AASHTO STANDING COMMITTEE ON RESEARCH
AMERICAN ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS
I.
PROBLEM NUMBER
To be assigned by NCHRP staff.
II.
PROBLEM TITLE
Value Capture Toolkit to Fund Transportation
III.
STATEMENT OF RESEARCH PROBLEM
Value capture (VC) mechanisms accelerate project delivery by using some of the value created by
transportation to fund projects delayed by insufficient investment. Many backlog projects are critical to
support economic growth, real estate values, and retail and commercial activity. Aggressive use of all the
tools in the toolbox is required to avoid delay. Local and regional agencies regularly use value capture
mechanisms and DOTs need to expand their understanding. Wider acceptance and use of VC would support
planning, project development, and funding processes. This research will help meet an urgent need for
transportation funding.
Implementing VC mechanisms equitably and legally depends on agency preparation to determine the area
of benefit, the magnitude of the benefits, and the timing of the benefits. To aid preparation, DOTs need a
toolkit: (a) to choose appropriate VC mechanisms; (b) to estimate stakeholder involvement costs and
administrative costs; and, (c) to identify VC best practices to supplement case studies from NCHRP 459 and
for integrating VC into their organization’s structure.
A value capture toolkit would have a high payoff because transportation generates substantial value that
could be returned to sustain transportation. AASHTO’s Standing Committee on Finance and Administration
(SCOFA) and the Standing Committee on Planning (SCOP) have a significant stake in facilitating and
implementing this research. It directly promotes all SCOP’s Strategic Plan goals and many of the strategies
and actions under each goal. SCOFA has no strategic plan but the research supports the committee’s charge.
The strategic plan for SCOFA’s Subcommittee on Finance Policy (SOFTP) discusses funding challenges.
This research would advance the goals and strategies of that subcommittee.
IV.
LITERATURE SEARCH SUMMARY
The NCHRP Synthesis 459, Using the Economic Value Created by Transportation to Fund Transportation,
described nine VC mechanisms being used to fund transportation by agencies across the United States. The
synthesis highlighted the need for decision tools to aid implementation.
Value capture literature is large and comprehensive. There are numerous applications around the world for
highways and transit (Andelson 2000; Bowes and Ihlanfeldt 2001; Fensham and Gleeson 2003; Smith and
Gihring 2006; Iacono et al. 2009; Mathur and Smith 2012; Kemp et al. 2013, Zhao 2014). National level
databases like those developed under Strategic Highway Research Program (SHRP2) C03 “Interactions
between Transportation Capacity, Economic Systems and Land Use Merged with Integrating Economic
Considerations Project Development,” provide a valuable national perspective. They generally have not
focused on land development. The SHRP2 C03/T-PICs case study dataset are applicable.
A broad overview of VC related mechanisms is included in NCHRP 20-24(49) Cambridge et al. 2006,
AECOM 2007, Iacono et al. 2009, Levinson and Istrate 2011, Mathur and Smith 2012, and Kemp et al.
2013. A Center for Transportation Studies legislative summary report and other sources (Lari et al. 2009;
Mathur and Smith 2012). Lari et al. (2009) also present other features of a subset of VC mechanisms
covering (a) coordination, (b) timing of levy, (c) allocation of revenues to specific costs (capital versus
operations and maintenance), and (d) appropriate level of government (local and/or state) for
implementation. All mechanisms are local government tools (Lari et al. 2009); however, many tools require
enabling state and local legislation.
National level tools like those developed by the Federal Highway Administration (Public Private
Partnerships Toolkit) only consider VC mechanisms sparingly. There is no DOT toolkit to integrate this
potential funding source into DOT decisions.
V.
RESEARCH OBJECTIVE
The primary objective is to create an agency toolkit to capture some of the value created by transportation to
fund transportation. A secondary objective is to identify best practices: (a) to increase success in
implementing VC; (b) to integrate VC into an agency’s organizational framework; and, (c) to supplement
the case studies from NCHRP 459. The toolkit should:
1.
Provide information to aid states in implementing VC mechanisms.
2.
Identify how decision makers can use models and tools to choose appropriate VC
mechanisms like those in NCHRP Synthesis 459 and estimate the risk and return from
implementing those mechanisms.
3.
Propose parameters, measures and processes to evaluate models and tools and improve
agency VC decisions.
4.
Highlight and discuss available models and tools based on the parameters and measures
above and propose a framework to select consultants or identify the necessary expertise and
organizational structure for implementing VC in-house.
POTENTIAL TASKS
1.
Discuss approaches to determine the area of benefit, the magnitude of those benefits, the
timing of the accrual of those benefits, and agency structure so VC mechanisms can be
implemented equitably and legally.
2.
Identify the parameters, measures, and criteria that reduce VC risk and increase the
probability of success and acceptance at the state, regional, and local level.
3.
Review the case study examples in NCHRP Synthesis 459, Using the Value Created by
Transportation to Fund Transportation, and supplement them with best practice examples
and describe important tools that were used in implementation.
4.
Describe appropriate organizational frameworks, process(es), and timing for an agency that
reduce risk, increase return, and ease VC integration into an agency’s organizational
structure.
5.
Evaluate and discuss the value of the tools and organizational frameworks in determining
the items in Task 1 based on the parameters, measures, and criteria proposed in Task 2.
VI.
ESTIMATE OF PROBLEM FUNDING AND RESEARCH PERIOD
Recommended Funding: $350,000
Research Period: 18 months
VII.
PERSON(S) DEVELOPING THE PROBLEM
Ben Orsbon, FAICP
Office of the Secretary
South Dakota Department of Transportation
700 East Broadway
Pierre, SD 57501
605 773-3156
Ben.Orsbon@state.sd.us
VIII.
PROBLEM MONITOR
Ben Orsbon, FAICP
Office of the Secretary
South Dakota Department of Transportation
700 East Broadway
Pierre, SD 57501
605 773-3156
Ben.Orsbon@state.sd.us
IX.
DATE AND SUBMITTED BY
Please submit completed problem statement to the following e-mail address:
nchrp@nas.edu
Questions on the process can be directed to the same address.