Value Capture Financing

Value capture refers to a type of public financing in which the increase in private land values generated by a new public investment helps to pay for that investment. Transportation projects, in particular, can increase adjacent land values, and thus generate a windfall for private landowners. Public agencies can capture a portion of that windfall with any of the following methods: 1) local improvement districts; 2) public-private development of adjacent land; 3) traffic impact fees; or 4) tax increment financing districts.