The District’s proposed 37-mile streetcar network would spur development and raise property values by some $15 billion, not just give city residents more ways to get around, according to a new report. Some of the wealth generated by the eight lines could help pay the $1.5 billion it would cost to build it — or help with future operating costs — through options such as special taxing districts or business improvement districts.
“There’s some significant value increase that might give us a place to start the conversation with property owners,” Office of Planning Director Harriet Tregoning said.
The approximately $500,000 study by Boston firm Goody Clancy commissioned for the Office of Planning presents a rosy picture of what the network would bring the city. The H Street-Benning Road line is slated to open in July 2013, but the system has been beset by delays and remains largely on paper.
The proposed network would spur jobs and population growth. It would increase walkability, tripling the number of people who live within a quarter mile of rail, thus reducing locals’ transportation costs and improving public health.
But one of the biggest effects would be on property. Like the Metro system, the streetcar network would push up values by 5 to 12 percent, adding an estimated $5 billion to $7 billion to existing property values, the study said. Separately, it would spur new development over 10 years by as much as $8 billion.
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The real estate boom, plus additional sales taxes from all the new residents, would bring in up to $291 million annually.
However, the study notes some drawbacks. Having the trolleys run on existing crammed roads could increase traffic congestion and reduce curbside parking. And bike wheels might get caught in the tracks.
The rising property values also could price people out of their existing housing.
Some of those people could save money by getting rid of the family car, the study notes. And existing zoning laws could add some affordable housing in new development. But Tregoning said the study signals the city should plan now to acquire, or hold on to, land to preserve some affordable housing.
Streetcar Land Study</div>
