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.

Tag: urbanism

  • The Scarborough Subway Extension is a mistake

    Last weekend over dinner, a friend of mine asked me what I thought about the Scarborough Subway Extension debate going on in Toronto right now. Costs are coming in higher than initially projected and the usual back and forth is taking place. Transit blogger Steve Munro has a good post on this called Spinning a Tale in Scarborough.

    I haven’t written much about the Scarborough Subway, but I do have a strong opinion. I believe it’s a mistake. I am not saying that we shouldn’t be building higher order transit in Scarborough – we absolutely should – but it does not need to be an expensive subway line. There are more sensible solutions.

    Here are a few things to consider:

    Light rail transit (LRT) does not equal streetcar. As an avid user of the King streetcar, I’ll be the first to admit that something needs to be done to address the city’s busiest streetcar routes. They are broken. But this is not what was being previously contemplated for Scarborough. True LRT – which Toronto does not yet have – is far more effective at moving people.

    Scarborough Centre is seeing almost no new residential and commercial development. In fact, the “Centres” in general are not seeing much development. The largest share is happening downtown, along the central waterfront, and along the “Avenues.” We shouldn’t ignore this when making our investment decisions. Transit and built form go hand in hand. 

    I also do not buy the argument that we are building this subway in anticipation of demand 50 or 100 years from now. We are not in a position to be proactive about our infrastructure. We are desperately playing catch up and there are already lots of high growth and high density areas in the city which today are completely underserved by higher order transit. 

    Finally, a new subway line with low ridership will mean higher operating cost subsidies to keep it afloat. And at the rate that Scarborough Centre is growing today, this would likely continue for many years into the future. Not only is this debate about spending money today, it is about spending money well in the future, month after month.

    So let’s be clear: the Scarborough Subway Extension debate is about politics. It is not about transportation planning.

  • A Love Letter to the Great Lakes

    This week, the first ever international street art festival will be taking place in Toronto. It’s called A Love Letter to the Great Lakes and it is running from June 20 to June 25, 2016.

    The goal of the festival is to use public works of art to get people thinking about our water resources and, more specifically, about the Great Lakes. Together, these Lakes represent 20% of the world’s fresh surface water.

    So this week, 21 local and international artists will be painting giant murals in 3 different areas of the city: Queen & Ossington, Queen & Spadina, and at the mouth of the Don River.

    The collaborators for the event include Tre Packard (Pangeaseed Foundation), Jason Botkin (A Love Letter to the Great Lakes, En Masse), Jaqueline West (Herman & Audrey), developer Jeff Hull (Hullmark) and Devon Ostrum (Friends of the Pan Am).

    Below is one of the works already in progress. It’s by Jason Botkin and it’s located on one of the bents of the Gardiner Expressway East at the mouth of the Don River.

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    This event caught my attention for 3 reasons.

    First, I think the city is going to be left with some rad looking murals. Here is one from a similar event in Cozumel, Mexico called Sea Walls: Murals for Oceans in Cozumel:

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    Second, like many others, I care deeply about the environment. But until we put in place the right economic incentives / disincentives, we need all the awareness building that we can get.

    Third, seeing Jeff Hull on the list of collaborators reminded me that there’s a new breed of real estate developers emerging in our cities. The big bad developer is sometimes (often?) thought to be greedy and insensitive to local communities. But I think the next generation sees itself quite differently. They see themselves more as city and community builders.

    So if you’re in Toronto this week, get on your bike and head over to one or more of the mural sites. Tweet me if you decide to go and maybe we can connect.

  • Lessons on the transforming city

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    Last week, Detroit hosted the 24th annual Congress for the New Urbanism. The theme was: The Transforming City. 

    I wasn’t there, but I would have loved to attend. So many interesting things going on, but so little time. Attention is scarce.

    For those of you who also did not attend, below is a copy of a speech that was delivered by Carol Coletta – senior fellow at the Kresge Foundation’s American Cities Practice. I found it on City Observatory

    The speech does a great job of addressing many of the common misconceptions that people have about cities. I can tell you that I heard many of them just this past weekend.

    Also, if you aren’t familiar with The Kresge Foundation, they are a large private philanthropic foundation based in Troy, just outside of Detroit. You might not recognize the name, but Kresge is the K in Kmart.

    And now Carol Coletta…

    ———————————————————

    Could there be a more apt place to observe “The Transforming City” than Detroit?

    On behalf of Rip Rapson and my colleagues at the Kresge Foundation, welcome to Detroit. If you travel to Detroit regularly, as I have over the past 15 years, you see that Detroit changes quickly.

    The speed of change here sometimes takes your breath away.

    How many of you have walked the Detroit Riverfront or ridden the Dequindre Cut?

    Visited the expanding Eastern Market?

    Seen the Q Line construction on Woodward?

    Eaten a meal at Selden Standard or Wright & Company, one of those meals so special that it deserves its own social media channel?

    Walked the streets of downtown or Midtown and discovered Great Lakes Coffee, City Bird, or the El-Moore Lodge?

    Or met Claire Nelson at the Urban Consulate, or any one of Detroit’s arts and civic innovators responsible for some of the most exciting urban work in the country?

    This is the Detroit you can see right outside this theatre.

    But there is another Detroit, one that is harder to see. It’s the Detroit that feels threatened by the pace of change in the city, suspicious of newcomers eager to be part of the change, and wondering when their loyalty to Detroit will be rewarded.

    Such feelings are not unique to Detroit. Every morning my Google Alerts brings a new batch of headlines from around the country detailing the gentrification battles.

    Because “new urbanism” is the butt of some of this criticism, I want to spend the next few minutes unpacking the myths and the realities of gentrification and what those of us who care about great places can do about it.

    First, let me share some numbers.

    In 1970, about eleven hundred urban Census tracts were classified as high poverty.

    By 2010—40 years later—the number of high poverty Census tracts in urban America had increased from 1100 to more than 3,000. (3165)

    The number of people living in those high poverty Census tracts had increased from 5 million to almost 11 million. And the number of poor people in high poverty Census tracts had increased from 2 million to more than 4 million.

    So over a 40-year period, the number of high poverty Census tracts in America’s core cities had tripled, their population had doubled, and the number of poor people in those neighborhoods had doubled.

    Given that record, I’ll bet a lot of people are hoping for a little gentrification– if gentrification means new investment, new housing, new shops without displacement.

    The idea that places might benefit from gentrification runs against the popular narrative. But here’s the really startling fact: only 105 of the eleven hundred Census tracts that were high poverty in 1970 had rebounded to below poverty status by 2010. That’s only ten percent! Over 40 years!

    A similar study of Philadelphia by Pew found almost exactly the same result in that city’s neighborhoods. There, ten times as many poor neighborhoods (164) experienced real declines in income as experienced gentrification since 2000.

    It is the lack of gentrification that we rarely count and never see. The deterioration happens too slowly for us to notice. But it doesn’t mean the deterioration isn’t devastating. In fact, the high poverty neighborhoods of 1970 lost 40 percent of their population in 40 years.

    You could make the case that poor people are displaced from poor neighborhoods because of their poor schools, their lack of jobs, their more chaotic public spaces, their lack of opportunity.

    Understand, this is not the fault of the people who live there. This is a public policy failure.

    But… when a combination of government intervention, philanthropic support, community development, and market forces combine to change a place as quickly as Detroit—even when that change means new residents, new jobs, and new places to live—it also rightfully generates concern.

    See, we are conflicted about change. Many of us wish we could fix place in time.

    But neighborhoods do change. You know that. You change them. And when change results in mixed income neighborhoods—in other words, when we achieve investment without displacement — it’s good for everybody.

    The research on this is quite clear: The ability of people to improve their economic status from one generation to the next is strongly correlated with mixed-income neighborhoods.

    Many of the public policy interventions to achieve economically integrated neighborhoods have supported poor people moving to wealthier neighborhoods. But that is an expensive, slow political slog that is hard to scale.

    But what if we flipped that script? What if… we could lure people with financial options about where they live to disinvested neighborhoods—resulting in the kinds of places that enable opportunity?

    And what if we also made a special effort to insure that the people remaining in low-income neighborhoods—people without options about where they live—what if an extra effort were made to insure they benefited from new people and new investment in their neighborhoods?

    The research tells us that mixed-income neighborhoods benefit poor people naturally. But can we double down to accelerate those benefits?

    Think of it this way: Can we get gentrification with broadly-shared benefits.

    I think so. But it’s not easy. Remember: Only 10 percent of high poverty neighborhoods “gentrified” over the past 40 years. And today we have triple the number of high poverty neighborhoods than we had 40 years ago.

    Clearly, mixed income neighborhoods won’t happen if we don’t work at it.

    So how can we do that?

    First, let’s acknowledge that, for the first time in 50 years, the market is moving in our favor. People (and jobs) are moving to cities. We need to see that as the opportunity it is to get mixed-income neighborhoods and not fear good, thoughtful development.

    That means we can’t let NIMBYs win the day. The same people who complain about high prices also complain when developers show up to build more supply. We have to make the connection between supply and demand for the protesters and the press.

    But attention must be paid to creating more mixed income housing. Our success on this has been mixed, and I’m struck by the comparison on methods used in NYC and in Portland, Oregon’s Pearl District to create more affordable housing in mixed income settings.

    As City Observatory reported today, The City of New York, one of the nation’s hottest housing markets, has had inclusionary zoning for the past 10 years. And over that time, the city has produced an average of 280 units per year for a total of 2800 units.

    In contrast, Portland took a very different approach. Portland used additional property tax revenue from construction in one neighborhood to subsidize affordable housing. Using just a third of such revenues from The Pearl District (along with Low Income Housing Tax Credits), Portland has built more than 2300 units of affordable housing—almost as many units as the much larger New York.

    Portland’s Pearl District is an example of a desirable neighborhood. The cost of desirable neighborhoods goes up. And it is the fear of rising costs, new investment, (and sometimes a changing demographics) that spawned the “just green enough” movement.

    Think about that: Disinvested neighborhoods lack access to parks and quality public space. But wait! Let’s not make it too nice for fear it will attract new investment. That’s craziness born out of legitimate frustration when prices start going up.

    The fact that buyers and renters are willing to pay more for quality neighborhoods means we need to build more of them, not fewer of them.

    How do we do that at scale?

    When Paul Krugman or—the American electorate willing—the next president calls for new investments in infrastructure to stimulate the economy, will we be ready with a plan that defines infrastructure as something more than roads and bridges?

    Why can’t “infrastructure” include new and redesigned parks and libraries, neighborhood community and cultural centers, trails and gardens—a reimagined civic commons? That’s the defining line I want to hear from our next president. I want so many desirable neighborhoods that people will have good choices at all price points.

    The way we live today is changing so fast. We are decoupling and recoupling. We have mothers raising kids alone, and people delaying childbearing—some forever—who want to help. We are sharing jobs, cars and homes. We are retiring later and living longer. And our lives, increasingly, are lived in public.

    We need to ready our cities for these changes. We need to figure out how to revalue what exists and give new life to the material, the buildings, the neighborhoods, the cities and the people we too often discard and write off.

    Equity does not sit in opposition to a thriving, appealing city. It is central to it.

    This is the work of CNU. This is your work. And that’s why I’m happy to be with you here in Detroit to celebrate and learn alongside you this week. Thank you for inviting me.

  • World after capital

    Albert Wenger is currently in the process of writing a book called World After Capital. The book isn’t finished yet. It still exists in a crude rough draft form. But already he has made it freely available online. You’re also welcome to comment and contribute to the book as he works on it.

    Why has he done it this way? 

    Because this format of publishing is in line with where he believes the world is heading. He believes we are headed towards a world where new forms of surplus – brought about by technological innovation – will create greater levels of freedom: economic freedom, informational freedom, and psychological freedom.

    His overall thesis is that the world has been moving through a series of scarcities. As hunter and gathers, the scarcity was food. In our agricultural period, we learned how to create food surpluses (which freed up more of our time), but it then produced land scarcity. Once the industrial revolution hit we once again freed up more of our time through surpluses, but then the scarcity became centered around capital. We also started to negatively impact the environment. Today, as we clearly move away from the industrial economy towards a knowledge and information economy, Albert believes the new scarcity is attention. (I wrote a related post about a month ago.)

    If you’re interested in this topic and don’t feel like diving into his book, I suggest you watch this 23 minute presentation by Albert Wenger. I watched it this morning and he talks about everything I mention above. 

    Here’s one of his slides that I felt was important to share:

    Why it’s interesting to think about this shift is because there will inevitably be positive and negative outcomes associated with it; there will inevitably be groups who, probably because of self-interest, would rather cling to the past; and because there are pressing global issues that we need to be focusing our attention on – issues such as climate change.

    I can’t help but wonder about all the ways this shift could reverberate through the economy and our cities. Earlier this week I wrote a post about architecture as a tool for capital. But with our current fixation on “starchitecture”, one could argue that we have already transformed architecture into a new tool – a tool for grabbing attention. If you believe that attention is the new scarcity, then this makes perfect sense.

  • The top 20 US neighborhoods for venture capital investment

    There’s a lot of talk about how venture capital investment has shifted from the suburbs to cities and how it is also concentrated in certain metro areas. But a new report from the Martin Prosperity Institute has dug even deeper to look at the top 20 neighborhoods (zip codes) in the US for venture capital investment.

    Here’s a summary of what they found:

    “The top 20 neighborhoods or zip codes for venture investment include nine in San Francisco, five in San Jose, three in Boston-Cambridge (one in suburban Waltham and two in Cambridge close to MIT) and one each in San Diego (close to the University of California, San Diego), Dallas, and New York (close to New York University).”

    And here’s the full top 20 list:

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    Initially I looked at this list and thought that neighborhoods such as Menlo Park and Redwood City shouldn’t be labeled as San Francisco, since they are outside of the county. But technically they still fall within the San Francisco Metropolitan Area

    It’s amazing how San Francisco dominates this list.

  • Crowdsourcing unsafe cycling conditions with a small yellow handlebar button

    Hövding – a Swedish company best known for its radical airbag cycling helmets (definitely check these out) – is currently crowdsourcing unsafe conditions and cyclist frustration in London.

    Working with the London Cyclist Campaign, they distributed 500 yellow handlebar buttons. Cyclists were then instructed to tap these buttons whenever they felt unsafe or frustrated with current cycling conditions. 

    Here’s what the button looks like:

    Every time the button is hit, the data point gets logged to a public map and an email gets sent to the Mayor of London reminding him of his promises around cycling. Both of these things happen via the rider’s smartphone.

    Here’s what the public map looks like at the time of writing this post:

    Not only does it tell you pain point locations, but it also seems to suggest the primary cycling routes. I think this is a brilliant initiative because, it’s entirely user-centric. It’s telling you how people feel on the ground.

    Supposedly, Hövding is actively looking for other cyclist groups around the world to help them distribute their buttons. So if you’re a group in Toronto or in another city, I would encourage you to reach out to them. The more data the better.

  • The cost of parking minimums

    Access Magazine has a good piece on parking minimums and the cost they create for our cities. The article is by Donald Shoup, who is Professor of Urban Planning at UCLA. He is also the author of The High Cost of Free Parking.

    Here is his argument:

    “Minimum parking requirements create especially severe problems. In The High Cost of Free Parking, I argued that parking requirements subsidize cars, increase traffic congestion and carbon emissions, pollute the air and water, encourage sprawl, raise housing costs, degrade urban design, reduce walkability, damage the economy, and exclude poor people. To my knowledge, no city planner has argued that parking requirements do not have these harmful effects. Instead, a flood of recent research has shown they do have these effects. We are poisoning our cities with too much parking.”

    And here’s his summary of what it costs to build a parking stall in various US cities (both underground and aboveground):

    To put these numbers into perspective, he also looks at the median net worth of US households (2011) to show just how expensive this parking is for some groups. 

    Because remember, these parking costs get embedded into the cost of housing, retail stores, and so on.

  • Conversational investing

    I’ve been spending my mornings this weekend, listening, watching, and reading things. I’m always reading to find content for this blog, but I’ve allocating more time to consumption this weekend. So you might be noticing a slightly different varietal of posts over the past few days.

    This morning it’s a podcast called Dorm Room Tycoon. It’s an interview with Andy Weissman, who is a partner with the New York venture capital firm, Union Square Ventures. The topic is “how we invest” and I’m enjoying the discussion.

    Andy describes their firm as being boutique and thesis-driven. Meaning they have theses and they look for companies that dovetail with them. But in addition, he also labels their approach as “conversational investing.”

    What does that mean?

    It means they listen, watch, and read. They blog (all the partners write their own personal blog). They engage and discuss. They put themselves and the firm “out there”. And they don’t pretend to have all the answers or to be able to predict the future. Instead they let their conversations – both internal and with the broader market – help them make their investing decisions.

    So why do I bring this up?

    Because in my own small way, I am trying to do the same with real estate development, architecture, and city building. I write every day to learn and because I am infinitely curious. If you want to know what I’m thinking about, read this blog.

    It’s for this reason that my favorite blog posts are the ones in which there’s lots of discussion in the comment section. It’s the market talking back, telling me whether I’m out to lunch or not. Ultimately, this idea of “conversational investing” is really about iterative decision making.

    Here’s the podcast embed in case you would also like to listen:

    [soundcloud url=”https://api.soundcloud.com/tracks/266734055″ params=”auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false&visual=true” width=”100%” height=”450″ iframe=”true” /]

    Regardless, the Dorm Room Tycoon is worth checking out. They have other interviews with people like Malcolm Gladwell and Simon Sinek.

  • Fluted glass curtain wall

    New York architecture firm REX is working on a new office building in Washington DC that will incorporate a beautiful fluted glass facade. Here’s a rendering of what it is intended to look like:

    Here’s what that looks like in plan (it’s a GIF that should show typical curtain wall vs. proposed fluted glass):

    Here’s a photo of the 1:1 mockup:

    And here’s a description from the architect:

    The façade’s approximately nine hundred identical, insulated-glass panels—3.2 m tall by 1.5 m wide (11’-6” tall by 5’-0” wide)—are subtly curved to a 2.9 m (9’-6”) radius through a heat roller tempering process. The curve yields structural efficiency, which meets wind load requirements and enables a thinner monolithic outer lite than normal, providing greater transparency. 

    Because of the curve’s inherent rigidity in compression, only the top and bottom edges of the panels are supported from the floor slabs, while the mullionless vertical edges are flush-glazed for a minimalist aesthetic that improves sight lines, while gaining usable floor area.

    They are working in collaboration with Front Inc., which if you haven’t heard of, you should check out. They are a design/engineering consultancy that specializes in facades and building envelopes. They work with many of the big name starchitects. The developer of the project is Tishman Speyer.

    It’s worth noting that part of the impetus for the fluted glass facade was to try and innovate within the confines of DC’s draconian zoning – which mandates that no building can be taller than 130 feet. Because of this, developers and architects are usually forced to build out to the allowable area, leaving little room for architectural variation. 

    But in this case, the fluted glass removed the need for thick mullions and also allowed them to extend out beyond the lot area by 4 inches every 5 feet (the curves are considered “architectural features”). So this move has created both architectural variation and more rentable area.

    It doesn’t appear that the building will have any operable windows, but other than that, I think it promises to be quite beautiful. What do you think?

    All images from REX.

  • Rental apartment expansion in Detroit

    The Detroit Free Press recently published a summary of some of the new rental apartments coming online in and around downtown Detroit. Here’s the map that they published along with their piece:

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    Based on this article, demand is outstripping new supply and rents are starting to push above $2 per square foot. This strikes me as a solid number given that there are also for sale lots/houses in the city going for $10,000.

    Going back to some of the posts I have written about rental apartment development in Toronto, you might remember that $3 psf is roughly our magic number given current cost structures.

    In some special circumstances you might be able to get a project off the ground with rents closer to $2 psf, but that’s an exception to the rule. There are many areas in the Toronto region with $2 psf rents and few, if any, new rental apartments.

    But Detroit is obviously a different city, as is every real estate market.

    Land would be cheaper. Many of these new rental apartments are conversions of existing buildings (which were probably bought for cents on the dollar). And I wouldn’t be surprised if there are tax abatements and other incentives to encourage more development. 

    I also wonder if people in the city aren’t being at least partially drawn to multi-family buildings because of the safety and security benefits. That’s something that certainly came up when I was in Detroit last weekend.

    Regardless, this is a good news story for Detroit, which is not always the story you hear people telling of the city.