Helen Sause

Editor's Column

Dear Colleagues,

I am writing about something that may seem unrelated to the Real Estate Economics field – health insurance. This topic has almost replaced the economy as the topic on everyone’s mind. Whatever is passed will affect us all.  Therefore, I think we all need to give it critical consideration.  The field of real estate economics does not exist in a vacuum, so let’s not bury our heads in the sand. 

Do your employees have health insurance  and does it include their families?  How will providing coverage affect firms such as  contracting, development,  that you do business with?  Have you informed yourself sufficiently to understand how a universal health plan  will impact your community and your work?   

I believe  the  national  health care system  is at a critical stage.  The disturbing aspect is that all the proposals seem to lack careful thinking and in view of the concerns – real or imaginary – it seems that the country and lawmakers  needs “a time out” to consider how all of the pieces fit together.   Maybe you are saying does this really have anything to do with me and my firm, and development in general?  Or are you thinking more deeply and realizing that a healthy population where people don’t equate a major illness with bankruptcy or death is really really in the interest of all society including businesses and commercial endeavors.  

Availability of health care is a matter of preventative medicine – by having regular check-ups, going to the doctor when one is first ill rather than waiting till the illness is dire then having “someone” pay for the emergency care and resulting  longer recovery period. A seriously ill person’s treatment costs more than preventative medicine both in terms of productivity, exposure of others, and a more intense medical involvement. For these reasons it is important for all of us to address the needs of thousands now without a way to receive medical care until they are gravely ill.

 As for the “death panel” misinformation I cannot imagine how the right to having end of life counseling paid for under the plan could be so distorted.  Our Church has seminars for people of all ages on these matters. Anyone who has lost a loved one without knowing what their wishes were for final disposal of their remains, belongings, cat, donation of organs, etc. would instantly agree that it would have lessened the trauma of losing a beloved one if those directives were in the safe and could be pulled out for guidance.

We, might suggest that  health care should include a provision  in any bill that passes have the proviso that  “all government workers, in any capacity, and the Congress and its staff will have the identical health care plan and social security program as do all other Americans.”

Our families and firms will be impacted by the changes, or lack thereof, in national health care,  so please don’t be offended that I have strayed for focusing on real estate.  The health care of our country will impact all of us, the well being of our children, people we work with, and in the long run, the country.  Since we can’t sustain the present plans we have - let’s be brave and look at all aspects of what would serve everyone well, including Congress, and support the effort to address the basic right to wellness.

’Til next time!                     

Helen Sause
International LAI Editor
helensause@alamedanet.net

 

In Memoriam

Golden Gate Chapter

I'm writing to share sad news.  In case you are not aware of it, Debra Stein, my long-time (15+ years) business partner and President of GCA Strategies, died unexpectedly July 30 of complications from a rare neurological disease.  We will miss her immensely.  Debra was a great friend in addition to her accomplishments as a nationally- recognized land use expert and public affairs professional who counseled some of the largest property owners and developers across the United States.
 
She built GCA Strategies as a leader in building community support and finding political solutions for land use projects.  Debra was the author of four books on the subject, along with numerous articles on affordable housing and sustainable growth.  Because of GCA Strategies' expertise in fighting NIMBYism, she was often called to speak at land use conferences and events nationally.
 
GCA Strategies operations will carry on under the same name, and we will always remember Debra as our co-founder. 
Please join me and Debra's family in a public celebration of her life Wednesday, August 19 at 5pm at the North Light Court at San Francisco's City Hall. In memory of Debra's love of good food, you are invited to bring something to share.  In lieu of flowers, the family requests donations be made in Debra's name to the charity of your choice.

Sincerely,
 
Frank Noto, GCA Strategies

Chapter Corner

Ely Chapter:

The initiation banquet on June 17th proved to be a wonderful evening with 47 new initiates being inducted to the Ely Chapter. Congratulations to Susan Aaron for receiving the Harry Chadick Distinguished Public Service Award and Reuben Hedlund for his receipt of the Daniel H. Burnham Distinguished Service Award.

Barbara Morris, Chapter Administrator

George Washington Chapter:

The Department of Homeland Security, legislated into existence after 9/11 and made up of 14,000 employees from previously disparate agencies, has long sought its own home.  It will now have that place on the 176-acre west campus of St. Elizabeth’s Hospital in the District of Columbia.  At the Chapter’s June luncheon, US General Services Administration officials, Michael McGill and Shapour Ebadi, described the $3.4 billion, 6.1 msf new construction and rehabilitation project, the largest ever undertaken by GSA.

The challenges are many:
 1) the campus houses an ensemble of 52 nationally landmarked Civil War-era buildings originally designed for   humane treatment of the mentally ill;
 2) though near public transit, the campus is not readily accessible from the two nearest Metro stations;
 3) the gated complex needs to be integrated with revitalization efforts in the surrounding community; 
 4) the steep slope at the edge of the campus requires innovative and sensitive architecture.  

Responses include 1) adaptive reuse of the buildings; 2) provision of two new interchanges with local highways to accommodate 70% arrivals by car but also use of shuttles to transit stations so that the parking ratio will be 1 space per 4 employees; 3) expectation of surrounding revitalization by contractors and service providers to DHS; and buildings and parking tucked into the slopes.  The LEED silver project will include the capturing and recycling of storm water runoff and restoration/replacement of all existing infrastructure.  The first building, 1.3 msf for the US Coast Guard, will start construction soon, and the remaining buildings will be restored/built over an 8-10 year period.  More information can be found at www.stelizabethswestcampus.com

Rosalyn Doggett, Scribe

Minnesota Chapter:

The Minnesota Chapter looks forward to hosting the Land Economics Weekend May 13-15, 2010. From touring the new Twins ballpark to exploring revitalized riverfronts to learning about redevelopment in an upscale suburb—we’re lining up tours and panel discussions that will give you an insider’s perspective on the Twin Cities and generate ideas you can apply in your community. Hope you can join us!

Ed. Note:  Please please put this on your brand new 2010 calendar.  This promises to be another terrific LEW and I hope you all will start making plans for visiting this great City next spring.

Orange County Chapter:

The Orange County Lambda Alpha Chapter has had a tradition for the last five years to meet in August for a breakfast Strategic Planning Meeting. This occurs on the third Monday of the month and instead of being a lunch meeting is a breakfast meeting that normally runs from 7:30 AM till about 10:30 in the morning. As part of the process each year, the Orange County Chapter looks back to what we had discussed in the previous planning session, what we proposed to do, and we evaluate our progress, success areas, and areas in need of improvement. A draft agenda is sent out to not only to the Board of Directors, but to the entire Chapter. All members are invited to attend our Strategic Planning meeting to speak up about the direction of our Chapter, our mission, and how we might achieve that in the next year. All Chapter members are requested to provide suggestions and input on the Strategic Planning agenda before the meeting. For this year's meeting, Peter Denniston, one of our Board of Directors, has suggested that we "take a step back and relook at the vision (what do our members want?) and mission (how are we going to give it to them?) of LAI OC.  We should then identify strategies and specific tactics to achieve our vision." Pat Neal, the Orange County Chapter's past President responded to our agenda suggesting: "The Times they are a-changing, that means our Chapter should look at the most pressing concerns for 2010 – 11.  For example, the robbing from cities to cut and paste the State budget will have a disastrous impact on all local services.  We need serious discussions about raising revenues.  Other areas we need to discuss and understand include Redevelopment agencies, how they have contributed to the economic health of communities.  We also need to ask the question why are we not imposing an oil depletion fee.  All other oil producing states do including Alaska."

Looking ahead to our programs for our 2010 Economic Forecast Meeting which will be held on December 7, 2009,  the Orange County Chapter will be hosting a tag team event of two Economics Ph.D.s who have enlightened us in the past. Dr. Al Gobar (Long time Lambda Alpha OC Chapter member and Economics Consultant) will provide his insights into the economy and what to expect in 2010, and Dr. Mira Farka (Economics Professor from Cal State Fullerton) will provide her recent data and paper results on where she sees the economy going in 2010. This is always a very big event and other Lambda Alpha members are welcome to attend, however, we advise an early RSVP to reserve your spot.

Our focus in the Orange County Chapter will continue to be about serving our members by securing speakers who can provide insight into the current markets, the changing financial times we are experiencing and how our members may benefit from this knowledge. By serving our members, we look to continue the growth and strength of the Orange County Chapter.

Steve Figgins, OC Chapter President

Ed. Note: Steve and Orange County Colleagues!  What a smart idea!  You are to be commended for your strategic planning as to how the Chapter can be more intentional in serving your membership, community and Land Economics profession.  Other chapters could benefit from your approach. 

Phoenix Chapter:

Light rail Encourages High Density Mixed Use Zoning, Redevelopment Near Light Rail Stations

Zoning around Phoenix area METRO light rail stations should allow high density mixed use development, encouraging pedestrian-friendly environments and utilizing creative and innovative urban design, according to a recent ASU study.  Land with zoning that prescribes pedestrian environments and allows high density mixed use buildings near light rail stations has had the greatest recent appreciation.  High land appreciation is a sign of high demand and a leading indicator of successful redevelopment.

The research report is authored by Katherine Kittrell, a recent graduate from the ASU School of Geographical Science and Urban Planning.  It was partially funded by the Lambda Alpha International's Land Economics Foundation, a national organization that provides grants for land economics research.  The study uses two decades of commercial vacant land sales data and stratifies these sales before and after the light rail station locations were announced.  Sales examined are within a half-mile radius of each of the 28 METRO light rail stations.  Land appreciation rates are also compared to areas not served by light rail.  The study compares the median of pre-1998 inflation-adjusted sales (before light rail station locations were announced) and the median of post-1998 inflation-adjusted sales.

Proponents of light rail say that it attracts redevelopment and can help cities create focal neighborhoods for commerce and the arts and rejuvenate wilting inner city neighborhoods.  The study allows cities to measure how much more desirable their focal neighborhoods have become without waiting for new development.

An important finding of the study is that new zoning and related services to developers really matter.  Tempe's aggressive response to light rail has added value that shows up in increased land sales prices.  The station with the highest appreciation in the report is Veterans Way and College Avenue in Tempe.  The inflation-adjusted median sales price from 1998-2008 (after station locations were announced) was 1639% higher than that of 1987-1997, before light rail was announced.  Tempe's lowest appreciating station, Priest Road and Washington Street, increased 28%.  The average change for all Tempe stations with sales transactions was 429%.  This compares to a 128% average increase for stations on Central Avenue in Phoenix where zoning and development services have been enhanced for light rail, but less dramatically than in Tempe.

Vacant land near two light rail stations actually decreased in value for the time period studied.  The light rail station serving Sky Harbor Airport, 44th Street and Washington Street, received no new zoning for light rail as of 2008, and land values decreased 5%. 

Mesa's only station at Sycamore Street and Main Street experienced a 12% decline in value.  In contrast, Tempe's Price Road and Apache Boulevard station, located one mile west of Mesa, increased 74%.

At the time of the study, Mesa had not enacted any significant changes to zoning or other development services policies to encourage redevelopment at their light rail station.  Mesa zoning code is being rewritten to leverage light rail investment by rezoning proposed station areas. 

Tempe has set the standard for zoning at METRO stations and now Mesa must exceed this standard to effectively compete for new development.  High density mixed use entitlements and pedestrian environment prescriptions are a requirement to attract redevelopment at light rail stations

Katherine Kittrell, Graduate Student, ASU School of Planning

ED.Note: This is the Report I have been waiting for – for those of you who rode the light rail system this probably is “suspicions confirmed! Once more the notion of attractive public transportation has the ridership to encourage extensions of the system and spreading the wellness of alternatives to the auto. Thank you ASU and Ms. Kittrell!

San Diego Chapter:

Recession, Fiscal Crisis, and…Drought Conditions:  Yet Another Challenge to the Real Estate Industry

This summer’s news has been dominated by the ongoing recession and the State budget battles.  As real estate professionals, we scour the daily media for any news of stimulus and recovery.  Lurking below these dominant headlines are other serious challenges to effective planning and development in our communities.  Over a year ago, California Governor Arnold Schwarzenegger declared a statewide drought, and dwindling water supplies in 2009 have resulted in restrictions on water use throughout Southern California.

The September luncheon of the LAI San Diego chapter will focus on the growing water shortage confronting the San Diego region.  Maureen Stapleton, General Manager of the San Diego County Water Authority will address the 2010 water supply outlook and the Authority’s long-term water diversification strategy.  The Authority’s largest supplier, the Metropolitan Water District (MWD) of Southern California, ordered a 13% cut in water deliveries to the San Diego region effective July 1, 2009 through June 30, 2010.  The MWD cuts result from supply shortages created by regulatory restrictions on deliveries from the Bay-Delta in Northern California, drought, and falling water storage levels statewide.  In turn, the Authority began reducing water deliveries to its 24 local member agencies by 8%, and declared a Level 2 “Drought Alert” condition.  This alert allows member agencies to activate mandatory water use restrictions on residents and businesses.  For example, the City of San Diego has imposed restrictions on landscaping irrigation, vehicle washing, and construction.

Paul Marra, Scribe

Land Economics Foundation (LEF)

LEF Grant Program   

Ron Buss, LEF Vice President

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Save the Date ! ! !

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
Register Today!
 

Future Land Economics Weekends (Subject to Change)

2010
Spring: Minneapolis, Minnesota Chapter, May 13-15, 2010
Fall: New Mexico, Zia Chapter, October 21-23, 2010

2011
Spring: Scotland, June 1-4, 2011
Fall: TBD