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6. Concluding Remarks

Making B/E Case in Different Project Contexts

If main VC driver is..	Making B/E case for VC is about..
Major real estate development project	Determining public improvements needed to support the real estate development program and related land use Cost of these improvements define VC funding needs
Major infrastructure project (regional)	Establishing direct nexus between the infra project and real estate developments triggered by the infra project (e.g., shopping mall at hwy intersection, TOD at station) Rationale for this nexus is on "but-for" grounds
Public-private partnership (P3) project	If P3 project has real estate component in addition to infrastructure component (e.g., Long Beach Civic Center) Generating VC revenues on real estate side to defray public sponsor’s P3 payments on infrastructure side (which enhances real estate property value)

Concluding Remarks

1. VC is a local tool and using VC techniques to pay for major infrastructure projects with regional benefits is still limited.
2. However, VC is becoming increasingly important as local funding source for major infrastructure projects to complement traditional Federal and State sources.
3. Future VC approaches need to be more expansive, innovative, and precedent-setting to become meaningful and substantive infrastructure funding sources.

Questions?

 

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