We are a leaders in applying value capture tools and innovative financing structures to meet our clients’ critical funding needs on complex property and infrastructure projects.
WSP has served as a trusted advisor to departments of transportation, redevelopment agencies, transit authorities, joint power authorities, and city and county governments for over a decade. We typically aim to employ captured values to help close funding gaps as well as to finance or repay investments in public infrastructure.
Our real estate and place-making experts have worked extensively and collaboratively with private sector developers – it is with this understanding and experience that we are able to maximize the potential revenue opportunities of development projects.
Specific value capture expertise includes:
- Detailed analysis of potential new development values, including real estate market analysis
- Preparation of value capture reports based on revenue sources unique to each state
- Corridor and transit-oriented development site evaluations
- Projections of value capture revenues
- Governance structures to manage and allocate value capture revenues
Innovative Approaches to Creating Value
Types of value capture approaches used could be special assessments, tax increment financing, and development impact fees, as well as negotiated approaches such as developer contributions, air rights, and joint development agreements. There are also a variety of other means where a property or infrastructure investment results in new value creation: revenues can be applied to capital and operating costs, or in support of innovative delivery methods, such as public-private partnership (PPP) structures.
By using tried and true tools in innovative ways, our team has assisted numerous public and private entities in providing customized value capture approaches that solve clients’ urgent financing needs.
WSP in Action
To help the city of Alexandria, Virginia (US), develop the Potomac Yard Metrorail Station, WSP analyzed the feasibility of using a combination of value capture mechanisms to finance the new station adjacent to the rapidly developing former rail yard. The study compared several station locations, development scenarios, value capture strategies, and financing options to support the development of a preferred public-private partnership development strategy.
Our analysis demonstrated that use of the right mix of value capture techniques could provide an effective means of harnessing the future benefits of development at Potomac Yard to help finance the Metrorail station today. With a combination of special district financing, net new tax revenues, and developer contributions, our analysis showed the $240 million station could self-finance.
Both the financial plan and developer agreement were approved by the city of Alexandria Planning Commission and City Council, laying the groundwork for the redevelopment of this former rail yard into a modern, mixed-use urban center. Since then, WSP has provided the city with ongoing support, including revised financial forecasts based on more defined development plans in the area.