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The role of negotiated developer obligations in financing large public infrastructure after the economic crisis in the Netherlands

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  • Demetrio Muñoz Gielen
  • Sander Lenferink

Abstract

The economic crisis that started in 2009 has negatively impacted in the Netherlands the available financial resources for urban development. Dutch municipalities struggle since then with falling local financial sources, especially since active public land policy, traditionally an important additional financial source, became not so profitable anymore. One supposed effect is the limited degree to which municipalities can nowadays finance public infrastructure that serves wider areas, thus more than one specific development site (i.e. ‘large’ public infrastructure). Until now, however, there are no data available that support this claim. In this paper, we explore this and the role that developer obligations can play as an alternative, compensating financial source. Developer obligations are in many countries a growing popular public value capturing instrument, but in the Netherlands, a relative new phenomenon. On the basis of surveys, interviews and policy analysis, we conclude that at least a quarter of Dutch municipalities use developer obligations to obtain financial sources for large infrastructure. This seems, however, so far not to compensate for the diminishing of other municipal financial sources. The paper ends with some speculation about the future evolvement of developer obligations in the Netherlands.

Suggested Citation

  • Demetrio Muñoz Gielen & Sander Lenferink, 2018. "The role of negotiated developer obligations in financing large public infrastructure after the economic crisis in the Netherlands," European Planning Studies, Taylor & Francis Journals, vol. 26(4), pages 768-791, April.
    • Handle: RePEc:taf:eurpls:v:26:y:2018:i:4:p:768-791
    DOI: 10.1080/09654313.2018.1425376
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    Cited by:

    1. Gielen Demetrio Muñoz & Ossowicz Tomasz & Zaborowski Tomasz Piotr, 2022. "Failure and opportunities of public value capture and developer obligations in Polish urban development," Miscellanea Geographica. Regional Studies on Development, Sciendo, vol. 26(1), pages 15-30, January.
    2. Julie Pollard, 2023. "The political conditions of the rise of real-estate developers in French housing policies," Environment and Planning C, , vol. 41(2), pages 274-291, March.
    3. Demetrio, Muñoz Gielen & Francisco, Blanc Clavero & Burcher, James Corbet & Juan Felipe, Pinilla, 2023. "The role of jurisprudence in public value capture in urban development: A comparative analysis from Dutch, English, Spanish and Colombian courts," Land Use Policy, Elsevier, vol. 127(C).
    4. Andreas Hendricks & Peter Lacoere & Erwin van der Krabben & Cynthia Oorschot, 2021. "Limits of Negotiable Developer Obligations," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    5. Vejchodská, Eliška & Barreira, Ana Paula & Auziņš, Armands & Jürgenson, Evelin & Fowles, Steven & Maliene, Vida, 2022. "Bridging land value capture with land rent narratives," Land Use Policy, Elsevier, vol. 114(C).
    6. Singhapathirana, Priyanwada Indeewaree & Hui, Eddie Chi Man & Jayantha, Wadu Mesthrige, 2022. "Critical factors affecting the public land development: A systematic review and thematic synthesis," Land Use Policy, Elsevier, vol. 117(C).

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