FHWA Center for Innovative Finance Support - Managing Economic Shocks to Value Capture-Funded Projects - Implications and Tools for Managing: A Primer

Managing Economic Shocks to Value Capture-Funded Projects
Implications and Tools for Managing: A Primer

March 2022

TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

Notice

This document is disseminated under the sponsorship of the U.S. Department of Transportation (USDOT) in the interest of information exchange. The U.S. Government assumes no liability for the use of the information contained in this document.
The U.S. Government does not endorse products or manufacturers. Trademarks or manufacturers’ names appear in this report only because they are considered essential to the objective of the document.

The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide information and clarity to the public regarding existing requirements under the law or agency policies. Value capture techniques and policies are often implemented outside of Federal funding or regulatory requirements.

Quality Assurance Statement

The Federal Highway Administration (FHWA) provides high-quality information to serve Government, industry, and the public in a manner that promotes public understanding. Standards and policies are used to ensure and maximize the quality, objectivity, utility, and integrity of its information. FHWA periodically reviews quality issues and adjusts its programs and processes to ensure continuous quality improvement.

Cover photos source: FHWA

TECHNICAL REPORT DOCUMENTATION PAGE

1. Report No.
FHWA-CIF$-22-0022

2. Government Accession No.

3. Recipient's Catalog No.

4. Title and Subtitle
Managing Economic Shocks to Value Capture-Funded Projects: Implications and Tools for Managing

5. Report Date
March 2022

6. Performing Organization Code
FHWA-CIF$

7. Author(s)
Sasha Page and Christine Shepherd, Rebel Group; Thay Bishop and Stefan Natzke, Federal Highway Administration

8. Performing Organization Report No.
FHWA-CIF$-22-002

9. Performing Organization Names(s) and Address(es)
Federal Highway Administration
Center Innovative Finance Support
1200 New Jersey Avenue, S.E.
Washington, D.C. 20590

10. Work Unit No.

11. Contract or Grant No.
IAA HW5NA2, Modification #5

12. Sponsoring Agency Name(s) and Address(es)
Federal Highway Administration
1200 New Jersey Avenue, S.E.
Washington, DC 20590

13. Type of Report and Period Covered

14. Sponsoring Agency Code

15. Supplementary Notes

16. Abstract
This Primer provides an overview on how economic shocks, such as those experienced during the Global Financial Crisis (GFC) of 2007-2009 and those caused by the COVID-19 Pandemic of 2020-2021, can affect value capture funding sources for transportation and other infrastructure and how to mitigate those shocks. Although no two economic shocks are the same, the Primer illustrates through real-world cases the various ways that economic shocks can affect value capture funding and be mitigated. While there is uncertainty on the full-extent of COVID-19's impact on real estate and value capture, the experience in the last two years provides useful data in planning for similar shocks when utilizing value capture techniques.Â The Primer also walks through various tools project planners can use to build more economic resilience into their value capture-funded projects.

17. Key Words

18.Distribution Statement
No restrictions

19. Security Classification of Report
Unclassified

18. Security Classification of This Page
Unclassified

19. No. of Pages
56

20.Price N/A

Form DOT F 1700.7 (8-72)
Reproduction of completed page authorized

ACKNOWLEDGMENTS

The Federal Highway Administration (FHWA) would like to express appreciation to the members of the Value Capture Implementation Team and acknowledges their valuable contribution of expertise and guidance throughout the development of this report

Managing Economic Shocks to Value Capture-Funded Projects Implications and Tools for Managing: A Primer

TECHNICAL REPORT DOCUMENTATION PAGE

ACKNOWLEDGMENTS

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Managing Economic Shocks to Value Capture-Funded Projects
Implications and Tools for Managing: A Primer