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December 24, 2014

Is inclusionary zoning a good or bad thing for cities?

Today is Christmas Eve. It’s the season of giving. So I thought it would be appropriate to talk about affordable housing.

Yesterday, Mitchell Cohen – who is a real estate developer and the president of The Daniels Corporation – wrote an opinion piece in the Toronto Star talking about just that. It was called: A perfect storm for action on affordable housing.

Here’s a snippet that summarizes the things he believes we should be doing:

Municipalities across Ontario also have significant tools at their disposal to make a difference. To date, these tools have not been co-ordinated to achieve maximum bang for the buck. Property taxes can and should be waived not only for affordable rental homes but for affordable ownership homes as well. Additionally, cities can and should waive all development levies and other municipal fees for affordable rental and ownership housing.

Combined, these two measures provide municipalities with powerful leverage to implement inclusionary zoning — the most important tool in the affordable housing tool box. Inclusionary zoning on a city-wide basis creates a level playing field, an opportunity for a constructive partnership between municipalities and private sector developers to create both affordable ownership and rental homes within every new building approved for construction.

For those of you who might be unfamiliar with inclusionary zoning, it’s essentially a zoning requirement to build a certain number of affordable units in any new construction project. It originated – as far as I know – in the US, but has been fairly controversial since the outset.

So today I thought we could have a discussion on the merits of inclusionary zoning. Do you think it’s a good or bad thing for cities? Is it really the most effective way to deliver affordable housing at scale? Leave your thoughts in the comment section below :)

I don’t have a strong view on inclusionary zoning, but I do believe that affordable housing and a mix of incomes is critical to cities and neighborhoods.

I do, however, wonder if it’s one of those things that seems to make a lot of sense, but actually has a bunch of negative externalities associated with it. Maybe the answer is to just prototype the idea and then iterate on it.

What do you think?

December 21, 2014

Being exemplary

Yesterday morning I had coffee with a good friend of mine and fellow city geek. We don’t connect nearly as often as I’d like, but when we do we always have great conversations about cities and about Toronto.

One of the things he asked me was whether I was still loving Toronto. And I responded by saying absolutely. We then both agreed that there are a lot of exciting things happening in the city right now. 

But I qualified this statement by saying that I wish we were bolder. I wish we took more chances. Because while it’s great that we’re doing things like building more bike lanes and intensifying our growth centers, lots of other cities are doing those things as well.

To be a leading city, you have to be prepared to do things that other cities think are wrong or won’t work and that are truly remarkable. Whether you’re city, company, or an individual, following trends is never enough.

Take for example the dramatic anti-pollution measures that were recently announced by Paris mayor Anne Hidalgo:

By 2020, no diesel fuel at all will be burnt within Paris. Regular cars will be banned outright from its more polluted roads, which will be open solely to electric and hybrid vehicles. Meanwhile, the city’s most central districts (the first four arrondissements) will be barred to all but residents’ vehicles, deliveries, and emergency services, transforming Paris’ Right Bank core into a semi-pedestrian zone. As a counterbalance, the number of cycle lanes will be doubled by 2020, while the city will fund an extended electric bikeshare scheme to encourage more people to get on two wheels. “I want us to be exemplary” Mayor Hidalgo has declared. 

That’s how you win hearts: by being exemplary.

As always though, I’m incredibly optimistic about the future. Toronto has a new leader at its helm and I know that there are a lot of passionate people in this city who care deeply about its future. I am certainly one of them.

Image: Not my actual coffee (via Flickr)

December 19, 2014

The Fundamental Law of Road Congestion

A few days ago I wrote a post talking about what happens when you demolish an urban highway. It was a link to an article giving 5 examples of cities that have removed their urban highways and benefited.

After I wrote the post, a number of people responded on Twitter. Some thought it was a great idea and gave examples of other cities, such as Detroit, that are thinking about doing the same. But others responded and said that I was out of line. And that while it might work in some cities, it simply isn’t a viable option in cities like Toronto.

So as somebody who believes we should be taking down the Gardiner Expressway, I thought it would be worthwhile to revisit the topic and provide a bit more information.

To be clear, I’m not suggesting we remove the Gardiner and replace it with nothing. My belief is that we should replace it with a broad surface street that would still move lots of cars, but that would make our waterfront much more open and accessible to everyone.

So how is this feasible?

Again it comes back to the concept of induced demand. Back in 2009, two economists from the University of Toronto and University of Pennsylvania – which are actually both of my alma maters – published a study called The Fundamental Law of Road Congestion.

In it they discovered something really fascinating: there’s a near perfect relationship between new roads and highways built and the total number of miles driven. In other words, as cities increased road capacities (during their study period of 1980 to 2000), the amount of driving went up just as much.

What this should tell you is that trying to build your way of out road congestion is usually a losing proposition. That’s why every large city has a traffic problem. Try and think of one that has solved this. And as much as it might seem intuitive to tell people at cocktail parties that your city simply needs to build more roads and highways, it’s typically not that simple. (In my view, the solution is road pricing.)

The other really interesting thing that this study revealed is that it works both ways. When you reduce road capacity, drivers start to disappear. People choose to live closer to where they work. People choose transit. People go into the office at different times. People make all sorts of different decisions in response to this road change, just as they do when there are more free roads available to them.

So within a reasonable band (obviously you can’t remove all roads), there is no perfect amount of road capacity. If you added another lane to your highway, it would be full. If you took away a lane, it would end up equally full. That’s why removing the Gardiner Expressway isn’t lunacy.

Instead, it actually makes a lot of sense:

  • It’s the cheapest solution (compared to repairing it or burying it)

  • It would free up money for transit and other mobility solutions

  • It would make our waterfront more open and accessible

  • It would beautify our downtown

  • It would increase land values all along the waterfront

And since we’re still in the early days of developing our eastern waterfront, now is the time to do it. The longer we wait, the harder it’ll get and the more expensive it’ll get.

So I hope that the leaders in this city will think long and hard about this as opposed to immediately assuming we need an elevated highway to keep this city moving. The last time I checked, it doesn’t work so well in its current state.

Images: Before and After the Embarcadero Freeway in San Francisco (via Gizmodo)

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Brandon Donnelly

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Brandon Donnelly

Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.

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