Bruce Schaller in effect. Most important is the use of Tax Increment Financing to fund a new subway line/extension:
One key to the No. 7 extension’s fast progress involved the financing. Mayor Michael Bloomberg and Deputy Mayor Dan Doctoroff, champions of the project, recognized early on that the 7 extension would go nowhere if it had to compete for funding with the Second Avenue subway, connection of the Long Island Rail Road to Grand Central Terminal, airport rail access projects, a new tunnel from New Jersey, replacement of the Tappan Zee Bridge and other mega projects. Thus, they developed a novel funding method. The bonds issued last month, and another set of bonds to be issued in several years, will be paid off using payments made to City Hall in lieu of taxes by new residential, retail and office development on the West Side, payments for development rights in the eastern part of Hudson rail yards themselves, and from other taxes collected from the area. Having its own funding source was immensely important to bringing the 7 extension along.This isn't really that new a concept for transportation funding, just in America! It is generally referred to (eg in Cervero) as Value Capture. And what, putting the Gowanus Expressway underground?
