A Nationwide Analysis of Infrastructure Development
Using City Council Data to Examine Trends in Infrastructure Planning
At ReZone, we track all real estate-related city decisions nationwide, categorizing them into 12 major areas. Last time, we focused on affordable housing. Today, we focus on the category that was given a C- by the American Society of Civil Engineers (ASCE) - infrastructure development.
We’ve analyzed 3140 city decisions in the last 90 days, out of which 142 were related to infrastructure development. Here are the most significant trends:
Embracing of Special District Financing
Creative Use of Surplus Land
Stadium & Venues as Anchors
Water management
Transit & Complete Streets
Before we dive deep, I’d like to mention that there’s quite a lot of legislation related to infrastructure development that passed in the last few months. Today, we are only covering the decisions that fit a larger trend.
Trend 1: Embracing of Special Use Districts
From Texas to California to Missouri, local governments are frequently setting up or expanding special districts. Municipal Utility Districts (MUDs), Community Facility Districts (CFDs), Tax Increment Financing (TIF), and Improvement Districts, all serve the purpose to finance roads, utility lines, drainage, and public amenities without heavily burdening general funds.
Special Use Districts (SUDs) have become the go-to approach for municipalities to confront large-scale infrastructure demand tied to new development. Rather than using citywide bonds, SUDs allow cities to collect property taxes or fees only within that district to finance localized water, wastewater, road infrastructure etc. This ensures only the benefited property owners shoulder the costs.
Also, the data on Corpus Christi and Austin shows that developers often petition the city to form a special district. This gives developers a structured way to finance improvements, and allows the city to require developer participation.
In places like Las Vegas (Summerlin Village 27) or Denver (Gateway Village, West Gloebille Metropolitan District), once infrastructure is built, the special district can also oversee ongoing maintenance or bond repayment. This way, the city can avoid additional operational burdens on its own budget and staff. The district, as a separate taxing or administrative entity, handles maintenance, collects revenue, and manages its own long-term obligations.
Trend 2: Creative Use of Surplus Land
While we separately track the buying and selling of “city properties” (more on this in another letter), we find that surplus land is often used to benefit the local economy and involves the creation of infrastructure.
Cities distinguish between unused land, surplus land, and exempt surplus land. Most cities must follow some kind of legal mandate that requires declaration of city-owned parcels not being needed for municipal purposes.
Thus, every few months, or sometimes once a year - depending on the city - we see a new ordinance passed that officially labels specific lots or acreage as surplus. Most of these properties are sold “as is, where is, with all faults”, with deed restrictions, and reversionary clauses.
Most of the land is being used in affordable housing projects, industrial and commercial redevelopments, or auctioned to the highest qualified bidder. If the buyer fails to develop or deviates from the intended public use, the city can use its reversionary clauses to recoup the property or a portion of costs. Often these parcels are oddly shaped, landlocked, or difficult to maintain.
Cities like Los Angeles, Dallas, El Paso, and Houston have embraced a “surplus land for public gain” strategy. While each jurisdiction’s process and state statutes differ, the core approach is similar:
Identify city-owned property that isn’t needed for future municipal use.
Declare it surplus or exempt surplus (depending on local or state law).
Convey it often below market rate or via auction – to a nonprofit, development entity, or county level partner.
Impose conditions (affordability period, recapture rights, industrial site requirements, or disclaimers) that secure the public interest.
These transactions reduce municipal liabilities, promote community revitalization, and catalyze beneficial development in neighborhoods that need it most.
Trend 3: Stadiums & Venues as Anchors
Stadium advocates tout the venue’s ability to increase foot traffic, stimulate local businesses, and encourage further private investments. However, research clearly indicates that cities, and implicitly taxpayers, spend too much money on sports facilities and usually don’t get much back.
But, even with all the research findings, home courts often strike an emotional cord with the community. After all, who doesn’t want to have a high-visibility project in their city that:
is a key component of the city’s brand and identity
is a landmark that can boost tourism and grab national/international attention
is a cultural hub for not only professional teams, but also college/high school sports, concerts, community festivals, and corporate events?
Cities like Orlando, Seattle, Grand Rapids, and Cleveland have recently invested in stadiums, and all of them have done so in unique ways. A big question is public vs. private financing. Orlando, for example, used primarily tourist development taxes, while Seattle used interfund loans and local government bonds.
We’ll have to wait and see how these projects turn out and whether they produce a net gain for the taxpayers.
Trend 4: Water management
While recent headlines touted a “water crisis”, the reality is often more nuanced. Still, events – like the recent fire in Los Angeles – consistently show the importance of proactive water management. We see municipalities constantly building, upgrading, or expanding water and wastewater infrastructure in ways that balance current needs with future growth:
Oversized Mains & Reservoirs: In Austin, developers and the city share costs to build infrastructure that’s bigger than a single project’s demand. That way, the new main or reservoir also supports the next wave of housing or commercial expansion.
Trust Funds & Trunk Lines: In Corpus Christi, dedicated utility funds (like the Sanitary Sewer Trunk System Trust Fund) reimburse developers who construct large-capacity sewer lines. This ensures subdivisions get connected while the city maintains capacity for future use.
Strategic Franchise Expansion: Chesapeake recently approved an expansion of its Public Utilities Franchise Area to serve 24 parcels in an industrial park. By officially recognizing the area for municipal water/sewer, the city encourages businesses to locate there, reducing reliance on wells or septic tanks.
From these projects, a clear theme emerges: cities and developers often co-finance improvements. Because water infrastructure can be so capital-intensive, local governments leverage cost-participation agreements or specialized utility trust funds to spread out the financial load. This forward-looking, shared approach helps ensure secure water supplies, stronger wastewater handling, and less environmental strain.
Trend 5: Transit & Complete Streets
Another interesting trend is the push for “complete streets” and better transit options. While big highway expansions were common decades ago, recent city decisions underscore a shift toward multimodal infrastructure. Vehicles, bikes, pedestrians, and public transit are becoming more important:
Streetcar & Light Rail Extensions: Salt Lake City conveyed surplus parcels for an S-Line streetcar extension. The city partnered with the Utah Transit Authority to expand public transit in a busy corridor, reducing car dependence and promoting mixed-use development along the route.
Local Improvement Districts (LIDs): Portland frequently employs LIDs for street realignments, new sidewalks, pedestrian lighting, and cycle tracks. By forming a district, the benefitting property owners help fund roads and safety improvements. In return, the area often sees higher property values and more foot traffic.
ADA & Pedestrian Upgrades: In Fort Worth, a Community Facilities Agreement included not just historic brick pavement repair but also new 10-foot sidewalks, ADA ramps, and landscaping. This type of project takes a once car-centric corridor and transforms it into a safer, pedestrian-friendly space that serves residents, businesses, and visitors alike.
These projects show a growing consensus that building wide roads alone isn’t enough. Instead, leaders are prioritizing infrastructure designs that ensure everyone can navigate city streets conveniently and safely.
Conclusion
Infrastructure—whether funded by special districts, built on surplus land, anchored around stadiums, driven by upgraded water systems, or enhanced through complete streets—underpins how modern cities grow, evolve, and serve the public. By carefully structuring financing and requiring developer or stakeholder participation, municipalities can deliver big wins for residents, businesses, and the environment.
At ReZone, we’ll continue to track these developments and share insights on where local governments are forging new paths in infrastructure and land use. As always, we welcome questions, collaborations, and any feedback you may have on these trends.
Daniel Heller
daniel@re-zone.ai