Economist Mike Walden: Value Capture

I am intrigued by the term “value-capture”.   So dazzle me and tell me and our listeners what it means.

  1. actually it is a tax term
  2. refers to a situation where those who benefit from a government-sponsored investment are charged to at least pay for part of the investment
  3. often used in connection with transportation improvements
  4. good example is mass transit – subways or light rail
  5. when installed, the properties near those fixed subways or light rail immediately become more desirable – because people or businesses in those properties benefit from proximity to the transit project
  6. therefore it’s logical for those property owners to pay for more of the project costs than owners of property not near the transit
  7. has been considered or applied in many cities