Investment in infrastructure three pillars of city resilience

Impact Fees: Sampled Project
INVESTMENT IN INFRASTRUCTURE
Project Description
In late 1990s Santiago metropolitan region started expanding north in the Chacabuco province with 14 major real estate projects approved (primarily housing), adding 40,000 new households to the metro region.
The new housing projects were to be built on agricultural land lacking urban infrastructure services. Most notably the new urban districts were lacking connectivity to Santiago’s urban core. To address that, a 21-km radial highway connecting to central Santiago was to be built with additional 41-km of byways and interchanges.
The total cost of new road network development was estimated at US$106 million.
Value Capture Component
National government took the upper hand in planning, organizing a builder concession and structuring funding that comprised 39% government funding and 61% coming from developer impact fees.
The impact fee formula implied a cash charge levied per buildable housing unit. The fee varied based on each project’s formalized impact on regional road network: location relative to new road, project size, and estimated travel demands.
The impact fee averaged about US $1,600 per housing unit.
New highway to connect sprawled development with urban core, Santiago, Chile
Leveraging Public Assets: Overview
INVESTMENT IN INFRASTRUCTURE
DESCRIPTION

• Disposition of publicly-owned assets (land, buildings) to a private developer whereby value is realized either directly (e.g. sale proceeds) or through creation of future development value or socioeconomic benefit
• Depending on market conditions and a specific deal structure such disposition may come through direct arm’s length sale, auctioning, lease, or conveyance/below-market sale as a form of in-kind contribution to developer equity or for infrastructure or amenity provision
• The asset may be disposed either in “as is” condition (if it immanently represents tangible value to the private-sector partner) or following some initial investment by government