economics - benefits, economics - value capture, place - australasia
value capture, transport infrastructure expansion, developer charges, financial innovation
Financial Innovation is the key to unlocking the future potential of mass transit in Australia. This paper takes an initial look at the potential role of value capture and other innovative measures in underpinning transit infrastructure expansion. Value capture is a technique for delivering some of the real estate and other positive economic impacts created by mass transit back into the funding cycle for transit itself. Practical application of value capture has traditionally rested on three basic strategic or administrative options – joint development revenues, tax increment financing, and benefit assessment districts. In the Australian context, another potential option seems to be presenting itself, via the improved application of already-levied developer infrastructure charges into transit enhancements. The revenue streams created by these various options can also potentially be leveraged against the issue of bonds for acceleration of infrastructure delivery – and this concept, particularly in the Australian context, is treated as an “innovation” in itself. This paper reviews some of the basic prospects for value capture and financial innovation for future transit infrastructure provision within Australia - set against a benchmarking of the level of funding that innovative financial mechanisms have provided to selected transit infrastructure projects internationally in recent times.
Miller, M., & Hale, C. (2011). Innovative Finance for New Rail Infrastructure. Conference paper delivered at the 34th Australasian Transport Research Forum (ATRF) Proceedings held on 28 - 30 September 2011 in Adelaide, Australia.