Financing | Allied Developments | Challenges

Sumeet Sharma

Asst. Vice President

Infrastructure Services

TRANSIT

ORIENTED

DEVELOPMENT - The Indian context

Source – www.indianexpress.com

Outlines

TOD – Complications

Aspect of financing TOD Infrastructure

Tools for Funding

Real Estate & Challenges

Probable Solutions

Questions | Suggestions

Financing TOD Infrastructure – Aspects

Revenue Generating Infra – Parking | Toll Roads | Bridges

Non revenue generating Infra – sidewalks | bike trails | local roads | parks

TOD Infra Financing Strategy: -

• VISION AND GOAL for the entire area rather than a particular project

• Assessment of LOCAL REAL ESTATE market context

• Key infrastructure NEEDS and associated COSTS

• PHASING PLAN for infrastructure improvements

• INSTITUTIONAL MECHANISM for implementing the project

• Identification and assessment of POTENTIAL FUNDING SOURCES tailored to

accommodate above.

Tools for Funding TOD Infrastructure

• User Fees &

Transportation Utility

Fees

• Congestion Pricing

DEBT CREDIT ASSISTANCE DIRECT FEES

VALUE CAPTURE GRANTS EQUITY

• Term loan /

commercial debt from

financial institutions

• Bond Financing

• Grants / Terms Loans

/ Soft Loans from

Donor Agencies

• Public Private

Partnerships

• Infrastructure

Investment Funds

• Development / Impact

Fee

• Special Districts

• TIF

• Joint Development

• Budgetary provisions

for infrastructure

development by

Central / State / local

governments

Real Estate & Challenges

PRIORITY

TRANSIT

CORRIDOR

TOD ZONE TOD ZONE SUB-URBAN

AREA

PERIPHERAL

AREA SUB-URBAN

AREA

PERIPHERAL

AREA

BASELINE – DISTANCE IN KMs BASELINE – DISTANCE IN KMs

ME

AS

UR

EM

EN

T

UN

ITS

NEED

AFFORDABILITY

TOD - Complications

2. Already developed high density residential and commercial markets

1. Variant transit stations with different development patterns and market strengths

3. Assembling of land from multiple owners – government as well as private

4. Need for affordable housing, social and economic inclusiveness

6. Need for affordable housing, social and economic inclusiveness

5. Difficulty in recovery of revenues in terms of user fees

7. Need to put in place funding sources before inviting private investments

Probable Solutions

Regulatory reforms to control the use and parking of personal vehicles

Improvised development control norms for the TOD zone

Enforce in-situ slum redevelopments to the extent possible

Integrate TOD and allied projects with social and economic reform for increased quality of life

Restrictive FAR with incentivized development norms for premium housing in peripheral zones

Increased incentives for affordable housing in TOD zones

Effective use of Transferable Development Rights (TDRs) for public development in TOD zone

Thank you

For further information, kindly contact: -

Sumeet Sharma

Asst. Vice President

Infrastructure Services

Jones Lang LaSalle Property Consultants India Pvt. Ltd.

Level 7, Tower A, Peninsula Business Park,

Senapati Bapat Marg, Lower Parel,

Mumbai – 400 013.

Tel: - +91 22 6620 7575

M: - +91 95722 80454

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