Baldwin Hills: A Benefit-Cost Analysis
For every $1 spent on the creation of Baldwin Hills Park, how many dollars will it return in economic benefits? Urban parks are not ordinarily assessed in such brute financial terms, despite numerous studies showing that they yield considerable returns to the community and broader region in which they are built, namely in the form of direct user value, increased real estate values, air quality improvements, community health, and tourism. This study quantifies the costs and benefits tied to the acquisition, construction, and maintenance of Baldwin Hills Park over a forty-year timeframe, taking into account independent cost estimates and a broad set of stakeholders. Depending upon the scenario considered, the park generates approximately $1.40-$1.75 per dollar spent, or an internal rate of return (IRR) of 7-11%.
East Cambridge, MA: Mixed-Income Housing Project
After years of gentrification pressures, the median home price in East Cambridge – a traditionally blue-collar neighborhood close to Harvard University, MIT, and Boston’s financial district – had, by 2008, effectively priced most local residents out of the housing market. Recognizing the need for more affordable living options near transit, this urban infill project proposed 40 rental units (23 market rate, 17 affordable at 60% AMI) and a modest neighborhood retail component on a compact 14,250 sq. ft. site, wrapped around an existing historic building occupied by a local bank.