LAI KeyNotes: April 2009

Helen Sause

Editor's Column

Dear Colleagues,

Developers tips on surviving tough times – and thriving

The following is based on an interview of Walter H. Shorenstein, the founder of one of the nation’s largest privately owned real estate companies.

Don’t rely on government: We can’t count on government regulators to protect us. Government overseers will never supplant individual responsibility and common sense. “Maybe you should trade credit default swaps if you’ve spent your entire adult life studying derivative contracts. However, if terms like counter party risk, mark to market accounting and capital structure arbitrage aren’t part of your everyday conversation, then don’t risk your future on something you don’t understand”.

Stick with experience : “As my company grew steadily larger and more successful, so-called experts told me to diversify. I wouldn’t. I stuck to what I knew, what I had experience doing”. The most recent lesson in this “truth” is based on the fact that smart people can show extremely bad judgment and make stupid mistakes. It has always been Mr. Shorenstein’s rule to hire people with “street smarts.” This is based on the philosophy that “if you’re chased by a tiger, you don’t need to outrun the tiger, you just need to be faster than the person next to you.” This is borne out by the recognition that you don’t have to be smart to succeed, because there are always dumber people out there.

Take care in using credit is one of his principals. Using leverage is useful and often necessary but one MUST do their homework and understand the risks. It is too easy to underestimate or not understand the power of compound interest. The fact that compound interest can work for you in a good investment, it works against you with lingering debt stuck on a credit card or a mortgage. Warren Buffett says that “borrowed money is the most common way that smart guys go broke.”

Be Prepared :One ought to always be “ready” with a Plan A, also a Plan B and a Plan C. Things can change and one can’t control everything, you should always be prepared for a variety of circumstances. “These are interesting, but not unprecedented financial times. It’s simply time for Plan C and an extra helping of good old-fashioned common sense.”

I had hoped to have a guest editorial following up to John Trauth’s “10 Over Arching Context Recommendations for Managing Through Troubled Times.” That did not work out, but thought that Shorenstein’s reflections an interesting follow up – hope you do too.

Till next time.

Helen Sause
International LAI Editor
helensause@alamedanet.net

In Memoriam

Joseph Egan

Philidelphia Chapter

We are saddened to have to report the passing of one of LAI Philadelphia’s most beloved members, Joseph M. Egan, Jr., today, Friday, April 24th. Joe was not only an instrumental factor in the success of our Chapter but also was a pillar of our business and political communities for decades.

We shall all miss our dear friend Joe deeply and will always remember his strength, optimism, endearing charm and support. We express our deepest condolences to the Egan family. Information regarding services will be sent to all members, as they are made.

link to article about Joseph Egan published on Philly.com

Vancouver Chapter

LAI Vancouver notes with deep regret the death of Shirley Cameron on February 2, 2009. Shirley was married to former chapter president and current board member Ken Cameron. We extend our sincere condolences to Ken and his family.

Chapter Corner

LAI Vice President for Eastern Region and Baltimore Chapter Past President, Ackneil Muldrow, Meets President Barack Obama and Treasury Secretary Timothy Geithner at White House.

Receiving business calls during the dinner hour isn't unusual for Ackneil "Neil" Muldrow but the one he took on Friday night, the 13th of March, was. It was the Deputy Director of Intergovernmental Affairs at the White House calling to invite Muldrow to attend a briefing the following Monday in the East Room with President Obama and Treasury Secretary Geithner. Muldrow's security screening was expedited by his provision of the date of his birth and address of his home.

Left to Right: Congressman Bobby Scott, D-VA; DianeBell-McKoy, CEO, Associated Black Charities;
Congressman Mel Watt, D-NC;Ackneil M. Muldrow, II and Louis Hutt, Managing Director, Bennett, Hutt &Co., LLC..

As a 30-year veteran of commercial lending and former CEO of the Development Credit Fund, Inc., a bank-sponsored financial intermediary, in the Baltimore region, LAI VP Muldrow joined about 100 others from across the country on March 16, 2009 to hear President's announcement about the government's multi-prong approach to Unlock Credit for Small Business Owners. Muldrow said: "It was an honor to be at the White House, to shake the President's hand and to hear his commitment to small businesses to help drive the economic recovery." In particular, Neil was pleased with the Administration's temporary suspension of the Small Business Administration's (SBA's) fee schedule for loans and for its increasing to ninety percent (90%) the loan guarantee rate. He cited these two items will make lenders comfortable, and loans more attractive and accessible to small business borrowers.

LAI's Eastern Region VP enjoyed the opportunity to network with other leaders on improving and increasing small businesses' access to capital. It was "a wonderful opportunity" according to Neil Muldrow. He welcomes questions and discussion by contacting him at ammuldrow2@parkermuldrow.com.

Baltimore members welcomed LAI President and Camiros, Ltd Partner Lester Pollack and his colleague Arista Strungys to the chapter’s program meeting on March 18th.

To a standing room-only crowd of members and guests, Les first provided an overview about the Lambda Alpha International Honorary Land Economics fraternity and the LAI Foundation and described what each does. He talked about the semi-annual LAI Week-Ends that, according to Pollack, provide terrific opportunities for members in the 22 LAI chapters to develop relationships build networks and learn about the host community and local issues. He invited all to attend the upcoming LAI Week-end in Vancouver, British Columbia, Canada in May 2009.

Turning to his professional role and partnership with LAI Baltimore Vice President Rachel Edds, Edds Consulting and David Benn, Principal, Cho, Benn & Holback Architecture, he provided a status of his work with the City of Baltimore to perform a comprehensive evaluation and update of the Baltimore City Zoning Code, which had not occurred since 1971. He began by complimenting the City’s Planning Department and staff that spent one year identifying issues (e.g., mixed use districts) to be addressed. With a fast paced power-point presentation, “Professor” Pollack (who also serves as Adjunct Faculty on the Department of Urban Planning and Policy at the University of Illinois) summarized the eight major proposals for rewriting the Zoning Code. A summary of the key proposals, their guiding visions and preliminary recommendations are available by visiting www.baltimorecity.gov/goernment/planning. Pollack said that a draft of the new Zoning Code would be available for public discussion towards the end of this year.

“Great Time to Buy in Baltimore” was the mantra of April’s LAI-program speaker, Mark Sissman, President, Healthy Neighborhoods.

With passion about his city and its neighborhoods plus a stellar professional background in affordable housing and community revitalization and redevelopment, Mark Sissman has focused his efforts during the past eight years on the “forgotten” but still strong yet undervalued middle-income neighborhoods that have not appreciated. Healthy Neighborhoods (HN) works with foundations and banks and also partners with the Greater Baltimore Board of Realtors and the City. Sissman claims HN is changing the discourse about how neighborhood change themselves. The nonprofit organization operates to increase home values; market the communities; create high standards for property improvement; organize neighborhoods and the leaders; and build homeowners’ assets. It focuses on neighborhood markets and tracks targeted and measureable outcomes.

Annually, neighborhoods compete to become part of HN’s; 15 now are designated as Healthy Neighborhoods even though one quarter of the City’s neighborhoods need this strategic attention and investment. Operating in a counter-intuitive manner to the traditional urban renewal/revitalization process, HN builds from strength and creates demand to respond to the existing supply. They start the home improvement lending in a neighborhood’s best blocks and supplement this activity with community projects that support positive images, such as tree plantings and community festivals. The organization got launched with public money but returned all of it due to bureaucratic requirements that stifled rather than supported investment by homeowners in their homes or purchase by new homebuyers. HN has no income limits and requires no counseling for accessing its preferential rate financing.

The Rolling Stones magazine named Baltimore in 2008 as the best city for musicians and artists. According to a Fall 2008 survey in the Baltimore region and city, done in collaboration with the Greater Baltimore Board of Realtors, forty five percent (45%) of home buyers are single and of these, 1/3 are single women. Baltimore and its healthy neighborhoods are attracting relocatees from New York and Boston; these are people who like to bike and/or walk to work or to the train if commuting to Washington, DC.

Proudly, Healthy Neighborhoods under Sissman’s leadership is adding to the public’s confidence about the future of Baltimore. It has created new strategies and a new language for community development by building a new, smart community development intermediary. Most importantly, it has put middle-income neighborhoods on the City’s community development map. For more information, visit www.healthyneighborhoods.org.

Johns Hopkins University Practitioner Faculty, Roger Staiger III Predicts Continued Decline in Residential Pricing Levels

Since Baltimore Chapter members heard Roger’s gloomy forecast at their annual meeting on November 19, 2008, he returns monthly to provide an update on the residential and commercial real estate market nationally and in Baltimore.

At the March meeting, he indicated that “pricing levels nationally and regionally (D.C./Baltimore) have returned to mid-2003 levels. The pricing changes remain the worst in recorded history and exhibit no upward pressures. The prediction is prices will continue to worsen and fall through 2010 with the bottom occurring in the 1st quarter 2011.” He further added that I most areas, it is more efficient to invest in condominiums than Single Family Detached homes. The sole ray of good news at the April 15th meeting during his update is “things are getting bad at a lesser rate.” He foresees no price increase/escalation in the residential market until 2014.

The May and june program lunch meeting of the LAI-Baltimore chapter will be held at 12:00 noon in the Johns Hopkins University’s Edward St. John Conference Room located on the 7th floor of One Charles Center. The speaker at the june 17 meeting is F. Barton 'bart' Harvey, III, he will discuss “Social Capital in Baltimore.” To attend, please contast judybushong@yahoo.com.

One Charles Center is the first commercial building in Baltimore designed by architect, Ludwig Mies van der Rohe. Information about One Charles Center is included in The Living City-- Baltimore’s Charles Center and Inner Harbor Development. Copies of this book published in 2002 by the Maryland Historical Society with photographs by Marion E. Warren & text by Michael P. McCarthy will be given to LAI members attending the May 15th meeting. The books are being donated by the Baltimore Community Foundation as a token of thanks to members of the LAI-Baltimore Chapter for their civic leaders.

Spring is upon us in Chicago . We are all getting the 'itch' for warmer weather, making no 'little plans', travelling and a year full of Burnham celebrations. There is much talk about the upcoming Vancouver trip. All who are planning to attend are looking forward to a great weekend.

The Ely Charter has had so much support for the upcoming Burnham celebrations in Chicago . The Chapter Board would like to take an opportunity in advance to thank all the volunteers on the many projects for the upcoming book release of 'The Plan @ 100 : 15 Views of Burnham's Legacy for a New Century' as well as the Fall 2009 Land Economics Weekend. Celebratory events will begin this summer.

A local redevelopment project, the Green Exchange, was featured during the February luncheon. 120 of our members and their guests enjoyed learning additional details about the project. It was exciting to learn that a few of our members are on the 'team' based on their involvement with the construction, planning, landscape design or tenancy at the building. As well, 14 students of the John Marshall Law School were inducted to the Ely Chapter.

In celebration of the centennial of Daniel Burnham’s Plan of Chicago, the Ely Chapter has published The Plan of Chicago @ 100: 15 Views of Burnham’s Legacy for a New Century. The 200 page hardcover book includes 15 essays from LAI members about the influences on the plan, how the plan has impacted today’s Chicago and lessons learned for future city planning. Eleven essays were written by members of the Ely Chapter, with four others written by LAI members from around the country.

The book includes digitally-rescanned Jules Guerin drawings from the 1909 Plan, historic photos, maps, before and after aerials of contemporary downtown Chicago, recent photos by student photographers relating to the Plan and its impact, as well as suggestions for further reading.

The book retails for $19.95, plus tax, shipping and handling. The book can be ordered through the Ely Chapter web site, http://www.ely-chicago.org/preorder.doc. For information about quantity discounts, please contact Chapter Administrator Barbara Morris at ely-chicago@lai.org. The Chapter is grateful for the support of the Land Economics Foundation, whose sustained support made the book possible.

After nearly 50 years since Dulles International Airport’s 1962 opening, construction of the Metro Silver Line to the airport started in March 2009. The first phase, that is. It is expected to be completed in 2013 and will terminate at Reston, VA. The second phase to Dulles may be completed in 2016.

At GW’s very well attended February Meeting, chapter member James Van Zee, Deputy Director of the Metropolitan Washington Airports Authority (MWAA) Dulles Corridor Metrorail Project (www.dullesmetro.com ) gave an update on the planning for this long awaited transit improvement. The first phase will have four aerial stations built in the median of the Dulles Toll Road and connected to terra firma by covered pedestrian walkways to entry pavilions on each side of the highway. Actual transit oriented development along each side of the stations and connections to stations via non-auto means will be arrived at through Fairfax County planning and zoning processes. The County does appear to be making an effort to minimize parking at stations (as of now, three stations will have only kiss and ride lots, no commuter lots) so as to devote space at stations to mixed use development. Funding for the project is from the Airports Authority, Federal government, Fairfax County special taxing districts and Commonwealth of Virginia bonds and direct funding.

At the March luncheon meeting, chapter members Thomas Luebke, Secretary of the US Commission of Fine Arts, and William Dowd, DIRECTOR OF Plan and Project Implementation for the National Capital Planning Commission, presented The Framework Plan for Reimagining Washington’s Monumental Core. The plan is intended to transform the federal precincts around the National Mall into exciting destinations and improve the physical and visual connections among the city, National Mall and waterfront. The plan may be viewed at www.ncpc.gov

Rose Doggett, George Washington Chapter

Origins of the Financial Crisis
Prepared for :Lambda Alpha International
Presented by:David M. Wright Group Vice President,
Banking Supervision and Regulation,Federal Reserve Bank of San Francisco

With the financial markets broken and the economy in crisis, the Federal Reserve has already taken bold steps to implement aggressive, creative, and substantial monetary policies, but there is much more to be done. To give an insider's perspective into the origins of the current economic crisis, lessons learned, and what we can expect in the future, the Golden Gate Chapter’s February 10th luncheon featured David M. Wright, Group Vice President and Deputy, Division of Banking Supervision and Regulation, of the Federal Reserve Bank of San Francisco. Wright oversees the Risk Monitoring and Analysis Group, which provides a wide range of support for the Reserve Bank's supervision function including risk coordination, economic capital analysis, surveillance, applications and enforcement.

In his talk before about 60 Chapter members and guests, Wright traced the confluence of factors that led to the financial meltdown, including lax lending standards coupled with the movement of credit risks outside of the banking sector through creation of derivatives and other unregulated debt instruments (for presentation slides go here). These conditions evolved over several years, but the decline in home values that began in 2005 revealed structural flaws that spread from the home mortgage sector and eventually put the national and international financial systems at risk. A striking graphic illustrated the national distribution of subprime mortgages, showing subprime mortgages represented between 30% and 51% of originations in California’s inland areas. These same areas have suffered the largest home price declines between 2005 and 2008.

Wright outlined the Treasury Secretary’s plan to restore stability to the banking system that had been announced the day before his talk. These issues, and the success of efforts to restore liquidity and confidence in the banking system, continue to be top of mind for Golden Gate members.

Denise Conley, Chapter scribe

Guest Speaker:
Mr. Simon Quin, Chief Executive, the Association of Town Centre Management

Background
The Association of Town Centre Management is Europe’s largest membership organisation dedicated to promoting the vitality and viability of town and city centres. As footfall slumps, retail vacancies are soaring and investment ceases, and town and city centres are facing major challenges to be considered now in advance the recovery from recession.

Mr. Quin said that the current recession had seen a return to the concern expressed in the early 1990s about town centres becoming ghost towns as retailers cut back on their operations or, worse, were driven into receivership. This prompted a change of approach towards the concept of Town Centre Management, bringing together the respective resources of local government and the private sector to stimulate town centre revivals.

Initially the impact of Town Centre Management was little more than cosmetic, both retailers and developers being too remote from the process. The key change came with the introduction of PPG6, which opened the way to better, more effective town centre planning and management. (PPG6, through a sequential test, gave priority to the expansion of town centres at the expense of out-of-town developments.)

While post PPG6 there has been a renaissance in town and city centres, the principal criticism has been that town centres have now begun to look too alike (“Ghosts to Clones”), with national chains dominating the high streets and with too little exposure to locally owned retailers. Mr. Quin said that the reality was that consumers did want the familiarity of the national chains and there was insufficient demand to support more than a limited number of locally-based retailers.

Reducing the “sameness” of town centres and encouraging a more distinctive look for high streets was the challenge for the future, to create individual “brands”. A lead could be taken from work done in downtown Washington DC, not historically a major retail destination but more residential-oriented. With the support of the US equivalent of the Association of Town Centre Management a programme was instituted to bring in shops and customers to the area as a destination worth visiting. Sampling of visitors has shown that area had moved up in popular esteem from “An experience worth having” to “A remarkable experience”.

Mr. Quin suggested that creating such a judicious mix of residential and retail in downtown areas should be a good model for the future for the UK, given the problems being faced by retailers in the current straitened times. There are currently 135,000 vacant shops in the UK, 15% of the totality in the larger towns and cities and as much as 25 to 30% in smaller locations. In consequence just about all major developments in the planning stage are now on ‘hold’ pending a return to better times in retailing.

However, the future should not be about simply replicating more of the same by way of the shopping experience. Rather, the advent of the recession should be seen as a great opportunity to get away from the now prosaic and to create “remarkable” shopping experiences, Washington DC-style.

The basis would be to obtain the right mix between residential and retail, capitalising at least in part on revitalising town centre living at the expense of the suburbs and encouraging greater use of public transport instead of cars. The streets would be purposely friendly, some as though gardens, others perhaps covered.

In the residential/retail mix the greater residential content might mean somewhat fewer and possibly smaller outlets, this smaller scale opening the way to the return of local independent retailers, including specialist, even “quirky” shops. This could also support the need for more food stores.

There could be greater flexibility in shop opening hours to reflect disparate lifestyle issues. For example, younger residents will be likely looking for shops, restaurants/cafés and entertainment centres available throughout most of the evening, such that the hours operated by some outlets might have a distinct bias towards later opening and closing hours.

Developing new style downtowns will take time – perhaps 15 years - but will be much aided by the creation of the National Skills Academy for Retail. While it remains uncertain how far people would be willing to travel to a successful new local downtown, the likelihood is that it would be a magnet for outside shoppers.

Among the wider social issues to be considered is the changing population mix, with not only an increasingly percentage of the elderly but also a growing immigrant population. The new style downtowns have to be able to accommodate such differing lifestyle needs. For example, Muslim youths, teetotal, do not wish to have to share evening social space with drunken native teenagers.

Mr. Quin stressed that while he is optimistic about new downtowns, the initial process could be painful for developers, property owners and retailers alike. In June next year there is to be in London a World Congress on World Centres and Downtowns with widespread interest already and a prospective attendance of between 800 and 1,000 people.

In the Q & A session that followed Mr. Quin’s presentation he offered the following observations:

Los Angeles Chapter:

LAI Los Angeles Chapter Report, April 2009
The slate of Officers for the Los Angeles Chapter 2009 are:
President Millard Lee, AIA
First Vice President Paige Serden
Co-Vice Pres. - Programs Elizabeth Watson
Co-Vice Pres. - Programs Michael S. Goodman
Vice Pres.- Membership Kathline J. King
Secretary Paul Connolly, AICP
Treasurer Barry Baker
Historian-Webmaster Maurice Kurtz
Scribe Tim Kawahara
Immediate Past President Marsha V. Rood

Program Luncheons:

January 21, 2009, our chapter continued the annual tradition of hearing
Jack Kyser present his “Annual Economic Forecast – 2009” for the Southern California
area at the California Club. Mr. Kyser, a member of our Los Angeles Chapter and the
Chief Economist for the Los Angeles County Economic Development Corporation
discussed the status of housing construction, port activity, film production, government,
downtown and other aspects and trends of our economy. This year, his forecast was
eagerly awaited because members were hoping for better news and trends for the
coming year. This is always a very popular luncheon event for our chapter.

February 17, 2009, the Honorable Michael Dukakis, former Governor of
Massachusetts, and the Democratic Presidential Candidate in 1988, discussed “The
Future of High Speed Rail” and the bright future for high speed passenger service in the
US during this new era for major infrastructure projects. This event was particularly
good timing, because President Obama signed the new Economic Stimulus bill that
same day, which included funds for High Speed Rail. The event was held at the
California Club, in Downtown Los Angeles. Mr. Dukakis, is a professor of Public Policy
at UCLA, during the winter months.

April 15, 2009, Professor Donald Shoup, FAICP, from the UCLA Dept.
of Urban Planning, discussed “Graduated Density Zoning to Encourage Land Assembly
for Infill Redevelopment” at the California Club in Downtown Los Angeles. The event
was also approved by AICP for CM Credit.

May 20, 2009, will be the Chapter’s next program luncheon at the
California Club, when Rick Auerbach, the Tax Assessor for Los Angeles County will
discuss “The Economy and It’s Effect on the Assessor’s Office”. Mr. Auerbach was reelected for his third term in 2006, with a 77% vote. The focus of his administration has
been to combine the latest technology and extensive Internet website use with equal
emphasis on traditional public service for 10 million county residents. His agency is the
largest property assessment agency in the nation, with over 2.3 million real estate
parcels, 1,500 employees and a budget of more that $157 million.

Coming in June (Invited). Gilbert Ivey, CAO, Metropolitan Water District, will
discuss “Pending Water Issues That Affect Los Angeles and Orange Counties”. This is
being planned for both the Los Angeles and Orange County chapters (to be confirmed).

2009 New Members Initiation Banquet:
The Los Angeles Chapter inducted nine (9) new members in a New Member Initiation
Banquet held, Wednesday, March 25, 2009 at the Executive Dining Room, UCLA
Anderson School of Management.

Keynote Speaker for the evening was The Hon. Phil Angelides, Former California State
Treasurer, and 2006 nominee for Governor of California.
The topic was "Building America’s New Clean Energy Economy". Mr. Angelides, known
as an effective public leader and as a successful businessman, is a Principal of Canyon
Capital Realty Advisors LLC and is presently Chairman of the Apollo Alliance, and
discussed their role in pursuit of the mission to communicate and advocate for clean
energy and create smart jobs.

The New Apollo Program is a comprehensive economic investment strategy to build
America’s 21st century clean energy economy and dramatically cut energy bills for
families and businesses. It will generate and invest $500 billion over the next ten years
and create more than five million high quality green-collar jobs. It will accelerate the
development of the nation’s vast clean energy resources and move us toward energy
security, climate stability, and economic prosperity. And it will transform America into the
global leader of the new green economy.

The new members initiated into the LA Chapter within the traditional Lambda Alpha
ceremony were:

Tevis Barnes
Housing Administrator, City of Culver City, Community Development Department,
Housing
Hal Bastian
SVP and Director of Economic Development, Downtown Center Business Improvement
District,
Robert J. Fazio
Consultant, Robert Fazio Consulting
Douglas M Ford
Vice President, Unitex Management Corporation
Lambert Geissinger AIA
Historical Preservation Architect
Scott Ginsburg
Sr. Director of Development, Combined Properties, Inc.
Craig Johnson
Building Official, Culver City Building Safety Division
Debi Kroman
Vice President Commercial Real Estate Title Services, North American Title Co.
Milton Swimmer
Principal, Swimmer Development LLC
Tevis Barnes
Housing Administrator, City of Culver City, Community Development Department,
Housing
Hal Bastian
SVP and Director of Economic Development, Downtown Center Business Improvement
District,
Robert J. Fazio
Consultant, Robert Fazio Consulting
Douglas M Ford
Vice President, Unitex Management Corporation
Lambert Geissinger AIA
Historical Preservation Architect
Scott Ginsburg
Sr. Director of Development, Combined Properties, Inc.
Craig Johnson
Building Official, Culver City Building Safety Division
Debi Kroman
Vice President Commercial Real Estate Title Services, North American Title Co.
Milton Swimmer
Principal, Swimmer Development LLC

San Diego Chapter:

On April 7, LAI San Diego members enjoyed a presentation on “Why (Other) Developers Go to Jail”. Interestingly, the luncheon topic attracted an unusually large turnout. Attorney Bob Rose from Sheppard Mullin Richter Hampton identified some of the perils of doing business in the electronic age, including several harrowing case studies of unintended consequences. LAI members were alternately somber and amused.

Next up, the May luncheon brings a visit from San Diego City Council President Ben Hueso. Representing District 8 (adjacent to Downtown as well as the South Bay communities along the border), Council President Hueso also serves on the California Coastal Commission and plans to run for State Assembly in 2010. The LAI membership is particularly interested in his views on the housing foreclosure crisis and the pending water emergency in San Diego.

Mr. Glen Murray, President of the Canadian Urban Institute, was the featured speaker at LAI Vancouver’s dinner meeting on March 18. Mr. Murray drew upon his experience as the former Mayor of Winnipeg and the Chair of Canada’s National Roundtable on the Environment and Economy to address the theme of ‘People, Place and Power.’ Mr. Murray explored the ecological, economic and demographic drivers that are challenging Canada’s cities like never before.

The prospects for Canada’s cities to thrive during and after this paradigm shift will depend on political leadership at both municipal and provincial levels. By way of example, Mr. Murray sketched out how Winnipeg’s redevelopment incentives for the Exchange District and relocation of Red River College to the city centre facilitated a cluster of computer animation studios to establish a critical mass of talent in this field. The synergy of affordable space with attractive urban design created an atmosphere where creative urban enterprise could thrive. When combined with provincially led urban innovation exemplified by locating Manitoba Hydro’s headquarters in an ultra-energy efficient new downtown office tower, Winnipeg’s approach to redevelopment suggests how leadership can make an important difference.

Being optimistic about urban futures might seem contrarian at present, but Mr. Murray has led Winnipeg to important innovations by breaking with the conventional wisdom. He insisted that the economic downturn we are now contending with offers a valuable opportunity to create a better urban future – if we are prepared to embrace new relationships between the environment, the economy and society.

LEF is a not-for-profit charitable foundation organized to administer an investment fund which provides grants for research projects related to land economics. Created by Lambda Alpha International in 1965, LEF was provided with seed money to establish an Investment Fund. Income from the Investment Fund
is to be granted to fund qualifying research projects.

The LEF Board of Directors reviews and recommends qualifying projects for approval by the Board of Trustees at the semi-annual Land Economics Weekend. Current members of the Board of Directors are as follows:

• President: Steven R.Gragg, MA I, FR ICS, Phoenix Chapter
steven.gragg@cushwake.com

• Vice President: Ronald L. Buss, MA I, Los Angeles Chapter
bussshelger@pacbell.net

• Treasurer: Frank A. Clayton, Ph.D., Simcoe-Toronto Chapter
frank.clayton@altusgroup.com

• Secretary: Jack Swenson, Ely-Chicago Chapter
jswenson@camiros.com

The Board of Trustees consists of the LEF Board of Directors and the President of each of the Lambda Alpha International chapters.

What are the Financial Resources of LEF?
As at the end of 2008, the LAI Investment Fund had net assets of $276,324. The funds are largely invested in two mutual fund accounts managed by Vanguard. The Board of Directors has established that it will provide grants in any single year equal to about 5% of the assets in the investment Fund for a total of about $13,000 in 2009

Contributions from the LAI Membership is the Largest Source of Income

Total income for the Investment Fund in 2008 was $38,269 consisting of:

• $29,118 in contributions from LAI members; and

• $9,131 in investment income.

Member contributions are generated through the voluntary check-off of a $25 contribution (now $50) box on the annual membership fees invoice. Today, all the contributions come from members of chapters in the United States.

What Projects Were Funded by LEF in 2008?

LEF funded $15,000 in grants in 2008.

One new project was funded. A $5,000 contribution was authorized to assist Katherine Kittrell undertake research into the land use and land value impacts surrounding stations of the new light rail transit line that opened in Phoenix late in 2008.

There was also one project carried over from a previous year. A $10,000 contribution to the Burnham Centennial Celebration in Chicago to allow LAI to participate with other major real estate
organizations in 2009 to recognize the important contribution made by Daniel Burnham is the planning of Chicago.

How LAI Members can Help to Enhance the Profile of LAI

LAI members play important roles:

• As providers of ongoing funding to our Investment Fund
through the $50 voluntary donation option on the membership fees renewal form each year.

• As motivators and sponsors of relevant land economics research applications

Members are urged to log on to the LAI web page (www.lai. org) and access the General Purpose section of LEF and the Application for Proposal to get details on the grant application process. Then by keeping their eyes open and minds focused, members can identify research projects and urge proponents to submit an application for a contribution (generally $5,000 with a maximum of $10,000).

• As sources of additional funding for LAI research projects –either personally or through marketing to individuals and organizations of financial substance

We are always on the lookout for additional funding sources. As a not-for-tax foundation we can provide U.S. donors of research funds with an income tax receipt. Contact Ron Buss for more information in this regard.

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Save the Date ! ! !

Vancouver, Canada, Spring Land Economics Weekend
May 7- 9, 2009
Terminal City Tower Hotel
837 West Hastings Street
Vancouver , B. C. Canada
www.tctowerhotel.com

Chicago, Fall Land Economics Weekend
October 22-25, 2009
Celebrating the Centennial of the Burnham Plan
The Drake Hotel, Chicago, IL
Hotel Reservations Rates:
*$255.00 US + taxes Single/Double
Phone: 1-800-55-Drake
More information coming soon!

Future Land Economics Weekends (Subject to Change)

2009
Spring: Vancouver, Canada, Vancouver Chapter
Fall: Chicago, Ely Chapter

New Members

Memphis Chapter
Jeremy B. Chism, CCIM, CB Richard Ellis
Stuart Cohen, Cohen Realty Investments
Darrell T. Cobbins, Universal Commercial Real Estate, LLC
Joseph W. Jarrett, SIOR, CCIM, Ford Jarratt Realty & Development Company
George M. Klepper, III, Region’s Bank
Justin D. Lubin, CPM, Makowsky Ringel Greenberg, LLC

Vancouver Chapter
Jane Bird, Canada Line Rapid Transit Inc.
Bruno Freschi, Bruno Freschi Consultants
Peter Mitchell, MKT/Arkle Development Management Inc.
David McLellan, City of Vancouver
Norman Shearing, Parklane Homes