Institutional Design for Value Capture and a Case: The Tel-Aviv Metropolitan Park

摘要

Two factors are critical for implementing strategic projects: institutional design and value capture. A brief introduction to institutional design is followed by an exposition of value capture: capturing the indirect benefits of public investments to fund the development and operation of public projects. Institutional design answers the question: how to institutionalize and effect value capture to enable a proposed project to be funded. Alternative modes of value capture are associated with different forms of institutional design, including levies. Special Districts and public-private partnerships. The case of the Ayalon Metropolitan Park in Tel-Aviv, Israel, illustrates the need for strategic project planning to include institutional design for value capture.