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Imagine 2060

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The global series Imagine 2060: Delivering Tomorrow’s Cities Together was launched on 30 March 2017, with the inaugural symposium in Manila, Philippines marking the start of a 3-year international collaborative series led by AECOM and Asia Society. See www.aecom.com/imagine2060 for more information.

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Imagine 2060

  1. 1. IMAGINING MANILA IN 2060 JEREMY R. BARNS Director National Museum of the Philippines March 30, 2017
  2. 2. [N]ature in Luzon is as immutable as she is everywhere and as rich as she is nowhere else. How lovely is this union of the northern and southern skies! It is like the meeting and embraces of two beautiful women. The Southern Cross and the Great Bear, Orion and Canopus seem so close to one another... How singular is the play of colors in the evening light of the sky - jasper, violet, azure, and at last, strange, dark and immutable tints that are quite inimitable by man. Where would he get the color for the piercingly white beams of the local stars? How should one paint the swooning of the evening sky, relaxed after its abandonment by the sun, or depict the warmth and gentleness of the moonlit night? Marvelous too, are the blue bay and the green coast, the far mountains and all the palms, bananas, cedars and bamboos, the black, red, and brown wood, the rivulets, islands, and country cottages - they are all so bright, so bewitching, so fantastically lovely! Ivan Goncharov (1854)
  3. 3. “Manila”, then and now, among the greatest capitals and cosmopolitan centers of the world, the primate city of the Philippines and a foremost metropolis... “Manila” the world’s first global city, the great entrepôt among all the continents... “Manila” as the center of the Filipino national consciousness and the Filipino universe; the gateway to the Philippines, and from or through the Philippines, to the rest of Asia... “Manila” the beautiful: the bay and its beaches, the rivers and canals, the lake and its mountains... “Manila” the center of history and culture: the showcase of a nation from its earliest origins and on towards its future progress... “Manila” and its future: retrieving a legacy enjoyed by past generations and now nearly lost, yet still in our hopes and dreams...
  4. 4. The Kuala Lumpur TRANSFORMATION Story Zainal Amanshah, CEO InvestKL
  5. 5. Copyright InvestKL 2017 EXTERNAL VALIDATION By Corporate & Academic Bodies
  6. 6. Copyright InvestKL 2017 Malaysia’s New Economic Model - The Objective Making Us A Rich Country, For Everyone & For A Long Time • Only 10% of high income countries take this road • High income but sustainable fiscal position (relatively low Govt debt and fiscal surplus/balance) • Inclusive development (narrow income disparity) Taking the road less travelled
  7. 7. Copyright InvestKL 2017 The Process: Malaysia used a new way of working (8-Step BFR* Methodology) BFR* Big Fast Results Planning / Thinking (10%) • Strategies, Key Activities & Responsibilities • Organizing • Communication & Engagement Implementation / Doing (90%) • Monitoring • Recursive Problem Solving • Assessment / Validation • Reporting We conducted 12 labs with 500 participants over 8 weeks
  8. 8. Copyright InvestKL 2017 The Outcomes: 12 National Key Economic Areas – Being Focused and Competitive 12 National Key Economic Areas (NKEAs) Entry Point Projects 131 3.3 mil (2011-2020) USD 250 bil (2020) EPPs GNI Jobs US$ 406 bil (2011-2020) New Investments
  9. 9. Copyright InvestKL 2017 GREATER KUALA LUMPUR (GKL)/KLANG VALLEY (KV) - FAST FACTS 6.78 million Population 2,900 km2 Area 10 Local Authorities 33% Fresh Graduates Move to GKL/KV Upon Graduation Commercial and financial capital 30% GDP Contribution Main economic engine hub Metro Manila quick facts Area: 619.5 km2 Composed of: 16 Cities + 1 municipality Population: 12.9 million (NCR census 2015)
  10. 10. Copyright InvestKL 2017 Greater KL / Klang Valley National Key Economic Areas DRIVERS FOR GROWTH BUSINESS & HUMAN CAPITAL 1. Multinationals Attraction/FDI (InvestKL) 2. Talent Attraction (TalentCorp) CONNECTIVITY 3. High Speed Rail (350km,90mins) 4. Mass Rapid Transit / Light Rail Transit (~250km) LIVEABILITY & CULTURAL EXPERIENCE 5. River of Life (recreation, F&B, commercial development) 6. Greener KL (100,000 large-coverage trees) 7. Iconic Places (~10km heritage trails over 500 heritage buildings) 8. Pedestrian Network (renovated 48.87 km of walkways) FOCUS/ PROJECT GKL/KV ENHANCED SERVICES 9. Solid Waste Management (Reduce, Reuse, Recycle (3R) programme, increase waste treatment capacity)
  11. 11. Copyright InvestKL 2017 EPP1: Invest KL was established to attract 100 Global MNCs to make Kuala Lumpur as their regional hub YTD 2016 Achievement 64 MNCs Secured todate RM8.8 bil Approved & Committed Investment RM2.9 bil Investment realised 9,011 Jobs creation
  12. 12. Copyright InvestKL 2017 EPP 4: Mass Rapid Transit (MRT) to boost connectivity in KL Klang Valley Integrated Rail System MRT • MRT 1: 51 KM Completed • MRT 2: 52 KM (2022) • MRT 3: Circle Line Orbital - planning stage • Investment : US$11.5 billion (MRT 1 and 2) LRT • Kelana Jaya Line 46.4 KM • Ampang Line 45.1 KM • LRT Line Extention estimated at US$ 500 million Monorail • Total Length 8.6 KM Ridership (LRT + Monorail) : 170 million pax per annual BRT (Buss Rapid Transit) • Total length: 5.4 KM
  13. 13. Copyright InvestKL 2017 51 km Length 400,000 / day Passengers 31 Total Stations US$ 6.56bil* Cost We Established MRT Corp to Spearhead the Implementation of MRT - Line 1 completed in 5.5 years *US$1.0 – RM3.2 (effective exchange rate during project announcement
  14. 14. Copyright InvestKL 2017 EPP3: Kuala Lumpur – Singapore High Speed Rail (HSR) Link
  15. 15. Copyright InvestKL 2017 High Speed Rail – Impact to Economy
  16. 16. Copyright InvestKL 2017 EPP5: River of Life
  17. 17. Copyright InvestKL 2017 River of Life: River Cleaning – target Class “IIb” water quality
  18. 18. Copyright InvestKL 2017 River of Life: River beautification – in progress
  19. 19. Copyright InvestKL 2017 River of Life: River Cleaning – public education
  20. 20. Copyright InvestKL 2017 Highlights of other EPPs
  21. 21. Copyright InvestKL 2017 Highlights of other EPPs
  22. 22. Copyright InvestKL 2017 Tracking our progress – Making the Results Public
  23. 23. Copyright InvestKL 2017 Source: Ministry of Finance, Malaysia 6.7% 5.6% 4.8% 4.5% 3.9% 3.5% 3.2% 3.1% 2009 2010 2011 2012 2013 2014 2015 2020 TARGET 0% 2016 We have a law that imposes self discipline - a Govt debt ceiling of 55% of GDP Govt debt 54.5% of GDP (2015) and 52.7% of GDP (2016) The Financials: Fiscal deficit reduced from 6.7% (2009) to 3.1% (2016) of GDP
  24. 24. Copyright InvestKL 2017 ETP Launch We promised to increase private investment, we delivered 2x growth
  25. 25. Copyright InvestKL 2017 Private Sector Dominates Investment Ratio Source: Department of Statistics, GDP at constant prices
  26. 26. Copyright InvestKL 2017 Summary: 3 Transformational Leadership Qualities #1 Transformational Leaders who pursue the Game Of the Impossible #2 Transformational Leaders who are ruthless about prioritisation. They corral their people to focus on priorities #3 Transformational Leaders who intervene through “discipline of action” Impossible Challenge – “secure USD300 billion private investment in 8 weeks” Do it relentlessly Monitor it constantly Solve problems recursively
  27. 27. Copyright InvestKL 2017 BRF Institute Applying Malaysia’s Transformation Model to the World
  28. 28. Copyright InvestKL 2017 Thank You
  29. 29. CONTACT US 26 InvestKL Corporation 16th Floor, Menara SSM@Sentral No. 7, Jalan Stesen Sentral 5 Kuala Lumpur Sentral 50623 Kuala Lumpur Malaysia Tel : +603 2260 2270 Fax : +603 2260 2292 Email : info@investkl.gov.my www.investkl.gov.my
  30. 30. The Bays: Advancing Sydney’s global competitiveness through waterfront renewal Professor David Pitchford CBE LVO | Chief Executive, UrbanGrowth NSW
  31. 31. To drive an internationally competitive economy, through the creation of great destinations that will transform Sydney, New South Wales and Australia. A Bold Ambition
  32. 32. We Are Our Ambition Our Vision Our Role UrbanGrowth NSW the Government’s urban transformation agency. is to create a globally competitive Sydney and NSW. is to ‘transform city living’ by creating world class urban areas that are vibrant, connected, competitive and resilient places to live and work. is to facilitate the economic development of complex urban transformation projects which are anchored with public land and aligned with critical infrastructure.
  33. 33. A growing population Population projections high and low series Metropolitan Sydney Numberofpersons 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2011 2016 2021 2026 2031 2036 2050
  34. 34. Population vs area 12,368 km2 4.4 million 5,900 km2 5.6 million 1,572km2 8.6 million 999 km2 1.2 million area population London, United Kingdom Sydney, Australia Toronto, Canada Dallas, United States
  35. 35. UrbanGrowth NSW: City Transformation Life Cycle™ Thinking cities Funding Cities Building Cities Living Cities UrbanGrowth NSW: Transforming City Living Aspiration/needs/ desires for Sydney 2050 Innovative funding solutions sufficient to complete project. Not just ‘starting it’ Not just buildings but the creation of an entire Precinct Have we got it right and what do we need to reinvent?
  36. 36. How we focus our effort Assessing Australian Industry – McKinsey Australia Global disruptive opportunities Skills and capabilities Comparative advantages High % of skilled migration Ageing global population High level of tertiary educated population Rapidly growing middle class Digital disruption Health Services/ Niche manufacturing Tourism Agriculture Large financial hub Rapid globalisation Strong tertiary education institutions Large % of workforce employed in ‘Interaction’ jobs Informational education Mining and extraction The sweet spot
  37. 37. The United Nations reports that by 2050, the proportion of the world’s population living in cities will increase from 54% to 66%. A global phenomenon
  38. 38. Roosevelt Island, New York Regeneration through education Concept developed using artist impression of Cornell Tech, Roosevelt Island
  39. 39. Battersea Power Station, London Creating a market of its own Indicative artist’s impression | Sourced from public website
  40. 40. Waterfront Toronto Maximising economic benefit Indicative artist’s impression | Courtesy of Waterfront Toronto
  41. 41. 1 2 Klyde Warren Park Dallas, Texas A green space ‘out of thin air’ a 5-acre deck park recessed over an eight lane freeway
  42. 42. Euroméditerranée, Marseilles Transforming the heart of a city
  43. 43. Canary Wharf, London Making an area sing with life
  44. 44. King’s Cross, London Reinvigorating the past
  45. 45. Indicative artist’s impression | Sourced from public website Hudson Yards, New York Conjuring prime real estate out of thin air
  46. 46. Markthal Rotterdam A sustainable combination of food, leisure & living
  47. 47. Markthal Rotterdam A sustainable combination of food, leisure & living
  48. 48. Barcelona, Spain From dull industrial city to a dynamic meeting place
  49. 49. Marina Bay, Singapore Singapore’s signature city skyline
  50. 50. A once-in-a-generation opportunity to deliver innovation and attract the jobs of the future for Sydney, NSW and Australia. Creating an internationally competitive, resilient and prosperous global city to live, work and visit.
  51. 51. The Bay Precinct, Sydney Transformation of the inner harbour
  52. 52. The Transformation Plan
  53. 53. White Bay Power Station Rozelle Rail Yards Glebe Island Rozelle Bays and Bays Waterways Bays Waterfront Promenade Bays Market District Wentworth Park White Bay Including Bay Cruise Terminal Eight destinations
  54. 54. Statement of Principles
  55. 55. Objectives The Precinct Hub of export-oriented knowledge- intensive jobs World-class mass and active transit solutions Integrated utilities solutions that enable advanced energy generation and technologies Enduring, socially inclusive and great places Building design excellence and quality urban design Integrated planning within a land and water context Housing choices, including affordable housing options Ecological and marine water quality improvements Celebrate heritage and culture by creating new experiences World leading sustainability and resilience
  56. 56. 23 Destination: The Bays Market District
  57. 57. 2 9 Destination: The Bays Market District Indicative artist’s impression | Sourced from public website
  58. 58. Destination: Wentworth Park
  59. 59. Destination: White Bay Power Station
  60. 60. Destination: White Bay Power Station Indicative artist’s impression | Sourced from public website
  61. 61. Destination: Glebe Island
  62. 62. Destination: Glebe Island Indicative artist’s impression | Sourced from public website
  63. 63. Innovation at The Bays Precinct
  64. 64. Innovation in Sydney Central innovation cluster
  65. 65. UrbanGrowth NSW together with the university partners have the opportunity to drive productivity, innovation, and thought-leadership across the development of urban policy and the delivery of urban transformation projects. University partnership
  66. 66. Universities Framework Agreement
  67. 67. Governance: UrbanGrowth NSW & Universities Collaborative Research Partnership Funding Cities CoP Building Cities CoP Universities Advisory Committee University Roundtable UrbanGrowth NSW Collaborative Learning Team Pipeline of potential research projects (incubation and acceleration); shared learning events; conferences; exhibitions; design studios; data visualisation, publications; awareness; connection to schools (K-12) and vocational educational partners (TAFE) Thinking Cities CoP Living Cities CoP
  68. 68. Our University Partners
  69. 69. Collaboration with universities The Bays Precinct
  70. 70. UrbanGrowth NSW contacts facebook.com/urbangrowthnsw/ twitter.com/urbangrowthnsw linkedin.com/company/urbangrowth-nsw youtube.com/user/urbangrowthnsw enquiry@urbangrowth.nsw.gov.au urbangrowth.nsw.gov.au +61 2 9841 8600 • Sydney CBD: Level 12, 19 Martin Place, Sydney NSW 2000 • Parramatta: Level 14, 60 Station St, Parramatta NSW 2150 • Newcastle: Level 4, 251 Wharf Rd, Newcastle NSW 2300
  71. 71. Imagine Manila:At the Water’s Edge Tools to Consider in the Transformation of Manila Imagine 2060: Delivering Tomorrow’s Cities Together
  72. 72. GLOBAL CITIES GLOBALIZATION 1970 @ 3.7B 2010 @ 6.9B 2050 @ 9.7B
  73. 73. GLOBAL CITIES CLIMATE CHANGE Source:ParagKhanna/ Connectography
  74. 74. GLOBAL CITIES FOUR NEW ECONOMIES I NEED YOU HAVE EFFICIENCY TRUST SHARING CIRCULAR EXPERIENCE PLATFORM PRODUCTION DISTRIBUTION MARKETING CONSUMER STAGE EXPERIENCES DELIVER SERVICES MAKE GOODS EXTRACT COMMODITIES
  75. 75. GLOBAL CITIES TECHNOLOGY 1.0 2.0 3.0 4.0 1784 19691870 NOW Based on mechanical production equipment driven by water and steam power Based on mass production enabled by the division of labor and the use of electrical energy Based on the use of electronics and IT to further automate production Based on the use of cyber- physical systems 4TH INDUSTRIAL REVOLUTION
  76. 76. NEW WORLD CITIES TYPES OF GLOBALCITIES 1 2 3 ESTABLISHED London, New York, Los Angeles Hong Kong, SIngapore EMERGING Kuala Lumpur, Manila, Sao Paulo, Mumbai NEW Tel Aviv, Cape Town, Auckland, Brisbane, Iloilo
  77. 77. NEW WORLD CITIES 7 NEW FORMATS IN NEW WORLD CITIES 1.0 2.0 3.0 4.0 5.0 6.0 7.0 INNOVATION SPACE MICRO HOUSING SUPER MIXED USE TRANSPORT HUBS SCHOOLS AS ANCHORS INTENSIFIED PUBLIC SPACE NEW GENERATION OF PPPs
  78. 78. NEW WORLD CITIES TRANSFORMING CITIES WITH INNOVATION Value Creation – Harnessing Wealth Creation from Economic Development Triple Bottom Line – Objective and Transparent Framework for Vision Setting, Prioritization and Implementation
  79. 79. Source: AECOM Introduction Value Capture What is value capture? • Recognises value created by public infrastructure • Captures incremental growth • It is not a new tax • Supports smart growth
  80. 80. Introduction Value Capture “Recent research from over 120 case studies from around the world show that the average increase in land value resulting from public transport projects is 12%, but can reach as high as 150% of pre-announcement land values”. - Joe Langley, Sydney-based AECOM Infrastructure Advisory Director
  81. 81. Case Studies $30B26% funding by 25 – 30 year commitment from BRS Value Capture Cross Rail, UK • Captures wider economic benefits • Long-term funding from BRS • Focus on city-shaping and total customer experience 1.5Mpeople within 45 min of key employment, leisure and business districts Source: Crossrail, Distribution of Benefits presentation
  82. 82. Case Studies 30Active train tracks Value Capture Hudson Yards, NYC Redevelopment of 11 ha mixed use project over 30 active train tracks Phase 1: 2015-2018 1,180,000 m2 • 560,000 m2 office • 70,000 m2 retail • 5,000 dwellings • 5.7 ha park $20Btotal construction cost 11haMixed use project
  83. 83. Case Studies $7BCost of public elements over 20 years Value Capture Fastracks and Denver Union Station Redevelopment Key Public Elements – US $7 Billion over 20 years • US$500M PPP Union Station Precinct Redevelopment • 197km commuter and light rail network • 29km Bus Rapid Transit (BRT) • 21,000 commuter car parking spaces Key Private Elements • Office – 58,000m2 • Retail – 11,565m2 • Residential – 1,930 dwellings $135MValue Capture revenue pa, over 30 years
  84. 84. Case Studies Value Capture Transbay Transit Center San Francisco $4.5 billion, five-level transit center Links local, regional and interstate transit including future HSR Transit Value Premiums • Reduced traffic congestion • Extensive and interconnect network • Links to regional job centres • Improved intermodal connections
  85. 85. Decision Making Frameworks for smart infrastructure Value Capture Primary Objectives Smart infrastructure investment creates value that can be captured to contribute to project funding. Value capture methods: • Are not a new tax if well designed • Integrate land use and transport planning • Are based on the “beneficiary pays” principle International examples provide guidance for a more equitable and sustainable Australian funding model. • Long term transport plans have long term funding arrangements • Project appraisals include wider economic benefits in project appraisals • All levels of government and the private sector must contribute
  86. 86. Decision Making Frameworks for smart infrastructure Triple Bottom Line Approach : Balancing the Value proposition Engineering Performance Social Benefit Environmental Benefit Financial Cost Natural Resources Community development Water quality Air quality Economic development / employment Traditional Emphasis
  87. 87. Case Studies San Francisco Public Utilities Commission: Storm Sewer Improvement Program, San Francisco Balance of green and grey infrastructure approaches and innovative design. $3.5B USD Cost of public elements over 20 years
  88. 88. Decision Making Frameworks for smart infrastructure Resiliency tools, Triple Bottom Line Approach
  89. 89. Case Studies San Francisco Public Utilities Commission: Storm Sewer Improvement Program Soundness of Approach - Proposed Process: Measurement of Co-benefits Triple Bottom Line: Equity, Economy and Environment Health and Well Being HW1 Food Exposure HW2 Heat Island HW3 Access to Open Space / Recreation HW4 Community Stablization HW5 Local Employment Opportunities Economy and Society ES1 Community Cohesion ES2 Safe Routes ES3 Local Private Investment ES4 Leverage City Resources ES5 Cost Effectiveness ES6 Long termSustainability Infrastructure and Environment IE1 Resource Recovery IE2 WaterQuality IE3 Resilient and Responsive to Natural Disasters IE4 Investment in Habitat Leadership and Strategy LS1 Community Preparedness LS2 Community Education $ LS1 LS2 LS3 HW1 HW2 HW3 HW4 HW5 ES1 ES2 ES3 ES4 ES5 ES6 IE1 IE2 IE3 IE4 $ Significantly positive Positive Neutral Negative Significantly negative Unknown / TBD / NA
  90. 90. Case Studies Reimagining South West Brooklyn, NYC Red Hook
  91. 91. NEW JERSEY GOVERNORS ISLAND BROOKLYN 132 ACRES RED HOOK SUNSET PARK Case Studies Reimagining South West Brooklyn, NYC
  92. 92. Case Studies Reimagining South West Brooklyn, NYC NYC has a housing crisis
  93. 93. Case Studies Reimagining South West Brooklyn, NYC The majority of NYC’s residents are rent burdened.
  94. 94. Case Studies Reimagining South West Brooklyn, NYC NYC needs more jobs
  95. 95. Case Studies Reimagining South West Brooklyn, NYC Flooding
  96. 96. Case Studies Reimagining South West Brooklyn, NYC One NYC Principles
  97. 97. Case Studies Reimagining South West Brooklyn, NYC New subway extension to Red Hook 20000 4000 N 9 NewSubway BQX Subway Line Planned Ferry Stop Ferry Route 9 F D R N G
  98. 98. $
  99. 99. Case Studies Reimagining South West Brooklyn, NYC Alternatives to a wall
  100. 100. Case Studies Reimagining South West Brooklyn, NYC Protecting the edge
  101. 101. $
  102. 102. Case Studies Reimagining South West Brooklyn, NYC Protecting the edge GROWTHGROWTH F1 Cost to Revenue Gap F2 New Tax Revenue S2 Employment S7 Housing Growth GROWTHRESILIENCY E4 Green Coastal Protection S1 Community Resiliency GROWTHEQUITY S3 Parks Per Capita S4 Pedestrian & Bicycle Environment S5 Accessible Waterfront S6 Access to Jobs by Transit S8 Affordable Housing Growth GROWTHSUSTAINABILITY E1 GHG Emissions Per Capita E2 Water Quality E3 Connected Habitat E5 Tree Coverage
  103. 103. Case Studies Reimagining South West Brooklyn, NYC Red Hook today
  104. 104. Case Studies Reimagining South West Brooklyn, NYC 25Mft2
  105. 105. Case Studies Reimagining South West Brooklyn, NYC 35Mft2
  106. 106. Case Studies Reimagining South West Brooklyn, NYC 45Mft2
  107. 107. Reimagining South West Brooklyn, NYC Comparing outcomes
  108. 108. Decision Making Frameworks for smart infrastructure Triple Bottom Line Primary Objectives 1. To inform and support the analytical process for developing alternatives by considering social and environmental components in the process alongside performance and economic considerations 2. To provide decision- making support for project leaders; and 3. To increase project selection transparency and facilitate a reporting- out of expected project benefits. 4. Creates a comparative database of projects.
  109. 109. BRILLIANT MANILA CITY SUCCESS CHECKLIST BRILLIANT MANILA=} Creating a place where; 1. People live 2. Business invests 3. Nature thrives 4. Culture celebrates 5. Visitors enjoy Smart Resilient Connected
  110. 110. Finding ways to make smart infrastructure a reality StephenEngblom Senior Vice President Global Director,Cities stephen.engblom@aecom.com Twitter: @stephengblom Manila, March 30, 2017
  111. 111. NEW WORLD CITIES RISE OF THE MEGA REGIONS
  112. 112. Introduction Value Capture
  113. 113. Introduction Value Capture Model outputs • Graph shows AECOM “Harbinger” funding model results from light rail extension project in Australia • Business as usual revenues (dark bars) compared to new revenues with light rail (orange bars) from four different revenue sources • Incremental development shown as commercial floor area and new residential dwellings over 25 years.
  114. 114. Introduction Value Capture Increasing funding without increasing tax rates Property value impacts by infrastructure type Overall Commuter rail Metro rail Light rail Bus Rapid Transit Average 12% 17% 3% 17% 2% Median 5% 5% 5% 10% 3% Max 150% 91% 27% 150% 10% Min -21% -7% -21% -17% -11% Count 61 10 12 29 10 Source: Baker and Nunns 2015, Access, amenity, and agglomeration: What can we expect from rapid transit projects? 122case studies of transport projects and their impacts on property value
  115. 115. Introduction Value Capture Common revenue streams Retail sales taxes (GST) Transfer (stamp) duty* Payroll taxes Property tax Council rates Developer contributions Land tax* Special rates Sale of incentive floor space* Betterment tax Sale / lease of development sites Parking levies Sale / lease of air rights Capital gains taxes Property development Voluntary planning agreements (VPA) Hotel taxes There are two primary sources of incremental revenue infrastructure projects • Tax revenue increases to Federal, state and local taxing authorities • Property value uplift *Highlighted sources: • Much recent debate concerning benefits of replacing stamp duty with broad base land tax • Sale of incentive floor space in being used now by communities in NSW to fund specific local projects Value capture is a funding method, but not all funding methods involve VC . VC programs establish a nexus between property value uplift and new tax revenues. They leverage these benefits by providing the appropriate mixture and scale of land uses to achieve the benefits of agglomeration.
  116. 116. Introduction Value Capture Global examples Project Capital Cost Value Capture Contribution to Capital $ Value Capture Methods Used / Considered Key Success Factors CrossRail, London (under construction) £15.9B (2010) £4.1B  Business Rate Supplement (2% of commercial properties over £55,000 rent/pa)  Progressive rate threshold  Minimal economic distortions  Ease of implementation  Strong public support Hudson Yards, New York City (in progress) US$3.01B (2013) US$205M (to 2013)  Payments in Lieu of Taxes (PILOTs)  Transferable Development Rights (TDRs)  District Improvement Bonuses (DIBs)  Value capture enabled the project to go ahead without transit agency funding  TDRs preserved open green space amongst developments Denver Union Station, Colorado USA (completed in 2015) US$446M US$135M  30 year Tax Increment Financing district  Resale of land improved by the redevelopment agency  Integrated land use and transport planning  Long term funding commitment + long term financing  Strong Public consultation and support TransBay Transit Center, San Francisco US$4.5B (2013) In excess of US$600M  Tax Increment Financing  Public property redevelopment and sale  Improved transport efficiency and decreased congestion  Access to jobs  Public and private property value enhancement  Regional economic benefits HSR Central Station, Sydney (proposed) $114B (entire network) $2.9B* (Central Station only)  Stamp Duty  Land Tax  Special Rates  Government Land and Air Sale Rights  Bonus Floor Space  Value capture methods in conjunction with comprehensive urban development plans  Progressive action on behalf of the NSW Government
  117. 117. Introduction Value Capture Denver Union Station Development Funding • Federal & state grants - $109M • Property sales - $37M • Federal loans - $300M Repayment • Loan repayments: $165M, 15yrs @ 5.6% from fare box • Value Capture revenue – $135M/pa, 30 years • City of Denver payment guarantee – up to $8M/year $135MValue Capture revenue pa, over 30 years

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