San Diego Association of Governments Regional Value Capture
San Diego Association of Governments (SANDAG)
HR&A evaluated land value capture mechanisms for the San Diego Association of Governments (SANDAG), delivering a comprehensive implementation strategy and dynamic assessment tool to generate sustainable revenue for SANDAG’s Regional Infrastructure Plan. Our work included financial modeling for two priority transit projects and produced an actionable roadmap that helps SANDAG and local partner agencies leverage value capture opportunities to fund critical infrastructure while supporting increased housing supply throughout the region.
Implementing the ambitious infrastructure improvements in SANDAG’s Regional Plan proved difficult amid a complex regulatory environment involving multiple jurisdictions and funding mechanisms. As infrastructure needs continue to expand and conventional public funding remains limited, the region faces increasing pressure to identify long-term, sustainable revenue solutions. HR&A conducted a thorough assessment of the regional context, analyzing key government stakeholders, relevant legislation, existing taxing mechanisms, and implementation barriers. This foundation allowed us to identify strategic opportunities where value capture tools, such as Enhanced Infrastructure Financing Districts, Special Assessment Districts, and Developer Fees, could be most effectively deployed within current legal and political constraints. We then developed a sophisticated digital evaluation tool incorporating suitability criteria that enables SANDAG to systematically assess value capture potential across various project types and locations in real time, providing a data-driven approach to prioritization and resource allocation.
To demonstrate practical applications, HR&A created detailed financial models producing rough order of magnitude (ROM) revenue projections for two near-term priority projects identified by SANDAG in their regional capital plan: the Tecolote Trolley Station and Kearny Mesa Transit Center. These analyses quantified the potential effectiveness of specific value capture mechanisms and joint development opportunities in real-world contexts, giving SANDAG tangible examples of implementation.
Our final value capture strategy provides a clear, actionable work plan that outlines necessary steps, timelines, responsible parties, and potential challenges for implementing various mechanisms across a pipeline of regional projects. This comprehensive approach equips SANDAG with both a strategic framework and the right practical tools to systematically capture land value increases generated by public infrastructure investments to help them create a sustainable funding source for regional priorities while supporting transit-oriented development goals.
Following this engagement, HR&A has recently worked with SANDAG on the evaluation of funding capital improvements to the Sprinter rail service in the LOSSAN Corridor and transit-oriented-development enabling station area investments along the Blue Line through value capture tools first studied in this engagement.
