Transportation Tuesday recap: Introduction to Joint Development

September 18, 2025

In July, the RTA kicked off a two-phase study to determine whether a joint development program is feasible in the Chicago region, and if so, what it will look like and how it will benefit the region long term.

Joint Development allows a transit agency to partner with private developers to sell or lease agency-owned land near transit stations for real estate development. These partnerships can help the agency capture some of the land’s increased value and reinvest it into transit operations and build ridership. Joint Development is also a tool to meet goals related to affordable housing near transit, sustainability, and the generation of additional revenue through the farebox and land leases.

The second webinar of RTA’s 2025 Transportation Tuesday series held on September 16 focused on introducing joint development programs run by transit agencies in San Francisco, New Jersey, and Atlanta. The webinar, moderated by Heather Mullins, RTA Division Manager, Local Planning and Program Management, began with a brief overview of current ETOD in the Chicago region and defining joint development.

What is joint development?

The Federal Transit Administration defines joint development as “a form of value capture, as a transit agency captures some of the economic value created by its transit system and uses the funds to help finance expenses.” In practice this means agencies may lease, sell, or grant development rights on land they own – often near stations – to generate new revenue, grow ridership and encourage development aligned with transit goals.

While traditional ETOD can happen on land owned by local governments or private entities, joint development is unique because the transit agency is a direct partner in the process. This gives the agency a role in shaping the project and the potential to share in its long-term benefits.

Each strategy—whether selling land for a large upfront payment or leasing it for long-term income—has its pros and cons. Leasing can provide recurring revenue and more control over project goals, while selling offers immediate funds but removes future influence and income potential.

Joint development offers a way to:

• Realize economic development near transit
• Support ETOD and housing goals
• Offset construction and development costs by shifting those expenses to private partners
• Maintain partial control over how land is used near transit

What can we learn from peer regions?

While joint development has not been a prominent pursuit in the RTA’s legacy transit system due to limited ownership of parcels near stations and lack of statutory authority, the RTA invited panelists from peer transit agencies that have joint development programs to provide insights on the value of these projects in their regions.

San Francisco Bay Area Rapid Transit (BART)

Carli Paine, Transit Oriented Development (TOD) Group Manager for Bay Area Rapid Transit (BART) in San Francisco, began by presenting on the agency’s TOD program and the benefits it has provided for the region. BART’s program began in the mid-1990s and has completed 22 projects with another 8 projects in predevelopment. BART owns 250 acres of land across 22 jurisdictions including 27 stations.

Paine explained that BART’s joint development program is favored by many local jurisdictions as it has helped to amplify land-use for more housing, less traffic congestion, and sustainability. The program has brought in significant financial revenue for the region and resulted in the increase of land value through new infrastructure.

Decisions about where and how to invest in future development and who to work with are based on how a project may align with the agency’s policy goals. BART’s goals focus on building vibrant, sustainable, and affordable communities by aligning land use and transportation to support ridership growth, reduce emissions, and expand mobility choices. By fostering neighborhood vitality, encouraging non-auto travel, and capturing value from transit investment, BART aims to strengthen its financial base while ensuring access and opportunity for households of all income levels.

New Jersey Transit

Kristen Mitchell, Director of Transit-Oriented Development at New Jersey Transit, gave panelists an overview NJ TRANSIT’s joint development program and how it is designed to leverage its real estate assets to support ETOD projects. The program aims to improve public transit access, enhance community livability, generate revenue, and stimulate economic growth by collaborating with private developers. The revenue-generating initiative helps fund improvements to transit infrastructure, reduces the financial burden on taxpayers, and promotes sustainable urban development.

The program began in the late 1980s, when NJ TRANSIT recognized the potential value of its land holdings and sought ways to leverage them. The first major projects were initiated in the early 1990s as part of broader efforts to revitalize urban areas and align development with transit access.

NJ TRANSIT enters partnerships with private developers to build mixed-use, transit-oriented developments on NJ TRANSIT-owned land. These developments typically include residential, commercial, retail, and office spaces, and are designed to encourage the use of public transportation. Mitchell stated that NJ TRANSIT’s program is heavily inspired by BART’s and shares many of the same TOD goals. NJ TRANSIT typically leases land and enters into long-term development agreements with the main goal of maximizing both transit access and property value.

The Metropolitan Atlanta Rapid Transit Authority (MARTA)

John Benton, Assistant General Manager of Real Estate/TOD at the Metropolitan Atlanta Rapid Transit Authority (MARTA), presented on the joint development program at MARTA and highlighted a few of their current initiatives. MARTA is fairly new to TOD and has developed seven communities since 2017. The agency’s strategic TOD goals focus on boosting ridership through mixed-use development near transit, generating financial returns to support the system, and fostering a sustainable and thriving future for Metropolitan Atlanta.

Like BART and NJ TRANSIT, MARTA enters into partnerships with developers under guidelines and policies that include upholding benefits to the community such as ensuring housing affordability, access to transit, walkability, and boosting community engagement. Benton emphasized that one unique TOD policy MARTA has incorporated is public art, with 1.5% of project budgets being reserved for community beautification.

RTA’s joint development study: Phase 1

The goal of RTA’s Joint Development Study is to assess the extent to which putting CTA, Metra, and Pace property assets to work for ETOD could be a win/win for Chicago area communities, private developers, and transit agencies by:

• Creating affordable housing near transit thereby reducing housing and transportation costs, the two largest household expenses for lower income households;
• Attracting private investment to create walkable and vibrant ETOD communities;
• Increasing transit ridership thereby increasing system revenues and enhancing regional sustainability; and
• Generating ongoing revenues for transit agency operations.

Phase 1 of the study involves exploring the efficacy of joint development supported by a consultant. This phase of the project will engage a steering committee and involve researching joint development case studies and past joint development efforts in the region. The creation of an interactive inventory map will aid in classifying market potential for each site, and the team will research joint development policy and conduct a developer focus group. After a cost-benefit analysis of joint development and a comparison of joint development to alternative approaches to advancing ETOD, a final Phase I report will be prepared in summer 2026.

Next steps

If joint development seems feasible for the RTA region based on Phase 1 of the study, Phase 2 will commence, and the team will establish a joint development framework for the region by the end of 2026.

See slides from this Transportation Tuesday here.