TransLink looks to property development as revenue source

TransLink is eyeing real estate development as a way to raise money for its south coast B.C. public transportation operations, one that won't bite into the pockets of taxpayers and bus riders.

The move comes as the Surrey, B.C.-based transit authority faces a public outcry over its plan to raise property taxes to make up for an $18 million shortfall in its annual operating budget.

TransLink spokesman Ken Hardie said the authority hasn't bought land just yet.

However, it has formed a new real estate division after the provincial government changed the law allowing TransLink to buy land around proposed rapid transit stations.

"If the public's dollar is going to go in and create that kind of increase in value, the public should also derive a benefit from it,'' said Hardie.

Early estimates suggest that TransLink could make $30 million annually from real estate transactions, money that would be redeployed into the transit system.

That in turn could ease the pressure on TransLink to hike fares and raise property taxes.

Vancouver Coun. Peter Ladner said he supports TransLink's plan, but says it will likely have to compete with cities like Vancouver, which also buy and sell land.

"[The city] would often be interested in land around transit stations because then we know the [value of the] land is probably going up and we can make some money for the property endowment fund,'' he said.