A Procedure to Evaluate the Extra-Charge of Urbanization

The Public-Private Partnership is also used, at international level, to carry out interventions in urban variant on areas or buildings that, by enhancing the value of (private) real estate properties, guarantee an economic return for the local community through an extraordinary contribution of urbanization (ECU) paid to the Administration by the private entity. The Italian Regions and Municipalities that have regulated the ECU calculation adopt a procedure of transformation value that does not specify either the duration or the risk-related rate of return of the real estate operation, which are essential factors for its balanced quantification. The paper defines a procedure that integrates method- ologies, diffused in practice and literature, with official datasets to determine objectively the ECU, also evaluating its sensitivity to the critical variables of the transformative process. The proposed procedure is easy to apply and adaptable to a wide range of interventions and to different phases of the public-private (re) negotiation. It is in line with the Italian case and it is consistent with the international evaluation standards (IVS), having a general validity in the esti- mation field.