Investment in infrastructure three pillars of city resilience

land market	Lack of land use controls and regulations	Deficient land Cadaster / records	Insecure property rights	Limited access to capital markets
Non-devolved fiscal powers
Impact fees / Exactions
Betterment levies
Leveraging public assets
Land pooling / readjustment
Sale of development rights
Land value tax
Tax Increment Financing

LVC tools
LVC
Challenges
Prohibitive challenge
(regulatory / systemwide
changes are prerequisite)
Significant challenge
(regulatory/legislative changes required in certain conditions)
Limited systemwide arrangements needed. Respective implementation terms can be set at deal level
APPENDIX
SELECTED LAND VALUE CAPTURE INSTRUMENTS

• Negotiated Exactions
• Impact Fees
• Leveraging Public Assets
• Sale of Development Rights
• Land Pooling/Readjustment
• Land Value Tax
• Betterment Levies
• Tax Increment Financing

Negotiated Exaction: Overview
INVESTMENT IN INFRASTRUCTURE
DESCRIPTION

• In-kind (land, improvement) or cash contribution by a developer to foster infrastructure upgrades related to a proposed real estate project (to that end, Exactions are similar in principle to Impact Fees).
• It typically works as a payment for building exemptions (higher land use, density, or eased construction norms) or other forms of development-enabling certifications.
• In contrast to Impact Fees (that are applied systemwide on a formula basis), Exactions are typically applied case by case through a vis-a-vis negotiated transaction.