Brandon Donnelly

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.

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  • Skateboarding and the city

    Yesterday during lunch with a colleague, the topic of skateboarding came up. And I was reminded of how much I used to love it. There was a time when I used to skateboard everyday. If I missed a day or two, I felt rusty.

    What I loved about it was how incredibly challenging it was to learn and perfect new tricks. And there were always ways to continually push yourself to the next level, whether it was the number of boards you could ollie (jump) or the number of steps you could ollie down. You’d start with 3 stairs. Then it was 4. Then 5. Then 2 sets of 5. And so on. Once you mastered those, you could then introduce a kickflip to make it even more challenging. The possibilities were endless. And so—to borrow Daniel Pink’s terminology—it was all about mastery for me.

    Here are a few of my old skate decks (they’re on the wall in my apartment):

    But in addition to teaching me that there’s no substitute for discipline and practice, skateboarding also helped shape my love of cities (either that, or I was a born urbanist and skateboarding was a symptom). 

    Street skating is an inherently urban activity. There’s no defined field or rink. The entire city is at your disposal. And so as a skateboarder, you’re always on the look out for interesting things “to skate.” You want steps, ledges, edges, and changes in grade. You also look for sequences. What tricks can I string together across this urban landscape? You wouldn’t believe how exciting these features can be to a skateboarder.

    In fact, I’d even go so far as to say that skateboarders are probably some of the finest surveyors of public space around. How many people do you know go around counting stairs, examining railings and measuring ledge heights? Skateboarders do.

    But as much as street skating is all about the city, that relationship is often an acrimonious one. Skateboarding is viewed as a property destroyer, an annoyance and, in some cases, a criminal activity.

    A perfect example of this is the story of LOVE Park in Philadelphia (it was a public plaza, not a park). LOVE Park was a legendary space in the skateboarding community. It put Philadelphia skateboarding on the map. It was iconic. If you skated during that era, you knew about LOVE Park.

    However, on April 25th, 2002, the Mayor of Philadelphia ordered that the park be closed off and remodelled to remove all the elements that skateboarders loved about it. It was decided that skateboarding was not an acceptable behaviour in an urban public plaza.

    That act made a huge dent in the Philadelphia skate community. And the park became essentially a homeless shelter. 

    As a former skateboarder, urbanist and ex-resident of Philadelphia, this always baffled me. Cities all around the world spend a great deal of time and money trying to create spaces that people will actually use. And here you not only had an intensely used one, but one that spurred a grassroots global phenomenon. It’s precisely what makes cities so great.

    Thankfully, many cities have woken up to the benefits of street skating by building purpose built skate parks. But in my view, those spaces lack something that places like LOVE Park had. LOVE Park was authentic. It was about a serendipitous repurposing. It had a sense of place.

  • Transit panel responds to Metrolinx

    On September 18th, 2013, the Premier of Ontario, Kathleen Wynne, established a “transit investment strategy advisory panel.” Their mandate was to advise the Province on how to respond to the revenue tools proposed by Metrolinx (also an Ontario agency) to fund transit expansion in the region. Well that panel has just released their final report and you can read it here.

    I’d like to highlight 3 things from the report.

    1.

    The first is their assessment of how Canada’s transit policy framework stacks up against our competitors. Here’s a snippet:

    “Canada remains the only G8 country without a coordinated national framework of policies and programs for funding expansion and renewal of transit systems. As shown in the chart opposite, a review of national transit policy frameworks done by the Canadian Urban Transit Association indicates that Canada ranks at the bottom in terms of its engagement in urban public transit.”

    And here’s the chart they’re talking about. I hope it’s legible.

    2.

    The second is their conclusion on highway tolls:

    “Although highway tolls can raise a significant amount of revenue and influence travel behaviour, they are expensive, complicated, and require a lot of lead time to implement. Once transit alternatives are in place, road tolls meet our criteria and are a valid option. Following the opening of the new Highway 407 East, the Province has the option of designating the new toll revenue to the Next Wave. For now, however, the Panel has not recommended Highway Tolls as a revenue source.”

    If you’ve read any of my posts on electronic road pricing, you’ll know that I support the pricing of roads and congestion.

    3.

    The third is their list of what they call “next wave projects”, which are essentially priority projects. Here’s their list for phase one of it:

    • Relief Line
    • GO Two-Way All Day (excluding Lakeshore)
    • Hurontario LRT
    • Electrification of Union-Pearson Express
    • Yonge North Subway (partial extension, delivered after Relief Line is in service)
    • Priority portions of other rapid transit – Hamilton, Durham, Dundas, Brampton

    I’m happy to see the relief subway line on the top of that list.

    If you have any thoughts on transit planning in the Greater Toronto Area, I would love to hear from you in the comment section below.

  • Capitalism and the future of the world

    Last night I watched an interesting presentation by Fred Wilson (New York VC) where he talks (at LeWeb in Paris) about the big 3 technology trends shaping our world. In his view, they are 1) non-hierarchical networks (think Twitter vs. newspapers); 2) unbundling; and 3) smartphones (the most obvious of the 3). It’s a great talk even if you’re not interested in technology per se, because these trends are impacting virtually every industry, from banking to education.

    This morning Fred wrote a post on his blog called “The Limits of Capitalism.” And I think it’s an excellent follow-up to his talk on the future. I would also classify myself as a capitalist, but I also think that unfettered capitalism will eventually break down. And in the context of the changes outlined in his presentation, I think we need to think long and hard about how we’re going to—not stop them from happening, because they’re inevitable—but best cope with them.

    Because already we’re seeing rising income inequality and a complete “bifurcation of the labor market into high-skill and low-skill jobs.” And that in turn is impacting our cities. In fact, that bifurcation is what largely got Rob Ford elected here in Toronto.

  • Real artists ship

    Last night at 10pm I finished my last MBA exam, ever.

    I’ve spent the past 2.5 years completing my MBA part-time at the Rotman School (at the University of Toronto). Since I had already done a 3-year masters (I know, it’s a lot of school), I had decided that my opportunity costs were simply too high and I wanted to remain working.

    But in order to do that, it meant I had classes from 7-9am and then went to work for the day. This past semester I had those morning classes 3 times a week. It’s made for an intense 2.5 years, especially when you add in group meetings, tutorials and other commitments.

    But as much as I’m happy to be finished the program (I fast tracked to finish a semester early), there’s always something bittersweet about closing one chapter and moving onto another.

    Since 2011, being a “MBA student” has been part of my personal brand. I would talk about the classes I was taking, and I would try and apply what I was learning to what I was doing in real life—both professional and personal. Believe it or not, I once had a debate with a Baptist Minister over the discount rate I used in one my calculations for a lease agreement.

    And while I have learned a lot through almost 6 years of graduate education in both Canada and the US, this is in many ways only the beginning. When I was younger I used to tell myself that my 20s should be about formal education, exploring, and crafting my identity, and that my 30s should be about execution.

    Well now it’s time to execute. In the words of the Steve Jobs: “Real artists ship.”

  • How well do you know your neighbors?

    One startup that’s been on my radar (which isn’t yet available in Canada) is Nextdoor. They describe themselves as a “private social network for your neighborhood” and are active in more than 22,500 American neighborhoods. To date they’ve raised $100M in venture funding.

    From what I can tell, their primary focus (and big value proposition) has been around safety and security. Residents can use it to report incidents, such as a car break in. There are obviously other use cases, but I keep hearing this one come up. And I think it works because the community is so closely controlled. Every address is verified.

    But a few things come to mind as I read about their success and growth (400% neighborhood growth over the past year). How many social networks can people handle? Why can’t this be done using an existing platform (and perhaps a closed group)? And is there an opportunity to create the same kind of closed social network for condo and apartment buildings?

    There are lots of social networks out there. Whether you’re a wine snob or a pet owner, somebody has thought it. But if Path’s recent struggles are any indication, niche social networks can be tough. Which is why Nextdoor seems like a bit of an outlier to me.

    But I think the success of Nextdoor stems from the fact that, even in our hyper connected world, a lot of us, paradoxically, still don’t know the people who live right beside us. And I think this is also the case in multi-family dwellings. It’s a problem I’ve thought about and discussed with an number of my condo-dwelling friends.

    So I look forward to seeing how Nextdoor evolves and also seeing if they end up expanding to condos and apartments.

  • Why flying delivery drones are a big deal

    One of the biggest news pieces of the last few weeks—at least in retail and tech circles—has been Amazon’s unmanned aerial delivery drones (also known as Amazon Air Prime). In case you missed it, here’s a video from Amazon showing them in action. 

    image

    The goal:

    “To get packages into customers’ hands in 30 minutes or less using unmanned aerial vehicles.”

    Now, this won’t happen for another few years, if even that soon, but I think it’s pretty clear that this is something epic in the making. If successful, it’s going to completely rewrite, not only the retail landscape, but probably the landscape of our cities.

    If you think about it, cars enabled a certain kind of retail. They enabled big box stores and those, in turn, changed our cities (for the worse, I would argue). Now what happens when the undifferentiated products of a big box store can be flown to my door step in less than 30 minutes? Suddenly getting into my car seems archaic.

    There’s a great article covering Amazon’s drones and the history of American retailing in Atlantic Cities. They do a better job conveying the potential magnitude of Amazon Air Prime and so I suggest you have a read if this topic interests you.

  • Halfway assimilation in Canada’s arctic

    Yesterday, I discovered a Jerusalem-based Italian photographer by the name of Vittoria Mentasti. She has an ongoing project called “A Woman With Two Names”, that’s exploring the identity of Canada’s Inuit community in Iqaluit, Nunavut. Click on the photo below to see the entire gallery.

    Here’s her language on the project:

    “Iqaluit, the capital of Nunavut, is a city of 7000 people surrounded by tundra and the sea. The only way to get in or out of Iqaluit is from the air. I was interested in the cultural identity shift the Intuit community is experiencing and its consequences. The community, especially its younger members, are trapped between two worlds; they are losing touch with their past and are headed towards an uncertain future.

    The process of forced assimilation carried out by the Canadian Government and the Church during the first half of the 20th century, deprived the Inuit of their social and spiritual customs. The transition away from their nomadic roots to modernized living has led to alcoholism, domestic violence and unemployment; symptoms of a society that is floating between its past and present.

    Photographing off-moments of everyday life, I was looking to depict the sense of isolation, their ancestral connection to a harsh land, and the feeling of not belonging to “The South”, the way Inuit refers to the rest of the world.”

    As one of the most remote and sparsely populated regions in the world, it’s easy to overlook what’s happening here in our country. But there are real problems in our north. In 2011, the Globe and Mail published a Focus Feature on Nunavut where it asked: Is Nunavut a failure of Canadian nation building?

    “The rate of violent crime per capita in Nunavut is nine times what it is in the rest of Canada. The homicide rate is around 1,000 per cent of the Canadian average.”

    I’m not an expert on this matter, but it seems like everybody is picking up on the same phenomenon. We’ve created an in-between society. A society that’s completely ill-equipped to compete in the modern world, but that’s too far removed from its roots to turn back now. They were nomads and now they’re not.

    This is hugely problematic and it’s only going to get worse. Already we’re seeing rising income inequality within “The South.” The returns to being smart are being amplified and twenty somethings with a killer app are turning down billion dollar acquisition offers.

    What do you think this does to the north? I’d bet it makes it much worse.

  • Mirvish+Gehry and the story of 4 heritage buildings

    I am a real estate developer and I believe in progress. But I also fundamentally believe in balancing progress and preservation. I’ve said this before.

    This morning, Alex Bozikovic of the Globe and Mail, published a piece on the epic Mirvish + Gehry proposal for Toronto’s Entertainment District. It’s called, “Frank Gehry and David Mirvish’s tall order in Toronto.”

    Now, I’ve said before that I like this project. I don’t mind the height and I don’t buy the argument that there aren’t enough public spaces in the area. There’s David Pecaut Square directly to the south that could use a few more warm bodies in it.

    But as I also said before, I think the key concern here is one of heritage. There are 4 heritage designated buildings on the site dating back to as early as 1901. Here’s where they sit:

    image

    The Anderson Building (1915) is particularly unique. Here’s a larger photo (via blogTO):

    image

    So while I’m excited by the prospect of a real Gehry project in Toronto, I think we need to figure out a way to find a balance. Preserve the facades, build on top, or relocate them. Do something besides wipe the slate clean.

    As Bozikovic rightly points out in his article, “Toronto has a sophisticated culture of working with heritage buildings.” There are lots of great examples of how we managed to move forward as a city, without erasing our past.

    And in many ways, I see this ability to work with and build upon heritage buildings as an emerging Toronto vernacular. I mean, what could be more appropriate for the most diverse city on the planet than an architectural style—of our own—that blends and layers history with disparate design ideologies.

    I sense an opportunity.

    We could have Gehry’s white sinuous curves drape over the heritage buildings. Make them become a literal unveiling of Toronto’s past and a metaphor for the sophisticated way in which we build upon legacy.

    It’s too easy to just demolish everything. We’re better than that.

  • How different generations buy and sell real estate

    I just came across the following generational home buying data from the National Association of Realtors in the US (via Curbed SF):

    It was initially published in July 2013 and so I think the data represents what happened in 2012. The report isn’t exactly clear about the timing. In any event, what I found more interesting is how the various generations perceive the utility of agents. There are different use cases.

    Millenials feel the need to have an agent help them navigate the purchasing process. This makes sense, as many of them would be first time buyers. However, Millenials are also almost 4x more likely to engage agents for “a limited set of services as requested by the seller”, as opposed to just a conventional full service brokerage agreement.

    On the other hand, older buyers like to have an agent help them identify property deficiencies and sellers over 32 years old use a full service broker more than 80% of the time. I find this interesting because it starts to speak to potential changes in the marketplace.

    Looking at a more recent report from the NAR (2013 Profile of Buyers and Sellers), I found it surprising to learn that the share of buyers who used an agent went from 69% in 2001 to 88% in 2013. Even with the internet disrupting so many industries, realtor market share has actually grown over the last decade.

    Not surprisingly, the percentage of sellers who used an agent is also 88%. This is because the dual-agency model requires that both sides of the marketplace be represented.

    Finally, the percentage of sellers who sold their home without an agent is roughly 9%. And 46% said it was because they wanted to save on commission. I’m assuming that the reason the math doesn’t add up (9% for-sale-by-owner + 88% agent) is because of estate sales, auctions and so on.

    The real estate marketplace is an interesting one. What do you think we’ll see in the future?

  • Toronto’s schism is hurting the city

    Instead of talking about the latest Rob Ford scandal (honestly, how is he still mayor?), I’d like to focus on his abilities as a transportation strategist.

    Here’s an excerpt from a Toronto Star article published this morning that talks about the urban vs. suburban divide in this city and our inability to depoliticize transit planning. It’s called, “Suburban envy only makes things worse: James.”

    image

    In another committee room, councillors were debating the proposed downtown relief subway line — only, they were afraid to name it such. Downtown is a section of the city that dares not voice its name, for fear that aggrieved suburbanites will rise up and object.

    This is not hyperbole. Not long ago, the mayor indicated he is not interested in the relief line until there are subways on Sheppard East and on Finch West. Why? Because downtown “has enough subways.”

    Downtown has enough subways? Do you think Ford looked at population density, number of stops, ridership levels, and so on, in order to come up with this position? Or did he just look at where his voter base resides?

    We need to get past this downtown vs. suburban schism. We’re all in this together. In fact, the whole Golden Horseshoe region is in this together. And until we start acting as a unified entity, we’re not going to reach our full potential.