Glossary of Terms
Anti-Poaching Agreements – Formal or informal pacts between local governments to stop competing for existing businesses (particularly retailers) by offering incentives or other inducements to move from one community to another within the same region. See also interlocal cooperation.
Board of Zoning Appeals – A citizen board appointed by the mayor or city council that decides whether to grant exceptions to the zoning code. See also Zoning.
Capital Budget – A budget for large, long-term projects such as building or upgrading roads, parks, public buildings, or utility systems.
Capital Budgeting – The process cities use to plan and pay for big, long-term projects such as roads, parks, or public buildings. Capital budgeting helps local governments decide which large investments to make, how to fund them, and when to build them. These projects usually cost a lot up front but provide long-term benefits to the community.
Capital Stack – The different sources of money used to pay for a development project.
Community Engagement – The process of involving residents in decisions about their government.
Comprehensive Plan – A big-picture document that covers many topics such as land use, housing, transportation, parks, economic development, and the environment. It helps city leaders, planners, and the public make decisions that reflect shared goals for the future.
Comprehensive Planning – A long-term process that cities use to guide how they change and develop.
Developer – A person or company that buys land or buildings and turns them into something new such as residential, retail centers, or mixed-use districts.
Disinvestment – When businesses, property owners, or governments reduce or stop investing in a neighborhood or area. This can lead to neglected buildings, fewer job opportunities, lower property values, and declining public services.
Displacement – The process by which people and businesses are forced to leave an area where they live or operate. Displacement can happen directly, such as when buildings are demolished or properties are sold, or indirectly, when rising rents and property values make it too expensive for existing residents or businesses to stay.
Economic Development – Work focused on attracting businesses, creating jobs, and growing the local tax base.
Financial Risk – The possibility that an investment or redevelopment project will not deliver the expected return, or will create unexpected costs for the developer or local government over time.
First-Ring Suburb – A community located just outside a major city, usually developed in the early- to mid-20th century.
Gentrification – A process where reinvestment in urban neighborhoods attracts higher-income residents and businesses, sometimes at the expense of existing community members.
Government Grant – Money provided by a government agency to support a project or activity. Grants do not have to be repaid and are typically used to reduce project costs or support public benefits.
Government Loan – Money borrowed from a government agency that must be repaid over time, usually with interest. These loans often offer lower interest rates or more flexible terms than private loans.
Greenfield Projects – Real estate development projects occur on undeveloped land, usually on the outskirts of towns or in rural areas.
Intergovernmental Relations – Interactions and collaborative efforts among different levels of government—federal, state, and local. This concept includes both vertical relationships (between different levels of government) and horizontal relationships (among governments at the same level). See also interlocal cooperation.
Interlocal Cooperation – Refers to collaborative arrangements between two or more local governments to address common issues and provide public services more efficiently.
Internal Rate of Return (IRR) – The projected annualized return on a project with multiple cash flows. IRR is a financial metric commonly used in project finance to help assess the profitability of long-term investments. See also Rate of Return.
Land Use – How land in a city is used, such as for homes, stores, parks, or industry.
Local Government Fragmentation – The distribution of power across many small local governments within a given area.
Mixed-Used Development Projects – Projects that combine residential, retail, office space, and public areas in one place.
Moral Hazard – A situation where one party, often in a financial or contractual agreement, is more likely to engage in risky or undesirable behavior because they know the other party will bear the costs of those risks. In redevelopment, subsidies can shift risk from the developer to taxpayers, which may invite behaviors that wouldn’t happen if the developer bore the full cost.
Operating Budget – The part of a city’s budget that covers everyday expenses needed to keep services running. This includes expenses such as staff salaries, road and sidewalk repairs, park maintenance, snow removal, and utility costs for public buildings.
Participatory Planning – A way for community members to help shape how their neighborhood or city is planned and built. It focuses on getting input from residents when making decisions about things like parks, streets, buildings, and public spaces.
Payment In Lieu of Taxes (PILOT) – A payment made to a local government by a property owner or developer instead of paying traditional property taxes. These payments are usually agreed to as part of a development deal and are often used to fund public improvements or services that support the project. See also tax increment financing.
Place-Based Planning – The process of designing projects that reflect the character, needs, and culture of the local community.
Place-Based Redevelopment – Projects that reflect the identity and culture of the local community. They often include local businesses and design features that match the city’s character.
Placemaking – The practice of creating spaces that are more than just physically functional. It involves designing public spaces such as plazas, sidewalks, parks, and marketplaces in ways that encourage people to gather, hang out, and return.
Planning Commission – A citizen board appointed by the mayor or city council that oversees land use planning and development proposals.
Pro Forma – A financial forecast that estimates a project’s future income, expenses, and returns based on “what-if” scenarios.
Proposal Writing – Preparing clear, persuasive applications for government grants and loans.
Public Administration – The work of managing government organizations and programs at all levels, including cities, counties, states, and federal agencies.
Rate of Return – The percentage of profit or loss on an investment over a set period of time, calculated by comparing the investment’s net gain or loss to its original cost. See also Internal Rate of Return.
Real Estate Development – Private-sector work that turns land or buildings into new projects, such as housing, offices, or shopping areas, to generate a return on investment.
Redevelopment Project – The process of improving land or buildings that are underused, outdated, or no longer serving the community well.
Tax Increment Financing (TIF) – A way cities help pay for development projects. When a project makes a property more valuable, the developer makes special payments called payments in lieu of taxes instead of paying higher property taxes. The city uses that money to fund things such as roads, sidewalks, parking garages, or other improvements that support the project. See also Payment In Lieu of Taxes.
Transit-Oriented Development (TOD) – Development designed around public transportation. TOD makes it easier for people to live, work, and shop near train or bus stations without needing a car.
Urban Planning – Decisions about how land is used and how communities grow or change over time. It includes choosing where to place homes, parks, stores, streets, and transit stations so that everything works well together.
Variance – Special permission granted by the city to allow a property to be used in a way that does not fully meet current zoning rules.
Zoning – Local rules that determine what can be built on a property and how it can be used (for example, commercial or residential). Zoning shapes how neighborhoods grow and what types of buildings are allowed.
