Daily insights for city builders, delivered every morning at 6 AM ET. I’m Brandon Donnelly — a Toronto-based real estate developer and founder of Globizen. I’ve been writing here since 2013.

Month: January 2016

  • Hybrid 1-2-3

    For those of you who have been reading this blog since last summer, you’ll know that I’m particularly passionate about the Gardiner Expressway East here in Toronto.

    Last night a public meeting was held to discuss the 3 alternative designs for what has become known as the “hybrid” option. If you’d like a visual summary of the options, click here.

    But essentially as you go from hybrid 1 to hybrid 3, the elevated Gardiner Expressway just gets pushed further north, away from the water. So as you go from 1 to 3, the hybrid option becomes less offensive to the waterfront and its associated public realm, and it opens up more land for development. However, it also becomes more expensive.

    Here’s a graphical summary of the costs, which my friend Gil Meslin tweeted out last night:

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    Notice that the boulevard (remove) option, which City Council rejected last summer, remains by far the most cost effective option. At a time when the city is searching for cash, I am surprised that nobody is looking here.

    I am also surprised to read that some are commenting on which of the above hybrid options will be the easiest to tear down should we want to remove the Gardiner East in the future. If that’s the lens we are applying, why rebuild it in the first place?

    But enough from me. What do you think? Here’s a Twitter poll I created this morning:

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  • What is an urbanist?

    Cities are in vogue. And that has brought about buzzwords like urbanism, tactical urbanism, urbanist, and the list goes. But what exactly does it mean to be an urbanist?

    If you look it up in the dictionary, you’ll likely get something along the lines of: someone who is a specialist in city planning. But I bet that there are many people out there who would self-identity as being an urbanist, but who would also not consider themselves specialists in the field.

    The term has evolved to imply other things.

    To this end, Scott Bonjukian (over at The Urbanist) recently wrote a good piece called, Why I call myself an urbanist. And in it he offered up this definition from the former mayor of Seattle, Michael McGinn:

    “At the core, urbanists want more people living in cities, so they support more urban housing of all types. They prioritize walking, biking and transit, and support a high quality shared public realm. Parks, nightlife, theaters, transit and taxis can replace backyards, TV rooms and private cars. That way we can live well with less stuff, sprawl and pollution.

    I’ll go a little further, and say urbanists prefer bottom up, granular, and seemingly chaotic innovation to top-down planning and mega-projects. Think the “Main Street” of neighborhoods with food trucks and lots of little stores, as opposed to tax-subsidized big box stores with legally required massive parking lots. Bike lanes, crosswalks and plazas instead of public garages and new highways.

    Urbanists believe that mixing people and ideas creates wealth in a city. Why else would people choose to live so close to each other? Cities, therefore, should be open to people of every background, ethnicity, race and class to maximize the potential from our human capital.”

    Scott added that most urbanists are probably also environmentalists on some level, and I can certainly see where he’s coming from with that. Regardless, I think the above definition is pretty apt.

    But if you unpack some of the points, this definition raises some interesting questions. For instance, take the first line around supporting housing of all types. 

    This could mean that even if you lived in an inner city transit-served single family neighborhood, but you didn’t support alternate housing types such as duplexes, triplexes, accessory dwelling units and/or laneway houses, then you might not be a true urbanist. You would rather homogeneity over a “chaotic” mix of housing types. And I can certainly think of inner city neighborhoods in Toronto that have fought against “monstrous” duplexes. 

    So I would be curious to hear your thoughts on the above definition of urbanist. Do you agree or disagree? Is there anything you would add or take away? Are you an urbanist? Let us know in the comment section below.

  • Toronto’s King Street to be transformed into a transit + pedestrian corridor

    Take The Car by Jason Cook on 500px.com

    https://500px.com/embed.js

    I try not to focus on local Toronto issues this much, but this morning an important initiative was announced and it’s blowing up my Twitter feed.

    By spring 2017, the city hopes to have a pilot project in place that will transform King Street – running from Liberty Village in the west to the Distillery District in the east – into a priority-transit and pedestrian corridor.

    This isn’t to say the street will be closed to cars. I would imagine that at least 1 lane would remain for cars going each way. Instead it will be redesigned to prioritize transit, pedestrians, and cyclists.

    So why is this exciting?

    The King streetcar is currently broken. If you’ve ever taken it across downtown during rush hour, you know exactly what I mean. It’s infuriating. You might as well be crawling on your hands and knees. One of the goals of this initiative will be to get it working again. Good.

    The shoulders of downtown – along King West and King East – are seeing some of the greatest intensification in the region. So much that it’s common for people in this city to complain that Toronto misplanned it all by allowing this development before the transit was there. Well, this is a quick and inexpensive way to get the transit there. Remember that when the inevitable “war on car” rhetoric ratchets up over the next year.

    The project will be deployed, first, as a pilot project. That will allow the project team to test and iterate. It has also become the way you get things approved in cities. You first make them temporary. 

    But I am certain that we will quickly discover how necessary these changes were.

  • 3 changes to John Tory’s SmartTrack transit plan

    Last week Oliver Moore of the Globe and Mail announced that Toronto mayor John Tory’s SmartTrack transit plan is evolving to feel less like SmartTrack and more like what Metrolinx had been planning all along.

    Here’s the map from the Globe and Mail:

    The 3 big changes are as follows (and numbered accordingly on the above map):

    1. 

    The western end of the line will be replaced by an extension of the Eglinton-Crosstown LRT (currently under construction) running from Mount Dennis to Pearson Airport. This is what was originally proposed.

    2. 

    The “U” running from Mount Dennis in the west, down through downtown, and up to Kennedy in the east is what remains of the original SmartTrack line and will operate as some sort of “heavy rail” service on existing GO Transit lines. The original election campaign plan was to run trains every 15 minutes, but that was deemed too infrequent to attract riders, so now Metrolinx and everyone is trying to figure out how to get it down to every 5-10 minutes and feel more like subway.

    3. 

    The extension north of Eglinton Avenue to suburban Markham (in the northeast) is being pushed out and will be dealt with sometime in the future. Keeping the first phase of SmartTrack south of Eglinton on both ends is beneficial in avoiding the issue of SmartTrack and the Scarborough subway extension cannibalizing each other. (In my opinion, this issue is a perfect example of what happens when transit planning becomes too political.)

    The net result is a plan that is looking less and less like the original SmartTrack. I’m not complaining though because I have never been a big supporter of SmartTrack. I have always thought we should be focusing on the downtown relief subway line and on allowing Metrolinx to just execute on its regional express rail (RER) strategy.

    For more on this topic, check out Steve Munro’s post, SmartTrack: Now You See It, Now You Don’t! He’s far more of an expert than I am on these sorts of issues.

  • Share your big idea for Canada’s #Capital2067

    Parliament Hill by Maryus Bio on 500px.com

    https://500px.com/embed.js

    On Thursday night I spoke at an Urbanism Lab event in Ottawa put on by the National Capital Commission.

    The event was all about the interconnection between the online world of blogging and social media, and the offline world of tangible city building.

    More specifically, one of the goals was to help inspire institutions, such as the National Capital Commission, to better leverage these new channels in order to get their message out.

    Social media and blogging may be ubiquitous, but lots of organizations are still getting their heads around it.

    So today I thought I would do my part and share something with all of you that, truthfully, I didn’t know was underway until I visited Ottawa.

    But first, how many of you (Canadians) are exactly aware of what the National Capital Commission does?

    The NCC is a federal Crown corporation that is focused on 3 specific mandates:

    1. They are the long-term urban planner of federal lands in Canada’s Capital Region. They are also the largest landowner in the region.
    2. They are the principal steward of nationally significant public spaces and buildings, including the Capital’s six “official residences.” Residences such as 24 Sussex Drive.
    3. And they are a “creative partner” on initiatives that tie into both development and conservation.

    To this end, the NCC is now working on a Plan for Canada’s Capital, 2017-2067. This is a 50-year plan that will outline what they do with federal lands, buildings, parks and other symbolic spaces in the Capital. And it will identity which projects would best craft and represent our national identity, as well as strengthen Canada’s influence in the world.

    This is all pretty important and interesting stuff. But unfortunately I didn’t know it was underway. And I also didn’t know what they were looking for “big ideas” from Canadians. These are ideas that will directly shape the 50-year plan.

    So if you have an idea – big or small – for the National Capital Commission, I would encourage you to click here and share it with them. Not only is this city building in the Capital, it’s also nation building.

    Please also feel free to copy and paste your idea(s) in the comment section of this post. These ideas definitely deserve a fulsome discussion. I will post mine once I write it.

  • Brébeuf

    I woke up this morning at 5:30 am in a hotel in Ottawa.

    I then drove to Brébeuf, Quebec to meet some friends for a ski and snowboard weekend. (It’s beautiful here.)

    Upon arriving I was faced with a large hill that my rear-wheel car with all season tires was absolutely not prepared for. So that sucked up about an hour of time.

    After we unstuck my car, we then spent the day skiing and snowboarding at Mont-Tremblant. (First day of the season for me.)

    At this point all I can think about is a good night’s sleep, so I’m afraid that there won’t be much of a post today on Architect This City.

    But please feel free to hijack the comment section and talk about whatever you would like. Maybe we can get some action started there.

    I would actually be really curious to see what topics interest all of you.

  • From art to framework

    Chilean architect Alejandro Aravena has just been awarded the prestigious Pritzker Prize – the highest honor in the world of architecture. 

    Alex Bozikovic of the Globe and Mail has a fantastic write up about it that focuses on how choosing Aravena – an architect known for his social housing – is quite a departure from the “starchitects” of prior years. 

    One of Aravena’s most famous works is known as the “half of a good house”, which I think is an incredibly clever project. The idea here was to literally provide half of a good house but then design in the flexibility for owners to expand as they have the means. 

    The rationale behind this was to get around the fact that poorer Chileans would not be able to afford a full good house, unless of course they went far out of the city. But rather than physically disconnect these people from the opportunities of the city, this was deemed as a better solution. I think that makes a lot of sense.

    But beyond being hyper practical, it also pushes architecture away from being a work of pure art that shouldn’t be meddled with, towards more of a housing framework that is supposed to altered and built upon. 

    Many architects wouldn’t like to give up this kind of control over their capital A, Architecture. But for Alejandro Aravena, he’s clearly about something quite different. 

    Congratulations on winning the Pritzker Prize!

    (I apologize for not having any links or images in this post. It’s because I wrote it from my phone on a flight.)

  • Additional thoughts on land prices

    Daniel Hertz over at City Observatory just published a post talking about why land costs are so important when it comes to home prices. More specifically though, his post is intended to refute a claim that multifamily housing is always going to be more expensive than single family housing.

    The key concept here – which is critical to understanding urban real estate economics – is that home values are essentially made up of two things: the land and the improvements (i.e. the building). 

    When home prices rapidly appreciate, as has been the case in cities like Vancouver (see below) and Toronto, it’s not the building, but the land that’s really driving the price up. 

    And as you can see from the chart below (which Daniel shared in his post), it is possible for multifamily housing to be less expensive than single family housing. 

    image

    So why was someone arguing that multifamily housing is more expensive?

    Well if you look at just construction costs, then this is generally true. Single family housing is typically wood frame construction, whereas multifamily housing is usually reinforced concrete or some other material that allows you to build up. In these latter cases, the price per square foot to build is going to be higher.

    But Daniel’s argument is that when you build multifamily housing, you also begin to amortize the cost of the land over more housing units. So you begin to use land more efficiently and that offsets the higher construction costs.

    However, two thoughts come to mind.

    First, the value of a piece of land is entirely dependent on what you can build on it. And the more you can build on it, the more the land is worth. So as densities increase, so do land prices.

    Second, a big part of why condominiums are so much more affordable is that they’re smaller. In 2014, the average condo size in Metro Vancouver was estimated to be 840 square feet. I couldn’t find the average size of a detached house in the city, but let’s assume for a second that it’s 2,500 sf. 

    If that were the case, then a detached house, despite being more expensive overall, would still be cheaper on a per square foot basis. You would be paying less for every square foot of livable space. True that doesn’t make the house more affordable, but I think it’s a bit unfair to compare apples (small condo) to oranges (large house).

    So what I would really like to see is a graph of all-in low-rise and high-rise per square foot prices over time and for various cities. Because I would be curious to see at what point – if ever – they intersect.

  • How should cities manage their own awesomeness?

    Conor Maguire introduced me to an interesting site today called Airbnb vs. Berlin. The site does a deep dive into Berlin’s Airbnb market with the hope of answering the question: Is Airbnb contributing to a shortage in affordable housing?

    The site is very well done. It’s filled with lots of great market stats and diagrams such as this one here: 

    Of course, the impetus for a site like this is that cities all around the world, from San Francisco to Berlin, are grappling with rising home prices. If you happen to live in a successful, growing city, that’s probably what is happening.

    But when this happens, we seem to want to look for something or someone to blame. In San Francisco it’s the tech workers. They’re the ones driving up homes prices. In Vancouver, it’s the foreign Chinese buyers. And in Berlin, it’s those Airbnb users who are just out to make a profit. In all of these cases, we like to tell ourselves that if we could just get rid of “X”, everything would be much better. 

    But I think sometimes we forget that this is also the result of doing many things right.

    If Berlin wasn’t a brilliantly cool place to visit, then tourists wouldn’t come. And if tourists didn’t come, then Berlin wouldn’t have, by far, the largest Airbnb market in Germany. If Vancouver wasn’t one of the most enjoyable places in the world to live, you wouldn’t have the same attention from overseas buyers looking to snatch up properties. 

    So in a way, we should be asking ourselves: How do we, as a city, manage our own awesomeness?

    The other thing that Airbnb vs. Berlin reminded me of is the viewpoint that profits are some dirty little secret. I hear it all the time in the real estate development business. People will say: “That developer is just out to make money.” Of course she/he is! They operate a business. And like all for-profit businesses, one of the objectives – it may not be the only one – is to make money.

    I say all this not as a direct response to the website. They remained fairly neutral in their analysis. Instead, I raise it as an alternate viewpoint in the seemingly universal battle against “X.”

    In case you’re wondering about Berlin’s Airbnb market, the site estimates that there are roughly 11,701 Airbnb listings in the city out of a total of about 1.9 million flats. Of these listings, it is estimated that somewhere around 30% are by “professional users” who are only out to make a profit and are not participating in the “sharing economy” in its purest sense. That equates to about 0.18% of all Berlin flats.

    Based on this number, I’d say that Berlin’s cool factor probably has a lot more to do with the city’s rising rents than do the profit seeking Airbnb users.

  • Urbanism Online: #capital

    image

    For those
    of you from Ottawa, I’m going to be in town this Thursday evening talking
    at an event put on by the National Capital Commission called Urbanism
    Online
    . It’s all about how blogging, social media, and online discussions can
    and are contributing to the betterment of cities.

    The other
    bloggers include:

    – Marc-André Carignan, Montreal, Kollectif.net

    – Jillian Glover, Vancouver, This City Life

    – Robert Smythe, Ottawa, UrbSite

    The event is
    now full, but email them or tweet me if you’d really like to come
    and I’ll certainly ask about space availability. I’m sure it’s going to be a great discussion.

    I have a bit of a soft spot for Ottawa. I used to spend a lot of time there when I was working on an office building at 150 Elgin Street. (Key tenants include The Canada Council for the Arts, KPMG, and Shopify.)

    I haven’t been back since the building was completed, so I’m excited to see how it turned out.

    Update: The event will also be streamed on Periscope, here.