Patrick F Kane

This paper has been prepared by Patrick F. Kane as a part of a presentation for the Fairfax County Committee of 100.

WELL, THERE GOES THE NEIGHBORHOOD....
OR, ISN'T THERE SOME VALUE IN COMPREHENSIVE COMMUNITY
REINVESTMENT?

INTRODUCTION

 

Fairfax County has been active in efforts to control land development for many years. Is it now the time to focus on the already built-up areas and establish a strategy to manage the changes in these areas? This paper addresses the subject form three points; establishing a common vocabulary to discuss the issues, offering Comprehensive Community Reinvestment as a generic term to identify the subject; a discussion of the inevitability of change; and, a proposal for managing the process.

ESTABLISHING COMMON VOCABULARY

 

The impetus for this paper is concern about the need for changes that have, May, or will occur in. the established, built-up neighborhoods and communities in Fairfax County. In some places, this is called "redevelopment" planning. However well suited the team may seem, it is now used by many in Northern Virginia to describe a specific process of replacing low-intensity offices with high-intensity offices. Another word has come forward -"revitalization" which is being used to define a process of cosmetic improvement to the streetscape and building facades. Both of these activities are potentially beneficial, but, in the context of this paper, too limited. Therefore, it is clear a new term is needed. As an alternative, the term Comprehensive Community Reinvestment is offered. To understand this term the following expansion of the definitions of each of the words is offered.

The term reinvestment should be fairly obvious; it is the re in fusion of capital dollars and human energies. The human energies are initially focused on determining how the area should function and look-how can it meet the needs and expectations of those effected people who live in an effected area, shop in it, do business or secure services from it. The financial investments include public works and community facility expenditures of government, building repair, improvement and modification by existing owners and occupants, or new investors, as well as the entrepreneurial investments in forming, expand this concept served as the basis of a number of classes and lectures conducted by Patrick Kane, or relocating businesses.

Comprehensive means looking at everything in context. Road and streetscape improvements must relate to the function of the areas they serve and enhance. Specific areas must be understood in relation to their surrounding areas. Understanding the sense of comprehensive, however, depends upon an understanding of the use of the word community.

 

In this context, community is used to describe both a physical area as well as the community of interests--the activities and functions addressed on a day-to-day basis. This means the place where people live as well as where they shop and secure services such as dry-cleaning, auto repair, where they go to school and seek recreation and social interaction. This may also include places where people work.

The words used above to define the term comprehensive community reinvestment are subject to many

individual interpretations.  So, too, are many of the words that could be used in establishing needs and describing existing conditions. E.g., an area is physically deteriorated, suffers from delayed maintenance, is underutilized, evidences obsolescence, has reached economic maturity, isn't responsive to current market opportunities, doesn't provide current needs, lacks character, etc. Other descriptions that could be used include: “There is a parking problem, traffic is a mess , you don't feel safe walking there;, it isn't the same anymore.”

When thinking about what to do about the “conditions” introduced above, the vocabulary can evoke some volatile emotional responses. Government should intervene and impose controls. They should consider use of the power of condemnation and introduce special tax districts. Developers should be invited and encouraged to propose new development. They should be offered subsidies. The rights of existing property owners should not be threatened. Deals should be made between the government and the private sector. All of the stakeholder should be involved in the process.

Effective involvement by all the stake holders requires a common understanding of the vocabulary.

 

THE INEVITABILITY OF CHANGE--THE NEED FOR A STRATEGY TO MANAGE CHANGE.

 

"So we have agreed on some words, who needs them. We moved into this neighborhood because we like it. My business is doing all right. If you would keep all the outsiders’ cars away, it would be OK again. And if those merchants would offer more variety and better prices, we would shop there. Mass transit would be good to let the kids go where they want. Can you stop the commuters from using my street, or in my customers’ parking lot? How come there are so many renter occupied homes. Why can't I find good people to work for me?  My kids had to move to they can't afford anything around here. I heard they want to close the school because of declining enrollment."

These are all questions that have been asked in communities elsewhere in the country. Those that have recognized the inevitability of change, addressed this phenomenon as an opportunity and

Taken steps to manage the process have benefited. Many that have ignored this opportunity have opened themselves to problems of significant social and economic consequence. Could this happen in Fairfax County? Is it happening?

HOW TO MANAGE THE PROCESS

 

Webster's definition of redevelopment is: to develop again; to tone by a second development process. The definitions of development include: to evolve the possibilities of; to make more available or useful. Both of these definitions connote positive results. Unfortunately, the terms aren't considered positive by many in Northern Virginia. In fact, the word redevelopment is considered by many to be only the replacement of low intensity offices with higher intensity (undesirable) offices. The following is a discussion of the redevelopment, or a comprehensive community reinvestment process based on over 25 years study and involvement, together with an analysis of the current environment in Northern Virginia.

 

Community reinvestment is an inevitable process which has as great an impact on the quality of life of a community as has new development. In fact, reinvestment often has a greater impact because of its relationship to in-place institutions, facilities, land uses and life styles.

 

The inevitability of redevelopment is caused by several factors. The first is real estate economics. The depreciation of an investment property is often as important to economic feasibility as cash flow and appreciation. Although the recent tax law revisions will change this, a great many real estate investments built in the sixties and seventies were structured with a 20 to 30 year investment life. This economic life was also reflected in financing terms. Northern Virginia has numerous areas at, or approaching this age which will trigger sale or reinvestment.

 

The second factor is building condition. The life expectancy of many major building components (roofs, mechanical systems, fixtures) also range between 20 and 30 years. When high cost repairs are needed, it is prudent to examine alternative use for the building and/or property.

The third factor relates to change: life styles, economic forces, market conditions, and development patterns. This is the factor which creates the greatest pressure for reinvestment in Northern Virginia. This area has undergone unprecedented change in almost every characteristic, evolving from a suburb supporting and supported by the District of Columbia to self- sustaining economic and cultural entities. These changes have made older developments-­residential, commercial office and retail, and institutional--candidates for change.

 

There are some situations where reinvestment isn't inevitable; reflecting far sighted initial planning, very effective maintenance and periodic improvement, or unusual economic conditions. However, when the factors indicating reinvestment to be appropriate are ignored, a deterioration cycle is likely to begin. Occupants are more likely to be second line businesses, rents decline (or don't increase at the rate of prime properties), and maintenance and repair is put off.

 

Given the inevitability of change, and thus, the inevitability of reinvestment, a strategy to manage the process to assure the results are positive, advancing both community and investment objectives, is essential for both local government and the private sector.

 

 

Plan Re-evaluation

 

Management of the redevelopment process logically begins with a re-evaluation of a community's Comprehensive Plan. The steps in the re-evaluation should start with an analysis of the community's goals and desires, addressing:

 

·        what is missing or needed

·        what factors or conditions are undesirable

·        what factors or elements should be protected

 

It should be noted Fairfax County is continuously in the process of reviewing the Comprehensive Plan, but it is unclear if this will include consideration of the reinvestment potential.

 

 

Identify Vulnerable Areas

 

A second step should be an identification of areas vulnerable to change. Typically, this step will look at: age; rent values or sales prices in relation to comparable property elsewhere; site and building condition; land transfer activity or assembly; and, the nature of the occupant/uses.

 

 

Establish Redevelopment Goals

 

Combining knowledge of the areas where change is possible or probable with the results of the goal analysis provides the foundation of a redevelopment strategy. Objectives must include desired uses, development patterns, and intensity spaces for interactivity, appearance, circulation and access, and community facilities. Impact on adjoing areas.

 

For example, redevelopment objectives for an area might include:

 

·       establishing more diversity of uses by the addition of residential and service uses within commercial areas

 

·       the reduction of traffic interruption by sharing driveways and access points

 

·       an increase in density to justify mass transit

 

·       a provision of public open space, day care, the performing arts or other community facilities.

Participants in the Process

 

Participants in the formation of the objectives must include three groups - government (local and regional), citizens (particularly from the impact area), and, most importantly, property owners, tenants and investors. Unlike raw land development, the nature of the in-place investment, which will be diverse, must be given particular consideration.

Tools Available to Manage the Process

 

The next component of the strategy is identifying the tools and techniques to achieve the reinvestment objectives. Northern Virginia has typically looked to zoning as the primary tool for development control. In the case of reinvestment, zoning has only limited value - primarily because zoning stipulates what-can't be done and not what should be done. Redevelopment controls must provide for cross easements and off-site relationships, urban design guidelines, and incentives for meeting development objectives. What should be done is more influenced by incentives and a pro-active partnership of public and private interests.

 

 

Government Role

 

Two sources of incentives are governments and the communities themselves. Government incentives can take many forms, including assistance in land re-assembly, financial support, increased densities, technical and marketing assistance, and the provision of public facilities. Communities can provide incentives by supporting acceptable development proposals or not engaging in prolonged debate of proposals consistent with accepted goals.

 

 

To illustrate how government incentives can work, several examples can be addressed.

Many potential reinvestment areas, although dominated by major users, have been subdivided into small or irregular parcels. These parcels, by themselves, can't be redeveloped or will inhibit more comprehensive reuse of the major areas. Governments can use their power of eminent domain to condemn, to facilitate assembly of sites which can logically accommodate desired reinvestment.

 

Financial support can be provided from: government backed bonds (Economic, Development Authority); other loans and grants (a limited resource is available through Community Development Block Grants); or, waivers of development fees. Project financing can also be aided by expedited review procedures. Increased densities, or development rights, although a mechanism involving zoning, can be offered to developments consistent with redevelopment goals, e.g., i.e., an office density increase if affordable housing is included.

 

Technical assistance can include professional advice on adoptive reuse, preservation of existing buildings, and design, as well providing market research and promotion materials.

Facilities typically provided by government in conjunction with redevelopment include shared off-street parking areas or structures, public plazas and walkways, day care facilities, or pubic facilities (libraries, meeting rooms, etc.).

 

 

Citizens’ Role

 

The citizens’ role in an effective comprehensive community reinvestment process begins with a willingness to become informed and to give logical consideration to their individual goals and desires. This is in contrast to the emotional responses of "not in my back yard", "stop everything, things are bad enough", and "don't change anything". After thoughtful consideration of their objectives, citizens must be willing to share their thoughts with their elected and appointed representatives, and show support for reasonable proposals.

 

 

Private Sector Role

 

The third group of participants in an effective reinvestment program is the property owners and occupants, which may include initial developers or occupants or those who later bought in because of the intrinsic value. The issues this group must address now are significantly different than the issues they considered initially. Some potential redevelopment areas may already have been acquired by redevelopers. Seldom, however, will any one group have the level of control found in new development. As pointed out previously, land ownership will be fragmented.

 

Strictly private efforts to accomplish redevelopment generally try to secure as much control as possible, and plan within these parameters. Unfortunately, this frequently results in development compromises. "If this parcel could be included, if that driveway/access road could be used, if that use could be moved”--are questions that, if answered, might result in significantly better redevelopment. Strictly private redevelopment seldom has any incentive to address community goals that don't result in an economic return. The quality of redevelopment is also compromised by the condition of the surrounding environment, onerous government controls or constrictive community attitudes.

 

Public efforts at managing or accomplishing, reinvestment, which haven't involved the private sector from the outset, have generally resulted in nice ideas, good design proposals, reflective of community interests and no action.

 

 

Public/Private Partnerships

 

Given the above scenarios, the last element in a successful redevelopment strategy is a procedure to secure pro-active public/private partnerships and encourage partnership and/or cooperation among all economic interests. This begins with both sides participating in the formation of the strategy. As governments begin to examine redevelopment, they should reach