What is Value Capture
Value capture is the process of capturing some of this land value increase and this value that is captured is then used to finance transportation projects, sharing the cost burden of transportation infrastructure. Unlike the concepts of value creation and value realisation, value capture is a poorly defined concept and can mean a number of different things depending on situation.
Experiences in value capture can vary from place to place and there are as many similarities as there are differences. Loosely it is the process of capturing whole or part of the value realisation that occurs when transportation access increases the value or development capability of land. Broadly, value capture is able to be achieved through direct taxation as one off fees, levies or ongoing special taxation; developer extraction, or through land asset management.
This can be broad reaching and district wide or can be land parcel specific. As such there is a myriad of different application methods and approaches, and this is where complexities about defining value capture stem from.
In some cases, value capture methods and approaches are able to generate significant funds that contribute towards project costs; others can even go above and beyond the costs of projects and be recycled back into funding pools to create further infrastructure and subsequent value uplift.