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ABSTRACT
The objective of this article is to analyze to what extent the current planning approaches utilized by local governments contribute to the private appropriation of land value increments or whether, they allow governments to capture part of this added value in the name of the public interest. The paper argues that in Argentina there are three competing approaches by which local governments address this issue: a laissez-faire approach, an entrepreneurial approach and a socially oriented approach. It goes on to examine the principles, legal basis and instruments of each approach and presents examples of large urban projects managed in accordance with them.
Disclosure statement
No potential conflict of interest was reported by the author.
Notes
1. This point draws on and reinforces the argument set forth by Fernandes and Maldonado Copello (Citation2009) regarding the legal systems governing urban development in Latin America.
2. According to experts in land markets, the effects of administrative changes in land use on land prices are major sources of windfalls for landowners. Based on information available for different cities in Latin America, Smolka estimates the following increases corresponding to three types of change in land use: 400% (rural to urban rezoning); 80% (changes to building norms) and 100% (changes to zoning regulations) (Smolka, Citation2013, p.6).
3. This perspective of strategic planning is particularly valid in America Latica. On the contrary, in the many experiences of other countries documented in the planning literature, strategic planning is presented as a way to bring together public, private and civil actors, but it does not imply flexibilization of urban regulation. (Albrechts, Citation2006).
4. This project was started in 1989 and was nearly complete by 2009. It was implemented in two phases, in line with the master plan for the urbanization of the area. In mid-2009, after nearly 20 years of work, and with some areas still slated for urbanization, the total built surface area had reached 2.3 million square metres; the permanent population stood at nearly 16,000 people and the total investment, both public and private, was close to USD 1,700 million. It was estimated that, once the project was finished, this investment would reach USD 2,500 million. The average value of new constructions in USD has increased consistently.
5. This means that the corporation’s activities are regulated by a national law pertaining to private commercial enterprises. Norms associated with the management and accountability of public administration are not automatically applied to the corporation – in other words, it is not obliged to make its financial information publicly available.
6. The principles of land use management established in Law 388 are: 1) the social and ecological function of property, 2) the primacy of the public interest over private interest and, 3) the equitable distribution of the costs and benefits associated with urban development.
7. Urban law in Brazil includes a large quantity of legal instruments, some of which have been included in the City Statute: created land (suelo creado), the use of transfer of building rights, zones of special social interest (ZEIS), compulsory subdivision and construction, progressive taxation, deappropriation through public debt titles and construction credits, among others.
8. The contribution is calculated based on how far the building exceeds authorized heights. A basic price per square metre is established (according to market assessments) and a proportional charge of 10% is added. It is implemented through agreements between property owners and the Executive Department of the Municipality under the Special Authorization Regime for Increases in Building Heights.