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 much 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 P3 private concessionaire by the public project sponsor for the P3 term conditional on the availability of the facilities at the service level committed by the concessionaire
Brownfield - As used in this Primer, an abandoned, idled, or underused industrial or commercial facility where expansion or redevelopment is complicated by real or perceived environmental contamination
Buffer zone - An area that is impacted by the existence of transit facilities and amenable for transit-oriented developments (TODs)
Community benefits movement - Triggered by the emergence of CBAs and in response to the widespread inequities of urban development, a movement that involves organizing diverse interest groups to obtain a common set of demands and community benefits from public officials and private developers
Downside risk - Financial risks associated with losses
Essential nexus - A test courts have 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
First source hiring - A hiring practice that gives economically disadvantaged or other specially designated individuals the first opportunity to apply for entry-level jobs
General Plan - Comprehensive planning guidelines to a city's or county's future development goals; provides policy statements to achieve those development goals (alternatively referred to as Master Plan or Comprehensive Plan)
Gentrification - Housing, economic, and other factors that affect a community's history and culture and shift a neighborhood's characteristics, often resulting in unfairly displacing poor and disadvantaged individuals
Inclusionary housing - Local policies that tap the economic gains from rising real estate values to create affordable housing for lower income families; e.g., requiring developers to sell or rent 10 to 30 percent of new residential units to lower-income residents
In-lieu fees - Fees paid by a project proponents (developer) to mitigate project impacts; most common being impact fees and linkage fees–impact fees to pay for additional public improvement capacity necessitated by the developer's project and linkage fees to cover the cost of wider negative impacts such the need for affordable housing due to displacement
Police power - The capacity of the States to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants
Regulatory taking - Occurs when government improperly imposes regulations (such as zoning) that limit the owner's use of that property or exactions or fees on a specific group to pay for improvements that benefit not only the group but the public at large
Revenue risk (or demand risk) - Risk taken by 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 that proves the need for the exaction amount from developer and/or property owner is roughly proportional to the impact created by the project
Specific Plan - Comprehensive and zoning document for a defined geographic area within a city; implements the city's General Plan by providing a special set of development standards applied to that area
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
Upside risk - Potential for an asset or investment to increase in value beyond expectation
Vested right - A property owner's irrevocable right to develop his or her property that cannot be changed by future growth restrictions or other regulatory reversals
