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.

Category: Urbanism

  • Reimagining Toronto’s University Avenue

    If I have learned anything from this pandemic it is that, when push comes to shove, Torontonians will eat pretty much anywhere. On sidewalks. On streets. In white tents that masquerade as outdoor dining. And in many other little urban crevices.

    I am only half-joking, because the reality is that this pandemic has pried us away from the status quo and forced us to reconsider how we allocate and how we occupy many of our public spaces. There will be some positive outcomes on the other side of this.

    To that end, a new city building effort has just been announced here in Toronto. (Alex Bozikovic of the Globe and Mail wrote about it here in “Rebirth of the Promenade”.) The vision is called “University Park” and the team behind it includes the landscape architecture firm PUBLIC WORK, the non-profit Evergreen, and the Michael Young Family Foundation.

    What they want to do is transform Toronto’s University Avenue into something akin to La Rambla in Barcelona — except better:

    Our vision brings together patches of public green space that are currently disconnected and inaccessible in order to create a signature destination in the centre of our province’s capital. By making minor adjustments to the existing roadway on University Avenue and converting only 9.5 acres of city-owned asphalt into native landscape, pedestrian walkways, bike paths, and cultural installations, we can create a 90-acre park that spans from Queen’s Park all the way to the waterfront.

    It’s about time. My only request is that they include small sidewalk crevice where I might be able to sit and enjoy a chicken burrito and a glass of wine. To learn more about University Park and to subscribe to their newsletter, click here.

    Image: PUBLIC WORK

  • The effects of low-income developments on house prices in Los Angeles

    Richard Voith and Jing Liu of Philadelphia-based Econsult, along with a bunch of other smart coauthors, have just published a working paper looking at the effects of the Low-Income Housing Tax Credit (LIHTC) on home prices. More specifically, they looked at the impact that LIHTC-financed properties have had in Los Angeles — both in low-income and high-income neighborhoods, as well as when it’s the first LIHTC development in the area or a subsequent one. Some of you might be assuming that low-income housing is likely to create downward pressure on home prices. But the authors found the opposite to be true. Below is the paper’s abstract. If you’d like to download a copy of the full working paper, you can do that over here.

    Abstract: While there is widespread agreement about the importance of the Low-Income Housing
    Tax Credit (LIHTC) in addressing the country’s affordable housing needs, there is less certainty about the effects of LIHTC-financed properties on their surrounding neighborhoods. A growing body of research has largely refuted the argument that affordable housing properties in and of themselves have negative effects on local property values and increase crime rates. Several key questions remain essentially unanswered, however. First, for how long do the observed spillover benefits of LIHTC construction last? Second, does the development of multiple LIHTC properties in a neighborhood have an additive, supplemental effect on surrounding conditions, or is there a threshold at which the concentration of such properties – and the predominantly low-income individuals they house – negatively affects the neighborhood?

    In this paper, we focus on Los Angeles County, a large, diverse urban area with significant affordability challenges. Drawing upon both public and proprietary property sales data, we conduct interrupted time series analyses to ascertain whether property value trends differed prior and subsequent to the introduction of a LIHTC-financed property in the community. We find that LIHTC properties positively impact surrounding housing values across the spectrum of Los Angeles’ neighborhoods. Further the concentration of multiple LIHTC properties in a neighborhood additively increases housing prices up to ½ mile away. Finally, these effects though of greater magnitude in lower-income neighborhoods, are fully present in high-income neighborhoods.

    Image: Econsult

  • Counties won by Biden generated 70% of America’s GDP in 2018

    Here is an interesting look at the economic geography of the recent US election. Similar to what they did for the last presidential election, Brookings has just analyzed each candidate’s aggregate share of US GDP broken down by the counties that they won. That’s what the above diagram represents. The blue and red tiles are showing the relative size of each county’s economy.

    In 2016, Clinton won 472 counties with nearly 66 million votes. These counties accounted for about 64% of US GDP at the time. Trump, on the other hand, won 2,584 counties with nearly 63 million votes. But these counties represented only about 36% of US GDP. (Note that Trump won the election with fewer total votes. This is the electoral college at work.)

    When Brookings published the above findings, votes were still outstanding for 11 counties. Most of them low-output. Still, Biden has won 477 counties with well over 75 million votes. These Democratic counties now account for about 70% of overall US GDP. Virtually every big economy county went to Biden in this last election. Los Angeles, New York City, Chicago, and so on.

    This is a big deal because it shows the great economic divide that exists in the US, as well as in many (most?) other countries around the world. This is the urban vs. rural divide. Places with very different economic bases and, therefore, very different sets of priorities.

    Diagram: Brookings

  • The world’s best cities

    Whenever you see a best-of-anything ranking, you should probably ask yourself what the hell “best” even means. In this case, Resonance Consultancy is ranking the world’s cities based on six alliterative categories: place, people, programming, product, prosperity, and promotion.

    Some of these metrics are qualitative, but many are, in fact, quantitative. Number of COVID-19 infections in 2020; number of direct destinations served by the city’s airports; number of foreign-born residents; number of top-rated restaurants (TripAdvisor); most Instagram check-ins, and so on.

    The result is this list of the world’s best cities:

    1. London
    2. New York
    3. Paris
    4. Moscow
    5. Tokyo
    6. Dubai
    7. Singapore
    8. Barcelona
    9. Los Angeles
    10. Madrid
    11. Rome
    12. Chicago
    13. Toronto
    14. San Francisco
    15. Abu Dhabi

    I arbitrarily chose the top 15 cities in order to make sure that Toronto was included in this ranking. If you’d like to download a full copy of the 2021 World’s Best Cities report, you can do that over here. I recommend you check out their performance criteria.

    Toronto, for example, performs very well when it comes to “people.” That’s fairly consistent across most of these rankings. But it didn’t fare so well when it comes to “place.” That category includes things like the average number of sunny days and the number of high quality sights & landmarks.

  • Is that delay really necessary?

    The big news this week in Toronto planning & development is the province’s decision to approve three downtown development projects using a tool known as a “ministerial zoning order.” The impetus for doing this was to speed up the approval and delivery of about 1,000 affordable housing units (along with about 2,000 market-rate units).

    The province has made it clear that it wants to do what it can to reduce red tape and unnecessary delays when it comes to building new affordable housing. But this, not surprisingly, upset a number of local councillors who feel the province is overstepping and not allowing the city to govern its own city building affairs.

    Alex Bozikovic’s view in the Globe and Mail this week was: hey, maybe that’s not so bad. The planning process is painfully slow (and political). And Toronto is going to need a lot more housing over the coming years and decades. So why not speed up its delivery? Especially when there’s an affordable housing component and the architecture is exemplary.

    The reality is that our housing delivery system is rife with tensions. A big part of the process is predicated on local voters, who already live in a particular place, opining on their own interests and on the interests of people who don’t yet live there. The incentives in place are anything but aligned.

    We can debate which level of government should have more power and what might be considered an unnecessary delay, but what is clear to me is that it should not take 2-5 years to get new housing approved in this city.

  • Suicides, cities, and the concept of coupling

    I am reading Malcolm Gladwell’s latest book right now, called Talking to Strangers: What We Should Know about the People We Don’t Know, and I am intrigued by the chapter on Sylvia Plath’s unfortunate suicide and the concept of “coupling.” The idea behind coupling, which stands in contrast to displacement, is that when someone makes the very sad decision to commit suicide, it can often be coupled to a particular place or context.

    Malcolm starts by giving the example of “town gas.” Prior to it being phased out in the 1960s and 1970s, most homes in Britain relied on a form of gas that contained carbon monoxide. And sadly, it became the most popular way for people to kill themselves. When Sylvia Plath took her own life in 1962, the death-by-carbon-monoxide-poisoning stat was 44.2% of all suicides in England and Wales.

    The concept of displacement, on the other hand, surmises that if somebody wants to kill themselves, they will eventually find another way. But Malcolm convincingly argues that that is not necessarily or very often the case. As town gas was phased out of British homes, the number of suicides also declined in lockstep. Turns out that many of the previous suicides had been coupled to that particular tool.

    Why this is potentially valuable to this blog audience is that this same coupling phenomenon can happen within our cities and to particular places. Malcolm gives the example of the Golden Gate Bridge in San Francisco, which has been the site of many suicides since it was first erected in 1937. The same, of course, can be the said about many subway systems around the world.

    But again, there’s evidence to suggest that if you can save somebody on the Golden Gate Bridge (a suicide barrier was erected in 2018) or on a subway system by installing safety doors, there’s a good chance that many of those people will never actually find another way to commit suicide. In other words, you can save a bunch of lives by having the right provisions in place and not assuming that something is a foregone conclusion.

    Photo by Chris Leipelt on Unsplash

  • CloudKitchens has spent more than $130 million on property over the last two years

    According to a recent Wall Street Journal review of property and corporate records, Travis Kalanick’s ghost kitchen startup, called CloudKitchens, has spent over $130 million over the past two years buying more than 40 properties in about two dozen cities.

    Travis is co-founder and the former CEO of Uber and this latest startup provides commercial kitchens to restauranteurs who are looking for a low-cost way to launch delivery-only food concepts.

    In some ways, it can be compared to coworking spaces for delivery-only restaurants. Instead of renting a full restaurant space, you lease 200-300 square feet of real estate at a lower cost address. CloudKitchens then handles all of the distribution and fulfillment, effectively lowering the barriers to entry for food startups.

    Some of the properties that they have been buying include a vacant restaurant space in Miami Beach for $9.2 million (May 2020) and an industrial property in Queens, New York for $6.6 million (March 2020). They’ve also bought in cities like Portland and Las Vegas.

    As you might imagine, now is a pretty good time to be buying some of these properties. And if you think about it, there are some real cost advantages to what they are doing, not to mention some co-working-style arbitrage on the real estate.

    The company is apparently going to great lengths to conceal what and where they are buying. But what is perhaps more interesting is their asset-heavy approach. They’re buying lots of real estate, which is inline with what companies like Opendoor are doing, but is distinct from Uber’s asset-light approach.

    It is also different from what many other ghost kitchen startups are doing. It seems that most are leasing their spaces. There has to be a reason for this difference.

  • The Map: Geometry vs. geography

    A friend of mine sent me this video today in a brief email that basically said, “you’re gonna love it.” Naturally he was right. It’s great. The 10-minute video is about how creative agency Work & Co rethought and redesigned New York City’s subway map for today’s digital age. Rather than a static map, which is historically how all cities have communicated their transit networks, they created a digital map that changes both as you interact with and as the network itself changes (closures, time of day, etc.). This means that they no longer had to make certain design compromises. They no longer had to choose between geometry (clarity of representation) and geography (accuracy of representation). The system does both.

  • The WRLDCTY 2020 Virtual Festival

    This Thursday is the launch of a brand new city event called the WRLDCTY Virtual Festival (vowels, clearly, suck). Presented by Vancouver-based Resonance Consultancy, the “host cities” are New York, London, Hong Kong, Los Angeles, and Toronto.

    The idea is to bring together thought leaders and city lovers from all around the world on a virtual platform for three days. The speakers include people like Richard Florida, Bjarke Ingels, and Dan Doctoroff.

    The other thing they’re doing is offering up over 20 virtual urban experiences. Think yoga on Santa Monica Pier, burlesque in Brooklyn, and graffiti art tours in Toronto. It’s clearly no substitute for actual travel, but this is the best we’ve got right now and we’re all trying to adapt.

    A general admission ticket is free, but some of the headline events require a pro pass and if you’d like to do some virtual networking and chat with other guests in the “Community Center,” you’ll also need that same pass. Here’s the full agenda.

    Photo by veeterzy on Unsplash

  • Wuhan as tourist destination

    Seeing people out at bars and at amusements parks in this WSJ video about Wuhan, China is a little odd given that in this part of the world we are decisively in our second wave. But that is what is happening. In fact, the title of the video is, “Wuhan, Former Pandemic Center, Emerges as Tourist Hot Spot.”

    Over a recent public holiday, the city saw nearly 19 million tourists — the most of any Chinese city. And while tourist revenues are still thought to be down by some 30%, Chinese people are seemingly feeling confident enough to get back out and do things.

    Based on what the WSJ is reporting, this seems to be supported by a few things. International travel isn’t happening, so it’s becoming a boon for local tourism, which is not that dissimilar from what’s happening in other countries. (Domestic air travel is rebounding faster than international travel when you look at flight volumes across major airlines.)

    At the same time, Wuhan implemented what sounds like some pretty extensive testing, which is in turn supported by a national healthcare platform that presumably makes contact tracing easier. These things seem to have given people the confidence to go out again. And I don’t doubt that the same will eventually happen in the rest of the world.