Land value capture by urban development agreements: The case of lombardy region (Italy)

Abstract

This paper focuses on the interaction between land use planning and infrastructure provision, and offers an overview of the methods that are used in different development contexts to share the costs of local infrastructures and facilities between the public and the private sector. Over the last forty years or so, in the face of intense fiscal pressure and a drastic reduction in the transfer of resources from the central government, local authorities have increasingly been searching for alternative means to fund the provision of off-site infrastructures and facilities. Starting from the analysis of the Urban Developments Agreements carried out in Lombardy Region over the last 15 years, the paper provides an overview of the surplus value capture mechanism, as it result from land use change and development with the aim of pointing out the issue of its allocation between public and private parties.