This is a pyramid scheme that only works until you run out of undeveloped land. Also, this is already done in the form of suburban sprawl. You generate a bounded one off income but end up burdened with yearly maintenance obligations that never end.

Instead of doing this, it would be far more logical to just charge for the services being provided in the form of a yearly fee proportional to the amount of land that is being occupied.

> pyramid scheme that only works until you run out of undeveloped land.

The whole point of a pyramid scheme is they don't create value.

Developing the undeveloped is a productive contibution to the economy. Solving the housing crisis is a productive activity

> this is already done in the form of suburban sprawl

You have to create high-density housing, apartments, and local amenities. Pulling expensive underground rail tlinto a group of suburban homes is a waste

> You generate a bounded one off income

keep them and rent them out

this reads like a strategy guide for a city sim lol

This assumes Governments want to make boatloads of money. Why would they?

Governments want to help their friends and hurt their enemies. Doing this almost never involves making money - sometimes and only sometimes it involves helping their friends make money.

In your example step 1 and 2 are fine but 3 is awkward. Selling or renting things doesn't make anyone happy. It's better to just give it away - there's no profit to be made but again - the point isn't profit.