A developer proposed a large real estate project that would require infrastructure upgrades. Through negotiated exactions, the developer agreed to contribute land and improvements in-kind in exchange for exemptions from density and construction regulations. This allowed the project to go forward while also providing infrastructure benefits. However, exactions negotiated on a case-by-case basis can lack predictability and fail to generate sufficient public benefits beyond the individual project. Proper planning and regulations are needed to ensure exactions result in wider community improvements to justify deviations from standard rules.
The document discusses land value capture (LVC) as a mechanism for financing infrastructure investments. LVC involves recouping increases in land value generated by public infrastructure upgrades. It can unlock additional funding sources and promote cost-sharing between public and private stakeholders. Examples are provided of LVC being used to regenerate urban waterfronts in Ahmedabad, India and Rio de Janeiro, Brazil by selling reclaimed land and development rights. A variety of LVC tools are also summarized, including special assessments, tax increment financing, sale of development rights, and land pooling. The document argues that LVC can finance improvements across sectors like transportation, water, and slum upgrading.
9. Addis Ababa: a case study on land leasingACCUCT
This document summarizes a presentation on urban infrastructure in Addis Ababa, Ethiopia. It discusses Addis Ababa's population growth, land ownership system, land leasing program, housing challenges, and urban planning projects. The land leasing program generates revenue for the city but supply has not kept up with demand, leading to high prices. While the program encourages development, there are arguments that not all land allocated at low prices reaches targeted groups. Overall, the rapid growth of Addis Ababa through urban planning programs demonstrates Ethiopia's economic development, but continuing challenges around land and housing supply remain.
This document discusses the concept of land value capture, where governments can capture some of the increased land value that results from public investments and policy changes. It provides examples of how governments have implemented land value capture through various policies like development impact fees, commercial linkage fees, and inclusionary housing. However, these policies are often controversial and face opposition from developers. The document argues that applying these policies at the time of rezonings or land use changes, through a negotiated process, could help address this opposition by tying the value capture more directly to the actions creating the increased land values. It uses the example of San Francisco's Eastern Neighborhoods Plan to illustrate how a community organizing effort led to a sophisticated system of value capture
Launching Your Project Using Sophisticated Real Estate Development Strategieslerchearly
Get insights on essential tools to getting your project off the ground. Lerch Early's real estate attorneys will present four sessions focusing on Structuring Mixed-Use Projects, Tax Credit Financing 101 for Development Projects, Making Your Ground Lease Financeable, and Tax Deferred Exchanges Using Condemnation Proceeds.
Resettlement is involuntary when it occurs without the informed consent of the displaced persons or if they give their consent without having the power to refuse resettlement. This presentation gives an overview on how resettlement can be executed in Tanzania by following World Bank Operational Policy 4.12 and Tanzania legal framework.
This document outlines the fundamental components of a Resettlement Action Plan (RAP), including its objectives, compensation and resettlement strategies, and monitoring. The key objectives of a RAP are to identify and improve or restore the livelihoods of those affected by involuntary resettlement due to a development project. It must also consider alternatives to minimize displacement. A RAP establishes compensation rates and outlines resettlement sites, income restoration activities, stakeholder engagement, and monitoring and evaluation procedures. It aims to enhance livelihoods in a sustainable manner and minimize undesirable impacts of involuntary resettlement.
Public hearing presentation dempster dodge proposed tif 5.14.12cityofevanston
The proposed Dempster/Dodge TIF district aims to revitalize a struggling retail area through tax increment financing. The district qualifies as a blighted area due to excessive vacancies above 50%, obsolete structures, and lagging property values. The TIF plan proposes a $20 million budget to fund infrastructure upgrades, environmental remediation, and developer incentives to attract new tenants and increase property values from a $10 million base to a projected $30-35 million. The plan must still be approved by city council through an ordinance approval process with additional opportunities for public comment.
The document discusses land value capture (LVC) as a mechanism for financing infrastructure investments. LVC involves recouping increases in land value generated by public infrastructure upgrades. It can unlock additional funding sources and promote cost-sharing between public and private stakeholders. Examples are provided of LVC being used to regenerate urban waterfronts in Ahmedabad, India and Rio de Janeiro, Brazil by selling reclaimed land and development rights. A variety of LVC tools are also summarized, including special assessments, tax increment financing, sale of development rights, and land pooling. The document argues that LVC can finance improvements across sectors like transportation, water, and slum upgrading.
9. Addis Ababa: a case study on land leasingACCUCT
This document summarizes a presentation on urban infrastructure in Addis Ababa, Ethiopia. It discusses Addis Ababa's population growth, land ownership system, land leasing program, housing challenges, and urban planning projects. The land leasing program generates revenue for the city but supply has not kept up with demand, leading to high prices. While the program encourages development, there are arguments that not all land allocated at low prices reaches targeted groups. Overall, the rapid growth of Addis Ababa through urban planning programs demonstrates Ethiopia's economic development, but continuing challenges around land and housing supply remain.
This document discusses the concept of land value capture, where governments can capture some of the increased land value that results from public investments and policy changes. It provides examples of how governments have implemented land value capture through various policies like development impact fees, commercial linkage fees, and inclusionary housing. However, these policies are often controversial and face opposition from developers. The document argues that applying these policies at the time of rezonings or land use changes, through a negotiated process, could help address this opposition by tying the value capture more directly to the actions creating the increased land values. It uses the example of San Francisco's Eastern Neighborhoods Plan to illustrate how a community organizing effort led to a sophisticated system of value capture
Launching Your Project Using Sophisticated Real Estate Development Strategieslerchearly
Get insights on essential tools to getting your project off the ground. Lerch Early's real estate attorneys will present four sessions focusing on Structuring Mixed-Use Projects, Tax Credit Financing 101 for Development Projects, Making Your Ground Lease Financeable, and Tax Deferred Exchanges Using Condemnation Proceeds.
Resettlement is involuntary when it occurs without the informed consent of the displaced persons or if they give their consent without having the power to refuse resettlement. This presentation gives an overview on how resettlement can be executed in Tanzania by following World Bank Operational Policy 4.12 and Tanzania legal framework.
This document outlines the fundamental components of a Resettlement Action Plan (RAP), including its objectives, compensation and resettlement strategies, and monitoring. The key objectives of a RAP are to identify and improve or restore the livelihoods of those affected by involuntary resettlement due to a development project. It must also consider alternatives to minimize displacement. A RAP establishes compensation rates and outlines resettlement sites, income restoration activities, stakeholder engagement, and monitoring and evaluation procedures. It aims to enhance livelihoods in a sustainable manner and minimize undesirable impacts of involuntary resettlement.
Public hearing presentation dempster dodge proposed tif 5.14.12cityofevanston
The proposed Dempster/Dodge TIF district aims to revitalize a struggling retail area through tax increment financing. The district qualifies as a blighted area due to excessive vacancies above 50%, obsolete structures, and lagging property values. The TIF plan proposes a $20 million budget to fund infrastructure upgrades, environmental remediation, and developer incentives to attract new tenants and increase property values from a $10 million base to a projected $30-35 million. The plan must still be approved by city council through an ordinance approval process with additional opportunities for public comment.
This document provides a summary of a research outline for a USC class project on post-redevelopment in Los Angeles. It includes background context on redevelopment agencies in California, a meeting with LA's Planning Department, a case study of economic development in Alhambra, best practices from Chicago, Phoenix, and New York, and recommendations for LA including alternative financing tools, incentives, and streamlining planning processes.
This document summarizes infrastructure financing mechanisms in Massachusetts, including recent policies that enable public-private partnerships. It discusses examples from Somerville, Marshfield, and Westford that showcase different approaches, such as an infrastructure development assistance agreement and district improvement financing. The Marshfield case highlights lessons learned about needing a committed development partner to absorb risk. Local bylaws can also help coordinate infrastructure mitigation through methods like betterments or business improvement districts.
Mid year state of the city (report) 2009 (3)crystalnking
This mid-year progress report from the City of Mt. Pleasant summarizes the work done in 2009 to achieve the city's long-term vision. Key areas of focus include improving neighborhoods through infrastructure upgrades, public safety programs, and code enforcement; promoting economic development through partnerships, incentives, and streamlining boards; expanding recreational opportunities such as a new spray park and trail; reducing costs through energy efficiency and grant funding; and supporting commercial and retail sectors with new zoning. Overall the report indicates that various departments have made progress implementing the commitments of the annual budget to move the city toward its vision.
This document provides an overview of the indicative masterplan for the proposed expansion of South Marston Village. The masterplan shows land uses including approximately 580 new homes on greenfield land and 170 homes on brownfield sites. Key development principles are to maintain separation from other areas, preserve a rural feel through open spaces and green corridors, and respect the village's culture and heritage. Feedback is sought on specific issues related to housing, transport, green spaces and other facilities.
The document presents a draft Social Management Framework (SMF) for the Bangladesh Economic Zones Authority (BEZA). The SMF aims to enhance positive social outcomes, mitigate adverse impacts, ensure local participation, and comply with relevant policies regarding social safeguards for projects implemented under the Private Sector Development Support Project (PSDSP). Key elements of the SMF include screening sites for impacts, guidelines for land acquisition and resettlement, community consultations, a grievance redress mechanism, and entitlement matrices that outline compensation for various losses like land, homes, trees, income, and unforeseen impacts. The SMF also describes how impact mitigation instruments like resettlement plans will be prepared and how land acquisition and resettlement budgets will
Fundamental Skills for Real Estate Development Professionals II – Project Ent...Virtual ULI
The document summarizes a presentation on project entitlements for real estate development professionals. It discusses what entitlements are, why they are important, and the process of obtaining approvals from governmental entities. The entitlement process involves multiple layers of regulation from comprehensive plans and zoning to permits. Factors like density, design, environmental impacts, and civic engagement can influence negotiating entitlements. Case studies demonstrate challenges in obtaining approvals.
Fundamental Skills for Real Estate Development Professionals II. Con't Projec...Virtual ULI
The document provides an overview of the project entitlement process, outlining key steps like obtaining approvals from local planning departments through zoning, permits, and developing strategic initiatives to engage the community such as emphasizing sustainability and smart growth. It also presents a case study of a successful entitlement process for a large development project that eliminated residential uses in response to community concerns and incorporated public recreation opportunities.
Jim Proce - Stormwater & Drainage Utility Fees Analysis and PresentationJim Proce
Jim Proce has worked with community to implement stormwater utility programs in Texas and Florida. This particular presentation was a briefing for the city council illustrating the financial impact analysis for the revision to the structural components of the fee basis.
Public hearing presentation main chicago proposed tif draft 11.12.12cityofevanston
The proposed Chicago/Main TIF District in Evanston aims to invest $25 million over 23 years to encourage transit-oriented development and improvements through public-private partnerships and infrastructure upgrades. The TIF district qualifies based on deteriorating properties over 35 years old and a lagging assessed property value. The plan budgets for land assembly, utilities, rehabilitation, and public facilities to potentially increase property values from $11.5 million to $30-35 million.
This document provides an overview of zoning regulations and how they are used by municipalities in Vermont to manage land use and development. It discusses the origins and evolution of zoning from the early 20th century to present day. It also outlines the typical components of local zoning regulations, including statutory authorization, zoning districts and maps, use standards, dimensional standards, and development review procedures.
This document proposes strategies to enhance the living heritage of As-Salt, Jordan. It recommends increasing community participation in planning and implementation projects. It also suggests encouraging design interventions that facilitate social interaction and accommodate changing lifestyles. Additionally, it proposes promoting economic strategies like tourism to generate local employment and improving the physical environment with green spaces. The document outlines guiding principles, a phased implementation strategy, and in-situ planning processes to achieve the vision of developing a living heritage in As-Salt.
A Planning Obligation is an agreement entered into by a developer with an interest in land that restricts development or requires certain operations/activities related to a proposed development. Planning Obligations must be necessary to make a development acceptable, directly related to the development, and fairly related in scale. They are used to require affordable housing, education facilities, highways improvements, and other social/community facilities necessitated by new developments. Lichfield District Council requires major housing and commercial developments to provide social/community facilities through on-site provision or contributions, with residential developments of over 10 homes required to contribute £2,500 per dwelling.
This document discusses how planning can help address climate change through sustainable energy opportunities and considerations for plan-making and development applications. It notes that planning can maximize economic benefits by reducing energy costs, help meet emissions targets, and build resilience to extreme weather. Issues to consider include rising fuel costs, the need to limit global warming, and examples of extreme weather events in the UK. The document provides guidance on how planning can adapt to and mitigate climate change through approaches like renewable energy development, sustainable construction standards, and sustainable drainage systems.
smc bos measure k revised allocation optionsAdina Levin
This document discusses two options to revise the Measure K allocation plan to increase funding for affordable housing. Option 1 would increase affordable housing funding to $22.5 million in FY 2017-18 and $25 million in FY 2018-19 by reducing funds for other initiatives like youth programs, transportation contributions, district-specific allocations, and IT projects. Option 2 would increase affordable housing funding to $20 million annually by decreasing transportation contributions and youth programs. Both options propose allocating the increased affordable housing funds to development projects and ongoing housing programs.
This document discusses various public financing mechanisms for infrastructure projects through public-private partnerships, including Public Improvement Districts, Tax Increment Reinvestment Zones, and Municipal Utility Districts. It notes that population growth is increasing demand on aging infrastructure while public funding faces constraints. Partnerships can spread risk and costs between public and private entities. The document provides details on eligible projects, governance, funding sources, and risks for each mechanism.
This document discusses urban infrastructure financing in Sub-Saharan Africa. It presents a conceptual framework for sources of capital finance including land-based financing instruments. Examples are given of different countries and cities using various land-based financing approaches like 'in-kind' developer contributions, land leasing, and development charges. However, the study finds that land-based financing currently makes a small contribution to infrastructure finance in Sub-Saharan Africa. While some areas have development charges, several countries do not use the revenue for infrastructure. There is potential to increase funding through improved use of development charges and other land value capture mechanisms.
This document provides guidelines for accounting for and reporting fixed assets according to Generally Accepted Accounting Principles and Governmental Accounting Standards Board Statement 34. It defines what qualifies as a capital asset and establishes capitalization thresholds. It also outlines the classification, acquisition costs, donations, and categories of fixed assets including land, land improvements, buildings, equipment, and infrastructure.
FINANCING STORMWATER RETROFITS IN PHILADELPHIA AND BEYONDU.S. Water Alliance
Traditional means for stormwater infrastructure finance, such as bond issues, federal and state dollars—are becoming increasingly untenable, and it seems inevitable that private investment will be needed as cities contemplate future stormwater management planning. This presentation will discuss Philadelphia’s plan to use GI to mitigate stormwater run-off and how its parcel-based stormwater billing and credit system may present significant opportunities for private investors in local GI investment.
This document discusses various techniques for public-private partnerships that can be used to promote economic development. It outlines tools like tax increment financing (TIF), tax abatement, Chapter 380 grants, certificates of obligation, hotel occupancy taxes, and development agreements. These techniques allow municipalities to provide funding, incentives, and infrastructure support to attract private investment and stimulate business activity. The document provides an overview of how each technique works and the processes involved.
This document discusses the process and requirements for political subdivisions in Minnesota to grant property tax abatements to private broadband providers. It states that abatements must provide public benefits and be in the public interest, such as increasing the tax base or providing jobs and services. It outlines the abatement approval process, duration limits of up to 20 years, and allows abatements to be financed through general obligation bonds without an election. The proposed structure would have participating governments issue bonds to loan funds to a private provider to reimburse costs of installing fiber cables.
This document provides a summary of a research outline for a USC class project on post-redevelopment in Los Angeles. It includes background context on redevelopment agencies in California, a meeting with LA's Planning Department, a case study of economic development in Alhambra, best practices from Chicago, Phoenix, and New York, and recommendations for LA including alternative financing tools, incentives, and streamlining planning processes.
This document summarizes infrastructure financing mechanisms in Massachusetts, including recent policies that enable public-private partnerships. It discusses examples from Somerville, Marshfield, and Westford that showcase different approaches, such as an infrastructure development assistance agreement and district improvement financing. The Marshfield case highlights lessons learned about needing a committed development partner to absorb risk. Local bylaws can also help coordinate infrastructure mitigation through methods like betterments or business improvement districts.
Mid year state of the city (report) 2009 (3)crystalnking
This mid-year progress report from the City of Mt. Pleasant summarizes the work done in 2009 to achieve the city's long-term vision. Key areas of focus include improving neighborhoods through infrastructure upgrades, public safety programs, and code enforcement; promoting economic development through partnerships, incentives, and streamlining boards; expanding recreational opportunities such as a new spray park and trail; reducing costs through energy efficiency and grant funding; and supporting commercial and retail sectors with new zoning. Overall the report indicates that various departments have made progress implementing the commitments of the annual budget to move the city toward its vision.
This document provides an overview of the indicative masterplan for the proposed expansion of South Marston Village. The masterplan shows land uses including approximately 580 new homes on greenfield land and 170 homes on brownfield sites. Key development principles are to maintain separation from other areas, preserve a rural feel through open spaces and green corridors, and respect the village's culture and heritage. Feedback is sought on specific issues related to housing, transport, green spaces and other facilities.
The document presents a draft Social Management Framework (SMF) for the Bangladesh Economic Zones Authority (BEZA). The SMF aims to enhance positive social outcomes, mitigate adverse impacts, ensure local participation, and comply with relevant policies regarding social safeguards for projects implemented under the Private Sector Development Support Project (PSDSP). Key elements of the SMF include screening sites for impacts, guidelines for land acquisition and resettlement, community consultations, a grievance redress mechanism, and entitlement matrices that outline compensation for various losses like land, homes, trees, income, and unforeseen impacts. The SMF also describes how impact mitigation instruments like resettlement plans will be prepared and how land acquisition and resettlement budgets will
Fundamental Skills for Real Estate Development Professionals II – Project Ent...Virtual ULI
The document summarizes a presentation on project entitlements for real estate development professionals. It discusses what entitlements are, why they are important, and the process of obtaining approvals from governmental entities. The entitlement process involves multiple layers of regulation from comprehensive plans and zoning to permits. Factors like density, design, environmental impacts, and civic engagement can influence negotiating entitlements. Case studies demonstrate challenges in obtaining approvals.
Fundamental Skills for Real Estate Development Professionals II. Con't Projec...Virtual ULI
The document provides an overview of the project entitlement process, outlining key steps like obtaining approvals from local planning departments through zoning, permits, and developing strategic initiatives to engage the community such as emphasizing sustainability and smart growth. It also presents a case study of a successful entitlement process for a large development project that eliminated residential uses in response to community concerns and incorporated public recreation opportunities.
Jim Proce - Stormwater & Drainage Utility Fees Analysis and PresentationJim Proce
Jim Proce has worked with community to implement stormwater utility programs in Texas and Florida. This particular presentation was a briefing for the city council illustrating the financial impact analysis for the revision to the structural components of the fee basis.
Public hearing presentation main chicago proposed tif draft 11.12.12cityofevanston
The proposed Chicago/Main TIF District in Evanston aims to invest $25 million over 23 years to encourage transit-oriented development and improvements through public-private partnerships and infrastructure upgrades. The TIF district qualifies based on deteriorating properties over 35 years old and a lagging assessed property value. The plan budgets for land assembly, utilities, rehabilitation, and public facilities to potentially increase property values from $11.5 million to $30-35 million.
This document provides an overview of zoning regulations and how they are used by municipalities in Vermont to manage land use and development. It discusses the origins and evolution of zoning from the early 20th century to present day. It also outlines the typical components of local zoning regulations, including statutory authorization, zoning districts and maps, use standards, dimensional standards, and development review procedures.
This document proposes strategies to enhance the living heritage of As-Salt, Jordan. It recommends increasing community participation in planning and implementation projects. It also suggests encouraging design interventions that facilitate social interaction and accommodate changing lifestyles. Additionally, it proposes promoting economic strategies like tourism to generate local employment and improving the physical environment with green spaces. The document outlines guiding principles, a phased implementation strategy, and in-situ planning processes to achieve the vision of developing a living heritage in As-Salt.
A Planning Obligation is an agreement entered into by a developer with an interest in land that restricts development or requires certain operations/activities related to a proposed development. Planning Obligations must be necessary to make a development acceptable, directly related to the development, and fairly related in scale. They are used to require affordable housing, education facilities, highways improvements, and other social/community facilities necessitated by new developments. Lichfield District Council requires major housing and commercial developments to provide social/community facilities through on-site provision or contributions, with residential developments of over 10 homes required to contribute £2,500 per dwelling.
This document discusses how planning can help address climate change through sustainable energy opportunities and considerations for plan-making and development applications. It notes that planning can maximize economic benefits by reducing energy costs, help meet emissions targets, and build resilience to extreme weather. Issues to consider include rising fuel costs, the need to limit global warming, and examples of extreme weather events in the UK. The document provides guidance on how planning can adapt to and mitigate climate change through approaches like renewable energy development, sustainable construction standards, and sustainable drainage systems.
smc bos measure k revised allocation optionsAdina Levin
This document discusses two options to revise the Measure K allocation plan to increase funding for affordable housing. Option 1 would increase affordable housing funding to $22.5 million in FY 2017-18 and $25 million in FY 2018-19 by reducing funds for other initiatives like youth programs, transportation contributions, district-specific allocations, and IT projects. Option 2 would increase affordable housing funding to $20 million annually by decreasing transportation contributions and youth programs. Both options propose allocating the increased affordable housing funds to development projects and ongoing housing programs.
This document discusses various public financing mechanisms for infrastructure projects through public-private partnerships, including Public Improvement Districts, Tax Increment Reinvestment Zones, and Municipal Utility Districts. It notes that population growth is increasing demand on aging infrastructure while public funding faces constraints. Partnerships can spread risk and costs between public and private entities. The document provides details on eligible projects, governance, funding sources, and risks for each mechanism.
This document discusses urban infrastructure financing in Sub-Saharan Africa. It presents a conceptual framework for sources of capital finance including land-based financing instruments. Examples are given of different countries and cities using various land-based financing approaches like 'in-kind' developer contributions, land leasing, and development charges. However, the study finds that land-based financing currently makes a small contribution to infrastructure finance in Sub-Saharan Africa. While some areas have development charges, several countries do not use the revenue for infrastructure. There is potential to increase funding through improved use of development charges and other land value capture mechanisms.
This document provides guidelines for accounting for and reporting fixed assets according to Generally Accepted Accounting Principles and Governmental Accounting Standards Board Statement 34. It defines what qualifies as a capital asset and establishes capitalization thresholds. It also outlines the classification, acquisition costs, donations, and categories of fixed assets including land, land improvements, buildings, equipment, and infrastructure.
FINANCING STORMWATER RETROFITS IN PHILADELPHIA AND BEYONDU.S. Water Alliance
Traditional means for stormwater infrastructure finance, such as bond issues, federal and state dollars—are becoming increasingly untenable, and it seems inevitable that private investment will be needed as cities contemplate future stormwater management planning. This presentation will discuss Philadelphia’s plan to use GI to mitigate stormwater run-off and how its parcel-based stormwater billing and credit system may present significant opportunities for private investors in local GI investment.
This document discusses various techniques for public-private partnerships that can be used to promote economic development. It outlines tools like tax increment financing (TIF), tax abatement, Chapter 380 grants, certificates of obligation, hotel occupancy taxes, and development agreements. These techniques allow municipalities to provide funding, incentives, and infrastructure support to attract private investment and stimulate business activity. The document provides an overview of how each technique works and the processes involved.
This document discusses the process and requirements for political subdivisions in Minnesota to grant property tax abatements to private broadband providers. It states that abatements must provide public benefits and be in the public interest, such as increasing the tax base or providing jobs and services. It outlines the abatement approval process, duration limits of up to 20 years, and allows abatements to be financed through general obligation bonds without an election. The proposed structure would have participating governments issue bonds to loan funds to a private provider to reimburse costs of installing fiber cables.
OEDA Infrastructure Puzzle Power Point 3-3-15David Robinson
This document discusses infrastructure financing strategies for economic development projects. It introduces the concept of an "Infrastructure Puzzle" where multiple funding sources must be pieced together to finance infrastructure projects. These sources include local funding mechanisms like tax increment financing (TIF) and special assessment districts, as well as state, federal, and private sector funding. The document provides details on TIFs, including how they work, eligible project costs, and strategies for converting future TIF revenues into upfront funding for projects. It also discusses other local funding tools and developer-funded infrastructure options.
Land value capture involves government actions that increase land values (value creation), such as infrastructure investments or rezoning, and then capturing some of that increased value for public benefit (value capture). Three common approaches are negotiation-based systems like in Vancouver, impact fees, and inclusionary housing requirements. However, these approaches are controversial because developers and landowners argue they bear the costs, while advocates argue the public should share in publicly created land value increases. Applying land value capture at the time of rezoning rather than later could help address these controversies.
Creative Financing Methods to Fund Project Finance-PPP ProjectsCherylOberdorf
The document discusses funding and financing options for redevelopment projects. It describes challenges such as high costs, long timelines, and risks. Specific options discussed include the Long Term Tax Exemption Law, Redevelopment Area Bond Financing Law, and Revenue Allocation District Financing Act. The case study of 1180 Raymond Boulevard in Newark used a combination of these options including a Redevelopment Area Bond and Environmental Infrastructure Trust funding to remediate contaminated land and develop a distribution center.
9/8 THUR 16:00 | Special Districts and Financing Growth in Florida 2APA Florida
Todd Wodraska
“Growth” requires public facilities and services, but in Florida “Growth Should Pay for Itself”! Counties and cities resist using taxes to provide for new residents, shifting the burden to more than 1600 “special districts”. Districts build facilities using borrowed money, repaying debt from annual “assessments” only upon the “benefited” property owners within their boundaries. Until recently, the spigots of exuberant capitalism gushed freely,
but the fiscal world has changed. Florida will continue to grow -- but what are the “New Rules” for America’s post-“Meltdown” financial system? Will special districts find the resources to address
the needs of Future Florida?
A new approach to infrastructure financing in Colombiapc1619
Clemente del Valle, president of FDN, outlines Colombia's world-class infrastructure program which includes 40 projects worth USD 27 billion developing over 8,000 km of infrastructure. Corruption, inadequate infrastructure supply, and inefficient government bureaucracy are among the top problems for doing business in Colombia. FDN, Colombia's development bank, aims to mobilize USD 2.5 billion for infrastructure financing by the end of 2015 through financial products, regulatory changes, and pilot projects.
A report by the Citizen Advocacy Center.
Tax Increment Financing, or TIF, is a powerful municipal economic development tool created by the Illinois General Assembly in 1977. Although nearly every state in the nation adopted tax increment financing, each state’s legislation differs. The Illinois Tax Increment Allocation Redevelopment Act is the basis for all the information in this website.
The purpose of TIF is to spur and fund development in areas with declining or stagnant property values through providing incentives to developers. The revenues used to pay for the incentives come from property taxes that the municipality diverts for the duration of the TIF district, typically 23-30 years. The theory is that the TIF designated area will develop due to the assistance of incentives to developers, and the property valuation for the TIF designated area will substantially increase and benefit all taxing bodies in the future.
Need for Smart Cities, Introduction to Smart Cities, India Smart City Initiative Details, Financing Mechanisms to support implementation & Global Examples
The document discusses the various agencies and institutions involved in building projects and urban renewal. It outlines the steps of a typical building project from purchasing land to obtaining financing. Many government departments are involved at different stages for tasks like land registration, construction approval, utilities provision, and more. Urban renewal often requires partnerships between local authorities and private developers to redevelop areas, with the local government assembling land and infrastructure and developers focusing on construction. Planning gain agreements may provide benefits to the community in exchange for profitable development approvals.
This document provides an overview of Tax Increment Financing (TIF) and Tax Increment Reinvestment Zones (TIRZ) in San Antonio, Texas. It defines TIF and TIRZ, describes the over $1 billion in existing value and developments supported by TIF in San Antonio, and outlines eligible TIF project types like open space, higher education, affordable housing, facade preservation, and infrastructure. It also summarizes TIF regulations, the process for establishing TIRZs, how TIF funds are allocated to reimburse developers, and contact information.
This document discusses PILOTs (payments in lieu of taxes) and RABs (redevelopment area bonds) as redevelopment tools. It defines a PILOT as an alternative tax payment made pursuant to a financial agreement for redevelopment projects. RABs allow for pledging of future PILOT revenues to bondholders to fund redevelopment projects. The document provides examples of how PILOTs and RABs have successfully financed redevelopment projects and infrastructure improvements. It concludes that these tools are necessary municipal incentives but often require additional state and federal financing incentives to close project funding gaps.
Jamieson: Alternative Finance and Delivery for Water ProjectsPaul Blanchard
Jill Jamieson presented on leveraging alternative finance and delivery structures for water resource projects. She discussed the global infrastructure funding deficit and America's aging infrastructure needs. Two case studies were presented: the Grand Prairie Irrigation Project, which could benefit from a public-private partnership to accelerate completion, and the Fargo-Moorhead Flood Risk Management Project, which a P3 approach would reduce costs and accelerate delivery for. The presentation concluded that P3 is becoming more common for infrastructure projects due to capital availability, though water projects have unique characteristics that require understanding to structure successful transactions.
Recent Trends Fueling The Surge in Farmhouse Demand in IndiaFarmland Bazaar
Embarking on the journey to acquire a farmhouse for sale is just the beginning; the real investment lies in crafting an environment that contributes to our mental and physical well-being while satisfying the soul. At Farmlandbazaar.com, India’s leading online marketplace dedicated to farm land, farmhouses, and agricultural lands, we understand the importance of transforming a humble farmland into a warm and inviting sanctuary. Let's explore the fundamental aspects that can elevate your farmhouse into a tranquil haven.
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Discover Yeni Eyup Evleri 2, nestled among the rising values of Eyupsultan, offering the epitome of modern living in Istanbul.
With its spacious living areas, contemporary architecture, and meticulous details, Yeni Eyup Evleri 2 is poised to be the star of your happiest moments. Situated in the new favorite district of Eyupsultan, claim your spot and unlock the doors to a peaceful life alongside your loved ones. Nestled next to the historical and natural beauties of Eyupsultan, embrace the comfort of modern living and rediscover life.
Social Amenities:
Yeni Eyup 2 offers a life filled with joy with its green landscaping areas, gym, sauna, children’s play areas, café, outdoor pool, and basketball court. Reserve your place for unforgettable moments!
Reliable Structure:
With 1+1, 2+1, and 3+1 apartment options, Yeni Eyup Evleri 2 is designed with first-class materials and craftsmanship. The doors to a safe and comfortable life are here! Choose the option that suits you best and step into your dream home.
Project:
Yeni Eyup 2 is conveniently located, with Istanbul Airport just 26 minutes away, the Mecidiyeköy Metro Line 4 minutes away, and the Tram Stop 5 minutes away, making your life easier with its central location.
Location:
Your home is positioned in a privileged location, providing easy access to the city center, shopping malls, restaurants, schools, and other important places.
Yeni Eyup 2 offers 1+1, 2+1, and 3+1 apartment options designed to meet different needs. Find an option suitable for every lifestyle and open the doors to a comfortable life in your dream home.
https://listingturkey.com/property/yeni-eyup-evleri-2/
Serviced Apartment Ho Chi Minh For RentalGVRenting
GVRenting is the leading rental real estate company in Vietnam. We help you to find a serviced apartment for rent in Ho Chi Minh & Saigon. Discover our broad range of rental properties in Vietnam.
For more details https://gvrenting.com/
BEST FARMLAND FOR SALE | FARM PLOTS NEAR BANGALORE | KANAKAPURA | CHICKKABALP...knox groups real estate
welcome to knox groups real estate company in Bangalore. best farm land for sale near Bangalore and madhugiri . Managed farmland near Kanakapura and Chickkabalapur get know more details about the projects .Knox groups is a leading real estate company dedicated to helping individuals and businesses navigate the dynamic real estate market. With our extensive knowledge, experience, and commitment to excellence, we deliver exceptional results for our clients. Discover the perfect foundation for your agricultural aspirations with KNOX Groups' prime farm lands. These aren't just plots; they're the fertile grounds where vibrant crops flourish, livestock thrives, and unique agricultural ventures come to life. At KNOX, we go beyond selling land we curate sustainable ecosystems, ensuring that your journey toward agricultural success is seamless and prosperous.
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2. THREE PILLARS OF CITY
RESILIENCE
• Investment needs for cities extend beyond the reach of public
finances
• Projections show that investments of $4.1 to $4.3 trillion in
urban infrastructure are needed every year
• An incremental 9 to 27 percent ($0.4 trillion to $1.1 trillion)
needed to be climate resilient
• Capital does not flow easily to meet this demand due to lack of
knowledge and support from financial services
Infrastructure
Physical resilience
across sectors
Finance
Financial resilience and
capital market
engagement
Governance &
Systems
Institutional
resilience and
reform
3. PRIVATE SECTOR INVESTMENT IN INFRASTRUCTURE HAS THREE
OVERLAPPING MODALITIES
Direct lending to a responsible jurisdiction
Variety of borrowing mechanisms that can complement each other
Full control and financial risk born by public entity
Debt
Public entity transfers some or most of financing (including but not
limited to equity project financing), construction and/or operating
responsibilities (and risks) to a private partner
Concession
Infrastructure financing is part of a broader development effort
Reduces impact on government balance sheet
Facilitates creation of private economic value in benefiting location
Land Value
Capture (LVC)
4. Financial
policy
mechanism
that helps
governments
to:
Finance public investment in infrastructure to reduce physical
vulnerabilities due to floods, environmental degradation, etc,
thereby unlocking land values that are then captured by the city
Secure (or reimburse) upfront infrastructure funding by recouping
real estate value gains generated by infrastructure upgrades
Levy direct beneficiaries of public improvements, which would
otherwise benefit from such improvements as “windfall gains”
Unlock additional funding in conditions of limited access to
traditional sources of public sector financing
Promote infrastructure cost-sharing with win-win outcomes to
public and private stakeholders
Incentivize wider policy measures that increase land value, e.g.
reduction of local risks
5. Blighted
urban riverfront
Place for the poor
to build their
hutments
Inaccessible
No new
commercial/resid
ential
development
$17 mln of
upfront public
investment
22km enforced
promenade
Slums resettlement
Sewage upgrade
Environmental
rehab
Land reclamation
Well serviced,
walkable
waterfront
River access open to
public
202 ha of land has
been made available
for modern
development
reduce erosion and
exposure of the city
to flood risk
30 ha of
reclaimed land
for sale
15% of sale
proceeds recovers
the cost of entire
upfront public
investment
7-10 years
6. Underused
industrial lands
in the historic
core of Rio
Low-density uses
inherited from
cargo port
Poor accessibility
Contaminated
waters
Unpleasant views
New density and
height
regulations
adopted
City adopted new
zoning to allow
construction of
additional density
Structured SPV to
sell extra
development rights
City earns $1.8
bln from sale of
rights to build
extra density
Proceeds are
directed to hard
infrastructure
improvements
More build-up is
facilitated
Further sale of
development rights
Regenerated
modern mixed-
use community
The area becomes
home to 70,000
new mixed-income
residents in a well-
serviced, accessible
community with
nice urban views
3-4 years to sale of a first tranche of development rights, 15 years to fully build out
7. Investments can include hard
infrastructure, slum upgrading,
environmental remediation
Improved infrastructure translates
into higher desirability and
increased development potential of
land
Value captured
as a fraction of imputed
private developer’s profit.
• Can be captured either upfront
or post project completion
• Can be in monetary terms or as
in-kind contribution of
proportionate value
Captured value contributes to
recover costs of infrastructure
upgrades and/or generates funds
for additional infrastructure
investment
Underserviced
land
Investment in
infrastructure upgrade
Upgraded land
commands higher
values
Private developer
earns profit from
further land
improvements
Part of private
developer’s profit is
captured by the
City
Captured value is
reinvested in
infrastructure
Developer’s profit is large enough to offset some
or entire cost of infrastructure upgrades
8. If there is a $ 1 billion capital investment program contemplated by a city:
• Business as usual:
The World Bank finances $100 million with an interest-bearing term loan
Another $900 million is raised from general funds, public/private debt and grants
• Leveraging LVC:
In concert with all of the above, The World Bank provides comprehensive technical assistance to the city to help
structure additional funding with re-captured land value (e.g. cash proceeds from sale of land / development rights,
special tax assessments, etc.)
This works towards overall reduction of the principal of interest-bearing loans, general fund appropriations and
grant resources and enhances bankability of the $1 bln program
9. Conceptualization of LVC - hypothetical disaggregation of land value
Intrinsic land value
Land buyers (or lessees) pay sellers (lessors) to obtain the
property rights of land.
Increases in land value due to
landowners’ investments.
Private land owners should profit from this portion of the
increment.
Increases in land value due to public
investment in infrastructure and changes
in land use regulations.
Public service providers could capture this portion of the
increment to cover the costs of public infrastructure and
local service provision.
Increases in land value due to population
growth and economic development.
The government, on behalf of the general public, may keep
this portion of the land value.
10. There is a range of tools used by public sector to capture land value gains
Leveraging public real
assets
Development charges
Sale of development
rights
Land pooling
/readjustment
Special assessments/
betterment levies
Disposition (sale or lease) of excess/underutilized public assets (land, property) for cash that is re-
invested in local infrastructure
Developer receives development rights (or tenure rights in land, or approval of land use changes) in
exchange for obligation to compensate in cash (or provide in-kind) the cost of certain items of
public infrastructure benefitting larger area.
Development rights or certificates of additional density are sold for cash to finance infrastructure
improvements
Land owners or occupants voluntarily contribute part of their land for infrastructure development
and for sale to cover some project cost. In return, each land owner receives a serviced plot of
smaller area with higher value within the same neighborhood.
Locally administered tax increments (property taxes, sales taxes, etc.) that generate additional tax
revenues for re-investment in local infrastructure
Tax increment financing
Capturing increases in property/land tax base (after infrastructure upgrades) and using such
incremental tax proceeds as collateral and refinancing source for infrastructure loans
11. Privately-owned land or public land
lease*
Development changes
Sale of development rights
Land pooling/readjustment
Special tax assessments and Tax
Increment Financing
Publicly-owned land
Sale/lease of land that underwent
public infrastructure upgrades
Sale/lease of land with
development conditions (i.e.
negotiated contribution for
infrastructure or affordable housing)
Land as an equity contribution
towards a joint venture
12. Underserved Land
(hazard-prone, blight)
Developer Barriers:
• High risk profile
• Cost-of-carry concerns
• Free-rider problem
Development-ready Land
(desirable, properly zoned, resilient)
Development Enablers:
• Disaster risk reduction
• Slum upgrading
• Hard infrastructure
• Land consolidation / rezoning
Development Timeline
Land Value
PUBLIC UPGRADES
WITH
VALUE
CAPTURE
OPPORTUNITY
Potential for further
exponential
value growth
13. Cash
flow,
$
Time periods
-120
-80
-40
0
40
80
120
1 2 3 4 5 6 7 8 9 10
-120
-80
-40
0
40
80
120
1 2 3 4 5 6 7 8 9 10
Infrastructure windfall: public costs for infrastructure are
offloaded to private sector; private partner’s returns are high
enough to absorb extra costs and extended payback
Infrastructure bottleneck: upfront infrastructure costs are too
high for private sector and are paid by public funds; public costs
are later recovered from private partner’s operating revenue
Cash flow with LVC
Cash flow without LVC
14. `
Market
Legal and
regulatory
systems
Public
acceptance
• Most effective in burgeoning
real estate market
• Highest land value differential
is achieved in areas that are
most responsive to
infrastructure upgrades (urban
core, waterfront, etc.)
• Development may face negative
mindset due to displacement,
NIMBY, redlining, spatial
segregation, social stratification, etc.
• Inadequate land controls,
deficient technology and
data systems (e.g. land
cadaster) may hinder LVC
15. • Enhanced budgetary resources for
addressing social goals
• Land value gains / Increased tax revenue
• Self-financed infrastructure
• Improved urban environment
• Regulatory constraints
• Insecure land / property rights
• Lack of real estate market dynamics
LVC builds into the local economic development context by:
Bringing positive development implications Being hampered by development challenges
• Lack of knowledge / management capacity
• Corruption
16. Despite being largely associated with transportation upgrades,
LVC opens financing opportunities for many more infrastructure items
Areas with proven track record in LVC
Transportation and transit-related assets
Water-supply sanitation
Sewage and landfill
Lack of LVC track record but high LVC potential
Flood mitigation
Slum upgrades and resettlement
Water-basin / land decontamination
Environment cleaning and rehabilitation
Historic preservation
Land consolidation
17. Instruments Description Examples in developing countries
Leveraging publicly owned land
/ property
Disposition of “excess” public land generates cash for area-wide infrastructure
upgrades. Often involve land consolidation (e.g. through eminent domain)
or/and entitlement before disposition
• Bonifacio Global City (Philippines);
• Sabarmati Riverfront (India)
Development charges / impact
fees / developer exactions /
Developer receives development rights in exchange for obligation to
compensate in cash (or provide in-kind) the cost of certain items of public
infrastructure benefitting larger area.
• Impact fee formula introduced to fund construction of 21-km highway connector
connector between Santiago and northern suburbs
• In kind/cash developer exactions in cities of Columbia and Chile
Sale of development rights Development rights or certificates of additional density are sold for cash to
finance infrastructure improvements
• CEPAC bonds (Brazil), e.g. Porto Maravilla drainage upgrades;
• Sale of FSI rights in Mumbai (India)
Land pooling / readjustment Land owners or occupants voluntarily contribute part of their land for
infrastructure development and for sale to cover some project cost. In return,
each land owner receives a serviced plot of smaller area with higher value
within the same neighborhood.
• About 1/3 of total urban area in Japan and 1/4 of total urban area in South Korea
were developed through LP/R.
• Used in many countries to facilitate peri-urbanization, urban regeneration including
including slum upgrading, and post-disaster reconstruction.
Introduction of land value taxes Levy on value of underlying land “as unimproved” (as a substitute or
supplement to property tax levied to buildings). Stimulates development to
avoid taxation of idling land. Generates property tax and economic activity. Can
Can be effective in areas plagued by disasters
• Separate taxation of land is introduced in select countries (Taiwan)
• Land value tax was temporarily introduced in cities of Baja California (Mexico) in
early 1990s
Betterment levies/ special
assessment
Public sector taxes away a portion of land-value gain
resulting from publicly funded infrastructure upgrades
• Riverfront in Pimpri-Chinchwad (India);
• $2 bln levied during 1997-2015 in Bogota (Columbia) to fund city-wide road/bridge
road/bridge upgrades
Tax Increment Financing (TIF) TIF aims to capture and leverage estimated future revenues from incremental
increases in collection of property (or other) taxes within a geographically
specified area of redevelopment, a “TIF district”
• Colombia and South Africa are currently piloting TIF.
• “Proxy” TIF in Greater Hyderabad (India) where conventional loans were
originated to fund infrastructure projects and set to be refinanced with property
property tax gains
18. A wealth of value capture techniques established in practice,
can be classified based on the nature and timing of “value-capturing charges”
Tax-based vs. Fee-based vs. Incentive-based
Tax-based: betterment levies, special assessment, TIF, land value tax
Fee-based: exactions, sale/lease of public land, sale of development rights
Incentive-based: land pooling/readjustment, density bonus, negotiated land sale/lease with development
conditions, joint development with public land as equity
Value capture timing (one-time vs. recurring; upfront vs. upon completion)
One-time charges: exactions, sale of development rights, betterment levies, public land sale, land
pooling/readjustment (upfront land contribution)
Recurring charges: TIF, land value tax, special assessment
Either-or: public land lease
19. Relevance of LVC tools may vary depending on the implementation
conditions of each context (table below only indicative)
Unestablished
land market
Lack of land
use controls
and regulations
Deficient land
Cadaster /
records
Insecure
property rights
Limited
access to
capital markets
Non-devolved
fiscal powers
Impact fees /
Exactions
Betterment levies
Leveraging public
assets
Land pooling /
readjustment
Sale of development
rights
Land value tax
Tax Increment
Financing
Prohibitive challenge
(regulatory / systemwide
changes are prerequisite)
Significant challenge
(regulatory/legislative changes
required in certain conditions)
Limited systemwide arrangements
needed. Respective
implementation terms can be set
at deal level
20. APPENDIX
SELECTED LAND VALUE CAPTURE INSTRUMENTS
Negotiated Exactions
Impact Fees
Leveraging Public Assets
Sale of Development Rights
Land Pooling/Readjustment
Land Value Tax
Betterment Levies
Tax Increment Financing
21. Negotiated Exaction: Overview
DESCRIPTION
In-kind (land, improvement) or cash contribution by a developer to foster infrastructure upgrades related to
a proposed real estate project (to that end, Exactions are similar in principle to Impact Fees).
It typically works as a payment for building exemptions (higher land use, density, or eased construction
norms) or other forms of development-enabling certifications.
In contrast to Impact Fees (that are applied systemwide on a formula basis), Exactions are typically applied
case by case through a vis-a-vis negotiated transaction.
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Clear land use and town-planning regulations and rigid construction norms (for setting baseline conditions).
Local government’s capacity in planning and implementation (to be able to fulfill infrastructure obligations).
Rigid public outreach approach to explain what standard building/land use regulations are traded for.
22. Negotiated Exaction: Lessons Learned
OPPORTUNITIES
CHALLENGES
Straightforward two-way transaction
Minimal fiscal impact
Minimum framework regulatory
arrangements needed. Transaction can be
fully structured with ad hoc deal terms
As long as exactions are negotiated on case
by case, entry barriers to development
projects are less predictable
Regulatory exemptions traded for
development permits may fail to generate
enough public good outside of a project itself.
Infrastructure upgrades and related
development with “eased regulations” shall
generate wider public benefit and justify
diversion from standard regulations
In view of the above, objection from the
public to exaction-driven private development
is common
23. Negotiated Exaction: Sample Project
Project Description The project equips the city of Casablanca with a 9-km long collector to drain and canalize floodwater of Oued Bouskoura river
and discharge directly into the ocean.
The collector will reduce exposure of large parts of Greater Casablanca to flooding and will increase the city’s flood protection
to a 20-year level.
$90 million, 95% complete as of March 2017. Funding sources include PPP to include government (40%) and municipal funds
(30%), National Fund to Combat Natural Disasters, and private funds
Value Capture
Component
A fraction of the project was financed with contributions from private companies owning and developing real estate in the
flood-affected areas of Oued Bouskoura basin.
Such contributions included $8 million from the Morocco’s largest private company, OCP Group (phosphate producer), which
develops industrial facilities and a leisure center in the Bouskoura basin.
Western super-collector, Casablanca, Morocco
24. Impact Fees: Overview
DESCRIPTION
Developers are assessed an extra cash charge to compensate the cost of area-wide infrastructure
upgrades.
Per standard scheme, it is a one-time charge applied routinely by a local jurisdiction to real estate
development projects contemplated in the area impacted by infrastructure upgrades. The proceeds from the
charge finance (or refinance) a portion of the cost of facilities upgrades.
Such charge is assessed on a formula that considers benefit allocation, intensity of land use, distance to the
upgraded infrastructure etc.
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Strong planning and analytical capacity at local level needed for planning and costing infrastructure
upgrades, along with devising a solid approach in allocation of benefits across different locations / projects.
Strong execution of public investment plans.
Transparent and stringent formula for impact fee calculation (allowing developers to credibly project impact
fees in development financial pro forms).
25. Impact Fees: Lessons Learned
OPPORTUNITIES
CHALLENGES
Relatively straightforward two-way
transaction
Minimal negative fiscal impact (e.g. municipal
cash flow is not ring-fenced in any way)
Efficient tool to redistribute costs of
development-enabling infrastructure (avoids
overburdening of first-comers and free-riding
of followers)
Extra charges may hinder development activity.
If applied improperly may become a disincentive to
develop land to its highest and best use
Infrastructure benefits are distributed unevenly.
Imperfections in apportioning off-site costs are
inevitable
Works best for hard and basic infrastructure that has
direct and quantifiable impact (such as transit or
sewer/water upgrades). Less prudent for
infrastructure items where short-term impacts are
less tangible (e.g. resilience enhancement, “green”
infrastructure).
26. Impact Fees: Sampled Project
Project Description In late 1990s Santiago metropolitan region started expanding north in the Chacabuco province with 14 major real estate
projects approved (primarily housing), adding 40,000 new households to the metro region.
The new housing projects were to be built on agricultural land lacking urban infrastructure services. Most notably the new
urban districts were lacking connectivity to Santiago’s urban core. To address that, a 21-km radial highway connecting to
central Santiago was to be built with additional 41-km of byways and interchanges.
The total cost of new road network development was estimated at US$106 million.
Value Capture
Component
National government took the upper hand in planning, organizing a builder concession and structuring funding that
comprised 39% government funding and 61% coming from developer impact fees.
The impact fee formula implied a cash charge levied per buildable housing unit. The fee varied based on each project’s
formalized impact on regional road network: location relative to new road, project size, and estimated travel demands.
The impact fee averaged about US $1,600 per housing unit.
New highway to connect sprawled development with urban core, Santiago, Chile
27. Leveraging Public Assets: Overview
DESCRIPTION
Disposition of publicly-owned assets (land, buildings) to a private developer whereby value is realized either
directly (e.g. sale proceeds) or through creation of future development value or socioeconomic benefit
Depending on market conditions and a specific deal structure such disposition may come through direct
arm’s length sale, auctioning, lease, or conveyance/below-market sale as a form of in-kind contribution to
developer equity or for infrastructure or amenity provision
The asset may be disposed either in “as is” condition (if it immanently represents tangible value to the
private-sector partner) or following some initial investment by government
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Availability of excess/underutilized public assets either per se or through asset consolidation / optimization
Market value of the public assets can be clearly established and have potential to generate additional value
Government must communicate effectively to citizens its rationale for disposing public assets
Public entity must have negotiating capacity on par with private sector developers to achieve fair pricing
28. OPPORTUNITIES
CHALLENGES
Can result in direct cash revenue for a municipality
Puts a vacant or underutilized asset back into
productive use
Allows quick value recycling (in certain conditions
enables a city to invest in infrastructure upgrades
upfront without tapping general revenue funds)
Minimal negative fiscal impact
Relatively straightforward two-way transaction (once
value to private sector partners is established and price
of property negotiated)
Sizing and timing market demand requires
special knowledge that municipality may not
posses
Regulatory /legislative limitations on public asset
disposition may stall or encumber the process
Sale of municipality-owned land may result in loss
of control over future development (especially
when city-level land use controls are not robust)
Negotiated disposition price of publicly-owned
assets may face public objection and raise
political concerns
Leveraging Public Assets: Lessons Learned
29. Project Description Aims to provide the city of Ahmedabad with an improved and accessible waterfront along the Sabarmati River, reduce
erosion and exposure of the city to flood risk, upgrade sewers, and rehabilitate and resettle slums
$17 million spent on all heavy engineering works and land reclamation as well as on 22 km lower river promenade complete,
upper promenade still in development. Key financing sources are loans from a local municipal corporation and a central
government financial institution
Value Capture
Component
The project is self-financed – cash for recovery of capital expenditure and operating costs comes from sales of reclaimed and
serviced land for commercial development
Completion of major infrastructural components have already led to increased land values, thus reducing the amount of land
that needs to be transacted for servicing the loans.
Overall the amount invested has been recovered from sales of less than 15% of improved land.
Sabarmati Riverfront Upgrade, Ahmedabad, India
SPV established to manage initial investment in riverfront upgrade and subsequent land sales to the private sector.
Leveraging Public Assests: Sampled Project 1
30. Leveraging Public Assets: Sampled Project 2
Project Description An underground drainage detention structure serving as a flood control facility for Bonifacio Global City
Core element of an elaborate drainage system that collects rainwater from paved urban surfaces then releases it
under controlled conditions
Value Capture
Component
Funding infrastructure improvements with land sale proceeds post entitlement of undeveloped military lands to
real estate development area
Bonifacio Global City Drainage, Manila, Philippines
Construction was financed by proceeds from the $800 million land sale following packaging of public/private
interests into a development joint venture
31. Sale of Development Rights: Overview
DESCRIPTION
• Generates funding for public infrastructure by selling development rights instead of rights in land (rights in land may either be
already obtained, or not intended for transfer or simply come with development rights)
• Sellable development rights fall into two categories: the right to convert less productive (lower) use to a higher use, and the right
right to build at greater densities than normally would be allowed by existing zoning
• Sale of development rights can be organized through sale of development certificates that act as financial market derivatives
(bonds) transferrable in the stock market and thus able to increase liquidity and cash generating potential of this instrument
(such as CEPAC bonds in Brazil)
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Larger urban areas with strong real estate markets maintaining enough demand and growth potential for high-density
development
Relatively deep capital markets for realization of schemes similar to CEPACs
Rigid land use controls, property records (cadaster) and property appraisal systems have to be in place
32. Sale of Development Rights: Lessons Learned
OPPORTUNITIES
CHALLENGES
Direct revenue source that may generate cash for
front-funding or expedited cost recovery of
infrastructure projects – i.e. positive fiscal impact
More liquid revenue source than sale of land rights
Sale of development rights better mitigates the
risks of loss of control over land use (relative to
selling land title alone)
Restricted applicability, i.e. may not work in the
secondary markets where demand for higher
density development is not strong enough
Vulnerable to macroeconomic conditions (more
than many other LVC tools)
For efficient and equitable implementation, strong
and transparent land use controls are prerequisite
33. Sale of Development Rights: Sampled Project
Project
Description
Revitalization of underutilized Guanabara Bay waterfront (mostly government-owned port and near-port lands) into a
brand new mixed-use, mixed-income community. The main rationale is the regeneration of this heavily underserviced
area in the heart of Latin America’s major metropolis, by intensifying and blending new uses
The development plan includes complete reconstruction of local water, sanitation, and drainage systems, extensive
streetscaping and landscaping, installation of three brand new sanitation plants, historic preservation, social inclusion
(at least 3,000 social housing units are being delivered), and cultural and education initiatives
Value Capture
Component
Project-underlying infrastructure has primarily been financed through CEPACs, following adoption of a new law to
substantially increase density and height limitations set in the Porto Maravilha area.
Porto Maravilha Urban Waterfront Revitalization, Rio de Janeiro, Brazil
More than 4 million sq m of additional density was sold via CEPACs during 2011-2013 generating US$1.8 billion in
upfront infrastructure funding (the initial purchaser of a CEPACs was a state-owned financial bank CEF, which passes
CEPACs through, selling them at a profit, to private real estate developers as demand arises)
The area comprises 1,250 acres and is home to 35,000 residents (subject to increase to 100,000 post regeneration).
The program commenced in 2009, with full recycling of approved additional density anticipated by 2025.
34. Land Pooling / Land Readjustment: Overview
DESCRIPTION
• A participatory process in which land owners (or occupants) voluntarily contribute a certain percentage of their land
for infrastructure development and for sale to cover part of project cost. In return, each land owner receives a serviced
serviced plot of smaller area but with higher value within the same neighborhood
• LP/R provides an alternative to expropriation, with minimal displacement
• Many countries used LP/R to facilitate peri-urbanization, urban regeneration including slum upgrading, and post-
disaster and post-conflict reconstruction
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Generally requires consent of supermajority of land owners to approve the project
Appropriate legal framework that empowers local authority to legally take land from dissenting landowners when
supermajority agrees
More feasible in areas with high land value increase potential after project completes
Shall be guided by a city’s mater plan
Quality of property records and cadaster map is important to expedite implementation
35. Land Pooling / Land Readjustment: Lessons Learned
OPPORTUNITIES
CHALLENGES
Assembles land for urban expansion and
revitalization with minimal displacement.
Helps recover a portion of the project cost.
Promotes intensification of land use, thereby
enhancing land value for landowners and
expanding the property tax base for the
municipality.
Distributes land redevelopment costs and
benefits equitably among landowners and other
stakeholders such as the municipality, private
developers, and the community, especially the
urban poor and landless.
Encourages public participation in policy
decision-making.
Land owners’ consensus can be difficult to obtain
especially if projects fully rely on their voluntary
participation
Requires strong project management and
technical capacity, particularly in negotiation and
building consensus with land owners
Not all projects can achieve self-financing and
may require public funding to cover part of
project cost
36. Land Pooling / Land Readjustment : Sampled Project
Project
Description
With technical assistance from the World Bank, Tra Vinh city in Vietnam is currently piloting land pooling/readjustment
approach to redeveloping a centrally located low income neighborhood, in order to address issues of flooding and lack
of drainage network and access roads. The city has very limited budget, and LP/R becomes the only viable approach as
development cost is shared between the city and local residents.
The neighborhood has an area of about 24 hectares, including about 1000 land plots that belong to 480 land users
(under Vietnam’s public leasehold system). A sub-area of 4 hectares was selected as the pilot site. Site plan ensures
access to every land parcel yet avoid demolition of existing structures to the extent possible. Over 90% of the land
users in the pilot area have agreed to participate in the project so far.
Value Capture
Component
As this is the first pilot project, the city plans to cover about 70% of the total investment cost from its budget in order
to reduce land contribution from the land users and gain support from the community. The remaining 30% of the total
cost will be covered by sale of surplus land.
Land Pooling/Readjustment Pilot, Tra Vinh, Vietnam
For agriculture land, each land user will contribute 33% of their land area into the project, and for residential land each
land user will contribute 13%. Preliminary land value assessment shows that land price on average is estimated to
increase by 3.5 to 5 times after the pilot project.
With World Bank support, a new decree that includes LP/R provisions was approved in January 2017, which became
the first legal framework for LP/R in Vietnam.
The city expects that future revenue from land in the project area, such as land transaction tax, land use conversion fee
(from agricultural to residential), and land tax, will also increase substantially as a result of the pilot project.
37. Land Value Tax: Overview
DESCRIPTION
Tax instrument that assesses value of land “as unimproved”, opposite to conventional property tax that
focuses on taxing factual value of land with improvements.
Aims to differentiate tax burden to land owners based on “windfall” benefits of unimproved land – location,
physical characteristics and neighboring uses
Directed at incentivizing improvement of underused urban sites by making land idling and holding prime
lands for speculation a burdensome option for landowners
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Robust land cadaster, land assessment and regular re-assessment practice
Effective tax administration capacity at the local level
Strong local real estate market that naturally differentiates values of land in unimproved condition based
purely on location quality and preeminent development potential
Fiscal decentralization
38. Land Value Tax: Lessons Learned
OPPORTUNITIES
CHALLENGES
Incentivizes development of
unimproved/underutilized land in prime urban
locations
Can leverage property tax assessment
systems already in place
Can be an effective tool to spur revitalization
in areas affected by natural hazards
If adequately structured and implemented
can increase tax revenue providing
additional funds for public works
Might increase complexities of tax
administration
Needs technical capacity at municipal level
for maintaining advanced land cadaster and
land reassessment systems
Fiscal powers have to be devolved so that
municipalities could structure and impose
such a tax
39. Land Value Tax: Sampled Project
Project Description In 1989 the city of Mexicali diverted from conventional practice assessing a composite property tax on both land and
permanent structures and started taxing only the value of the land
This fiscal policy shift involved major changes in tax administration including changes in land assessment promoted by
consensus of representatives from real estate organizations and professional appraisal associations
Value Capture
Component
During the first periods of implementation the new taxing system allowed the Citi of Mexicali to increase property tax
revenue twofold generating additional revenue for infrastructure upgrades
Introduction of Land Value Tax in the City of Mexicali, Mexico
New tax rates were specified based on distance from pre-specified “high-value locations”. Separate flat-rate surcharges were
applied to residential and commercial lands.
This new tax policy waned out after changes in Mexicali’s municipal administration and the land value tax was eventually
terminated in the City of Mexicali. However, the positive results in the first years of land taxing in Mexicali prompted other
municipalities of the state of Baja California to implement land value taxing in their jurisdictions
40. Betterment Levies: Overview
DESCRIPTION
An additional tax/special rate levied to property owners within a specifically defined geographic area, which
is regarded as the main concentration of beneficiaries of respective publicly funded infrastructure upgrades
Betterment levies are also called special assessments in some countries
Application of betterment levy can be narrowed down to specific types of users or owners within the defined
geographic area, such as owners of large commercial building or owners who have an intent to develop in
the area and are seeking construction permit
Rate and length of time of the levy depends on when and how funding requirement is fulfilled
In contrast to Tax Increment Financing (TIF), betterment levy is applied to full assessed value, whereas in
TIF a special assessment applies to incremental property value increase.
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Systemwide fiscal regulations should allow special tax assessment and collection at municipal level
Robust property appraisal and land cadaster systems
41. Betterment Levies: Lessons Learned
OPPORTUNITIES
CHALLENGES
Generally allows to raise money off balance
sheet without increasing city-wide property
taxes
Tends to align costs of public improvements
with those who will benefit the most from
such improvements
Recurrent and reliable source of municipal
revenue
Less complex than TIF as another tax-based
LVC
Cost effective alternative to municipal
borrowing with no negative fiscal impact
Can be a legally complex and time-
consuming arrangement
Requires adoption of special fiscal
regulations that are out of control of
municipality
Administration of such tax may be costly
Delineation of special assessment area often
follows jurisdictional borders which causes
imperfection in allocation of cost to actual
beneficiaries
42. Betterment Levies: Sampled Project
Project
Description
Local Municipal Corporation is considering complex improvements on the banks of three rivers flowing through the
municipality (building embankments for flood protection, sewage treatment, desilting, landscaping, and enhancing
connectivity between the banks)
$18 million, concept stage – master planning works started in 2016
Recovery of municipal costs through charging flood premiums on top of construction permitting fees
Riverfront Development, Pune, India
Changes in town-planning codes proposed to allow development in the 25-year flood zones on condition of recovering a
flood premium from developers
Upfront costs to be covered by government and the municipal corporation
Flood premium is calculated as 25% of assessed value (“ready reckoner rate”) of land or real property in a respective
geographic area of the city
Value Capture
Component
Such flood premium to be administered by the Municipal Corporation and has to be utilized for riverfront development
43. Tax Increment Financing (TIF): Overview
DESCRIPTION
TIF provides an alternative to finance urban infrastructure in blighted and underdeveloped areas, unlocking
(private) development that wouldn’t otherwise occur in the absence of those up-front investments
TIF aims to capture and leverage estimated future revenues from incremental increases in collection of
property (or other) taxes within a geographically specified area of redevelopment, a “TIF district”.
Local governments use a debt instrument (bonds or loans) backed by the projected future tax revenue
within the TIF district. The debt instrument proceeds to pay for up-front investments such as land
acquisition, upgrade of water system, road improvements, or remediation of environmental contamination.
Up-front investments create the real estate market and economic conditions that lead to the incremental
increase in land value and tax revenue, which closes a virtuous cycle in which “growth pays for growth”
KEY REQUIREMENTS / IMPLEMENTATION FACTORS
Robust land cadaster, land assessment and tax administration capacity at the local level
Strong political backing to enabling legislation
Might require credit enhancement (e.g guarantees) from the city or the nation
Strong real estate markets maintaining enough demand and growth potential for high-density development
Relatively deep capital markets
44. Tax Increment Financing (TIF): Lessons Learned
OPPORTUNITIES
CHALLENGES
Not all cities, not at all times: it requires a
robust real estate market
Requires a strong cadastre and tax collection
system
It absorbs and restricts the use of future
revenues (the delta generated by
development)
It is vulnerable to national and local
economic crises, which creates repayment
risks
It requires a strong commitment of the city
beyond political cycles to ensue continuity of
economic development and TIF legislation
between administrations
It complements the traditional financing
instruments
If properly structured, TIF debt does not
affect the balance of the city
Maximizes private investment since it uses
financial structuring
TIF allows for greater private economic
investment without requiring infrastructure
investment by the city official books
Strengthens municipal management as it
requires high coordination between entities
Promotes the depth of capital markets in
municipal financing
45. Tax Increment Financing (TIF): Sampled Project
Project
Description
Value Capture
Component
Creating the first TIF in Latin America in Medellin, Colombia
Since 2011 the World Bank has provided technical advice to the Government of Colombia to support cities to structure &
take to market innovative land-based financial instruments that would leverage private finance for urban infrastructure.
The initiative thus far has focused on ascertaining the legal and financial feasibility of implementing a TIF operation of a
major urban renovation project in Medellin called the Innovation District
Preliminary results showed that the Innovation District would potentially benefit from use of TIF to fund catalytic
public infrastructure
The proposed urban development plan includes redevelopment of 184 hectares comprising four neighborhoods in
downtown Medellin, targeting to develop 1.6m m2 over a 12 year period, including 60,000 m2 of social housing
Legal feasibility analysis showed that Colombian legislation indirectly limits the use of incremental revenues by
restricting local administrations to securitize future revenues beyond their government periods (four years). With the
support of the Bank, the City of Medellin is currently in the process of developing the overall regulatory framework to
legally enable the use of TIF at the city level
If the project meets expectations (1.6 million m2), cash-flow analyses showed that the project has the potential to
increase tax revenue from the area by over 400% in peak years, which could potentially collect about US$45m in
revenue bonds, which would enable the city to fund 25% of projected up-front infrastructure requirements.
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