From Vision to Value
This working paper presents how large-scale urban redevelopment across seven Danish cities and towns is delivered and financed using land value capture. In all the seven cases, partially or fully municipal development corporations play a critical role in leveraging publicly accumulated and owned land and buildings to spur local economic growth.
The present working paper considers development corporations or equivalent public, private and civic hybrid entities that were selected based on their geographical distribution, including in cities and densely urbanized areas (Housing and Project Development in Aarhus, Stigsborg Havnefront in Aalborg), small towns (Nærheden in Høje-Taastrup, Køge Kyst in Køge, Holstebro Udvikling in Holstebro, Kanalbyen in Fredericia), and a rural area (Ringkøbing-Skjern).
The cities presented are driving transformational visions and associated initiatives and investments that remake their physical, economic and social landscape. These visions are driven by forward thinking city governments that use their partial or full ownership of the development corporations as institutional vehicles. The development corporations are able to catalyze long-term financing that aligns with the breadth and depth of the city vision. In some of the cases, the long-term horizon is backed by philanthropic patient capital that enables the cities to leverage land value capture for continuous reinvestment and revitalization. Such a tried and tested method evidenced by the case studies presented here renders an opportunity for cities across the world to embark upon similar trajectories.