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Author(s): Emília Malcata Rebelo
Title: Sustainable urban planning from an economic and financial perspective
Issue Date: 2014
Abstract: In this communication are reported the assumptions, methodology, outcomesand conclusions of a research carried out within the scope of the revision of the Land,Territorial Ordinance and Urbanism Act, currently under way in Portugal. This is a deeprevision, and it points out the importance of the economic and financial sustainability ofurban development operations for municipalities.Land values rise as a result of territorial planning decisions. Thus a planned publicintervention is required in order to assure these surplus values are allocated for thepopulations social interest. Despite the existence of different kinds of land policies, thefiscal-based ones affect the most the market and land uses, and may substantiallyinfluence planning goals achievement. Land taxation aims at assuring a source of incometo public administration; redistributing welfare so to grant land its social function; givingback to society the land surplus values that accrue from planning decisions and publicinvestments; and increasing the provision of land for urban development.In order to recover part of the surplus values engendered by urban planning decisions,herein is proposed a new territorial management instrument, applied at the Municipallevel. It consists in charging a 20% fee on the land value increase (surplus-value) thataccrues from concrete building capacity/m2assigned by plans to specific urbaninterventions. This fee will, later on, be used by the municipality on behalf of socialpurposes. The current proposal is applied, as a case study, to the Urban DevelopmentPlan of the Planning Unit 11 of the municipality of Lagoa, located in the Algarve(Portugal). The methodology pursued in the current study consists in the computation ofthe building capacity/m2, and of the surplus values and corresponding 20% fee thataccrue from the establishment of that plan, to be charged to promoters and builders, inorder to recover part of their unearned increments. This innovative territorialmanagement instrument strengthens municipals economic and financial sustainability,clears up the origins and applications of municipal funds, and ensures that the surplusvalues engendered by plans are pointed to social purposes and not to specific privateinterests.The application of this urban fee may be easily extended to other municipalities, as it isfounded on information and methodologies that stand inter-municipal comparisons.Besides, this kind of study supports municipal decisions on both urban development andeconomic-financial issues, in an integrated and sustainable way.
Subject: Ciências Sociais, Geografia económica e social
Social sciences, Social and economic geography
Scientific areas: Ciências sociais::Geografia económica e social
Social sciences::Social and economic geography
Source: Sustainable Housing Construction - 40th IAHS World Congress on Housing
Document Type: Artigo em Livro de Atas de Conferência Internacional
Rights: openAccess
Appears in Collections:FEUP - Artigo em Livro de Atas de Conferência Internacional

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