Value Increase and Value Capture: TH 610 Case Study
Zhirong Zhao, Associate Professor, Humphrey School of Public Affairs
Project Summary:This research examined the potential of value increase and opportunities for value capture related to transportation improvements with a case study of the Trunk Highway (TH) 610 segment between County Road 81 and I-94 in Maple Grove, Minnesota. The Minnesota Department of Transportation (MnDOT) and local partners are activity searching for supplemental sources of funding to accelerate the final phase of TH-610 development, which is of high priority in Minnesota's highway development plan.
As a natural extension of University of Minnesota value capture study in 2009, this project demonstrates the application of value-capture strategies to supplement transportation funding for the completion of TH-610. Using spatial and regression analysis, the researchers estimate that the completion of TH-610, with two additional exits, would lead to a significant growth in assessed property value, including about $12 million in land value and $5 million in buildings. That growth would result in about $4.3 million in property tax capacity and about $1 million in annual property tax revenue. With multiple scenarios of hypothetical value-capture designs, the researchers estimate the revenue potential of value capture would range from about $12 million to about $37 million, which could be used to supplement project finance to expedite the completion of TH-610.
- Start date: 06/2012
- Project Status: Completed
- Research Area: Planning and Economy
- Topics: Economics, Funding & finance