LAND VALUE CAPTURE MECHANISMS FOR FINANCING URBAN INFRASTRUCTURE PROJECTS.

LAND VALUE CAPTURE MECHANISMS FOR FINANCING URBAN INFRASTRUCTURE PROJECTS.

Abstract:
Urban infrastructure projects play a crucial role in driving economic growth, enhancing livability, and improving the quality of life in cities. However, financing such projects poses significant challenges for local governments and urban planners. Traditional methods of funding, such as taxation and public borrowing, may not always be sufficient or sustainable. In recent years, land value capture mechanisms have emerged as effective tools for financing urban infrastructure projects while ensuring a fair distribution of costs and benefits.

This abstract provides an overview of land value capture mechanisms and their application in financing urban infrastructure projects. Land value capture refers to the process of recovering a portion of the increase in land values resulting from public investments or changes in land use regulations. These mechanisms aim to capture the economic gains generated by infrastructure projects and leverage them to fund their development and maintenance.

The abstract discusses various land value capture mechanisms commonly employed, including:

Tax Increment Financing (TIF): TIF allows local governments to capture the incremental increase in property tax revenues resulting from infrastructure improvements. These revenues can be used to finance the upfront costs of the projects.

Value Capture Districts/Zones: By designating specific areas as value capture districts or zones, local governments can capture a share of the increased land values arising from infrastructure projects. This can be achieved through mechanisms such as land auctions, development fees, or special assessments.

Transfer of Development Rights (TDR): TDR programs enable the transfer of development rights from one area to another. By allowing landowners to sell or transfer their development rights, local governments can generate revenue and direct development towards areas that benefit from infrastructure investments.

Land Readjustment: Land readjustment involves the voluntary exchange of land parcels among multiple landowners to facilitate infrastructure development. This mechanism enables the capture of land value increments resulting from enhanced land utility and can be accompanied by the provision of infrastructure services.

The abstract also highlights the advantages and challenges associated with implementing land value capture mechanisms. Benefits include a more equitable distribution of the costs and benefits of infrastructure projects, enhanced land-use planning, and increased financial sustainability. However, challenges such as political resistance, complex legal frameworks, and potential market distortions need to be addressed to ensure the successful implementation of these mechanisms.

In conclusion, land value capture mechanisms offer a promising approach to finance urban infrastructure projects. By capturing a portion of the increased land values, these mechanisms provide an alternative and sustainable funding source. Further research and case studies are essential to explore the effectiveness, efficiency, and scalability of these mechanisms in different urban contexts.

LAND VALUE CAPTURE MECHANISMS FOR FINANCING URBAN INFRASTRUCTURE PROJECTS. GET MORE PRODUCTION AND OPERATION MANAGEMENT PROJECT TOPICS AND MATERIALS

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