How do I demonstrate an “economic benefit” or a “transit benefit” to FTA’s satisfaction?
While FTA does not set a threshold for satisfying the Economic Benefit or Transit Benefit criteria, it does require project sponsors to demonstrate that the joint development meets the criteria. FTA may decline approval for a joint development if the project sponsor does not sufficiently address these criteria.
FTA does not set a value or monetary threshold for satisfying the Economic Benefit criterion. A project sponsor may satisfy this criterion by demonstrating that the project adds economic value to development activity occurring near a transit facility, including but not limited to new housing, office, retail, or other commercial activity. Private investment may be monetary or it may take the form of in-kind real property, commercial or residential development, or some other benefit to be generated initially or over the life of the joint development.
Similarly, FTA does not set a threshold for satisfying the Transit Benefit criterion. A project sponsor may satisfy this criterion by demonstrating that the project enhances the effectiveness of a transit service (e.g., increases transit ridership, reduces travel times, or enhances transit operations) or enhances multi-modal coordination between a transit service and another transportation mode (e.g., builds parking, adds bike racks, or improves pedestrian access to transit). Additionally, a project must have a physical or functional relationship to transit.
FTA only requires that a project sponsor identify the forecasts, reports, or studies that demonstrate the satisfaction of the Economic Benefit and Transit Benefit criteria. Project sponsors are not required to submit these documents along with their joint development project requests, unless requested by FTA.