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Presentations and Materials for Texas Value Capture Techniques Peer Workshop

 

Federal Highway Administration (FHWA) EDC5: Value Capture

Dates: December 4-5, 2019

Workshop Host: Federal Highway Administration &Texas Department of Transportation

Workshop Location: Omni Hotel Southpark, 4140 Governors Row, Austin, Texas

Length of Workshop: 1.5 days in coordination with the Texas STIC meeting (being held the afternoon of December 5)

Workshop Purpose: To promote Everyday Count Fifth Round (EDC-5) Value Capture Strategies to the state, local, and metropolitan planning organization and tribal government as a supplement traditional funding sources to accelerate project delivery, enhance safety, save time, and money. Learn how to apply value capture techniques and methodologies appropriate for the State of Texas. Potential value capture techniques include: Transportation reinvestment Zones, Joint Development, impact fees, Sales Tax Districts, and other Value Capture Strategies

Format:

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

Facilitator: Terry Regan, USDOT Volpe Center

Moderator: Rafael Aldrete, TTI, Value Capture consultant

Presenters:

  • Terry Quezada, Horizon City
  • Liane Miller, City of Austin Transportation Department
  • Ray Dovalina, City of Phoenix

Julie De Hoyos, Texas DOT Strategic Contracts and Project Financing

Day 1: Wednesday, December 4, 2019
Time Topic Presenter

8:30 a.m.

Welcome and Overview

Facilitator welcomes attendees, reviews the agenda, describes documentation/follow-up, and establishes ground rules for discussions.

TxDOT; FHWA & Volpe Facilitator

9:00 a.m.

Value capture vision from the State and Regional Perspective

Welcome and discussion of value capture uses and potential from the Federal, State, and Regional perspective. This includes an introduction to the potential that value capture techniques that may have for Texas MPOs, municipalities, and other transportation agencies.

  • Introduction of the EDC5 value capture program by Stefan Natzke, Team Leader, National Systems and Economic Development Team, FHWA Office of Human Environment
  • Welcoming remarks from FHWA-Texas division leadership
  • Discussion from Texas DOT representative about the current and potential uses of value capture in Texas
  • Discussion from the Association of Texas Metropolitan Planning Organizations on uses of value capture at the regional level.
  • Stefan Natzke, FHWA
  • Kirk Fauver, FHWA-Texas
  • Peter Smith, TxDOT
  • Ashby Johnson, TEMPO

 

10:30 a.m.

Break

 

10:45 a.m.

Value capture techniques overview and applicability in Texas

Detailed overview of value capture techniques that are currently used and those that may be suitable in the future within Texas. There will be an opportunity for participants to discuss those areas they are most interested in hearing about.

Presentation:

  • Overview of Value Capture Techniques (PDF) – Rafael Aldrete, TTI

Rafael Aldrete, TTI

11:45 a.m.

Lunch

 

12:30 p.m.

Transportation Reinvestment Zones (TRZs)

This session will provide an overview of transportation reinvestment zones, a value capture technique currently used in Texas. The discussion will cover the role and perspective of TxDOT at the state level, as well as the experience with the utilization of the technique from a local government perspective.

  • The role of TRZs in Texas transportation funding and TxDOT’s role in facilitating their use.
  • Utilizing TRZs at the city level- Town of Horizon City
  • Discussion and potential applicability of TRZs by participants

Presentations:

  • Tax Increment Financing / Transportation Reinvestment Zones (PDF) – Rafael Aldrete, TTI
  • Dallas Property Value Growth Rate Map 2013-2016
  • Transportation Reinvestment Zones: The role of TRZs in Texas transportation funding (PDF) – Julie De Hoyos, TxDOT
  • Utilizing TRZs: Town of Horizon City; Eastlake Extension - Phase 2 (PDF) – Terry Quezada, Horizon City
  • Rafael Aldrete, TTI
  • Julie De Hoyos, TxDOT
  • Terry Quezada, Horizon City

2:00 p.m.

Break

 

2:15 p.m.

Joint Development

  • Overview of joint technique and its applicability to Texas
  • Capitol Crossing – a Community Revitalization Project on I-395
  • Discussion and potential applicability by agencies

Presentation:

  • Joint Development (PDF) – Rafael Aldrete, TTI
  • Klyde Warren Park (ODF) – Rafael Aldrete, TTI
  • Rafael Aldrete, TTI
  • TxDOT staff

3:45 p.m.

Wrap-up and charge for day 2

Solicitation from participants of key take aways from day 1 and the identification of potential technical assistance that would be useful in aiding agencies in exploring the uses and implementation of value capture. Discussion includes:

  • FHWA has developed a Value Capture Implementation Manual. The FHWA Value Capture Implementation Team is looking for any additional information that would benefit you in implementing Value Capture.
  • What tools would you suggest or recommend be developed to help the FHWA Value Capture Implementation Team and others to promote Value Capture strategies to State DOTs and LPAs (City, County, Township, Tribal Government)?
  • What is the best approach for providing technical assistance to State and LPAs on Value Capture strategies?
  • Do you have any suggestions for implementing future value capture strategies?
  • What are the barriers to implementation of possible value capture strategies?

Facilitator

4:30 p.m.

End of day 1

 

 

Day 2: Thursday, December 5, 2019
Time Topic 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

Facilitator

8:45 a.m.

Impact Fees/Developer Agreements/Sales Tax Districts

  • Overview of technique and its applicability to Texas
  • City of Austin Street Impact Fees
  • Sales Tax Districts – Phoenix’s experiences with funding public infrastructure.
  • Discussion and potential applicability by agencies

Presentations:

  • Impact Fees/Developer Contributions and Sales Tax Districts (PDF) - Rafael Aldrete, TTI
  • City of Austin: Street Impact Fees (PDF) - Liane Miller, City of Austin
  • City of Phoenix Impact Fee & Sales Tax (PDF) - Ray Dovalina, City of Phoenix
  • Rafael Aldrete
  • Liane Miller, City of Austin
  • Ray Dovalina, City of Phoenix

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

Facilitator

11:30 a.m.

Wrap-up, Follow-up Actions and Adjourn

Facilitator

12:30 pm

Texas STIC meeting attendees will begin arriving at 12:00 noon and the STIC meeting will begin at 12:30 pm in the same room.

 

 

Resources

 

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.