Land value capture: harnessing the value generated by accessibility

The creation of transportation infrastructure enables cities to improve accessibility in certain areas. This concept is a strong determining factor of land value in urban areas. In highly accessible areas, land value will automatically be greater. The value generated by the improved accessibility of an area may be a source of mobility funding provided that the capital gain related to the completion of new transportation infrastructure is recovered. This is exactly what the “land value capture” mechanism intends to achieve. Through this measure, it is possible to recover part of the land value generated and to allocate it to mobility funding.

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What scale of implementation?

Local

Who pays?

Companies

What secondary benefits for the community?

Building densification

Tax on office premises in the Île-de-France (Greater Paris) region

Initially limited to office premises, this annual tax introduced in 1990 had its base extended in 1999 to retail and storage premises, then in 2011 to parking spaces. Today, the TSB also applies to parking spaces in the Île de France region. It is payable on 1 January for an entire year, even if the premises change usage, owner or become vacant during the year.

Lane rental scheme: funding road infrastructure by reducing the time limitations of roadworks

Road infrastructure maintenance is essential if network performance is to be preserved. It requires regular interventions by public works companies. However, these roadworks also vehicle negative externalities which may prove to be expensive to users (longer journey times) and may put a strain on cities’ attractiveness.

Fare-free public transportation

In recent years, cities have considered making public transportation free of charge. In France, Châteauroux, Niort and Dunkirk have made their transportation networks free to use, as have Tallinn and Luxembourg.

La Fabrique de la Cité

La Fabrique de la Cité is a think tank dedicated to urban foresight, created by the VINCI group, its sponsor, in 2010. La Fabrique de la Cité acts as a forum where urban stakeholders, whether French or international, collaborate to bring forth new ways of building and rebuilding cities.

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