Joint development projects involve:
- Integrated development of transit and non-transit improvements, with transit projects physically or functionally related to commercial, residential, or mixed-use development
- Public and private investments that are coordinated between transit agencies and developers to improve land owned by a transit agency or related to a transit improvement
- Mutual benefit and shared cost among all parties involved
Joint development would occur when a transit agency partners with a developer to lease property owned by the transit agency near a transit station to build office space or residential units, thereby raising revenue for the transit system in the process.
Another example of a joint development would be coordinated construction of an underground transit station and a mixed-use development above it in the air rights. A project like this could be accomplished using a public-private partnership (P3).
Joint development is a form of value capture, as a transit agency captures some of the economic value created by its transit system and uses the funds to help finance expenses.
If a project receives financial assistance from FTA, then it is an FTA-assisted joint development. Joint development projects may utilize financial assistance from FTA through:
- New grant funding through one of FTA’s planning or capital grants programs
- Development of property or air rights previously acquired with FTA grant funding
FTA does not offer a grants program specifically for joint development. FTA-assisted joint developments are subject to the requirements of the FTA grants program through which they received funding.