Prof David Dowall- "Reorienting cities- Effective Land Use Policies_Part 2"
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Transcript of Prof David Dowall- "Reorienting cities- Effective Land Use Policies_Part 2"
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Reorienting cities—effective land use policies
Part 2: Markets and Incentives
Professor David DowallUniversity of California, Berkeley
2
First principles: how markets and planning interact
• Understanding the relationship between markets and planning:– The demand for land is derived
from the demand for economic activities that take place on it—housing, offices, retail uses
– Planning per se does not generate demand for land, it regulates patterns of land use
– Therefore planning needs both regulations and incentives to successfully shape urban development
• Planners need to know how urban land markets work– Demographic and economic
drivers shape the demand for land
– Infrastructure, particularly transportation access influence the demand for and price of land
– Overly restrictive land use can increase land prices and make real estate expensive and unaffordable
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How developers and planners think about land
Developer perspectives• Is site in an attractive location
that will attract buyers and renters?
• Can the site access adequate infrastructure?
• How will government respond to proposed project?
• Can I get an acceptable return on my investment (land and building cost)?
Planner perspectives• Will the development of the site
foster the implementation of the structure plan and benefit the city?
• Does the site possess adequate infrastructure access?
• Are there any negative environmental or social impacts that may result from the project?
• Are there ways collaborate with the developer to enhance positive public impacts
4
Estimates of global urban land use 2001,(Modis 500m Model)
Schneider, Friedl and Potere, 2009
Region Urban land extent (sq.km.) Percent of total
North and South America 225,245 34
Europe 149,394 23
Africa 68,834 10
South-Central Asia 64,973 10
East Asia and Pacific 150,313 23
Total 658,760 100
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New York’s Urban Development 1930 - 2000
1930s
1950s
1960s
1970s
1980s
1990s
Built-up area per person, selected Indian cities
0
50
100
150
200
250
300
Sq
uar
e m
eter
s p
er
per
son
Coimbatore
Hyderabad
JaipurKanpur
Mumbai
Pune
T1 T2
Income and economic activity is increasing urban space per capita
Population density trends, selected Indian cities
050
100150200250300350400450
Persons per hectare
Coimbatore
Hyderabad
JaipurKanpur
Mumbai
Pune
T1 T2
Population density is falling, meaning more urban land will be required per person
Declining densities are a global urban challenge
• Conversion of agricultural land• Increase in “heat island effects” that
contribute to climate change• Rising energy consumption—mainly
transportation and commuting• Undermining of agglomeration economies• Governance is more complicated
Sprawl and energy consumption
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Understanding how urban land use planning contributes to sustainable urban development
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Bangkok’s transport driven urban form
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Structure plans frame and guide urban development but infrastructure systems must be programmed as well
Rankings for infrastructure for selected countries (Global Competitiveness Index)
111
98
96
82
66
45
41
38
27
20
17
2
0 30 60 90 120
Vietnam
Phillipines
Indonesia
Cambodia
China
New Zealand
Thailand
Australia
Malaysia
Korea
Japan
Singapore
11299
9589
6150
473634
2219
1
0 30 60 90 120
PhillipinesVietnam
IndonesiaCambodia
ChinaAustraliaThailand
KoreaJapan
New ZealandMalaysia
Singapore
104
102
94
77
50
43
37
35
24
22
14
1
0 30 60 90 120
Phillipines
Vietnam
Indonesia
Cambodia
China
New Zealand
Australia
Thailand
Malaysia
Japan
Korea
Singapore
Overall Quality of Infrastructure Ranking
Quality of Ports Ranking Quality of Roads Ranking
World Bank, 2010.
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Financing new development
• Special districts• Improvement districts• Subdivision funding
agreements • Exactions• Betterment levies • Property taxes• User fees• PPPs
- 15 -
P3 project financing options
Fully Public Fully
Private
O&M Contract
Super Turnkey
DB
LDO
Temporary Privatization
BBO
BTO
BOT BOO
- 16 -
An example of a PPP project:Concession project participants
Federal Government
State GovernmentCoordination
Transport ProjectCommercial Bank
Development Bank
Financial Agent Advisor
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Old street grid patterns and small parcels limit opportunities for high-density development
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Example of land readjustmentESCAP
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Minburi land pooling/Readjustment project, Bangkok: before and after
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Redevelopment in LA: Bunker Hill
Public acquisition and clearance The final product
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Zoning incentives
• TDR• Density bonus
22
Using TDRs as incentives for open space
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Are new towns a panacea?
London’s plan Tokyo’s reality
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A Virtuous Cycle
Infrastructure investments
Morebuilt-up space
Increase property
values & taxes
POLICIES
Higher GDP growth
in cities
25
Evolution of planning has shaped good practice
• Rational model– There is a public interest– Expertise is paramount
• Mediation– Neutral – non-neutral
• Negotiation • Advocacy• Diplomacy• Mutual learning• Collaboration
Community
Developer
Planner
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Conclusions to Part 2
• Planners need to understand how urban land markets work to be more effective
• Major challenge is to promote more sustainable cities-less sprawl, more energy efficiency
• Promote spatial structure to enhance economic efficiency
• Planning and infrastructure go hand in hand
• Planners need to develop models of taxation and value capture to finance infrastructure and use these resources to improve mobility, connectivity and competitiveness
• Planners need to “optimize within their local systems so “one size fits all is not effective”