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Posts about Christopher Leinberger

Development


In fringe suburbs, has economics trumped the appeal of new?

The recession and the burst of the housing bubble have stopped development in many fringe suburbs. With many urban neighborhoods on the rise, some suggest that fringe suburbs are on the decline. Has simple economics surpassed the appeal of "new" in the hinterlands?


Photo by Mark Strozier on Flickr.

There's been a lot of chatter around the blogosphere about Christopher Leinberger's New York Times op-ed that I think really hits the nail on the head when it comes to the issue of what's ahead for fringe suburbs.

Basically, the hypothesis presented is that fringe suburbs are headed downward, and I think this piece of evidence is really the most damning:

Many drivable-fringe house prices are now below replacement value, meaning the land under the house has no value and the sticks and bricks are worth less than they would cost to replace. This means there is no financial incentive to maintain the house; the next dollar invested will not be recouped upon resale. Many of these houses will be converted to rentals, which are rarely as well maintained as owner-occupied housing. Add the fact that the houses were built with cheap materials and methods to begin with, and you see why many fringe suburbs are turning into slums, with abandoned housing and rising crime.
Leinberger goes on and cites several examples of urban neighborhoods that have transformed from slum to hip in recent history: Capitol Hill in Seattle; Virginia Highland in Atlanta; German Village in Columbus, Ohio; and Logan Circle in Washington.

I don't know much about Capitol Hill or Virginia Highland, but I do know something about Logan Circle and German Village. One very important (and I think non-trivial) quality that they share is that they both have a high quality, durable housing stock that has held up very well, given its age, all things considered.

When I think about what made cookie cutter houses in suburbs appealing to people, in addition to the square footage and the yards and the school systems, I really suspect that one of the things that people were drawn to was the absolute "newness" of everything. People love having new stuffnew appliances, new counter tops, new floors. When stuff is brand new, it's almost guaranteed to be in style. When it's brand new, it's not in need of immediate repair. There's a lot to like about brand new.

The problem though, as Leinberger notes, is that fringe suburbs were literally built on the cheap. They may have looked nice initially, but the drywall they used to throw up houses in Prince William County is not the same as the brick they used to build rowhouses in Dupont Circle. At the time, the appliances they put into new suburban homes might have been nicer than what was in old urban houses, but appliances can easily be replaced, structures can't.

Around DC, a lot of old rowhouses have gone through the process of renovationsome have gone through many renovations since originally being built. The interiors have been gutted, redesigned and rebuilt, but the physical structure is generally the same. These houses were built to last, I can only imagine what a cookie-cutter house on the suburban fringe might look like in 100 years. The rowhouses in DC that have been re-built look beautiful, easily as nice as what got built in the suburbs during the boom.

At one point, the suburbs looked so much "nicer" because that's where the building wasthat's where stuff was brand new. That's not necessarily true anymore. Now, some of the newest, shiniest stuff is right in the heart of the city.

I was reminded of this when I saw this article in the Plain Dealer last month. The author makes the case that there's more demand for housing in downtown Cleveland than the market can keep up with. A lot of folks will use this as evidence of a downtown renaissance, I think it says that people are no longer afraid to live downtown (something that was true in Cleveland for many years) but I also suspect it has something to do with the quality of downtown housing.

While it seems true that downtown Cleveland is doing well, many other urban Cleveland neighborhoods are not doing well at all. The apartments and condos popping up downtown are all brand new, beautifully renovated spaces. The houses in Cleveland's urban neighborhoods, on the other hand, are much lower quality. Compared to Washington's rowhouses, they're downright terrible. I suspect that many of Cleveland's houses are also below replacement value. The only hope is to knock them down, and that's exactly what's happening.

When I studied home prices in Cleveland a few years ago (pdf), I found that while downtown was in fact the neighborhood in the city with the highest prices, there was nevertheless a positive relationship between home price and the distance from the city center. In other words, the farther from downtown you went, the higher the price of homes. It was "drive til you qualify" in reverse.

I think the future of suburbs as Leinberger imagines them is going to look like some of Cleveland's neighborhoods today - Hough, Mount Pleasant, Cudellplaces with generally poor housing stock that isn't worth fixing up. Places where crime is frustratingly high, where most of the housing that isn't vacant is renter-occupied, and where few are willing to make any investment.

Is it true to say that millennials and baby boomers have a taste for urban living? I think there is good evidence to support that theory, but it's clearly the case that they don't want to live just anywhere in the city. Nobody wants to live in a slum, and the type of homes that people want has to meet at least a certain threshold of quality.

In high-cost cities, like DC, that's not so hard to pull off. A $200,000 rowhouse rehab might be well worth the cost when you can turn around and sell the house for half a million or more. A similar job simply doesn't make any financial sense in a city like Cleveland. In fact, the Plain Dealer article above specifically says that developers aren't building in downtown Cleveland without government incentives because the rents are too low to support the kind of investment they need to make.

I think the more realistic assessment of suburbs and cities is that some suburbs will see a precipitous decline, some urban neighborhoods will experience a renaissance, and the degree to which each happens will be highly dependent on local market conditions. In other words, it will happen, but it won't be as clear cut as the magazine articles might lead you to believe.

Crossposted on Extraordinary Observations.

Development


Beauregard Corridor discusses benefits of walkable places

People who live near the Beauregard Corridor in Alexandria's West End are concerned about the impact of the BRAC-133 project, and continuing long-term urbanization, on traffic, noise, pollution, and the character of their neighborhoods.


The Beauregard Corridor Stakeholder Group. Photo by the author.

After their disastrous experience with BRAC, which will bring about 6,400 Defense Department employees to the office buildings under construction to the Mark Center without adequate transportation improvements, residents and city officials want to make sure any future development is done right.

Creating a walkable urban experience is considered by many the best option for smart growth.

While the five largest property owners in the area are working together on a multi-year plan for higher-density, mixed use projects aligned with transportation improvements, residentsand anyone who drives through the areawill likely face huge traffic tie-ups until those new projects are implemented.

At a Jan. 31 meeting of the Beauregard Corridor Stakeholders Group, Donna Fossum, chair of both that group and the Alexandria Planning Commission, said when the new BRAC office building opens in eight months, "everyone's lives will change."

To put the developers' proposals in context, Fossum invited Christopher B. Leinberger of the Brookings Institution to give a presentation at the Jan. 31 meeting on the benefits of creating "walkable urban places."


Leinberger. Photo by the author.
According to Leinberger, there are two main options for development: "drivable suburban," in which housing, retail, and office buildings are all separate and connected by roads, and "walkable urban," where people have access to transit and can easily walk to shops and restaurants.

The "drivable suburban" model contributes to sprawl, which creates lots of problems, including long commutes, economic segregation, higher levels of greenhouse gas emissions, higher energy use, and even increased rates of obesity. The highest levels of foreclosures occur in the outer suburbs Leinberger says, because "we built too much of the wrong product in the wrong location."

The pendulum began to shift in the mid-1990s, he says. Surveys show 82 percent of the "millennials," people born in the period 1980-95, want to live in walkable urban places, like Arlington and Dupont Circle.

Metropolitan Washington has 23 existing (and 16 emerging) "regionally significant places," including walkable urban places like downtown DC, "downtown adjacent places" (such as Dupont Circle and Georgetown), suburban town centers (Bethesda and Silver Spring fall into this category), places where suburban strip malls have been redeveloped (Ballston and Friendship Heights), and "surburban green field developments" (Reston Town Center and National Harbor).

The presence of the BRAC project in the Beauregard Corridor gives this area the potential to become a "regionally significant place," Leinberger says. But in its current state, "it's neither fish nor fowl"; it's not quite a drivable suburban area nor a walkable urban area.

"There are few successful examples of drivable dense urban places," he says. There is concern that if it isn't transformed into an urban walkable place, "it could be on a downward spiral," as younger people and investments abandon the area for more favorable communities.

According to Leinberger, successfully transforming a suburban strip mall environment into a walkable urban placelike Ballston and Clarendonrequires strong management to protect the quality of life in surrounding neighborhoods from noise and traffic cut-throughs. When it's done right, the value of single-family homes near urban walkable places will rise significantly, and the tax base will increase, primarily from commercial property. He says this kind of development will cut greenhouse gas emissions and energy use by some 60 to 80 percent.

He acknowledged some of the challenges of developing the Beauregard Corridor are the barriers posed by I-95, Seminary Road, and Holmes Run.

The development of Annandale poses even more challenges. While the Beauregard developers envision the eventual extension of the Columbia Pike streetcar line along Beauregard Street, there is no plan to bring transit to Annandale. And while most of the property in the Beauregard Corridor is concentrated in the hands of a few developers, Annandale is chopped into many small parcels of land. Any attempt to bring a large mixed-use project to Annandale, as proposed in the Annandale amendment to the Fairfax County comprehensive plan, would require consolidation of land.

Leinberger told the Annandale blogger such development is possible: If one visionary developer takes a risk on a large project, others will follow. But communities like Annandale could stagnate if other areas, like the Beauregard Corridor, draw development and businesses from aging suburbs.

Kai Reynolds of the JBG Companies, one of the Beauregard Corridor property owners, says Leinberger's presentation about the value of urban walkable places is very much in alignment with what the developers want to doexcept for Leinberger's statement that developers should help pay for transit.

Representatives of the five companies who own properties along the corridor have been meeting with local residents periodically to explain their vision for redevelopment. The developers have promised to provide public amenities, such as parks, athletic fields, or community facilities, based residents' priorities.

At their latest meeting, Jan. 24, the developers outlined their plans for multi-phased, higher-density developmentincluding about 4,600 new housing unitsto occur over the next 25 to 30 years. A key part of the plan is the creation of an elliptical traffic circle to improve traffic circulation through the Beauregard/Seminary intersection and a new network of through-streets to replace the current system of parking lots, cul-de-sacs, and dead-end streets around the existing housing developments. (You can access the presentation from that meeting here.)

JBG has plans to transform the current shopping center between Reading Avenue and Rayburn Avenue into a much larger mixed-used development with more stores, offices, and a new nine to 12-story hotel. "There is not enough commercial space to meet the demand," says Victor Dover, with the Dover, Kohl and Partners town planning firm, who represents JBG.

A representative of Home Properties, which owns Southern Towers, wants to replace the adjacent three-story garden apartments with a series of five-story multifamily buildings and new parking decks, resulting in 669 additional units within the next five to 10 years.

Jon Eisen of the Hekenian Group, which owns the 10.1-acre Shirley Gardens property on the other side of Beauregard across from Southern Towers, is planning a 16,000-square foot mixed use development with a hotel, offices, shops, restaurants, 520 multifamily units, and, on the land closest to the existing single-family houses, 15 to 20 townhouses.

Peter Schultz of Duke Realty, which owns Clyde's and a series of office buildings along Beauregard, has longer-term plans to replace those buildings with more energy-efficient projects, possibly including a boutique hotel, in about 10 years.

According to Dover, the developers have refined the plan they presented to residents in December, reducing the proposed developments by half a million square feet, cutting 500 housing units from the plan, simplifying the street grid, adding more green space and recreation areas, and adding a site for a fire station at Beauregard and Sanger Avenue.

The developers' next meetings with residents will be Feb. 28, focusing on open space and environmental issues, and March 28, with more details on the ellipse and other transportation plans.

Cross-posted at Annandale VA.

Development


More walkable urbanism is good for everyone

Lydia DePillis asks whether the transformation of Tysons Corner into a real city will be good or bad for DC. Will it?


Image by fairfaxcounty on Flickr.

Definitely. First off, there's plenty of demand for walkable urbanism to go around. The high prices for more desirable, walkable DC neighborhoods shows that there are plenty of people wanting to live in such areas.

Christopher Leinberger "likens [walkable centers in the region] to infielders on a baseball team, with D.C. as the pitcher, Silver Spring on first base, and Tysons as the short stop," DePillis writes. "They all have a role to play, they all have a different skill set," he told the City Paper. "There's overlap, and they might be competition to get that ball. But generally speaking, they will go after discrete market segments that aren't being served."

A little bit of the unmet demand does push less desirable rowhouse neighborhoods to gentrify, but much of the demand ends up pushing people to suburban, car-dependent areas where they don't want to be. People who want to live in traditional suburban houses should be free to do so, but I hear from many folks who live in a place like Germantown that really wish they could live in Bethesda.

There are lots of jobs in Northern Virginia, and that's not going to change. The Tysons plan will create more jobs right next to Metro stations, allowing DC residents to get to Northern Virginia jobs without creating traffic in DC. It'll also improve the financial stability of Metro by increasing reverse commuting. Suburban transit-oriented jobs is one of Metro's greatest advantages.

Furthermore, there is a long-term political value to more walkable urbanism. The more urbanism we have, the more voters will experience it on a daily basis and appreciate its advantages. That will reduce the tendency of elected officials and journalists to assume that "everybody" drives everywhere and thus the best policy is to focus all spending on auto infrastructure and zoning on building auto-dependent places.

When I criticized "freeway bus" plans a while back for bypassing commercial corridors, an inner jurisdiction official told me that even though he preferred buses along those corridors, the freeway plans could win over substantial numbers of otherwise car-using Fairfax residents to support transit. Walkable urbanism, too, develops more of a built-in supporter base the more of it there is. That's good for everyone.

Development


Live chat with Christopher Leinberger

Welcome to our live chat with Christopher Leinberger, "Metropolitan Land Strategist," developer and author.

Mr. Leinberger is affiliated with several scholarly organizations including the Brookings Institution. He argues that market forces are shifting our "built environment" is from "driveable sub-urbanism" to "walkable urbanism," but that several non-market forces stand in the way, including public and private lenders' rules that limit real estate investment to "19 standard product types."

Mr. Leinberger discusses these ideas in his book, The Option of Urbanism: Investing In a New American Dream, which is one of the "great books" featured on our right sidebar. (We don't get any money for that; I just loved the book.)

 Greater Greater Washington live chat: Christopher Leinberger(06/03/2010) 
12:48
David Alpert: 
Welcome to our live chat with Christopher Leinberger.
Thursday June 3, 2010 12:48 David Alpert
12:48
David Alpert: 
Mr. Leinberger will join us in a few minutes. Meanwhile, please submit your questions. We'll try to get to as many of them as possible.
Thursday June 3, 2010 12:48 David Alpert
12:54
Chris Leinberger: 
David, I am on line. Chris
Thursday June 3, 2010 12:54 Chris Leinberger
12:54
David Alpert: 
Welcome!
Thursday June 3, 2010 12:54 David Alpert
12:56
David Alpert: 
In The Option of Urbanism you talk a lot about how structural barriers make it hard to build walkable urbanism, from banks that want to only lend for specific cookie-cutter projects (usually not mixed use) to federal agencies whose rules don't allow funding mixed-use.
Thursday June 3, 2010 12:56 David Alpert
12:56
David Alpert: 
Can you explain that a bit? And has that problem gotten any better since you wrote the book?
Thursday June 3, 2010 12:56 David Alpert
12:58
Chris Leinberger: 
The financing problem has obviously gotten worse...worse for all real estate and possibly especially for walkable urban development. The reason for this is that WU development is by its very nature more risky and the banks are scared stiff, hence looking for safer loans. Whether this will change as progressive developers bring only walkable urban deals to them and the continued failure on the fringe, we will see.
Thursday June 3, 2010 12:58 Chris Leinberger
12:59
David Alpert: 
What you call "driveable sub-urbanism" (and others call sprawl development) seems to have lost more value than core projects. Are banks still more afraid to build mixed-use in a strong market like central DC than a strip mall in, say, Prince William County?
Thursday June 3, 2010 12:59 David Alpert
1:02
Chris Leinberger: 
We do not know enough yet since the banks are just beginning to wake up from their long sleep. Some WU in-fill projects are rumored to be close to getting going and a couple have started but it is too early to say.

Fringe sprawl homebuilders (Toll, Ryan, etc.) pretty much only know how to do one thing...drivable sub-urban stuff so they just want to keep on doing the same ol', same ol....only cheaper and faster and dumbed down. The next couple years will tell us if these old dogs will ever learn new tricks.

Thursday June 3, 2010 1:02 Chris Leinberger
1:03
David Alpert: 
Thanks. I recently heard that a childhood classmate is building standard subdivisions at the fringe of the Boston area. It's disappointing that that is still happening.
Thursday June 3, 2010 1:03 David Alpert
1:03
David Alpert: 
What about public institutions? Has the Obama Administration improved things at all around federal criteria from Fannie Mae, HUD, etc.?
Thursday June 3, 2010 1:03 David Alpert
1:04
Chris Leinberger: 
As I say, teaching old dogs new tricks is difficult. My analogy is that drivable product is like driving a NASCAR and WU is like flying figher jets...two different skillsets.
Thursday June 3, 2010 1:04 Chris Leinberger
1:06
Chris Leinberger: 
big questions about the F/Ms and FHA...HUD knows they have to make major reforms but from what I hear from my friends on the inside, they do not have a clue about how to do it and do NOT want to tamper too much with the fragile economy....the homebuilding industry going down a second time would be a disaster for the country and the administration.
Thursday June 3, 2010 1:06 Chris Leinberger
1:06
David Alpert: 
Thanks. I hope they find the courage to be bold. Ken Archer has a good question:
Thursday June 3, 2010 1:06 David Alpert
1:06
[Comment From Ken ArcherKen Archer: ] 
You argue that suburban sprawl is the result of the govt tipping the scales and not free market forces. Smart growth advocates are divided between those who think the solution is for the govt to tip the scales towards urbanism and those think the solution is to simply remove govt interference from planning decisions, the free market. What do you think?
Thursday June 3, 2010 1:06 Ken Archer
1:09
Chris Leinberger: 
I would prefer the latter since we will always screw up the incentives and will distort the market in some way. Putting new incentives in place to offset the old incentives seems pretty silly to me. Having said that, gov't has a HUGE role in making transportation investments since TRANSPORTATION DRIVES DEVELOPMENT. Those decisions are gov't and we have basically been building roads...think the stupidest highway project of our day, the ICC, and we have to fundamentally reform that.
Thursday June 3, 2010 1:09 Chris Leinberger
1:10
David Alpert: 
Thanks. Speaking of transportation driving development, let's talk about streetcars.
Thursday June 3, 2010 1:10 David Alpert
1:10
David Alpert: 
First of all, you recently wrote in the Atlantic that public-private partnerships could help drive light rail/streetcar lines. Can you briefly explain for those who didn't get to read the piece?
Thursday June 3, 2010 1:10 David Alpert
1:11
David Alpert: 
(And here's the Atlantic article.)
Thursday June 3, 2010 1:11 David Alpert
1:11
Chris Leinberger: 
I love streetcars...I lead a Brookings study of the H Street streetcar line, using the case studies of Portland, Seattle and Tampa. Great real estate value creation and the potential for that increased value to help pay for a portion of the construction cost. Plus, streetcars will help put in the lateral rail transit, connecting the radial Metro lines.
Thursday June 3, 2010 1:11 Chris Leinberger
1:13
Chris Leinberger: 
Transportation has always added real estate value for the last, oh, 6,000 years. DC was built as a giant real estate play; the lot sales paid for the road improvements. We as a country are broke and we have to go back to how we paid for rail transit a hundred years ago; having the increasing land values help pay for the rail transit.
Thursday June 3, 2010 1:13 Chris Leinberger
1:14
David Alpert: 
I understand that DC is considering a value capture scheme to pay for part of streetcar development. Can those raise enough money to fund new lines, even with the higher environmental and labor standards we have today compared to 1900?
Thursday June 3, 2010 1:14 David Alpert
1:19
Chris Leinberger: 
We are 3 times as wealthy in real per capita terms than folks a hundred years ago so the concept that it was possible since we had cheap labor I don't buy. Plus the cost per square foot or per unit is so much cheaper for walkable urban infrastructure, like streetcars and even Metro, that we can afford it today.
Thursday June 3, 2010 1:19 Chris Leinberger
1:20
David Alpert: 
Great. Jarrett at Human Transit likes your suggestions about doing value capture by governments but isn't sure private entities on their own would run lines because they can't own enormous swaths of land right next to cities like they did in 1900. What kind of structures (BIDs?) will it take to make private transit lines work in today's world?
Thursday June 3, 2010 1:20 David Alpert
1:23
Chris Leinberger: 
I am not necessarily suggesting that we repeat exactly what the streetcar/ real estate companies did 100 years ago. I am just saying to link transportation and land use in some manner; there are hundreds of ways, such as assessment districts, limited ownership of the real estate by the transit agency, etc, etc. We need to use the concept but not the exact mechanism used a century ago.

And I like BIDs being an intermediary between the transit agency and the land owners in these financing schemes. As a developer, I would not like sharing my books with City Council or the transit board.

Thursday June 3, 2010 1:23 Chris Leinberger
1:23
David Alpert: 
Lance isn't so sure about value capture:
Thursday June 3, 2010 1:23 David Alpert
1:24
[Comment From LanceLance: ] 
Don't property taxes reflect increases in value to a property irrespective of their source ... which would mean that a 'value recapture scheme' is effectively 'double taxing' the increased value due to transporation improvements.
Thursday June 3, 2010 1:24 Lance
1:24
David Alpert: 
What do you say to that argument?
Thursday June 3, 2010 1:24 David Alpert
1:27
Chris Leinberger: 
Property taxes on average are about 1% so you can capture only about 1% of the upside. Tax increment financing (TIFs) are not financially powerful enough on its own. Plus, it means those tax revenues are not available for the area affected by the street car for the life of the bond (+/- 20 years) so the rest of the jurisdiction would have to subsidize the police, fire, and other city services for this district. TIF is part of the 'layer cake' finance solution but private sector value capture can be part as well.
Thursday June 3, 2010 1:27 Chris Leinberger
1:28
David Alpert: 
Thanks. Before we wrap up on streetcars, any specific thoughts or advice regarding DC's planned system? What would you say DDOT should make sure to keep in mind?
Thursday June 3, 2010 1:28 David Alpert
1:32
Chris Leinberger: 
They have defined the system but they should divide it up into 5-6-7 different lines and tell the property owners along those lines that if they want the next line, what will they do regarding value capture to make it happen. Those that see a benefit will pony up the most upside value capture and they get it first. There should be competition.

BTW, it will not favor the rich parts of town. H Street will have far more upside from today than Dupont does...it is starting at lower values and will increase on a percentage basis far more so the the SE and NE parts of town should actually be in a competitive advantage.

Thursday June 3, 2010 1:32 Chris Leinberger
1:33
David Alpert: 
Transportation may drive development of housing and retail, but if people can't afford to live in any of it, it doesn't help a lot of folks:
Thursday June 3, 2010 1:33 David Alpert
1:33
[Comment From TedTed: ] 
Similar to Ken's free market question, do you think that free market brownfield development and letting supply/demand lower prices will be enough to keep cities affordable, or is incentivizing/mandating affordable housing part of government's job in this?
Thursday June 3, 2010 1:33 Ted
1:37
Chris Leinberger: 
Yes, government needs get involved in affordable housing far more than it does now. The reason for gentrification is the lack of supply of walkable urban places and land...but we have plenty of land just not enough walkable uran places. The problem will eventually be 'solved' by more supply but that will take at least a generation. Therefore, we need a conscious affordable housing policy to replace our current one, which is 'drive until you qualify'.

Arlington and Montgomery County are two great role models. They are using serious annual investments in creating more PERMANENT affordable units and inclusionary zoning to create a fairly impressive number of units...more must be done even in these two jurisdictions.

BTW, value capture could be used for affordable housing as well....gentrification can be used to pay for affordable housing...take from the rich for the not as well off.

Thursday June 3, 2010 1:37 Chris Leinberger
1:37
[Comment From KevinKevin: ] 
Alexandria is in the midst of approving the plans for redevelopment of the Potomac Yard retail center. There a promise of a mixed-use transit oriented development. You sat on a panel last year (or the year before) at the beginning of this process to provide some input. We never got to see the full results of that, but I was impressed by your knowledge of the Yard. So, I'm wondering if you've followed it all since then. Happy? Disappointed?
Thursday June 3, 2010 1:37 Kevin
1:41
Chris Leinberger: 
I have been working on Potomac Yards for 20 years...working with the RR which used to own it. I was VERY disappointed with the power center (Target anchored) at first. But then I found out that that is basically an interim land use and those same stores may be the anchors for a huge mixed use walkable urban TOD. Brilliant...so I was wrong.

The developer gets it and is willing to work on paying for the station (a form of value capture) since he sees the power of TOD...he is the same developer who did the retail in Clarendon. The city is quite behind it...the mayor lives within walking distance and is probably looking forward to walking there for lunch some day.

Thursday June 3, 2010 1:41 Chris Leinberger
1:41
David Alpert: 
Great! Ken has another question about different "free market" approaches:
Thursday June 3, 2010 1:41 David Alpert
1:41
[Comment From Ken ArcherKen Archer: ] 
You and Randal O'Toole of Cato are both free market advocates in Washington think tanks. Yet you have very different views of what the free market looks like in transportation and development. If you've read O'Toole's work, can you explain what you think is the main distinction between your respective views?
Thursday June 3, 2010 1:41 Ken Archer
1:45
Chris Leinberger: 
O'Toole mistakenly thinks we are seeing the free market at work today in drivable su-urban development...as does David Brooks, Joel Kotkin (who I have recently and will again debate...next time in NYC next month) and others. It is a massively subsidized system today that has engaged in the largest social engineering experiment in US history.

If the subsidies would be taken away and we were given a CHOICE in how to get around and how to live, you would see a very big difference in what land use patterns would look like. How do I know this: The huge price premiums in walkable urban places vs drivable sub-urban...that is the market telling us something profound.

Thursday June 3, 2010 1:45 Chris Leinberger
1:47
David Alpert: 
It seems that many business leaders are often not as supportive of walkable urbanism as they could be. Recently a bunch of Virginia business leaders sent a letter to Arlington asking them to stop their opposition to HOT lanes. What do you think is the obstacle to more business leaders, especially in inner-ring suburbs, being more enthusiastic about walkable urbanism?
Thursday June 3, 2010 1:47 David Alpert
1:53
Chris Leinberger: 
I will be honest...I have not given much thought to the usefulness of HOT lanes. I am more focused on building the second half of the transportation system...rail transit, bikes, walking and improved bus service.

RE: business leaders, I have the impression most in-fill/inner suburban business people get it. However, even in Arlington, I know there is unnecessary bad blood between business leaders and government. I personally think we should take a corral approach: build a literal and figurative corral around these walkable urban places and tell business, do not even think about going outside the corral but inside, it is a free market.

Too many times, government leaders get into decisions they should not have to bother themselves about and add uncertainty to the business decision making. That raises costs and might have some businesses steer clear of those jurisdictions.

Thursday June 3, 2010 1:53 Chris Leinberger
1:54
David Alpert: 
When I talk about exurban development in the DC area, I often cite statistics from your presentations about how the total amount of drivable sub-urban development basically meets the current demand, especially with 88% of population growth being singles, childless couples, and empty nesters. Therefore, even when people say "many people want suburban houses," that might be true and they can buy some, but that doesn't mean we need a lot MORE suburban houses.

However, those are national stats. Our region is growing a lot. Do the same trends hold true? Do you think the demand for drivable suburban houses is basically already met here in our region?

Thursday June 3, 2010 1:54 David Alpert
2:01
Chris Leinberger: 
Yes I do. This region is the national model for how America is building the built environment since metro DC is the best educated and the ultimate knowledge-based economy in the country. Number 2 is San Francisco and #3 is Boston....which have the 2nd and 3rd most walkable urban places per capita to #1 DC. BTW, 70% of DC's walkable urban places are in the SUBURBS (thank you in particular, Arlington).

So I have little doubt that the fringe drivable sub-urban demand has been quite satisfied...there will always be people who want during certain times of their lives and maybe their entire life a drivable sub-urban life style. It is just there is a generation of pent up demand for walkable urban...hence the huge price premiums and all the concern about gentrification, which is a direct consequence.

If I could be the beneficent dictator (sort of like Mayor Daley), I would stop the ICC and drivable sub-urban development and focus all transportation spending on rail transit, bike, walking, bus service and repairing the road system we already have. We as a region would find our infrastructure costs reduced by 1/4rd to 1/3rd over the next generation and we would be more economically competitive...not to mention healthier and not contributing as much to climate change.

Thursday June 3, 2010 2:01 Chris Leinberger
2:02
David Alpert: 
Mr. Leinberger has time for one more. Kevin has one little trepidation still about value capture and affordable housing:
Thursday June 3, 2010 2:02 David Alpert
2:02
[Comment From KevinKevin: ] 
With respect to value capture for affordable housing...which I agree with in theory...I think, in practice, it tends to tax the middle class more than "the rich" as you put it. Most of the subsidies tend to come from new development, which by and large are condo and townhouse. The old money...large landowners... generally escape having to pay. The subsidies are hard to apply at the margin: it's hardest for instance to subsidize what we are calling workforce housing than it is to subsidize very low income housing (because low income housing has other federal and state subsidies). And since property tax are somewhat regressive the middle income folks....who might be only barely be able to afford their homes are hit the hardest.
Thursday June 3, 2010 2:02 Kevin
2:08
Chris Leinberger: 
You raise very good points...any government intervention has to be thought through very carefully. There are 8-10 mechanisms I have been working on to achieve a conscious affordable housing strategy. Inclusionary zoning, value capture, direct local government subsidies, Federal and state subsidies, granny flats (a great, low cost and benefical to the middle class approach) and many others.

I do not have all of the answers but know that if we have the intention to address this challenge, there are plenty of tools available. The intention is the issue, however. There are some very smart people working on this; Enterprise (I am on one of their boards), LISC, etc. At Brookings we are looking at the connection betwen social equity and economic performance of walkable urban places...stay tuned.

Thursday June 3, 2010 2:08 Chris Leinberger
2:08
David Alpert: 
Thanks. We look forward to seeing your research.
Thursday June 3, 2010 2:08 David Alpert
2:08
David Alpert: 
And that's (more than) all the time we have. Thank you so much for joining us today.
Thursday June 3, 2010 2:08 David Alpert
2:15
David Alpert: 
What do you think about Mr. Leinberger's suggestions? Feel free to continue the discussion in the comments.
Thursday June 3, 2010 2:15 David Alpert
2:15
 

 
 
 

Events


On the calendar: WMATA capital budget, Christopher Leinberger, outdoor play, Met Branch Trail, Daniel Burnham

There are a lot of big events coming up in the next few days.

In brief: There's a WMATA hearing on the capital budget tonight. Tomorrow we're hosting a live chat with Christopher Leinberger, and in the evening, there's Montgomery County panel on building urban spaces that allow children to play. Saturday is a party for the Met Branch Trail. And next Wednesday, watch a new documentary on the Mall about Daniel Burnham.

WMATA capital hearing: Tonight at 5:30, WMATA is holding a hearing on the capital budget. Normally, these hearings happen in tandem with TPB hearings and almost nobody attends, but this time, WMATA decided to have a separate hearing.

I had hoped to figure out what to say and also write about it, but to be honest, I just didn't find the time. Unfortunately, that means I didn't tell you ahead of time or decide what to say. WashCycle points out that many ped and bike projects are cut. On the other hand, replacing aging equipment does need to be the top priority.

The hearing starts at 5:30 at WMATA HQ, 600 5th St, NW. You can also submit written testimony until Monday.

Live chat with Christopher Leinberger: Tomorrow, Christopher Leinberger will join us for a live chat at 1:00 pm. Leinberger is the author of The Option of Urbanism and a leading advocate for walkable urbanism and changes to public policy to allow and encourage more of it.

Lately, he has been discussing value capture, the funding of public transit through taxes that capture some of the increased value transit brings to the land around the stations.

Please join us tomorrow at 1:00. In the meantime, please submit questions for Mr. Leinberger in the comments.

ReThink Health: The final ReThink Montgomery discussion will focus on health, and specifically children's health. Urban and suburban developments alike often lack good spaces for children to play.

Joan Almon of the Alliance for Childhood will discuss "the vital role of play and how planners can design and build spaces that make it easy for children to be active." The event is at 7:30 pm at Montgomery Park and Planning's auditorium, 8787 Georgia Avenue in Silver Spring, near Silver Spring Metro.

Meet the Met (Branch Trail): On Saturday, Rails-to-Trails Conservancy is holding a party on the Metropolitan Branch Trail, a partially-completed walking and biking trail along the CSX and Red Line tracks from Union Station to Silver Spring.

Currently, the trail is complete from L Street, NE (just north of Union Station) to Franklin Street in Brookland. The party is on the newest segment past the Rhode Island Avenue Metro, which you can reach through the parking lot of the large shopping center at 700 Rhode Island Avenue, NE, just across the tracks from the Metro station.

Daniel Burnham: Finally, next Wednesday is a screening of Make No Little Plans: Daniel Burnham and the American City, a documentary about the architect who designed Union Station and the Postal Square building next door. Burnham was also one of the members of the McMillan Commission which redesigned the National Mall in 1901. His influence also carries far beyond Washington, DC.

The documentary takes its title from his most famous quote (which he may or may not have actually said): "Make no little plans. They have no magic to stir men's blood and probably will not themselves be realized." Here's a trailer:

You can always see these events and more on our calendar. If there are events we're missing, please send them in using the tip form.

Photos at top, clockwise from upper left: WMATA hearing by thisisbossi on Flickr; Christopher Leinberger from his site; Met Branch Trail sign by TrailVoice on Flickr; and Joan Almon from ReThink Montgomery.

Development


Walkable urbanism has arrived...

...when LEGO now sells sets to build mixed-use, street-facing model Victorian townhouses with apartments above retail.

I loved to build LEGO sets growing up, but back then, almost all LEGO sets fit into one of three lines: Castle, Space, or Town (suburban-style development). They later added Pirate. In Town, we had the gas station, airport, single-family houses, and more, all on large, green plates connected by road plates. There was a train station, of course, but the small-town commuter rail type. That was the way people saw the built environment in those days.

Today, LEGO makes a lot more (like Star Wars and SpongeBob SquarePants sets). But they've renamed Town to City. Today's City sets still mostly feature emergency response vehicles and infrastructure like ports and airports (the things kids like), but as Planetizen reports, they also now make some mixed-use urban buildings, including a green grocer with apartments above, and a corner cafe below a hotel.

Of course, LEGO is a European company, and Europe's cities have always looked like this. And they still sell the suburban gas station. Perhaps reflecting the actual value of urban buildings versus suburban, the gas station sells for $39.99 and the greengrocer for $149.99. Like real historic urban buildings compared to new suburban cookie-cutter development, the townhouse sets have much more detail. (They're also aimed at a much older audience.)

At yesterday's panel, Christopher Leinberger also talked about pop culture's reflection of urbanism versus suburbanism, using an anecdote that also appears in The Option of Urbanism. We know that our attitudes have changed, he said, because while baby boomers' TV shows depicted families in the suburbs (like The Brady Bunch and The Dick Van Dyke Show), today's the next generation's hottest sitcoms take place in cities, such as Friends and Seinfeld and many since.

In January 1957, Leinberger explained, Lucy of I Love Lucy moved from Manhattan to a suburb in Connecticut. In a subsequent episode, she had Fred and Ethel visit "to see her new suburban splendor." Then they moved out there. "The Baby Boomers' image [of cities] was Hill Street Blues and Fort Apache in the Bronx," he said. In an episode of Sex and the City, one of the characters walks down a narrow Manhattan street at night. "The boomers think she's going to get mugged. The millenials think she's going to a glamorous art gallery," which is exactly where she's going, safely.

Development


All you can eat

Two speakers, at two separate events I attended, today used the analogy of the all-you-can-eat buffet to describe aspects of our urban policy.


Photo by attack the darkness on Flickr.

This afternoon, Christopher Leinberger (author of The Option of Urbanism) gave a talk to the Washington Smart Growth Alliance. Despite centuries of experience building walkable urban places, Leinberger explained, after World War II we forced developers to build low-density suburban places (what Leinberger calls "driveable sub-urbanism") instead. We actually made it downright illegal in almost all areas where new development was happening. A developer in the 1950s couldn't build a walkable place without going through enormous and nearly insurmountable obstacles.

On top of that, our public policy gave huge subsidies to driveable sub-urbanism. Taxpayers paid for freeways, power, water, and other infrastructure without being reimbursed by what we now call "impact fees". Instead of charging developers proportionally to the cost of infrastructure, where those building in areas that required more expensive infrastructure paid more, we all paid equally for it. Therefore, developers built neighborhoods in areas that were cheaper to construct but cost more in infrastructure, instead of areas where construction cost more but with the infrastructure already in place. Imagine, said Leinberger, "if the goverment said all restaurants must charge one price for all you can eat. Then, someone on a diet is subsidizing those who are pigging out." The costs for high density and low density development vary between construction, maintenance, infrastructure, and more, but our public policy mandated one price (the tax rate) for the infrastructure, regardless of which choice people made.

Earlier, I attended the hearing on raising DC's meter rates to raise revenue to restore critical housing programs. I testified in favor of the bill, as I wrote last week, with the recommendation that we divert the new meter revenue to housing during this budget crisis, but return them to transportation use once our tax revenue recovers. Ed Lazere, of the DC Fiscal Policy Institute, explained that cheap or free parking is like an all-you-can-eat buffet. I'd add that it's like a buffet where almost all of the food is gone, and all you can get is scraps, or go to the high-priced restaurant across the street. Likewise, as Councilmember Tommy Wells explained at the beginning of the hearing, people today can choose to pay about $13 an hour in downtown DC for a garage space, or circle for half an hour to find a $1/hour meter space.

All you can eat buffets are nice for the occasional restaurant, but most restaurants don't go that route. Let's stop having our laws require all-you-can-eat models for housing and parking.

Development


"Colossal pent-up demand for TOD"

The New Republic's Bradford Plumer attended this morning's Brookings Panel on the Purple Line. According to Plumer, MoCo Councilmember Mark Elrich is still unsure whether to spend more on the better light rail or save money with the bus, but Christopher Leinberger says Elrich is thinking about it all wrong: better transit creates more and better development, and more tax revenue.


This is not green space. From Live Maps.

Ryan Avent rightly points out that the belief that transit drives development shouldn't be controversial at all. Most of New York City's growth happened around, and thanks to, its transit lines, for instance.

Here's the most interesting part of Plumer's recap:

By [Leinberger's] count, 30 to 50 percent of residents in most U.S. metropolitan areas want to live in a walkable urban environmenta trend that's, in part, fueled by the growing prevalence of single and childless couples, who will constitute a whopping 88 percent of household growth through 2040. Trouble is, he estimates that there are only enough walkable areas to satisfy about 5 to 10 percent of residents, which is why transit-oriented areas are so exorbitantly expensive.
Plumer goes on to identify the second, and perhaps greater, obstacle to more walkable areas: suburban zoning. The mindset we saw in Kensington sees new walkable, urban places as a direct threat to their way of life. BeyondDC covered a TOD proposal in Chevy Chase Lake, which is quite modest in size, yet opponents claim it will "destroy the community."

BeyondDC notes the irony in one opponent's argument that the area has "good green space" when the project would replace a parking lot and a lumber yard. Sounds familiar.

Development


MoCo "transit-oriented" zoning would encourage non-transit-oriented sprawl

The Montgomery County Planning Board reviewed proposed zoning rules yesterday that would create transit-oriented mixed-use ("TMX") zones. It's a good idea, but as written, it will also encourage building low-density, auto-oriented development in areas far from transit.


An attractively designed but sparsely used "public use space." Photo by sevenblock on Flickr.

How did that happen? First of all, the TMX zones don't just apply around Metro stations or even bus hubs. They also apply to planned stops for BRT lines. Unfortunately, there's a long history of planning transit lines and then not actually building them. There's a real danger that we'll get development in these TMX zones but no transit.

Building in anticipation of future transit isn't such a bad idea, though. In the early 1900s, governments ran transit lines out to farmland (like the Upper West Side and the Bronx in New York), and dense, walkable development followed. Today, development generally far precedes transit lines. Until we change that, it makes sense to create zoning that at least ensures that greenfield development is designed a walkable community. Then, if and when we build a transit line there, there's some density to put the stop among instead of just endless single-family homes where all you can build is a park-and-ride.

Plus, having built-in riders helps a lot if we stay stuck with today's federal funding formula. That formula discounts potential future development, instead prioritizing funds that move existing residents long distances. As long as we have that formula, the best way to get a transit line funded is to already have the residents in place.

Unfortunately, the proposed TMX zones don't ensure we'll get walkable communities. Developers get to pick a "standard method of development", which is a low-density form with freestanding buildings, and an "optional method of development," which allows higher density. Both the standard and optional methods include some decent design principles, like facing buildings to the street, including sidewalks, and putting parking behind or underneath buildings. But both also require "public use spaces" which usually end up as empty plazas in the fronts of buildings, creating voids, and lots of parking.

According to Christopher Leinberger, an FAR of 0.8 is the minimum for "walkable urban development." 0.8 gets you a walkable but low-density village. The "optional method" requires an FAR of 3.0, but the "standard method" allows FARs from 0.25 to 0.5too much for an auto-oriented suburban design, but not enough to create a walkable community. The most common example of development with that intermediate FAR is the suburban office park, two-story office buildings surrounded by parking lots a few times the footprint of the buildings and the occasional, sparsely used public park unconnected to much else. In other words, we'll get the Shoreline area of Mountain View, California.

The Action Committee for Transit is fighting the bad parts of TMX zones.

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