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Presentations and Materials for Illinois Value Capture Techniques Peer Exchange

 

Federal Highway Administration (FHWA) EDC5: Value Capture

Dates: September 17-18, 2019

Exchange Host: Illinois DOT & Chicago Metropolitan Agency for Planning (CMAP)

Exchange Location: CMAP, 233 South Wacker Drive, Suite 800, Chicago, IL

Length of Exchange: 1.5 days

Value Capture Peers:

  • Raymond Telles, Camino Real Regional Mobility Authority
  • Scott Hamwey, MassDOT
  • Brent Riddle, Fairfax County
  • Gregg Hostetler, Consor Engineers

Subject Matter Expert: Julie Kim

Format:

  • Brief presentations by value capture implementers
  • Facilitated discussion among all participants with emphasis on hearing from participants what is most applicable for the Chicagoland region and what are some potential barriers.

Purpose of the event:

This FHWA EDC5 outreach effort is to provide a discussion with interested parties on the potential benefits of value capture techniques and to provide examples of how these techniques have been applied nationally. Information on FHWA's EDC5 value capture effort can be found at: https://www.fhwa.dot.gov/innovation/everydaycounts/edc_5/value_capture.cfm

Day 1:

Time Topic Lead Presenter
8:30 a.m. Welcome and Overview:
  • Welcome message from the CMAP representative and FHWA Illinois division representative
  • FHWA provide a brief EDC-5 Value Capture Innovation & Benefits
  • Facilitator welcomes attendees, reviews the agenda, describes documentation/follow-up, and establishes ground rules for discussions.
Terry Regan (Facilitator)
Erin Aleman , CMAP Executive Director
FHWA Illinois Division representative
Stefan Natzke, FHWA
8:50 a.m. IDOT and CMAP overview of current activities and desired outcomes for the peer exchange Sam Beydoun, IDOT
Elizabeth Schuh, CMAP
9:15 a.m.

Value capture techniques and facilitated discussion

  • Presentation and overview of value capture techniques that are well suited to urban & suburban areas including municipalities, and other transportation agencies
  • Presentation:
Julie Kim, Subject Matter Expert
10:00 a.m. Break
10:15 a.m.

Value Capture Enablers: Tax Increment Financing and Transportation Reinvestment Zone

Terry Regan (Moderator)
Julie Kim, SME
Elizabeth Schuh, CMAP
Raymond Telles, CRRMA
11:45 a.m. Lunch  
12:30 p.m.

Special Taxes and Fees (Special Assessment Districts, Improvement Districts, Transportation Utility Fees)

Terry Regan (Moderator)
Julie Kim, SME
Brent Riddle, Fairfax County
2:00 p.m. Break
2:15 p.m.

Developer Contributions (Impact Fees, Other In-Lieu Fees, Negotiated Exactions)

  • Overview of technique and its applicability to urban and suburban areas
  • Osceola County
  • Discussion and potential applicability by agencies
Terry Regan (Moderator)
Julie Kim, SME
Gregg Hostetler, Consor Engineering
Scott Hamwey, MassDOT
3:45 p.m. Wrap-up and charge for day 2
  • Identification of key take-aways from Day 1
  • Identification by participants about topics to explore during Day 2
Terry Regan (Facilitator)
4:30 p.m. End of day 1

Day 2:

Time Topic Lead Presenter
8:30 a.m. Welcome and Overview of the Day
Facilitator welcomes attendees, reviews the key take aways from Day 1 and provides context for Day 2
Terry Regan (Facilitator)
8:45 a.m.

Joint Developments and Others Tools Based on Development Rights and Entitlements

  • Overview of technique and its applicability to urban areas
  • Massachusetts DOT air rights development (Mass Turnpike parcels)
  • Boston Landing and Assembly Square, Boston
  • Naming Rights solicitation by the MBTA
  • Discussion and potential applicability by agencies
  • Presentations:
Terry Regan (Moderator)
Julie Kim, SME
Scott Hamwey, MassDOT
10:30 a.m. Break
10:45 a.m. Discussion, Identification of Key Take Aways, and Next Steps
  • Discussion of applicability, opportunities and barriers of value capture techniques identified
  • Discussion of other potential tools to use in conjunction with value capture
  • Next steps
Terry Regan (Moderator)
12:00 p.m. Wrap-up & Follow-up Actions Terry Regan (Facilitator)
12:30 p.m. Adjourn

Resources

  • Value Capture Factsheet: PDF   |   HTML
  • CMAP In-Region Value Capture One-Pager: PDF  |  HTML
  • Value Capture Tool Summary: PDF   |   HTML
  • Value Capture Project Case Examples: PDF   |   HTML
  • Illinois Value Capture Peer Exchange Report: PDF   |   HTML

Overview of Value Capture Categories, Techniques, and Definitions

Category Technique Definition
Developer Contributions Impact Fees Fees imposed on developers to help fund additional public services, infrastructure, or transportation facilities required due to the new development.
Negotiated Exactions Negotiated charges imposed on developers to mitigate the cost of public services or infrastructure required as a result of the new development.
Transportation Utility Fees Transportation Utility Fees Fees paid by property owners or building occupants to a municipality based on estimated use of the transportation system.
Special Taxes and Fees Special Assessment Districts Fees charged on property owners within a designated district whose properties are the primary beneficiaries of an infrastructure improvement.
Business Improvement Districts Fees or levies charged on businesses within a designated district to fund or finance projects or services within the district's boundaries.
Land Value Taxes Split tax rates, where a higher tax rate is imposed on land than on buildings.
Sales Tax Districts Additional sales taxes levied on all transactions or purchases in a designated area that benefits from an infrastructure improvement.
Tax Increment Financing Tax Increment Financing Charges that capture incremental property tax value increases from an investment in a designated district to fund or finance the investment.
Joint Development At-grade Joint Development Projects that occur within the existing development rights of a transportation project.
Above-grade Joint Development Projects that involve the transfer of air rights, which are development rights above or below transportation infrastructure.
Utility Joint Development Projects that take advantage of the synergies of broadband and other utilities with highway right-of-way.
Naming Rights Naming Rights A transaction that involves an agency selling the rights to name infrastructure to a private company.