Category Archives: urban planning

Where redevelopment is too costly, create infill sites through house-moving

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This house on Wisconsin Ave. NW was demolished by greedy high-rise developers — no, wait, it was merely moved around the corner to face Macomb St. The high-rise is actual infill, in that it fills in what had been a square of grass. Keeping the house (which might have been part of a bargain with the neighborhood) can help to recoup most of the land acquisition cost.

Infill, rather than demolition, was pretty typical of how “missing middle housing” was originally built in its early 20th-century, pre-zoning heyday. It’s also how middle housing development generally pencils in the present day: “the best way to make an infill project work is to avoid demolition.”

Even though houses in locations like Upper NW DC are expensive, houses’ yard space is some of the lowest-valued land in cities. Moving a house on its lot is a way to buy just the yard while leaving the use value of the house intact. (I had hoped to take a similar approach with my Redgrove project by building just within the backyard, but alas couldn’t get zoning permission to retain the house. Instead, the site has to be 100% townhouses, and the original house will be demolished soon.)

A century-old example is the Coolidge Corner section of Brookline, Massachusetts, where my grandparents once bought a triple-decker and where John F. Kennedy grew up. The NPS website for the JFK house includes this Sanborn insurance map slider, which shows how Coolidge Corner’s building stock changed between 1907 and 1919 — including both the Kennedy’s house and my grandfather’s triple-decker.

The maps shows that flats (shown on the fire insurance maps in red, as they were built out of fireproof brick) were usually built on vacant, but already subdivided, house lots. Sometimes, a wooden house (shown in yellow) would be moved on its lot to make room for flats–e.g., the two circled houses at the corner of Harvard and Green Streets were rotated away from Harvard St. to make room for shops on the same lot. A ~1919 photo shows Jack and Joe Kennedy Jr. standing amidst a half-built suburban subdivision. Few houses were demolished entirely to build just flats — though some were for larger buildings, like the mixed-use complex in the obtuse corner.

People like Rose Kennedy, who moved into a new-ish wooden house in Coolidge Corner in 1914, did not approve. In 1973, just after my family arrived, she called the area “built up now… congested and drab” (pg. 33). Keep in mind that Joseph Kennedy Sr. moved there as a bank president. Single lots and detached houses in Coolidge Corner in the 1910s were already a luxury, perhaps because restrictive covenants required a minimum house value.

Despite those covenants, this pre-zoning suburb was demographically mixed—because nuclear-family SFH-owners like the Kennedys were the exception, while extended families & renters were the norm. The 1920 Census found the Kennedys’ block was 68% renters and had 47 unrelated boarders! Roomers and live-in servants were surprisingly common in many urban and suburban neighborhoods into the early 20th century, until early zoning advocates forced them out. In that sense, my grandfather bringing his multigenerational family (and renters) to the area wasn’t anything new, even in a rich suburb like Brookline. Also, every neighborhood has always been changing forever and always will, the end.

Support Z-92-22, New Bern TOD

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(Sent to Raleigh City Council)

I urge you to support Z-92-22, the New Bern Avenue TOD overlay mapping.

As a student at Enloe High School in 1996 (photograph at right), I gained some unpopularity for suggesting that students ought not to complain about parking and press for a costly parking garage, because other options existed — i.e., the city bus. 30 years later, a faster and better city bus could be an option for more residents, but only if City Council lets people live nearby.

In short, this is a vote on whether or not Raleigh transit succeeds. Transit succeeds when it has a mass of people to transport, and without TOD this BRT will fail, just like the many other transit plans that Raleigh has drawn up over my lifetime.

In a 2016 referendum, 262,634 Wake County voters said yes to this specific Bus Rapid Transit line, obliging the city of Raleigh to create a mass transit system — not just to deliver the transit project, but also to ensure its success by making it useful for a mass of people. The federal government, which is funding half of this project, is closely evaluating whether federal taxpayers’ monies are well-spent in places whose zoning laws truly welcome transit. The federal government has made it amply clear that it has learned the lessons of places like Los Angeles and Denver (as amply reported in NPR’s series “Ghost Train”) which wasted billions in federal funds on building empty new transit lines in locations that lacked a mass of residents and businesses.

Raleigh’s failure to federal transit funding in the past was entirely because our land use plans have not supported transit. This has been the story since I was a child, and now I’m middle-aged. You finally have a golden chance to make transit work in Raleigh by passing Z-92-22.

Most of the fearmongering around this rezoning has centered on displacement. TOD overlay zoning is the only Inclusionary Zoning tool that Raleigh has at its disposal, and therefore voting FOR this rezoning is a vote to bring inclusionary zoning here. This rezoning will focus more development on under-used commercial land and large-lot houses, reducing the pressure for flippers who are already displacing residents from nearby neighborhoods.

As Congresswoman Alexandria Ocasio-Cortez says, “the reason why people are on the streets isn’t just some elusive housing or market phenomenon. It’s because we’ve chosen not to build.” The voters of the city of Raleigh have risen to the challenge by approving funding for affordable housing, but now we need places to put it – and Z-92-22 does just that. The city has invested mightily to prepare by buying affordable housing sites within this overlay district.

Zoning for housing is the progressive thing to do. Data For Progress analyzed every 2020 presidential platform and found that “every major Democratic candidate for president endorsed an explicitly pro-housing platform, calling for an end to exclusionary zoning,” while many Republican leaders have attacked Missing Middle zoning reforms using thinly veiled racist language. In his final act in Congress, the Triangle’s own David Price passed the Yes In My Back Yard Act grant program as part of the 2023 federal budget.

A “no” vote on Z-92-22 is not a vote for some magical, supernatural, and completely nonexistent perfection that might exist in the future. Instead, a “no” vote on Z-92-22 is a vote to perpetuate an unjust, unsustainable status quo of cars and sprawl: for bulldozing thousands more acres in Wendell, more deadly car crashes on the Beltline, more carbon pollution to drown our precious beaches, to perpetuate the exclusionary covenants that banned both people of color and renters from Longview Gardens.

There has been enough study and delay; the Equitable Transit-Oriented Development Guidebook recommending this rezoning was issued in July 2020, almost three years ago. Now is the time for action.

I thank you for your attention. I look forward to further working with the City of Raleigh to advance our shared vision of a greater Raleigh.

Build this greenway already

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I remember being excited about having a greenway between downtown Cary and the subdivision where I grew up (and beyond to Lake Johnson, NC State University, and Downtown Raleigh) back when I first saw it in a town parks plan in the library — in the 1980s, when I was a child. My parents went to some public meeting in the 1990s that they said was discouraging, and for decades I have regretted that I wasn’t there to speak up for the project then.

Walnut Creek Greenway in 1976 plan
Capital Area Greenway plan from 1976, with Cary section highlighted

So here I am, several decades later, to say that this should be completed posthaste. And speaking as a planner, public engagement should include the voices of people who will benefit, far beyond those abutting the project boundary and far beyond today.

Fenton view down to creek

(The above is an email I sent to Cary’s parks planner upon finding out that the trail project is being actively studied again. If only it had been done, decades of development alongside it like Fenton could’ve tied into an existing transportation facility — but instead, no, instead the future trail is fronted by parking lots.)

Testimony to Arlington Planning Commission, March 2023

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(Italicized sections were cut entirely from the delivered testimony for brevity.)

Thank you for the opportunity to speak. My name is Payton Chung. After grad school for planning at Virginia Tech in Arlington, I am now a developer of Missing Middle scaled housing. Because that job does not yet exist around here, I mostly work in Raleigh, NC, a prime destination for people who have been priced out of northern Virginia. I can attest that Raleigh’s Missing Middle text changes have made it possible for me to offer smaller, lower-priced houses than the large new houses built across the street just before the text changes. Many of those arriving in Raleigh have been priced out of places like Arlington, which has better infrastructure than Raleigh — much better transit, no water shortages, a regionwide trail network, less crowded schools — but which lacks sufficient housing infrastructure.

The “tall or sprawl” dichotomy of Arlington’s “bulls-eye approach” to planning relies almost entirely on two uniquely high-cost housing types: land-intensive detached houses and capital-intensive high-rise apartments. As a result, it necessarily results in high housing costs. Missing Middle Housing offers a middle ground: less land than detached houses and less materials and labor than high-rises. Yet Missing Middle Housing production, like production of anything else, best achieves lower costs once it achieves economies of scale. It can only reach its full potential for lower costs if it becomes widespread and well-practiced.

Not only does this call for removing artificial zoning limitations, but it also requires related changes to building codes, financing practices, and construction practices.  That means allowing more units, in more locations, and not rationing it with a countywide cap. Redevelopment is already an inherently slow process, since it’s limited by land availability. Only 3/10ths of 1% of Arlington’s single family houses are listed for sale today. Progress towards the county’s equity, affordability, or sustainability goals should not be further limited.

EHO will not solve the affordable housing crisis, but it will make existing subsidy dollars and programs go much further. For instance, Virginia Housing offers subsidized loans to first-time homebuyers up to a cap of $665,000. A house at that price is roughly affordable to the median Arlington household. Right now, there are zero new construction houses available in Arlington to meet that budget. Some older houses are available, but with either maintenance needs or condo fees that would sink many first-time homebuyers. However, there are 108 new homes available under that cap in equally land-constrained, equally highly regulated DC and Alexandria — and 98% are in “missing middle” sized buildings that are basically illegal to build in Arlington today. Instead, new houses in almost all of Arlington are available only for households earning more than the President of the United States — top-3% incomes in America.

The EHO text attempts to incentivize 4-6 flat buildings, but building codes and lending practices continue to favor fee-simple townhouses. I suggest further study to adapt building codes to enable flats, review townhouses’ specific urban design challenges, require public access easements so that driveways contribute to the street network, and allowing townhouse accessory dwelling units– “English basements” are an established pattern for attainable housing in this region.

And last, a quick response to complaints about infrastructure sufficiency. Infrastructure is continually repaired and replaced, for example through Arlington’s $4.4 billion Capital Improvement Program — including almost $1 billion just in water infrastructure. We’ve known since the federal government’s 1974 “Costs of Sprawl” report that expanding existing infrastructure in existing urbanized areas is more cost effective than building it new in rural areas.

Take rail transit, for example: restricting growth here means that Arlington pays WMATA extra to run trains with excess capacity here, while Virginia spends billions to expand rail service for Arlington commuters’ hour or two-hour trips to Ashburn and Ashland. Instead, Arlington should welcome more of those commuters to live here and take the trains built decades ago, when doing so was much cheaper. At a time when new houses are being sold to Arlington commuters in Caroline County, 70 miles down I-95, we need to be cognizant that while infrastructure in Arlington might not be perfect, it’s much better than infrastructure elsewhere.

It’s especially puzzling to hear complaints about strained infrastructure come from neighborhoods where the population has shrunk, rather than grown. Even as Arlington’s population grew by 15% since 2010, CPHD estimates that the population in Old Glebe declined by 13.6%. When Arlington’s low-density neighborhoods were built, life expectancy was still in the 60s; now a typical Arlingtonian lives to 85. That’s terrific news, but it means that Arlington needs more housing units even for exactly the same population — much less a growing one.

I commend the Commission and County for the progress made to date. This zoning change may seem momentous, but even the dry and bitter pill of zoning reform is not a magic pill. It can merely reshape changes that are already occurring to neighborhoods, and hopefully in a way that shifts rather than reinforces the unjust, unsustainable status quo.

Testimony on Comp Plan update, Ward 6

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Thanks to Councilmember Allen for this opportunity to speak. I’m Payton Chung, LEED Accredited Professional in Neighborhood Development, and I have 20 years of experience in urban planning policy, notably in urban design and affordable housing.

Comprehensive planning is how a city adapts to an inevitable future. No plan, and indeed no action a city can take, can prevent that future from occurring.

One inevitable aspect of the future that deeply worries me, as one of the three billion humans living near sea level, is climate change. I previously testified that the updated comp plan does an adequate job of outlining several of the challenges and forward steps that DC will need to take over the next decade to forestall and adapt to the climate catastrophe. If left unchecked, many of Ward 6’s most vulnerable areas, for example the James Creek corridor along Delaware Ave SW, will be uninhabitable within my lifetime. I also testified earlier that the next iteration of the Comp Plan should address this existential threat to DC’s future as its foundation, not as one element among many.

I’d like to briefly touch upon the price of housing. Increased rents cause new buildings, not the other way around. Once rents surpass a level that can pay the surprisingly high underlying cost to build new houses, then new buildings will get built. Stopping new buildings might avoid offending some people’s aesthetic sensibilities, but does absolutely nothing to change the underlying demand for new housing. We can see this in the fact that rents have increased faster in Capitol Hill, with almost no new housing construction, than in Capitol Riverfront, which has lots of new housing construction. 

I’m glad that the comp plan accepts that more houses are needed right here in Ward 6. Ward 6 residents enjoy many transportation choices, and so we produce far less carbon per capita than most Americans. The most effective contribution that neighborhoods like ours can make to the climate crisis is to let some more people in on our secret, and allow more neighbors to benefit from this fantastic location. To be clear, almost all of DC’s population growth results from babies that are born here, so growth is a matter of letting children stay here, not a matter of outsiders vs. insiders and us vs. them.

DC alone can’t change growing income and wealth inequality, or the fact that new houses are expensive to build – though it must continue to expand subsidies to help lower income residents access homes in high opportunity areas. But moderate- and middle-income residents could afford new construction on the private market, if only it were legal to build new homes everywhere, not just in a few tiny areas that I’ve called “instant neighborhoods,” and the comp plan calls Land Use Change Areas. This comp plan update begins to soften the distinction between Land Use Change Areas and Neighborhood Conservation Areas. That distinction has succeeded too well at comforting the District’s already comfortable single-family homeowners, sometimes overwhelming LUCAs with lots of change all at once, and pushing all new housing demand into high-rise apartments, which are the absolute most expensive kind of house to construct.

DC’s zoning makes it illegal to build all but the most expensive possible houses: detached palaces surrounded by huge yards in Ward 3, or high-rise studios surrounded by costly concrete and steel in Ward 6. Yet somehow, we act surprised that housing costs are out of reach. Allowing a broader variety of housing choices across the entire spectrum of housing types and neighborhoods, and particularly making it simpler to add new units in less costly low-rise apartments, will better balance the housing market and make sure that our housing dollars, whether private or public, go further.

Idle speculation: podium apartments, floating above a parking lot

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Podium construction: if it's good enough for these guys, it's good enough for you

As of 2015, the IBC now permits multi-story concrete podiums. At first, this was mostly of interest because it permitted even taller “double podium” apartment buildings, with up to eight stories framed mostly in wood.

This diagram (by Nadel, Inc. for Multifamily Executive) shows the effect between The Podium and The (Double) Podium: you can squeeze an additional floor in above grade, and because it’s concrete (heavy line) it can be used for residential, retail, or parking.

Yet using that magical concrete-framed second floor for residential (which could just as easily be wood-framed) seems like a bit of a missed opportunity. Instead, the second floor could be a mezzanine parking level for the wood-framed residential above — as was done in the mixed-use Grey House at River Oaks District pictured above, or in this mixed-use development on LA’s Olympic Blvd.

The real breakthrough possibility for the parking mezzanine isn’t atop retail, though: it’s atop yet more parking.

It just so happens that a 65-75′ wide module fits either a double-loaded apartment building or a double-loaded parking aisle. Therefore, a four-story building (three floors of Type V residential, one level of parking) can be stacked atop an existing aisle of parking — without diminishing the existing parking lot, and without excavating any parking.

It’s the suburban infill version of “have your cake and eat it, too”: keep your parking and add infill housing, too.

3 over 2

Developing these air-rights infill parcels used to require some pretty tremendous trade-offs. The first such projects that I saw were designed by Gary Reddick, a Portland architect who won a CNU Charter Award in 2004 for two such projects. Jury chair Ellen Dunham-Jones subsequently wrote about these in HDM:

In Seattle and Portland, where there are very good markets for residential development, Sienna convinced a variety of non-residential building owners to sell the air rights over their parking lots or roofs for housing. In Portland’s desirable and compact Northwest neighborhood, Sienna saw the parking lot of a specialized medical center as a potential housing site. After producing a pro forma, the firm approached the owners and showed that it could provide them with a covered, forty-three-space parking lot (with only three fewer spaces than before) and a million-dollar profit in exchange for stacking an additional layer of parking (with a separate entry) and two stories of condominiums. The built project, Northrup Commons, screens the parking with duplexes entered from the streets and adds two floors of apartments.

This turns out to be tough to replicate elsewhere. Because the residential comes with its own parking requirement, fully replacing the on-site parking requires adding parking somewhere else — either building a new parking lot elsewhere, or digging underground, at super-high cost ($11 million at one Seattle project). Most of the Sienna projects, including Northrup, used sloping sites (common in the Northwest) to tuck one parking level partially or fully underground.

tyson

Since the resulting buildings would block visibility and doesn’t result in an active ground-floor frontage, this particular infill seems best for infilling around Class B offices that currently sit adrift in a moat of parking — such as the above complex on Old Courthouse Road, at the southern fringe of Tysons Corner (image from Bing Maps). Or, many properties along this stretch of the infamous Executive Boulevard near White Flint (image from Google Earth):

exec

* A rough assumption here is that each 1,000 sq. ft. apartment would have one parking space, which works out to about 3:1 residential:parking floor space. The ratio seems to work for the Houston example, which promises its residents the ability to park in-building rather than having to venture outdoors. Sufficient parking for rich Houstonians is probably enough for anyone.

Recently: winning the war on sprawl, over-preservation, office to residential, shared streets, tax bill

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I’ve recently published several articles over at GGWash.

  • “Sprawl is slowing, but that doesn’t have to mean higher housing prices.” The downtown high-rises under construction only tell half the story of Greater Washington’s housing growth story. While all those cranes are easy to see from afar, what isn’t immediately apparent from the airport (but might be from a plane) is that many fewer acres of the countryside around us are being bulldozed for subdivisions–which for the past century has been where most lower-cost, low-rise housing was built. As a result, the region as a whole isn’t building enough housing for our rising population… Not only is supply overall not keeping pace with demand, but a large fraction of the new supply is in the housing market’s priciest segment: expensive high-rise construction, on expensive downtown land.
  • “DC has more historic buildings than Boston, Chicago, and Philadelphia combined. Why?” Nearly one in five properties in DC are protected by local historic designation laws. DC is so prolific at handing out historic designations that we have more historic properties than the cities of Boston, Chicago, and Philadelphia combined, which together have almost eight times as many properties as DC. While this policy has ensured harmonious architecture across much of central Washington, it also means that Washingtonians are much more likely than residents of other cities to have their construction plans delayed or denied on subjective grounds by a historic review board.
  • “Historic preservation in DC saves the loudest neighbors, not the finest buildings.” DC’s surfeit of historic structures results from several factors, notably the broad application of rather vague criteria for designation. As Roger Lewis has written, “the HPRB decision is inevitably a judgment call because much of the evidence for historic designation is inherently subjective.” Since every resident “squeaky wheel” is invited to request historic designation for just about any site in the District, many do — and overwhelmingly, they succeed.
  • “DC’s countless thirtysomething office buildings stare down mid-life crises.” No other region can match Greater Washington’s density of 1980s and 1990s office buildings — we built over a million cubicles’ worth, almost as many as in the much-larger New York and Los Angeles regions. Now, these buildings are facing mid-life crises; many require substantial additional investment, as key building systems (like air-conditioning, plumbing, elevators, and roofs) require overhaul or replacement, just as the office market has changed.
  • “Not every obsolete office building is cut out to become apartments.” Some, but not all, of these old offices can become residences, depending on their location, price, and layout. Despite considerable media coverage, office conversion has been comparatively limited in greater Washington for a variety of reasons, including a relatively healthier office market and a lack of specific incentives for the practice. Residential conversion offers some promise, but will not be a panacea for either the over-supply of offices, or the under-supply of affordable homes, because not every obsolete office building can be converted to housing.
  • “Metro needs a loop to lasso riders from this growing corner of DC.” The way the District is growing is creating another rail bottleneck on the other side of town that will have to be addressed in the future. The Capitol Riverfront is easily the fastest-growing part of DC right now, and by some accounts one of the fastest-growing neighborhoods in America. If all 11,978 new housing units proposed within the Capitol Riverfront get built, the area around Navy Yard station would have the largest household population of any Metro station. Metro’s ridership forecasts, which now factor in development proposals, foresee that the area’s rapid growth might require additional investments, like a new subway line.
  • “How are the Wharf’s shared spaces working out?” When the Wharf opened last month, it instantly became the largest expanse of “shared space” streets in the country. Over the past few weeks, it seems like these streets are largely working as they were designed. Even though a few of our commenters were skeptical about whether the approach would work here, so far there haven’t been any major complaints or adjustments needed.
  • “The GOP tax plan would make housing and infrastructure more expensive.” Eliminating Private Activity Bonds and New Markets Tax Credits, as the House GOP’s tax code overhaul proposes, would have deep ramifications for funding infrastructure and affordable homes in the region.
  • “The latest Republican tax bill changes commuter benefits, but probably not yours.” Tax law will only indirectly affect most area commuters.
  • Added 26 January: “A bold California bill would ease transit oriented development. How would a similar approach affect DC?” A bill recently introduced into the California legislature boldly proposes that every transit corridor in the state be rezoned to permit mid-rise apartments. In Slate, Henry Grabar writes that it’s “just about the most radical attack on California’s [housing] affordability crisis you could imagine.” In the Boston Globe, Dante Ramos writes “the bill may be the biggest environmental boon, the best job creator, and the greatest strike against inequality that anyone’s proposed in the United States in decades.”

 

Recently: instant neighborhoods, unmasking institutional capital, dockless bikeshares compared

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Cranes around Navy Yard, from roof of 100 M SE

Three things I’ve written elsewhere this week, the first two inspired by the mechanics of my neighborhood’s growth:

1. “Instant neighborhoods” don’t make for great cities, but DC insists on them in GGWash. I really do relish living in a neighborhood that’s growing and changing quickly, but it’s a little bit unnerving to think that we may be repeating the biggest mistake of Southwest’s past — the hubristic assumption that our best-laid urban plans can anticipate every need, for all time.

2. Meet the everyday people who own these iconic Washington-area buildings in  GGWash. Amidst a lot of dark insinuations about outside money, it’s kind of funny to uncover the rather more quotidian reality of who’s paying for all these new buildings.

3. I wrote a Twitter thread about riding all four of the new, dock-less bike sharing systems that have launched in DC this past week. Click through for the reviews:

 

Amazon’s HQ2 RFP prioritizes site readiness and talent, not incentives

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Parking crater at Spooky Park, Yards

Site availability, not incentives, are of “paramount importance” to Amazon.

A lot of the early press around the Amazon HQ2 announcement zeroed in on the usual economic-development narrative of a company shopping around for incentives. Yet a close reading of the RFP reveals that incentives are actually a middling concern for Amazon.

The RFP reveals (as Benjamin Romano also writes) that Amazon feels that it’s outgrown Seattle; they feel as if they’ve hired everyone in Seattle who could work for them, and growth requires tapping into a new labor pool. The company isn’t hungry for cash; it needs people, space, and speed.

I’ve plucked out the various considerations listed in the RFP and rearranged them roughly in order of urgency:

“Paramount importance”

  • “Finding suitable buildings/sites,” i.e., initial size of 500,000+ (up to 1.0 MSF) available in 2019, expandable nearby to 3.5 – 6 MSF over three phases and potentially up to 8 MSF beyond 2027
    • Keep in mind that a high-rise office building takes about a year to build, so groundbreaking should occur by mid-2018
    • For perspective: the TSA just awarded a build-to-suit contract for a 625,000 sq. ft. headquarters on a greenfield site in Springfield, Virginia, where the buildings are drawn, the developer has cash in the bank, the land is already cleared, and the office will open in late 2020
  • “Optimal fiber connectivity”

“Must be” or “required”

  • Close to a significant population center that can fill 50,000 jobs (many of them technical)… Direct access to significant population centers with eligible employment pools
  • Strong university system
  • Compatible cultural and community environment, diverse population, higher ed, officials eager to work with company

“Critical”

  • Highly educated labor pool
  • Initial and ongoing costs
  • Travel/logistics for employees and to other facilities
  • Site has access, utilities, zoning

“High-priority considerations”

  • Stable and business-friendly environment and tax structure

“Key factor”

  • Travel time to major highways and arterial roadway capacity

“Significant factors”

  • Incentives offered by state/province, local communities

“Important”

  • Near airport with daily flights to SEA, NYC, QSF, WAS
  • Stable and consistent business climate (demonstrated via testimonials from other large companies)

“Ideally”

  • <30 miles to major city
  • <45 minutes to international airport
  • <1-2 miles to highways
  • 0 miles to mass transit (rail or bus)

“Preference for”

  • Metro with 1M+ people
  • Urban or suburban location to retain/attract technical talent
  • Communities that think big

“Want to”

  • Employees will enjoy living there, recreation, education, high quality of life

“Could be, but does not have to be”

  • Urban/downtown
  • Similar layout to Seattle campus
  • Development-prepped site

Site-specific statistics that must be provided, and therefore will be considered:

  • General site information
  • Ownership structure, notably if government owned
  • Current zoning
  • Utilities present
  • Total incentives offered and terms, if legislation is needed, estimate uncertainty thereof, timeline
  • Highway, airport travel
  • Transit options, including bike and pedestrian

Regional statistics that must be provided, and therefore will be considered:

  • Labor pool information
  • Ability to attract talent regionally
  • Opportunities to hire software engineers
  • Recurring sourcing for software engineers
  • “All levels of talent”
  • Executive labor pool
  • Existing and potential university-employer partnerships
  • List of higher ed institutions with relevant degrees
  • Number of recent grads
  • K-12 computer science programs
  • Transit and transportation options
  • Traffic congestion ranking
  • Quality of life
  • Recreational opportunities
  • Diversity of housing options
  • Availability of housing locally
  • Housing prices
  • Crime data (“also”)
  • Cost of living (“also”)

So, what locations make sense on the East Coast?

The RFP only calls out two criteria as “of paramount importance”: fiber data service, and having a shovel-ready site of 0.5-1.0 million sq ft, with on-site or adjacent expansion to 8 MSF.

The site not only should be zoned already, it needs to have utility capacity in place. The 2019 timeline leaves zero time for rezonings, public hearings, geological surprises, soil contamination, lease buy-outs, tenant relocation, wish-upon-a-star transit lines, etc. It means either clean dirt that’s ready to go, or a monster of a cold-shell building that already has construction crews hard at work.

It’s hard to overstate how enormous this project is. It’s more than the total commercial (retail, office, hotel) space that now exists at National Harbor. It’s more than the total commercial space contemplated in the long-range plans for Downtown Columbia or White Flint — much less what’s already gone through zoning approvals. It’s bigger than the entire Capital One campus plan at the McLean Metro, or Under Armour’s Port Covington campus plan in Baltimore. It’s more office space than even what could be built under the Navy Yard area’s zoning. It’s twice as big as the Pentagon.

The Greater Washington office market is the country’s third biggest, after NY and Chicago (other large cities’ employment bases are more industrial). This is one of a few regions in America where developers regularly propose 1+ MSF office sites — largely hoping for giant federal leases. (Granted, cities like Atlanta, Chicago, and Dallas often give away zoning for the asking; Toyota doubled its Plano campus’ size during negotiations.)

Most local sites might have shovel-ready space for Phase 1, but not necessarily plans in place to accommodate phases 2-3-4. Only two come to mind: Tysons Corner and Crystal City-Pentagon City.

  • Tysons: 50,000 jobs is a 50% increase on Tysons Corner’s current employment, and 25% of the 2050 “buildout” number there. As far as I can tell, no one owner at Tysons can accommodate the full 8 MSF buildout, but sites could be combined at two locations:
    • McLean station: Scotts Run, next to Cap One, is the largest single project at Tysons with approvals for about 4.5 MSF of office. Another 0.5 MSF has been approved in two parcels to its southwest, and the Mitre campus can also expand.
    • Tysons Corner station: Lerner has entitlements for an additional 2.3 MSF of office south of the Galleria, Arbor Row has approvals for another 1.1 MSF to its north, and Macerich has approval for another 0.5 MSF office tower south of the station. The Galleria itself hasn’t been rezoned yet, although one idea that’s been presented adds about 1 MSF of office; there are also sites to its west (closer to Greensboro station) that would still be within walking distance.
  • Crystal and Pentagon City have seen 20,000+ federal jobs in defense and homeland security depart since BRAC; there’s over 2 MSF of vacant office available today. What’s especially notable is that most of the offices are already controlled by one very interested  landlord (JBGS). There aren’t many closer analogues anywhere in America to their partnership with Vulcan in South Lake Union: one deep-pocketed owner, one neighborhood, and a placemaking/planning framework that forecasts tremendous growth.
    • [Updated 13 March 2018] From a JBGS filing: “Our holdings alone can accommodate Amazon’s entire long-term space requirement and we have a cost advantage over our competitors given the existing in-place parking and substantial infrastructure. Crystal City has plenty of capacity to accommodate Amazon or any large user looking for a sizeable home in an urban market.”
    • Crystal City has long-term plans to renew the existing buildings and expand office space by about 5 MSF net, including active or expired plans for 0.7 MSF at the vacant 1900 Crystal and 0.65 MSF at 223 23rd St. There’s also about 1 MSF vacant today, and over 1 MSF in 2018-2019 lease expirations that could free up sites for incremental additions.
    • Pentagon City has an entitled site for 2 MSF at the shovel-ready PenPlace, and two adjacent sites are also approved for ~1 MSF of office apiece: Brookfield’s TSA/DEA block (leases are up in 2018-2019) and Kimco’s Costco site.
    • Potomac Yard has a power center to redevelop, where JBG is a partner and could build 1.9 – 5.3 MSF of office after the new Metro station opens after 2020. (There’s vacant land in Arlington, too, but it’s owned by Lidl’s headquarters.)

These sites compare favorably to other leading East Coast contenders: Schuylkill Yards or UCity Square in Philadelphia and Seaport Square in Boston are by far those cities’ largest sites, with superior access to intercity transport and higher ed, but both are approved for only ~3 MSF of office. (The Philadelphia sites are adjacent to air-rights parcels that may be available later, and for which plans have been floated, but the metro area has a considerably smaller technical talent pool.) The Boston submission ended up focusing on the Suffolk Downs racetrack, which is centrally located within the region but clear across downtown from the region’s plush suburbs and educational institutions.

The obvious sites in downtown Atlanta, like the Gulch, are still visions rather than plans, with fragmented ownership and poor infrastructure/access. It appears 2 MSF of Class A office is vacant downtown, but by far the largest and highest-profile block is Bank of America Center, a mile north — and much closer to Tech and Midtown. Too bad the Gulch isn’t on the other side of downtown.

Colossal loft conversions might fit the bill elsewhere, as with the warm shell of Chicago‘s Old Main Post Office — one of the country’s biggest buildings at 2.5M sq. ft., and so impossibly huge that its size had been the stumbling block to several previous plans. It happens to sit astride a subway line, highway, and fiber lines, and within a block are three approved plans for five new build-to-suit office towers.

It could also spread across a few six-figure spaces on the Brooklyn waterfront; although the area’s comparatively small office market isn’t promising, industrial space is relatively plentiful.

The Dallas Morning News’ old printing plant and the mostly-empty Dallas Union Station building have a combined 425,000 square feet, and happen to sit next to not just many empty lots but also an iconic sphere thing.

Central city or suburbs?

Regarding HQ1, Bezos is on record saying, “We could have built a suburban campus… I think it would have been the wrong decision.” Amazon VP for global real estate John Schoettler echoes: “Jeff said the type of employees we want to hire and retain will want to live in an urban environment…. We could have gone to the suburbs, and we could have built a campus.”

Bezos was also heavily involved in siting the Washington Post’s new office. A key consultant says: “One discipline Bezos brought in was money… He saw [a fringe site] as a lot of empty holes, not urban-istic.”

Update May 2018: Arlington, TX confirms they were told “it wanted an already-developed urban core.”

Which locations have a deep enough talent pool to draw from?

A large labor force, primarily technical but also executive, is another “required” factor. Crain’s Detroit points out that “Amazon’s biggest business impediment is labor”: it has over 6,000 current vacancies in Seattle, 75% of which are technical. Real estate brokerage CBRE recently published a report, based on BLS data, comparing cities’ “tech talent” (“software developers and programmers; computer support, database and systems; technology and engineering related; and computer and information system managers”).

Three of CBRE’s charts stood out to me:

  1. 50,000 Amazon employees will include tens of thousands of software engineers, yet only 10 metro areas have more than 100,000 tech employees to begin with. For context, consider Amazon’s current need for 4,500 technical employees: hiring those people in Pittsburgh today would require poaching 11% of its tech workforce, 9% in St. Louis, or 7% in Raleigh. In Toronto or New York, you’d only have to convince 2% to leave their jobs, and in the Bay Area or Washington-Baltimore it’d be less than 1.5%.
  2. A key advantage for DC, Boston, or LA is that only these three regions export CS graduates in large numbers. Seattle, Atlanta, DFW, and the Bay Area already have to import thousands of tech employees a year; since there’s only a limited pool willing to pick up and move, recruiting thousands more every year could be that much more difficult. (The RFP specifically asks about university hiring partnerships.)
  3. Regarding costs, CBRE did an interesting analysis looking at the cost of running a 500-employee technology office. DC, Boston, and Seattle all come in at about the same price; SF is about 20% more. The big winner in that table is Toronto, with its large workforce and low wages — which more than offsets the relatively high cost of real estate there.

 

Smart growth and your Sierra Club local

by
Taking refuge
In California, trees hug you

I was recently updating the DC Sierra Club chapter’s web page on smart growth, on which I’ve added a few links to resources about the Club and Chapter’s heritage of smart growth advocacy. Even I was surprised at how thoroughly the Club’s key policies embrace smart growth.

The overarching “Sierra Club Strategic Plan Overarching Visionary Goals” document lists as two of its 21 strategies:

Maximize energy efficiency across all sectors, including transportation, urban design, and land use. […]

Protect our air, water, land, and communities from pollution. Promote environmentally sensitive land use and urban design to minimize sprawl, provide a healthy environment for all, and minimize resource use.

Interestingly, the strategy that calls to “Protect and restore wildlands and waterways” continues that those wildlands serve a specific, objective, quantifiable purpose: “to provide large and connected habitats.” Not to protect the favorite views of favored humans, or to protect property values for landowners, but to rescue non-human species from the threat of habitat fragmentation.

The Club’s Infill Policy, adopted in May 2019, is unequivocal:

An essential strategy for reducing urban related carbon emissions is supporting dense, mixed-use communities and land uses that prioritize walking, biking or transit to meet daily transportation needs, as well as balancing jobs and housing within the region. If we make communities not only dense, but inclusive, then fewer people will have to drive till they qualify for housing financing, saving even more emissions.

Development should be dense, inclusive, and located within or connected to existing communities and neighborhoods…

Development areas served by public transportation, shared transportation, public infrastructure (wastewater, water, roads, etc.) should be zoned for dense/multi-family/mixed use development in order to reduce emissions and waste. New areas should not be zoned for exclusively single family housing only.

Development should be allowed at the highest densities within walking and bicycling distance of transit stations.

Regulations and public incentives should expand housing choices in neighborhoods that offer access to educational and economic opportunity.

The Policy on Urban Environment, adopted by the board in 1986, states (emphasis added):

…the Sierra Club urges planning and policies which stimulate…
“Infill” residential and commercial development on unused or under-used land within city boundaries…
Preservation and revitalization of urban neighborhoods, with residents protected from unreasonable economic and physical disruption…
Attractive, compact and efficient urban areas; with densities and mixtures of uses that encourage walking and transit use, and encourage more efficient use of private autos in balance with other transportation modes…
These development patterns and transit improvements would conserve energy, water, land and building materials while enhancing the pleasure and safety of urban life and reducing travel distances.

The Transportation Policy, adopted in 1994, supports policy and systems that “encourage land uses that minimize travel requirements; strengthen local communities, towns and urban centers.”

The broad Energy Resources Policy (PDF) directly refers to smart growth and transit. In section VII.A.3:

Reduce the need to drive passenger vehicles by shortening the distance between workplace, home, shopping and school, using “smart growth” planning and improved transportation options. Provide safe and appealing options for walking, bicycling and mass transit, including light rail passenger trains, which will reduce vehicle trips, emissions, fuel consumption, and the demand for new roads and pavement. Well-designed mixed-use communities create long-term reductions in energy usage. Appropriately designed public transportation systems are an essential component of a sustainable energy society… Congestion pricing should be applied, when feasible. Parking costs should be efficiently and conveniently unbundled to give consumers and employees more control over how they choose to spend their money.

If your local Sierra Club entity is proving unnecessarily obtuse in not living up to these policies, I’d suggest engaging by appealing to the Club’s strong sense of tradition, deference to higher authorities (encoded in the “One Club” policy), broader principles, and yes, policies. One specific idea: ask them to review the “Guidelines Governing Decisions on Schools, Hospitals or Other Projects Serving Economically Disadvantaged Communities.” Those require specific steps before Club entities decide to oppose or endorse a public facility, with a specific mention of “low-income housing project” (and thus many large-scale infill developments subject to inclusionary requirements). Notably, the Club must have a face-to-face listening session with those who will benefit, and write a 2-page assessment of the proposal and “any feasible environmentally superior alternatives” — which cannot include displacing housing to sprawling locations. Even where opposition by the Club may very well be warranted, the policy requires that it be thoughtful and considered, rather than knee-jerk.