Value capture funding in the Netherlands

Abstract

An increasing demand for mobility due to natural growth in demand and an urbanizing Randstad region create a demand for a higher quality and higher capacity system of public transportation in the Netherlands. Funding for improvements is however lacking threatening the development of needed homes in the region as new development locations lack accessibility. The responsibility for plan making and development of housing and regional infrastructure has shifted to lower levels of government. Value capture funding instruments are successfully applied abroad where they supply parts of the required funding for infrastructural projects. The application of value capture instruments in the Dutch context is studied by looking at Dutch cases where regional public transportation infrastructure and urban development are combined and by expert interviews to explore the application of value capture instruments. Through a literature study it was found that the upgrade of public transportation infrastructure can lead to a 3 to 5 per cent rise in real estate values in the first kilometer from a new station location. By estimating a rise in real estate values using qualitative characteristics complex quantitative calculations can be avoided and an expected rise in real estate value can be found. A proposal for a value capture process is made where the choice for an instrument is related to the capture space and financial feasibility is considered in relation to the choice for value capturing. It is recommended that the Dutch government takes action to empower local public bodies to be able to apply value capture instruments by taking away legal risks. Timing, scale and governance are seen as key factors for local public bodies to be able to succeed in capturing value.