Joint development as a value capture strategy
I am working on several reports on value capture strategies, including joint development, tax incremental financing, and special assessment districts. Here is a draft of our joint development report, which will be expanded and revised throughout the coming months (updated 02/2011). Your comments and suggestions will be highly appreciated!¤
Over the years there has been growing concern about the shortage of public transportation investment in the US. One potential solution to alleviate the problem is through value capture, which aims to supplement transportation funding by partially recovering value gains that are associated with transportation improvements.
One particular strategy of value capture is joint development, a subset of public-private partnerships that involve private sector investment in the development of public transportation facility through formal contracts or agreements. In this project, we discuss the concept of joint development as a value capture strategy, and sort through commonly practices of joint development in the United States and some Asian counties.
Moreover, we apply a framework of revenue evaluation to assess the efficacy of joint development as a supplemental mechanism of transportation funding. In general, we find that a properly designed joint development project meet well with most of these principles: it can be both efficient and equitable, because the cost correlates well with benefits received; it may generate sustainable level of fund to supplement construction; it may be more politically acceptable than to raise other taxes; many examples of it has been proved to be administrable with careful preparation, design, and implementation (Word count: 200)