Chicago Infill Housing
Chicago Infill Housing
Chicago Infill Housing
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C O N C L U S I O N
Many real-estate professionals view the reuse of existing buildings and sites as an
important component of development. One reason is that sprawling development
cannot continue forever. Even in a nation of our size, there is a limit to how much
land we can consume without permanently compromising our air and water quality.
Just as significantly, more citizens are dissatisfied with the consequences of sprawl,
especially long commutes to work, traffic congestion, faceless new communities, and
decaying older ones left behind.
Economic factors indicate more cause for optimism. Financial institutions are
beginning to understand mixed-use infill projects. As a result, they are more open to
making loans to such projects. In addition, on-line discount sales are threatening the
profits of the big-box stores that line suburban strips. Real-estate experts predict this
will lead to declining demand for sprawling retail development and a dramatic op-
portunity to revive older shopping districts and neighborhoods.
From inner cities to inner suburbs to Main Streets, citizens and public officials
can plan carefully for successful infill development. They can begin by reassessing
their resources, building a vision among residents, lining up financial incentives, im-
proving infrastructure, and creating guidelines to ensure excellent design. These are
proven strategies that will result in healthier communities everywhere.
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CHICAGO, ILLINOIS
The City of Chicago has promoted site reuse and infill development aggres-
sively over the past decade. City officials—with the strong involvement of Mayor
Richard Daley—have tackled the barriers to brownfield reuse, combined creative
financing and technical assistance packages to advance new industrial and commer-
cial activity, and worked to capitalize on the city’s competitive advantages and its
neighborhoods.
Infill was key to Chicago’s resurgence in the 1990s. Two approaches character-
ize the city’s efforts:
Chicago, recognizing the role that industry plays in its economic history, has
promoted the redevelopment of heavy manufacturing facilities into industrial dis-
tricts with production facilities that are appropriate to their surroundings and acces-
sible to community residents who work in them. Through its zoning program of
planned manufacturing districts, the city is making sure that industrial, commercial,
and residential land uses are integrated in compatible ways. Industrial park redevel-
opment, in fact, has been the focus of much of the city’s brownfield efforts, and a key
element in the city’s site reuse strategies.
To support these efforts, Chicago has established tax increment financing (TIF)
districts that overlay most of its planned industrial districts, secured a $54-million
HUD Section 108 loan guarantee (to be repaid through sales or lease of sites in the
industrial parks), and invested $950,000 received as a supplemental environmental
project (SEP) through the U.S. Environmental Protection Agency. The city also chan-
nels traditional economic development project resources, such as low interest loans
and tax incentives, to sites in the planned industrial districts.
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INFILL EXAMPLES
The West Pullman Business Park is a 160-acre site on Chicago’s far south side
that consists of numerous parcels historically used for industrial activities. The park
is largely abandoned or unused, although several existing manufacturers—including
Ingersoll, U.S. Gear, and Buddig Meats—serve as anchors to the upgraded park. The
city currently is acquiring parcels within the park and assembling them into larger
tracts more suitable for contemporary industrial operations. Some of this acquisition
is being facilitated by creative use of nuisance ordinances and demolition liens, which
allow the city to gain title more quickly. As the city obtains site control, the proper-
ties are tested and cleaned—sometimes by the city itself and sometimes in coopera-
tion with private interests holding title. A pilot grant from the U.S. Department of
Transportation also is part of the funding package that is being used to assist with
cleanup and demolition of unstable structures at West Pullman Park that had been
damaged badly by fire.
West Pullman is 15 miles from downtown Chicago and has good infrastructure
already in place, including direct access to Interstate 57. The city is investing $20
million in the area to upgrade that infrastructure, including street improvements and
buffers for the surrounding residential area. The city also is addressing the commu-
nity concern about through truck traffic by closing off streets with landscaped cul-
de-sacs and constructing new street access on the opposite side of the park away
from the community. The West Pullman area is surrounded by a strong, stable resi-
dential neighborhood, able to provide an excellent labor pool for companies locating
there. Public transportation and METRA commuter rail serve the area.
By the end of 1999, Chicago was nearing completion of several five- to 20-acre
sites within the park for industrial redevelopment, and had issued a Request for
Proposals seeking new developers and users.
The city also is promoting the reuse of the 17-acre 445 N. Sacramento indus-
trial tract to meet several important infill and environmental goals. This tract is lo-
cated in a largely minority, low- and moderate-income area that needs jobs and new
economic activity. The city’s Department of Environment is in receivership of the site,
which was the former home of an illegal rock crushing and salvage operation. Chi-
cago shut it down in 1996 through enforcement action, and the owner subsequently
declared bankruptcy.
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To jumpstart the reuse process, the city began hauling away debris in February
1998. By the time removal is completed, the city will have removed some 300,000
cubic yards of concrete and asphalt and 250,000 cubic yards of construction and
demolition debris, including soil, wood, scrap metals, and plaster. The city has sub-
mitted a site investigation report to the state and expects to receive a “no further
remediation” letter for the site’s front four acres.
The tract is divided into two sites. The front four acres will feature the rehabili-
tation of an existing 34,000-square-foot, 1960s building in a way that incorporates
green building technologies. The American Institute of Architects’ Committee on the
Environment spearheaded the design effort with support from the U.S. Department
of Energy and the Chicago Environmental Fund.
The building will incorporate a number of energy-efficiency innovations that
will reduce significantly the need for electric and gas consumption, and for a variety
of both business and personal transportation uses. This project, with its important
emissions reductions, will serve as an excellent model of sustainable development for
areas grappling with the twin challenges of promoting industrial and commercial
infill and of reducing air quality problems.
In addition, the site will feature native landscaping, and the building will offer
secure bike racks and showers for cyclists, in order to encourage alternative commut-
ing methods. The site is within a block of bus and rapid transit service.
The building rehab and retrofit will cost $5.3 million, including $4.1 million for
construction, demolition and renovation, and $658,000 for design. Project funding
came from several sources, including the city, which used Section 108 loan and EPA
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showcase city grant funds for site assessment and cleanup. Commonwealth Edison
supported the actual building rehabilitation with its settlement funds (available through
utility deregulation agreements with the state).
When the rehab is completed by January 2001, the Chicago Solar/Spire Corpo-
ration, which will produce and install photovoltaic modules and systems, will move
into the facility, bringing 100 new jobs in manufacturing and supporting industries
with it. Chicago Greencorp will launch its Community Greening and Landscape Train-
ing Headquarters operation there, which will include a workshop, training garden,
and greenhouse, literally restoring “green” to an inner-city area that had seen de-
cades of contamination and neglect.
The North end of the back 13 acres, once the site has been cleared and cleaned,
will be used by the Lakewood Fans company for business expansion. This expansion
will retain 650 jobs and create 60 new ones in a low- and moderate-income area with
good access to public transportation.
Finally, the Kinzie Industrial Corridor is another industrial infill focus. Lo-
cated one mile west of Chicago’s Loop and stretching for about six blocks along Lake
Street, the corridor has direct access to three Interstate highways and also sits adja-
cent to the Chicago El and bus lines. After World War II, the west side area was a
thriving industrial hub that brought employment opportunities to area residents and
supported considerable commercial activity. Now, the area must deal with the results
of decades of decline; the corridor took a severe hit during the 1968 riots and has
struggled since as properties were abandoned and residents fled.
Chicago is making a major commitment to bringing good jobs and quality,
affordable residential tracts back to the west side—a strategy that includes revitaliz-
ing the Kinzie Industrial Corridor area. A key element of that strategy includes ac-
quiring former manufacturing parcels that adjoin sites the city already owns — usu-
ally taken for back taxes. Ultimately, the city would like to assemble a 70-acre tract
that could be used to meet modern manufacturing needs.
The city is using $4 million of its Section 108 funding for infill-related activities
in the Kinzie corridor area—for site acquisition, site preparation, and environmental
testing. The city is planning significant infrastructure improvements, such as street
improvements and enhanced site access; officials also will include street and alley
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INFILL HOUSING
Chicago has focused most of its infill efforts on industrial activities; the city notes
that the average investment needed to prepare sites for industrial reuse is between $1
and $2 per square foot, while residential site reuse may command between $7 and
$15 per square foot. Since the market for residential development in Chicago is strong,
the city’s strategy on infill housing has been more one of establishing and nurturing
the climate that invites private investment—doing things like promptly responding to
permit and zoning requests, targeting regular city services (like street repair and side-
walk improvements) to infill areas, and carrying out new initiatives in emerging infill
housing areas. To this end, the city has installed several miles of new street median
plantings in west-side and south-side areas where new infill housing is being con-
structed.
In addition, the city has accelerated its rate of open-space acquisition and restora-
tion, an important factor in the attractiveness of downtown living. The new Museum
Campus Park opened in June 1998, and the northbound lanes of Lake Shore Drive
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were moved westward, away from Lake Michigan, to create a green-space connec-
tion between the lake and the Field Museum, Shedd Aquarium, and Adler Planetarium.
Under construction now is the new Lakefront Millennium Park, a 16.5-acre, $150-
million city investment to cover railroad tracks that separate part of downtown from
the lakefront; this park will include a new bandshell and entertainment space.
Like a growing number of cities around the country, Chicago is enjoying a residential
renaissance in downtown and near-downtown areas. A 1998 Brookings Institution
study projected that Chicago will see a 32 percent increase in downtown residents
during the next decade. Another study, by Applied Real Estate Analysis, Inc., found
that the number of households in the downtown area increased by nearly 15 percent
from 1990 to 1997. Loft-style condominiums, developed in emptied older office build-
ings within the Loop, are attracting a combination of buyers—young professionals
interested in making their first home in the city, and empty nesters from the suburbs
interested in moving back.
These infill trends that began with the conversion of Printers’ Row lofts in the mid-
1980s will continue into the future, as evidenced by the following developments:
• In the South Loop area, condo construction is spreading through an area that
was abandoned for decades. The area’s showcase project, begun in late 1998, is
an $800-million community of residences, stores, offices, and a hotel, located
near Michigan Avenue and Roosevelt Road.
• Far South Loop developments, mostly on derelict former industrial sites from
Roosevelt to Cermak Roads, have proliferated over the past five years. They
include half-million-dollar homes in several developments, such as Dearborn
Park, Dearborn Station, Dearborn Mews, and Central Station—the latter now
the neighborhood of Mayor Daley.
• Chicago’s Chinatown has seen a building boom over the past five years, as
former rail yards are being reclaimed for new townhouses, shops, and stores
with easy access to public transportation. The city, for instance, converted an
abandoned parcel into a riverfront park, which opened in late 1999.
• On the city’s West Side, renovation of the El’s Green Line and the construction
of the United Center have provided the impetus for new housing development—
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some near the Kinzie Industrial Corridor area described above. Hundreds of
townhomes and apartments, designed for a mix of incomes, have been built,
mostly on land that had stood empty since the 1960s.
• The Homan Square project, also on the west side at Roosevelt Road and Homan
Avenue, brought more than 100 market-rate (about $70,000) town houses to
the area. Built on the site of the Sears’ former distribution warehouse, the devel-
opment has attracted a Walgreens drug store, a bank, and a cinema. With the
city’s support, the former Sears Administration Building has been converted
into a small-business incubator.
• A significant investment by Oprah Winfrey, in her Harpo Studios near the de-
clining Randolph and Washington areas just west of Chicago’s Loop, has sparked
considerable private activity to the neighborhood. Loft conversions are attract-
ing new residents; a new condominium development sold more than 75 percent
of available units before construction was completed. Commercial activity, such
as restaurants and shops, is increasing. And the city is working to preserve the
area’s traditional restaurant supply and food service business.
By the end of the 1980s, nearly 30,000 new housing units were made available
in central city Chicago. A critical factor contributing to this growth was the accom-
panying increase in downtown and near-downtown areas of basic commercial and
service operations—ranging from grocery stores to dry cleaners. Under development
southeast of the Loop, for instance, is the Grand Pier project, a 1.5-million-square-
foot, multi-use development that will focus on stores serving the growing residential
population. Already, the developer has gained commitments from a Dominicks su-
permarket and a movie complex.
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DALLAS, TEXAS
Physically, Dallas is a relatively young city. Much of its development is postwar,
and many of its downtown historic structures were demolished prior to interest in
historic preservation. Until recently, Dallas has had little housing development down-
town and thus has missed out on the region’s booming housing development market.
Between 1990 and 1998, the region’s population expanding by almost 17 percent or
686,000 people. The City of Dallas, however, captured only 6.5 percent of this growth.
Another telltale sign of the city’s failure to compete with its suburbs is the avail-
ability of office space. Downtown office vacancy rates still hover around 30 percent,
despite the addition of 500,000 new jobs to the region. Vacancy rates in downtown
Ft. Worth, by comparison, are 30 percent lower at 19 percent, and suburban office
markets throughout the metroplex are much tighter.
The results of these economic and development dynamics for the City of Dallas
can be summarized as follows:
• There has been a great deal of “churning” in the downtown office market. As
new office space around the region that had been built or started during the
early 1980s boom years came on line, the market for Class A office space moved
away from downtown to occupy new space. As downtown rents dropped, the
market for Class B and C space moved up, leaving many older office buildings
empty. In addition, major retail buildings were vacant as downtown retailers
following workers and residents to other locations.
• Tracts of vacant land exist in parts of the city because many parcels were cleared
during the boom years and never redeveloped. It is not uncommon in Dallas for
owners to simply clear land to avoid taxes.
• South Dallas, home to a large percentage of the city’s poor, continues to suffer
the effects of the late 1980s recession. Unemployment hovers around 10 per-
cent, and the area is dramatically under-served by retail and other public and
private services.
• Infrastructure quality suffers from delayed maintenance during the late 1980s
and early 1990s when city resources were stretched thin and many infrastruc-
ture needs were put off.
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• Finally, the shape and location of new growth has created a clear challenge to
Dallas to redefine its role in the region. The locus of growth in recent years has
moved away from the city. To ensure a prosperous future, Dallas needs to rede-
fine itself to compete more successfully for a reasonable share of the metroplex’s
prosperity.
Also affecting the way Dallas approaches its infill development opportunities
are brownfields, severe flood events, social service needs, open space/park redevelop-
ment needs, transportation improvements, and intense regional competition.
DALLAS’ RESPONSE
During the late 1980s recession, city leaders viewed the sudden glut of down-
town office space and abundance of vacant land as a major opportunity to recast
Dallas as a 24-hour city with a vibrant downtown-residential element. The City Council
in 1994 adopted the Dallas Plan. The long-range strategic plan is the product of a
private nonprofit organization by the same name, formed by a partnership with the
city, and hundreds of community groups representing businesses and residents. This
30-year master plan sets forth six major strategic initiatives, each of which addresses
an element of infill development:
Core Assets. Preserve and build on the unique assets that make Dallas a desirable
place to live.
The Center City. Transform the Center City into a dynamic urban area, with a vari-
ety of business, cultural, entertainment, and living choices.
The Trinity River Corridor. Protect and develop the Trinity River Corridor to be-
come Dallas’ new front yard—a nature park and a recreational and economic asset.
Since adoption of the Dallas Plan, a number of important partnerships have over-
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come obstacles. For instance, the Trinity River Corridor project—a billion-dollar
infrastructure redevelopment effort among federal officials, state and local govern-
ment, residents, and businesses—is addressing flooding issues and transportation needs,
and it will provide some environmental restoration and development of much-needed
recreational space within city limits.
The Central Business District (CBD) was particularly hard hit by the recession.
Between 1990 and 1995, CBD tenants abandoned more than 3.5 million square feet
of office space, catapulting vacancy rates to nearly 40 percent. The In-town Housing
Program, run by the Department of Planning and Development, encourages market-
rate development within a one-mile radius of the CBD, or affordable housing any-
where in the city. City leaders commissioned survey research in 1993 that indicated
potential demand within Dallas County for 24,000 downtown residential units, with
much higher regional demand likely. The major focus is to stimulate private develop-
ment of 5,350 mixed-income residential units.
Affordable housing is required in all city-supported projects. Projects receiving
HUD funds must set aside 20 percent of the units for households earning 80 percent
or less of the Dallas-area median income for households of equivalent size. Where
HUD funds are not involved, the portion of the project that must be reserved as
affordable housing varies from 12 percent to 20 percent, depending on the level of
the city’s participation.
Historic buildings remaining in the CBD are seen as a rare cultural asset, and
virtually all of them are being converted to residential use. Over 2,000 residential
units have been completed, are under construction, or have been announced in the
CBD, and almost all are in historic structures.
Large-scale conversions of historic properties are a study of the difficulties infill
projects face. For instance, redevelopment of the Kirby building, a 17-story office
and commercial building dating to 1913, required approval from both the National
Park Service and the state’s historic commission. Disagreement over appropriate ga-
rage construction standards added months and cost to the construction project. In-
frastructure upgrades for older structures also can pose barriers, as was the case in
the conversion of the Santa Fe Terminal project. Conversion of this warehouse to
157 loft apartments also required an unanticipated $50,000 repair to the under-
ground storm drainage system.
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Almost $2 billion has been invested in downtown real estate in the past two
years, and virtually every major office building has changed hands in that time pe-
riod. While many factors ignite interest in downtown, not the least of which is the
expense and dearth of suburban office space, the In-town Housing Program has played
an important leadership role.
Private investment is a vital component of the city’s infill strategy. One of the
first major private investments was in a neighborhood known as the State-Thomas
District, an area of vacant land with a few disconnected structures and uses just
beyond the central business district. As city leaders recognized that housing down-
town was indispensable for a revitalized center city, the city worked with a developer
on the State-Thomas Planned Unit Development (PUD) to achieve the following goals:
• Residential use was to be dominant, while compatible uses would provide ser-
vices;
• Existing streets were to be maintained but improved, with traffic calming de-
vices;
• Destination uses were discouraged to keep traffic and parking demands man-
ageable;
• Mixing and layering of uses was encouraged;
• Parking was to be in a secondary position to enhance streetscape architectural
continuity; and
• Investment in the public domain was quite high; for instance, large street trees,
excellent lighting, and textured sidewalks were planned.
After the State-Thomas PUD obtained approvals in 1986, it took a year to put
together the project’s financing. Post Properties, a real-estate investment trust (REIT)
experienced with downtown redevelopment, is the primary developer and investor in
the State-Thomas neighborhood. Though privately driven, State-Thomas has been a
public-private partnership. In addition to approving the State-Thomas PUD, the city
created a Tax Increment Financing (TIF) district for the neighborhood, and it sup-
ported all the public space improvements, even at the high cost planned.
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Dallas was born on the Trinity River and has grown up around it. The river
runs through the heart of the city, from the northwest corner, past downtown and
southeast to the county line. Early in the city’s history, the Trinity was an important
element of the economy, but over time, has been relegated to a flooding concern. The
Trinity now flows through much of the city between levees, which have received
more attention than the river channel itself.
The Trinity River Project is a major infrastructure investment program that will
address flood threats from the river, enhance an environmental asset for the city, and
redevelop several major roads in the corridor. A combination of five separate efforts,
the Trinity River Project is an investment of
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While the Trinity River Project contains enormous highway investments, Dallas
has retained its interest in a balanced transportation network. The DART system was
created in 1983, and received dedication of some sales tax revenue to begin transit
operations in 1984. It is now a multifaceted transit agency that combines light rail,
commuter rail, HOV lanes, and bus service. DART’s ridership has exceeded expecta-
tions since light-rail operations began, and the agency won the 1997 Outstanding
Achievement Award from the American Public Transit Association.
When the current capital projects program is complete, DART’s miles of light
rail will increase from 20 to 60, its commuter rail miles from 10 to 40, and its HOV
lane miles from 18 to 100. The bus system, serving 137 routes with a fleet of 800
buses, is fully integrated into the rail system.
DART receives some of the credit for spurring and supporting center-city in-
vestment. According to DART, most office relocations in the central business district
are within walking distance of a DART station, as are several historic buildings un-
dergoing conversion to loft apartments. DART is credited with supporting the $150
million investment by Adams Mark Hotels to convert a hotel and office complex
across from the Pearl Station into the largest convention facility in Texas. The devel-
opment features 1,900 guest rooms and almost 300,000 square feet of meeting and
exhibit space. In addition, the city is working with DART to open a new public
library near the Hampton Station, and the Dallas Zoo’s attendance has increased 25
percent since the opening of a DART station. Clearly, weaving DART facilities into
Dallas’ transportation complex is helping to create infrastructure that is of great
value to investors, developers, residents, and tourists.
DART also is credited with a significant mixed-use, transit-oriented develop-
ment project underway adjacent to the Mockingbird Station. A 50-year old brick
warehouse is being redeveloped into lofts with ground floor specialty retail and res-
taurants. The 6.75-acre site also will include a 500,000-square-foot office tower.
Additional retail, hotel, and conference centers also are planned for the site. Kenneth
Hughes, a Dallas developer, noted that the project would not have proceeded with-
out the DART station and that projects associated with the DART system will enjoy
a distinct advantage over other similar projects.
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L LC CS ET SRS AF TU EL G II NE FS I L L D E V E L O P M E N T
BROWNFIELD REDEVELOPMENT
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A key issue for Dallas, which is competing in a burgeoning region, is job creation and
retention. The city’s economic development initiatives, which include the Dallas Brown-
fields Program outlined above, are quite diverse, ranging from small business incuba-
tors to tax abatement policies. The following list provides a snapshot of the eco-
nomic development net cast by the city.
Bill J. Priest Institute Business Incubator—The Business Incubation Center has 30,000
square feet of space available to young companies for up to four years. The Center
also provides business management services.
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Business Parks—Six industrial parks are targeted for business attraction and expan-
sion in the City of Dallas. The City of Dallas Business Development Corporation
administers the program in the six facilities.
CONCLUSION
Infill development is proceeding in Dallas, and a multitude of public programs,
private investments, and community efforts have created a positive framework for
the city’s revitalization. Much remains to be done, of course, and effective implemen-
tation of numerous programs will determine whether investments really become rel-
evant to South and West Dallas, the city’s poorest sections. While most observers
believe the downtown has reached a critical mass of residential use to support retail
and other services, public and private investment must continue to solidify this growth.
Dallas already is seeing the fruits of its labor in a revitalized downtown and the
approved Trinity River Project. Connecting the many elements of the Dallas “infill
development strategy” has been the commitment of city leaders. Key city depart-
ments—Public Works, Housing, and Economic Development—have made revitaliza-
tion a priority at the highest level. Former Mayor Steve Bartlett and current Mayor
Ron Kirk have recognized the opportunity to make the city a competitive force in this
fast-growing region.
The Dallas Plan has been an important coordinating document, in part because
its action orientation gave it a unique currency among comprehensive plans. Yet it
took the shear force of will, as well as the resources and leadership of the mayor’s
office, to make many of these ideas a reality.
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DENVER, COLORADO
The Denver metropolitan area, comprising the city and 49 municipalities, is
trying to balance a booming economy with environmental and social needs. While
the region attracted 161,000 people from 1990 through 1996, the Denver Regional
Council of Governments (DRCOG) estimates another 770,000 will arrive by the
year 2020, pushing the metropolitan head count to 3 million. Current land use stands
at just over 500 square miles, yet the pressure to develop is staggering, and the de-
mand for housing outstrips supply significantly.
Even in this boiling real estate economy, infill development is challenging, and
two key strategies are important to success in the Denver metro area:
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economy and real estate market. The business alliance enables Denver to compete for
investment with the surrounding—and booming—suburbs. DDP’s growth and evo-
lution have been tracked by the Urban Land Institute and International Downtown
Association, which credit its structure and mission with the ability to chart successful
development strategies for the city while maintaining flexibility to change course.
Warhover acknowledges that DDP’s most important role is that of advocate,
both for recruitment and retention of downtown jobs. DDP tries to convince the
business community nationally and regionally that Denver is the regional business
center in Rocky Mountain region, pooling the economic energy for cities and towns
reaching to Wyoming, South Dakota, or Kansas.
DDP’s vision is to transform Denver from the western cow town of the 1970s
and the oil-rich boom town of the 1980s to a regional cultural, entertainment, and
sports mecca for the millennium. The city’s recent roster of development successes
includes:
and shops had opened along and around Blake Street. a major advantage in
While the city has achieved a major advantage in having secured this tourist/ having secured a
additional infill development. One challenge comes from suburban office parks, which entertainment, sports,
are wildly successful, especially with the growing number of high-tech companies in and other development
the region. Denver also faces cutthroat competition for retail from the suburban projects.
counties, whose budgets are based on the retail sales tax and so are constantly en-
gaged in predatory practices to lure retail into their jurisdictions.
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• Limit urban development to within a The Downtown Denver Partnership is both the beneficiary and
700-square-mile area around the metro the victim of extensive strategic planning undertaken by the city in
Denver area, a 165-acre expansion over an effort to stave off financial disaster. While the DDP grew out of
current land use. the need to revitalize the downtown and ramp up the local economy,
• Preserve open space through a regional the competing urban centers surrounding Denver also benefitted
system that protects resources and pro- from an amalgam of growth management imperatives.
vides recreational opportunities. Though Colorado has no state statute requiring counties to
• Allow freestanding communities (e.g., participate in growth management strategies, Governor Roy Romer
Boulder, Longmont, Brighton, and in 1996 launched the Smart Growth Initiative in order to counter
Castle Rock) to retain their individual sprawl and attract infill development on a region-by-region scale.
character rather than become absorbed One of the first groups to answer the governor’s challenge was the
into the general urban area. Center for Regional and Neighborhood Action, a relatively new
• Develop a balanced, multi-modal trans- nonprofit organization headed up by John Parr, who for ten years
portation system, including rapid tran- directed the National Civic League; former Jefferson County com-
sit, buses, regional beltways, and bike missioner Peter Kenney; and Katherine Archuletta, an aide to former
and pedestrian systems. Mayor of Denver and U.S. Secretary of Transportation Federico
• Encourage communities to create urban Peña. CRNA, which is fluent in the principles of town planning,
centers as a way to promote walkability, runs interference among stakeholders, builds coalitions, and teaches
reduce auto dependence, and make mediation skills—important activities that local government offi-
more compact land uses attractive and cials either don’t or can’t do well.
efficient.
CRNA led the Denver Regional Council of Governments through a
• Ensure environmental quality, with spe-
needs assessment and priority-setting process, resulting in the Metro
cific attention to the region’s air pollu- Vision 2020 Plan. This plan, based strongly on the input of envi-
tion problems, as well as reduce im-
ronmentalists and businesses, outlines means to reinvest in existing
pacts on water supplies through an in-
communities.
tegrated regional watershed protection
The Metro Vision 2020 Plan, completed in 1997, is the blueprint
plan.
for growth management around which other discussions revolve.
Source: Metro Vision 2020 Plan, Denver
Though adherence to its principles and goals is entirely voluntary,
Regional Council of Governments, 1997.
the plan presents a fairly comprehensive cataloguing and account-
ing of what the region’s 49 municipalities stand to lose and gain
depending on their approaches to growth issues.
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the city’s altitude, emissions level, and proximity to the Rocky Mountain range, gives
rise to the ubiquitous “brown cloud” of noxious contaminants that some public
health officials attribute to the city’s high asthma rates and other respiratory prob-
lems among children, the elderly, and those with suppressed immune systems. Thirty
miles northwest of the city, Boulder is now beginning to generate its own brown
cloud, especially during rush hour and on hot summer days.
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Governor Romer’s Smart Growth Initiative focused largely on the need to re-
duce congestion through transit and highway investments. Noting the public’s per-
ception that traffic was out of control, a Blue Ribbon Panel on Transportation took
90 days to paint a picture of the transportation needs facing Metro Denver. The
panel, composed of environmentalists, local officials, and business leaders, initially
identified the massive budget increases needed to reduce the area’s traffic congestion
and smog. Stakeholders, however, quickly sought to change the focus from transpor-
tation investments and the divisive issue of “sprawl” to the more unifying message of
improving the quality of life for Denver area residents. A diverse coalition then pro-
moted a “Guide the Ride” referendum—calling for a small increase in the Regional
Transportation District sales tax in order to pay for expanded commuter rail and bus
transit systems—but voters, largely in auto-dependent suburbs, rejected the referen-
dum. CRNA rallied after the defeat and sought to expand its coalition by linking
transportation-transit funding with infill development and senior citizen needs.
Denver is unique in that it still has numerous large parcels of land available for
development or redevelopment. With the closing of the Lowry Air Force Base, for
example, the city has an additional opportunity within its boundary. The Lowry
Redevelopment Authority pitches the project as a “vital new center of education,
employment, recreation, and gracious neighborhood living—all within a self-con-
tained urban community in the heart of metropolitan Denver.” Though the develop-
ment will not be completed until 2004, some residents began moving in April 1998.
Lowry features mixed-use development, integrating office retail and commercial space
with education and training centers, as well as plenty of housing. Twelve percent of
the housing is being set aside for low-income families.
Housing is a key element of Denver’s infill strategy. The DDP and the City of
Denver in 1992 formed the Center City Housing Support Office which sought to be
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pedestrian-friendly city.
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MANCHESTER, VERMONT
Early in 1998, an editorial in the Rutland, Vermont, Sunday newspaper railed
against sprawling commercial development and reminded readers that “tourists come
to Vermont to indulge the memory of livable communities.” The reality of “livable
communities” is evident but uneven across the state, despite a vocal commitment by
many Vermonters to preserve the small-town way of life. In Vermont, many residents
regard the loss of an acre of farmland or the closing of the local hardware store more
a sign of civic failure than of the casualties of a changing economy.
Manchester, a town of barely 4,000 nestled in the foothills of the Green Moun-
tain National Forest in southwestern Vermont, wants to maintain a balance between
a thriving downtown and open lands. It is a gold coast tourist town, having grown
up around the ski industry since the 1940s and subsequently nurtured a popular
summer resort-town atmosphere centered around arts and music. Part-time residents,
retirees, and wealthy out-of-state benefactors have donated considerably to the town’s
cultural and educational infrastructure, adding a skating rink, performing arts cen-
ter, and library.
In recent years, the town also has attracted factory outlet stores. Like the towns
of Kittery and Freeport, Maine, national brand name retailers and discount outlets
have flocked to Manchester’s historic downtown, bringing jobs but also attracting
tourists and traffic. At the same time, local residents now must travel half an hour to
Bennington or Rutland to shop at department stores that can no longer afford down-
town Manchester rents.
The proliferation of Manchester’s stores sector generates passionate debate about
the future of the town’s growth. While opinions exist at either extreme—abolishing
outlets altogether or allowing them even greater latitude to expand—most residents
want to discourage continued proliferation of outlet stores. When the town commis-
sioned a study of its commercial zone build-out potential in 1993, many town resi-
dents were shocked to learn that existing zoning ordinances and regulations would
allow even further expansion of the town’s outlets, making Manchester one of the
state’s largest retail centers. Residents and town leaders subsequently began to take a
hard look at how the town’s regulatory authority can be used to help diversify the
economy, offer more affordable housing, and preserve Manchester’s streetscape for
pedestrians—residents and tourists alike.
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MANCHESTER AT A GLANCE
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ticular retail sector. In the meantime, the city is on a mission to limit traffic in the
core; reduce curb cuts to make a friendlier, pedestrian-oriented environment; and
invest in services and amenities that benefit residents and visitors alike.
Residents and town leaders have been engaged in a planning process for at least
the past five years to restore a sense of balance to the town’s physical, economic, and
aesthetic character. A 1996 vision statement pressed for an infill development strat-
egy that would diversify the economy and provide affordable housing.
Town Planning Director Lee Krohn identifies several regulatory aids that en-
courage infill. A 30-year-old law, for instance, restricts commercial and retail devel-
opment to the downtown core, favoring high densities downtown and residential
and open space on the periphery. The town’s sewer and water system accommodates
this land-use pattern. Also in place is a design review process that subjects all new
development proposals to high-quality design and construction standards, including
harmony with predominant architectural styles, character, and historical attributes.
This design review process also applies to standards for signage and lighting, which
often can spell the difference between tasteful and tacky tourist destinations.
In addition to these tools, Krohn notes that the town recently adopted a “goal-
based regulatory” strategy to give it latitude with certain zoning requirements in
order to design a livable, pedestrian-friendly community. For example, the use of
conditional-use criteria allows the city to reject a project if it fails to mitigate off-site
problems such as traffic circulation. This approach evolved in response to the Build-
Out Analysis which criticized the existing regulatory structure, but it also reminded
residents that many zoning ordinances are adopted “with an imperfect understand-
ing as to how their rules will shape development. Often the development that does
occur under these rules is not what they want to see.” For example, current code aids
the proliferation of retail outlets often because those stores have been able to con-
form to the “footprint size limit” imposed on the properties, where alternative uses—
such as hardware, variety or department stores—have been blocked from locating
downtown. With this in mind, the planning committee reviews projects as much on
the basis of how they look and feel, as on how they function. Using a goal-based
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regulatory approach to zoning and permitting, the town has the authority to empha-
size and value the impact of a project’s aesthetics and function in a community.
Town planners want to extend the goal-based regulatory approach to the com-
mercial core and to support mixed-use development as means to preserve the city’s
character. In addition, the transportation plan recommends breaking up the commer-
cial core into five subareas and applying appropriate design, site, sign, and use crite-
ria to them. The further use of overlay districts will help the town delineate various
use areas, ranging from the intensively developed commercial district, to the open
space districts designated for forests and recreational uses. The town also uses over-
lay districts to protect wetlands and address flood control.
In this context, the town is pursuing three primary goals to restore its balance:
reduce traffic congestion; increase affordable housing units; and diversify commer-
cial and retail activity downtown.
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HOUSING
COMMERCIAL CORE
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Orange County’s older developed areas are small and scattered quality along the coast, inland areas are
throughout its northern and western reaches. Growth is occurring in typically degraded. Like many states, Cali-
undeveloped areas within the county where land is less expensive fornia faces its steepest challenge in lim-
and service levels are improving. Many of the municipalities that iting emissions from mobile sources, in-
experienced tremendous growth in the 1950s are having difficulty cluding automobiles and trucks. Unfortu-
competing with new growth centers. nately, Southern California is witnessing
The county’s infill development challenge is best understood as the fastest growing vehicle-miles-traveled
an exercise in managing neighborhood succession, according to Rick (VMT) rate in the country. The region, built
Cole, city manager of Azusa and a longtime observer of growth and on automobile transportation, now con-
development in California. Even as small downtown areas compete fronts the attendant congestion and air
for residents and businesses to maintain the tax base, they face obso- quality problems.
lescence as retail moves to regional malls and other large shopping
venues. In Orange County, as elsewhere in California, the intense
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pressure to maintain a strong commercial tax base drives municipal economic devel-
opment efforts.
In addition to these competitive pressures, municipalities must meet a 20-per-
cent affordable housing set-aside requirement to qualify for tax increment financing
(TIF). As a result of the amended California Redevelopment Act that was intended to
reverse the trend of building more lucrative commercial projects at the expense of
housing stock, municipalities cannot access any TIF revenues unless affordable hous-
ing is actually built. On the positive side, the new requirement has generated interest
in building mixed-use projects that incorporate commercial space as well as housing
for a variety of income levels. The City of Brea provides an excellent example of such
infill development.
BREA
Located at the county’s northeastern corner, Brea and surrounding cities are
affected directly by the movement of residents—and jobs—to the “inland empire”
counties of San Bernardino and Riverside, where land and housing are less expensive.
Brea leaders responded by focusing their redevelopment efforts on the community’s
downtown, the historic hub of an active oil economy.
The city, whose name means “tar” in Spanish, began losing retail and commer-
cial businesses in 1974 when the 57 Freeway was completed just east of downtown.
Abandonment of aging housing stock followed, until vacant buildings dominated the
once thriving area. Into the 1980s, downtown Brea hosted numerous vacant struc-
tures originally built for oil field workers. Most of these houses were in poor condi-
tion; indeed, some had never been tied into the city sewer system and were still served
by aging septic systems. The city initiated several condemnation proceedings, ulti-
mately assembling and clearing 55 acres of land.
City leaders in 1972 formed the Brea Redevelopment Agency (BRA) to speed
revitalization of the older commercial area. While the 57 Freeway continued to drain
economic activity away from downtown, it also updated and improved access to the
area. In 1977, the agency completed its first project, the Brea Mall near downtown.
Expanded and upgraded since then, the mall has become the region’s second largest,
generating $350 million in sales annually.
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In addition to the new construction, the Brea Redevelopment Agency has un-
dertaken rehab projects to serve very low-income families. The most ambitious ex-
ample is the South Walnut Apartment Complex, located close to downtown, that
was converted from five deteriorated and overcrowded apartment complexes with
multiple owners to a nicely rehabilitated, and now well-managed, 51-unit apartment
complex. The city, at the request of a task force of tenants and neighbors, acquired
the property and funded relocation for all residents. Through a competitive bidding
process, La Habra Neighborhood Housing Services was selected to rehab and then
manage the property. La Habra put together a financing package that included tax
credits, federal HOME grants, Affordable Housing Program grants from the San
Francisco Home Loan Bank, as well as below-market interest mortgages from public
and private lenders. The $4-million project is complete and occupied by very low-
income tenants. In addition to a clean and safe environment, the complex provides a
community center with computer facilities, onsite tutoring, and other services for
tenants.
Brea’s revitalization efforts are notable on several fronts and instructive to other
municipalities across Orange County. First, the early and consistent involvement of
the public through the downtown charrette and follow-up events was important to
forge a vision that could guide difficult choices throughout the redevelopment. Sec-
ond, inclusion of a strong housing program helped create a dynamic downtown that
is accessible to low- and moderate-income families as well as those who can afford a
more expensive location. Third, Brea’s redevelopment staff has leveraged success-
fully the human and financial resources of several partners.
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PORTLAND, OREGON
Portland’s infill efforts are characterized by significant public and private efforts.
Local officials and community stakeholders have worked together to increase the
number of new infill projects, expand the amount of open space and public places,
and promote more productive use of existing commercial and industrial centers. Good
planning has become a key element in the city’s efforts.
Portland, which pioneered the “urban growth boundary” concept to help limit
unnecessary and unplanned sprawl, is now 90 percent built out. Faced with tremen-
dous growth pressures —the city anticipates an additional 500,000 residents by 2020—
many of the city’s activities now focus on infill. Such efforts include plugging in the
remaining small spots, and working to remediate and restore previously-used sites
for new uses. The city views infill development as a key element in its efforts to
reduce the level of capital investment needed for adequate transportation and utility
services, and to lower the cost of city services.
Much of the city’s infill effort has a residential component to it, and Portland
has brought a considerable number of housing units to older downtown and near
downtown areas. Portland’s central city area is the target of a residential “live where
you work” ethic, and several creative alternative housing projects are underway in
the central city area. In addition, city officials are endeavoring to address concerns
over affordable housing, particularly affordable housing near employment opportu-
nities—concerns that grow more critical as market forces and growth pressures push
the price of housing upward. Portland is now one of the nation’s most expensive
communities in terms of housing costs, and the city is exploring ways to encourage
affordable housing while promoting infill development. These activities include re-
placement ordinances that can preserve existing affordable housing; inclusionary
zoning, which would require a certain percentage of affordable units to be built along
with new market-rate housing; and density bonuses, which would enable developers
to build more housing at greater densities if they meet an affordable housing quota.
Portland has tallied some significant successes with infill housing projects, but
city planners have recognized that more than housing is needed to make a viable
urban community; accordingly, they are promoting mixed-use infill development to
complement the housing. Retail outlets, such as the Adidas store in the enterprise
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community area, have provided both needed services and jobs for local residents.
Museums and cultural attractions, such as the Oregon Science and Industry Mu-
seum—built on a brownfield—can attract tourists and residents alike.
The extensive and intensive community visioning process undertaken for the
Martin Luther King Jr. Boulevard transportation project articulated several guiding
principles for infill, which characterize most of the activities currently underway in
Portland. They include:
The North Macadam area, near downtown and adjoining the Willamette River
and other residential neighborhoods, is a 145-acre, mostly-vacant tract that includes
a former steel fabrication plant, a barge construction operation, and several other
industrial sites. All in all, five major property owners are located in the North Mac-
adam area, and they plan to redevelop the properties themselves. So far, they have
created a street grid for the area, and they intend it to be amenable to pedestrians,
bicyclists, mass transit, and cars alike. Property owners also have sought zoning
changes, away from industrial uses, to reinforce the street plan they have devised.
As part of their effort, owners have encouraged the city to analyze transporta-
tion needs for the area, consistent with the mixed-use, commercial-residential vision
they have mapped out. This analysis is examining the area’s capacity, developing
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options for expanding and improving access portals, exploring various transit mixes
(including an extension of Portland’s light-rail system), and considering new transit
alternatives such as a streetcar line through the area.
Construction is underway to launch new site uses that eventually will include
1,725 units of mixed-income and affordable housing (about 65 percent as rental
units), and 1.5 million square feet of commercial and office space—a $460-million
investment that is expected to generate 8,000 new jobs. In addition, Portland plans
to extend the Waterfront Park through this site, preserving open space and creating
increased access to the Willamette River. One of the property owners in North Mac-
adam, the Zeidel family, is working with the Oregon Health Services University to
establish a Center for Womens’ Health on that site.
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$600 and $1,500 per month—for artists, Internet business owners, and other profes-
sionals who will work out of their homes.
The River District contains more than 100 acres of contaminated, underused
Burlington Northern railyards and other industrial operations. Portland officials cur-
rently are working with several private partners to clean up these sites and build a
high-density, urban community located near the central business district. The River
District project will consist of four discrete elements: Union Station/Old Town; Ter-
minal One; the Pearl District; and Tanner Creek Basin/Park.
The planned development will feature 5,000 new housing units; the city is re-
quiring that at least one-third of them be targeted to low- and moderate-income
families. In spite of this requirement, the only public subsidies needed by the devel-
opers were a tax abatement and the availability of low-income housing tax credits
for the 199-unit Pearl Court complex within the River District. In fact, the develop-
ers also are paying for nearly $2.5 million in new public improvements in the Pearl
District portion, along NW 11th and 12th Avenues and NW Hoyt and Johnson
Streets—ornamental street lights, new sidewalks, and street trees to enhance the ur-
ban neighborhood feel of the area. River District housing is also taking advantage of
identified demographic shifts evident in Portland and other cities, namely, the grow-
ing interest that young singles and empty nesters have in living in the central city. The
developer thought it would take 24 months to fill the complex; yet it was almost fully
occupied in 13 months.
The renewed River District also will feature 1.2 million square feet of office
space, and 300,000 square feet of retail. A privately-financed, $4-million classical
Chinese garden is being designed for the Union Station/Old Town area.
The Albina Corner project is located on Martin Luther King Jr. Boulevard, the
main street of several inner-city neighborhoods that form the core of Portland’s fed-
erally designated enterprise community. Albina Corner is a mixed-use project on
three-quarters of an acre that includes 48 units of low-income housing built over
12,000 square feet of commercial space, including a child care center. It has become
a real “gateway” project for the Albina community, and is one of the first transit-
oriented developments completed outside of Portland’s downtown area, being adja-
cent to a bus line and near a major light-rail station.
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At the time of acquisition, the site housed an old car lot, a car wash, and a
small, vacant office building that dated back to the 1920s. The project was made
possible in large part because of a zoning change approved in 1993 by the city’s
planning commission. Facing serious deterioration of the existing commercial strip
along King Boulevard, the neighborhood urged adoption of the Albina Community
Plan, which allowed for high-density housing and mixed-use development—includ-
ing apartments over ground-floor retail shops.
Albina Corner features a number of innovations that make it an excellent ex-
ample of a practical infill effort with important community benefits. For instance, it
uses shared parking to reduce the number of spaces required; skeptical lenders were
convinced that this would work only when they were shown photos indicating that
apartment parking lots remained virtually empty during the work day. The building
was set back two feet from the allowable boundary to widen the sidewalks at its
corner location and invite pedestrian traffic. A central courtyard has been built over
the first floor shops, open to the sky; the three floors of residential units are located
around it. The courtyard has trees, a fountain, built-in seating, and enough room for
children to play.
The first-floor commercial enterprises—including a bank, coffee shop, and art
gallery—support the project, covering much of the maintenance costs, while provid-
ing residents on the upper floors, especially senior citizens, with handy access to
banking and other services.
The $4.4-million Albina Corner project was financed through a complex com-
bination of 11 different public and private construction and takeout loans from banks
and other sources. Low-income housing tax credits also were used. Funding to ini-
tiate the project came in the form of a $100,000 grant from the Oregon housing trust
fund. With minimal advertising, the apartments were leased within six weeks, well
ahead of schedule, and 90 percent of the commercial space was leased prior to con-
struction.
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Glossary
Brownfields: Abandoned or under-used industrial or commercial sites where redevel-
opment is complicated by real or perceived contamination.
Density: 1) The number of residences per acre; 2) population by the acre or square
mile. Also referred to as gross density (the density of all land areas with a site or
municipality, including nonresidential land) or net density (the density of residential
land only). Density can be carefully designed to be extremely livable. Well-designed
density is a critical component of successful infill.
Density bonus: A reward to a developer who provides a community benefit such as
affordable housing or open space. The bonus is permission to build additional square
footage or more units than zoning would otherwise allow.
Excellent design: Not merely the design of a building; but the design of all elements
vital to the creation of healthy communities, from the shop sign to the regional tran-
sit system.
Exclusionary zoning: Zoning that restricts lot sizes uniformly, usually to one or two-
acre parcels per single-family house. Exclusionary zoning allows only one type of
housing to be built. It encourages the development of large land parcels, often con-
sisting of high-priced homes, usually at densities too low to support transit or neigh-
borhood retail.
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Smart Growth: A blanket term for the congruent movements to channel new growth
into existing communities and build new subdivisions as compact neighborhoods as
a means of curtailing sprawl and its effects.
Successful infill development: Successful infill development makes cities and towns
more livable while conserving natural resources at the periphery of the metropolis. It
replaces the need for sprawl by drawing development away from natural areas and
farmland and concentrating economic growth in existing urban areas.
Unsuccessful infill development: Single-use projects with negative effects that far
outweigh their economic or social benefits. Unsuccessful infill disrupts neighbor-
hoods, historic districts, or natural environments; creates traffic congestion and air
pollution while failing to provide alternatives to driving; contributes less than its
share to the local economy; or otherwise detracts from the vitality of an existing
community. Examples can include poorly designed or located residential subdivi-
sions, big-box stores, sports stadiums, or office parks.
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Reading list
A Better Place To Live: Reshaping the American Suburb
by Philip Langdon. Harper Perennial, 1995.
How Smart Growth Can Stop Sprawl: A Fledgling Citizen Movement Expands
by David Bollier. Essential Books, 1998.
Infill Housing: Opportunities and Strategies for Inner-City Neighborhoods
by Diane R. Suchman. Urban Land Institute Working Paper 653. Urban Land Institute, 1998.
Suburban Nation
by Andres Duany, Elizabeth Plater-Zyberk, and Jeff Speck. North Point Press, 2000.
The Emerging Social Metropolis: Successful Planning Initiatives in Five New World
Metropolitan Regions
by Phil Heywood. Pergamon Press, 1997.
The Geography of Nowhere: The Rise and Decline of America’s Man-Made Landscape
by James Howard Kunstler. Simon & Schuster, 1994.
The Next American Metropolis: Ecology, Community, and the American Dream
by Peter Calthorpe. Princeton Architectural Press, 1993.
The New Urbanism: Toward an Architecture of Community
by Peter Katz. McGraw-Hill, 1994.
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