In the transformation of urban villages, attention should be paid to the financial risks brought about by the expansion of floor area ratio. During the construction period, it is often necessary to expand the floor area ratio to achieve financial balance, but this will bring financial risks in the later operation, which we call a trap for two reasons: first, the lack of industrial and commercial investment during the construction period and the lack of a tax mechanism for the stock of commercial housing during the operation period, and the increase in fiscal revenue during the operation period. Second, the construction period will expand with the floor area ratio and the investment in high-intensity public service construction, and the operation period will increase the responsibility of public service fiscal expenditure.
To avoid this, there are three ways to avoid the floor area ratio expansion trap:
First of all, it is equipped with public welfare facilities with income. For example, the construction of affordable rental housing, convenient markets, charging station parking lots, cultural, sports and intangible cultural venues, etc., these facilities can not only provide public services, but also increase fiscal revenue.
Second, the construction of industrial and commercial business facilities. For example, exhibition e-commerce centers, office buildings, commercial complexes, standardized factories, etc., these facilities can provide rent and tax revenue, and further increase fiscal revenue.
Finally, the surplus of land transfer funds establishes industrial incubation**. The balance of the land transfer money after the investment in various retention and public infrastructure construction facilities, the establishment of industrial investment, and the incubation of investment according to the industrial plan, in addition to the formation of industrial agglomeration, increase employment and other social benefits, can also bring about an increase in corporate tax revenue and an increase in investment value-added fiscal revenue.
Through the above three methods, we can effectively avoid the trap of plot ratio expansion and realize the sustainable development of urban village transformation and urban renewal.