Our firm was engaged for two projects to determine potential value capture strategies as a funding source for transit and highway capital investments in the Chicago region. The first contract focused on using value capture for transit projects, and applying this analysis to the new CTA Oakton Station in Skokie. The second contract was a follow-up to the prior study, and provided analysis and conclusions on the broader potential for value capture across various transportation improvements, including highways. Specifically, the second study included an evaluation of innovative financing strategies for three of the priority transportation projects identified in CMAP’s Go To 2040 Plan for the Chicago region, as follows:
1) The Central Lake Thruway/Route 120 Bypass through Lake County
2) The CTA Red Line South Extension – a $1.1 billion dollar extension from 95th Street to 130th Street in the south side of Chicago
3) A Parking Garage in Downtown Wilmette
For both studies, SB Friedman researched and evaluated a series of potential value capture mechanisms and modeled the impact of three specific strategies, including impact fees, special assessments in the form of a Special Service Area, and a Tax Increment Financing-like mechanism. Specific analysis tasks included:
- Evaluation of multiple value capture methodologies and their feasibility in Illinois and the Chicago area.
- Testing the revenue-generation potential for alternative financing mechanisms.
- A financial impact analysis for a potential, station-adjacent development showing the value created by a new transit station.
Results: The complete studies have been submitted and are available on the CMAP website. CMAP presented the findings to RTA’s Regional TOD Working Group, and SB Friedman presented the findings of the first study to two CMAP committees in January 2011. A second set of presentations were provided to the CMAP committees in September 2011.