BILL NUMBER: S4203
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the general municipal law, in relation to adjusting
value capture mechanisms for New York city and the metropolitan trans-
portation authority, including transparency requirements; and to amend
part PP of chapter 54 of the laws of 2016, amending the general munici-
pal law relating to the New York transit authority and the metropolitan
transportation authority, in relation to making such value capture mech-
anisms and transparency requirements permanent
 
PURPOSE:
To enable the MTA and NYC to engage in a value capture process indefi-
nitely that entails accountability measures, and to prioritize mech-
anisms that involve the capture of new revenue generated.
 
SUMMARY OF SPECIFIC PROVISIONS:
Transit projects create value to surrounding areas, increasing nearby
property values by 30 to 40 percent, and up to 150 percent under ideal
conditions, according to the Federal Transit Administration. The Ameri-
can Public Transit Association meanwhile estimates that every $1 spent
on transit generates $5 in economic activity.
Value capture comprises "the public recovery of a portion of increased
property and other value created as a result of public infrastructure
investment" (Transit Cooperative Research Project). Existing state law
GM 119-r authorizes cities, towns, villages and counties to adopt local
laws to authorize value capture with public transit authorities, includ-
ing with the Metropolitan Transportation Authority (MTA), in recognition
of the increase in property and land value that transportation projects
often bring to local areas. This existing law is set to sunset in 2023.
This bill amends GM 119-r to make the option of a value capture process
between New York City and the MTA permanent. The bill simultaneously
adds new accountability measures to ensure 1) proper due diligence and
transparency in establishing the increased value to surrounding areas by
any MTA project, and 2) that this process is open to the public. Final-
ly, the legislation removes the explicit mention of tax increment
financing (TIF) as a means for value capture, recognizing widespread
concerns that TIFs can extract much-needed city tax revenues and need-
lessly increase debt service and risk.
 
JUSTIFICATION:
Transit projects create value to surrounding areas, increasing nearby
property values by 30 to 40 percent, and up to 150 percent under ideal
conditions, according to the Federal Transit Administration. The Ameri-
can Public Transit Association meanwhile estimates that every $1 spent
on transit generates $5 in economic activity.
Value capture comprises "the public recovery of a portion of increased
property and other value created as a result of public infrastructure
investment" (Transit Cooperative Research Project). Existing state law
GM 119-r authorizes cities, towns, villages and counties to adopt local
laws to authorize value capture with public transit authorities, includ-
ing with the Metropolitan Transportation Authority (MTA), in recognition
of the increase in property and land value that transportation projects
often bring to local areas. This existing law is set to sunset in 2023.
This bill amends GM 119-r to make the option of a value capture process
between New York City and the MTA permanent. The bill simultaneously
adds new accountability measures to ensure 1) proper due diligence and
transparency in establishing the increased value to surrounding areas by
any MTA project, and 2) that this process is open to the public. Final-
ly, the legislation removes the explicit mention of tax increment
financing (TIF) as a means for value capture, recognizing widespread
concerns that TIFs can extract much-needed city tax revenues and need-
lessly increase debt service and risk.
 
PRIOR LEGISLATIVE HISTORY:
2024: S4417 Comrie/ A5018 Mamdani
 
FISCAL IMPLICATIONS:
Anticipated fiscal benefit to the State. Fiscal implication to local
government dependent on scale and nature of value capture mechanisms
agreed to between the City and MTA.
 
EFFECTIVE DATE:
This act shall take effect immediately.