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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.

    Project Phase: 
    Financing

    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

    Project Phase: 
    Financing

    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

    Project Phase: 
    Financing

    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

    Project Phase: 
    Financing

    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

    Project Phase: 
    Financing

    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.

    Project Phase: 
    Financing

    Tax Incentives

    Selective and intelligently designed tax incentives can play a major role in absorbing private sector capital for urban regeneration.

    Project Phase: 
    Financing

    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.

    Project Phase: 
    Financing

    Land Swaps

    A land swap is a tool that empowers a city to trade a municipally owned site with a privately owned site.

    Project Phase: 
    Financing

    Sale or Long-Term Lease through a Strategic Negotiated Transaction

    The government can carry out negotiations directly with developers in a nontransparent form.

    Project Phase: 
    Financing

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