Value Capture in
Massachusetts:
Opportunities and Challenges
Eric Bourassa
Director of Transportation Planning
Metropolitan Area Planning Council
Presentation Overview
 Different Types of Value Capture Tools
 Value Capture Tools in Massachusetts
 Opportunities
 Challenges
 Issues to Consider
Value Capture
Capturing growth in property values
generated by access to transportation
to pay for transportation infrastructure
or related development costs
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Different Types of Value
Capture Tools
 Special Assessment or Tax Districts
 Tax Incremental Financing
 Developer/Impact Fee
 Joint Development
Value Capture Tools in
Massachusetts
 District Improvement Financing (DIF)
 Infrastructure Investment Incentive Program (I-
Cubed)
 Local Infrastructure Development Program (LID-Pro)
 Business Improvement Districts (BID)
Opportunities: What Value
Capture Could Accomplish
 New Transportation (lines, stations, vehicles, roads)
 Station Area Improvements (roadways, sidewalks, bike
facilities, trees, benches, park space, etc.)
 Transit Operating Costs
 Smart Growth Redevelopment (dense, walkable,
mixed use, housing)
Challenges
 Historically state pays for transportation
infrastructure; municipal contribution is small
 Developer and municipal communities in MA have not
embraced VC
 Small geographies where land use decisions are made
(351 cities & towns)
 Need valuable land or large land area to be viable
Issues To Consider
 What desired (yet unfunded) projects could be supported
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by value capture?
Should new development along transit corridors support
transit operating costs? Should this include project debt
service?
Could state-owned land disposition policies be improved
to encourage value capture?
How can we encourage cities and towns to pledge a portion
of incremental tax revenue?
How can we encourage multiple municipalities and
property owners to work together?