I am intrigued by the term “value-capture”. So dazzle me and tell me and our listeners what it means.
- actually it is a tax term
- refers to a situation where those who benefit from a government-sponsored investment are charged to at least pay for part of the investment
- often used in connection with transportation improvements
- good example is mass transit – subways or light rail
- 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
- therefore it’s logical for those property owners to pay for more of the project costs than owners of property not near the transit
- has been considered or applied in many cities