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2nd

2nd Technical Deep Dive on TOD, Tokyo, May 29, 2017Hiroaki Suzuki

The World Bank Urban Development Consultant and Former Lead Urban Specialist of the World Bank 1

Financing Transit-Oriented Development (TOD) with Land Values

© 2015 Mitsubishi Estate Co., Ltd.

Presenter

Presentation Notes

The Tokyo Station area, 120 ha of land surrounding the Tokyo Station houses 4,000 companies, which generate a revenue totaling over 135 trillion yen or about 10% of Japan's total corporate revenue. It covers 13 stations and 21 railway lines including that of bullet trains that connect Tokyo with other regional cities in Japan. The Tokyo Station area has been built over many years with careful planning and financing under close cooperation between the governments and private sector. . The Tokyo Station area with its proximity to the Imperial Palace, is also a pedestrian-friendly, socially vibrant area where tourists and locals can enjoy its trendy cafes and shops or stroll around to watch street performances. While it will not happen overnight, the Railway City Project has a huge potential to become a similar economically vibrant and environmentally friendly space.

OutlineTransit Oriented Development (TOD) as the Most Effective Measure for

Sustainable Urban DevelopmentHow to Maximize Values of TODFinancing TOD with Land Values – Land Value CaptureLand Value Capture Global Good Practices: Schemes and InstrumentsHong Kong R(Rail)+P (Property) Model Tokyo Inclusive Multiple Integration ModelEmerging Land Value Capture in Cities in Developing Countries

Critical Factors for Success of LVC in Developing CountriesConclusion

2

TOD As Effective Measure for Sustainable Urban Development

3

TOD Promoting Urban Sustainability

Source: GIZ/World Bank

www.worldbank.org/urban4

TOD & Triple Bottom Line

Economic

Environmental

Social

Time Saving Energy Saving Space Efficiency Infrastructure Cost Saving Synergy & Creativity Agglomeration Economy Functionality

Air Pollution Reduction CO2 Reduction Land & Green Preservation Biodiversity

Accessibility & Mobility Access to Jobs and Services Affordable Housing

5

Aging Society

Resilience to Disaster

Economy of Agglomeration and Connectivity with Tradition in Global Capital (Tokyo Station Area)

Photo: HSuzuki

Economic

6

Green TOD (Freiburg, Germany)

Photo: Wulf Daseking

Environ-mental

7

Electric vehicles

Gate Square commercial and office building

BEMS

Gate Square hotel and residences

HEMS

Solar power generationStorage battery

BEMS

LaLaport KASHIWANOHA

Park City Kashiwa-no-ha Campus Ichibangai District

HEMS

HEMS

Park City Kashiwa-no-ha Campus Nibangai District

Kashiwa-no-ha Smart CenterA central control room for a smart city

8Kashiwano Ha Smart City

Source: Mitsui Fudosan

Economic Environmental

8

Presenter

Presentation Notes

一例を紹介します。これは、ゲートスクエアを含めた４つの街区で実現した日本初の街区間電力融通の仕組みです。平常時には異なる用途の間で電力を融通し合うことに拠り電力のピークカットを行い、災害時にはマンションへEVなどへの非常時用電力供給を行う画期的な仕組みです。この仕組みに拠り平常時には省エネしながら電力を効率よく活用するシステム、災害時には停電になっても最低限の期間生活が継続できる安心安全な基盤が実現しています。このほかゲートスクエアでは、暮すだけで健康になれるサービスコンテンツを提供する拠点や、ベンチャー企業育成を行うインキュベーション施設等を設置し、３つのコンセプトを実証実験ではなく、実装段階で実現しています。

Toyama TOD for Aging Society

Social

Social

Source: City of Toyama 9

How to Maximize Value of TOD

10

Value is created by combination of transit and its influenced land use

Transit

Business As Usual Vertical & Horizontal TOD

Quantity - Density

Quantity - CatchmentVC1

VC2

OV

VC2

OV

VC1

Tools• FAR Increase• Transfer of

Development Right• Land Adjustment• Urban Re-development,

etc.

Tools• Transit Feeder• Bus Terminal• Bicycle Lanes, etc. 11

Value Capture (VC1)

Original Value (OV)

GROW HIGH: Increasing Densities

12

13

Dveloping Countries: Average Built Up Densities

Beijing

Bangalore

HyderabadTianjin

Shanghai

Guangzhou

Hong Kong

Ahmedabad

Curitiba

Articulated Density Matters;Not Average Density

14

Source: OECD Compact City Policies / Laruelle, N

Uniform Average Population Density can havetotally different height and spatial form. Whatmatters most for transit and land integration is notaverage population density, but articulated density.

Bogota: Low (<2) FAR ControlDoes Not Help Create Articulated Densities

15Source: The World Bank Bogota Case Study

Presenter

Presentation Notes

Bogota’s FARs are very low and uniformly distributed. Except for CBD and some perpheirial areas, FAR are less than 2 even the proximity of BRT stations. Global case cities have allocated much higher and diversified FARS. For example, FARs range from 12 to 25 in Singapore; 1 to 20 Tokyo; 1 to 12 in Hong Kong SAR, China; and 8 to 10 in Seoul

SOUTH STRUCTURAL AXIS

Nova Curitiba

Av. Paraná

Represa Do Passaúna

DOWNTOWNMal. Floriano

Parque IguaçúGreen Line

Porto Alegre

Ponta Grossa

INDUSTRIAL DISTRICT

Parque Barigui

São Paulo

Curitiba’s Transit Oriented Development Source:Curitiba

16

Presenter

Presentation Notes

. Average densities in Curitiba are not high citywide, for example, but densities are high where they matter—along BRT corridors. Curitiba enjoys “articulated densities”—high densities in high-quality, transit-served corridors and the acquiescence to market-driven spread-out patterns of development in highway corridors.

TOD as Envisioned by Peter Calthorpe

A diagram of Peter Calthorpe’s vision for TOD

600meters

17

Presenter

Presentation Notes

As a reaction to American sprawl, TOD emerged as an explicit design strategy in California in the 1980s and 1990s. Peter Calthorpe designed the TOD strategy in order to create a framework for neighborhood-level developments that would be well connected to public transit. The image found on this slide shows a diagram of Calthorpe’s original TOD vision.

Expand Catchment Area by Various Transport Modes

18Mode Connectivity At Station

Source: S. Sakaki

Expand Catchment Area by Rail & Bus Connection

Source: Toyama City

RailBus

Catchment

Rail enjoys Economies of ScaleBus enjoys Economies of Scope

Toyama LRT & Bus Catchment Area

19

TOD in Tokyo Metropolitan Area

20 ＜Source ：TOKYO2050 fibercity / JA63 / Hidetoshi Ono ＞ ※Pink is the author's ideas

• Mega-Cities in Japan = Chains of Walkable Cells connected by Railways

• A network of 800m radius walk-able areas from each railway station in Tokyo Metropolitan Area

Presenter

Presentation Notes

In other parts of the world, TOD concepts have been practiced at much earlier times. This diagram shows how urban areas in Tokyo Metropolitan are well covered by the railway network. Major urban areas are conveniently covered by walkable distances from the stations. In the map, they are shown in a series of gray circles of 800m in radius. In addition to this, the public bus network is also well developed, connecting and supplementing this railway network. These public transit networks have been developed from as early as 1910 all through the 20th century. The Tokyo Metropolitan area was developed in conjunction with railway network construction. The governments developed the railway system before the wave of motorization reached Japan. In addition, during the fast-growing post-war period, railway companies were often leading developers, who combined railway extensions with building new communities on the metropolitan fringe. Image Source: Wataru Tanaka, Nikken Sekkei, Ltd based on the graphic of Tokyo 2050 fibertcity/JA63 of Hidetoshi Ono (NOTE: Suzuki is currently asking the authorization of Tanaka to use this slide. To be checked before the finalization).

Quality Increases Land Value of TOD Areas

Transit

Quality Urban Design Enhancing TODEfficient

Functional VC1

VC2

OV

Pleasant

Vibrant

VC3 Quality

Quantity: Vertical-Horizontal Expansion-

Transit Value

Original V

21

Land Value Premiums of TOD in U.S.

Station

Perc

ent I

ncre

ase

in L

and

Valu

e

Distance from Station

5

10

15

20

25

30

35

½ Mile 1 Mile¾ Mile¼ Mile

Land Value Premium in TODs

Station

Perc

ent I

ncre

ase

in L

and

Valu

e

Distance from Station

5

10

15

20

25

30

35

½ Mile 1 Mile¾ Mile¼ Mile

Land Value Premium in TODs

TOD: High Quality Pedestrian-Friendly Design

TOD: Low Quality Non Pedestrian-Friendly Design

Source: R. Cervero

Presenter

Presentation Notes

Theory says benefits of living near rail get capitalized into land values. Thus a good way to reflect benefits of TOD is to examine rent and land value premiums – often by comparing “comps” (similar projects except one is near and the other is not near transit).

• Node Value based on its location in the network

• Place Value based on its urban qualities

• Market Value, based on its economic potential

The “3V Frame WORK”

The 3V Framework (Serge Salat, Gerald Ollivier)23

Financing TOD with Land ValuesTax

Fairebox RevenuesLand Value Capture (LVC)

Scarcity & AffordabilityPolitical Economy

Economic Rational & Financial Viability

24

Transit is Capital Intensive

Tokyo Metro Construction Costs

Source: Hitoshi Ieda

Source: World Bank LVC Case Studies

$100MRMB 0.6 B

$200MRMB 1.2 B

$300MRMB 1.8 B

25

Cities CostBillion

LengthKm

Nanchang Line 2 $2.6 24Km

Hyderabad $2.6 72 Km

Delhi $11.7 120Km

Sao Paulo $30 .0 100Km

Metro in Developing Countries

Fare-box Recovery Ratio

Source: Murakami, Jin. 2012. Transit Value Capture

Fare Revenues/Operation Expenses (%) – 60 Global Cities

0

20

40

60

80

100

120

140

160

Hon

g K

ong

Del

hi

Tok

yo

Sing

apor

e

Lon

don

Bud

apes

t

Bar

celo

na

Cop

enha

gen

Ath

ens

Osl

o

Mad

rid

Hel

sink

i

Ham

burg

Mos

cow

Stoc

khol

m

New

Yor

k

Pari

s

Ber

lin

Bol

ogna

Chi

cago

Was

hing

ton,

DC

Lyo

ns

Rot

terd

am

Bos

ton

San

Fran

cisc

o

Am

ster

dam

Atla

nta

Los

Ang

eles

Port

land

Hou

ston

Mia

mi

Dal

las

Cross-subsidies

26

Focus of the WB’s New Book

Source: Suzuki, Murakami, Hong and Tamayose, 2014

Focusing on Development based Land Value Capture (DBLVC) practices in HKSAR and Tokyo as global best cases

Seeing DBLVC as a strategic model of both urban finance and planning

Discussing how to adapt DBLVC in cities of the developing world

27

Concept of Land Value Capture

Source: Adapted from Hong and Brubaker 2010. 28

Categories of LVC Instruments“Tax or Fee based” LVC & “Development-based” LVC (DBLVC) Instrument

Tax-

& F

ee-B

ased Property and Land Tax

Betterment Levies and Special AssessmentsTax Increment Financing (TIF)

Deve

lopm

ent-

Base

d

Land Sale or Land Lease Air Right SaleLand Readjustment

Urban Redevelopment Financing 29


Betterment Fees/Charges

30

Tax Incremental Financing (TIF) US

31

UC Real-estate Development Sireies

Challenges of Tax-Based Land Value Capture

• Nobody likes tax-Political Economic Problem;• Valuation Method;• Uncertainty • Question of Equity: TIF District and Other Districts;• Tax-Based Land Value Capture instruments are based on

Property Tax; and Collection system such as cadastral, which is not often well developed and managed

32

Underlying Principe of DBLVC

開発利益還元

Development Profit Return

VS

Land Value Capture33

LVC for Finance & Planning in TOD Transit Agency

Developers

Landholders

Other Agencies

Communities

Accessibility Density & Mixture Amenity Integration

Land Value Increment

“Synergetic Benefits to be Shared”

Railway Investment

Source: Jin Murakami 2013

“Urban Planning to Promote TOD” 34

Transit/TOD Investment-O&M Costs vsRevenues from Land Sale and Use and Others

CONSTRuCTION

O&M

Other TOD (Station Plaza, Pedestrian Facilities, etc.)

Other TOD O&M Tax & (Property Tax & Sales Tax) Fees (Betterment, Development)

Land Sale (land, land use, air or underground use right)

Property Mgt. & Commercial Revenues

Tariff

Transit(Guided ways, Rolling Stock, Stations)

Transit O& M

• Land Price Increase

• RidershipIncrease

• Business Increase

• Cost Recovery

CF +_ _+ _+

Advertisement

Fees

Fees

“Development” based LVC

“Tax or Fee” based LVC

35

COSTS REVENUES

Land Value Capture Global Good Practices: Schemes

and Instruments

36

Total Land Area

1,104 sq. kmUrban Area

261 sq. km

(23.6%)Population

7 millionUrban Density

26,700 people/sq. kmPrivate Vehicles

60/1,000 residents

Hong Kong

MTR is a “backbone” of Hong Kong’s urban developmentHong Kong’s “urban density” supports MTR’s ridership

J.Murakami37

HKSAR: R+P Program (1)

Sources: Based on Cervero and Murakami 2009.Note: MTR = mass transit railway.

38

HKSAR: R+P Mechanism (2)

Source: Based on Hong Kong SAR, China, Mass Transit Railway (MTR) route maps and other maps.Note: R+P = Rail Plus Property.

39

MTR Corporation

http://eoimages.gsfc.nasa.gov/images/imagerecords/0/896/earth_lights_lrg.jpg

MTR Corporation, Revenue Sources, 2000-2010

Source: Hiroaki Suzuki et Al, Financing Transit-Oriented Development with Land Value40

http://www.google.com.hk/url?sa=i&rct=j&q=MTR%20logo&source=images&cd=&cad=rja&docid=lwKeqaHqmT4wfM&tbnid=g3JNV8HVaLtmSM:&ved=&url=http://www.logoinlogo.tw/Logo-Gallery-Best/Logo-Gallery-show-193.htm&ei=vdKHUcv7CYPxiAeXxoCQBw&psig=AFQjCNHTQ2x_ofp9mk1BGwD4aRRDu7Huzg&ust=1367942205563951

Early GenerationTin Hau Station (1989)Site Area…0.58 ha Residential… 61,000 sqm(72.9%)Commercial… 3,700 sqm(4.4%)Others… 19,000 sqm(22.7%)Parking… 650 lotsF.A.R… 14.43

J.Murakami

41

Integrated Development Package

Source: AL Stephan (2013)

Kowloon Station (1998-2010): 13.5 ha

42

Mass Transit IntegrationHow to Finance Massive Transit Investments?Explore Possible Land Value Capture Financing

43Hong Kong MTR’s Maritime Square Residential-Retail DevelopmentSource: Hong Kong MTR

Presenter

Presentation Notes

READ SLIDE ONLY Highlighted Areas

Recent GenerationTung Chung Station (1998)

Site Area… 21.7 haResidential… 935,910 sqm (90.8%)

Office…14,999 sqm(1.5%)Commercial… 55,862 sqm(5.4%)

Hotel… 22,000 sqm(2.1%)Others…2,063 sqm(0.2%)

Parking….. 3,869 lotsF.A.R… 4.76

J.Murakami

44

Tokyo: Multiplicityabout 3 500 km

about 2 000 stations

48 Operators(Mostly Private Agencies)

Source: Based on data from National Land Information, Ministry of Infrastructure, Land, and Transport (MILT), Japan.

Population: 36.93 million

Land Area: 13,368 sq. km

45

Example 1: Tokyu Corporation (1)

http://eoimages.gsfc.nasa.gov/images/imagerecords/0/896/earth_lights_lrg.jpg

Tokyu Corporation, Revenue Sources 2004-2013

Source: Hiroaki Suzuki et Al, Financing Transit-Oriented Development with Land Value46

http://www.google.com.hk/url?sa=i&rct=j&q=Tokyu+logo&source=images&cd=&cad=rja&docid=mudd0p17eNEjnM&tbnid=216xMlz8D444HM:&ved=&url=http://www.brandprofiles.com/tokyu-logo&ei=m9OHUd-ACcXmiAf2iYFg&psig=AFQjCNGr4pu9W-QGlxOgbZPuyUvBSwFC8Q&ust=1367942427403652

Example 1: Tokyu Corporation (2)Privately Develop & Operate

Total 105 km Rail Network

Garden City

Shibuya

J.Murakami

47

http://www.google.com.hk/url?sa=i&rct=j&q=tokyu+logo&source=images&cd=&cad=rja&docid=8WBr7xMLWPnQfM&tbnid=hTeLaVTRP7hkNM:&ved=0CAUQjRw&url=http://www.seeklogo.com/tag.html?q=Tokyu&ei=1I6KUfG_NeuaiAep6YGQAQ&psig=AFQjCNEt25M7ZSouyHUgwFtF6qKXN0F-ZA&ust=1368121398068272

Tama-Plaza Station Area (5.1 ha)


Source: Nikken Sekkei Corporation

Garden City Line & New Town Development 2,983 ha (1960-1980s)

Tokyu Corporation

48

Futagotamagawa Station Redevelopment 11.2 ha (2000-2015)

Source: Tokyu Corporation 2013


Tokyu Corporation

49

Shop

Corporate Ownership & Stewardship Model

Group’s Intergenerational Resource Allocation

Very-LowRidership

Farm LandLand Readjustment

Univ. house house house house Mall

High percentage of the key station areas are owned by Tokyu Corporation

Tokyu’s Railway Business

Tokyu’s Property Business

HighRidership

Land Readjustment/Redevelopment

Condo.

Office/Hotel

Very HighRidership


J.Murakami

50

http://www.google.com.hk/url?sa=i&rct=j&q=tokyu+logo&source=images&cd=&cad=rja&docid=8WBr7xMLWPnQfM&tbnid=hTeLaVTRP7hkNM:&ved=0CAUQjRw&url=http://www.seeklogo.com/tag.html?q=Tokyu&ei=1I6KUfG_NeuaiAep6YGQAQ&psig=AFQjCNEt25M7ZSouyHUgwFtF6qKXN0F-ZA&ust=1368121398068272

Example 2: H-R Integration (1)

Source: Chiba Prefecture 2012

Tsukuba Express (1998-2006)

58 km20 Stations

Rail Construction Costs

US$ 9.4 billion

Integrated Housing-Rail Development Act of 1989Land Readjustment Projects

19 Districts

Total 2,908 ha

51



Mistui Fudosan

52



AA

B B EE

DDC CPark

A’s Original Land Adjusted Land

Reduced Land

Public Uses

Investment

Public Budget

Public UsesCompensations

Sale

For SaleAA

B B EE

DDC CPark

A ’s Original Land Adjusted Land

Reduced LandBudget

Compensations

Sale

For Sale

Public Uses

Public Uses

1 st Stage

Right of Way

Land Re-adjustment Project Area

Acquired Land

Readjustment

2 nd . Stage

3 rd. StageNew Station

Right of Way

Commercial Use

Park

Residential Use

1 st Stage

Right of Way-Project Area

Acquired Land

Re-adjustment

2 nd . Stage

3 rd. StageNew Station

Right of Way

Commercial UsePark

Residential Use

Integrated H-R Land Readjustment: Mechanism<Local Governments, Housing Agencies, Land Owners>

53

Single Use Maximum FAR: 2.0

Mixed Use Maximum FAR: 6.0

“Consolidated” Owners A, B, C, D, E, F & G

B

C DE

FG

Metro (Proposal)Metro (Open)

A

Floor Area Rights

b

c d

f

New x Sales

a, b, c, d & f

aNew Owner

X

Public Facilities

“Fragmented” Owners

GovernmentSubsidy

Zoning Change

Developer

Land Value Capture Instrument (2)Urban Redevelopment Financing Instrument

54

Joint Value Creation & Profit SharingUrban Redevelopment Financing Instrument

Stakeholders Contribution Benefit

Landholders A, B, C, D, E, F & G

Land Parcel for the New Building

Joint Ownership of Land for the New Building (Section A, B, C, D, E, F & G) with higher access and better local infrastructure and service provision

Building Ownersa, b, c, d & f

Old Buildings and Housing Units

Ownership of the New Building (Section a, b, c, d & f) with higher access and better local infrastructure and service provision

Developer Capital and Property Development Expertise

Profit from Section X & from Surplus FAR

Transit Company

Construction of Transit Station Transit Supportive Environment/Increased Ridership

National Government

Subsides for Land Assemblage and Road Construction

Save Road Construction Costs

Local Government

Change in Zoning Code (from Single Use to Mixed Use with Higher FAR)

Higher Property Tax RevenuePromotes Local Economic DevelopmentBuilds Townships Resilient to Natural Disasters 55

Example 3: Depot Redevelopment (1)

Source: JNR Settlement Corporation 2008

Urban Regeneration

Jin Murakami

56

JNR Yard: National Land Sales

Shinagawa Station 16.2 ha (1992-2008)


Source: JNR Settlement Corporation 200857

http://upload.wikimedia.org/wikipedia/commons/e/e1/Shinagawa_station_tokyo_japan_1984_aerial-2.jpg

Civic Space Provision & FAR Bonus(e.g., Case of Shinagawa Station Area)

4.0

FAR AssessmentBefore

(Industrial Site)

4.0

7.0

BaseFAR

After(Office Site)

Green Space, Underground Access Road & Pedestrian Network18,167 sq.m. Civic Open Space12,480 sq.m

+1.9

Joint Housing Provision35,433 sq.m.

+0.6

9.5


J.Murakami 58

59

HIKARIE Data

Consecutive Urban Redevelopments Through Restructuring Station-related Infrastructure

［Completion of construction］ 2012 ［Owner］Tokyu Corporation and others ［Total floor area］ 144,000㎡ approx.［Number of lines］ 8 lines, 6 stations ［Number of passengers］ 3,000,000 persons per day approx.

Source: Nikken Sekkei Corp.

Example 4: Tokyu Shibuya Station District Redevelopment

Presenter

Presentation Notes

Shibuya is very famous as a cultural and entertainment core in Tokyo Downtown. About ten years ago, the comprehensive redevelopment plan of Shibuya stations and surrounding areas was started and the first new development was completed last year.

60

涩谷新文化街区

计划开发街区

Shibuya Station

Shibuya Station District Redevelopment

〔TOPIC-1〕Hub stations along Railroads Network

Inokashira Line

Yamanote Line



Presenter

Presentation Notes

Before going into redevelopment, I will briefly explain the station renovation plans. This is the condition of 5 years ago. Shibuya station is a group of several stations which belong to JR line, private sector lines, and the subway. �The fist motivation of redevelopment is that the station buildings in the center, which contains department store and some structure of railway stations is almost 80 years old, and was judged as non-resistant building against severe earthquakes. And the second motivation was the improvement of circulation systems among various stations and traffic modes. So, the government and railway sectors decided to shift some stations to the better location, restructure the whole transition system, and redevelop the new complex buildings to maximize the value of railway sectors’ properties. Firstly, new subway station of FUKUTOSHIN line was newly built under the street, and then TOKYU TOYOKO line terminal station was shifted and connected to this line. Secondly the station of GINZA line is now going to be replaced to the east, and then lastly, JR SAIKYO line station will be shifted to the north.

61Adopting “FAR Transfer System” to earn restoration costs

Tokyo Station

Post War : Temporary Mended Roof

Floor Area Ratio Transfer System

2012 : Restoration to the Original

Original 1914

61© 2015 Mitsubishi Estate Co Ltd

Preservation &Restoration

Win-Win Structure forBoth Public & PrivateFAR Seller & Buyer

Example 5 Tokyo Railway Renovation by Air Right Sale

Nanchang: Public Development Right Sale for New Metro Construction (1)

Suzuki, Murakami, Hong and Tamayose, 201462

Nanchang: Public Development Right Sale for New Metro Construction (2)

Suzuki, Murakami, Hong and Tamayose, 2014 63

14Hyderabad: Innovative PPP

Private Concessionaire : Min. Gap Fund Request Project Period of 35 years Property Development Rights

(25 Sites + 3 Depots)

Design-Build-Finance-Operate-Transfer (DBFOT)Project Revenues (est.):• Fare Box = 50% • Real Estate = 45%• Other = 5%

Gov. & Special Purpose Vehicle : Land Acquisition Statutory Clearances 10% Max. Gap Fund 300 m TOD zone

J.Murakami64


Critical Factors for Success of LVC in Developing Countries• Inclusive Land Value Capture: Aim at “Win Win” for All the Stakeholders, including urban poor in

the project area;• Sound planning principle based on Visionary Long-Term Master Plan;• Intergovernmental collaboration is must, especially at capital city.• Macro fundamental and regional economic growth is fundamental;• Public landownership is important, but not absolutely necessary;• Flexible zoning should be provided by the city planning authority;• Entrepreneurship is prompted by the transit agency (creating a real-estate development unit by

bringing in private business expertise and/or develop partnership with businesses);• Develop, clear, fair and transparent rules to prevent corruption;• Loan or other source of financing is still needed as bridge financing till LVC can materialize; and• LVC is not a silver bullet, explore multiple funding sources, hedging against real-estate market

risks

66

Conclusion.TOD which creates articulated densities around transit hubs by

locating amenities, employment, retail, and housing in close proximity—is one of the most effective ways to achieve sustainable urban development and to increase value.Collaborative efforts of national government, municipalities,

transit agencies, developers, landowners, and communities can maximize LVC premium. In this joint value-creating and sharing exercise, municipalities and transit agencies can contribute significantly to value creation either through zoning changes (FARs and land use) and through transit investment. The rapid population increase and robust economic growth in

rapidly growing cities in developing countries, particularly in middle-income countries, are certainly favorable for development-based LVC. 67

TODSustainable

Urban DevelopmentLVC

[email protected]

68

THANKS

https://openknowledge.worldbank.org/discover?scope=%2F&query=hiroaki+suzuki&submit=

mailto:[email protected]

https://openknowledge.worldbank.org/discover?scope=/&query=hiroaki+suzuki&submit=

Transit as Spine of Cities

Copenhagen’s “Finger Plan” for Urban Development.

Source: Robert Cervero

Singapore’s Constellation Plan

Source: Singapore Land Transport Authority

69

C D

B E B E

C D

AA

A’s original land

A’s new land

Reserved land

Sale

Public uses

CompensationsPublic uses

For sale

Park

Land Value Capture Instrument (1)Land Readjustment Scheme

Sources: Murakami, 2010; Suzuki, Murakami, Hong and Tamayose, 201470

Stage 1Right of way

Acquired land

Project area

Stage 3New station

Commercial building

Park

Residential parcel

Stage 2Right of way

Assemblage

Application of Land Readjustment to Transit Project

Sources: Murakami, 2010; Suzuki, Murakami, Hong and Tamayose, 201471

72

To the Sea

To the Uphill

ShibuyaStationCentral

Shibuya HIKARIE ShibuyaSakuragaokaRedevelopment

ShibuyaDogenzakaRedevelopment.

Shibuya Station-south

④ Environment Conscious Development utilizing Natural Energy

Shibuya Station〔TOPIC-1〕Hub stations along Railroads Network

Conserving Wind Corridor and Creating Green-covered Roofs are two major guidelines for the Development


Presenter

Presentation Notes

Within the overall master plan, creating green connection and conserving wind corridor are also key design factors within this heavily condensed urban environment.

Public & Private SectorAdvisory Committee

on Area Development (1996)

Started with 59 Private Landlords & Chiyoda City (now 68 PL & 21 Associates)

Redevelopment Project Council (1988)

Area Management Association(2002)

+ Tokyo Metropolitan Government

+ East Japan Railway+ Chiyoda City City Planning

Guidelines (2000)

Environmental Considerations

Association for CreatingSustainability in Development(2007)

Nonprofit Organization

PPP AgreementDevelopment Master Plan

Unprecedented Public-Private Partnerships

DevelopmentMethod

DevelopmentLocal Rules

Future Vision

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