As the studies clearly bring out, value capture can finance development across various landscapes - greenfield development to urban renewal. The mechanism can be used to Finance urban and regional transport as in the case of Hong-Kong Promote mixed use development Provide affordable housing Drive business, skill and innovation programs e.g. Barcelona Include informal economy in formal plans eg. Dhobhi ghat (washing area) in Ahmedabad Enhance service delivery and clean energy initiatives, Improve public spaces e.g. Sabarmati Riverfront Development Project Cultural restoration Scope for urban renewal/redevelopment City developments plans/institutional arrangements need to be carefully evaluated based on rate of return to provide optimum benefits to public and private stakeholders. This can ensure public support and adoptability of such models. Challenges Poor administration & Lack of planning expertise Planning expertise is required for identifying land parcels and realizing the benefits from value capture scheme to make infrastructure development self-financing. Lack of planning expertise and inefficient land management can adversely affect land markets making value capture difficult. Sensitivity to market conditions Land values are linked to several factors including use, transport linkage, access to facilities, recession and speculative markets among others. Careful analysis of land markets is of utmost importance for value capture. In cases where future value of land is offered as collateral for loans/ return on private investments, bubble burst can jeopardize project delivery. Other
As the studies clearly bring out, value capture can finance development across various landscapes - greenfield development to urban renewal. The mechanism can be used to Finance urban and regional transport as in the case of Hong-Kong Promote mixed use development Provide affordable housing Drive business, skill and innovation programs e.g. Barcelona Include informal economy in formal plans eg. Dhobhi ghat (washing area) in Ahmedabad Enhance service delivery and clean energy initiatives, Improve public spaces e.g. Sabarmati Riverfront Development Project Cultural restoration Scope for urban renewal/redevelopment City developments plans/institutional arrangements need to be carefully evaluated based on rate of return to provide optimum benefits to public and private stakeholders. This can ensure public support and adoptability of such models. Challenges Poor administration & Lack of planning expertise Planning expertise is required for identifying land parcels and realizing the benefits from value capture scheme to make infrastructure development self-financing. Lack of planning expertise and inefficient land management can adversely affect land markets making value capture difficult. Sensitivity to market conditions Land values are linked to several factors including use, transport linkage, access to facilities, recession and speculative markets among others. Careful analysis of land markets is of utmost importance for value capture. In cases where future value of land is offered as collateral for loans/ return on private investments, bubble burst can jeopardize project delivery. Other