TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
Ad valorem - An ad valorem tax is "a tax that is calculated according to value of property, based on an assigned valuation of a piece of real estate or personal property." In general, ad valorem tax increases (e.g., property tax) require stricter voter approval requirements than those that are not ad valorem tax (e.g., special assessments or tax surcharge).
Availability payment - Regular annual payment to the private concessionaire of a public-private partnership (P3) by the public project sponsor for the P3 term conditional on the availability of the facilities at the service level committed by the concessionaire.
Buffer zone - An area that is impacted by the existence of transit facilities and amenable for transit-oriented developments (TODs).
Buildout scenario - Maximum development potential that could be accommodated at a given value capture (VC) opportunity area (OA) based on maximum allowable densities by land uses consistent with the local general plan (GP) and specific plan (SP) linked to that OA.
Essential nexus - A test required to establish a direct cause-effect relationship between the proposed project and the exaction imposed on property owners and/or developers to pay for the public improvements needed by the project.
Exaction - A financial burden or other requirements a local government places on a developer to pay for all or a portion of the public improvements needed for the developer's project as a condition of project approval.
Floor area ratio (FAR) - Density measure for commercial and industrial uses calculated based on building area divided by land area for a given parcel.
General plan (GP) - Alternatively referred to as a Comprehensive Plan or Master Plan, a broad planning guideline to a city's or county's future development goals providing policy statements to achieve those development goals.
Residual tax rate - Tax rate below the maximum statutory rate that has yet to be applied, which is calculated by subtracting both the ad valorem general tax rate and all other currently effective special taxes from the maximum rate.
Revenue risk (or demand risk) - Risk taken by a P3 concessionaire dealing with its ability to generate project revenues from third-party users and its need to maintain the user demand levels to generate the revenues.
Rough proportionality - A test required to prove the need for the exaction amount from developer and/or property owner be roughly proportional to the impact created by the project.
Specific plan (SP) - A comprehensive planning and zoning document for a defined geographic region that implements the GP by providing a special set of development standards applied to that particular region.
Tax rate area (TRA) - Specific geographic areas with different tax rates that reflect different ad valorem tax allocations from the State and different voter-approved special tax rates relevant to local jurisdictions where the TRA is located.
Transit-oriented development (TOD) - High density developments in urban areas that maximize the amount of residential, business, and leisure space within walking distance of public transit system.
Turnover - A change in property ownership that triggers a reassessment of the property, which can result in assessed value increases that are over the statutory limit.
VC buildout scenario - See buildout scenario, above.
VC catchment area - Specific geographical extent or boundary of VC opportunity area; the higher the opportunity and growth potential, the larger the boundary.
VC opportunity area - Area where the value capture opportunity is relatively high; typically represented by a "node" where there is high growth potential, such as a major highway intersection or a major transit station.
VC propensity factor - Degree to which a given area can accommodate VC opportunities based on locational characteristics–e.g., urban areas that already have high-density, high-value properties have greater propensity than rural areas that are low density with low-value properties.
