Ten miles of new subway track are coming to Long Island, NY, and it won’t be the riders footing the bill at the turnstile – at least not exclusively. At a meeting earlier this month, MTA Chairman Joseph Lhota said that all future projects will account for ‘value capture’ – the nancing of public infrastructure by recovering some of the value it creates for private landowners that bene t from increased public access.
It’s not a new idea. An EY report from 2011 goes into the ways Warsaw’s public transportation service could “acquire additional dedicated resources by considering the contributions of the land value capture methodology,” using a group of funding methods (land value taxation, negotiated exactions, tax increment nancing, special assessments, development impact fees, etc.) to fund infrastructure that results in both net private sector pro t and increased public sector returns.