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Value-capture finance

No change in size, 19:06, 13 February 2012
Negotiated exactions
Negotiated exactions are similar to development impact fees, but negotiated on a case-by-case basis rather than set as a policy and determined through a formula.
===Joint development===<div id="Joint developmentJointdevelopment"></div>
Joint development is real estate development on publicly-owned property in conjunction with a fixed-route transit facility. Some of the proceeds from the joint development project are used to finance the transit facility. This strategy can be especially effective in raising money for transit for several reasons. First, new developments can capture significant funds relatively quickly if a property is developed and sold within a few years of a transit facilities opening. This increases bonding capacity by bringing revenues forward versus other assessment mechanisms. Second, joint-developments can be well-integrated with the transit system, potentially with portals that open directly into the developments. Third, public entities often accumulate property adjacent to transit facility construction for staging and other purposes. By increasing density of these properties and orienting the property to the transit facility, the public can capture value far in excess of any other financing mechanism. Joint development is widely utilized by MTR Hong Kong to minimize public subsidy required for new transit facilities.
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