Social assignment of surplus-values accrued by plans: a new sustainable urban management instrument

Abstract

The current article reports a proposal of a new territorial management instrument, aimed at assuringmunicipal economic and financial sustainability, through the financing of municipal urban developmentdirected to social purposes, and through clear and fair procedures in equal development distribution ofcosts and benefits that accrue from planning decisions.This new urban management instrument is based on the taxation of licensed built surfaces above themunicipal abstract average built surface. It is duly explained, justified under an economic and financialperspective, and applied to the Detailed Plan of Avenida Papa João XXIII, in Fátima (in the Municipalityof Ourém, Portugal).In this study average municipal building capacities are computed, as well as the concrete buildingcapacities/m2 that accrue from urban interventions in the planning area for the different plots,anticipated kinds of uses, and applicable urban parameters. The homologous surplus-values assignedby the Detailed Plan are further anticipated, as well as the potential values this new instrument would beable to collect. Finally, respective costs and benefits that result to the Municipality of Ourém areassessed.From this research one can conclude that this new territorial management instrument is sustainablefrom an economic and financial standpoint. Its application is generalized to other municipalities, and itpotentially exerts important impacts in respective financial strengthening.