Property and economic analysis

A Property and Economic Analysis is a quantitative analysis to determine the extent of any changes in property values and economic activity as a result of interchance investment. Analysis of economic potential can be made at interchange zone level versus local economy level to avoid competition of businesses and negative added economic value.

In France, within the scope of declarations of public utility (“Déclaration d’Utilité Publique”), socio-economic impact studies are conducted especially to determine the economic viability of the project.

A ‘declaration of public utility’ is an administrative procedure under French law that allows a development operation to be conducted, as with the creation of a public transport line on private land through it being expropriated precisely for the public utility cause; it is obtained following a public utility enquiry. The prefect decides to launch a public enquiry aimed at calling on the views of all interested persons. This enquiry must last at least 1 month and be supported by an impact study when major projects or projects exceeding a certain technical threshold are concerned. For example, it allows a property owner threatened by expropriation to contest the public utility of the operation envisaged. These views are examined by a commission or by an investigating commissioner who formulates conclusions, whether favourable or unfavourable, on the project.

It is thus a regulatory tool based on the Civil Code, the Town Planning Code, the Environment Code and the Transport Code.

It is to be noted that the economic and property related analyses for projects do not directly concern interchanges, but rather any urban project.

Moreover, monitoring and evaluation studies on projects after their implementation and on the basis of the DPU and compulsory within the framework of a subsidy aim to evaluate the project’s impact, especially on town planning (urban densification generated, impact on the cost of real estate, etc.) and on the economy (budget, property cost, real estate costs, revenues from traders, etc.) but also on travel and on the environment.

This procedure may take between 12 and 18 months.

 


NODES strategic objectiveContribution
Enhance accessibility and integration 0
Enhance intermodality 0
Enhance liveability +
Increase safety and security conditions 0
Increase economic viability and costs efficiency +
Stimulate local economy ++
Increase environmental efficiency +
Increase energy efficiency 0

Good practice

SpECTra (Spatial Economic Consequences of Transport) – a sub-regional economics impact model to assess the impacts of transport investments at a local and regional level.

Wider Economic Benefits (WEB) – a clear methodology to evaluate the economical impact of the infrastructure, new accessibility increase in the area, etc. It helps to evaluate the whole impact in terms of money.

In Athens, impact studies take place at metro stations.

In the UK, many cities apply it, such as the Crossrail project in London.

In France, the “déclaration d’utilité publique” of one project, an official declaration that it is in the public interest, contains social and economic impact studies.


Potential interchange performance improvement

With less funds available, local authorities and central government departments alike need to consider carefully how to extract the most value for money out of the resources they have. Although less funding is available, a sub-regional economic impacts model offers more freedom for local authorities to prioritise funds to meet their own objectives, rather than central government objectives.  Councils may care less about delivering time-savings per se and national value for money and more about supporting growth in local employment, population, productivity and land values.


Resources

Studies vary in size and cost according to the nature and duration of the project.

References

SpECTra – Spatial Economic Consequences of Transport  http://www.steerdaviesgleave.com/news-and-insights/new-tool-help-understand-local-economic-impacts-transport-

Crossrail – Wider Economic Benefits   http://www.crossrail.co.uk/benefits/wider-economic-benefits/