Leveraging Land Development Returns to Finance Transportation Infrastructure Improvements

Project Description

Financing shortfalls for new transportation infrastructure and the maintenance of existing infrastructure paint a bleak picture. This research identified property value increases associated with transportation infrastructure, the assessment levels needed to recapture the costs of infrastructure improvements, and how these revenue streams may support investments in transportation infrastructure. Creating sustainable transportation funding requires additional sources based on capturing the returns from land development.

Property values closer to transportation infrastructures increased at a higher rate than property values farther away from transportation infrastructures. Using regional mobility authorities provides a possible answer to funding shortfalls if a mechanism such as tax-increment finance can capture and leverage the returns to land development. A regional mobility authority with the power to implement tax-increment finance with transportation as the focal point rather than a local development project is the best way to maximize the funding potential from capturing the returns to land development. This study will be used to enhance ongoing efforts at the state level, including a forthcoming professional training course as well as an academic course on public-private partnerships and funding.

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Link: Final Report

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