I heard an interesting proposal last week from architect-planner Terry Shook, who keeps a sharp eye on what’s happening to properties along the Lynx Blue Line. It’s a different way to look at the property-value increase along the line — who benefits and who should benefit, and whether the city is letting developers get off too easy on the design of TOD projects.
The way it works now: The city, hoping to spur transit-oriented development (TOD) projects along the rail corridor, generally has taken the initiative to rezone properties to the TOD zoning. This creates an incentive to developers, which is why the city has done it.
But, as Shook points out, it also raises the value of the property, even if no developer has bought it yet. So in many cases it’s the original property owners, not the developer seeking to do TOD, who benefits from the new, more intense zoning.
Why not, he suggests, hold off on giving out the TOD zoning until a development proposal comes in? That way the city has some leverage to hold over a developer whose proposal might not, otherwise, have great design? He offers in evidence the very tall project going up on Tremont at Camden Road: Its street-front design isn’t very good, although it meets the TOD zoning requirements. If a property is already rezoned for TOD, the planners don’t have as much leverage as they might if the owner was having to win a rezoning.
Here’s some quick armchair analysis: The Shook idea would mean developers have to fight for a rezoning, which could well be a disincentive. Yet it would also mean the developers wouldn’t be paying as much for the land, assuming that TOD-zoned land costs more to buy than industrial- or business- or other-zoned land. So while one incentive would be removed, there’d be another in its place. And if developers aren’t paying so much for the land, they’d be more amenable to including affordable units in their projects — especially if the city planners were pushing them to do so, in order to win a TOD rezoning.
I’m not saying Shook’s idea is the solution to all problems. I’m saying it’s an interesting view to ponder. Any developers or planners or property owners have thoughts, either pro or con?