Downtown development yields stronger fiscal returns
The Gulch Neighborhood in Nashville. Photo source: The Gulch.
Three developments were studied in the Nashville area: New urban infill and greenfield neighborhoods and a 1990s conventional suburban development. The infill development far outdistanced the others in net revenue, according to a report by Smart Growth America. The Gulch neighborhood in Downtown Nashville, a redevelopment of a 76-acre brownfield site originally designed by Looney Rick Kiss, generated $115,720 in net revenue per acre — almost 1,150 times the net revenue generated by Bradford Hills (conventional suburban) and 148 times the net revenue of Lenox Village (new urban greenfield).
The Gulch cost less per unit to provide services than the greenfield projects. The lesson: Investments required for infill revitalization generate a higher return on investment (ROI) than building in far-flung suburbs — in this case at least. When building does take place in distant suburbs, it appears that a new urban design performs better. The Gulch has additional advantages: It appeals to the young and educated workforce that is a key market segment this decade, and it supports transit.
The Gulch — and to an extent, Lenox Village — also offer strong placemaking, which creates a distinctive identity for an urban neighborhood.
The study examines the cost of providing ongoing city services to the residential component of each project, including police, ambulance and fire service costs as well as the overall impact to the County’s general fund, according to Smart Growth America. Upfront infrastructure cost was not included in the analysis.
For more in-depth coverage:
• Subscribe to Better! Cities & Towns to read all of the articles (print+online) on implementation of greener, stronger, cities and towns.
• Get the April-May 2013 issue. Topics: Transit sheds hold their value, Market responsive form-based codes, Why retail design is important, Return of the greenfield TND?, Downtown Wichita, Mobile plans resurgence, Baltimore’s 20-Minute neighborhoods, Where the market is heading, Value of low-density commercial buildings, Promoting New Urbanism through roadway design, Form-based code assessment, Review: Building the New Urbanism
• Get New Urbanism: Best Practices Guide, packed with more than 800 informative photos, plans, tables, and other illustrations, this book is the best single guide to implementing better cities and towns.
