TABLE OF CONTENTS
LIST OF FIGURES
LIST OF TABLES
This Primer provides an overview on how economic shocks, such as those experienced during the GFC of 2007-2009 and those caused by the COVID-19 Pandemic of 2020-2021, can affect value capture funding sources for transportation and other infrastructure and how to mitigate those shocks. Although no two economic shocks are the same, the Primer illustrates through real-world cases the various ways that economic shocks can affect value capture funding and be mitigated. The Primer also walks through various tools project planners can use to build more economic resilience into their value capture-funded projects. Its primary goal is to help sponsors of value-capture-funded projects to understand:
Please note, at the time of writing, the Pandemic was ongoing and since then some of the observations related real estate market dynamics may have changed.
The Primer covers value capture techniques, examples of real estate impacts, and mitigation tools. The Primer begins with a review of value capture techniques in Section 3, discusses the impacts and implications of economic shocks on projects in Section 4, and finishes in Section 5 with a review of project tools to help mitigate and manage the impacts of economic shocks on value capture-funded projects.
In Appendix 1, the Primer provides details on two value capture cases that have experienced economic shocks, the Atlanta BeltLine and the Mosaic District. The Atlanta BeltLine is a walking, biking, and planned transit corridor within former railway right-of-way (ROW). The project is partly funded through tax increments and special assessments. The GFC significantly affected its development. The Mosaic District is a mixed-use development served by roads and highways with and some transit connections. Its infrastructure was funded with tax increment revenues and a special assessments backstop. The Primer also provides brief summaries of other relevant cases.
In Appendix 2, the Primer explores COVID-19’s impacts in greater detail especially on the office market, including how different categories of employees will be affected and residential location patterns.
