Remember that whole idea of real estate developers paying for mass transit because it inherently increases the value of their property? Well, a miniature version of it  is happening as we speak. The Washington Post reported that around a quarter of the cost of Washington D.C.’s new streetcar plan — which would run along 37 miles of the city and cost $1.5 billion — will be borne by commercial property owners along the H Street-to-Benning Road Northeast line.

The line, which would require six streetcars and would be the first in the system to be built, would receive an additional $60 to $70 million in public funds to get it completed. A lot is hinging on its performance — money for the remaining 37 miles won’t be requested until/unless that first line is a success.

This won’t be the first time in recent history that D.C. mass transit has been funded by private landowners: They paid about 1/4 of the pricetag for the New York Avenue Metrorail station. And there’s good evidence to suggest that the initial investment is worth property owners’ while: A study by the Brookings Institution, Robert Charles Lesser & Co., and the advocacy group Reconnecting America found that the streetcar would increase the value of the revenue-producing commercial properties along the H Street route by $1.1 billion over 20 years.[SButtonZ button="digg"]

The idea certainly makes sense from a policy standpoint — those who stand to profit substantially in the future should chip in for (or maybe even foot entirely) the initial costs. But given the human propensity for preferring an immediate, and lesser benefit over a delayed, and greater one, it may be hard to get landowners (or commercial developers) behind the idea on a wider scale.

Still, we can hope. So how is the announcement sitting among the D.C. landowners along the route? According to the Post:

Although fewer than half of the more than 40 commercial property owners invited to the presentation arrived, some developers say they see the value despite the expected costs.

Let’s hope they keep sight of that increased future value when the more immediate bill arrives.

Tags: Atlantic's On To Something, Streetcars