Printer Friendly

MTA BOARD RECOMMENDS CREATION OF BENEFIT ASSESSMENT DISTRICTS FOR METRO RED LINE SEGMENTS 2 AND 3

 LOS ANGELES, Oct. 27 /PRNewswire/ -- The MTA board of directors voted today to recommend to the Los Angeles City Council and the Los Angeles County Board of Supervisors that benefit assessment districts be created for Segments 2 and 3 of the Metro Red Line.
 "Benefit assessments represent a critical local funding component of the project and will help pay for the construction of stations," said Richard Alatorre, MTA chairman. "This private sector support was key to securing federal funding for the first segment of the Metro Red Line, Segment 2 and the North Hollywood extension of Segment 3."
 The proposed districts encompass the extension from Wilshire/Alvarado to Wilshire/Western, the northern branch along Vermont Avenue, the segment from Hollywood/Vermont to Hollywood/Highland and the North Hollywood extension, including Universal City. They include 2,444 assessable properties located within one-half mile walking distance from 11 Red Line stations.
 Benefit assessments are levied on properties adjacent to stations, which will benefit from the proximity to the Metro Red Line. "Business will benefit from the value added to the area and from the increase in pedestrian circulation near the stations," Alatorre said. "Projected benefits for the Red Line station areas, along Segment 2 and the North Hollywood extension of Segment 3, range from a low of $192 million to a high of $494 million."
 Benefits include the appreciation of land value, higher lease rates, new development potential, increased sales in retail stores, higher occupancy levels and increased pedestrian activity.
 Residential properties are exempt from assessment. Properties owned and used by public agencies and non-profit entities also are exempt.
 Benefit assessment districts for Segment 1 of the Metro Red Line were approved in 1985. Property owners began to pay assessments in 1993 after Segment 1 of the Red Line opened. The Segment 1 districts will generate $130.3 million to help pay for the constructed stations.
 The former RTD board of directors initiated the formation of the Segment 2 and 3 districts in 1990. The required final approval from the Los Angeles City Council and the Los Angeles County Board of Supervisors was delayed pending settlement of litigation stemming from Segment 1 districts. All cases have now been settled.
 Creation of the benefit assessment districts also may be subject to a vote of property owners in two of the proposed Metro Red Line districts.
 Property owners located near Segment 2 and the North Hollywood extension of Segment 3 would begin payments after the Red Line opens in their neighborhoods. Owners will be able to select from four payment options once the districts are established. Payment options include payments over a 29-year period once the line opens; full payment when the stations are open; five annual installments; or discounted lump sum when the districts are established.
 -0- 10/27/93
 /CONTACT: Clara Potes-Fellow or Jim Smart, 213-244-6566 or 213-244-7443, both of MTA News Bureau/ CO: Los Angeles County Metropolitan Transportation Authority ST: California IN: SU:


LM-JL -- LA051 -- 7614 10/27/93 20:01 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 27, 1993
Words:501
Previous Article:MTA RESTRUCTURES OUTSIDE LEGISLATIVE ADVOCACY TEAM: CUTS ANNUAL COSTS BY OVER $375,000
Next Article:MTA BOARD APPROVES ALTERNATIVE FUEL POLICY; MTA TO BUY ONLY ALTERNATIVE FUEL BUSES
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters