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Types of development

Read about how councils and regional governments collaborate with developers in Transport Orientated Development (TOD)
Left of frame double story house construction with bricks and pointed roof in background, centre frame two people looking at laptop and plans in foreground
© RMIT Europe and EIT Urban Mobility

Transport Orientated Development (TOD) has the potential to create more density and to allow for greater opportunities for housing and public amenities such as parks and community hubs.

Increasing density

To increase density, councils and regional governments offer incentives to developers which in turn provide opportunities for councils and the future community of that TOD. Finding the right balance for incentives and outcomes is not an easy task, and the land use planning and development system relies on planning tools and instruments to achieve these outcomes.

Some of the planning instruments used by councils and governments to develop and grow new and renew precincts include:

  • inclusive zoning
  • development contributions
  • transfer development rights.

Inclusionary zoning

Image by Gerain0812 via Envato Elements.

These are planning interventions where councils and governments mandate or establish incentives for a proportion of a residential development to include social or affordable housing dwellings. This allows essential workers on lower incomes to remain close to their workplace in areas that may otherwise be too expensive to reside.

Development contributions

Development contributions allow for financial contribution towards new and upgraded amenities for the people who will live and work in the TOD area.

Transferable development rights (TDRs)

Transferable development rights (TDRs) can be used as a method to create greater density in a TOD precinct. TDR is a method whereby developers can:

  • purchase development rights of certain parcels within a designated ‘sending district’
  • transfer the rights to another ‘receiving district’ to increase the density of their new development.
Image by VidEst via Envato Elements.

Through agreements between councils and developers, councils may allow developers an increase in density and in return developers must pay for the installation of roads, infrastructure, waste removal, and other infrastructure amenity such as childcare centres, parks, community hubs etc.

Notwithstanding such high-level planning and development by developers and councils, there must be interest from families to move to these new communities. Hence incentives such as affordable housing, schools, parks etc are necessary for community building.

© RMIT Europe and EIT Urban Mobility
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