Decision Tool Results
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Special Assessment Districts
Another way for cities to access capital markets to fund their urban regeneration initiatives is through the use of special assessment districts.
Density Bonus
One approach, widely used in the United States, is for a municipality to leverage its regulatory power in order to incentivize private sector investment in a designated urban regeneration area thro
Up-zoning
Another approach commonly used by cities in the United States for leveraging regulatory powers is up-zoning, that is, changing the zoning to allow for higher-value (for example, from industrial to
Transferable Development Rights
In addition to municipal land, municipalities can also dispose of rights to engage in more intensive land development—a higher floor space index (FSI) or higher FAR—as a way to “finance” and incent
Direct Grants
One common form of fiscal incentive is a direct grant (typically a reimbursement for allowable expenses) to a commercial building owner or space user in exchange for certain actions, such as the hi
Low-Cost Loans
Another form of fiscal incentive is a low-cost loan program. Such programs may be used to encourage businesses to locate in a designated urban renewal area.
Tax Incentives
Selective and intelligently designed tax incentives can play a major role in absorbing private sector capital for urban regeneration.
Sale or Long-Term Lease of a Municipally-Owned Site through an Arm’s-Length Transaction
Land assets are an important ingredient of subnational government finance in many developing countries.
Land Swaps
A land swap is a tool that empowers a city to trade a municipally owned site with a privately owned site.
Sale or Long-Term Lease through a Strategic Negotiated Transaction
The government can carry out negotiations directly with developers in a nontransparent form.






