Public land near the rail hubs should never be sold to private investors to help fund the Inner City Link. That is exactly the land that needs to stay in public hands.
The Jubilee Line Extension of the London underground, built during the 1990s generated huge uplifts in land values for the properties within 1000 meters of the hubs. A study showed that whereas the cost of the extension was £3.5 billion, the benefits to these property owners was £9 billion.
The practice of capturing at least part of this uptake in land value to fund the Inner City Rail Link could easily be applied to Auckland. Land Value Capture has contributed to the funding of the Sydney Harbour Bridge and the Melbourne inner city rail. If the Far North District Council uses this practice to build remote roads, why can’t Auckland?
Helpfully today the Mayor issued a media statement outlining the exact businesses that stand to gain from the City Rail Link construction here. Yes it will bring business that is true, but wow what an increase in the land value they will all reap! Nice. Public funding brings private gain. Sweet as.
A couple of years ago I had the privilege of meeting Rick Rybeck, a city planner from Washington DC who, after their council had taken out one of the hubs from a plan for such a link, came to him and offered him a huge sum if they would change it back. He eventually worked out their land value would have risen at least twice this. He now works as a consultant on Land Value Capture. http://www.justeconomicsllc.com/experience.html