Thursday, January 31, 2008

Decision Time


As we move ever closer to some type of resolution to the electoral process that already seems like it has gone on far too long, the constant bombardment of news and propaganda can be a bit daunting. Here in New York we're gearing up for the Super Duper Stupendous Extravaganza which will be, for most of us, another drab Tuesday. But despite my attempts to steer clear of the hoopla, even the world of land use pulls me back into the fray. For instance, there is a report out of Chicago where, in the words of Hillary Clinton, "slum landlord business" magnate Tony Rezko was arrested on various charges you would expect of a sleazy developer.

Usually such a news item is of little moment on the national stage. But when he also knows the junior Senator from Illinois, who is also running for president, the stakes are raised. In particular, the 20-year connection between Rezko and Obama yielded an odd transaction back when the Senator just won his seat. Obama bought his house for $300,000 less than the asking price. As someone who is in the market for a new home, I can only bow to honor his good fortune. On top of that, the same day, Rezko's wife purchased the property next door for the retail price. Thereafter, Obama purchased a small portion of the neighboring lot to expand his yard. During his time in the state senate, Obama offered his clout in support of some of Rezko's projects. What all of this means is unclear. Is it another Whitewater, or just another wild goose chase? (Yes, both are seemingly the same thing). But behind it recalls the shady real estate deals that have become a hallmark of seemingly all presidential administrations. A little Teapot Dome, anyone?

In any event, the real tidbit into which I wanted to delve had to do with decisions that Americans have already made. An organization known as the Saint Consulting Group releases a yearly survey, the aptly-named Saint Index, which sets forth the pulse of America when it comes to land use. A co-worker passed it along to me, and I couldn't stop keeping my jaw from dropping to its limits. According to those surveyed, 78 percent of Americans believe there should be no new development in their hometown. Asked what type of new development they’d like to see in their community, one in three Americans said “none,” by far the most popular choice. But when you get more specific, it gets even more confounding. For instance, people were more supportive of a new power plant than a Wal-Mart or a casino. According to the survey, people would rather have a landfill than a casino. For all those people who may need medical attention at one time or another during their lifetimes, fear one-third of your neighbors who said that they would oppose a hospital in their town. And what about for the Clintons and Obamas out there? Eighty-nine percent of Americans believe a candidate’s position on growth is important at election time.

Where we will be come November is way too hard to predict at this early stage of the game. Within days, if not already, the saga of Tony Rezko will no doubt be forgotten amongst the electorate. But either way, the lessons learned from the process of seeking an up or down vote on the candidates, and the issues, is that we land use professionals should be mindful of the sentiment that lies beneath any application brought before a land use board. It is difficult not to recall the lessons of Kelo, and how the decision incited such intense, popular fervor. And of course, it still continues. As reported in Professor Patty Salkin's Law of the Land blog, California is at it again with another eminent domain measure to reach voters in November. The people have spoken. And in this fantastic political system we have chosen as our mode of governance, they will continue to do so.

Friday, January 18, 2008

Darlings


Out of an unfortunate moment where we were a little too giddy with one another, my wife and I exchanged pleasantries in which both of us referred to the other as "darling." Unfortunately, this moment was also witnessed by my in-laws, who have ever since deemed us as "the darlings." This week I actually picked up a bottle of wine, with "Darling" on the label, mostly because of our nickname. The way in which we have been branded by my wife's family got me to thinking about the way in which certain places are treated in such fashion -- i.e., where media outlets and the population at large have certain perceptions of places as "darlings," or at least places that receive more attention, to the exclusion of others, when it comes to being the "hot" place, or being "up and coming."

Take for instance the love affair that continues unabated for Las Vegas. Starting with the boom in the late '80s ushered in by the Mirage, the metropolitan area has grown unabated as the fastest-growing settlement in America. Now the talk surrounds the next round of construction on the northern Strip, particularly in connection with the new resorts and new condo developments rising from the desert floor. "The building on the Strip is mind-boggling. There's more construction going on here than anywhere else in the world except Dubai and China," touts one local booster, a title insurance representative. It's still so hot, that owners of certain vacant lots are opening temporary casinos, for no more than a day, in order to preserve the properties' zoning designations permitting gambling on the premises. I have to admit -- I've been a follower of the trend for over a decade, and I've just put down more words devoted to the subject. But why do we choose to focus on these type of phenomena?

The same type of love extends to beloved landmarks. Take for instance Major League Baseball parks, where fans and city officials alike cannot wait to see the likes of Shea Stadium in Queens, New York, to be eradicated from the face of the earth. But the love continues for such places as Fenway Park in Boston, and Wrigley Field in Chicago. Not too long ago the City of Chicago, the caretaker of hallowed Wrigley, permitted the construction of seventy "bullpen box seats" to be added to the local landmark, but not without careful consideration. As a representative from the City's Department of Planning and Development made clear, "landmark buildings aren't frozen in time,[but] need to be maintained and can be improved while respecting their history." Separately, the Governor and Mayor are considering whether to have the State of Illinois' Sports Facilities Authority acquire and renovate the structure, as requested by the Cubs' current owner, the Tribune Co. Certainly a deal more about economics than preserving history, the government is nonetheless buying into the "darling" designation of the stadium.

But just as their are "darlings," there are perpetual punching bags as well. Not the least aided by another scathing season of HBO's "The Wire," which just began a few weeks ago, news came out of the real-life city of Baltimore, Maryland, that the municipality is suing Wells Fargo Bank for allegedly contributing to the massive number of foreclosures in the wake of the subprime scandal still leveling the housing industry. Similarly, in Cleveland, where the foreclosure nightmare has hit hard, rumblings continue to mount, even in its more affluent suburbs, like Shaker Heights, where some news accounts almost try and bait its residents to go along with what the writer seeks to argue. Another popular whipping place these days is Beijing, where the air quality is painted as being not exactly up to Olympic quality.

But finally, there are those places where people are trying to root for change for the better. In Newark, New Jersey, plans are underway to bring in high-end apartments into the downtown area. Sure, the usual artist stalwarts in the neighborhood bemoan the coming change. As one complained, "We've clearly become part of the strategy of using artists to turn areas into luxury enclaves." This may be true. But at least, until it gets to the point of being called a "darling," people are talking about Newark, without including the obligatory reference to the riots that happened there forty years ago. This may be a small step, but one hard-earned for the long-maligned city.

Thursday, January 03, 2008

Are We Back Yet?


Yes, I'm slowly emerging from the coma induced from the whirlwind that is the holidays. After taking a deep breath, and shaking out the cobwebs, I've returned to the world of land use finding that the issues that were out there before do not disappear just because you put them out of your mind for a week or two. Take for instance the doldrums of the real estate world that had to endure year-end reports that things were pretty wretched in the market this past year. Making things worse are the personal stories of how the downturn has impacted individuals and families. Take for instance the recent bankruptcy of Levitt & Sons, one of the successor companies to the builder that constructed the famed Levittown on Long Island. Levitt & Son's business model in constructing gated communities in the southeast for retirees has collapsed in the face of the housing slump. One of its projects, Seasons at Prince Creek West, was halted with only a quarter of the units completed. Purchasers of one of the new structures, Ettore and Laris Costanzo, are left to shoulder the burden of having plopped down a down payment, only to see it trapped in the bankruptcy proceeding. All they want is their home. "Please take our money and let us move in," they've said.

Even with the passing of the new year, people still see the need to question new projects that seek to bring great change, and promise tremendous upheaval, within existing communities. For example, in White Plains, New York, where Mayor Joseph M. Delfino and his team have revitalized a once dormant downtown with such luminaries as the Ritz-Carlton and Donald Trump, the questions arise as to whether everyone stands to benefit. As one denizen of a local public housing development notes, "I love the way downtown looks, but is there a place for working people like me in the new downtown? I don't know." Likewise, in St. Paul, Minnesota, where the Bridges of St. Paul, a large-scale development originally planned under a prior administration, has faced a roadblock from the new regime. Not only objecting to the plan because it caters towards an upper class clientele, the new mayor and supporting players disagree with the vision that the project brings. Specifically, the Bridges would be located across the Mississippi from the historic downtown core, potentially sucking away its vitality. In addition, the new project would be located on a floodplain right along the banks. As the chairman of the entity heading up the project explained, "We've done everything we can, but the squishy liberals think small-scale is morally superior." No matter which side you come out on these battles, they signal that with the changing calendar come the same issues to wrestle.

And still, growth is unrelenting. And not surprisingly, it's occurring in newly-charted territory. The Rocky Mountain West, in particular, Montana and Wyoming, are seeing an influx of new arrivals looking to escape the fast-paced, overdeveloped and high taxed world of the coasts for a more "natural" way of life. Of course, what no one tells these fleers is that eventually their genteel life will be invaded by too many interlopers, forcing them to seek the next "clean" place. But thanks to the general real estate slowdown, or because of it, the rate of growth in the expanding regions of America has slowed. One report indicates that although growth continues, with Wyoming being the largest advancer, the movement to new places has cooled over the last year. Nonetheless, the trend continues.

And no matter how long we choose to let them extend, the holidays cannot forestall the passage of time, and people. David Kennedy, the State of California's "Water Czar" in the 80's and 90's, passed away over the holidays. In more recent times, he served on a review panel examining the levee failures in New Orleans resulting from Hurricane Katrina. Kennedy had a tremendous impact on a region that will always have water on the brain.

But as this week marks the beginning of the new year, it also ushers in the PGA Tour golf season in Kapalua, Maui, Hawaii, where I can still remember being there this time of year three calendars ago. As I watch the players hack away at the Plantation Course, it at least reminds me of the promise of sunny days ahead as we progress into this new year. And maybe, just for a few more hours, I can slip back into my coma for a little longer.