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Brandon Donnelly

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March 23, 2014

Is Chicago's zoning code broken?

This may sound crazy, but I’ve never been to Chicago. It’s on my list, but I just haven’t gotten around to it and I’ve never had a specific reason to go. Hopefully I can make it this summer.

Lately though, I’ve found myself reading more and more about the city. Given that it’s also a Great Lakes city and it’s of comparable size, Chicago is an interesting case study for Toronto. But one thing that seems to keep coming up, is the need for zoning reform.

About a month ago I wrote a post called “The tale of 2 Chicagos”, which was inspired by the blogging of Aaron Renn (The Urbanophile) and Daniel Hertz (City Notes). The discussion was around the prevalence of single-family zoning in most parts of Chicago and how it’s creating a supply constrained market (driving up prices).

But there’s another outcome. Here’s what Daniel Hertz recently argued:

When places in and around downtown become more desirable, developers build more housing, and more people get to live there. But when non-downtown neighborhoods become more desirable, developers can’t build more housing: it’s against the law. So instead, they profit by tearing down old two-flats and building mansions in their place. And as a result, fewer people get to live in those neighborhoods, even as more and more people want to.

Effectively, his argument is that gentrification leads to a loss of housing units. Developers can’t build more housing, so they replace housing. And it all stems from a restrictive zoning code that aims to maintain the character and scale of established neighborhoods. I get that, but you could easily argue that it exacerbates the negatives of gentrification.

It strikes me that Toronto and Chicago are in somewhat similar places in terms of their growth. Without any real natural barriers, both cities had the luxury of being able to develop through horizontal sprawl when they were younger.

But with people now returning to city centers, we’re faced with a series of difficult decisions: How do we balance preservation and growth? How do we balance low-density with high-density? How do we maintain the character of what people love while still creating an inclusive city?

It absolutely can be done, but it’s going to mean embracing a certain amount of change. And that’s not always an easy sell. 

March 18, 2014

The hard thing about urban debt

I’m in the midst of reading Ben Horowitz’s new book called “The Hard Thing About Hard Things.” You may have noticed all of the random quotes I’m posting over on my tumblog. It’s good stuff.

At one point, he talks about two types of metaphorical debt: technical debt and management debt. Technical debt is when you write shitty (computer) code that addresses the short-term, but eventually needs to be rewritten in the future. Similarly, management debt is when you make bad and short-term management decisions that don’t serve you well in the longer term. In both cases, the debt compounds and, when you eventually pay for it, it’s got a lot of interest on it.

This got me thinking: Is there an equivalent for cities? Is there such a thing as urban debt? I figured there must be since we’re an impatient society obsessed with instant gratification.

I then remembered a great quote that I saw either on Twitter or Tumblr that I think can be credited to Lewis Mumford:

Adding highway lanes to deal with traffic congestion is like loosening your belt to cure obesity.

Neither solution is sustainable and eventually you’re going to have to pay the consequences. In the case of cities, I think the answer is transit.

And transit (disinvestment) is actually a really good example of what might be considered urban debt, because it requires long term planning—something that often conflicts with our political system. Politicians want quick wins.

But I think it’s important to keep in mind that when we fail to make the hard decisions today, they only become more costly to deal with tomorrow. Quick wins might make for good politics, but they often don’t make for great city building. 

March 1, 2014

Recommendation to remove the elevated Gardiner Expressway

I’ve written a lot lately about the Gardiner Expressway East. First to argue that I think it should be torn down and, second, to provide a counter argument as to why some people think North America’s urban freeways are here to stay. I wanted to avoid confirmation bias.

Well a recommendation has been made to City Council and it is, indeed, to remove the eastern portion of the Gardiner Expressway. They are now asking Council to approve it. The item will first go to the Public Works and Infrastructure Committee on March 4, 2014 and, subject to the results of that meeting, will then go to City Council on April 1, 2014. 

The recommendation to Council identified the following 4 key features of the preferred “remove” option:

  1. Widening of Lake Shore Boulevard east of Jarvis Street by two lanes into an eight-lane landscaped at-grade boulevard;

  2. The lowest overall public investment at $240 million net present value (NPV) because of significantly lower lifecycle costs despite a higher upfront capital cost than Maintain;

  3. Public land disposition proceeds of approximately $80 to 90 million NPV from the release of about 4 hectares of land (which could support 260,000 square metres of development)

  4. Highest compatibility with Official Plan and Central Waterfront Secondary Plan principles and objectives as well as approved plans, such as the Don Mouth Naturalization and Flood Protection EA, Lower Don Lands Framework Plan, Keating Channel Precinct Plan and the Port Lands Acceleration Initiative.

If you’d like to read more about what’s going to Public Works and City Council, click here.

One thing I didn’t mention in my previous posts is the land disposition piece (item #3 above). By removing the Gardiner East, roughly 10 acres of public land will be freed up which, according to their estimates, could allow for 2.8 million square feet of new development. That’s roughly the size of our 72-storey First Canadian Place.

I’ve been crystal clear about my position on the Gardiner East and so I’m delighted to see it seemingly move forward in that direction. I know a lot of people are concerned that the removal option could result in some commute times being 5 to 10 minutes longer by 2031, but I think we’ll have even bigger problems by 2031 if we continue with the status quo.

Urban theorist Richard Florida has argued many times before that when cities get to around 5-6 million people they come to a point where they have to make tough decisions about the way they’re going to continue to grow and prosper. Toronto is at that moment. Our car dependent ways are already crippling productivity levels.

What kind of city do we want to be by 2031? I don’t think that we can afford to just “maintain.”

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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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