murakami, 2010; Suzuki, Murakami, Hong and Tamayose, 2013 Key aspects include: revenues of real estate project finance public social infrastructure

11 KEY ASPECTS FOR IMPLEMENTING TOD IN LAC CITIES Country Scoping Planning Financing Implementation Argentina Macro-Micro level National-Subnational planning-implementation LVC, Municipal Finance Tools Subnational and National Leadership, IA Bolivia Macro-Micro level National- planning Municipal Finance National leadership Brazil Macro-Micro level Municipal-National planning-implementation Colombia Macro-Micro level Municipal-National planning-implementation Ecuador Macro-Micro level National-Municipal planning- implementation Peru Macro-Micro level National-Subnational planning-implementation Mexico Macro-Micro level National-Subnational planning-implementation LVC, urban development, municipal finance LVC, urban development, municipal finance Urban development, municipal finance LVC, Municipal Finance Tools LVC, Municipal Finance Tools SPV, Local Political Leadership, IA SPV, IA, National political leadership Local and National Political Leadership National Leadership, IA National - subnational leadership, IA Uruguay Macro-Micro level National- planning Municipal Finance National leadership Paraguay Macro-Micro level National- planning Municipal Finance National leadership Costa Rica Source: Author, 2018 Macro-Micro level National- planning Municipal Finance National leadership Unbalance in LAC countries related to scoping, planning, and financing tools for implementing TOD

12 KEY ASPECTS FOR IMPLEMENTING TOD IN LAC CITIES How to finance urban development? 1) Instruments for financing the future urban development trough capture the potential value of the land a. Additional development rights b. Impact Fees c. Tax Increment Financing-TIF d. Betterment and levies e. PPP Strategic public investment ( infrastructure + transport + land use accessibility and ) creates land value Highest land value could finance urban development Sustainable urban projects Economic growth of cities Financing of urban infrastructure Strategic urban projects and Instruments for financing future urban development in LAC are relatively new densification could give and main destination is urban infrastructure additional land value

13 KEY ASPECTS FOR IMPLEMENTING TOD IN LAC CITIES Strategic public investment= infrastructure + transport + land use 2) Instruments to capture the value of the land after urban development -EX- POST infrastructure investments a. Property tax b. Plusvalee capture Sustainable urban projects How to finance urban development? Highest land value could finance urban development Economic growth of cities Financing of urban infrastructure Strategic urban projects and densification Instruments for financing future urban development in LAC are frequently used, main destination is municipal budget, affordable housing and urban infrastructure

14 KEY ASPECTS FOR IMPLEMENTING TOD IN LAC CITIES Strategic public investment= infrastructure + transport + land use Sustainable urban projects How to finance urban development? Highest land value could finance urban development Economic growth of cities 3) Urban operation including multiple land value capture instruments LVC- 1. Urban Operation (PP, operaciones interlagadas) 2. Land readjustment Financing of urban infrastructure Strategic urban projects and densification Instruments for financing future urban development in LAC are relatively new and main destination is urban infrastructure

15 URBAN TRANSFORMATION THROUGH TOD IN LAC Urban Regulations Framework Management Land use plan Partial Plan/ Operaciones Interligadas Planning Planning instrument that transforms extended portions of land trough land pooling to guarantee an equitable distribution between the cost of urban infrastructure and the benefits of urban development. Building and urban infrastructure codes, and land use regulations Conditions for stakeholder s participation Distribution of benefits (FAR) and cost (urban infrastructure) Scope for the project Land management processes Institutional schemes Stakeholder s participation Land management processes Institutional schemes Colombia planning framework has an instrument (PP) combining land management and urban development process

16 URBAN TRANSFORMATION THROUGH TOD IN LAC BRT Station, PP. ESTACION CENTRAL, Bogota SCOPE OF THE PROJECT Source: ERU, 2014 Conditions Part of the Macro project of the Center Area 10,5 hectares 3 UAU 5000 Inhabitants 60% of current activities are commerce, local service, 20% educational services and 20% residential area Objectives Completion Date phase plan 235,0000m2 of mix use development, 140,000m2 of office space, 60,000m2 of retail, 25,000 m2 of housing of middle income level and affordable housing, and 10,000 m2 of education 4,6 hectares of open spaces and urban infrastructure Public SPV: ERU-TRANSMILENIO BRT STATION 60% cost financed by utilities of urban development 20% of land approved by the PP is for affordable housing Integrated project s scope: Urban transformation including social inclusion and transport infrastructure

17 URBAN TRANSFORMATION TROUGH TOD BRT Station, PPESTACION CENTRAL, Bogota ERU-TRANSMILENIO Public Urban Development Corportation: planning, land bank, and real estate planning functions. In charge of private developer agreement. Transport Corporation: BRT operation, and transport infrastructure Housing Office / Hotel Station secures high user demand FAR Retail Univ. Housing Housing Land Readjustment/ (re)development/eminent domain Readjusted Land Real Estate Businees Line Source: Author based on ERU,2018. Affordable H Transport Infrastructure and Affordable housing cost is paid by urban development Key aspects include: a non effective IA between TM and ERU; higher expectation of land owners in revenues of the urban development; and long-term political changes.

18 URBAN TRANSFORMATION TROUGH TOD IN LAC BRT Station, PP ESTACION CENTRAL, Bogota LAND MANAGEMENT AND STAKE HOLDERS PARTICIPATION URBAN DEVELOPMENT CORPORATION SPV. LAND OWNERS AND INVESTORS: EXCHANGE RATIO CURRENT M2 /NEW M2 CONSTRUCTION REAL ESTATE PROJECT SOCIAL INCLUSION ECONOMIC INCLUSION LOCAL BUSINESS COMPENSATION FOR RESIDENT LAND OWNERS/HOUSING COMPENSATION UNIT TRANSMILENIO LAND OWNER : 60% OF CONSTRUCTION COST OF THE BRT STATION PARTICIPATION NEIGHBORHOOD RESIDENTS IN FORMULATION OF PP AND LAND MANAGMENT SCHEME Source: ERU, 2014 Each UAU project has its own prefeasibility process. However, an integrated land management strategy aligning 3 UAU is needed for the whole partial plan implementation

19 URBAN TRANSFORMATION TROUGH TOD IN LAC BRT Station, PP. PEDREGAL, Bogota SCOPE OF THE PROJECT Conditions 6,5 hectares 1 UAU 50% of current activities are commerce, local service, 20% educational services and 30% residential area Objectives Completion Date phase plan 115,0000m2 of mix use development, 20,000m2 of retail, and 85,000m2 of commerce offices, affordable housing obligation was transfer to Metrovivienda land bank 3 hectares of open spaces including 2 BRT stations, an underground transport public depot, and urban infrastructure Private developer joint with TRANSMILENIO 2 BRT STATION, 1 public depot, and transport connection infrastructure anillo vial are 100% cost financed by utilities of urban development Land acquisition was made by the private owner before/after PP approval Integrated project s scope: Urban transformation including economic development, and transport public facilities and urban infrastructure

20 URBAN TRANSFORMATION TROUGH TOD PEDREGAL, Bogota ALDEA PROYECTOS -TRANSMILENIO (TM) Private Urban Development Corportation: planning, land acquisition, real estate development Transport Corporation: BRT operation, and transport infrastructure Real Estate Businees Line Source: Author based on ALDEA,2018. Offices Offices / Hotel Retail (re)development/land acquisition Readjusted Land Transport Depot Stations secures high user demand Transport Infrastructure and public facilities cost paid by urban development Key aspects include: a non effective IA between private developer and TM/IDU, technical and political disagreements that changes the project in long term perspective.

21 Developing a TOD strategy in LAC 3

22 IMPLEMENTING TOD IN LAC CITIES TROUGH TRANSPORT PROJECTS

23 LINE 2 METRO OF LIMA 1. Regional 2. Local Multimodal Integration Urban Context of Lima: opportunity áreas, job areas, (re) Development zonning areas, CDB, socio-economic development (local) y social + participation process 3. National Accesibility analysis to determine potential central áreas and developing through TOD.

24 LINE 2 METRO OF LIMA. Accesibility anaysis shows areas were public facilities, public services, real estate market demand, and employment areas are concentrated, over the Metro Line 2 corridor. Some of the areas were selected as TOD pilots Source: WB,2016

25 LINE 2 METRO OF LIMA Urban redevelopment program Accesibility and Integration Plan Metro L2 Tarifary integration Policy of the Metropolitan Transport System + Concession L2 + corridor L4 Potencial of urban redevelopment areas articulated with improvement of local accesibility (pedestrian, roads) in the Line 2 Key aspects for pilots development include: an effective IA between private Source: Felipe Targa, WB,2016. developer and national and subnational governments; flexible LVC and planning instruments; PPP agreements; and political changes strategy in a long term perspective.

26 Thank you