Creating, Capturing and Sharing Value: Value Capture International Masterclass Review
Evy Anwar, Northern Beaches Council, discussing value-capture opportunities in her council
Across the nation there is greater and greater demand on infrastructure, increased urbanisation and decreasing car use. Urban leaders are faced with the challenges of delivering multimodal transport, public squares for amenity and housing that meets the needs of a diverse community. Central to addressing these challenges is funding the projects that matter – that is finding a nexus between the development and the public benefit.
There are several tools available from development levies, voluntary planning agreements (VPAs) and planning incentives. These look to not only create value from the development but also capture it and share it across the community.
The planning, legal, financial and funding issues associated with these tools were explored in an intensive masterclass on 16 March, 2017 conducted by the Cities Leadership Institute and supported by AECOM.
Urban leaders from across local and State government joined forces with the private sector to build models and applications to case studies and their own communities.
Tim Moore discussing value-capture with representatives from City of Canterbury-Bankstown
Key take outs included:
Value-capture is a viable funding tool that can be applied to a range of projects. A greater understanding of the principles and models will enable government, legislators and urban leaders to apply this consistently to projects
Value-capture is not about shifting value from one area to another. It is about tapping new and alternative sources of revenue and creating “economies of agglomeration”
Timing is key to capturing value. Value can be ‘lost’ where re-zoning and new transport infrastructure is announced prior to working through changes with the private sector to outline where the value is required to be shared.
Councils can send powerful signals to the market about their approach to value capture which can form a critical part of how they fund essential infrastructure
Voluntary Planning Agreements are one tool for delivering value-capture however we need to ensure there is a nexus between the development and the shared benefit.
It is valuable to invest in a project review panel, or external independent body, with respected industry representatives to maximize the value creation opportunities available
Councils control and manage large regions with complex demands and can take a leadership role with the state government to identify funding solutions
Mass transit rather than car-use is now positively correlated to the wealth of a city making it essential we find new ways to fund multi modal transit.
Land use and transport are interdependent. Making great places relies on how these two work together.
Leslie Stein talking about the pros and cons of VPAs
Our experts included:
Leslie Stein, Senior Advisor, Governance and Policy for HillPDA and Adjunct Professor of Urban Planning at University of Sydney
Robert Peskin, Senior Consulting Manager, AECOM USA (presentation here)
Professor Peter Newman AO, John Curtin Distinguished Professor of Sustainability (presentation here)
Our case study experts included:
Evan Jones, Responsive Environments, Western Australia (presentation here)
Joe Langley, Technical Director, Commercial Advisory at AECOM (presentation here)
The masterclass was attended by representatives from Northern Beaches Council, City of Canterbury-Bankstown, Inner West Council, Cumberland Council , Georges River Council, Lake Macquarie City Council and Waverley Council, as well as SSROC, UrbanGrowth NSW and individuals from the private sector.
See photos of the event here