New Geography

Author: Rick Harrison

  • Homebuilding Recovery: A Zoning & Planning Overhaul

    Part III of the Recovery Blueprint for homebuilding. Defining good zoning and good planning, and a look at how social engineering plays in.

    What exactly is ‘planning’?

    It can be government creation of an Interstate Highway, or a city council vote on a new park. For the purposes of this blueprint, planning refers to the design of a new land development or a design for redevelopment. In both cases, the land plan is the developer’s business plan. The design will either be positive or negative for the sustainability — long-term health — of the city.

    Typically, the ‘planner’ will be an engineer or surveyor if the development is suburban, or an architect or ‘urban planner’ designing an urban redevelopment. In any case, the planner will follow regulations that set ‘minimums,’ such as a minimum on lot size, side yards, front and rear setbacks, and so forth. There are a few major problems with this ‘minimums’ based system.

    In order to maximize profits for the client (the builder or developer), the planner is encouraged to squeeze as many units as possible within the available land. The design of the development becomes a mathematical exercise, more than an attempt to create an attractive and functional neighborhood design.

    The result becomes a monotonous, cookie-cutter solution. It maximizes not just density, but also construction costs, with a high volume of streets, utility mains, and sidewalks.

    Technology made the situation worse, with software not only limiting creativity, but also influencing the planning to correspond with the predetermined, robotic functions of the widely used software.

    A minimums-based design is quite rigid. In the long run, if a design is driven only by density, the development can be far less profitable for the developer, despite the original intention to economize. Builders who buy lots from the developer also end up paying more than they would have with a different approach. When topography and the overall property configuration are more complex, and as restrictions on wetlands and tree ordinances increase, it gets worse. Rigid designing is like trying to fit a square peg in an odd shaped hole, increasing waste.

    Development after development becomes a clone, because of the way regulations are written and interpreted. This monotony can then only be broken up with a much greater attention to architecture and landscaping. The ‘geometry’ of each development remains similar.

    This is where the confusion between good planning and good architecture comes in. An example is New Urbanism, with architecture as its key component. A coherent architectural theme, full front porch, and street trees are typical of these developments. Compare that to the vinyl sided, bland subdivision where the three-car garage is the dominant feature. New Urbanism typically wins the curb appeal beauty contest. (Of course, in upscale suburban communities where every home showcases great architecture and landscaping, that is not necessarily the case.)

    Underlying New Urbanism is the implication that certain design elements will change behavior and solve social problems. Neighbors will want to interact regardless of income, race, religion, and so on. Many think this ‘Stepford Wife’ approach places design as a tool to implement mind control. Is it?

    Those who reside in New Urban communities desire the more attractive setting. The architectural and landscaping control creates a welcoming and cohesive community appearance, compared to the garage snout vinyl cladded subdivision. These developments are typically more expensive per home square foot, thus your neighbor is likely to be somewhat successful, just like you. This is no more social engineering than is providing any market for successful people who value appearance and like to live among others with similar values.

    Within a city, other planning solutions can result in social change. Replacing a blighted, high crime neighborhood with a gentrified urban mecca for wealthy residents that enjoy the nightlife is one sure formula to do so. But is it a change in the right direction for a city?

    What happens to those low-income families that are displaced? How are their lives improved? Theoretically, they could move to a safer, less blighted area, like many who were displaced by Katrina. Instead of displacing poor families, there are viable solutions based on rebuilding blighted areas and maintaining affordability. Not the typical ‘smart growth’ solutions, though; those often add significantly to redevelopment costs. Compressing these families into dense, high-rise structures does nothing to foster pride, thus, high-density low-income housing could be considered unsocial engineering.

    Zoning gets attacked, but the truth is that it tends to preserve property values better than intermixed usage does. New Urbanism offers the promise that the rich and poor can all live on the same block. That would be marketing suicide for the developer and builder. Suburban zoning can also be a terrible model. It places the strip mall or multi-family homes along arterial roads, then transitions to the large single family lots and homes as one drives deeper into the subdivision or the ‘master planned’ community (i.e., ‘larger’ subdivision). Showcasing the cheapest housing, and placing the most families in the worst places is land use madness. To highlight inexpensive homes and strip malls cheapens the development and the city as a whole.

    A blueprint for recovery without class barriers, one that benefits all income levels, can easily be accomplished today. To start, the suburban zoning pattern is in serious need for an overhaul. Reversing the pattern would increase property values and profitability, and values would be more stable over time.

    A less rigid geometric pattern would reduce monotony, while allowing the development design to adhere to the natural terrain. An adherence to the natural terrain allows surface flow, which reduces the expense and negative impact of traditional storm sewer systems.

    How can all of the above be expedited? Cities can be proactive by writing regulations that reward better solutions. That particularly includes a modification of their existing minimums-based regulations.

    Flickr photo by infomatique (William Murphy): “Discussion: ‘Can Zoning Be Bad For You?’ All land in Dublin City is zoned for one particular use or another, some more restrictive than others…”

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and pps-vr.com.

  • Homebuilding Recovery: How CAD Stifles Solutions

    The Recovery Blueprint is a multipart series on homebuilding. Part II addresses how a reliance on CAD software and a lack of collaboration stifle sustainable land development solutions.

    The front cover of Engineering News-Record on March 12th, 2012 was about a technology survey conducted a few weeks earlier. Of 18 issues surveyed, the need for better software was mentioned most frequently. Under the heading “Software Shortfall – Better, Simpler, Cheaper”, the editors noted that ‘dissatisfaction with current products cuts across all responses,’ and labeled the area, ‘Needs Improvement’.

    Better Software: Until a few decades ago the development of the world was represented by a hand drawn plan. Computer Aided Drafting (CAD) did not exist. There was an intimacy between the design of buildings and the land development task at hand. Since the introduction of CAD, the typical American city has seen few technology changes in the ways that housing is designed. There is virtually no advancement in the design of land development that can be associated with this new era of software-enabled design. If anything, it could be argued that CAD technology resulted in worse design of the cities in which we dwell.

    During a recent lunch with a prominent architect, he explained to me how easy it is to do multifamily design. Simply create one interior unit and one end unit, and then repeat with minor modifications for the first floor units. There was no mention on how to increase the views, or of perceived space (versus actual space), or of efficiencies that could help make everyday living better for the residents. Only that CAD made things so much faster and ‘easier’ for the architect.

    Several software solutions companies boast in their literature about how the development of hundreds of lots can be generated in a minute. The attitude that technology is a tool for speed, instead of for quality, feeds complacency and dumbs down design to series of ‘typicals’ or ‘blocks’ that can be instantly duplicated.

    CAD was intended as a drafting tool to serve hundreds of purposes within a multi-billion dollar software industry. To serve all industrial usages, CAD has become a ‘jack of all trades but master of none’. This is most apparent in land-based design, which requires calculations based upon coordinate geometry. CAD requires a separate data structure to perform these calculations. As an industry core technology, CAD compromises and limits land development design. To do land based calculations for environmental and economic reporting requires precision spatial analysis, and CAD technology fails to deliver. If CAD were a spatial platform there would be no need for a separate GIS technology (another industry problem) for analytical data.

    CAD Saturation: The hand drafting tools used just a few decades ago simply do not exist today. In a saturated market, CAD companies must generate fees through updates, support and training. If these systems were easy (see above complaints) and quick to learn the support and training income would plummet. Thus, intentional complexity assures CAD an income stream for companies at the expense of limiting progress and stifling design advancements.

    Pre-packaged software results in pre-packaged solutions. For example, imagine that an engineer schooled in the use of a particular software is given the task of designing a storm sewer on a 100-acre subdivision. To design and create the required drawings and reports for the multi-million dollar storm sewer system using add-on software to CAD, it might take only a day or so. A more natural alternative using surface flow is likely a viable option, potentially reducing infrastructure expense by tens of thousands, and in some cases millions, of dollars. However, there is no ‘button press’ for surface flow. If consulting fees are based upon a percentage of construction costs the situation becomes worse.

    Many Architects intelligently use technology that is not possible through CAD. Some of these more intelligent software solutions have even been acquired by leading CAD companies. GIS (Geographic Information System) technology is generally based upon polygons, that is, a series of straight lines forming a shape. Typically, it’s useless for precision engineering and surveying irregular, real-world sites.

    Technology Inhibited Collaboration: Architects, engineers, surveyors and planners — the group of consultants that are given responsibility to design and produce plans for our world’s growth — have been, historically, un-collaborative. Technology has done little to change this and foster collaboration.

    Only a few decades ago, it was a given that hand drawn sketches would need to be calculated for construction. Today, a planner using CAD could ‘sketch’ thousands of inaccurate lines and arcs that look like a finished plan, but would be useless for engineering and surveying. Data transferred to the CAD system of an engineer or surveyor does not magically become accurate, and therefore usable. The way CAD has been utilized destroys collaboration instead of building it.

    This isn’t the fault of CAD technology, which actually can create precise drawings. The blame falls on those that teach its use. One way to build collaboration would be for schools in engineering, architecture, planning, and surveying to work on common projects, teaching the needs of each other in a way that reduces time and workload, allowing more time for better decision making.
    Unsustainable Sustainability: It’s human nature to find comfort at a certain stage of equilibrium. What does this mean? We relent to the flow of everyday life. In the case of land development issues, methods and technology that go with the flow lead to an unsustainable path.

    Those involved in the development industry, whether working for private or for public entities, know our growth is not sustainable. Instead of seeking better methods, we have reduced planning to either mindlessly automating design, or to creating stricter design models that promise progress by providing a better architectural façade.

    Instead of being more efficient and reducing the physical elements required for development, we have added solutions that often increase installation and maintenance costs. An example is permeable paving, which is a wonderful idea: pavement that allows rainwater to pass into the ground, instead of running off the pavement’s end and flooding the surrounding area. The problem is not the pavement, but the fact that the under layer supporting the paving must also be permeable. To do this is often prohibitively expensive. If it’s not done properly, it traps water that can freeze (in colder climates) and then expand, and may not hold up to the weight of heavy loads.

    Despite the promise of permeable pavement, design innovations that can reduce the volume of street surface by 30% or more without reducing functionality make more sense. Eliminating an excessive amount of street surface is an efficient solution that costs less to install and maintain than permeable pavement.

    Funding Sources For Innovation: Would it be possible for someone to discover a way to create an affordable base for permeable pavement? Probably. There are hundreds of millions of dollars available from private foundations and government grants for solutions leading to sustainable growth. However, foundation grants fund only 501c non-profits. Should future solutions to development be tied only to non-profit or politically connected entities, or to private firms which may be more capable of innovation?

    There is no technology that can create a better design; we can only create better designers. Instead of educating CAD users on how to automate design, we need to create a generation of designers who use technology to create wonderful neighborhoods instead of quick subdivision plans.

    The consultant needs to concentrate on the best solution, not just the solution that is a mere button press away. Today, there is no excuse for creating designs that are not precise. Architects, engineers, planners, and surveyors need to learn to fulfill each other’s basic needs. This would go a long way towards creating a new era of collaborative design.

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and pps-vr.com.

    Flickr Photo: Designing tools by evrenozbilen.

  • Homebuilding: Recovery & Red Tape

    The Recovery Blueprint is a multipart series of articles that offers suggestions on how to recover from the homebuilding recession.

    Since the recession began, there haven’t been any significant changes in how regulations could be improved to energize the housing market and foster innovation. Three areas where big regulation changes are needed? Environmental subsidies, density requirements, and zoning laws.

    Environmental Incentives: Repeating the mistakes of the Carter era, federal and state governments have thrown vast sums of tax money at ‘green’ solutions likely to fail. A massive amount of our nation’s total energy use seeps out of inefficient housing, draining families of income at a time when they can least afford it. The subsidization of inefficient construction that incorporates energy saving alternatives is as flawed today as it was 25 years ago. Federal and state credits allow funding for improvements such as insulation, solar panels, wind generation, geothermal systems, and the like. These tax credits have to be balanced against taxes paid by families who are barely surviving this recession, if they are still in their homes making mortgage payments.

    Who benefits? Not the mortgage companies that repossess energy inefficient homes. Not the families in traditional homes burdened with high energy costs. Only those wealthy enough to need tax breaks can benefit. But a household at the income level where it makes financial sense to upgrade an existing home can easily afford the upgrade without burdening the already overtaxed public.

    In a low income, possibly downtrodden neighborhood, upgrading a home for energy efficiency results in an expense (even after tax breaks) not likely to be recovered at the sale of the home. It would make more sense to use the same amount of funds to replace older, inefficient homes with new construction. New construction essentially replaces homes with the least efficient HVAC (heating/ventilation/ air conditioning) and insulation with new ones that operate the most efficient systems. But new construction gets almost no tax benefits; only geothermal or solar systems on new construction are subsidized. Does that make sense?

    Density Targets: Making funds available to cities on the condition that certain higher densities are met is not a solution, either. What I hear most often is that we need to provide high-density housing and public transportation so that poor people can get to their jobs, assuming, of course, that all people of low income work downtown.

    Are multi-billion dollar light rail projects and heavily subsidized low-income high-rise towers justified by such rhetoric? A low-income family on the 6th floor of a high-density building will not have the same quality of living or the pride-of-place that a home with a yard would provide. Travel dependent on a train or bus schedule does not offer the independence of owning a vehicle and travelling on one’s own schedule. Travel by foot or bike makes perfect sense for some of those who live in San Diego, but in the rest of the world those alternatives are viable only for the few nice weather days.

    When the recession began, urban architects and planners celebrated the death of the suburbs and the coming advent of an urban rebirth. While the suburbs were certainly hard hit, urban areas did not receive the expected mass migration.

    There is a myth that sprawl was the result of large lots and low density in the suburbs. Over the past 20 years, the firm I founded has planned over 730 developments in 46 States and 15 countries. I would estimate the average density of our suburban developments at between four and five units per useable acre. Today’s suburban development must preserve wetlands, steep slopes, wooded areas, and most often contain a minimum percentage of the site in open space. None of those requirements were in place when our core cities were built. One simply gridded streets through swamps (the previous term for wetlands) and bulldozed slopes and woodlands. Had our existing core cities been built under today’s regulations, they would likely sprawl 30% or more beyond the areas they currently occupy.

    Density targets that must be hit in order to receive government financial assistance not only doesn’t increase the quality of lower income life, it doesn’t result in more sustainable and affordable cities. Instead, most funding has resulted in displacing low-income neighborhoods with gentrified, wealthy development. Many of these projects were initial financial failures. The next developer — the one who picked up the project at bargain prices — realized the profit. Successful, affordable urban redevelopment remains elusive.

    Ordinances & Codes: The designer of any development, suburban or urban, will squeeze every inch out of the site to stay within the most minimal dimensions allowed by local ordinances. This effort to maximize the client’s profits can only result in monotonous, cookie-cutter development.

    Many city planning boards have been manipulated into believing the illusion that a ‘forms based’ or ‘smart-code’ approach is a solution. These new regulations simply increase the number of minimum standards, and restrict innovative solutions. What a ‘forms based’ or ‘smart’ code does accomplish is to significantly increase the consulting income of the firm that promotes this alternative.

    Many engineers and architects base their fees on a percentage of the final construction costs. A consultant who charges on a percentage of infrastructure costs has an incentive to introduce excessive sewer pipes, retaining walls, or other non-needed construction. A fee structure based upon increased profit derived on the least efficient design is a huge roadblock to developing sustainable cities.

    Innovations in land development and in methods of design now allow a reduction of both environmental and economic impact from 15% to over 50%, compared to conventional or New Urban planning methods. While these new methods take more time and effort to design, the reward is more attractive, affordable, and functional neighborhoods.

    What’s the blueprint for better planning? For starters, two ideas: government aid should be based on a ‘plan’ showing how the resulting development will enhance the living standards, and not be tied only to density levels. And agencies should reward contracts to the consultant with the best solution. This means creating a financial mechanism to increase – not decrease — profitability for sustainable planning and engineering solutions that require the least amount of construction costs.

    Photo by Stripey Anne: “I am an NHS Bureaucrat…These, dear friends, are the tools of my trade: red tape, pen, ink…”

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and pps-vr.com.

  • Permeable Pavement: Looking Below The Surface

    How can we prevent situations where environmental ‘solutions’ end up in failure? The tale of problems encountered with the misuse of pervious pavers (also known as porous or permeable pavers), used as an eco- friendly option, provides some answers.

    Low impact sidewalk and street installations can become economic problems. Why? Because failed environmental solutions placed on public property are then replaced with conventional construction, using tax dollars. The EPA Section 438 mandating all owned and leased Federal Facilities be converted into low impact development promotes permeable pavement, that is, paving that allows rainwater to pour through it, instead of running off at high speed to an inlet and overloading the storm sewer system, taking pollutants downstream with the water, and eventually infecting our streams and oceans. To understand more about it, read reporter Dave Peterson’s exposés in the Minneapolis Star Tribune.

    On the surface, permeable pavers seems logical: pavement that allows rain to fall through. But what happens after the rain falls through the pavement – where does the floodwater go? A sub-base is needed to support the pavement. The rainfall must fall not only through the pavers, but also through the ground below. If you were to place permeable pavers on your back yard patio, supporting the weight of people and furniture would require very little sub-structure. If your lot was made of sandy soil that allows rain to quickly filter through, better yet. But if the ground underneath is clay or rock, the water must be retained or piped off with a sub-drainage system. If this is starting to sound expensive, as we say in Minnesota, you betcha!

    This sub-surface material must be sponge-like, and allow a conduit for water to either pass through to a piped system to be transported elsewhere, or have enough small void areas to retain the water until it can slowly be filtered through its lowest layer seeping back to the earth. To create a ‘base’ with properties that has ‘void spaces’, plenty of rock and large stone is used.

    Of course this means digging a very deep channel under the proposed pavement, moving (removing) the old soil and hauling in this sub-base material. A 100 foot long 30 foot wide road would require a five foot deep excavation with 555 cubic yards of soil to be removed, and almost the same in sub-base to be hauled in. Since a large dump truck holds up to 20 cubic yards (typically less), that small section of street would require at least 27 trips to and from the destination with 27 truckloads of rock, no doubt consuming massive amounts of petroleum.

    Anybody who has been in Minnesota in the winter knows that during, those seven months of freezing weather, cold is redefined. Water expands about nine percent as it freezes, so 555 cubic yards of water would increase about 50 cubic yards. Where does the water go? Up! Water pressure can lift pavers and cause havoc in the winter, so before cold weather sets in it is recommended that the liquid be vacuumed out of the sub-surface and hauled away. Now how much energy does that take?

    People and patio furniture are not that heavy, certainly not as heavy as a bus, which weighs somewhere between 26 and 40 thousand pounds transferred to the tires, depending upon the size and how many it is carrying. This weight is then transferred to the pavement, which is on top of rocks and stone that are intentionally ‘loose,’ to hold water.

    There is another problem with permeable pavement in some applications: water settles to a level surface. A few years ago we designed a low-impact, clustered neighborhood in Minnesota. At the ‘consultants’ meeting with the developer, the young engineer pushed the permeable paver idea. We had designed the neighborhood by harnessing the natural grade, embracing the heavily wooded site’s natural drainage to save most of the existing trees on the steep slopes. In other words, we planned to use what nature provided, eliminating much of the grading, costs and environmental impacts. On this site there were some fairly steep grades, in many cases exceeding a five foot drop in its length along private drives.

    The engineer aggressively insisted on permeable pavers. His idea was to create a five foot deep sub-base under the private drives (26’ wide) and run the gutters of the roofs underground to the sub-surface drainage system. In such meetings it is not polite to scream, “Are you out of your mind?” Instead, after the meeting I told the developer to kill the idea for being far too expensive. The developer did not heed my advice, and when the economics of the engineering was done, the cost escalated out of control. Several months of the engineer trying to (unsuccessfully) convince the city that the permeable pavers was a great solution caused the project to be delayed. By the time it was approved (with the natural drainage solution), the recession was in full swing and the development went dormant.

    From a personal experience, when I built my Green Certified home in 2008, MNGreenstar provided points for permeable pavement but only if the underlying base held the storm water underneath. The soil of my lot is sandy, and could have quickly absorbed the rainwater, allowing a fairly cheap sub-base, but the ‘green’ certification did not allow for compromise. The green certification ‘all or nothing’ approach meant that my sub-surface would have added $5,000 to the construction to get a few green ‘points’ encouraging the ‘nothing’ side of the equation. So, instead of designing the driveway with permeable pavement, we used sculpted landscaped strips (like the driveways of yesterday) to reduce the paved surface area and the overall costs. It is not unusual to see people taking pictures of my ‘low impact’ driveway, which adds curb appeal and value, however, we gained no green points for this logical solution.

    Why the motivation to push permeable pavement? In many cases it might indeed make sense. One reason is profitability, not by those selling the pavement alternatives, but by the consulting industry that specifies materials charging fees based upon a percentage of the construction cost. Permeable pavers and other ‘green’ alternatives can add a considerable amount to costs, and to the profitability of a consulting firm. If all bids were based upon rewarding solutions that cost less, with a penalty for solutions that cost more, consultants would truly deliver on the promise of sustainability; development costs and future maintenance burdens would plummet, while the environment would benefit. If we rewarded engineers employed by government agencies by allowing them to share a percentage of the money they saved by introducing green solutions that are cost effective, it would bring about change overnight.

    Can this be done? Absolutely. The technology and educational materials have been developed for this overhaul, but it would take effort and investment, since we’re currently in an economy where up to 65% of the architectural and land consultants are unemployed, and those remaining are not exactly overloaded with work.

    The EPA Section 438 is the Federal agenda to rebuild existing facilities and have all new construction (including all military bases) comply with low impact standards. On some new construction and redevelopment, permeable pavement could be effective, but it is unlikely to be cost effective where heavy loads, bad soils, and/or frigid weather occur.

    The decreased pavement width of New Urbanism is a start in the right direction, as long as safety and functionality are maintained. Combined with the reduced ‘length’ of infrastructure in plans like Prefurbia, it is entirely possible to reduce the environmental impact of newly paved development by about 30%, and of re-developed areas (i.e. EPA Section 438) by more than 50%, while increasing function and value. Now that we have the knowledge to do so, isn’t it time to start reaping the benefits of design techniques that reduce pavement without harming function?

    Photo by Mockney Rebel; “Pavement Archeology”

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and performanceplanningsystem.com.

  • Detroit: A Century On The Smart-Growth Grid

    The following excerpts are from a report that was intended to solve many of the planning issues facing one of America’s largest cities: Detroit. Its conclusions are in many ways counter to the ‘Smart Growth’ principles being promoted by influential decision makers. It was compiled by the city’s highest level planners and engineers:

    “One disadvantage under which Detroit is working is the extremely mixed character of its building – fifty thousand dollar houses, warehouses, saloons, institutions, slums, factories of all sorts, inexpensive dwellings, great apartment houses, and huge billboards follow one another almost in the same block, to the great detriment of practically all classes of occupancy. A zone system, if established, would bring order out of this chaos; and it would so stabilize the character of neighborhoods as to greatly increase land values. Though such control may at present be impossible, much may be done to assist in establishing zones or districts confined to one type of use, such as residential, industrial, and the like.”

    This suggests that the ‘Smart Growth’ goals of mixed uses and mixed incomes may not be so ‘smart’.

    Of course, those who believe in intermixing all sorts of uses and incomes on the same block refer to cities where, a century ago, such a mix was normal, and suggest that the isolation of modern transitional zoning is a far worse option.

    As we read further:

    “In this report, stress will be laid on the less expensive residential development, for which… if the street and lot system is not well adapted to it, there will result serious and at the time wholly unnecessary waste and expense. Moreover, the added cost in land and improvements is apt to cause a deduction in the cost of the building which will lower the standard of living in an entire district.”

    In other words, this report is referring to the importance in lower income residential development to create the most efficient form of streets and infrastructure. This would free up funds that would have otherwise been used for wasteful design to be applied to housing. The results of reducing wasteful construction would enhance living standards, instead of lowering them. The authors of this report understood the importance of efficiency, and how it relates to the welfare of residents outside the gentrified sections of the city. The report goes onto recognize one of the most important financial aspects of development:

    The house should normally represent three fourths of the cost; the improvements, such as sewers, sidewalks, etc. about an eighth; and the raw land an eighth.

    Why is this so critical? Before the current housing market crash and the resulting depletion of American bank accounts, home builders traditionally stood by this model. But after the dot-com bubble, where investors put their money into vapor-ware only to see their investments disappear, the new favorite investment became land and buildings. In many areas of the country developers and national home builders went on a bidding spree, hiking raw land prices into the stratosphere. In the past, the financial rule was that a completed lot could not exceed 1/4th the total home price. The ‘rule’ was now broken, ignored or modified. Financial institutions also turned their heads away. Had the real estate market continued to hold fast to the above formula that served history so well, there may not have been a housing crash.

    The report questions another aspect of ‘smart growth’, too:

    “No Alleys. Alleys are unnecessary and wasteful of room, except where dwellings are in continuous rows or in groups of three or more. For detached and semi-detached cottages the space between adjacent houses necessary for light and air is sufficient also for a walk from the street to the back door.”

    While alleys are fodder for heated discussions from many sides of the planning field, clearly this city’s planners do not like them, yet this particular city is full of alley-laden blocks. Those that blame poor planning on the automobile embrace alleys as a way to hide cars in the rear yards. What this actually does is literally surround the home with pavement and vehicle use-areas. Instead of reducing the connection between home and automobile, it increases the connection. The authors clearly recognize this, and go on to promote common gardens and play areas in the rear yards instead.

    The report is very specific about street design. It suggests that the streets be sized for the traffic count, rather than creating unnecessarily wide streets everywhere, perhaps recognizing that too many cities have one size that is supposed to fit all. Unfortunately, planning and engineering consultants often seem to feel, inexplicably, that a short cul-de-sac in a city serving 10 lots somehow carries the same traffic as a street with ten times or more that number of homes. Many sections of Las Vegas, for example, from the air look like a sea of paving and rooftop – and that’s in the suburbs!

    The report addresses street grids, as well:

    “In rough topography the rectangular and the formal have no place, as they require heavy construction expense otherwise unnecessary. Even in flat country… the depressingly monotonous effect of the rectangular system should be avoided, on economic grounds if no other, for the dead level of mediocrity to which it brings districts depreciates their total value very materially. While to be sure no site is worth very much less than the average, none is worth very much more, whereas with variety in the layout many lots may be created with unusual value, due to location, attractive outlook, and special shape of lot adapted to the needs of the particular resident.”

    Oh my, such harsh words against the very grid pattern that the ‘Smart Growth’ movement promotes. It seems that the authors are suggesting a much more organic design, which can eliminate the monotony that detracts from housing and community values. It would seem that the very rigid relationships that are being promoted by ‘smart code’ proponents would not be embraced in this city, at least not by the top level staff and advisors.

    The details of this report?

    DETROIT
    Published by the Commission
    1915

    It was located in the Cornell University Archives library annex. Called Detroit Suburban Planning, and authored by Arthur Coleman Comey, Landscape Architect, it was based on the preliminary plan for Detroit by Edward H. Bennett, Architect. It included input from the commissioner of parks and boulevards, the commissioner of public works, and the city engineer.

    I grew up just outside the border of Detroit in the 1950s and early 1960s. It seemed that, for the most part, development continued on the same grid patterns, ignoring this report for at least the 40 years that followed its publication.

    Today, to provide a hope for sustainability for Detroit, we need to heed the report and provide better housing for those that cannot live in architectural wonderlands that only the wealthy can afford, or be subsidized by tax dollars that are no longer available. The development process of trying to jam each and every unit allowed by a regulation’s most minimal dimension in order to achieve the highest possible density pretty much guarantees that the development will fall into the very same traps that the report warned us about.

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and performanceplanningsystem.com. To learn more about the kind of communities described in the report, check out Harvard University’s Graduate School of Design’s Landscape Urbanism writings and programs, or, to learn more about Prefurbia as applied specifically to this kind of redevelopment, click http://www.rhsdplanning.com/redev.swf (to request a DVD, contact rharrson@rhsdplanning.com.

  • China, Detroit, and Houston: How Ghost Properties Compare

    Learning about China’s property boom and its “ghost” cities has given me a whole new perspective on my four decades in the building, land development and consulting fields. During these periods our economy has had various ups and downs. In ‘up’ times, the rise in construction of new housing and growth in commercial developments has been quite obvious. What I have always had a problem understanding is why there seemed to be new housing projects and commercial projects that sprouted up during the bad times.

    Unlike this current recession — and I do believe that it is still current, despite the rhetoric that it’s over — past economic downturns were localized. As an example, I lived in Detroit in 1973 during the first gas crunch, when there were long lines to fill up. Unemployment in Detroit was a huge problem, and there was no work for a young ‘planner’ for new suburban developments, nor the prospect of anything turning around soon.

    I eventually decided to move to the south, where it was thought to be better. As I crossed into Texas, there weren’t any more gas lines. It seemed the entire State was booming. I drove through to Houston, picked up a phone book, and made a phone call to Paul Lederer Land Surveying and Engineering, which had a display ad that stuck out. Paul answered, and when I explained that I wanted to work as an apprentice to expand my knowledge into his field he hired me over the phone. I settled down, and after a year was ready to buy a home of my own.

    Detroit was still in economic hardship, with housing requiring a 20% down payment for a mortgage. At the same time, in Houston, homes were so much in demand that we had only minutes to make an offer once a home we wanted came on the market. Financing required only a 5% down payment.

    When a wealthy Detroit businessman heard that I could buy homes with only 5% down in a market that was escalating in sales and pricing I was offered a business proposition. I was asked to buy 50 homes at 5% down, and then resell them to a shell company for at least 10% more than our original purchase price. The homes would then be re-financed elsewhere with 5% down. The shell company would then default on the loans, and we would split the profits.

    In other words, if we paid an average of $30,000 each for 50 homes, we would have $1,500,000 in real estate, for which we had put $75,000 down. In theory, if I sold the homes to a shell company for $2,000,0000 with a $100,000 down payment, we would each walk away with $200,000 profit (roughly $790,000 in today’s dollars after inflation) if we defaulted on the loans. I was not interested in something that I considered fraud for a quick dollar, but it would not have been difficult to do this in real estate at that time.

    A few years later, Detroit was still in an economic downturn, and another person I knew was building large residential and commercial projects. These were new developments with hundreds of units and high-rise office towers.

    I mentioned to someone close to this developer that I was unimpressed with a venture to build at a time when there was not a market for either condominium buyers or office tenants, and curious as to why it was being pursued. A 20 story office tower would impress me if it were leased out; one sitting empty would not be so impressive.

    The answer was a lesson in economics. It was explained to me that the office tower was built for $10 million, but financed for $20 million, made possible by some inventive appraisals. Yet the bank needed only $1 million down. In other words, if the developments failed spectacularly there were still millions to be made, even if the properties went back to the banks. Ironically, Detroit in the late 1970’s and early 1980’s recovered somewhat, and the developments in question became financially viable and successful.

    I have no doubt that every industry, not just the development of land, has stories of financial shenanigans, but these are two examples of only a few that I have been exposed to during my 43 years in the development business.

    So today, whenever I see areas with aggressive construction that exceeds market potential, it makes me wonder…

    In light of this history, see what you think about development in China. Check out this 15 minute video from a major Australian broadcaster on China’s ghost cities.

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and performanceplanningsystem.com.

    Photo: Expensive waterside apartments in Shekou Shenzhen by DC Master.

  • Gifting China

    Listening to public radio, the host was interviewing a college professor as to why China has brought more innovation and progress in many areas of its growth, leaving other countries behind. In particular they mentioned high speed rail, low energy vehicles, and construction. The entire show was based solely upon how China’s universities educate differently than America, as if somehow a graduate student would suddenly posses the knowledge, experience, and drive to make major changes in transportation, science, design, and construction.

    When I hire American college students either as interns or graduates, what they have learned has little practical application as to the tasks that my business needs. Thus, we need to educate them on design (land surveying, civil engineering, planning and architecture), presentation techniques and the latest technology. What students do posses is a strong desire to make a difference in the world. I’m sure it is similar in China.

    China has made explosive progress by the process required of American companies who must comply with their restrictions to do business in their country. Let me explain:

    About 4 years ago we looked into designing neighborhoods in China. What we discovered is that an American company cannot do business directly in China. Instead of working directly, we would be required to enter into a partnership with an existing consulting firm in China. There is a problem with that requirement. If I would pursue business in China, I’d have to partner with a firm that did not have our talent, methods, or technologies we possessed. To work with an unknown firm would require us to share information that would have been exclusive to our firm, essentially training them in the strengths we took so long to accumulate. I figured that this would be a quick (and cheap) way their government could force American businesses to train their companies in our methods, and in most cases our advancements.

    Why would a company with a competitive edge want to provide privileged information to gain business? What is there to prevent that “partnering” business to break off relationships once they drain the knowledge base? Certainly they do not hire us because we have a larger workforce.

    American progress has been fostered by questioning why. Why is something being done this way? How can we make it better? This leads to innovation. Innovation was a major reason our country progressed more aggressively compared to countries that teach their students to think in only one way. China could see us as a knowledge base to farm information from our corporations wanting China’s riches.

    China seems to present an image of more progress. By forcing partnerships to do business in China we may have taught their corporations our best secrets. “We” being not just the United States, but every other country with their top designers, scientists, and technologies sharing knowledge.

    Once they have this knowledge and know-how, why would they need us? That is the foundational problem, and one reason I have not pursued work in China.

    The American way is innovation – something which I’ve seen little of in the development of our land and the building of our housing by the largest of American corporations. We should be going back to the drawing boards to accelerate American innovation and technology, and this time, not hand over this competitive edge so easily.

  • GIS and Online Mapping: Stretching the Truth Scale

    When I began my land planning career in 1968, one of the first things I learned about was the use of the Rubber Scale. What is it? Rubber Scale was a term used by civil engineers and land surveyors to describe an inaccurate plan that ignored the physical limitations of the existing terrain. To say that the planner or architect had used a Rubber Scale to create a beautifully rendered plan with pastel colors and soft shadows cast from tree stamps was a negative comment, since these plans were pretty much worthless to the engineer and surveyor that had to make the plans conform to regulations. Because the lines were hand drawn back then (and in many cases still are today), accuracy was, and remains, an issue.

    I was guilty of “stretching the scale” to maximize density, thus the term. The rubber scale was beloved by designers who wanted to look good to their developer clients. The developer expected a plan that maximized yield, and a plan that was of a higher density than they expected would surely be pleasing. Of course, these plans had no basis in reality. Ultimately, the land surveyors and civil engineers would lose the units we falsely claimed, and they would also get blamed for the density loss!

    Fast forward two decades to 1988, when GIS (Geographic Information Systems) began gaining market share. Government agencies (typically cities and counties) embarked on spending sprees with the promise of a new era in planning technology brought on by the advent and proliferation of the GIS technology, which blended graphic mapping information with a data base. You wanted to know property information, demographics, soil types? Just query the map. The sales teams of GIS mapping systems convinced those in charge of purchasing that “parcels” shown on the map could be traced quickly from a variety of sources, then later “rubber sheeted” into accurate surveyed section corners. As if by magic, inaccurate parcels would be made precise.

    So— early, existing hand drawn maps were traced into a computer, and the imprecise data was made even more imprecise. Even when the data came from aerial maps, created by flights several thousand feet above the surface, the accuracy was at best within three to five feet of actual location. What happens to curved boundary lines if the map is stretched to meet tens of thousands (or more) of lot corners, with all four section corners set accurately? The answer is, of course, a map that would be impractical to correct at a later date. Very few GIS maps exist today that were done using accurate land survey from the beginning.

    Fast forward another two decades and more to today, when Google Earth and its rivals, MapQuest and BingMaps, have unfortunately become the basis for site information. Call the data of these suppliers “on-line graphics”. There are a variety of software systems that boast that site layout can easily be done using on-line-graphics, or simply using the available on-line GIS mapping data.

    Here lies today’s problem: None of this information is likely to be accurate enough to be useful to an engineer or surveyor who ultimately must put their license on the drawing, guaranteeing its accuracy.

    GIS salesman make their sales commissions by convincing the world’s governments that data can be “adjusted” later to a more accurate data structure. This is true, but not economically feasible or practical. Since curved property lines are represented in a GIS system by a series of miniscule lines, it could be possible for the data to be corrected. This is like saying that it could be possible to temporarily build an approximate building and later on move walls to the locations shown on the plan. It would be possible, yes, but hardy cost (and time) effective.

    A lack of correct information is a huge problem when using GIS or on-line-graphics information. For example, it’s not possible to see contour lines that are accurate enough to determine flood plain, wetlands, or other information critical to the initial site design. Even when this information is shown on the city or county on-line map, what is the source of that data? Most of these maps are sourced to the lowest bidder. Was that wetland shown on the site just something that looked wet on an aerial map traced by a low-bidding draftsman, or was the wetland defined by an environmental expert who accurately surveyed it and somehow placed it precisely on the GIS map? This is the modern day version of using a rubber scale to measure the very data used to make decisions. Entire cities are stretched beyond practical use by surveyors and engineers.

    Many think that the on-line-graphics are taken from a satellite in space with some military camera that spy agencies use. Wrong! The images are derived from aerial mapping firms. These photographs might be several years old, which is why you might look at a newly developed suburban area, while the map still shows a farm field. You could be looking at a site to build residential units, not realizing a sewage treatment plant was recently built next door.

    Building Information Modeling (BIM) is a way for architects, engineers, contractors and owners to communicate and collaborate while designing a structure they are all involved in creating. The various parties can be instantly communicating worldwide on a single project located anywhere. Recently, I was participating in an on-line conference from one of the suppliers of BIM technology, who wanted to sell me on the idea of using BIM as an additional tool to use with our precision site design software. I require a developer to furnish us with an accurately surveyed boundary, topography, and any wetlands delineated precisely on the site before I begin my work. The BIM supplier took an office building from Florida (created accurately), and placed it on a site in South Dakota shown by Google Maps as if somehow that’s all there is to planning. Nowhere in the conversation did the salesman mention local regulations, site restrictions, where any easements might be (most often easements are not easily seen in photographs), etc. As soon as I was shown how a building from Florida could be placed on a site in a northern state using an on-line-graphics data base as the planning solution, the demonstration was over. Could BIM be used for site design? Absolutely, but only by using precision data from qualified engineers and surveyors, not on-line-graphics.

    The tax payers have financed billions of dollars worth of GIS systems with map data of questionable accuracy, with the understanding that the rough mapping data could be rectified accurately later. While true, the cost of converting existing maps would be prohibitive. The general public might think that these public data structures replace the need for land surveys and accurate civil engineering. But these vague images actually make it even more important to consult with a licensed professional to provide precision data before any design or development decisions are made.

    Over four decades ago I was guilty of using the rubber scale. New technology has promoted us into a new problem, and moved us from a rubber scale to a rubber sheeted world.

    Photo by edibleoffice: GIS of Hayes Valley, San Francisco.

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and performanceplanningsystem.com.

  • Faith-Based City Planning: Exorcising the Suburban Dream

    We’re coming to the end of the season when we focus a great deal of attention on faith. What is faith? The Biblical definition calls it the substance of things hoped for; the evidence of things not seen (Hebrews 11:1, KJV). Humans have the capacity to firmly believe in something that cannot be explained by reason and is not visibly evident. Faith is the basis of the world’s major religions, and often is a cause for war, and today, terrorism. But though the season of faith may be winding down, there is still a place where faith remains strong year round: It is often the basis of the way we plan our communities.

    Over the past two decades, our city planning has become faith based. A new preacher has evolved in the form of the Architect or Planner who evangelizes to the congregation that they can all live in serenity if they have faith in the teachings. Their sermons of architectural commandments introduce dimensional ratios that can deliver a utopian existence, promising a wonderland for families.

    To enforce faith, you of course need an evil entity to oppose. The evil entity in the faith of land planning is The Suburbs. Those that believe in the suburbs are inherently evil and must be converted or they may spend eternity dammed to a cul-de-sac. The automobile is sacrificed on this altar, with the chant “Space – Space – Space”.

    Converts to this faith include many if not most, politicians (not just liberals), architects, planners, environmentalists, movie stars, and many in the press. Those that have not converted yet include land developers, builders, city council and planning commission members, and the majority of the home buying market.

    Some of the principles this faith are as follows:

    • Thou shalt build upon thy dwelling a porch of such magnitude that it can serve as a gathering place.
    • Thou shalt construct a path of 2 cubits (approximately 4 feet) wide near thy porch for followers to meet and pray that a cul-de-sac shall not influence thy offspring.
    • A place for chariots shall be placed upon the buttocks of thy dwelling. Thy chariot must not be nearer to the dwelling than 4 cubits or thee will be smitten.
    • Thou shall plant a tree half a cubit from thy curb and in front of thy porch.
    • Create a place for gathering no farther than 600 cubits from thy dwelling.
    • Thy dwelling shall have Craftsman trim.
    • The path to heaven is taken by bicycle, light rail, or walking, not by powered chariot.
    • A congregant must dwell in extreme closeness to thy neighbor.

    Myself? I’m a disbeliever; a heretic who thinks there is no place in the design of our cities and neighborhoods for this belief system to be regulated or enforced. If development companies are believers, then by all means let them develop their land in such a manner, as they will have the faith that homes will sell to those that also believe.

    The danger arises when Federal funding is tied to the faith, on the basis that developments of extreme density will surely result in less vehicular miles traveled and a more healthy environment for human creatures. Do not follow this faith, and good luck getting funded. Is this the American way?

    I do not believe the automobile is evil, and I’m thankful that I live in an era where I can think nothing of traveling 20, 30, 40 miles or even 400 miles. A hundred years ago my ancestors had no such luxury.

    I am thankful that I live in a place that offers a sense of space, yet is not too distant from neighbors and services. I am especially thankful for choice. Yes, there is a coffee shop about a 10 minute walk away, but a three minute drive will get me to a coffee shop that offers more tasty drinks at lower costs.

    Looking outside, I see two feet of new snow. I’m especially thankful that I do not have to use our icy walks in the sub-zero temperatures, and wait for the bus that connects downtown to the bus that would take me to within a ¼ mile of my office. Yes I’m thrilled to have a 5 minute drive to work instead of an hour bus ride (buses connect downtown, not in the burbs). Of course, those with faith believe that exposure to sub-zero weather and walking along icy surfaces is somehow healthier.

    I lack the faith that extreme density without car ownership is a better way. As a disbeliever, I cannot find the faith to believe children being brought up in high-density, high-rise projects have the same quality of life as those brought up in homes with a secure and safe yard to play in. I cannot find the faith that living in high rise rentals is an American Dream.

    I do believe the consumer will not flock to this new life of high density living. Yes, New York today is a somewhat exciting place to visit, but just a few decades ago it was a truly awful place. What will it be like two decades from now? Will it be a great place to live for those on the lower side of “middle income”?

    I believe there is no magic architectural solution to create a better society – none. There is no special setback, density, or building-to- street ratio that can somehow provide a better life. There is no software button one can press to analyze land use and, bingo, spit out a solution. To believe that any of formula of that sort could be workable takes faith, a faith that is apparently held by many.

    I also believe that it’s simply untrue that the suburbs are not walkable. In the southern states, most cities demand walks to be constructed on both sides of the street. Because of snow, as one ventures north, walkways become less mandated. I have visited (and not on a press tour) the developments of the faith of land planning: I’On, Kentlands, Celebration, SeaSide, WaterColor, etc. What I’ve observed is that there seem to be no more or less people walking than what I have seen in conventional suburbs. On these visits I have never seen a single person sitting on his or her front porch – not one.

    Yet I do believe that a full front porch is important for two reasons. The first is that it connects the living spaces to the street, and it can be used to congregate. But secondly, there is a warmth to a neighborhood of homes that have full porches. It adds character, compared to the coldness of a development lacking porches. So— how the porch is used is not the only measure of its success.

    The sooner we can get faith out of the design of our cities, the sooner we can implement sustainable solutions that have a positive effect on our living standards and help get our housing market (and our economy) back on track. And yes, I hope I’m dammed to a cul-de-sac for eternity!

    Photo by Will Hart of College Hill, Rhode Island – Looking North-East with The First Baptist Church in America (1775), 75 North Main Street in the foreground.

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and performanceplanningsystem.com.

  • Belly-Up In The Burbs: Bank-Owned Developments

    In 2009, the number of repossessed autos increased to 1.9 million. The number of homes under foreclosure varies from month to month, but the 2009 total was about 2.8 million. For 2010, it seems that a million new foreclosed homes would be conservative, with a large percentage in California. Miss a few payments on an auto loan and you may wake up to an empty driveway. On the other hand, repossession of your home is a long drawn out process.

    What kinds of communities have been hardest hit with foreclosures? Tom Cusack, a retired federal housing manager in Portland, tracks the issue via his Oregon Housing Blog. This summer, he was quoted in the Portland Tribune, saying “The foreclosure activity that is occurring in suburban markets in Oregon is unprecedented. It’s affecting not just rural areas, not just inner-city neighborhoods, but suburban neighborhoods, probably more substantially than any time in the past.”

    Daniel Ommergluck of Georgia Tech also studied this situation. His findings, he says, contradict “…some suggestions that the crises was primarily centered in suburban or exurban communities.” It concluded, “The intrametropolitan location of a zip code appears to have been a less important factor in REO (real estate owned) growth than the fact that a large amount of development in newer communities was financed during the subprime boom.”

    Decades ago, a young couple would have had to save for many years to accumulate the considerable down-payment to buy their first home, and the prospect of losing that home to foreclosure would have been devastating. With the more recent “easy financing,” though, there has been little to risk. The low effort to move into that new housing development has meant less “emotional” investment. When home prices escalated beyond reason in the years prior to the crash, it left many home buyers over-exposed, specifically because of the easy mortgages.

    The local economy also determines which suburbs suffer the most. Certainly homes in prosperous Houston or San Antonio that did not ride the absurd price increases fared much better than Detroit, with its bleak employment picture, where homes are imploding in value.

    Historically, the U.S. suburban home buying market is somewhere between 70% and 80% higher volume than the urban market. In other words, for every ten homes sold, seven or eight of them are likely to be suburban. So, it would stand to reason that the foreclosure crisis would be focused in the suburbs. Yet suburban vs. urban data on the subject is scarce.

    It’s probably more reasonable to assume that the local employment situation would have a larger effect than whether a community is urban or suburban. For example, when the Ford Plant in urban St. Paul closes, there will be 750 employees out of work and at risk of eventual foreclosure if the job market remains depressed. The residential area abutting the Ford plant is actually very nice, suggesting that many of the workers might live in the nearby city, not in the suburbs. Several miles from the Ford Plant is the suburb of Eagan where Lockeed Martin will close down their operation and put some 400 highly paid people out of work. These newly unemployed workers also may ultimately end up with their homes in foreclosure if they cannot gain highly paid employment elsewhere. Thus suburban vs. urban foreclosures are related to a very localized economy.

    There is, however, a greater menace to the suburbs than home foreclosures. It is when an entire development is foreclosed and becomes bank owned. Since the urban foreclosure is likely on a home that has been sold many times since the development — let’s call it ‘Jones Addition’ — was first built in 1925, the developer going broke is meaningless to the urban dweller.

    However, when ‘Jones Acres’ in Pleasantville was opened just five years ago, and phase one sold out with the beginning of phase two of 12 phases just started at the time of the crash, a very different and dangerous scenario arises. You see, Jones Acres is comprised of 500 lots. Of those, perhaps 40 were purchased by new suburban home buyers trusting that the amenities would be built as planned and promised.

    When President Bush announced that we had a 700 billion dollar problem and needed to bail out the banks, those same financial institutions essentially called the loans, which closed down much (probably most) of the nation’s developers. Land was no longer secure, and the development repossessions began. Without the banks funding, developers could not afford to properly maintain the grounds, associations failed, and eventually the banks were the new owners.

    Here in Minnesota, I know of few suburban developments that have not been foreclosed on. This would seem to be a greater threat to the future of the suburbs than individual homes being lost. Yet very little attention has been paid to the volume of bank owned developments. Much of the suburban land was purchased under contracts to farmers that took the land in phases. If a major builder committed to taking down the 500 lots in Jones Acres, and placed a million dollars in initial money ($2,000 a lot for the land), and after 40 lots decided to walk away, it left the farmer holding the land now likely taxed much higher and in danger of foreclosure. It made sense in many scenarios for the major builder to walk away and lose its lot deposits. Later on, if the development failed and the bank needed to unload the property, another major builder might be able to pick up the lots at 10 cents on the dollar, and just sit on the property for years until the housing market starts to recover.

    Since the recession began, a group of us approached banks with an offer to review the approved plans and re-plan some idle developments more efficiently and sustainably. This state of limbo would have been an excellent time to redesign the land into a much more sustainable (and profitable) product with little outlay from the financial institution. We could not find a single bank that was interested in adding value.

    Often the initial developer imagines the details of a neighborhood: the amenities, the architecture, the landscaping, and the marketing. What happens when a bank takes over? The banker most likely lacks this forward vision, and sells the development later to a buyer who offered 1/10th of the initial land cost for an approved platted development. Bah humbug, this buyer says, who needs a front porch, parks are for drug dealers, and if streets were meant to have trees, then the lord would have planted them there! The result is a highly visible, low value community.

    Cities approve developments based upon relationships. The recession eradicated so many promises that may now never be realized. Foreclosed homes in the cities or in the suburbs are less of a problem than foreclosed developments… and in this case, the suburbs lose – big time!

    Photo by Sean Dreilinger: One of two adjacent bank owned homes.

    Rick Harrison is President of Rick Harrison Site Design Studio and Neighborhood Innovations, LLC. He is author of Prefurbia: Reinventing The Suburbs From Disdainable To Sustainable and creator of Performance Planning System. His websites are rhsdplanning.com and performanceplanningsystem.com.