Development license fees: An innovative new approach to funding infrastructure, affordable housing and more sustainable cities
Insights
Housing, Transport
An innovative approach to value capture can fund infrastructure, affordable housing and more sustainable cities. Developers should be charged a licence fee for the ‘development rights’ they receive through planning approvals. This would be similar to the fees charged for access to other government regulated markets, for example, liquor distribution, commercial fisheries and broadcasting bands. Development licence fees would be calculated on the uplift in value generated through more intensive use of land made possible by development consents or rezonings. As price takers, developers would pass the cost of the licence fee back to the sellers of development...