Value Capture Defined
Transportation networks and urban land values are closely linked. Transportation improvements increase accessibility and thereby make surrounding locations more desirable. Transportation improvements often increase the value of nearby land, benefitting land owners and developers. Value capture techniques harness a portion of the increased property values in order to pay for the improvement or for future transportation investment. While value capture techniques are used more commonly with transit projects, they are also used to fund highway improvements. There are several different forms of value capture used in the United States. The most common include: air rights, impact fees, joint development, land value tax, negotiated exactions, sales tax districts, special assessments, tax increment finance, and transportation utility fees.
Note: These techniques may vary in their application and they may also be known by additional terms.