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facility design and provided funding for the construction.
Construction management was conducted by UPS's Engi-
neering Department which allowed the project to quickly
move forward. The Pace/UPS partnership provides a bus ter-
minal facility that improves bus operations and encourages
transit use at this large employment site.
FUNDING STRATEGIES
Funding for the integration of bus transit service and land
development can be found in a variety of sources. Two types
of funding are generally needed: funding to build the physi-
FIGURE 16 Transit facility serves the Overlake (Washington
State) housing development (Courtesy: The Allied Group, Inc., cal facilities in the development and funding to support the
Renton, Washington.) operation of desired bus service improvements. The possible
funding sources discussed here include developer support,
municipal support, planning funds, tax increment financing,
commuters. The site includes a day care facility and is an and land incentives.
active transit transfer facility. Subsidized bus passes are pro-
vided to residents as an incentive to ride the bus and help
reduce automobile congestion in the region. King County Developer Support
Metro retains ownership of the park and ride lot, receives air
rights lease payments from the developer, and will own the The most obvious funding source is to look to the developer
entire development after 50 years. King County has completed to provide transit facilities within the development as part of
two other TOD projects and has several others in development. the project construction costs. The developer is sometimes
King County uses a variety of means to implement TOD proj- willing to provide transit facilities in instances where the pro-
ects, including outright sale of parking lots with the proceeds vision of transit elements offsets the cost of roadway impact
used to build spaces in the TOD development and the long- fees. In some areas, the roadway improvements that are
term lease of parking in mixed-use facilities. required as a result of a new development are paid for by the
developer. Adding lanes or improving signalization can be
very expensive, and it is often less expensive to encourage
Creating Relationships with Developers the use of transit to the development.
and Building Owners
In addition to the provision of transit facilities within new
Developers and building owners associate with lenders, con- developments, transit agencies can partner with developers
sultants, construction engineers, and real estate managers. or building owners to subsidize the operation of new or
These decision makers, who can influence the design and revised bus service. LYNX has successfully persuaded
form of developments, typically do not interact with transit developers to fund the operating costs of new bus service for
officials. As a result, developers and building owners are not up to 2 years. For many transit agencies it is more difficult to
acquainted with transit interests, and transit provisions in fund the operating costs of new bus routes than to obtain cap-
new developments are not at the top of their agenda. To par- ital costs for shelters, benches, etc. Obtaining the start-up
tially remedy this unfamiliarity with transit, transit staff costs of a new, unproven route ensures that the service will
could consider attending meetings, conferences, and other be provided at least for the first 2 years. After that time, the
events that are attended by business leaders, developers, and transit agency can determine if the route will meet perfor-
elected officials. Staff could volunteer to give presentations mance goals.
that highlight the benefits of transit to new developments.
Providing new ideas and a fresh perspective can raise aware- In addition to the transit terminal on its property noted
ness, generate interest, and build new relationships. previously, UPS actively supports transit to the facility by
subsidizing several bus routes. These routes are designed to
connect low-to-moderate income neighborhoods with direct
Building Partnerships service to UPS for all shift changes.
Building partnerships with building owners is also a suc-
cessful strategy for integrating bus service into new devel- Municipal Support
opments. For example, Pace Suburban Bus in the Chicago,
Illinois, region has partnered with United Parcel Service Good communication and cooperation between local gov-
(UPS) in Hodgkins, Illinois, to provide a transit facility ernments and the transit agency can result in special funding
within the UPS parking lot. Pace consulted with UPS on the made available through parking fees or other municipal
