Monday, October 14, 2013

3007

Hello Everyone:

A really big thank you for all your support of this blog.  I can't believe that we hit 3007 page views since January.  You all are so amazing.  I'm absolutely floored with gratitude.  To celebrate this milestone, I'd like to call your attention to an organization worthy of your support, Road Recovery (http://www.roadrecovery.org).  This is an organization dedicated to helping young people battle addictions and other adversities.  This year, they're celebrating their fifteenth anniversary.  Road Recovery first came to my attention earlier this year in a Facebook post and again over the weekend. Please go to this website and check it out.  Share it on as many social media sites as you can.  Spread the word.

Thanks and I'll check back with you later.

Wednesday, October 9, 2013

It's Not Suburbia's Faulty

http://www.streets.mn/2013/09/09/its-not-the-suburbs-its-mid-late-20th-century-urban-design-and-architecture

Hello Everyone:

I'm slowly plowing through the backlog of articles in my dropbox folder with some progress.  Of course, as I get through one thing, two more pop up.  At least I won't run out of topics for a while. Speaking of which, we're back to the suburbs.  Did you think I was going to say Detroit?

American urban dwellers, such as yours truly, love to criticize "the suburbs."  In his article for his article posted on http://www.streets.mn, "It's not the suburbs, It's mid-late 20th century urban design, planning, engineering, and architecture," Professor David Levinson of the Civil Engineering Department at the University of Minnesota, asks us is it really fair to pick on suburbia?  After all they're just a place like any other place in the world.  Let me be up front with my own suburban biases.  I find the suburbs too isolating and lacking the amenities I'm accustomed to in the city.  I often think that the people living in the suburbs live in this bubble, divorced from the real world.  That's me.  However, Prof. Levinson writes, "...so long as there is housing in the suburbs, and transportation to enable people to move, someone will live in the suburbs..."  True enough anywhere.

Some of the nit-picking is politics.  Suburban politics comes with the process of self-selection, people want to live with like-minded people.  The alternative is living with a more diverse group of individuals, something Jane Jacobs whole heartedly endorses, something Prof. Levinson argues can lead to conflict.  Prof. Levinson suggests that some of the potential conflict maybe be due to travel behavior.  He further infers that this travel is actually due to suburban land use and network patterns, which elaborates on in his essay, demographics and socioeconomics which cannot be changed or changed that easily.  We can conclude that, as the title of Prof. Levinson's essay suggests, the source of suburban criticism is the architecture, planning, and engineering.  Let's elaborate on this.

On the planning side, land densities have to shoulder some of the burden of blame.  Although blaming land densities for the state of suburbia seems unfair since every place starts as a blank canvas and adds development over time, some more than others.  On the other hand, some of the burden of blame is warranted because certain subdivisions make do intense development that is both technically difficult and possibly illegal under current local zoning law.  However, urban population densities have dropped due to the hollowing out of individual houses as the average household size has shrunk and the demolition of housing housing, replacing them with lower density development with more surface parking.

Litchfield Way
Hampstead Garden Suburb
en.wkipedia.org
Another issue with suburbia is street patterns.  Streets patterns are not something that one associates with the suburbs, its more associated with an era.  When streets were built in a particular era, spacings, connectivity, widths, curvatures, and so forth from that time period were incorporated into the layout. Let's consider older towns, county seats for suburban counties.  In the nineteenth century, street grids often had road, river, and rail connection to large cities.  They were not part of the daily metropolitan system, since people didn't commute back and forth so frequently.  While the residents of these places were not as affected by the large cities, they were not suburbs.  These towns had some clarity of design.  If we turn our attention to the pre-World War II suburban development, in particular the ring suburbs, we can also see a coherent design.  Prof. Levinson postulates that if suburbs looked more like this Hampstead Garden Suburb outside of London, then the complaints would decrease.

Prof. David Levinson states the problem quite succinctly, "The problem with suburbs isn't that they are not the city.  The problems with the suburbs is the same problem as the city, they had 5 or 6 decades of urban design..."  Urban growth from the same period of time were subject to most mediocre architecture replacement of buildings with parking lots and hollowing out.  The problem is not with the city, per se, the problem, according to Prof. Levinson, is terrible design (planning and engineering) which was implemented as policy while functioning in a market that had no taste.  Yours truly concurs to a point, taste is subjective.  Even worse in suburbia because for much of those sixty or so years of urban design there was only the same number of years of development, while in the city, the older street grid remained by in large intact

Further, the problem, according to Prof. Levinson, is not the assimilated suburbs built before the big cities incorporated them into the daily metropolitan system.  It's certainly not the older suburbs within the core cities or the first stilled hewing to the grid.  It's the grid design from a particular era that's at issue which lengthens distances between places so as to offer larger parcels of land.  In order to reverse decades of bad design, planning and engineering, suburbanites need a reason to spend more time of their property, get to know their neighbors, and promote land use rules in order to enable new things.  Technology, policy, land use, and transportation network which reduce the need for a car and car storage will lead the way.  Commuter travel has peaked, urban areas are slowly gaining population, thus car ownership is down as new housing is being built in urban areas.  It appears that development is going up rather than out.  In short, according to Prof. Levinson, the signs are there for reversing the trend of bad design.  Great, one decade down, five more to go.

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Tuesday, October 8, 2013

The Ten Cities Leading The Way to Sustainability

http://www.fastcompany.com

Hello Everyone:

Sustainability is a one of the big words in the contemporary lexicon.  It is used to characterize sources of building material, food, clothing, and so forth.  What about urban sustainability?  Can urban planners and architects create urban lifestyles that does not deplete or permanently natural resources?  Are there cities around the world that are leading the way?  Yes, as matter of fact there are ten cities identified by http://www.fastcoexist.com/1682483/110-cities-show-that-facing-up-to-climate-change-has-more-benefits-than-dangers that are leading the way in creating cities that are becoming models for sustainability and, eventually, increasing humanity's chances for survival in face of declining resources. In mid-September, Siemens and the Cities Climate Leadership Group (C40)  (http://www.c40cities.org/) announce the ten winners of the first City Climate Leadership Award.  This award is presented cities around the world that have demonstrated "excellence in urban sustainability and leadership in the fight against climate change."  Ariel Schwartz, a Senior Editor for Co.Exist reveals the winners of the winners, of the what is hoped to be, an annual award in "The 10 Cities That Are Leading The Way In Urban Sustainability."  The winners are:


Bogota Rapid Transit
Bogota, Colombia
ecoefficiency.bligoo.com
 Bogota: Urban Transportation

In the category of Urban Transportation, the capital city of Colombia took the top prize for its ultra-efficient bus and taxi fleet.  Are you paying attention Metropolitan Transit Authority in Los Angeles?  The city's Bus Rapid Transit system, launched in 2000 ferries over 70% of the city's 7.1 million residents.  Goals for the future include replacing the diesel fleet with a hybrid and electric buses, electrifying the taxi fleet, and adding a new metro line.





Melbourne, Australia
travel.yahoo.com
Melbourne: Energy Efficient Built Environment

The city of Melbourne, Australia won top honors in the Energy Efficient Built Environment category for a sustainable buildings program which awards building managers and owners financing for energy and water retrofits.   (http://cityclimateleadershipawards.com/melbourne-sustainable-buildings-programs)



Copenhagen, Denmark
fanpop.com
Copenhagen: Carbon Measurements and Planning

Copenhagen, Denmark was the winner of the Carbon Measurement and Planning award for its ambitious goal to make the city completely carbon neutral by deploying its 2025 Climate Plan.  If emissions are successfully cut to 400,000, the Danish capital would be the first carbon neutral city in the world.







Mexico City, Mexico
en.wikipedia.org
Mexico City: Air Quality

Mexico City, or for that matter Beijing, is usually not the first place you think of when you talk about good air quality.  However, unlike the Chinese capital, Mexico City took steps to improve the air quality making it the winner in the category of Air Quality.  The Mexican capital uses ProAire, a program that has dramatically cut CO2 emissions and air pollution over the twenty years from automobile emissions reductions to containment of urban sprawl.  The proof is in the plan that can significantly improver air quality.  Beijing, did you see this?



Munich, Germany
greenwichmeantime.com
Munich: Green Energy

Munich, Germany was the recipient of the Green Energy award for its plan to power the capital city of Bavaria using totally renewable sources by 2025.  At present, the city about 40% of the way there.  In 2015, wind power projects will come online, causing this number to jump to 80%.







Rio De Janeiro, Brasil
idri.com
Rio De Janeiro: Sustainable Communities

The city of samba, soccer players, and supermodels put in place The Morar Carioca Program (an urban revitalization program) which propelled this glamourous locale to the top of the Sustainable Communities Category.  The goal of the program is to "formalize" and re-urbanize all of Rio's favelas by 2020, using a combination of better landscaping, infrastructure, educational tools, much more designed to help with the health and wellness for the 20% of Rio's population that live in there. (http://wwwcidadeolimpica.com/br/en/projetos/morar-carioca-2/)



New York City, New York
commons.wikipedia.org
New York: Adaptation and Resilience

If anything good came out of Hurricane Sandy is that New York City emerged from the devastation stronger and more resilient as result of its post-Sandy action plan-A Stronger More Resilient New York.  The plan consists of 250 ambitious infrastructure strengthening initiatives in numerous categories such as: transportation, telecommunications, parks, insurance, and buildings.  Hey, New Yorkers are tougher than some hurricane.  (http://www.myc.gove/html/sirr/html/report/report.shtml)



San Francisco, California
storify.com
San Francisco: Waste Management 

The City by the Bay took top honors in the Waste Management category for its extremely effective eleven-year old zero waste program, which diverts 80% of trash from landfills.  I wonder where it goes?  By 2020, San Francisco hopes to make this 100%-a number, according to Ariel Schwartz, is totally doable.



Singapore
en.wikipedia.org
Singapore: Intelligent City Infrastructure

The island nation is the recipient of the Intelligent City Infrastructure award, given for its intelligent Transportation System.  I want to really crack wise here but I won't, in case Christopher Hawthorne of the Los Angeles Times or Nicolas Ouroussoff of the New York Times  is following this blog and think I'm not a serious writer.  Anyway, the Intelligent Transportation System, consists of a variety of smart transportation initiative, like real-time traffic information (quite handy in Los Angeles) from GPS-equipped taxis and electronic road toll collections.  The result is Singapore has lower traffic congestion than most cities because fewer people are getting lost.  O.K. I couldn't hold back. (http://en.wikipedia.org/wiki/Electronic_Road_Pricing)



The Ginza at nightTōkyō, Japan
worldofstock.com
Tōkyō: Finance and Economic Development

The capital of Japan won the Finance and Economic Development award for launching the world's first cap and trade program in 2010.  At present, the program includes 1,100 participating facilities which have cut emissions by 13% in the city and prevented more than 7 million tons of CO2 from being released.









All together, the best qualities of these featured cities: effective road management, cap and trade, sustainable energy, great public transportation, zero waste management and so forty, make up an urbanist's dream city.  While the dream is not yet a reality, the first step is learning from these cities and adapting the solutions to the specific locale.  Now if only anyone would pay attention.

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Monday, October 7, 2013

Fresh Eyes on the Street?

untappedcities.com/2013/09/04/new-york-city-housing-authority-will-lease-out-open-space-in-public-housing-to-developers/

Hello Everyone:

I've noticed two things lately, first we're only 175 page views away from 3000 and second, I've been experiencing an embarrassment of riches in terms of what to write about.  On the former, we're getting closer so let's keep it up, latter, I'm trying to keep up with all the material I have, so please bear with me.  On that note, let's go to today's topic, the latest move by the New York City Housing Authority.

Queensbridge Housing Projects
en.wikipedia.org
On September 4, 2013, Michelle Young of Untapped Cities reported how the New York City Housing Authority plans to to lease out open space in public housing projects for revenue generating purposes.  The concept is to make use of the underutilized and un-programmed spaces that remain in these projects.  Public housing projects are a manifestation of architect and planner Le Corbusier's theory of "Towers in the Park."  This idea guided the design and planning of housing projects during the mid-twentieth century.  They were envisioned as a Utopian solution to the tenements in industrialized of the period.  However, they failed to live up to their promised, themselves becoming euphemisms for dirty and cramped housing.  Jane Jacobs campaigned against them because of their tendency to create super blocks.  Without enough "eyes on the street" and local businesses, anything resembling self-policing by the residents could not provide a sense of safety.  Like today, the open spaces in the housing projects are essentially blank canvases.  They're seldom used and remain this through today.  However, there are places, such as Queensbridge Housing Projects in Queens that have made an effort to change this situation while provide a source of income for the residents.

Alfred E. Smith Housing Project
en.wikipedia.org

At the opposite end of the spectrum is the Alfred E. Smith Houses, part of NYCHA's plan to lease out similar spaces in eight Manhattan housing projects to real estate developers.  This begs the question, what does this mean?  In a recent issue of Next City's online newsletter (http://www.nextcity.org), the "Forefront" took a look at the implications of the plan.  The plan was announced in February 2013 and is anticipated to generate $32 million in much needed revenue as the NYCHA is facing a $40 million yearly deficit amidst reducing government support over the last ten years.  Developers would be required to set aside 20% of the units for affordable housing, however, the inclusion of market rate housing would signal a reversal of the fifties-era government policy that effectively separated middle and low income families in public housing.  Prior to enactment of this policy, the NYCHA and New York City had been the only places in the United States where the projects were not segregated by income.

In his article "Where No One Thought Gentrification Would Go," journalist Ben Adler set to examine the consequences of development in an effort to understand what it meant for affordable housing.  According to Mr. Adler, "these new high rises would thus block-or, some might say, steal-the views of some current residents."  Many of the currents of Alfred E. Smith are solidly middle class, adds Mr Adler.  He further writes, "given the city's astronomical market-rate rents, many civil servants and blue collar workers are happy to live here. "  Even more so, new housing construction is no guarantee of ground-level retail or commercial space, which would activate the streetscape.  The Community Service Society contends, "Retail  and commercial facilities are virtually excluded from  consideration (except at one development) because they would require zoning variances and increased scrutiny by community leaders under the Urban Land Use and Review Process (ULURP)."

Needless to say, the residents are quite upset by more than the prospect of a lengthy future construction project in their backyards.  Mr. Adler writes, "The plan has become a symbol for something larger.  The way New York, especially under Bloomberg seems to be inhospitable to anyone but the wealthy."  Thus the title of the article, "Where No One Thought Gentrification Would Go."  In the meantime, over the architecture world, a Parsons architecture studio was given the job of carefully imagining new uses for the untapped development rights within the Alfred E. Smith houses.  The studio posed the following questions: "How do you occupy this ground without compromising it?  How do you inhabit a village without disrupting it, altering un urban environment without simply creating defensive architecture?"  The studio's concepts tried to dispel the common notion of housing developments which Jane Jacobs labeled, "self-isolating projects," according to Untapped Cities contributor Julia Vitulio-Martin in her "Forefront" article.  Ms. Vitulio-Martin adds, "It's an accurate term for the relationship between many NYCHA projects and their neighborhoods.

We have to ask, if architecture, which created this urban typology can conceptually reverse itself, is it possible for governments and developers to do the same?  For the time being, the projects targeted for development are resisting the plan.

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Thursday, October 3, 2013

"Chinatown Is Not For Sale"

http://www.bostonglobe.com/metro/2013/09/06/chinatown-attracts-more-developer-and-rents-increase-local-residents-fear-being-pushed-out/...story.html

Map of Boston's Chinatown
starhereboston.com
Hello Everyone:

Guess what?  We're finally moving to another city.  No, I'm not physically moving, we're just switching topics.  Instead of carrying about Detroit, today we're talking about Boston, Massachusetts.  Specifically, Boston's Chinatown and the issue of affordable housing.  In an article published in the Boston Globe on September 7, 2013, Nikita Lalwani writes on how this immigrant heavy enclave is attracting more developers giving rise to residents' fears of higher rents and/or evictions.  It's the same story across the country as developers target inner city immigrant enclaves for upscale housing developments leaving long time residents to search for more affordable housing, according to Mark Huppert, a senior director of the National Trust for Historic Preservation.

Boston Chinatown Gate
flicker.com
During an affordable housing rally in Chinatown, Long Lin strode to the front of the crowd chanting "Keep tenants in their homes!"  Mr. Lin moved to Boston's Chinatown with his parents when they immigrated from Guangzhou, China.  The opted to settle in the heavily immigrant community because it reminded them of home and the rent for their two-bedroom apartment, about $1,200 a month, was manageable.  Mr. Lin is worried what will happen to his parents if they are forced to move.  It's a common fear in the neighborhood where developers are looking to capitalize on its proximity to the downtown area.  Developers are building new luxury apartments and the long time residents are becoming victims of increased property values and rents.  At present, only twenty percent of the 2,765 new units approved for construction in and around Chinatown will be considered affordable housing, according to July figures from the City of Boston.  The remaining eighty percent will be rented out at market value, meaning that a one-bedroom apartment could go for as much as $3,000-way more than the average working class Chinatown families can afford.  It's more than what I pay in rent for my two-bedroom apartment.

Boston Chinatown Restaurant
world-guides.com
The building at 25 Harrison Avenue is a case study of the past and future of Chinatown.  In February 2012, firefighters investigating a false alarm discovered a whole host of building code violations.  Pipes sat corroded in the bathrooms and black mold grew in the ceilings, but the rent was cheap, as low as $400 per month, so no one complained.  I would've said something.  The conditions were so awful that inspectors ordered a full evacuation, forcing about forty people to leave.  Xi Xiang Li, with memories of the dirty hallways, oil stains in the kitchen, and the army of cockroaches, remembers the day he was told to leave.  It was a chaotic situation and the sixty-six year old gentleman wondered where he would go and could he ever afford to go back.  Mr. Li and the other tenants were relocated to a South Boston housing development.  More than a year later, the future of the boarding housing and whether the residents can return remain in doubt.


Chinatown Jade Garden
boston.com
The Hodara Real Estate Group of boston had plans to renovate the Harrison Avenue Building.  Each unit, a studio apartment, would rent for about $1,400 a month, more than double what some once rented for.  However, in mid-July 2013, the Hodara group withdrew, leaving the fate of the building and its displaced tenants in the hands of owners Alexander and Julie Szeto of Southborough.  The Szetos were cited by Boston's Inspectional Services Department for a raft of violations when the squalid conditions were uncovered.  Mr. Szeto said in a phone phone interview with Nikita Lalwani that he hoped to keep the building affordable depending on the cost of renovations, likely to be extensive.  What was that saying about an ounce of prevention being better than a pound of cure?  Gee Mr. Szeto if you've actually made timely repairs and maintenance maybe you would not have been cited and not be facing expensive and extensive renovations.

Chinatown Bakery
bostonmagazine.com

Through a translator, Pai Chao Lin, a former resident of the Harrison Building, expressed the hope of being able to move back in if Mr. Szeto made the necessary repairs and kept the building affordable.  Mr. Lin is hoping that his children will be able to move in with him once the immigrate from China.  Chinatown is a lifeline for many, according to Mark Liu, programs and operations director of the Chinese Progressive Association.  The neighborhood provides access to Asian grocery stores, bilingual health facilities, and a community of shared values and experiences.  "Our residents deserve to live here, and many of them meed to live here...But more and more are being displaced.  Chinatown should not be for sale," says Mr. Liu.

Lion Dance
gonomad.com
Boston's Chinatown trances its history back to the 1870s, when Irish workers went on strike at a shoe factory in North Adams and Chinese workers were brought in from San Francisco to work for lower wages.  When the contracts of the Chinese workers expired, many migrated to Boston, settling around Beach Street, where the rent was known to be low.  Once, there, it was easier to just stay put, especially since racial and ethnic discrimination kept them out of predominately Caucasian neighborhoods.  When the Central Artery was build in the fifties, the construction displaced hundreds of families.  More were forced out over the succeeding decades by urban renewal projects and the expansion of the Tufts Medical Center.  Large Chinese communities arose in Quincy, Cambridge, Malden, and other parts of the Boston area.  However, the influx of high-end developers in Chinatown is a relatively new phenomenon, according to Sheila Dillon, the director and chief of housing for the Department of Neighborhood Development.  In 2010, there were 2,114 residential units in Chinatown, 987 were deed-restricted as affordable.  An impressive number but three years later that percentage-about 47%, has shrunk and keeps shrinking.

Boston Chinatown Park
boston.com

Years of community activism have transformed the neighborhood from a red light district to a piece of coveted real estate.  One alternative to the sudden flurry of high-end development are four buildings being constructed by the city in Chinatown that will create 416 new affordable housing units.  These new units will target households making extremely low to moderate income ($28,300/year to $67,350/year in Boston).  Many Chinatown families make even less than that.  To help with the cost of rent, the federal government subsidizes the cost of housing with Section 8 vouchers.  In light of the current shut down, we'll see how long that lasts.  The family spends 30% of its income on rent and the federal government, for now, makes up the remaining 70%.  Unfortunately, this year the Boston Housing Authority saw a federal government imposed cutback of $10 million in Section 8 vouchers.  With the shut down, this cut could be more.  The result was that the Housing Authority stopped issuing new vouchers and now, it could completely end the subsidies for more than 10% of the 11,000 households eligible for the vouchers.  This is a Catch-22 situation, the harder the Chinatown residents work to make their community a better place to live, the more attractive it becomes to developers which creates increased rents and forces people out.

Unfortunately, this sad situation is occurring around the United States.  Many long established ethnic communities are being targeted by high-end developers for new condominium/loft projects.  If we lose these communities, cities will become bland and boring places.  A piece of history gone forever.  One solution is for preservationists, planners, developers, and architects to work together to secure the vibrant urban cultural heritage while creating new housing.  It's a tough task trying to find a balance but one worth taking on.

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Tuesday, October 1, 2013

The Late Brewster-Douglass Housing Projects

http://www.huffingtonpost.com/2013/09/04/brewster-douglass-projects-demolition-detroit_n_3865482.html?utm_hp_ref=tw

Brewster-Douglass Projects
en.wikipedia.org
Hello Everyone:

We're going to stay in Detroit, Michigan for another post.  This time it's on the demolition of the Brewster-Douglass Housing Projects.  The Brewster-Douglass Projects have been taken down.  Kate Abbey-Lambertz first reported in the Huffington Post on September 4, 2013 that the city of Detroit has been awarded $6.5 million by the United States Department of Housing and Urban Development to undertake the first stage of demolition.  The towers were seen from many vantage points around the Motor City.  To some, they were a much loved icon.  To others, they were symbolic of the city's decline.  For the few squatters that remained, they were home.  They were home to Detroit celebrities such as Diana Ross, Mary Wilson, and Florence Ballard-The Supremes-actress Lily Tomlin, and boxer Joe Louis practiced throwing punches in the recreation center.

Announcing the demolition
freep.com
Detroit Mayor Dave Bing was joined by HUD Secretary Shaun Donovan, who, in a statement, announced, "The demolition of the Frederick Douglass Homes represents another important and positive step in Detroit's journey toward revitalization...We are honored to be a part of helping to write a new chapter for this community.  The people of Detroit are determined and resilient-and the Obama Administration is committed to supporting local leaders as they rebuild."  Closed since 2008, the Brewster-Douglass Housing Project were composed of four 15-story towers, two six-story buildings, and nearly 100 low-rise homes.  The housing project was the first federal housing development for African-Americans and broke ground in 1935.  The occasion was celebrated with a dedication from First Lady Eleanor Roosevelt.  According to former resident Barbara Battle Hunt, who told the New York Times in 1991, "The people of the surrounding areas thought were were the elites..."

Bittersweet end
discoverynews.tumblr.com
Families that first moved to the complex saw it as a piece of the American dream.  The lawns were tidy, crime was rare, people looked out for each.  There was a real sense of community.  Like many upwardly mobile families, people began to move out and crime grew in the aging projects.  Parts of the buildings have already been razed, despite the protests.  To many observers, the decaying towers came to represent urban blight and the glaring lack of funds to fix the problems.  In 2012, Mayor Bing announced that funding had been secured from HUD in order to take down the projects.  Mayor Bing made the commitment to raze 10,000 dangerous and abandoned structures at the beginning of his term.  In his announcement on September 4, 2013, Mayor Bing said, "This site has long been an eyesore and a breeding ground for crime in out city."

Taking a break from demolition
imgur.com

The projects have become a magnet for the curious and graffiti writers.  Recently, it hosted art experiments and skating rallies.  What will become of the site once the buildings are completely down is unknown.  According to the Detroit Free Press (http://www.freep.com), the demolition process could take up to a year to complete and will leave eighteen acres of land ready for development.  Last year, filmmaker Oren Goldenberg released Brewster Douglass, You're My Brother, a short documentary film examining the oft-forgotten parts of the projects, the squatters who still lived there and black church congregation on the site.  According to Mr. Goldenberg, "Things being torn down in Detroit seems like progress, but it all depends on what's built to replace them.  True enough.

Broken doll
flickr.com




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What Historic Tax Credits Can Do

http://www.novoco.com/journal/2013/09/news_htc_201309.php#.UiiV7HrQ1Qk.twitter

Map of Detroit's Financial District
criticaldetroit.com
Hello Everyone:With the looming shutdown of the American government, I thought it would be a good idea to look at Historic Tax Credits and their role in the future of American cities.  John M. Tess, President, Heritage Consulting Group, recently posted an essay titled "Historic Tax Credits: The future of Detroit and the Future of American Cities" in the online newsletter published by Novogradac & Company LLP that examines how historic tax credits can play a role in community development.  Mr. Tess uses the case study of Detroit, Michigan as a way to illustrate just exactly how the economics of historic preservationcan help meet the challenge of a bankrupt city and the future of American cities.











Aerial view of the Financial District
nps.gov
The challenges facing the city of Detroit are very well-known.  The images of graffiti-covered, decaying abandoned buildings and half-occupied blocks with vacant lots where houses used to be have been broadcast all over the media.  In 2005, the National Trust for Historic Preservation (http//www.preservationnation.org) placed the historic buildings of downtown Detroit on its annual "11 Most Endangered Historic Places," citing, " The city is at a crossroads.  Detroit's leaders can continue their demolition campaign, or they can work with developers and preservationists to breathe new life into old buildings and save the history of one of America's great cities."  Four years later, the city had the ignominious honor of appearing on the cover of Time magazine with the headline, "The Tragedy of Detroit."  At the time of this post, the city is in bankruptcy.

Seal of Oakland County, Michigan
en.wikipedia.org
By contrast, Oakland County, Michigan, Detroit's neighbor to the northwest, was featured in the July 29 issue of Bloomberg Businessweek in an article title, "Detroit is Dead.  Long Live Oakland County."  Oakland County is about twenty minutes from downtown Detroit but it might as well be in Illinois or Ohio.  Why?  While Detroit's population has dropped by sixty percent since the 1950s, Oakland County's population has tripled, making it one of the wealthiest counties in the nation, according to Bloomberg.  It's easy to dismiss Detroit's woeful state as an anomaly, a major urban industrial center that failed to change with the times that reached the point of no return where the economic realities overtook economic viability.  Sad to say that the current challenges that face the Motor City are not sui generis and they represent the task facing the preservation community.

The development community of Wayne County, where Detroit is located, beat the drum for "New Urbanism" and the combined experiences of Wayne and Oakland Counties demonstrate how urban flight, which began following World War II continues to the present.  Across the United States, urban centers continues to lose market shares to the suburbs.  While there has been some success in mitigating the bleed, the reality is while more people are heading into the cities, even more are leaving.  The irony here is that this migration is going as urban tourism is thriving and where there is an appreciation of our history.  It is in the urban cores where American history flourished not in farmland-turned-residential development.

One factor is that real estate development is a risk adverse industry and suburban development is pretty straight forward.  No guts, no glory.  The framework is established and it's simple for a developer to build specifically for the market.  The economic models and pro formas are clear, smoothing the way for financing.  A well-run project has a good chance of meeting the market in a timely manner.  For example, a developer planning a small Hilton Hotel or a Marriott near an airport can pretty much schedule an opening day once the first construction crew arrives and be comfortable with the fact that the building will be built according to the project requirements.  No brainer construction.  This is true of a product type, think Westfield Malls or Caruso Properties.  Mass produced buildings.  Soup cans on the supermarket shelf.  While your truly and my fellow preservationists may shudder at staying at hotel near the airport, there is a profitable market for it and developers know it.

Let's contrast this with the experience of building in a downtown area, where developers face a far more complex review process that involve public hearings and protracted, eyeball rolling discussions on what constitutes the right shade of blue.  As well as even more mind numbing discussions on how "maybe the programmatic elements should be changed to suit the building."  Please.  Even worse, is that woe begone developer who suddenly discovers that the one-story building on the site of his proposed high-rise project has been landmarked.  Quel horror.  A developer working in a downtown area can estimate an opening date and hope that the final design remotely resembles what was planned.  Cross your fingers and hope for the best.  That old saying "time is money" still rings true.  As you can see, urban development is far more of an exhausting process than suburban development.  There is the additional challenge of integrating new and existing construction so a more pragmatic approach is essential, factoring the uncertainty of the real estate market and the limited number of interested developers.

Street view of the Financial District
en.wikipedia.org
What types of compensation and risks are involved in the preservation of an older urban building?  An older building has an evolving history that spans decades, even centuries, evident in the architecture.  Sometimes an iconic building such as The Empire State Building or Radio City Music Hall do a magnificent job of capturing and freezing that history.  At a macro-level, a collection of buildings can create a sense a unique sense of place and time.  One example cited is Detroit's historic Financial District, which comprises a significant portion of the downtown and was listed in 2009 on the National Register of Historic Places.  This twenty-seven acre district is composed of thirty-three buildings, two sites, and one object.  The nomination states, "From the 1850s to the 1970s the Financial District in downtown Detroit was the financial and office heart of the city."  The buildings within this district capture the glorious history of the automobile industry that epitomized one of America's great cities.  Detroit was the epicenter of a revolution in global transportation.  The automobile industry not only transformed the city but also the entire upper midwest region.  During the twenties and thirties, Detroit was the fourth largest city in the United States.  A sense of place and an amazing heritage.

Bankruptcy and hard times aside, a new group of civic leaders are attempting to "breathe new life into old buildings and save the history of one of America's great cities."  Industry leaders have started buying buildings in the city's core, investing in redevelopment, moving employees from suburban offices to the urban location.  One example is Dan Gilbert, the founder of Quicken Loans.  Mr. Gilbert is to own thirty buildings with about 7.5 million square feet of space filled with roughly 9,200 employees.  Another example is Daniel Loepp, CEO of Blue Cross Blue Shield of Michigan, who in 2012 moved 3,400 employees from Southfield Michigan bringing the total number of downtown office employees to 6,400.

The Argonaut Building
en.wikipedia.org
Messrs Gilbert and Loepp's vision is to focus on the new economy as the foundation for a revitalized downtown core, creating an around the clock critical mass of people living, working, and playing in downtown Detroit.  Helping to create this vision are non-profit institutions such as the College for Creative Studies.  Aided by donations from the Ford Family and General Motors, the school renovated the Argonaut Building, designed by Albert Kahn, into a charter design school and creative center.  Also furthering the cause are events such as "Redesigning  Detroit," a juried design competition sponsored by Mr. Gilbert's Rock Ventures, focusing on imagining the possibilities for the vacant site of Hudson Department Store.  One green shoot is the anticipated 2014 opening of the Aloft Hotel in the historic 1914 Whitney Building.

In the context of the ongoing suburban migration, the revival of the Motor City cannot be borne on the shoulders of individuals alone.  Messrs. Gilbert and Loepp have the advantage of a work force able to relocate.  The historic Financial District is mainly composed of speculative office buildings built with the hopes of being occupied by businesses of all size from the traditional down sectors: insurance, financial, legal, and other related professional services.  The trouble is that those and their allied professions have shrunk and no longer require sprawling downtown office space.  Further, Detroit, like most cities, still has to come up with an answer to the question, what is the new downtown job base?

Penobscot Building
ilovedetroitmichigan.com


Like hundreds of buildings in the financial district and around the country, many of the commercial high-rises were built between 190 and 1930.  From a preservationist point of view, these older buildings are in danger until that $64,000 question gets answered.  One possibility is adaptive reuse for housing.  That's one possibility.  However, as John Tess points out, what if there is no downtown job base to make downtown housing sustainable?  The trick is creating an around the clock mix of housing, jobs, retail, commercial, and entertainment.  Some of us in the preservation nation joke that poverty and economic inactivity are good agents for preservation, true to a point.  Buildings deteriorate over time, in the case of Detroit, poverty as an agent of preservation has its limits.

In january 2013, former Secretary of Interior Ken Salazar toured the city and spoke with stakeholders about the challenges facing Detroit from a historic preservation point of view.  This visit led to an announcement of several National Park Service (http://www.nps.gov) initiatives promoting historic tax credits (HTCs) in economically depressed areas.  In particular two initiatives stand out: first,  one emphasized and expanded on the 2006 "Recommendations for Making a Good Program Better" report from the NPS Advisory Board, suggesting improving the flexibility of the HTC program.  Second, was partnering with the White House Council for Strong Cities, Strong Communities (SCSC).  Announced in 2011, the SCSC seeks to strengthen municipal governments' abilities to develop and execute economic visions and strategies.  Typically overlooked, the partnership with the SCSC is an important and positive step in the HTC program mindset.

The central core of downtown is a historic district.  These buildings, which present a unique sense of place and purpose, offer the city a very potent weapon to mitigate suburban flight.  The one greatest resource for reviving these buildings is the HTC, with a number of additional local, state, and federal incentives that can be paired with historic rehabilitation.  Further, there are a wide array of local, state, and federal community development incentives that can support activities within these buildings. Truthfully, even a rehabilitated building does not create demand.  Former Secretary Salazar's announcement recognized the fact that the HTC program, specifically and the preservation nation must be active partners in the larger scheme of saving the urban core as a way to turn the tide on suburban flight.

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