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.
Earlier this week a good friend of mine sent me a scanned article from this month’s issue of Urban Land Magazine called: Rethinking PADs–Private Accessory Dwellings. He said, I know you have a thing for PADs, so here you go.
PADs, or private accessory dwellings, is simply another term for nanny flat or laneway house. Whatever you want to call it, the concept is the same. It’s about taking a single family house and adding an additional dwelling onto that same lot.
In many cities around the world, this is not allowed. Each lot is to have only one dwelling unit. And that’s because the single family home – particularly in North America – has been considered sacrosanct.
But as I’ve argued and demonstrated before, I think we’re on the cusp of this changing. Here’s a snippet from the Urban Land article (unfortunately, I don’t think the full article is available online):
“If PADs can be added in appropriate scale and number, existing housing, zoned land, and current infrastructure could be efficiently used to increase housing supply and to stabilize and even reduce housing prices. Moreover, since PADs are by definition smaller than existing dwellings, they will attract both younger and older residents who will enrich the intergenerational composition of both urban and suburban communities.”
I’m happy to see Urban Land (the magazine of the Urban Land Institute) giving this topic some air time. There are a number of social, economic, and environmental benefits to intensifying single family neighborhoods. And the most progressive cities in the world are already doing it.
What is your city’s position on accessory dwellings? Toronto doesn’t support them. But there are instances where people have gotten them approved.
Image: Kensington Market Laneway House, Toronto via Flickr
I was on CBC radio this morning talking about the revitalization of Dovercourt Village and Geary Avenue in Toronto.
The funny thing about this topic is that it’s one I actually held off writing about. I’ve been thinking about this street and area for probably about 5 years now. However, I do have to keep some secrets to myself 🙂
But then I started feeling like the cat was already out of the bag. Everyone in my circle was talking about it. So I wrote a post calling Dovercourt Village the next Ossington. I had no idea it would get the traction that it has gotten, but in hindsight it makes total sense. It makes a great headline: “Toronto’s ugliest street to become the next Ossington.” Boom.
The tough question that Matt Galloway asked me this morning was: What happens to all the blue collar businesses when/if Geary Avenue and the area really takes off? My response – given that it was only a 5 minute radio piece – was that it comes down to preservation vs. progress.
This is a topic that I’ve written about with respect to heritage buildings, but the same concept applies to communities as well. How do you allow neighborhoods to receive new investment while at the same time not erasing its past and the things that made it interesting in the first place?
It’s not easy, that’s for sure.
I absolutely believe that there are things that developers can do to respect the neighborhoods in which they build in. But at the same time there are economics at play. In business school, they teach you this:
It’s the lifecycle of businesses and industries.
The key takeaway here is that the rise and decline of businesses is actually quite healthy for markets. History is littered with examples. The word processor replaced the typewriter. The mobile phone replaced the landline. Air travel replaced rail travel. And the list goes on.
Today, I think we’re at a moment in time where our relationship to cars is changing dramatically. How we get around and how we own and operate them is being called into question.
So just because there’s auto shops on Geary Avenue today, doesn’t mean they’ll be there tomorrow regardless of whether the area takes off or not.
For Alex’s article, the Globe asked “prominent urbanists, architects, and scholars” from around the world to comment on what Canadian mayors should be focused on right now as we build the cities of tomorrow.
Here’s a list of what they said:
Make people, not cars, happy
Decrease speed limits
Empower city governments
Leverage density
Embrace the science of big data
Mix residences and workspace
Turn streets into destinations
Redevelop the inner suburbs
It’s a great set of recommendations. So I would encourage you to check out the full Globe and Mail article.
The bad news is that I took a gnarly spill yesterday afternoon on the mountains. The nose of my snowboard got stuck in deep snow and I fell forward onto my shoulder and then compressed my back. I tore a shoulder ligament and possibly fractured two ribs. So snowboarding season is over for me this year.
The good news is that I now have more time to relax and enjoy the town of Banff, and then Revelstoke this weekend.
Banff is a beautiful town. It’s compact, walkable, and surrounded by snow capped mountains. How could you not love it?
One of the more subtle things that stands out for me though is the ubiquity of second level retail and restaurants. There’s a lot people in the (North American) real estate industry that will tell you that second floor retail just doesn’t work (you want ground floor). And indeed, it can be hard to pull off. As I’ve said before, getting retail right in general can be difficult.
But in Banff, many of the bars and restaurants are up top. Here are a few examples (there’s an Earls, Boston Pizza, and a Korean restaurant, respectively):
So my gut tells me that in order to get enough retail/commercial space to serve the area and its tourists, they had no choice but to go up. They simply ran out of ground floor space. Because if the town was able to instead sprawl outward, I suspect that’s exactly what it would have done. And then more ground floor space would have been created.
To be fair, most of the second floor examples I came across were bars and restaurants, which is arguably easier to pull off than straight retail. But it’s still something.
If any of you are familiar with real estate and planning in Banff or just have a better hypothesis, I’d love to hear from you in the comment section below.
In it he talks about a “weirdness index” that he developed for CEOs for Cities that measured and ranked 50 American cities across 60 different behavioural indicators. San Francisco and Salt Lake City come out as the weirdest, and Portland ranked 11th out of 50. The most “normal” part of the US was the Midwest. Normal meaning behaviours that are most similar to the national average.
He then goes on to talk about weird as a competitive advantage. Here are a few snippets:
When it comes to economic success in today’s economy, the key is to differentiate yourself from your competitors. Harvard Business School’s Michael Porter counsels businesses that “competitive strategy is about being different.” And the late, great urbanist Jane Jacobs told us, “The greatest asset that a city can have is something that’s different from every other place.”
True entrepreneurship is about deviant behavior: starting a business that makes a product that no one else has thought of or thinks there’s a market for. Entrepreneurs and open-minded, experimental customers go hand-in-hand.
We shouldn’t do things just to be different, but we should never be dissuaded from trying something simply because it is different or would make us different from other places.
What this all comes down to is the simple fact that what is weird today, might very well become the norm tomorrow. But you need to be open enough to allow that to happen if you want to be the place that generates those news ideas.
Could you have imagined that selfies would become as ubiquitous as they have? That would have been pretty hard to predict. It used to be the case that people were afraid to use their real name on the internet. Now we share our entire life online, including our faces.
A few days ago, Bill Gurley – who is an investor in Uber – wrote a really fascinating blog post called, Uber’s New BHAG (Big Hairy Audacious Goal): UberPool. Bill doesn’t update his blog very often, but when he does it’s incredible stuff.
I’ve touched on UberPool briefly before. But basically it’s a true “ride sharing” service where people with overlapping routes can easily share the same car – much like people do today informally. The obvious advantage of this is cost. It’s cheaper to share.
What’s most fascinating about this service though is how it fits into Uber’s larger mission to drive transportation costs down. And there’s a specific reason for that (via Bill Gurley):
When Uber launched its low-cost UberX offering in the summer of 2012, the company quickly realized that the demand for its transportation services is HIGHLY elastic. As the company achieved lower and lower per-ride price points, the demand for rides increased dramatically. A lower price point delivered a much better value proposition to the consumer, yet still remained a great business decision due to the remarkable increase in demand.
So what Uber quickly figured out was that if they could increase the utilization rate for drivers (the time actually spent with passengers), they could charge consumers lower prices while at the same time maintaining driver salaries. Prices went down, but volume went up.
One way to do that is to obviously decrease driver downtime by improving liquidity on the marketplace. But another way is to simply increase the number of passengers being transported at one time. Hence the creation of UberPool.
But it doesn’t stop there.
Because of all the transportation data that Uber now has (the company has a data group called the “math department”), they can fairly accurately predict what a price cut will do to their ridership levels. This allows them to “forward invest” their capital in new services – such as UberPool – before they even have the revenue from the anticipated increase in ridership.
So what does this all mean?
It means that Uber is going to get cheaper and cheaper and cheaper. Uber is trying to get to what they call “The Perpetual Ride”, which basically means that drivers will always have customers (100% utilization). That’s quite a goal, but it would mean the absolute lowest prices for consumers (barring any other changes to their cost structure).
Dirt cheap transportation is a pretty compelling value proposition, which is why I continue to believe that cities should be hard at work trying to figure out how to harness this transportation shift.
If you’re interested in this topic, I would encourage you to give Bill Gurley’s blog post a read.
It should start from the premise that the fundamental underpinning of the Canadian economy to have prosperity is dependent on the success of the cities, because 80 per cent of Canadians live in cities. -Toronto mayor John Tory
This week the leaders of Canada’s 22 largest municipalities are gathering in Toronto to figure out how to put urban issues on our national agenda. This is a topic I’ve touched upon many times before on Architect This City, but I continue to believe that it’s one of our most pressing issues.
We know that the vast majority of Canadians live in cities (see above quote) and we know that the vast majority of our economic output is concentrated in cities. In fact, roughly half of Canada’s GDP is produced in our 6 biggest cities alone – Toronto, Montreal, Vancouver, Calgary, Edmonton, and Ottawa-Gatineau.
But despite this concentration of wealth and economic activity, our governance structures do not reflect this reality. They’re outdated. They were built for a Canada that has passed. And so in my view, there’s a significant amount of untapped potential lying dormant in our cities if only we could get around to properly empowering them. There’s a “stimulus package” waiting to be unleashed.
In anticipation of this week’s leadership meeting, the Globe and Mail published an article called, Canada’s big city mayors ready to push urban agenda. And in it they included a number of interviews with Canadian mayors. It’s fairly long, but definitely worth a read. Here are a few relevant sound bites…
Vancouver mayor Gregor Robertson
We have an archaic system. Cities aren’t recognized in our constitution. It’s unbelievable. But Big City Mayors have set aside those important gaps because the needs are now so urgent on housing and transit, we can’t afford to spend a couple years debating structural change. For the time being, the focus is just on ensuring there’s more federal capital provided for transit and other urban infrastructure.
Calgary mayor Naheed Nenshi (on municipal funding sources)
I would prefer to levy myself, so that I’m ultimately accountable to my citizens and, if they don’t like it, they can get rid of me. Allowing others to levy the tools takes away predictability and stability, as well. That said, we’re starving here, and any improvement to the system that leads to those predictable, stable cash flows is a good thing.
Winnipeg mayor Brian Bowman (on the most pressing issue facing Canadian cities)
I’d say without question infrastructure and new funding models to modernize the ways that cities fund themselves. That’s something I’ve started discussions on already with some of my counterparts, Mayor [Naheed] Nenshi in Calgary, Mayor [Don] Iveson in Edmonton as well as Gregor Robertson in Vancouver. We’ve talked about a number of topics including the missing and murdered indigenous women and girls issue, public transit and rapid transit development. But the one consistent theme is that the way cities are funded is outdated.
Toronto mayor John Tory
I start from this premise: Are people paying enough taxes? In many cases, you could argue, not only are they paying enough taxes, they can’t afford to pay any more. We should be looking at the total amounts paid to all three levels of government and how that is being allocated. Do we believe that, in the case of Toronto, the federal and provincial governments are making adequate investments in transit, given the amount of money they take out of this area in taxation? I would say the answer is: not yet. [But] they have been doing better.
Montreal mayor Denis Coderre
We are negotiating a new pact between the province and Montreal, and it’s all about municipal autonomy. We need tools so we’re not always waiting in the hallway at the end of legislative sessions looking for amendments to make the city work better. Since 85 per cent of immigration in Quebec is going to Montreal, we need more control over tools of integration, like job creation and housing. Montreal needs financial leverage…
Yesterday my friend Darren Davis out of Auckland introduced me to a 3-part blog series that he recently did with Andreas Lindinger out of Vienna, which looked at pedestrian zones and shared spaces across these two cities.
Compared to both Auckland and Vienna, Toronto is behind when it comes to pedestrian zones and shared spaces. So it’s interesting to see how other cities have managed to pull it off. It’s also further proof that you don’t have to be a warm climate city to have amazing public spaces.
Image: Vienna via Vienncouver (notice the cars and pedestrians mixed in)
Some of you might be aware that I’m involved with a non-profit group here in Toronto called The Laneway Project.
Our mission is to transform the city’s under-utilized laneways into safe, vibrant, and people-friendly spaces – which is something that has been done with a lot of success in other parts of the world (see Melbourne above).
Today I’m excited to announce two things.
First, the group has received funding from the Ontario Trillium Foundation. This is great news because it’s obviously a lot easier to execute on a mission when you have some resources behind you.
And that ties into the second announcement.
The funding received from the OTF is going to be used for 2 laneway transformation projects here in Toronto. Think of them as pilot projects that will help to reorient Torontonians into thinking about laneways as viable public spaces and to demonstrate that this group is about real action.
Once the 2 laneways have been chosen, The Laneway Project will work with those local communities to come up with a vision and then an implementation plan. But before that can happen, there needs to be 2 laneways.
So if you’re a community group, resident association, business improvement area, or some other passionate group, now is your chance to nominate your laneway. Get in touch with The Laneway Project before February 7th, 2015 by clicking here.
It’s the tower on the right hand side of the picture above. The 2 towers on the left are existing, although they’re quite recent. The development site is currently a parking lot and it abuts a railway corridor to the south.
The reason I bring up this project now is because I recently saw this notice go out from the Gooderham & Worts Neighbourhood Association. It’s an announcement for a public meeting that I believe just happened earlier this week (I think they meant to say 2015 instead of 2014).
After I saw the notice, I decided to share the rendering on social media to see what people thought of the proposal. The general consensus seemed to be that the tower looked a bit cookie cutter (though to be fair it’s hard to tell from renderings like this) and that 57 storeys was simply too tall for the area. I got comments back like “enough is enough.”
Now, I’m not here to say that 57 storeys is exactly the right height for this building and this location (though it might be), but I am saying that I don’t think it’s as important as most people think it is. I think we’ve become over-fixated on height, at the expense of other important design issues.
Part of this has to do with how we communicate projects and how we tell the story. If you look at the city’s website for this project, you’ll see that this is how it’s explained:
The City has received an Official Plan Amendment and Rezoning application for a 57-storey mixed use tower and a 5-storey commercial building containing 496 residential dwellings, 5,048 square metres of retail gross floor area, and 21,243 square metres of office gross floor area. The 5-storey commercial building is within the Distillery District, and the 57 storey tower is immediately south west of the Distillery District.
About the only thing that I think most people (outside of the industry) would understand are the heights of the buildings. Everything else – from the Official Plan Amendment to the number of square metres of gross retail area – is likely lost.
So it’s actually not surprising that most people just look at one or two renderings and the number of storeys, and then make a judgement call about whether or not it would be a positive thing for the city.
Now, I know why we communicate projects in such a clinical way. It’s to appear impartial. But there are so many other considerations when it comes to great city building.
How does the building meet the street? What are the first couple of floors like at eye-level? What’s the materiality? What would the experience be like for someone having a coffee on a patio outside of the building? What kind of commercial tenants will there be? Is there a unique leasing/programming strategy? What’s the overall vision for the project?
Again, I’m not saying that height is completely irrelevant. I simply fear that we might be losing sight of the bigger picture. The Distillery District is a magical place in Toronto. It’s hands down one of my favorite places to be. In fact, I’ll be there this weekend for a Winterlicious dinner. But I honestly couldn’t tell you how tall the existing towers are. Are they in the 40s?
I could, however, tell you exactly what it’s like to walk down the Distillery’s intimate cobblestone streets and sit on a patio with a beer in hand. It’s a beautiful thing.