Land Value Capture Mechanism

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🎯 This Week’s Strategy:

  • Land Value Capture Mechanism


🛠️ Boardroom Brief:

  • Florida cities sue state over new developer-friendly law

Strategy

🎯 Land Value Capture Mechanism

As urban development accelerates, cities face a persistent challenge: how to fund the infrastructure needed to support growth without overburdening taxpayers. Land Value Capture (LVC) is an innovative mechanism that allows communities to reinvest the increased value generated by new developments back into public infrastructure.

The idea is simple: when public actions (such as new transit lines, road improvements, or rezoning) increase land values in an area, a portion of that unearned gain can be captured and redirected to fund further development. This ensures that those benefiting most from public investments also contribute to sustaining them.

For builders and developers, understanding and leveraging LVC can unlock new opportunities for collaboration with municipalities, enhance project viability, and even strengthen community support.

How to implement land value capture in your projects

 Engage Early with Local Authorities
Open discussions with city planners and councils to understand whether LVC policies are in place and how they affect land near your project site.

 Incorporate LVC in Feasibility Studies
Factor potential land value uplift and contribution requirements into your early-stage financial modeling to avoid surprises later.

 Collaborate on Infrastructure Improvements
Consider co-investing with municipalities in infrastructure projects that benefit your development directly such as transit stops, walkways, or utilities.

 Explore Value-Sharing Mechanisms
Use tools like tax increment financing (TIF), development charges, or special assessment districts to align your project financing with public investment.

 Highlight Community Benefits
Communicate how your project contributes to broader neighborhood growth, making it easier to gain support from local stakeholders and regulators.

Why it matters

With infrastructure demands growing and municipal budgets tightening, Land Value Capture provides a practical framework for sustainable urban growth. For developers, it offers a structured way to align private projects with public good reducing resistance, improving approval timelines, and increasing long-term project value.

By proactively integrating LVC strategies, builders can position themselves not just as developers of real estate, but as partners in shaping resilient, future-ready communities.

Now is the time to explore LVC as a win-win strategy: funding critical infrastructure while unlocking new growth opportunities for your projects.

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Boardroom Brief

Florida cities sue state over new developer-friendly law

More than 20 Florida cities and counties are preparing to sue the state over SB 180, a controversial new law that restricts local governments from imposing “burdensome” regulations on development. Signed by Governor Ron DeSantis in June, the measure freezes local planning decisions until at least 2027 and could extend further after major storms. Supporters frame the law as a way to streamline post-disaster rebuilding, but critics argue it primarily strengthens developers’ ability to challenge growth restrictions. The lawsuit, expected in Leon County Circuit Court, contends that SB 180 violates the Florida Constitution’s home-rule protections by blocking cities and counties from shaping land-use decisions in their own communities. For builders, the legislation reduces regulatory uncertainty and curbs the risk of sudden zoning or density restrictions after storms. However, the backlash highlights rising tension between state authority, local control, and community-driven planning.

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