Updates value capture mechanisms for NYC and the MTA

Showing the cosponsors who are on Agora, A to Z. The official record may list more.

• Democratic12

Shown in neutral colors by design; Agora is non-partisan.

◆ The sponsor's argument

Why Leroy Comrie says this is needed

Transit projects create value to surrounding areas, increasing nearby property values by 30 to 40 percent, and up to 150 percent under ideal conditions, according to the Federal Transit Administration. The Ameri- can Public Transit Association meanwhile estimates that every $1 spent on transit generates $5 in economic activity. Value capture comprises "the public recovery of a portion of increased property and other value created as a result of public infrastructure investment" (Transit Cooperative Research Project). Existing state law GM 119-r authorizes cities, towns, villages and counties to adopt local laws to authorize value capture with public transit authorities, includ- ing with the Metropolitan Transportation Authority (MTA), in recognition of the increase in property and land value that transportation projects often bring to local areas. This existing law is set to sunset in 2023. This bill amends GM 119-r to make the option of a value capture process between New York City and the MTA permanent. The bill simultaneously adds new accountability measures to ensure 1) proper due diligence and transparency in establishing the increased value to surrounding areas by any MTA project, and 2) that this process is open to the public. Final- ly, the legislation removes the explicit mention of tax increment financing (TIF) as a means for value capture, recognizing widespread concerns that TIFs can extract much-needed city tax revenues and need- lessly increase debt service and risk. In summary: mass transportation capital projects are among the largest and most consequential public infrastructure investments undertaken by municipalities and the Metropolitan Transportation Authority. These projects can substantially alter neighborhood development patterns, property values, transportation access, and local tax structures for decades. Despite the significance of these decisions, existing law does not provide sufficient requirements for advance public disclosure, standardized fiscal analysis, or meaningful community engagement before project financing districts are established. This bill addresses those deficiencies by establishing clear transparen- cy and accountability standards for municipalities and the Metropolitan Transportation Authority when utilizing value capture financing mech- anisms such as tax increment financing, special transportation assess- ments, and land value taxation. Communities, taxpayers, businesses, and local elected representatives deserve access to reliable information regarding the anticipated costs, benefits, and fiscal implications of proposed transportation capital projects before financing structures are approved. Requiring public disclosure of revenue assumptions, transportation analyses, projected assessments, and associated economic incentives will improve public confidence, promote informed decision-making, and strengthen oversight of major infrastructure investments. The legislation also ensures that affected community boards and elected officials are provided adequate notice and opportunity for engagement prior to required public hearings. In doing so, the bill advances prin- ciples of open government and meaningful public participation while preserving the ability of municipalities and the Metropolitan Transpor- tation Authority to utilize innovative financing tools for critical transportation infrastructure.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.