Transportation Research Board Demonstrates "Value" of Highway and Transit Value Capture


Panelists participating in the 2015 Transportation Research Board (TRB) annual meeting discussed how value capture (VC) approaches can create significant value in funding highway and transit projects. The panel, entitled “Funding and Financing Vital Corridors: A Workshop on the What, Why, How, and Who of Value Capture Methods,” was co-moderated by IMG Rebel’s Sasha Page.

Key points raised by panelists and moderators included:

  • VC techniques can be used in a number of modes and assets, including roads and highways; heavy and light rail; streetcars and likely bus rapid transit.
  • VC projects often involve the management of a number of public and private parties, including landowners, developers, and numerous local and state agencies.
  • The development of realistic forecasts of long-term real estate development is essential to a credible VC program.
  • The timing of real estate benefits of new infrastructure assets varies from before, during, and after the improvement is made. Also, the benefits may occur once or over a period of time as additional improvements are made and the market recognizes the full benefits of the asset.
  • VC mechanics can be complicated, including developing the appropriate assessment methodology, deciding whether both land and buildings should be assessed, and coordinating with municipal zoning, such as density rules.
  • Financing is key in fully leveraging transportation improvement benefits. This includes using state infrastructure bank instruments, tax increment finance financing, and/or special assessment bonds. 
  • VC projects raise public policy issues that are typical of large infrastructure projects, including the need for public outreach, the place of affordable housing, and the role of parks and open space.

Please contact Sasha Page for more information.