Investment in infrastructure three pillars of city resilience

Betterment levies / special assessment	Public sector taxes away a portion of land-value gain resulting from publicly funded infrastructure upgrades
Riverfront in Pimpri-Chinchwad (India); $2 bln levied during 1997-2015 in Bogota (Columbia) to fund city-wide road/bridge upgrades
Tax Increment Financing (TIF)	TIF aims to capture and leverage estimated future revenues from incremental increases in collection of property (or other) taxes within a geographically specified area of redevelopment, a “TIF district”	Colombia and South Africa are currently piloting TIF. “Proxy” TIF in Greater Hyderabad (India) where conventional loans were originated to fund infrastructure projects and set to be refinanced with property tax gains

A wealth of value capture techniques established in practice, can be classified based on the nature and timing of “value-capturing charges”
INVESTMENT IN INFRASTRUCTURE
Tax-based vs. Fee-based vs. Incentive-based

• Tax-based: betterment levies, special assessment, TIF, land value tax
• Fee-based: exactions, sale/lease of public land, sale of development rights
• Incentive-based: land pooling/readjustment, density bonus, negotiated land sale/lease with development conditions, joint development with public land as equity

Value capture timing (one-time vs. recurring; upfront vs. upon completion)

• One-time charges: exactions, sale of development rights, betterment levies, public land sale, land pooling/readjustment (upfront land contribution)
• Recurring charges: TIF, land value tax, special assessment
• Either-or: public land lease

Relevance of LVC tools may vary depending on the implementation conditions of each context (table below only indicative)
INVESTMENT IN INFRASTRUCTURE

Unestablished