Non-Negotiable Developer Obligations in the Spanish Land Readjustment: An Effective Passive Governance Approach that 'de facto' Taxes Development Value?

摘要

Land Readjustment (LR) is often presented as an alternative 'third Way' among public and private approaches to governance in urban development. Unfortunately, not much literature analyzes the effectiveness of LR, which depends on its ability to capture land value increases to finance public infrastructure. LR can capture land value increases with taxes and contributions to be levied after the readjustment, and/or with developer obligations. This paper focuses on how non-negotiable developer obligations function within the Spanish LR, and whether they succeed in delivering public infrastructure. The findings also feed into the debates about the effectiveness of public and private governance approaches and the limits of public value capture instruments.