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Development patterns appear to be not so free market-driven after all

Development patterns appear to be not so free market-driven after all.

There tends to be agreement among Americans that the way our communities are built is due to free-market demand. But as it turns out, government incentives have long influenced the way our communities develop, and have long favored suburban development patterns. More from The Atlantic:

According to a new report released by Smart Growth America, the federal government influences our real estate sector – with tax credits here, loan guarantees there, grants and other programs – to a tune of more than $450 billion a year. All that money (and the incentives implied by it) subtly skews what we build. Meanwhile we keep talking about about other, more obvious interventions in the real estate market, like regulation through zoning codes and infrastructure decisions about where to put roads and sewer lines.

Stepping back and looking at the whole collection, it’s clear that the federal government has favored many types of development at the expense of others, often with weak or outdated logic. The government dramatically favors homeowners over renters. Its support is heavily skewed toward single-family homes over multi-family developments (the FHA, for instance, funneled just one-tenth of its $1.2 trillion in loan guarantees over the past five years toward multi-family housing).

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Up To Speed

New York City, Chicago rapidly advancing progressive transport policies

New York City, Chicago rapidly advancing progressive transport policies.

New York City and Chicago are blazing a progressive path towards a sustainable transport network. Cincinnati has made minor strides with regards to bicycle infrastructure and Complete Streets, but much is being left on the table in the Queen City and elsewhere. More from Grid Chicago:

I hadn’t been to New York since 2008 when I checked out their Summer Streets ciclovia. Since then Manhattan has gone through an amazing transformation under Mayor Michael Bloomberg and transportation commissioner Janette Sadik Khan. Besides implementing the bike lanes, they pulled off the ultimate road diet on Broadway, removing car lanes and shutting down sections of the island’s main diagonal thoroughfare to calm traffic and make space for some amazing new car-free spaces. And I didn’t even have time to check other first-rate bike facilities in Queens and Brooklyn, or the new segments of the Highline, the sleek, 1.5-mile elevated linear park which paved the way for Chicago’s Bloomingdale.

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Up To Speed

Residential zoning laws may be preventing natural economic evolution

Residential zoning laws may be preventing natural economic progression.

The “convergence” theory suggests that poorer states like Mississippi should have caught up to richer states like Connecticut over time. This economic projection held true in America’s history until about 1980, and some researchers blame overbearing residential zoning laws. More from the Boston Globe:

During the 100 years of high convergence, Americans moved in droves from poorer states to richer states in search of higher wages. As more people crowded into richer states, average wages there began to fall in response to the relative oversupply of workers; meanwhile wages in the poorer states began to rise for the relatively few workers who remained behind, creating a kind of economic balancing effect between American regions.

Theoretically this process should have continued until Mississippi and Connecticut were more or less equally desirable places to work and Shoag and Ganong propose a three-step explanation why it did not: Convergence stopped because labor migration stopped; labor migration stopped because housing prices in the richest states grew so out of whack that low-skilled workers could no longer afford to move in; and housing prices skyrocketed in response to zoning laws written in the 1970s that artificially restricted the amount and type of housing that could be built in richer locales.

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Business Development News

Cincinnati Central Riverfront Plan wins national award for excellence

In 1997 officials from the City of Cincinnati and Hamilton County set out on a path to transform the city’s central riverfront. What became known as the Cincinnati Central Riverfront Plan laid out a bold vision to accomplish just that, and has now been recognized by the American Planning Association (APA) for the implementation of the plan first laid out nearly two decades ago.

The APA will present local leaders with the National Planning Excellence Award for Implementation at its annual conference to be held in Chicago on April 16.

“The Cincinnati Central Riverfront redevelopment is an excellent example of plan brought to reality,” Ann C. Bagley, 2013 APA Awards Jury chair, stated in a prepared release. “The fact that this development happened during an economic downturn demonstrates the strength of the plan and the importance of the public commitment that brought it into being.”


Cincinnati’s central riverfront has shifted dramatically from its form in the 1980s [LEFT], to that of the 2010s [RIGHT].

Local leaders have taken an incremental approach towards implementing the vision laid out in the Cincinnati Central Riverfront Plan. Between 1998 and 2002, the first major investments included the reconstruction Fort Washington Way (FWW), and the development of Paul Brown Stadium, Great American Ball Park, and the National Underground Railroad Freedom Center.

The consolidated FWW opened up dozens of acres of waterfront property, and the development of two stadiums and a major museum were intended to serve as cultural and entertainment anchors that would draw Cincinnatians back to the riverfront.

These significant public investments laid a critical foundation that would enable the next phase of work, historically located in one of the most flood-prone areas of the city, out of the 500-year floodplain.

Once a private development team had been selected, the City of Cincinnati and Hamilton County began to work with Carter-Dawson on the construction of the plan’s most ambitious element known as The Banks.


Phase two of The Banks will deliver another 300 residential units along with more than 60,000 square feet of commercial space, and a future office tower.

The $91 million first phase of the mixed-use development began in 2007 and resulted in 300 apartments, 76,000 square feet of commercial space, and 6,000 structured parking spaces. Emboldened by the success of phase one, developers are set to break ground on phase two in the coming months which will include another 300 residential units and more than 60,000 square feet of commercial space.

Two office towers, a hotel and townhomes are still to come within the first two phases of The Banks. At ultimate build out, officials envision The Banks to result in $600 million worth of private investment and become the home for more than 3,000 residents.

Meanwhile, construction of the $120 million, 45-acre Smale Riverfront Park is progressing concurrently with the development of The Banks. To date, the first phase of the new central riverfront park has been completed and work is beginning on phase two. Future phases will be timed with future construction of The Banks, and as funding is allocated.

“In planning terms, a project that goes from a concept to implementation in less than 20 years is impressive to say the least,” stated Todd Kinskey, Executive Director of the Hamilton County Regional Planning Commission. “It is that much more impressive because, in this case, the implementation involved seemingly insurmountable physical, economic, and political barriers.”

The early discussions surrounding The Banks, however, were tumultuous at best as local leaders grappled with complaints about too much office space being introduced into an already competitive marketplace.


The original vision of the Cincinnati Central Riverfront Plan [LEFT] included more traditional types of architecture with greater use of natural building materials [RIGHT].

“The current plan to include 30-story buildings along the riverfront would harm downtown and violate the riverfront plans adopted by the community many years ago,” then Councilman Jeff Berding (D) told the Business Courier in 2007. “We need to remember that the plan adopted several years ago was not simply pulled out of the air, but was the result of intense public input and driven by professional urban planners.”

While design elements may not be of the same caliber as those originally envisioned, the urban form of the private investment appears to be as desired. But even more gratifying than that, for many of the early people involved in the planning, it is that the project has happened against all odds and skeptics.

“The successful implementation of the plan is the result of unprecedented cooperation between the city, the county and their partners,” exclaimed Vice Mayor Qualls (C), who was one of the original driving forces behind the development of the Cincinnati Central Riverfront Plan.

Her thoughts were further validated when Bagley concluded, “The fact that this development happened during an economic downturn demonstrates the strength of the plan and the importance of the public commitment that brought it into being.”

In addition to the future phases of the Smale Riverfront Park and The Banks, city leaders are now soliciting ideas for how to cap a 300-foot span of FWW. City and county officials say that the work to cap the short stretch of interstate will commence once a design is in place, and funding has been secured.

In 2010, UrbanCincy published an exclusive threepart series profiling the dramatic transformation of Cincinnati’s central riverfront over the past two decades.

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Up To Speed

The rise of downtowns and resurgence of inter-city bus travel

The rise of downtowns and resurgence of inter-city bus travel.

The resurgence of center cities and urban living has been well-documented. When combined with the inability of the United States to significantly invest in inter-city passenger rail, it appears to be only natural that inter-city bus travel has boomed. More from Chicago Magazine:

“In 1960, there were 454 daily arrivals and departures by bus in and out of Chicago. In 1980, 290; in 2002, 147 (O’Hare has about 2,400 flights every day). From 2002-2006, intercity bus service across the country declined eight percent. Then it turned around…With the resurgence of central-business districts, travelers too young to remember the stigma associated with bus travel, especially those living on college campuses and in large cities, are turning to motor coaches in especially large numbers.”