Value capture: can it work in the U.S.?

The concept of value capture -- a system for engaging private landowners in the financing of public improvements that increase the value of their property -- has been a longstanding area of interest at the Lincoln Institute. This week the publication Next American City has as its premiere Forefront article a comprehensive piece on the subject, Money Grab: How Cities Can Recapture Investments in Public Infrastructure, by journalist Mark Bergen, author of the Econometro blog for Forbes.
     Value capture is in use in Europe and Latin America -- the latter in the use of Certificates of Additional Construction Potential, or CEPACs, in cities like Sao Paulo, as Bergen explains. It hasn't caught on in quite the same way in the U.S., although as Lincoln Institute president Gregory K. Ingram points out, “We actually do a lot of value capture in the U.S. ... We just don’t use that term.” These policies include impact fees, licensing levies, inclusionary zoning policies, special assessment districts, tax-increment financing, public land leasing, and business improvement districts, to name a few.
     No discussion of value capture would be complete without a reference to Henry George, whose ideas about a single tax on land are aptly covered in the article. Also quoted is Nico Calavita, co-editor of our book Inclusionary Housing in International Perspective, which examines strategies in Europe and elsewhere to ensure affordable housing in new residential developments built by the private sector. Bergen covers value capture initiatives for infrastructure financing in the Bay Area, Chicago, and the Dallas-Fort Worth area, in the development of the rail project the Cotton Belt.
     Value capture was the subject of the Land Policy Conference in 2011, and the proceedings were published in the book Value Capture and Land Policies.

Online education gets a boost

     The Lincoln Institute's online courses that were available on the eTeach platform have been converted to Adobe Captivate and are now live on our website.
     The selection of self-paced distance education offerings includes two recent additions:
     -- Local Communities Adapating to Climate Change, adapted from a two-day course developed by Larry Susskind and Patrick Field at the Consensus Building Institute in collaboration with Steve Aldrich of Bio Economic Research Associates (bio-eraTM), and Paul Kirshen, at Battelle.  Using videos, interactive exercises, and self-assessments, the course introduces tools for climate change adaptation planning. assessing climate change risks, climate downscaling, collaborative decision-making, and scenario planning. Decision makers can use these practical tools for everyday land use, development, and infrastructure decisions to reduce vulnerability and enhance resilience.
     -- Practical Ecology, with Dan Perlman of Brandeis University in Waltham, Massachusetts, introducing key lessons from the sciences of ecology and conservation biology to help land use planners, developers, and members of planning boards manage the interface between humans and nature for the beneit of all parties. Incorporating ecological and conservation insights into planning and development will increase human health and safety, add to human pleasure, and help protect native species and ecosystems. By approaching our relationship with the natural world with care, we can receive tremendous beneit from the services and values that nature offers, avoid harm from pests and natural disaster, and function as good stewards of the lands we inhabit.
     The Institute's online education program now includes a total of 12 courses, on topics including taxation policy and economic development, the property tax, property rights, conservation easements, comprehensive planning, resolving land use disputes, and more.

Investigative journalism in Brazil

Latin America program director Martim Smolka participated in the 7th International Congress of Investigative Journalism last month in Sao Paulo, where more than 600 journalists and journalism students mixed with 130 speakers and presenters. His presentation, The Relevance of Land Markets for Urban and Social Housing Policies, explored issues including value capture, urban density, the provision of urban infrastructure and services, and windfall benefits to landowners in urban development.
     Paulo Henrique Sandroni, former planning director of Sao Paulo, added to the discussion by calling attention to the potential of increases in land value increments to be used for "in loco" (without displacement) upgrading of slums, and the provision of social housing alternatives. Sonia Rabello, a councilor of the Municipal Parliament of the City of Rio de Janeiro,noted the lavish distribution of land value increments in projects associated with the 2014 World Cup and the 2016 Olympics in Rio, and was critical of the development process for these mega-events in terms of favoritism to certain private parties, questionable guidelines, and displacement of established residents in some areas.
     The 2013 Congress in the fall in Rio is expected to be even more ambitious, together with the Global Investigative Journalism Conference and Latin American Conference of Investigative Journalism, and the Lincoln Institute plans to be there.

Gearing up for World Urban Forum VI

     The Lincoln Institute will have a delegation at the World Urban Forum VI at Mostra D’Oltremare in Naples, Italy September 1-6, engaging on topics from planning for climate change, housing policy and slum formation, and urban planning and infrastructure in global cities. The agenda includes:
     -- Networking Event: Urban Planning for Climate Change and Environmental Risk Reduction, with Armando Carbonell, Senior Fellow, Lincoln Institute of Land Policy, Monday, September 3, 2:30–4:30 pm
     -- Dialogue I: The Shape of Cities: Urban Planning Institutions and Regulations, Including the Improvement of Quality of Life, with Shlomo Angel, Visiting Fellow, Lincoln Institute of Land Policy, Tuesday, September 4, 9:00 am–12:00 pm
     -- Training Event: Achieving City Prosperity Through Land and Housing Policies that Prevent Slum Formation, Martim O. Smolka, Senior Fellow, Lincoln Institute of Land Policy, Tuesday, September 4, 9:00 am–12:00 pm
     -- Book launch for Planet of Cities and Atlas of Urban Expansion, with Shlomo Angel, Wednesday, September 5, 10:30 am–12 pm, Sardegna Room
     The presentation of Angel's research will be especially relevant as thousands of participants gather to better plan for major population growth in urban centers primarily in the developing world.  Half the world’s total population already lives in cities, and that urban population is expected to nearly double in the next 40 years from 3.5 billion to 6.2 billion people — nearly all in developing countries. When urban populations double, the areas required to accommodate them will more than triple.
     Angel and his team looked at patterns of urban expansion in 120 global cities over the last two centuries, and have taken that history and applied it to the realistic needs for major cities in the future. The recommendations include making adequate room for increased urban population growth, rather than emphasizing containment; providing an ample supply of urban land for decent affordable housing; and securing the land necessary for public streets, public infrastructure networks and public open spaces well in advance of development.
     An article exploring these recommendations, with a provocative comparison with the architect Le Corbusier and his ideas for the City for Three Million People some ninety years ago, was published last month at Citiwire.