Rapid Progress
Investing in transit-oriented development

Mary-Frances Turner, vice-president, York Region Rapid Transit Corporation

York Region is one of the fastest growing areas in Canada. With only 9% of peak period trips currently using public transit, traffic congestion has become residents’ number one concern. To reduce automobile reliance, York Region plans to more than double transit’s mode share. Four emerging urban centres, connected by rapid transit corridors, will incorporate 40% of all new growth with a vibrant mix of residential, commercial, institutional and employment land uses. As the centres evolve into transit villages, they will become both origins and destinations for the travelling public.

The Viva rapid transit network is being implemented in three phases over the next 20 years through a public-private partnership:

• Viva Phase 1 began operations in the fall of 2005 to address immediate traffic concerns by providing more frequent service, increased coverage and improved connections with subway, commuter rail, and local and express buses. Valued at $150 million, Phase 1 was delivered on time and within budget. Along the Viva corridors, ridership has already grown by 30%.
• Viva Phase 2 will build dedicated rapidways to reduce travel times by up to 40%. Preliminary engineering and design are proceeding for construction to begin in the spring of 2008.
• Viva Phase 3 will invest in higher-order technologies, such as light rail transit and subway, to increase passenger capacity as York Region’s population and employment continue to grow.

Under the terms of the partnership agreement, York Region owns, operates and maintains all assets and controls revenues. The Viva program is managed by York Region Rapid Transit Corporation, or RAPIDCO, which is wholly owned by York Region. York Consortium 2002, the private sector partner, comprises three engineering firms, two large construction firms, a bank and a vehicle supplier.

Transit-oriented development can provide a direct financial return as well as increased equity for investors. Although there are higher upfront costs and risk than for conventional urban sprawl, studies around the world consistently show that transit-oriented development results in higher, more stable property values. Joint development projects, such as shopping malls, office towers, hospitals or recreational facilities built in conjunction with terminals or station locations, frequently raise the bar for urban development standards. Infrastructure and renewal projects provide additional investment opportunities. York Region is now working with its local municipalities to refine zoning codes for the planned mix of residential, employment and commercial land uses.

RAPIDCO is poised to evolve following a sustainable funding commitment for the future phases of Viva. Phases 2 and 3 are valued at over $3 billion. The ancillary investment opportunities associated with full implementation of the rapid transit network are significant. Viva Phase 2 comprises over 60 kilometres of dedicated rapidways with permanent stations. A potential strategy is to create a dedicated development services corporation that can negotiate contributions with investors and developers. Property can be acquired and land banked for future use. Through developer agreements, cash or in-kind contributions can be obtained for specific projects. Surplus land and air rights parcels can be disposed of through sale or long-term lease payments in a transparent and competitive manner, with distribution of proceeds reflecting both RAPIDCO and investor contributions.

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