John is correct that in the heyday of streetcars and interurbans new lines promoted development. In those days, the systems were privately owned and often the railway companies owned property to where the tracks were extended. The companies made a profit on both the transit service and selling the land for development.

Things have changed a lot in the last 100 years. Instead of the private sector taking the risk for development, today it is done with taxpayer funds. The linchpin to developments in the South Waterfront, the Pearl District and along both Max corridors and the street car line are do to the tax breaks, tax abatements and publicly subsidized land. The tram only plays a roll with the new (property tax free) OHSU facilitates Taxpayers not only subsidize both the construction and operations for people movers such as the tram, Max and the trolley, but also heavily subsidize the majority of development that occurs supposedly due to their existence. Politicians way too often leave out the public subsidy to development when they attempt to claim it is the infrastructure that supports the development. It is public tax dollars that support and subsidize the development, period.