New York’s Proposition 13?

In Westchester County, New York, cocktail conversation no longer revolves around the frothy real estate market. That is sooo 2006. Instead, the issue du jour is taxes. Even though I now live several states away, old friends from high school will tearfully recount how their empty-nested parents have been pushed out of the area by the engulfing tide of property and school taxes.

So it stands to reason that the New York Legislature has now passed a bill to limit property tax increases to 2 percent a year (or less if the inflation rate is lower). This is one potent political issue in the suburbs.

Watching this development from afar, though, I wonder, hasn’t New York learned anything from California’s 30+ years of experience with property tax caps? Where are the obvious comparisons to Proposition 13?

Proposition 13 is widely pilloried for contributing to the demise of public schools, skewing the incentives for local jurisdictions to attract certain types of development, and generally wreaking dysfunction on local finances.

So why does New York think the outcome of a 2 percent annual property tax cap is going to be any different there?

There are, of course, some important differences:

1. Local governments can override the cap with 60 percent of the public vote or the governing body. In California, a 2/3 supermajority (67%) is needed.

2.  The cap does come with potentially significant exemptions. Court judgments, growth in a town or school district, and employee pension costs can allow taxes to go beyond the 2 percent limit without voter approval.

This tax cap will sunset in 2016, but it is hard to see this piece of legislation not becoming a permanent part of the political landscape.

Posted in Street Talk | Leave a comment

Lincoln Boulevard, Extreme Makeover Edition

Why is Lincoln Boulevard so persistently grim and ugly?

As a Venice resident, I contemplate this question with some frequency and sense of resignation.

So it was refreshing to see USC urban planning students re-envision Lincoln Boulevard as a sustainable, vibrant hub of employment and activity, in a presentation given to the Venice Land Use and Planning Committee (LUPC) last Wednesday.

“Lincoln Place” would capitalize upon Venice’s creative, beachy vibe to attract a “tech” corridor nestled between Santa Monica’s emerging Silicon Beach and the LAX Airport/El Segundo’s aerospace/engineering cluster. Not such a stretch in light of Google’s pending move to Main Street.

Shown in red below, the new tech park would stretch along Lincoln Boulevard adjacent to the existing Lincoln Place apartments, a 38-acre complex with its own interesting history. It would displace two retail centers, Ralph’s supermarket and Ross Dress For Less, with the new building footprints adopting the New Urbanist best practice of a zero lot line and parking in the rear.

Lincoln Place Tech Park

Lincoln Place Tech Park

Lincoln Boulevard itself would be transformed into a “complete street” featuring dedicated rapid bus lanes in the center lane, an all-electric fleet technology (notice the overhead catenary wires), wider sidewalks, and an enhanced public realm.

Lincoln Boulevard reimagined as a "complete street"

Lincoln Boulevard reimagined as a "complete street"

As one of the LUPC members pointed out, Lincoln Boulevard’s official designation as a state highway (Route 1) means that little in the form of traffic calming or retrofitting may be legally permissible, let alone desirable, given existing traffic woes on the Westside.

The leap from concept to implementation is always a tricky one. The makeover scheme also begs the classic question of phasing: Would public investment in better amenities and transportation options need to come first to make Lincoln Blvd more desirable for high-wage tech workers, who value quality of life, or would the increased employment base come first and then provide the tax dollars to do so?

That aside, USC students are spot on in identifying the locational advantage that Lincoln Boulevard currently enjoys but does not successfully exploit. City planners would do well to take note.

Posted in Street Talk | Tagged , , , , , , , , , | Leave a comment

CEQA Reform: A Modest Proposal

Budget battles are upon us in Sacramento, and one of the concessions being demanded by the Republican minority is reform of the California Environmental Quality Act (CEQA).

On its face, this effort may be a cynical attempt to reduce the power of environmentalists. That said, no one can deny that CEQA imposes enormous additional costs on new housing and infrastructure projects by creating an uncertain and onerous approvals process.

CEQA review

What a streamlined CEQA review process could look like vs. the existing process.

In the newfound belt-tightening spirit of “doing more with less,” even some liberals are willing to consider regulatory reform as a form of economic stimulus. Dan Rosenfeld, LA County Supervisor Mark Ridley-Thomas’ deputy for economic development, made such a remark at ULI’s Urban Marketplace forum earlier this month. Indeed, regulatory reform is one of the few tools available to localities that does not involve the direct expenditure of tax dollars.

In his latest book, Triumph of the City, urban economist Ed Glaeser criticizes CEQA, pointing out that it is prejudicial against new development, since it only considers the impacts of a given project against a “no-build” alternative.

This is unrealistic, Glaeser points out, because new growth pressures demand a release valve; if denied in one place, a developer will inevitably decamp to a more receptive city or region.

In Glaeser’s view, since its enactment in 1970, CEQA has displaced new growth away from the greenest possible locales in the U.S.—namely, coastal California, where per-capita energy use is relatively low—out to areas with more extreme climates, such as Las Vegas, Phoenix and Dallas, that are intrinsically less green.

For urban infill projects, CEQA’s point of reference for assessing greenhouse gas impacts, for example, should therefore be not a no-build alternative, but a base case scenario in which the same project is instead built in a car-dependent, less temperate environment. Such a scenario would be equally hypothetical—and more reflective of the real world.

Posted in Press Clippings | Leave a comment

Trend Report: Public-Private TOD Investment Funds

The regulatory risk associated with new housing development makes it very expensive to build in Los Angeles. A combination of strict local zoning laws and the environmental review process under CEQA increases the average length of project delays and overall cost of doing business.

Rather than simply throw more money at the problem, the Bay Area Metropolitan Transportation Commission (MTC) has formed a new $50 million revolving loan fund in partnership with the private and non-profit sectors. Its $10 million contribution will be in a “top loss” position and provide developers of affordable housing the opportunity to acquire land near transit stations while they navigate the approvals process at the local level.

This arrangement not only reduces borrowing costs for the developer, but effectively mitigates regulatory risk as well because the MTC’s participation in the fund implies public agency support for a given project just by virtue of granting the loan.

Plus, it leverages commitments by the private sector to stretch affordable housing dollars much further than they would otherwise go as direct grants or subsidies. MTC staff estimates its $10 million contribution to “a $40 million TOD Fund could be used to help finance the acquisition of at least 20 to 30 acres around the region, which, depending on the density of build-out, would support development of anywhere from 1,100 to 3,800 units of affordable housing.”

New York City has a similar partnership in place. With the region’s transit network poised to expand significantly under the 30/10 Initiative, it is time for the City of Los Angeles to step up the financial committment to its own New Generation Fund, too!

Posted in Press Clippings | Tagged , , , , , | Leave a comment

Congressman Becerra Says LA 30/10 Transit Plan “Unlikely” to Happen

Congressman Xavier Becerra, who represents an interesting slice of urban Los Angeles, declared at a recent Urban Land Institute event that the region’s 30/10 initiative to accelerate construction of key transit projects is “unlikely” to be adopted in full. The event was hosted at LA’s Union Station on Friday, January 28th.

Becerra’s note of candor acknowledges new political realities at the federal level, where Republicans have flat out rejected the idea of subsidizing the interest rate at which financing could be tapped for Metro’s program of construction projects under 30/10.

The proposed financing program, nicknamed QTIBs (or Qualified Transportation Investment Bonds), would have the Feds pick up those financing costs in full, by making funds available to Metro at zero percent interest – essentially free money. QTIBs would have to be written into the tax code and their fiscal impact assessed by the Congressional Budget Office. Anything that adds red ink to the federal balance sheet is most likely off the table, for now.

Becerra does believe that the Obama administration’s proposal for a National Infrastructure Bank, which was first launched as a trial balloon last fall (and lauded by the conservative Wall Street Journal), may soon be revived. An I-Bank may be the best option for leveraging local and private funds, Becerra said.

During the cocktail hour, some attendees at the event quietly questioned the seriousness of the administration’s backing for an I-Bank. This might be a sacrificial lamb quickly offered up to the GOP during upcoming negotiations over the federal budget.

While boosters for the 30/10 plan remain undaunted, the path forward remains as uncertain as ever.

Posted in I-Report | Tagged , , , , , , , | 1 Comment

Putting CAHSR Price Tag In Perspective

With the California High Speed Rail Authority (CHSRA) Board scheduled to consider tomorrow how it will spend the $3.312 billion in federal and state funds currently available for the project, all indicators point to a 66.4 mile segment in the Central Valley. CAHSR first segment

This announcement has predictably added fuel to the fire of HSR critics, who believe it will be a train to nowhere.

Assuming the segment from Borden to Corcoran is completed on budget, however, it will rank as one of the lowest-cost high-speed rail projects ever built on a per mile basis. Look at this capital cost comparison of international HSR projects completed in the last 20 years (adjusted to 2010 dollars)*:

HSR Cost Per Mile

Granted, it is impossible to do a precise apples-to-apples comparison due to variations in key cost inputs such as land and labor across countries. Obviously, too, a tunnel is going to be more expensive than an alignment cutting through farmland in the sparsely populated Central Valley.

At the same time, as the first project of its kind in the United States, the CAHSR does not benefit from the economies of scale and other efficiencies that ordinarily result from, say, a coordinated nationwide program of HSR projects, as in Japan or France, making its low (estimated) cost all the more remarkable.

This analysis is not likely to silence the critics. That said, if the project is successfully completed within budget, it would constitute a tremendous bang for the buck, while boosting the CHSRA’s credibility as a competent steward of taxpayer dollars.

* Adapted from UK Commission for Integrated Transport, High-Speed Rail: International Comparisons (2005). Excludes trainsets, financing, and project management costs. Since the CHSRA cost estimate for the 66.7 mile segment presumably includes project management, an adjustment of -8.7% was made to the total $3.312 billion cost, reflecting the percentage attributed to this cost category by CHSRA for the entire Phase I project (San Francisco to Anaheim.)

Posted in I-Report, Press Clippings | 1 Comment

Santa Monica Restores Dignity to Bike Path Restrooms

<object classid=”clsid:d27cdb6e-ae6d-11cf-96b8-444553540000″ codebase=”http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=9,0,0,0″ width=”900″ height=”390″ id=”umapper_embed”>
<param name=”FlashVars” value=”kmlPath=http://umapper.s3.amazonaws.com/maps/kml/80866.kml”/>
<param name=”allowScriptAccess” value=”always”/>
<param name=”allowFullScreen” value=”true”/>
<param name=”movie” value=”http://umapper.s3.amazonaws.com/templates/swf/embed.swf”/>
<param name=”quality” value=”high”/>
<embed src=”http://umapper.s3.amazonaws.com/templates/swf/embed.swf” FlashVars=”kmlPath=http://umapper.s3.amazonaws.com/maps/kml/80866.kml” allowScriptAccess=”always” allowFullScreen=”true” quality=”high” width=”900″ height=”390″ name=”umapper_embed” type=”application/x-shockwave-flash” pluginspage=”http://www.macromedia.com/go/getflashplayer”/>
</object>

Construction is underway on a series of new public restroom facilities along the bike path between the Santa Monica Pier and Venice Beach.

Under construction - to be finished by Memorial Day 2011

Under construction - to be finished by Memorial Day 2011

Required by law to bring its facilities into compliance with accessibility standards, the City of Santa Monica is teaming with Roesling Nakamura Terada Architects to deliver much-improved amenities to beachgoers and visitors.

Design prototype for new Santa Monica Beach rest stops.

Design prototype for new Santa Monica Beach rest stops.

The old facilities were memorable mainly for their unpleasant odors, lack of sanitation, and pigeon infestations. They were maintained in a state of seemingly intentional decrepitude, almost as if to dissuade visitors from spending too much time inside them.

The new design concept takes almost the opposite approach, encouraging people to sit, lean, drink, and generally linger.

Each station will be complimented by a "palette of amenities."

Each station will be complimented by a "palette of amenities."

According to the project’s official Web site, each station will be “complimented by a palette of site amenities, including showers, foot washes, bike racks, drinking fountains and seating.”

Voneelya Simmons, project manager for the City of Santa Monica, said that construction is due to be completed by Memorial Day weekend 2011, at a cost of approximately $3 million. Just in time to welcome the tourists.

Posted in Street Talk | Leave a comment

Sneak Preview: New Report on So. California High-Speed Rail Benefits

Last January, I partnered with the Center for Urban Infrastructure on a regional study of the economic benefits of the proposed California high-speed rail system. A sneak preview of my study has just been posted.  Among the highlighted findings:

  • Short-Term Stimulus. During construction (2012-2017), the project will contribute an estimated regional income benefit of $701 million to Southern California workers who otherwise would have been unemployed;
  • Green Jobs. By 2035, high-speed rail will attract over 127,000 new permanent jobs to Southern California due to the region’s increased livability and enhanced transportation network, providing a major catalyst for continued expansion of the region’s green economy and reduced greenhouse gas emissions.

This Thursday, a conference sponsored by Brandman University in Irvine, appropriately entitled “The Light At the End of the Tunnel,” will mark the official release of the study to the press. It will also feature distinguished panelists, including yours truly and Mayor of Anaheim/Chairman of the High Speed Rail Authority Curt Pringle, who will discuss the future of the project and how to advance it beyond the planning stages.

Location: Brandman University | 16355 Laguna Canyon Road, Room 111 | Irvine, California 92618 | 949-375-0856

Time: Thursday, August 26, 2010, 9:00am – 3:00pm

RSVP: alia@formol.com

Posted in Street Talk | Leave a comment

Santa Monica Place: The Mall as Civic Space

I never expected to use the words “mall,” “civic-minded,” and “context-sensitive” all in the same sentence, but here I am, attempting to encapsulate my overall positive thoughts on Santa Monica Place (SMP) – that sparking new palace of retail consumption by the sea.

Since a professional architectural critic has already covered the main points, allow me to draw attention to two of SMP’s most thoughtful yet overlooked features:

  • Public restrooms. Mall retailers typically seek to hide their bathrooms: on the top floor, down a long corridor, behind inadequate signage.  But SMP has decided to go the other route, conveniently placing one of its restrooms within 50 feet of the street-level entrance from Colorado Avenue. If it survives the inevitable petty vandalism, this will stand out as a much-needed public amenity.
  • Built-in Heat Lamps. Everyone loves to glorify Southern California weather and conclude that of course malls should be open-air here. But for most of the year, beach city weather can only be described as “FF” (f—ing freezing), as my Mom likes to put it.  Attuned to this reality, SMP has placed built-in heat lamps near all of the outdoor tables. The lamps are set into the concrete, presumably to survive one of the other enduring Southern California realities: earthquakes!
Built-in heat lamps are one of the mall's most thoughtful, context-specific features.

Built-in heat lamps are one of the mall's most thoughtful, context-specific features. (Photo: Architect's Newspaper)

As an organic extension of the Third Street Promenade, SMP is perhaps most successful in capitalizing upon existing flows of pedestrian traffic, but its generous orientation toward the street  has also breathed new life into the formerly moribund Colorado Avenue. No longer a barrier to those approaching from the south, it makes an extended stroll from Main Street to the Promenade much more tolerable.

Even as Santa Monica Place is inhabited by many of the same high-end national and chain stores found elsewhere in LA, the beach views make it a retail experience distinct from the high-rise, in-the-city feel of the Century City Mall or the paparazzi-lined sidewalks of Robertson Boulevard. Plus, it is too geographically removed from its would-be competitors to cannibalize much of their customer base or retail dollars.

Not to bitch, but I do hate all the new evening traffic on the 4th Street exit from the 10 West. Now it is routinely backed up onto the freeway. At least the underutilized, LEED-Certified Civic Center parking garage on 4th St/Olympic is getting some additional off-peak occupancy and will hopefully start to generate more revenue for the City of Santa Monica.

Posted in Street Talk | Leave a comment

Development Watch: Pioneer Bakery Building (512 E Rose Ave)

Could the Venice real estate market be rebounding? There is some new construction activity afoot at 512 E. Rose Ave, with mesh fencing recently installed around the perimeter of the property. Tractors have already begun clearing away the overgrown brush that had been accumulating.

As readers may call, I profiled this site as a prime urban agriculture site in my February 8, 2010 entry, the idea being to use transitional vacant land as a productive space for community gardens and farming. (At the time, I was unaware of pending soil remediation issues, given its prior incarnation as the Pioneer Bakery Building.)

Originally entitled for a mixed-use project consisting of 75 condo units and approximately 5,100 sq. ft. of commercial space in 2005, this 1.5-acre lot has lain fallow in the interim, a victim of the real estate market crash. The financial difficulties of Intracorp, the developer, were well-chronicled on Curbed LA back in 2008.

Pioneer Bakery Building: View from Rose Avenue

Pioneer Bakery Building: View from Rose Avenue

Well, a new site plan for the development was filed with LA City Planning, approved in late May. It calls for a three-story building over two levels of parking. Like a loaf of bread, the residential section of the mixed-use project would be sliced into three sections, with courtyards tucked inbetween. A restaurant and series of retail pods totaling just over 10,000 sq. ft. would front Rose Avenue. The developer has also proposed a generous landscaping plan along the sidewalk.

In the absence of a rendering, only time will tell us to what extent the street-level retail uses proposed in this project will bolster Rose Avenue’s status as an emerging retail/commercial corridor. Pioneer Bakery Building: Site PlanAnchored between the relatively new Whole Foods on the east end (at Lincoln) and Venice mainstay Rose Cafe on the west (at Main), it could provide the missing ingredient to draw additional pedestrian activity into this area.

On the other hand, the saw-tooth building façade, with its jagged relationship to the street line, seems like a throwback to ’80s architectural design and is less than encouraging (see site plan at left). There could have been a more interesting way to capitalize upon the curvature of the lot, although this judgment may be premature.

Posted in I-Report | Tagged , , , , , , , , | 2 Comments