Fiscal Assessment of Transit-Oriented Development in Dallas Area Rapid Transit Service Area
The research reported here offers a new assessment of the fiscal impacts of transit-oriented development associated with development of the Dallas Area Rapid Transit light rail system. The analysis considers development near existing and planned light rail stations. Our findings support the conclusion that the transit-oriented developments associated with DART Rail stations offer substantial fiscal impacts for local taxing entities. These findings include:
- The announced existing and projected values of development projects located near DART Rail stations have increased by almost 50 percent since 2005.
- While there are many factors contributing to development investment decisions, proximity to an LRT station is often an important site location factor. The total value of projects that are attributable to the presence of a DART Rail station since 1999 is $4.26 billion (see Table ES1).
- Adjusting for tax exemptions and the value of public buildings, the taxable value of real and business personal property associated with the projects reviewed in this analysis along existing DART Rail corridors and the planned Green, Orange, and Blue Line extensions exceed $2.84 billion.
- Increased taxable property values associated with the rail stations have the potential to generate on-going annual tax revenues totaling:
- $16.8 million for DART member cities;
- Over $46 million for area school districts;
- $6.6 million that will be shared by Dallas and Collin counties;
- Approximately $2.3 million each year that will be shared by Dallas County Community College District and Collin County Community College District;
- As much as $6.7 for Parkland Hospital in new annual revenues attributable to DART-related transit-oriented development.
- Based on our fiscal planning model, the retail component of transit-oriented development projects in the DART service area will generate over $660 million in annual taxable retail sales boosting local municipal revenues by $6.6 million annually.
- Total local fiscal impacts of development associated with DART Rail is estimated at $23.5 million each year once all announced projects are completed.
- These same taxable retail sales will generate over $41 million in revenue for the State of Texas.
- In total, once all announced projects are completed, state and local tax revenues associated with development near DART Rail stations will exceed $127 million per year.