Public regulations and permit procedures may allow or even encourage development but something more is often needed. Public agencies can actively initiate station area development through public actions and by engaging in a public-private partnership. Opportunities to leverage public investments in station areas can maximize the potential for private investment.

Promote Private Development through Public Actions

Strategies in this category include: actively marketing development opportunities, establishing development incentives, and providing necessary public facilities and infrastructure.

Market Potential Development Opportunities The marketing strategy should be used as a vehicle to "sell" transit-oriented development opportunities at the station area to the variety of players that make up the development community - developers, property owners, bankers, and others. Determining what the development community cares about will help to prepare the market strategy.

Establish Development Incentives At times more than just promotion is needed to generate interest in station area development. Often developers will need an incentive of some sort if they are going to commit to the generally more risky practice of transit-oriented development. Incentives can be in the form of density bonuses for providing certain amenities, favorable permit review procedures for certain development, direct cash outlays for public improvements that support a development, or reduce the overall project costs of a development by making use of joint parking opportunities.

Provide Public Facilities and Infrastructure Before private capital will come to a station area, some infrastructure improvements are often needed to improve the safety, appearance, or function of a location. Infrastructure investments also demonstrate a public commitment to an area and can signal increased investments over time - always a good sign to the development community. Some of the public improvements at station areas could include a police substation, a pedestrian plaza, a bus turnaround facility, new drainage and water systems, and placing certain utilities underground.

Participate in the Private Development Process

Necessary proactive measures from the public sector are also designed to invite, encourage, and persuade private sector participation in Transit Station Communities. In particular, transit agencies and local governments need to be more entrepreneurial, to seek and utilize regulatory tools and flexibility, to provide incentives or financing where appropriate, and to vigorously pursue and follow through with opportunities to work with the private sector.

Package and Assemble Land for Development Public action in helping to package, secure, and assemble land for transit-oriented development purposes can be one of the more powerful tools for Transit Station Communities. Assembly of land can be an effective way to achieve development that is of sufficient size to be economically viable and spur a change in station area, land use patterns. Some ways local governments can help package and assemble land for development purposes include: surplus public property, leasing land for private development, and selling publicly held land for private development.

Participate in or Help in Securing Project Financing Aggressive financial participation and risk sharing can help to stimulate transit-oriented development. One means of risk sharing is the underwriting of land costs in return for project participation. As an example, an agency might accept below-market rents on land leased to a developer in return for a percentage of project revenues over a specified period. Transit agencies throughout the country have used this technique with success, including BART in San Francisco, Metro in Washington D.C., and in San Diego.

Participate in Joint Development "Joint Development" involves public and private sector cooperation in planning, design, and construction of residential, commercial, or mixed use projects near transit in a manner that maximizes the skills and contributions of each sector. Joint development is based on the concept that transit investment and commercial development can be integrated to create value, both financially and in terms of public benefit. Specifically, joint development is a means whereby land or air rights in the vicinity of transit facilities are sold, leased, or managed so that the public can share in the value enhancements generated by the public investments.

Create New Entities to Spur Development Opportunities

A Public Development Authority, Community Development Corporation, or other nonprofit development entity may be established to accomplish pre-development activities such as land assembly, a feasibility analysis, and acquisition of grants for low-income housing or other fundable projects. Described below are ways these development entities can contribute toward Transit Station Communities.

Public Development Authorities Public Development Authorities (PDAs) are public corporations authorized under state law (RCW 35.21.730). As such, they are independent legal entities chartered by a city, town, or county. These entities were established by the State Legislature as a more efficient way to administer a public service. The purpose of a PDA is to promote some specific public good. A PDA is governed by a board that is comprised of members elected by the constituency or appointed by the chartering government.

Community Development Corporations Community Development Corporations (CDCs) are nonprofit organizations that have a community-based board of directors, provide services to a defined geographic community, and engage in some sort of economic development activity. CDCs are formed to do commercial and housing development in neighborhoods where markets are not defined. CDCs help provide capital to markets that are not getting access to private capital and help the community retain ownership of real estate assets.

Private Nonprofit Organizations Private Nonprofit Organizations (NPOs) are empowered under state law to serve a number of charitable purposes but are also limited by state law in that no one associated with such an organization may receive any profit or financial gain from its activities. Many nonprofit organizations seek tax exempt status under Section 501(c)(3) of the Internal Revenue Code. Such an exemption may be a prerequisite for participation in various city, state, or federal programs and may enable the organization to obtain funding from other charitable organizations or foundations or offer donors the benefits of a charitable deduction.