Applying a benefit principle, value capture strategies enable the public sector to harness the value created through infrastructure improvements and to use the funds to pay for such improvements. This article focuses on special assessments by which property owners located within a designated geographic area, or "special assessment district (SAD)," pay for special benefits accruing to their properties that are close to certain infrastructure improvement. The authors review the history of special assessments, the extent of use, and the mechanisms for funding public transportation especially transits. The authors then evaluate the applicability of special assessments in funding public transits on the basis of four criteria: efficiency, equity, sustainability, and feasibility. Finally, the authors discuss suitable conditions for special assessments and provide legal, administrative, and technical recommendations for their use in transportation finance. Keywordstransportation finance, transit-oriented development, value capture, special assessments Public Works Management & Policy 16(4) U.S. Department of Transportation, 1984). Finally, an environment where zoning allows higher-density development and infrastructure such as pedestrian plazas would encourage developers to support special assessments, where the improvement paired with high-density zoning provides them opportunities to generate more revenue (Cervero, 1994;Gihring, 2001).
Value capture strategies apply a benefit principle to public infrastructure investment by creating a mechanism to capture the value created by infrastructure improvements. This paper focuses on one value capture strategy, tax increment financing (TIF), which uses future increases in property taxes generated by infrastructure improvements to finance the initial costs of the development. This paper reviews the history of TIF, its extent of use, and its mechanisms. Then it evaluates the applicability of TIF as a revenue strategy based on four criteria: efficiency, equity, revenue sustainability, and feasibility. Finally, it provides recommendations on how to improve and expand the use of TIF.
Synthesizing relevant experiences in US and some Asian countries, this article reviews joint development as a value capture strategy for funding public transit. e review starts from the concept of joint development in transportation, its rationale, and the extent of use. We then provide a classification of joint development models with respect to ownerships and transaction methods. ese models are illustrated with case examples from multiple countries. Aer that, we assess the efficacy of joint development with a set of criteria for transportation finance evaluation, including economic efficiency, social equity, revenue adequacy & sustainability, and political & administrative feasibility. Finally, we conclude and provide recommendations for policy consideration.
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