Value Capture and Vertical Allocations of Public Amenities

This paper describes and critically reviews an important but under-theorized value capture mechanism that we have termed “vertical allocations” (or vertical exactions). enables cities to vertically by allocating floor space for public utilities in privately owned, mixed-use, development. As a tool, allocations allow the government tap uplift supply nearby neighborhood, city as whole, with much needed services. The owner or developer is required make in-kind contributions form of spaces provided range facilities such schools, preschools, community centers, medical clinics. While focusing on exactions Israel explore how certain share land/floorspace can be allocated amenities given project. There are several legal pathways securing floorspace including negotiated agreements, land readjustment expropriation. findings show unclear policies regulations could create frictions between developers municipalities, these raise nexus question well debates about construction costs financial make. Specifically, finds while often argue should cover constructing floorspace, officials assert borne owners developers.