Abstract
Many local authorities apply public value capture on new developments to cover the costs of additional public services. The development obligations (DO) they apply can be either negotiable (NDO) or non-negotiable (NNDO). This article examines the limits of NDOs by comparing three national case studies according to the basic principles of proportionality, causality, connection, and lack of transparency for developers. Well-developed building land models and a delineation of applicable cost types offer more transparency for the developer and enable the municipal authorities to establish a fairer distribution of burdens based on actual benefit.
Highlights
Many local authorities apply public value capture on new developments to cover the costs of additional public services
Germany has been chosen for this case study because of the long tradition of using developer obligations and especially the established use of urban calculation to evaluate the proportionality of those regulations
Which Criterion Should Be Used for Proportionality Check
Summary
Many local authorities apply public value capture on new developments to cover the costs of additional public services. Public value capture is essential to improve the refinancing of public infrastructure to keep the necessary budget for important duties such as education and health care. For this reason, it is one of the key factors of responsible land management, and smart tools are needed for successful implementation [3]. A wide agreement exists on capturing value from infrastructure improvements and public services. It raises political opposition, the same occurs with the value from changes in land use regulations [5]
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