(Center Identification Number: 79050-02-C)
As Federal and State capital support for fixed guideway projects has become more uncertain, project sponsors have been forced to look for alternate sources of funds. One of those sources is a group of tactics commonly referred to as value capture. There are several tactics by which project sponsors can capture value created by transportation facility expansion and/or renewal. Many projects, both domestic and foreign, have attempted to use value capture tactics to help fund transportation improvements. This project seeks to answer one question:
How can a mature rail transit system better blend its investment in its fixed guideway system with community development plans adjacent thereto and value capture strategies to help induce the best development outcomes and thereby maximize the value capture return to the transit authority to help finance the infrastructure investment?
In order to answer this question this project will examine three different aspects of value capture as it pertains to rail facilities. First, the actual methods of value capture will be delineated via an in-depth literature review. Said methods will be defined and assigned categories for the purpose of aiding in the second phase of the study: case studies of domestic and international projects utilizing value capture tactics to fund transit improvements, both reinvestment in existing systems and in system expansions. Finally, our project team will endeavor to identify the necessary steps and conditions required to implement a value capture strategy with emphasis being placed on the importance of intergovernmental cooperation and steps to eliminate the current disconnect between community development planners/the community at large and developers necessary for value capture arrangements to achieve success.
1) A literature review covering two main concepts:
a. Value capture methods and best practices
b. Theories on integration of transit capital planning and economic/community development plans and joint implementation of both plans.
2) Case studies of foreign and domestic projects that have attempted to implement value capture strategies particularly where there is an effort to coordinate transit investments and economic/community development plans.
3) Application of theories and best practices from the literature review to foreign and domestic case studies. This process will help us further evaluate success or failure of value capture in case study projects. In addition, it will also allow our team to formulate some strategies for planning, community and developer coordination that do not exist in the literature currently.
4) Recommendation of new strategies based on findings in our application phase. This will include preparing a comprehensive project report aside from the individual reports created for each of the previous phases.
Our fourth project phase will consist of recommendations for value capture strategies as well as community and stakeholder coordination. Although our focus is on cities that have documented state of good repair issues we will address value capture strategies for both rehabilitation and expansion projects. The portion of our report covering community and stakeholder coordination will produce suggestions for best practices in implementing and managing value capture systems and will attempt to cover all involved parties for typical projects. In addition our team will address issues associated with double taxation and inequity that are possible in hastily planned value capture systems.
Deliverables will consist of a final report as well as interim reports for the first three steps above. Students from the College of Urban Planning and Public Affairs will work on this project along with the Pl and Co-Pl. Specifically one student each from the Urban Transportation Center and the Nathalie P. Voorhees Center for Neighborhood and Community Improvement will be assigned to the project. Our project timeline is attached.
08/01/2012 to 01/31/2014
Total Project Cost $89,265