The 5277 Mineta Transportation Institute in the US has released its newest research report, Decision Support Framework for Using Value Capture to Fund Public Transit: Lessons from Project-Specific Analysis. The research investigates the viability of land "value capture" (VC) to help generate revenue for transit provision. Five VC mechanisms are evaluated in depth, including tax increment financing (TIF), special assessment districts (SADs), transit impact fees, joint developments, and air rights. The report includes policy recommendations. Principal investigators were Shishir Mathur, Ph.D., and Adam Smith, MUP. The free 200-page report is available as a <%$Linker:External 0 0 0 oLinkExternal PDF download here Decision Support Framework for Using Value Capture to Fund Public Transit: Lessons from Project-Specific Analysis Report false http://www.transweb.sjsu.edu/project/1004.html%20 false false %>.
"This report reviews five VC mechanisms ¬and evaluates the performance of each one through numerous case studies using several criteria," said Mathur. "These criteria include enabling legal environment, stakeholder support, institutional capacity, revenue yield, revenue stability, and equity. We also developed a decision-support matrix to help policy makers, local governments, and transit agencies decide which mechanism or which combination of mechanisms would meet their needs."
He noted that the US federal government has reinforced the need to integrate land use with transportation and to provide public transit. However, fiscal belt-tightening at all levels of government has made it more urgent to identify alternate funding sources for public transportation. He said funding transit is especially difficult because transit typically requires large subsidies. Value capture is one possible funding source. Based on the benefits received principle, VC captures public infrastructure-led increases in land value.
"This report reviews five VC mechanisms ¬and evaluates the performance of each one through numerous case studies using several criteria," said Mathur. "These criteria include enabling legal environment, stakeholder support, institutional capacity, revenue yield, revenue stability, and equity. We also developed a decision-support matrix to help policy makers, local governments, and transit agencies decide which mechanism or which combination of mechanisms would meet their needs."
He noted that the US federal government has reinforced the need to integrate land use with transportation and to provide public transit. However, fiscal belt-tightening at all levels of government has made it more urgent to identify alternate funding sources for public transportation. He said funding transit is especially difficult because transit typically requires large subsidies. Value capture is one possible funding source. Based on the benefits received principle, VC captures public infrastructure-led increases in land value.
