The Wolverhampton Express and Star have claimed that a report by Centro outlines how they plan to get the extra money needed for extensions to the Midland Metro system. It includes plans to increase business rates and charge extra for new houses to be built near the lines.
£250 million is needed for the proposed extensions and it is suggested in the report that as the value of houses close to the tram lines are likely to rise developers would have to pay more money, thus putting the house prices up further. A figure of £2,500 is suggested although no details are given as to how this would be collected.
It is also planned to collect extra money from business rates – although businesses in the West Midlands have protested saying they can’t afford it. Further details of how the lines could be funded are:
* Merry Hill Shopping Centre owners – Westfield - £36million
* Centro - £49.5million
* Developers - £90 million
* Advantage West Midlands (regional development agency) - £50 million
* Owners of 10,700 new properties to be built by 2026 - £10 million
This would still give a shortfall of the £250 million that is needed for the extensions and is bound to prove unpopular with locals, particularly those purchasing the new properties. Centro are having to go down this road after they were refused the chance to get any TIF money as they were unwilling to introduce road charging.
Source: Wolverhampton Express and Star