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July 29, 2011
What Jay Walder's new city, Hong Kong, can teach us about transit: Make money, don't just spend it
NY Daily News
by Alex Marshall
The Regional Plan Association's Marshall wonders why Bruce Ratner should get a discount, and then get to keep the change.
The impending departure of Metropolitan Transportation Authority chief Jay Walder for the more lucrative shores of Hong Kong to lead its metro and commuter rail system has one silver lining: It has brought our attention to a top-notch metro system that not only can pay its chief a million-dollar plus salary, but which doesn't need public money at all. In fact, the Hong Kong Mass Transit Railway Corp. actually makes money.
As the MTA worked this week to make up billions of dollars in shortfall in its capital budget, despite having cut thousands of jobs and vital services over the last few years, the question screams out: How does Hong Kong do it?
The answer is that Hong Kong's MTR also acts as a real estate developer and business company. It owns 12 shopping malls built around its stations, as well as residential and office properties. The primary goal, of course, is to move people; but actually making a profit is a huge added benefit - one that the MTA must consider.
...What if the MTA had chosen to develop the land around the Hudson Yards in Manhattan instead of effectively selling it off to a developer? Or take Atlantic Yards in Brooklyn: Why should the private sector reap most of the benefits from track and station improvements?
NoLandGrab: And let's not forget the state's giveaway of lucrative arena naming rights, too.
Posted by eric at July 29, 2011 11:16 AM