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The idea of planning obligation has been taken intopractice for a period of time. People and the governmentdon''t exactly know what it is and how to use it properly.The study first defined the planning obligation from severalpoints of view and then used it to be the base concept onthe developing of an Industrial and Business Park which is anew policy in Taiwan. The study also examine the situation of execution of thenew policy in order to know the problem of the negotiationsof planning obligation. The main problem is the mechanismwhich makes negotiations between the government and thedeveloper doesn''t work. The study gave some suggestions tomake it work better. Under the hypothesis of the negotiation mechanismworking, the study built a set of models to calculate thereasonable planning obligation. One is to calculate how muchmoney the developer could earn in windfall in thedevelopment. The other is to calculate how much social costpeople or the government would pay for the development. Thegovernment should ensure the social must not pay anythinginto the developer''s pocket, on the other hand he shouldalso promise the developer could earn reasonable benefit. Sothat the developer would be willing to develop and thesocial could take some advantage. The calculation modelscould give the local government some information whilenegotiations, and maintain social justice. The models wasbuilt in the proving of the present value model, and set NPVas the standard of the planning obligation. Bycapitalization, the planning obligation could be implementedby different types, e.g. Donation or construction ofinfrastructure at any time. It can make the planningobligati on more flexible and useful. At last, a selected case, Tainan Ren-De Industrial andBusiness Park, was tested by the models. The solution of thereasonable amount of the planning obligation should bebetween 1,286.21 million and 2070.62 million NT dollars''NPV, but the regulation and the local government asked only28.23 million. It is unfair and unjust for the localgovernment to do so, because the social will pay the socialcost, and it will become the developer''s benefit.
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