Category Archives: Real Estate

Toronto: Florida to the Kees with Greater Portland Inc.

Oct. 17, 2015

Richard Florida

Richard Florida, Professor; Co-founder CityLab.com; Sr. editor The Atlantic speaking to our Greater Portland, Inc. group.

Our discussion of “The Next Urban Crisis”  at University of Toronto, Rotman School of Management was another highlight of my Greater Portland Inc. trip to Toronto Sept. 27-30, 2015. There we spoke with professor, author and CityLab co-founder Richard Florida as well as  Real Estate Developer, & Architect in City blogger Brandon Donnelly.  During this discussion Spacing Magazine editor Matthew Blackett  also shared some of the interesting insights I reported on in my Part 1 blog.

Richard Florida expressed his frustration with the Mayor Rob Ford era which declared that the war on the car was over and that the problem was those young, pointy-headed university folks. “In Toronto, everyone still thinks they have the right to drive,” he lamented.  “If there’s an urban crisis, it’s the suburbs,” he said.

Florida reminded us that: “Building urbanism is a lot more expensive than building sprawl” and “The new frontier is the old frontier in the center of the city.” He left us with three points to deal with the next urban crisis: 1)  Build more housing,and make it more affordable; .2)  Build more transit;  3)  Provide a livable minimum wage–reduce the huge bifurcation we see now.

Brandon Donnelly

Brandon Donnelly described the affordability crisis for families and a solution in mid-rise housing. Photo from The Guardian

Brandon Donnelly discussed with us some of the crisis in keeping housing affordable during Toronto’s fast-paced growth. There’s a pressure on prices re: low rise, but high-rise has stayed stable, he said.  He described an Avenues and Mid-rise Building study. “ We see it as a market to build more units for families who are priced out of single family homes,” he said.

He distinguished Towers 1.0 and Towers 2.0.  Towers 1.0, many built in the suburbs, did not take as middle class housing and became largely the affordable housing of today. Towers 2.0 is basically all ownership vs. all tenants in 1.0, he said.  He finds it an encouraging sign that anchor office tenants and retailers are moving into the city as well.

Mid-rise housing

This mid-rise housing was across from a string of parks similar to Portland’s Park Blocks and gets my vote for best place to live in Toronto. Photo by PlanGreen

Park across from mid-rise housing

This park was one of a string of parks across from the mid-rise housing above. It was centrally located on the way to the Distillery District. Photo by PlanGreen

Robert Reich

Robert Reich, former Sec. of Labor, UC Berkley Professor and prolific author.at the Rotman School auditorium. Photo by PlanGreen

On our way out, we had an unexpected opportunity to hear Robert Reich, who was doing a guest lecture at the Rotman School around his book, Saving Capitalism : For the Many, Not the Few. 

I was especially impressed by how many of our group stopped to listen to his talk.  “My aim is to shatter the myths that keep us from taking the action we must take, and to provide a roadmap of what we must do – to rebuild our economic system and restore our democracy.” Reich was saying.

There is  a “huge misunderstanding” that underlies  a false political dichotomy between the so-called “free market” and government intervention. “There is no choice to be made between the free market and government. Government determines the rules of the market. The real question is what those rules are going to be and who is influencing those rules and whether the market is going to be working for the vast majority as a result, or whether it’s going to be rigged in favour of a small minority.” Reich’s book was for sale at a table outside the open-sided auditorium where he was speaking.

At Rotman we had the opportunity to hear some of the most forward-thinking leaders of the day who are dealing with questions around the environment, housing, urbanism, equity, millenials, the creative class, public involvement and the economy.

Ryerson University

The Planning students who attended our reception at Ryerson University were interested in displacement, equity and resiliency issues. Photo by PlanGreen

It was a great segue to our reception and  “Sharing Best Practices between Portland and Toronto” session at Ryerson University Architecture School.  All of the students I met at the reception were from the Ryerson School of Urban and Regional Planning rather than Architecture.  Those students were looking for answers to rising housing costs, displacement, equity, brownfields, resiliency planning in an era of climate change, etc.  I stayed after the session to talk with them. Several promised to look at my blogs on mycoremediation and suggested that one of their professors might be especially interested. So far, no one has followed up but I’m still hoping to hear from them.

Jennifer Keesmaat

Jennifer Keesmatt was our featured evening speaker. Image courtesy of York University. http://yfile.news.yorku.ca/2014/11/06/chief-toronto-planner-discussed-urban-spaces-and-achieving-a-sustainable-healthy-city/

Chief planner Jennifer Keesmaat, is a longtime Toronto resident, a member of the Congress for the New Urbanism (like myself), and a pedestrian advocate.  She had been a principal in the Toronto planning consultancy Dialog prior to taking the job as Toronto’s top planner.   She is also an inveterate user of Twitter @jen_keesmaat–discreetly putting out these tweets while she was on a panel with Portland Chief Planner, Joe Zehnder:

Portland is seeking to create *greenways* throughout neighbourhoods to address stormwater issues. Think “greened” street medians.  Portland has met Kyoto carbon emission reductions, even while growing. “Your midrise is hi-rise for us.” Portland Chief Planner explains that 4 story bldings are causing consternation in his city. Wow. If only.

Mountain Equipment Coop in downtown Toronto

Mountain Equipment Coop in downtown Toronto installed an extensive green roof of 6,500ft.2 during the construction of the building in 1998. Photo courtesy City of Toronto

“I talk about Portland all of the time,” she told us.  We’re growing but our air quality is getting better – as a result of our green roof policy mitigating the heat island effect.  I cringed a bit to think that while Toronto passed the world’s first mandatory green roof program in 2010, Portland discontinued its Ecoroof Incentive in 2012.

In response to moderator Ann Marie’s question about green infrastructure and resiliency in the face of climate change, Keesmaat lamented that she has only three  people working on green streets, a superstar team, but only three.

She did add that Toronto is a city of ravines and that there is an ongoing Ravine Strategy currently being developed.  She will be holding her final Chief Planner Roundtable of 2015 (Dec. 15) on the topic of Toronto’s ravine network.  I did not get the chance to ask her about the re-naturalization of the Don River, but I plan to do that at the next opportunity–maybe via Twitter!

Universal Tax Abatement for Downtown Portland

Testimony given May 19, 2014  to Strategic Advisory Committee on the West Quadrant Plan

Neighbors in the West End portion of downtown Portland are tired of walking by block-long stretches of surface parking lots while some of our historic buildings are razed for redevelopment. One solution to this problem that the City of Portland should seriously consider is taxing land at a higher rate than buildings.

Taxing land and buildings at the same rate per square foot means that as long as you don’t put any buildings on your land, your tax bill is going to remain relatively low. If you’re a speculator, this means that you only need a modest amount of revenue (say, a few bucks a day from people driving into the city for work or to go shopping) in order to sit on that land indefinitely.  Or you might hold out until someone comes along offering your “pie-in-the-sky” price.  Either way, the effect is to keep the land out of the hands of many of those with genuine interest in putting it to productive use.

By taxing land at or near its development potential, however, owners of land being used at less than maximum productivity would be paying a disproportionate amount in taxes in order to keep it that way.

Aside from the obvious goal of raising money to pay for public services, we levy taxes

  • to discourage a particular behavior in favor of another (taxes on cigarettes and alcohol discourage consumption and thus promote lower health care costs), or
  • because a given resource is scarce while demand for it is high (i.e., the gasoline tax).

But if the city is trying to encourage development—and to attract the 70,000 more downtown residents it seeks by 2030—it hardly makes sense to place the greater tax on development behavior.

A Good Illustration: The block between SW 11th & 12th and SW Taylor and Yamhill that the

Parking Lot at Rear of Medical Dental Building pays 5x less taxes/sf than the building.

Parking Lot at Rear of Medical Dental Building pays 5x less taxes/sf than the building.

Medical Dental Building at 833 SW 11th Avenue (built 1928) sits on provides a good illustration. It is a block with a 10 story commercial building, a 2 story parking garage and a surface parking lot.

When you look closely at the property tax bill for each, it becomes clear that the conventional property tax deters development and risk-taking.

  • The surface parking lot spans 20,000 sf, and its owner pays $1.33 per-square-foot of land in annual property taxes to the city.
  • The 1928 parking garage on the same block spans roughly half the area (10,000 sf), and despite the lot’s structural improvements, pays only a bit more than the surface lot in property tax —$1.37 per-square-foot of land.
  • The Medical Dental Building (which occupies 10,000 sf of the block), however, pays $6.13 per-square-foot of land—a rate almost 5 times higher than the surface parking lot.
12 West pays 42-45x more than the parking lot diagonal from it.

12 West pays 42-45x more than the parking lot diagonal from it.

An illustration that takes into account newer construction is the corner of SW 12th & Washington where 1227 SW Washington, aka 12 West (2009), is assessed $59.90 per sf of land compared to the surface parking lot diagonally across from it that is assessed only $1.42 per sf of land occupied[i]. 12 West has a tax liability that is 42x that of the surface lot.

Parking Lot Diagonal to 12West pays 42-45x less than 12West

Parking Lot Diagonal to 12West pays 42-45x less than 12West

 

 

 

 

 

 

 

This is completely backwards. From the city’s perspective, the Medical Dental building and 12 West are the best and most preferable uses of land in their respective locations, while the surface lot is the least. And yet, looking at the tax figures one would think exactly the opposite. By simply taxing land at a higher rate than improvements, owners would be motivated to maximize the productivity of land. Parking lots would still exist of course, but they would be condensed into above- or underground garages rather than surface parking lots. In this way, by removing the penalty for development, two-rate taxation is actually a form of economic stimulus.

But two-rate taxation is about more than encouraging dense urban development and reducing sprawl. As Rick and Walt Rybeck note in Break the Boom and Bust Cycle http://bit.ly/R1CPVm, two-rate taxation also addresses the root cause of the boom-and-bust cycle of the real estate market:

Higher land taxes discourage land speculation by making it less profitable. Prior to the Great Depression, there was a nationwide real estate boom and bust. Not surprisingly, land values in major U.S. cities declined drastically. Between 1930 and 1940, land values declined in New York, 21 percent; Milwaukee, 25 percent; Cincinnati, 26 percent; New Orleans, 27 percent; Cleveland, 46 percent; Los Angeles, 50 percent, and Detroit, 58 percent. But Pittsburgh adopted a two-rate property tax in 1914. As evidence that this reform reduces speculation, Pittsburgh’s decline in total land values was only 11 percent between 1930 and 1940.

After increasing the tax differential between land and building taxes in the late 1970s (land was taxed at a rate 5.77 times higher than buildings), Pittsburgh also saw significantly increased development activity at a time when most cities its size were experiencing declines.

There are obstacles to implementation. Current law requires state enabling legislation for the two-tier land tax that I am suggesting, but there are indications that Gov. Kitzhaber would favor that.

Appendix – from Portland Maps

833 SW 11th Ave. – Medical Building

$61,291.51 taxes on 78,148 square feet on 10,000 sf of land or $6.13 sf of land

Market Value $4,976,640.00
Assessed Value $2,542,330.00

837 SW 11th Ave. – structured parking lot

$13,751.20 taxes on 20,000 sf on 10,000 sf of land or $1.38 sf of land

Market Value $1,251,810.00
Assessed Value $570,390.00

804 SW 12th Ave – City Center Parking on SW 12th between SW Yamhill & Taylor

$26,664.86 taxes on 20,000 sf or $1.33 sf of land

[i] I was not able to easily find the taxes paid on the 3 parcels that make up this corner where a City Center Parking lot operates because Portland Maps just said “No address is avaialble.” So I used the tax figure for the grassy lot next to it at SW 11th & Washington which is $1.42 per sf. This figure is higher than that for the City Center Parking lot at SW 12th & Yamhill which is $1.33 per sf. If $1.33 per sf is used, then 12West is assessed 45 times more per sf than the parking lot.

I have been a friend of Rick Rybeck (cited above) and admired his work for a long time.  But, I want to acknowledge that I borrowed the approach of looking at individual parcels and some of the language above from the Streets MN blog Tax Land, Not Buildings by Chris Keimig.  Thanks, Chris!

Lacamas Northshore Development – PlanGreen In the News

The blue is business park, gold is large lot SFH, orange shades are multifamily, pink is commercial and green is open space. A 3-lane arterial will replace the 2-lane road.

The blue is business park, gold is large lot SFH, orange shades are multifamily, pink is commercial and green is open space. A 3-lane arterial will replace the 2-lane road.

Why does a big re-zoning decision in Camas, a small town in the Columbia Gorge, matter so much?  Find out in the newspaper coverage and commentary in these three newspapers:

  • The Oregonian/OregonliveCamas approves 460-acre development near Lacamas Lake despite objections at packed public hearingSeptember 10, 2013
  • The ColumbianCamas approves a 460-acre development, September 3, 2013
  • Camas Post RecordCamas approves Lacamas Northshore development, Tuesday, September 10, 2013
PlanGreen's Mary Vogel & Carolyn Foster

PlanGreen’s Mary Vogel & Carolyn Foster testified before Camas City Council on Sept. 3, 2013.

In the Camas Post Record, I wrote:  If Camas really wants to create a “sustainable, walkable community, mixing single- and multi-family housing, businesses and commercial development with parks and bike paths,” the zoning would accommodate the kind of development shown in the Commerce Center Templates (http://www.gvmc.org/blueprint/CommerceCenters.shtml )my New Urbanist colleagues did for the Grand Valley (MI) Metropolitan Council. The Kellogg Foundation funded these templates in order to help make Michigan more competitive in attracting future industry and the young people who will work there.

The zoning that the Camas Council approved does NOT support the kind of mixed use in the templates, rather it segregates each type of use and separates the housing and commercial from the industry or business park with a major arterial. While I applaud the denser housing, I believe the developers may be building the townhouse without the town by putting such housing so far from existing services and shops. Even if this area were built out with 3000 homes, that would not be enough to support a grocery store or other essential services that people want to walk to–for their health and the health of the planet.

It seems Camas planners HAD proposed mixed-use zoning for at least part of the area, but that zoning got nixed by the Grove Field airport issue. Regardless, that would not have overcome the core problem with seeking to build the area now—LEAPFROG development.

To become truly sustainable and truly attractive to the market of the future, Camas should be reproducing its delightful grid of downtown streets in areas adjacent to downtown, rather than 3.5 miles away from shops and services. I have walked the Pacific Crest Trail through the entire state of Oregon, but I would not likely walk 3.5 miles along an arterial street to get to basic services on a regular basis.

Yes, they are planning a new shopping center/commercial area segregated from the housing along the shore of Lacamas Lake, but there will not likely be enough density to support that commercial. There is a far better way to zone for a walkable community!

Camas Council: Consider Trends Before You Decide!

Below is the Draft Testimony of Mary Vogel,CNU-A, principal of PlanGreen, regarding the Lacamas Northshore proposal that Carolyn Foster covered in her blog earlier in August.

I know that you are concerned with the city’s economy—in the long term, not just today.  I suspect that you believe that the proposed master LN Concept Plan Mapplan will help the city’s economy.  But I want you to consider some future trends before you make up your minds.

Maureen McAvey, Senior Resident Fellow for the Urban Land Institute (ULI) in Washington, DC  was in Portland last year to discuss the ULI publication “What’s Next? Real Estate in the New Economy“.  The event notice read: A paradigm shift is unfolding over the course of this decade, driven by an extraordinary convergence of demographic, financial, technological and environmental trends. Taken together, these trends will dramatically change development through 2020. My notes indicate that McAvey said:

  • More single-family homes are being occupied by renters, changing the feel and politics of suburban communities
  • Seventy-five percent of households in the Portland area do not have children under 18
  • 47 percent are non-families
  • Twenty-somethings on tight budgets prefer places to congregate with friends — in parks, bars, restaurant clusters and building common areas — and can tolerate smaller living spaces.

Arthur C. Nelson, one of the nation’s most prescient housing market researchers, says declining homeownership, tighter lending standards, a sell-off of single-family houses by the nation’s fastest growing demographic — senior citizens—and even rising household sizes due to more multigenerational living will have an impact on the market you may be trying to attract with the single family home portion of the plan.

Nelson, professor of city and regional planning at the University of Utah, reports that the US faces a massive oversupply of large-lot single family houses and an undersupply of multifamily units. By 2020, Nelson sees 1.5 to 2 million homes from seniors coming on the market, and between 2020 and 2030, there will be a national net surplus of 4 million homes that they cannot sell. And Nelson believes those are conservative figures for what has been dubbed “The Great Senior Sell-Off.”

The 2009 American Housing Survey (AHS) found that 28 percent of houses are attached, 29 percent are detached on small lots, and 43 percent are detached on large lots. Three studies — by National Association of Realtors, the Robert Charles Lesser & Co. (RCLCo),USPreferencevSupplyHouseType and Nelson — all found a nearly identical, imbalance in US housing supply and demand.  Only 24 to 25 percent of Americans would prefer to live in large-lot single-family houses (see graph “Housing preference versus supply”).

Consequently, there’s an oversupply of approximately 28 million units in what developer, professor and author Christopher Lineberger calls “the drivable suburbs.”  Attached housing and small-lot housing, on the other hand, are undersupplied — by about 12 million and 13.5 million units, respectively.

Millennial Renters Survey

Source: RCLCo Consumer Survey

This imbalance is likely to grow in the years to come, reports Nelson. The generation that is currently moving into the housing market — Millennials — is the most urban-oriented cohort since World War II.  Melina Druggall with RCLCo reported at a National Association of Home Builders conference in January 2011 that 81 percent of Gen Y renters want to live in an urban setting.  (Wall Street Journal reported that number as 88% at that time and they were quoted in numerous sources such as Better Cities & Towns and Grist).

Ninety percent of the increase in the demand for new housing will be households without children, and 47 percent will be senior citizens (the latter resulting from the rising tide of Baby Boomers who started turning 65 last year). Both of these demographic groups—the Millennials and the Boomers—lean toward multifamily and away from large-lot SFH.

Referring to a recent National Association of Realtors (NAR) finding on percentage of households that prefer to live downtown or in mixed-use city or suburban neighborhoods, Nelson says “Back in ‘70s or ‘80s, people wanted drivable suburbs. Now 70 percent want to walk to discernable destinations, from transit to grocery stores. This wasn’t the case until recently.”  Nelson believes the most popular locations will be mixed-use, walkable, transit-friendly neighborhoods.

This Lacamas Northshore master plan is being portrayed as both walkable and mixed-use, but the concept plan I’ve seen so far indicates to me that it is not.  The zoning proposal shows a segregation of uses. Business parks, by their very nature, are drive-to!  The single-family and the multi-family seem quite segregated from each other and all are segregated from the shopping area.

Amazon Headquarters image

Rendering courtesy of NBBJ. Amazon Headquarters adjacent downtown Seattle, WA

As far as economic development is concerned, there is increasing evidence that the kind of high tech, light industrial firms that you hope to attract are choosing to locate near where their employees want to live.  Consider the choice of Amazon to locate adjacent to downtown Seattle and Adobe Systems to locate in downtown San Jose.

I hope you will take into account the “extraordinary convergence of demographic, financial, technological and environmental trends” that ULI talks about before making your decision on this zoning change and the future development that it presages.  I agree that a master plan with changed zoning is what is now most desirable for this area–but NOT the kind of segregation of uses we see in this plan. I urge you to delay approval of a zoning change–until you can get it right!

City Creek Center as Biodiversity Engine?

DSCN0940June 2013 – City Creek Center was started in 2003 by the real estate investment arm of the Latter Day Saints. The intent was to bring back Salt Lake City’s Main Street in a downtown that was losing out to the suburbs. It’s a mixed-use project that includes retail shops, office space and 435 condominiums and 110 apartments. No public subsidy was received so the project does not include “affordable housing.”

It’s also a green roof project in that its 90,000 square feet of plantings, courtyards, roof gardens and water features cover a 6000 space parking structure. What a waterproofing challenge!

City-Creek-CenterTRAX

Both sides of the first Main Street TRAX stop are bordered by the Center. Photo courtesy of UTA.

“The things the LDS Church is doing with City Creek Center are going to be a positive boost to walkability and transit in Utah” according to “Faith in Action: Communities of Faith Bring Hope for the Planet,” a national report of the Sierra Club.  The Center brought more residents, employees, shoppers and diners to use the light rail system called TRAX.

Opening in 2012, with final touches added in 2013, this downtown revitalization project took 10 years to complete.  With development continuing throughout the crash in real estate, it was one of the only privately-funded projects of its size in the US that continued to build over the last few years. I happened to meet the Portland-based ZGF architect who was their project manager for the residential portion this week (at an event in Portland, first week of June 2013) and she confirmed how important this project was to her firm.  It also kept 2000 others employed throughout the development cycle and now employs over 7000 people.  It had about 16 million visitors in its first year of operation.

You can read more about the economic development aspects of City Creek Center elsewhere e.g., Salt Lake Tribune.  What I’m going to look at here is what role City Creek Center plays in putting Salt Lake City on the path to becoming the engine of biodiversity that Richard Louv exhorted CNU 21 attendees to work towards in our work.

DSCN0967

Although I’m not a fan of shopping centers, the creek kept me coming back day-after-day

City Creek Center was actually in the middle of my route to and from the Grand America Hotel where CNU21 was held from May 29 to June 1, 2013. Even though I’m NOT a fan of shopping centers, once I saw the creek there, I happily sauntered through it every day of my five-day stay.  It gave me a taste of what I was missing in the nearby canyons as I made my way to The Grand America each day.  The creek stimulated for me feelings of peacefulness—and a desire to get out into the real thing.

I recognized immediately the trees native to this area: Populus tremuloides – aspen; Betulae occidentalis – water birch; and Prunus virginiana – chokecherry. They were planted along a lovely creek that bubbled through boulders of native sandstone.  Below the canopy level, there were native sedges and rushes and shrubs– and a few plants I didn’t recognize as native. Tough non-native shrubs were brought in to overcome the trampling the natives were experiencing.

DSCN0966

Developers made an extraordinary effort to re-create the iconic creek that was so critical in Salt Lake City’s founding

I appreciated the fact that the developers named this center after a natural feature that used to be there—AND that they made an extraordinary attempt to re-create that natural feature in their development. The creek flows across three city blocks, and drops 37 feet in elevation from beginning to end. Some 600 boulders were brought in from an area near Park City and 627 native trees from nurseries in Oregon and Idaho.

As it meanders along pedestrian walkways and cafes, the recreated creek features three waterfalls and a fountain with 50-foot-high jets. The creek varies in width from one foot to 28 feet and from four inches to 18 inches in depth.  Some parts of the creek were stocked with Bonneville cutthroat trout and rainbow trout and those fish are now reproducing.

A 17-foot waterfall at Regent Court cascades at 2,500 gallons per minute over 14 ton Utah sandstone boulders.  The landscape is actually comprised of 13 different water features that recirculate their potable water. According to Ross Nadeau, Landscape Architect project manager, “We looked at utilizing City Creek itself and then at the de-watering water from the site, but we couldn’t make either work because of the filtration costs.”

DSCN0970

The creek serves as a draw for shoppers, employees and residents

City Creek Center received a LEED ND rating of Silver for its multiple efforts to be sustainable.  “The heart and namesake of our development is the re-creation of City Creek, which many years ago used to run through the downtown area of Salt Lake City,” said Val Fagre, former City Creek Reserve project manager—now retired. The craftsmanship put into building the creek is extraordinary.  And I can vouch that the creek serves as a draw for shoppers, employees and residents of City Creek Center. In the two times I ate at the Food Court there, I went to extra effort to sit near the creek. The Center also seems to attract plenty of young people to hang out on Friday and Saturday nights.

Nearby, City Creek Canyon has been protected from the beginning of the city’s history (over 150 years) to protect drinking water and wildlife habitat.  According to students in a class project in General Ecology at Westminster College:

GlacierLily

Glacier lilies are found along the City Creek Canyon Nature Trail

By learning the names of the native trees and shrubs that support the wildlife in City Creek Canyon along the nature trail loop, one can see which plants may be useful in backyard landscaping. Native plants introduced into the urban landscape around houses and yards help wildlife to survive in the city and help conserve water.

Based upon the students’ observations (I didn’t get there), City Creek Canyon could qualify as an engine of biodiversity.  But could City Creek Center qualify?

citycreekpark-(2)

City Creek Preserve could help City Creek Park become a true gateway to City Creek Canyon wildlife corridor–as well as give it a role in flood protection. Right now, it’s a concrete ditch (lower right). Photo courtesy of SLC Parks.

I missed the small signs that interpret the plants and fish of City Creek Center so it was not apparent to me how it was being used to influence further biodiversity–but the signage is there.  Does the experience of being in a pleasant environment lead people to go home and attempt to mimic what they saw while shopping or dining? Perhaps the center could be more proactive and run some “naturescaping” classes and host some native plant sales by local groups.  The project I would most like to see is for City Creek Preserve to work with the City’s Department of Parks and Public Lands to restore City Creek Park, to a more natural condition making it a better gateway to City Creek Canyon.  A stream buffer and wetlands could be quite important there to prevent or alleviate flooding in the future, e.g., heavy snow melt flooded State Street in 1983. The City is already undertaking some watershed restoration projects funded by Chevron as mitigation for an oil spill.  Hopefully, it won’t take such a negative event for City Creek Preserve to offer such assistance in order to increase its role as a biodiversity engine.

The boulders came from Brown’s Canyon quarry, a 100 year-old business near Park City.    Does that quarry have a biodiversity management plan (a BMP for quarries developed by World Wildlife Fund)? If not, what role should City Creek Preserve play in suggesting they start one?  Of course, such a suggestion would carry more weight before the stone was purchased.

The developers took their project through the pilot phase of LEED ND.  But did they consider Sustainable Sites, a system focused on measuring and rewarding a project that protects, restores and regenerates ecosystem services – benefits provided by natural ecosystems such as cleaning air and water, climate regulation and human health benefits.

I believe City Creek Center would score well in the “Human Health & Well-being” category.  But I’m still concerned about all of the water and power used in this engineered ecosystem. Tell us what you think below: Does City Creek Center pass muster as a biodiversity engine for Salt Lake City?  Why or why not?

 

Healthy Economy, Healthy Environment: Industry and the River

P1080737

Environmental Workshop Comp Plan Update at the Native American Center, Portland State University

I went to the session the Portland Bureau of Planning and Sustainability had for the environmental community last night (April 3, 2013) on the current Working Draft of the new Comprehensive Plan. This session was held at the Native American Center on the Portland State University campus at the behest of two members of the Watershed and Environmental Health Professional Expert Group (PEG): Judy Bluehorse Skelton and Claire Carder. Judy gave a tour of the student-planted and maintained green roof atop the Center and someone else led one on the other green infrastructure on the campus.

P1080740

Environmental planner, Shannon Buono, and economic development planner, Steve Kountz, presenting the dilemma between industrial expansion and environmental protection.

At the session on “Healthy Economy, Healthy Environment”, I came to the conclusion that more of us who care about the environment need to be

  1. praising manufacturers, like Toyota, who are willing to change their ways to restore the environment at their facility along the river (Please see my blog on Toyota.);
  2. pushing the City to recruit more companies like Toyota and giving them suggestions from our own reading and research;
  3. exposing industrialists in North Portland who are unwilling to work towards creating a healthy environment along with the jobs they tout;
  4. asking lots of questions about proposed tax breaks for brownfield redevelopment and coming up with acceptable solutions.
  5. supporting North Portland residents who are stewarding and restoring parks such as Pier Park   that can become part of a wildlife connectivity corridor if linked to other natural areas.

I sent planners links to two recent articles by Richard Florida and Neal Peirce exploring “The Uselessness of Tax Incentives for Economic Development”. Both were based on a New York Times in-depth series on the topic. I already got a response from planner Steve Kountz distinguishing tax breaks for land from the tax breaks for business that the NYT series was largely about.  I hope that he will put that response below in the comments.

P1080739

Image highlighting the location of most of Portland’s industrial lands–along the Willamette and Columbia Rivers.

Otherwise, we will see the continued erosion of what greenspace is left at the confluence of TWO great rivers–the Columbia and the Willamette–an area that is critically important to wildlife. Already, planners propose to take at least a portion of 800 acres of golf courses and most of West Hayden Island into industrial land. Many of us said we preferred that the City push the redevelopment of vacant brownfields first, but the difficulty Steve pointed out was cost. He encouraged us to read the City’s Brownfield Assessment report, but it seems the solutions boil down to tax incentives. Most of the group were wary about those as well.

Other solutions for wildlife that were discussed were green or ecoroofs  atop factories and other facilities and bioswales  along parking lots and roads. In its North Reach River Plan, the City has proposed the Willamette Greenway Plan be extended through the industrial corridor, but industry pushed back (see Toyota link above).

Please use this link to send the City your own comments. They are due by May 1,2013 but don’t delay until then.  Do it today!

What’s Next Portland? Real Estate in the New Economy

A version of this blog first appeared in the Portland Business Journal shortly after the ULI What’s Next event on March 7, 2012.

The Oregon Chapter of the Urban Land Institute promoted their breakfast seminar based on ULI’s most recent publication: “What’s Next? Real Estate in the New Economy“: A paradigm shift is unfolding over the course of this decade, driven by an extraordinary convergence of demographic, financial, technological and environmental trends. Taken together, these trends will dramatically change development through 2020

Walking over to the event at the Nines Hotel, I thought about what I hoped to learn.  ULI is a national, even international, thought leader in the real estate industry.  The advertised intent of the seminar was to examine how our region is postured to remain competitive in the 21st century.  I had more short term goals.  I wanted to know how ULI and local business leaders foresee the Portland region and the state getting out of the building slump (and consequent unemployment for planners, urban designers and other built environment professionals) we have been in since 2007.

From an examination of name tags, the audience for this event were largely lawyers, a few planners and a few commercial real estate consultants.  I didn’t see any developers that I recognized—albeit my recognition field is limited.

After a string of men from ULI’s national office in Washington, DC offering their wisdom over the past two years, it was refreshing to have a woman as keynote speaker.  Maureen McAvey started off her talk with the proposition “This is not just another real estate cycle but a fundamental change.”  She went on to make her case through a litany of demographic factors she claims are leading to new trends, e.g.:

  • Gen Y is the largest generation in American history—80 million strong and still growing and
  • The Boomer generation is living longer–“If I retired at 65 and lived to my mother’s age—98—I’d have more than 35 more years to do what?”

I had been wondering when ULI would jump on the jobs bandwagon in a big way. This was the event!  Both in her presentation and in the book, McAvey asked “Where the hell are the jobs?” (resisting her editors plea for more sedate wording).  Even lawyers are outsourcing parts of their business as never expected.  Social Security in 1945 each worker was supported by 42 workers, in 2009 just 3.

Lumina Foundation found that young people in US do not have enough education to compete.  Between now and 2018 Oregon is expected to create 59.000 jobs – but there will not be enough workers with post secondary education to fill those job needs.  America is significantly de-funding its education.

McAvey believes there are some bright spots.  Business and professional sectors and education of all types as well as health care and medical have grown phenomenally. “America is still wildly entrepreneurial and leads in venture capital” she claims.  This is partly due to the creative culture and substantial capital reserves.

The Housing Outlook she presented was similar to what I have heard for the past few years: Apartment living is on the rise. Six million new renter households may be formed between 2008 and 2015, requiring 300,000 new units annually compared with just 100,000 produced in 2010. “But can the industry deliver that amount for the rents at which people looking to rent can afford?” she asked.  Meanwhile, more single-family homes are being occupied by renters, changing the feel and politics of suburban communities.

Seventy-five percent of households in Portland do NOT have children under 18; 47% are non-families, she said. Twenty-somethings on tight budgets prefer places to congregate with friends—in parks, bar scenes, restaurant clusters, and building common areas—and can tolerate smaller living spaces, McAvey claims.

The Regional Panelists consisted of Jill Eiland, Corporate Affairs Manager, Intel Corporation; Keith Leavitt, General Manager of Business Development and Properties, Port of Portland; Sandra McDonough, President and CEO, The Portland Alliance, Wim Wiewel, President, Portland State Universtiy

McAvey went on to ask a softball question of most of the panelists—and most  responded in predictable ways, e.g., Keith Leavitt feels that we need to continue and expand efforts to export wheat and other grain to the world as well as electronics.  “There is a boom in new port developments along lower Columbia River,” he said.”

Sandra McDonough believes that we are hampered by tax policy, physical infrastructure and regulatory framework – a lot of it from the 70’s [referring to Oregon’s land use laws]. “We do not have enough sites for new industrial users,” she maintains.

Wim Wiewel feels we need to move beyond the sad state of education funding from legislatures (not only here, but across the country) and partner more with industry—and with local government.  He was excited to announce “We are working with the Mayor and the County on an Urban Renewal Area for Education.”

McAvey’s question for Jill Eiland was a little more challenging.  “Is Intel going to follow Amazon’s lead and start building highly urban campuses?”

Although I spaced out during Eiland’s answer, she later told me that “Intel has now invested more than $20 billion in Oregon since 1974.  We continue to invest and grow our manufacturing and R&D capacity here.  The Hillsboro site remains Intel’s largest and most comprehensive site anywhere in the world.”  I interpret that to mean don’t expect Intel to move into downtown Portland, or even downtown Hillsboro, anytime soon.

I heard recently that Metro Council Members were cautioned not to talk about climate change.  Governor Kitzhaber and Mayor Adams didn’t mention it in their recent State of the State/State of the City speeches at City Club either.  It seems that ULI got that memo too.

I was a bit baffled to attend an event on trends that made no mention—only guarded allusion to—the two big trend topics of the day in my world: climate change or growing income inequality!  While ULI played up this event as being about a paradigm shift, their Oregon panel members gave only predictable answers that did not reflect much awareness of that shift–none of that Oregon leadership that we witnessed in the last century.  It would seem that we are resting on our laurels rather than embracing the shift. I left with more questions than answers—but eager to read the copy of “What’s Next? Real Estate in the New Economy” that ULI so generously provided to attendees.

Mary Vogel is founder and principal of PlanGreen, consultants on walkable urbanism.  She is a Board Member and Advocacy & Alliances Chair of the Congress for the New Urbanism Cascadia Chapter where she helps to shape climate change policy.  She is also a member of the progressive business alliance, VOIS.