examples of priority investments

Infrastructure investment needs to safeguard that urban growth is compact and well connected by viable and affordable transportation options.

Cities should select targeted sites to develop with public endowment, private sector participation and institutional coordination. Pilot projects should be aligned with investments in public transport. Inter-agency technical teams should ensure the quality of local development plans, the adequacy of infrastructure provision, enforcement of building and security codes and private sector preparedness to partner.

INTEGRATING FINANCE AND PLANNING WITH LAND VALUE FINANCE

Land Value Capture agreements are also a means of pursuing planning and public policies which are good for the local economy and the environment and encourage more inclusive growth (Suzuki et al, 2015)

• By changing land use rules, such as allocating higher floor area ratios (FARs) and converting land from single to mixed use, governments can heighten density for diverse uses while adding revenues.

• By using proceeds for investments in neighbourhood projects (such as parks, street lights, bike lanes, and pedestrian sidewalks), governments, transit agencies, developers, and communities can jointly create efficient, attractive, and safe public places, further increasing property value.

• By providing bonus FARs or other regulatory incentives, governments can require developers to reference social facilities and affordable housing in exchange for the additional rights.

LAND READJUSTMENT SCHEMES

Land readjustment is a key tool in regeneration projects involving private and fragmented land ownership (adapted from adapted from Suzuki et al. 2015.).

It enables the public and private sectors to carry out jointly necessary development projects to satisfy community interests through provision of infrastructure. Land rights conversion or whole purchase methods are both applicable.

East Asian countries, such as Japan and Korea, commonly employ this approach. The local government gathers or assembles

various privately owned parcels in a neighbourhood. It establishes a land-use plan for the entire area, including the designation of zones for infrastructure and land use, common services such as roads and open spaces. It then implements the proposal and provides the necessary networks. At the end of the process, the administration gives each titleholder a land parcel. The parcel is proportional to the initial plot but smaller (for example, 50 to 60% of the original one). However, the new lot yields a higher value because it belongs to a sustainably developed urban property. The government retains selected strategic plots that it sells at auction or at market prices to recover the costs of its investments in infrastructure and service delivery.

Various techniques used in Japan provide lessons for rapidly growing cities in developing countries.

• All stakeholders must share a clear vision and take collective action.

• Land readjustment and urban redevelopment plans both require a consensus which may necessitate a long time. Successful implementation relies on traditional social ties and adequate economic incentives.

• Development agencies should acquire expertise in real estate investment, urban planning and marketing to define the appropriate parameters, analyse market profiles, offer multiple services and maximize value increases in their development programmes.

• Major landowners or developers in a designated district can stimulate land readjustment projects. With their knowledge and real estate resources, they are more likely to invest in local infrastructure, take strong planning initiatives and optimize the value of their land.

• To create high-quality built environments, substantial density bonuses is an effective instrument. It encourages private developers to supply infrastructure and social services, maximize synergies and mitigate gentrification impacts through inclusive urban redevelopment.