Development near Metro stations rising
Incentives offered to home buyers


nlovelady@bnd.com

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For years, mass transit has been as common in the lives of big-city commuters as the daily newspaper.

This need for easy access to mass transit has translated into housing booms and property value increases near public transportation across the country.

In the metro-east and St. Louis, businesses and homeowners are gradually recognizing the benefits of home ownership near mass transit.

"In places where they have good public transportation, people have discovered the huge benefits," said Fannie Mae spokesman Carolyn Ozcan.

Those benefits include decreased vehicle expenses and a reduction in air pollution from automobiles, Ozcan added.

To stimulate home ownership near mass transit in the metro-east and St. Louis, Fannie Mae has joined Metro and several area banks in offering incentives for home buyers to buy near public transportation through a program called the Smart Commute Initiative.

The program gives home buyers who move within a half-mile of a MetroLink station or a quarter-mile of MetroBus routes a $200 to $250 increase in the buyer's qualifying monthly income for a home mortgage. The Smart Commute mortgages also can be combined with other mortgages, including those with low down-payment options.

Metro also will provide the new homeowner with a 10-ride ticket booklet for six months.

"This is one way we are encouraging ridership by introducing new homeowners to Metro while at the same time, it also supports economic development," Metro spokesman Adella Jones said.

According to a transportation study released by Reconnecting America, in cities such as New York and Chicago, where mass transit has extensive service, the percentage of households near public transportation is large compared to the St. Louis area.

The study shows that in the New York metropolitan area, 31 percent of the households are near public transportation, and in Chicago 24 percent. In the St. Louis area, 17,236 households of 1,012,413 live near mass transit, less than 2 percent.

Ozcan hopes the incentives can combat the region's urban sprawl by pulling more people out of the suburbs and into the cities.

"That is certainly the case in the St. Louis area, where you have a large suburban area," Ozcan said. "This will help the economy by bringing more density in one area so people don't have to travel as far."

In the metro-east, development is taking place near MetroLink stations. Dozens of homes have been built or are under construction in the Carrington Place, Turtle Creek and Sullivan Farms subdivisions near the Memorial MetroLink station.

Phil Johnson, president of Kenneth Johnson Agency, a commercial real estate service, said the property around MetroLink stations has doubled in a short amount of time.

"A piece of land that would have sold for $15,000 eight years ago is now selling for $30,000 and $35,000," Johnson said.

Johnson does not believe, however, that MetroLink is the leading factor for the increase in property value. He attributes the increase in value to availability of commercial land use in those areas.

Merrill Ottwein, a broker with Home Buyers Relocation Service, said MetroLink stations have been a huge decision maker for some home buyers.

His company, which specializes in relocating individuals, has seen about 30 people who have relocated from various parts of the country such as Chicago and New York.

"These people come from markets like Chicago where public transportation is a necessity, and they requested it when they move here," Ottwein said.

Over the next 20 years, the Reconnecting America study shows the number of homes near public transportation is expected to boom nationwide. The survey suggests that by 2025, the number of houses near public transportation is expected to increase to 34,132 for the St. Louis area.

Belleville has sought to take advantage of the nationwide trend with a transit village of its own.

The city is in the final stages of planning for a 65-acre development near the Scheel Street MetroLink station.

Ward 7 Alderman Jim Green said the unspecified amount of homes will be owner-occupied and will cater to "married professionals" who travel to and from St. Louis to work.

"It's going to be great when it's done," Green said. "We're making sure it keeps with the integrity of the neighborhood."

Eugene Sawalich of Swansea loves his new home in the Carrington subdivision off Frank Scott Parkway.

If Sawalich wanted to, he could sit on his deck all day with his two dogs and watch the birds play peacefully in the pond behind his home. Or he could walk a quarter-mile to the MetroLink and take the ride to a ballgame.

"The MetroLink was not the primary reason we moved here, but it was a part of it," Sawalich said. "I do enjoy having the MetroLink this close to me. It's really convenient."