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Matt Yglesias and Lydia DePillis have been having an interesting discussion about the DC commercial real estate market that I have some thoughts on, so I thought I’d weigh in. I apologize for the length of this post, but I think it’s a really important point that shouldn’t be underestimated. Matt started by stating the following: Downtown DC is full. There’s basically no land left to build on, and you’re not allowed to build higher. If you make it a more attractive place to locate jobs, no additional jobs will be created because there’s noplace to put the jobs. The improved quality will show up as higher rent for landlords, and our rents are already the highest in the nation. If you relaxed the height limit, the high rents would spur new construction (=jobs) which would lead to lower rent per square foot which would make downtown, DC a more attractive employment destination. Lydia agreed that the height restriction should be lifted (I don’t want anyone to think that Lydia is an apologist for this – she’s definitely not, and if given total discretion over DC land use, I think all three of us would implement very similar policies), but argued that Matt is downplaying growth possibilities outside the core of DC’s downtown: But to say that “there’s noplace left to put jobs” is simplistic. Although many office projects stalled during the recession, they’re starting up again in a big way around the city, from Mount Vernon Square to Anacostia. On the longer term horizon, massive office capacity is planned for McMillan, L’Enfant Plaza, and the Capitol Riverfront. Recent changes in who gets what at Walter Reed – the District may now get all of the Georgia Avenue frontage – has Office of Planning director Harriet Tregoning thinking about “more ambitious […]
This should come as no surprise to anyone who’s taken a look at America’s absurdly restrictive minimum parking requirements, but Streetsblog has come up with a really great example of really bad parking policy in action: The HUD-sponsored project, located on Bathgate Avenue between 183rd and 184th Streets, was originally slated to be an 18-unit building. Under the zoning that used to govern the site, the parking minimums were low enough that fewer than five spaces were required, said Ferrara. With such a small number of required spaces, the project was eligible for a waiver, meaning it didn’t need to build any parking at all. In October, however, the area was classified as a “neighborhood preservation area” by the Department of City Planning in its Third Avenue/Tremont Avenue rezoning. The new zoning, known as R6A, carries slightly higher parking requirements for affordable projects [PDF]. “When we went down to an R6A,” said Ferrara, “it put us in a position where we couldn’t get the parking waived.” In effect, the rezoning added parking requirements where there hadn’t been any before. I’ve praised Bloomberg’s rezoning in the past while also worrying that the lack of parking minimum reform would hold back growth. It looks like I was too generous—in some cases, the rezoning has actually made the parking minimum problem worse. And just for the record, I looked up the location on a map, and the specific location is about a 10 minute walk to the closest B/D local station on the Grand Concourse. Its zipcode is pretty poor – 10458’s average adjusted gross income has been in decline since 2000 when adjusted for inflation, and currently stands at only $23,781. And obviously it’s a HUD project. There’s also this interesting bit: Even though he reported that it’s “not uncommon” to subdivide a […]
1. An excellent Wikipedia article about the old DC streetcars. I wish there were more economics, and I’d also like to know about the state-mandated consolidation that they talk about in the mid-1890s. Also note that streetcar use reached its peak in the mid 1910s – when people talk about interstate highways and the Great American Streetcar Conspiracy, they’re starting the story decades too late. 2. A dissenting (heh) view of Ed Glaeser’s book. My criticism of Glaeser would be that sometimes he starts speaking very generally and starts sounding a little whacky (which I think is what the reviewer here is picking up on). Perhaps his work wouldn’t be so popular if not for this tendency to paint in broad strokes, but I would like to see more specific analysis of land use laws and how Glaeser would like to change them. I haven’t read the book, though – does it get more nuanced than the excerpt in the Atlantic? 3. Human Transit publishes a reader comment and gives some great analysis of transit agency’s staffing and frequency. Apparently labor is the biggest constraint on frequency outside of peak hours, but many systems have labor and safety regulations that force transit agencies to overstaff trains. The efforts of unions to keep the unnecessary second man on transit vehicles are almost a century old, despite massive advances in transportation technology that have long since obviated the need. 4. This is cool. 5. DC’s gas stations are not long for this world as the condo onslaught continues. Urban gas stations rarely seem to me to be efficient uses of space (the gas station on Houston Street in Manhattan is the prime example) – does anybody know how rigid the zoning guidelines they fall under generally are? Are they zoned only for […]
1. China’s high-speed rail scandal. So much for Obama’s State of the Union shout-out. 2. Boston, Philadelphia, and DC are all moving towards parking reform – both of minimum off-street requirements (unfortunately to be replaced with maximums in most cases) and of underpriced curb parking – but NYC’s the laggard. Like I noted a few weeks ago, this could be sabotaging its recent upzonings. 3. One Democratic Assemblyman wants to hamstring the NYC subway with yet another ridiculously overbearing safety rule – literally forcing trains to come to a complete halt right before entering a station – adding significant time to existing commutes. 4. NYC’s FRESH initiative gives money to a politically-connected supermarket for a parking lot. Wait, isn’t car-owning food desert victim an oxymoron? 5. Downtown San Jose’s Diridon station – the most transit-accessible place in San Jose – is getting $10 billion worth of new rail. Zoning consultants were paid for a year, and came up with the following recommendation: “no proposed changes to current code.” Got that? $10 billion in rail investment in one of the most progressive places in America and there will be no new TOD allowed.
Ed Glaeser has a sprawling feature story in The Atlantic about skyscrapers that’s full of urbanist history and themes that I’ve been meaning to blog about for a few days now. It’s a great article, with a lot of New York history in it, but I wanted to highlight a few bits. The part I liked most was where Glaeser talks about what I’ve called development as preservation and others have called adaptive reuse – the idea that making use of existing developed land is the best way to preserve historic buildings, although Glaeser also points out that it’s useful for preserving open land like parks, too: In 2006, the developer Aby Rosen proposed putting a glass tower of more than 20 stories atop the old Sotheby Parke-Bernet building at 980 Madison Avenue, in the Upper East Side Historic District. Rosen and his Pritzker Prize–winning architect, Lord Norman Foster, wanted to erect the tower above the original building, much as the MetLife Building (formerly the Pan Am Building) rises above Grand Central Terminal. The building was not itself landmarked, but well-connected neighbors didn’t like the idea of more height, and they complained to the commission. Tom Wolfe, who has written brilliantly about the caprices of both New York City and the real-estate industry, wrote a 3,500-word op-ed in The New York Times warning the landmarks commission against approving the project. Wolfe & Company won. In response to his critics in the 980 Madison Avenue case, of whom I was one, Wolfe was quoted in The Village Voice as saying: To take [Glaeser’s] theory to its logical conclusion would be to develop Central Park … When you consider the thousands and thousands of people who could be housed in Central Park if they would only allow them to build it up, boy, the problem is […]
In Next American City, Aaron Barker discusses the failure of NYC’s massive rezoning in the highly transit-dependent black and immigrant neighborhood of Jamaica, Queens: One of the centerpieces of [NYC’s] initiative to house an expected 1 million new arrivals in the coming decades was the Jamaica Plan. Covering 365 square blocks surrounding a major rail hub in Queens, it was the largest rezone in the city’s history, projected to bring 9,600 jobs and 3 million square feet of new commercial space to the area. Even though it’s been over three years since the resolution passed, almost none of the expected 5,100 units of new residential construction have materialized. In fact, the only real activity has been at MODA, a 350 unit, mixed-income rental complex that opened this summer. He then poses the question: “Can redevelopment on a meaningful scale really only occur in already sought-after areas?” While it’s true that Jamaica did undergo a tremendous upzoning, there was one element missing: Minimum parking requirement reform. From what I can tell from NYC’s zoning maps and code (which are notoriously difficult to understand), there was barely any let-up at all in the Special Downtown Jamaica District (zoning district “DJ”), despite the NY Metro Chapter of the American Planning Association asking the city planners to eliminate the minimums (.pdf). Streetsblog actually wrote about this tendency to upzone without lifting parking minimums a year ago. Now, I don’t have any specific knowledge of Jamaica – I’ve only actually been to Queens once. But based on this study that we featured a few weeks ago, developers in NYC in general (and actually the study focuses on sites in Queens) only build as much parking as the zoning code mandates, implying that it is a binding constraint on development. So before we declare that zoning […]
Big news out of Washington: Fannie Mae and Freddie Mac – which many (including me) think were at the heart of the financial collapse, and currently have some stake in the vast majority of post-crash mortgages – may be getting wound down soon. This NYT is reporting that the Obama administration may be releasing three plans at the end of the week, and the preferred (!) one is to shut down the two lenders entirely. These lines also stood out to me: Representative Scott Garrett, the New Jersey Republican who is chairman of the House subcommittee that deals with housing finance, on Monday told a mortgage conference in Florida that the government should leave the mortgage business. “I believe that, if there is to be any government assistance to homeownership, it should be limited to first-time homebuyers or rental housing,” Mr. Garrett said. Note that “rental housing” isn’t “homeownership” at all. Personally I think it’s a good idea to get the government out of encouraging homeownership entirely, on the grounds that homeowners are more likely to be in the perverse position of wanting the cost of housing – a basic expense for everyone – to go up, resulting in pervasive government interventions like anti-density zoning and blowing up the housing bubble. But even beyond this indirect sprawl promotion, they have inherent anti-density biases like their refusal to fund small mixed use projects.
Ben Ross at Greater Greater Washington has an excellent post about the pernicious habit of states (and maybe the federal government?) mislabeling sales taxes as user fees. Sorry for pulling such a long bit, but it’s good: Maryland is considering raising its gas tax. This long-overdue measure would allow some of the general revenues now subsidizing highways to go to the Purple Line, the Baltimore Red Line, and MARC expansion instead. This need has unfortunately gotten mixed up with a proposal, originating mostly from the highway lobby and its supporters, to put transportation money into a “lockbox.” The concept is to amend the state constitution to forbid transfers from the trust fund into the general fund. However, there’s a big hole in the bottom of the “lockbox.” Contrary to what some say, the money in the transportation trust fund mostly come from revenue sources that would have otherwise have gone into the state’s general fund, where it wouldn’t be locked. If I buy a bicycle in Maryland, I pay 6% sales tax and the money goes into the general fund where it pays for education, public safety, the governor’s salary, and other state expenses. Cars and gasoline are exempt from the sales tax. Instead, if I buy a car, I pay the same 6%. but it’s called “titling tax” and the money goes into a separate trust fund that is used only for transportation. It’s essentially the same when I buy gasoline, where the tax rate of 23½ cents a gallon comes to a little over 8% of the pretax price. […] The idea behind the lockbox amendment is that drivers pay for the roads they drive on. This idea is mistaken, but it’s widely held, and it’s an enormous obstacle to sensible transportation planning. The danger lurking in the […]
Something that’s always bothered me about mass train stations in America is that very few take advantage of the commercial advantage in having access to huge numbers of semi-captive customers with nothing to do for a few minutes. As I’ve mentioned before, one of the key reasons that Japanese rail is profitable is that the mass transit companies internalize the positive real estate externalities by owning land in the vicinity. Since transit agencies in America are publicly owned and very inefficient as a result, getting them directly involved in real estate is probably not the best idea. But they should still try at least to maximize the real estate they already have – on their station platforms, both above ground and beneath. Washington, DC’s Metrorail system is the perfect example of a lost revenue opportunity. Because the stations were built relatively recently and with enormous government largesse, they are quite large compared to normal subway stations. Especially in crowded transfer stations like Metro Center and Gallery Place, there’s a ton of room for vendors to set up booths and sell things like coffee, food, and magazines. And in fact DC desperately needs an underground pedestrian pathway between the aforementioned stations to ease extreme crowding on the Red Line, which could be at least partially funded by selling off space in the new tunnel. (Ditto with one linking Farragut North and Farragut West.) DC currently doesn’t allow eating or drinking in its stations, but this would be a silly thing to let get in the way of funding for a system that desperately needs it. The metros in Paris and Bucharest both allow food to be sold underground, and neither seemed any more or less dirty than the DC Metro. Outside of DC, a lot of the regional rail stations in […]
Andrés Duany, leader of the New Urbanism movement, comes out against LEED standards: He said that high-density development in urban locations which entail less reliance on private cars should get a free pass on energy efficiency or energy generation standards. “Don’t make apartment dwellers install solar power,” he said. “They are doing their part just by living densely and driving less.” […] Duany also had choice words for government land use and building officials. In New Orleans, he said that government standards for rebuilding added costs that just about exactly offset the amount of assistance the government was going to provide, so “no one can rebuild.”