Master Developer Roles - Rail~Volution

Master Developer RolesNovember 2, 2007CherokeeCorporate Headquarters111 E. Hargett Street, Suite 300Raleigh, NC 27601Telephone: (919) 743-2500Fax: (919) 743-2501

Role of the Master DeveloperThe Master Developer increases transit system value bystrategically integrating transit uses with mixed-usedevelopment across stations yielding the followingresults:– Increased ridership, creating more revenue foroperating expenses– Increased incremental tax revenue that is directlylinked to transit– Value enhancement of transit agency real estateassets– Creates positive political feedback from oftencontroversial public infrastructure expenditures

Master Developer Facilitates Market-BasedDevelopment and Creation of Opportunities for LocalInterests• Smart growth land use planning• Balance of needs for public and private interests –“complementary development”• Restore cultural richness of neglected urbanneighborhoods• Large scale community revitalization for long term vision• Public-private partnerships enhance investmentopportunities

Cherokee’s Role Differs According To System Needs• Triangle Transit Authority (TTA) – Research TrianglePark, NC• Charlotte Area Transit System (CATS) – Charlotte, NC• Dallas Area Rapid Transit (DART) –Dallas, TX

Triangle Transit Authority (TTA)

TTAIssue: Federal Funding shortfall prevented theimplementation of the first corridorSolution:Utilize significant TTA land holdings to do the following:– Catalyze TOD prior to transit system construction to improvefederal funding potential– Capitalize on TTA-owned real estate appreciation to help fundfuture capital needs– Minimize TTA station area expenditures by partnering with privatedevelopers

Charlotte Area Transit System (CATS)

CATSIssue: $76+ million funding gap preventing start ofNorth CorridorSolution:Coordinate 4 municipalities and Mecklenburg Countytowards jointly funding the gap through incrementalproperty tax growth– Analyzed the revenue potential by station area– Helped allocate the funding responsibility amongjurisdictions– Gained consensus from all stakeholders– Facilitated implementation of the financial plan

Most incremental property tax revenue remainsavailable for local services & needsIncremental Property Tax Revenue Generated inNorth Corridor Station Areas(current $)140,000,000120,000,000100,000,00080,000,00060,000,00040,000,000Unused Tax RevenueStation Area ProjectsRail ProjectsCurrent Tax Base20,000,000-

Dallas Area Rapid Transit (DART)

DARTIssue: Varying development patterns throughout systemimpacting successSolution:– Create a system-wide Master Development plan– Serve as a catalyst for well-coordinated, optimizedmixed-use development throughout system– Control and buildout at least four TODs as examples