Op-Ed Supports Value Capture-Enabled Transit Investments

Two USC professors argue that Los Angeles would be better served if Metro could recapture some of its investment in the county's expanding rail system.

2 minute read

May 31, 2016, 12:00 PM PDT

By Elana Eden


Transit Oriented Development

Angel DiBilio / Shutterstock

In light of the extensions of the Los Angeles County Metropolitan Transportation Authority's (Metro) extension of the Gold and Expo lines this year, USC professors Marlon Boarnet and Gary Painter want to ensure that the benefits of Metro investments get back to L.A. communities.

In a Los Angeles Times op-ed, the authors note areas in the city where rail investment has helped to drive up the value of land and to fuel development. Metro has helped to generate that value, they argue, so Metro should be able to recoup some of it for the benefit of the city—especially areas neglected by other investment:

"Fairness suggests that the taxpayers who are footing the bill for the transit lines should share in the wealth that rail creates."

The authors look to Hong Kong and Brazil for successful value-capture programs, but ultimately endorse a local solution: Enhanced Infrastructure Financing Districts (EIFDs).

If Metro could establish EIFDs surrounding stations throughout the rail system, the agency could capture the tax increment from the increase in land value created by its projects.

The revenue could go toward building affordable housing (Metro's Joint Development Program currently has a target of 35 percent affordable units per project), parks, further transportation improvements, or any number of things.

As the authors point out, all this would make Metro "much more than a people-mover"—a direction the agency has already been moving in, with its stated attention to gentrification and policy of fostering transit-oriented communities.

EIFDs are still new, and few have taken shape in urban areas, although one has been proposed around the L.A. River.

Monday, May 16, 2016 in Los Angeles Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Aerial view of downtown San Antonio, Texas at night with rotating Tower of the Americas in foreground.

San Antonio and Austin are Fusing Into one Massive Megaregion

The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

July 3, 2025 - Governing

White park shuttles with large Zion logo on side and red rock cliffs in background in Zion National Park.

Since Zion's Shuttles Went Electric “The Smog is Gone”

Visitors to Zion National Park can enjoy the canyon via the nation’s first fully electric park shuttle system.

1 hour ago - Reasons to Be Cheerful

Chart of federal transportation funding comparing Biden and Trump administration spending.

Trump Distributing DOT Safety Funds at 1/10 Rate of Biden

Funds for Safe Streets and other transportation safety and equity programs are being held up by administrative reviews and conflicts with the Trump administration’s priorities.

2 hours ago - Transportation for America

Close-up on yellow and black TAXI sign on top of beige car in central Munich, Germany.

German Cities Subsidize Taxis for Women Amid Wave of Violence

Free or low-cost taxi rides can help women navigate cities more safely, but critics say the programs don't address the root causes of violence against women.

3 hours ago - Bloomberg