LUTI Consulting have created the Urban Regeneration and Transport Infrastructure Investment Value Sharing Virtuous Cycle.

Figure 1-v6-01The ‘Virtuous Cycle’ model’s each of the value creation phases in a comprehensive model of the benefits of integrating transport projects with land use plans and outlines infrastructure funding mechanisms through which urban development can assist the business case for investment in urban renewal and transportation infrastructure in an Australian context.

LUTI’s economic and financial modeling cover a suite of “value sharing” mechanisms including:

  • Increase in property values and ad valorem taxes;
  • Increase in economic activity and productivity and economic taxes;
  • Increase in service provision and service fees;
  • Asset utilization;
  • Stakeholder contributions; and
  • Other funding opportunities.

LUTI’s Virtuous Cycle enables the analysis of these mechanisms and allows for the sharing of induced increases in land values. It also assists in the identification of  development opportunities and generation  of wider economic benefits for regions created by transport infrastructure investment.