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Introduction to Special Assessments

February 2021
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8. Examples

Examples: California Irrigation Districts

Panoramic photo of water in a valley and a backdrop of mountains.

Source: Fresno Water District

Transporting Water to Fertile But Arid Valleys

  • The Wright Act of 1897 enabled the creation and operation of irrigation districts;
  • Initially, these irrigation districts were funded by user fees levied on the amount of water withdrawn from the canals.
  • Large estates next to the canals became valuable, but some owners contributed nothing because they were not farming and not withdrawing water.
  • The Wright Act was amended to require special assessments based on land value from all land benefiting from proximity to the canals. Benefiting lands included both farmland and nearby towns.
  • Revenues increased and were more equitably distributed among beneficiaries.
  • Special assessments motivated the intensive cultivation of nearby land.

Examples: NoMA Transit Stations & Streets

Screenshot of overhead view of New York and Florida avenues from Google Earth

Source: Google Earth

Development-Oriented Transit

  • The aerial photo on the right is from 2000. Owners of vacant land wanted to develop office buildings. But permits were denied because the only access was via over- crowded arterial streets.
  • Landowners petitioned the District Government to construct a transit station nearby to facilitate development.*
  • The District Government was in receivership and refused to proceed unless the landowners contributed significantly to the project.
  • Landowners offered $25 million (about 1/3 of the estimated initial cost). The District Government issued a $25 million bond. The nearby landowners are paying it off over 20 years through a special assessment that was enacted with their support. (Pre-existing residential properties were exempted.)

Development-Oriented Transit (continued)

Aerial view of DC

  • The aerial photo on the right is from 2019. The new transit station is near the center on the left side of the tracks.
  • New street segments to the east and south of the new Bureau of Alcohol Tobacco & Firearms were paid for by the adjacent landowners because they primarily provide access to those properties.
  • As of 2021, most of the vacant land in this photo near the new transit station has been developed. Old warehouses (east of the tracks) are being redeveloped.
  • Special assessment payments, based on land value, encourage development.
  • For more info, see NoMa-Gallaudet U Metro Station: Success Built on Transit by ULI Washington.

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