How could Oakland raise billions in revenue? New report suggests removing freeways

"By his calculations, Oakland would benefit more than any of the 142 cities he studied by removing freeways within a three-mile radius of downtown, with a potential gain of $23.9 billion in new development. Patrick Kennedy, an engineering lecturer at Southern Methodist University and longtime highway critic, found that the use of urban land for highways costs cities hundreds of millions of dollars in property taxes every year."

"Let's say 55% of it becomes developable as new private investment that's taxable, and that 45% would be new surface streets, parks, schools, that might be tax-exempt. So the two things that go into making a really high number like Oakland has are high-value real estate and lots of highway land. As you can imagine, with California land prices and costs, you get to a really big number when you have a lot of highway land."

"His approach doesn't account for how freeways degrade the value of surrounding land, due to pollution and road safety concerns, and how their removal might increase that land value - and further boost tax revenue."

Oakland's extensive freeway system, expanded in the 1950s, fails to efficiently facilitate traffic while occupying highly valuable land unsuitable for economic development. A new report analyzing 142 cities found that highways cost municipalities hundreds of millions in lost property taxes annually. Engineering lecturer Patrick Kennedy calculated that Oakland would benefit most from freeway removal within a three-mile downtown radius, potentially generating $23.9 billion in new development value. Kennedy's methodology compared county tax assessment data with recent property development values, assuming 55% of recovered land becomes taxable private development and 45% becomes public infrastructure. His analysis does not account for how freeway removal might increase surrounding land values by reducing pollution and safety concerns, potentially further boosting tax revenue.

Read at The Oaklandside