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Attracting Infill Development in Distressed Communities: 30 Strategies

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Attracting Infill Development in Distressed Communities: 30 Strategies United States EPA 230-R-15-001 Environmental Protection Agency May 2015 www.epa.gov/smartgrowth ATTRACTING INFILL DEVELOPMENT IN DISTRESSED COMMUNITIES: 30 STRATEGIES Office of Sustainable Communities Smart Growth Program Attracting Infill Development in Distressed Communities: 30 Strategies Acknowledgments The U.S. Environmental Protection Agency (EPA), through its Office of Sustainable Communities, managed the preparation of this report. This report has been subjected to the Agency’s peer and administrative review and has been approved for publication as an EPA document. Mention of trade names or commercial products does not constitute endorsement or recommendation for use. Renaissance Planning Group developed much of the research, analysis, and case studies underlying this report as well as the initial drafts of the report. Supported by technical assistance from EPA, Mayor of Fresno, California Ashley Swearengin and Director of the California Governor’s Office of Planning and Research Ken Alex co-chaired the Fresno General Plan Implementation and Infill Development Task Force in 2013. The Task Force identified most of the strategies detailed in this report. The Task Force members were some of the brightest and most experienced practitioners in California and represented the areas of greenfield and infill development, business management, lending, city planning, land use and environmental law, transit and high-speed rail development, public finance, tax credit and other real estate development finance, and affordable housing. Contributors and reviewers: • EPA Region 9: Scott Stollman • California Strategic Growth Council: Suzanne Hague • EPA Office of Sustainable Communities: Geoff Alexander, Matthew Dalbey, Abby Hall, Adhir Kackar, and Megan Susman Cover photo credits: • Front cover, main photo: Heather Heinks, City of Fresno • Front cover, bottom left photo: Dan Burden • Front cover, bottom middle photo: Gretchen Moore • Front cover, bottom right photo: Mike Bellamente ii Attracting Infill Development in Distressed Communities: 30 Strategies Table of Contents Executive Summary ....................................................................................................................................... 1 Introduction .................................................................................................................................................. 5 What Is a Distressed Community? ............................................................................................................ 5 Benefits of Infill ......................................................................................................................................... 5 Benefits of Infill Development in Distressed Communities ...................................................................... 7 Challenges to Infill Development in Distressed Communities .................................................................. 8 Fresno: A Case Study to Encourage Infill in a Distressed Community .................................................... 10 How to Use This Report .............................................................................................................................. 13 Strategies to Encourage Infill Development in Distressed Communities ................................................... 14 Building a Strong Foundation .................................................................................................................. 15 Priorities .............................................................................................................................................. 16 Policies ................................................................................................................................................ 19 Partnerships ........................................................................................................................................ 28 Perception ........................................................................................................................................... 34 Paying for Infill Development and Infrastructure ................................................................................... 38 Funding for Infill Development ........................................................................................................... 38 Funding for Infrastructure .................................................................................................................. 45 Appendix A .................................................................................................................................................. 49 Self-Assessment Questions for Strategies .............................................................................................. 49 iii Attracting Infill Development in Distressed Communities: 30 Strategies Executive Summary Since post-World War II, many communities in the United States developed outside city and town centers, leaving older neighborhoods, traditional downtowns, and central business districts abandoned and underserved. In the past two decades, many communities have revitalized their central neighborhoods through infill development—development in a built-up neighborhood, often using vacant land or rehabilitating existing properties. New development and redevelopment can bring new housing choices, amenities, services, and jobs. Other communities, however, have been unable to attract infill development and attain the economic, environmental, health, and quality of life benefits that accompany it. EPA developed this report to help local governments overcome Infill development occurs in a obstacles and encourage infill development, particularly in built-up neighborhood, often distressed communities. Distressed communities have high using vacant land or rehabilitating residential vacancy rates, poverty, and unemployment, which existing properties. Infill further compound the many challenges that municipal development can bring many governments face, such as limited financial resources. A benefits, including financial distressed community could be a city or a neighborhood or savings for municipalities, community in a larger, less-distressed city or town. In distressed increased property values for residents and businesses, easier communities, the market alone cannot spur significant infill travel, reduced pollution, and development, and the public sector often does not have the economic stabilization of financial resources to invest in improving market conditions. distressed communities. Infill development can bring several benefits: • Municipalities can save money by promoting development in areas that already have infrastructure connected to public services, as opposed to financing new infrastructure for greenfield development. • Infill development can raise property values in the surrounding neighborhood. • It can bring residences and destinations closer together, making it easier for people to walk, bike, use transit, or drive shorter distances, which reduces pollution from vehicles. • For distressed communities especially, infill development can help stabilize a community by attracting a greater diversity of household income levels, bringing new resources to a neighborhood and reducing concentrated poverty. Distressed communities face challenges in attracting infill development. In neighborhoods where vacancy rates are high, private developers cannot generate adequate returns on investment to justify the investment risk. Public incentives and investment could make a project attractive, but distressed communities usually lack the financial resources to provide them. Even if developers are willing to take on the risk of an infill development project in a distressed community, they often face difficulty securing financing because lenders see these projects as risky. Finally, if existing infrastructure in an infill site requires substantial improvements, developers might not be willing to develop there. Executive Summary 1 Attracting Infill Development in Distressed Communities: 30 Strategies Infill in existing neighborhoods can bring environmental and Answering the self-assessment economic benefits to a community, but it can also disrupt life for questions in this report can help existing residents and businesses, and potentially lead to the local governments decide displacement of existing residents and businesses. It is important whether their community is ready for local governments to listen to and consider the concerns of to pursue infill development in people living in priority infill areas as they develop policies and distressed communities. Local programs to attract new development and investment into these governments can then use the strategies and tools in this report areas. This means giving careful consideration to strategies that to help them do so successfully. can help longtime residents and businesses stay in these neighborhoods, actively participate in planning for infill, and ultimately benefit from new growth. Fresno, California, is a useful case study in identifying strategies and tools to attract infill development despite serious obstacles. Disinvestment and declining property values across the city’s historic core drained public coffers and constrained tax revenues; contributed to a rise in concentrated poverty and crime; and detracted from the overall image of Fresno as a good place to live, work, and invest. The decline of Fresno’s central
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