Morgner’s Capital Improvement and Development Diagnostics is specifically designed for local governments to help develop an integrated strategy to address the three critical challenges they are currently facing (1) Fiscal Sustainability (2) Timely Capital Improvements and Adequate Service Provisions and (3) Balanced and Sustained Economic Growth.

 
 
 

Land Value Capture (LVC)

LVC Tools to help generate new local revenue sources and enhance local governments’ overall fiscal position. More specifically, LVC tools enable monetization of local land use entitlements to pay for capital improvements. Morgner’s ELCIDD provides a comprehensive assessment of the following LVC tools for their applicability.

LVC Tools

  • Tax increment financing (TIF) and property/sales taxes
  • Special assessment districts
  • Developer exactions (e.g., land dedications, in-kind service/facility provisions, in-lieu fees such as impact fees and linkage fees)
  • Negotiated contracts (e.g., development agreements, community benefits agreements)
  • Regulatory incentives (e.g., air rights, transfer of development rights, density bonuses, vested rights)
  • Tradable land use entitlement certificates (e.g., CEPAC certificates)

Public Private Partnerships (P3)

P3 and Alternative Infrastructure Financing/Delivery Models to provide innovative means to finance and deliver capital projects more efficiently and cheaply by engaging the private sector. Based on lifecycle approach, P3 helps to solve the serious deferred maintenance issues, while also transferring the financing risks to the private sector. Morgner’s ELCIDD provides a comprehensive assessment of the P3 feasibility and other innovative financing/delivery strategy for each infrastructure assets under local jurisdiction, including:

Infrastructure Assets

  • LED/streetlight modernization
  • Public buildings (e.g., city halls, public libraries)
  • Public schools
  • Hospitals and public healthcare facilities
  • Justice/correctional facilities (e.g., court houses, detention centers)
  • Fiber-to-the-home (FTTH)/broadband networks
  • Waste-to-energy conversion
  • Other energy assets (e.g., electric vehicle charging stations, solar panels, etc.)

Qualified Opportunity Zones (QOZ)

QOZ to help induce private sector investments into economically distressed areas where most needed. Morgner’s ELCIDD provides an overall assessment of how local governments can capitalize on the QOZ tax incentives, in particular, with encouraging and promoting smart balanced growth and transit-oriented developments (TODs) through private sector investments. By monitoring and gaining clear understanding of the ongoing QOZ rollout, ELCIDD would also help develop overall QOZ strategy for local governments so that they are “QOZ ready” to properly incentivize and facilitate QOZ investments into their communities.

Enhanced Infrastructure Financing Districts (EIFD)

EIFD to provide innovative means to finance large-scale capital improvement projects that can trigger major economic growth. Unique to California, EIFD enables two or more local governments to work jointly to issue long-term tax-exempt bonds to provide critical infrastructure needs to support major economic developments. Morgner’s ELCIDD assesses EIFD feasibility and its ability to access and leverage multiple revenue sources across multiple jurisdictions, including:

Multiple Revenue Sources

  • Property/sales taxes
  • User fees (e.g., utility fees, tolls)
  • Special assessments (e.g., special assessment or Mello-Roos districts)
  • In-lieu fees (e.g., impact or linkage fees
  • Transit agency funding
  • Others: vehicle license fees, hotel room taxes, private investments
 

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