Authors: Minjee Kim*, Florida State University
Topics: Urban and Regional Planning
Keywords: Value capture, upzoning, exaction, land use regulation, real estate development
Session Type: Paper
Presentation File: No File Uploaded
“Value capture” refers to the idea that when certain government interventions increase values of privately-owned properties, governments can ask the property owners to make contributions to benefit the public at large, such as assistance for affordable housing, open space, and infrastructure improvement. However, empirical studies that have analyzed the value increases from public interventions are rare. This research project 1) investigates how two types of government actions—capital investments and zoning changes—impact the values of future real estate development opportunities and 2) develop recommendations regarding how local governments can leverage land use regulation power to extract valuable public benefits from private real estate developments. Two cases will be analyzed, each representing one type of value capture opportunity. The first case is Citrus County, where the Suncoast Parkway is currently being built. Phase 1 is scheduled to be completed in 2020 and given the plan to extend of the Parkway further north, it will be critical to understand how the project has affected and will affect the feasibilities of ground-up real estate development projects and thus, identify value capture opportunities. The second case study will be the City of Orlando. Several years ago, the city undertook a major “upzoning” process, substantially increasing the allowed density and intensity of uses citywide. This presents a valuable opportunity to identify if and how the zoning change has affected real estate development activities, and whether there has been any change in the price of land that developers have been willing to pay for.
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