The two projects will cost about $1 billion combined, most of which is already budgeted, with both to be completed in the 2022 financial year.
The Public Transport Authority has planned for about $5 billion of capital works going forward.
Urbis regional director Ray Haeren told Business News that value capture in its purest form would be politically and administratively difficult, with an infrastructure contribution charge more likely.
Rather than taxing existing residents for capital gains, it meant only developers of future projects would pay a levy.
“The biggest potential is the development you can get to happen around that station … (which can) revitalise an entire area.
“Value capture is something that all the major Australian cities are struggling with and no-one has actually got it sorted out yet,” Mr Haeren said.
“The difficulty is who is the benefactor … is it the person who develops, or is it the person who owned the site when the opportunity arose when the infrastructure was announced?
“You need to get those systems in place before you announce a new line, that ship has sailed.”
A practice known as value uplift, using public landholdings near infrastructure projects, was another option, he said.
In Victoria, contractors removing level crossings were given nearby land to develop, reducing the cash cost of work for the government.
Mr Haeren said there were opportunities in Metronet to develop areas around stations into precincts, something the state government seemed to be getting right so far.
“A station is a station, it serves a particular function,” he said.
“The biggest potential is the development you can get to happen around that station … (which can) revitalise an entire area.”
The above is a snippet from the original article published by WA Business News. Read the full article here.