Emerging Value Capture Innovative Urban Rail Funding and Financing

Jillella, Satya Sai Kumar; Sitharam, T. G.; Matan, Anne; Newman, Peter

doi:10.4018/978-1-5225-0803-8.ch077

Cited by 1 publication

(1 citation statement)

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“…Urban rail agencies have attempted to recover operational and capital costs through farebox revenue whilst at the same time undertaking network expansion, operation and maintenance. But agencies have significantly struggled to even recover operating cost as farebox revenue is inherently limited due to equity demands (Jillella et al, 2016;Newman & Kenworthy, 2015;Newman, Glazebrook, & Kenworthy, 2013;Sharma, Newman, & Matan, 2015).…”

Section: Introductionmentioning

confidence: 99%

Land Value Capture Tools: Integrating Transit and Land Use through Finance to Enable Economic Value Creation

Sharma¹,

Newman²

2020

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Cities in the 21 st century are wanting urban rail linked to Transit Oriented Development (TOD) for economic, social and environmental outcomes. However, traditional sources of funding and planning governance are failing due to the limitations of government accessed capital and even where urban rail is built, TOD's are not always created due to a lack of integrative governance. This paper shows how private finance and expertise can be both the source of rail capital and the integrative governance force required for cooperative partnership-based TOD's. We call this TFUL-transit, finance and urban land development. A range of tools for land value capture (LVC) are outlined that are used to provide TFUL outcomes though some are better than others for creating economic value in the resulting TOD's. The differences are shown to be related to the need to integrate financial capital, political capital and social capital; in particular this is due to how much private investment and expertise is incorporated into the LVC process along with the usual community and government processes. Case studies from developed and emerging cities are outlined for each of the four groups of LVC tools: Fully Public: Land-Based Levies; Partially Private: Tax Increment Financing; Partially Public: Special Improvement Districts; and Fully Private: Entrepreneur Rail Development. The conclusions drawn from this analysis support the significance of private sector involvement from the concept stage for TFUL projects to enable wider economic value creation and land value capture opportunities.

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Section: Introductionmentioning

confidence: 99%