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."