Redevelopment occurs when real estate in your neighborhood or city is enhanced through new construction on previously occupied land or through substantial renovation of existing structures. Frequently the process begins with demolition of a building or several buildings that the developer perceives as obsolete, or too expensive or complicated to rehabilitate.
If you are unfamiliar with the concept, it may be explained best by
giving a range of examples. Redevelopment might mean a new mixed-use
project involving demolition or vacant land where demolition occurred previously. Such projects reduce traffic
congestion and give the neighborhood a boost. Or it might be a gradual
revitalization program consisting of both rehabilitation of existing
properties and addition of new infill buildings to renew prosperity
for the entire community. (Article continues below topics directory, or use search box at the top of the page.)
The term can mean anything from a big facelift for an existing site to a major reconfiguration of land, featuring construction of an entire new landscape and set of buildings. The continuum from simplest to most complex is something like this:
Sometimes the program includes re-use of a
few residential lots or a vacant commercial complex in a way that permits reconstructing a
street grid to create walkability, as in a suburban retrofit.
Other times a community faces the problem of a well-defined area of under-performing real estate. For example, Granville Island, actually a peninsula extending into False Creek in Vancouver, was once a failing 37 acre industrial area. Now it's fashionable and fun, with a public markets, museums, abundant arts, a boutique area, and other cool things.
Or the definition of redevelopment could expand to encompass decisions about what to do with entire sections of a shrinking city. Decision makers and activists in such cities need to become experts in the topic of this page!
Typically redevelopment begins with assessing the current condition of and market for the site. If there is no change in ownership, of course data about the site already exists, and owners and managers simply need to research the current real estate market.
If the market is brisk for the existing land use, the simplest
solution will be to renovate and upgrade building exteriors and
interiors to the extent necessary to be competitive. Tenants may need
to change to fit the needs, tastes, and pocketbooks of the neighborhood
or surrounding market area. Where the market will support an upgrade in tenants, property owners may choose to renovate in a style that would attract those more upscale businesses capable of paying higher rents.
If the market for the existing use is poor or mediocre, though, the next step is to consult commercial brokers and community marketing professionals in your city or state about other potential uses of the property.
If an owner is contemplating the sometimes expensive and frustrating process of changing zoning and land uses, at least he or she deserves to know if there is a lively market for the expected future use.
Now let's move to the more mainstream meaning of the term, in which the land and/or buildings have been vacant for some time. The owner is wondering what to do. Especially long time owners sometimes become pessimistic and therefore passive about managing the land, waiting for some "better market" to come their way.
Sometimes the municipal government is more concerned than the
owner, or the city may have become the owner through tax foreclosure or some other process.
We think vacant land is an invitation to problems. At the very least, it always signals a lack of demand for and interest in your neighborhood. So if you're the neighborhood association, be concerned, even if no one else seems to care.
Someone, whether it's the owner, government, or neighborhood association, needs to begin investigating the economic development potential of this site.
If you are the city or the neighborhood, work on getting the owner excited about the possibility of new things, or at
least instill some fear of code enforcement if he or she is determined to be
pessimistic about the economic outlook. If you have a vacant property registration ordinance, be sure that it is being enforced on the property in question to the fullest extent allowed by the ordinance. Be sure to investigate the possibility that he or she is not doing anything because of lack of financial capability, given the magnitude of the problem.
If buildings need to be demolished, work with the owner to try to obtain agreement on this point. Use code enforcement to force demolition if possible. If not, possibly you can work with the owner to obtain a subsidy for demolition funding from governmental, charitable, or even large neighborhood corporations or foundations.
Involve the municipal government in determining an acceptable overall plan for the site, which would facilitate possible governmental financing incentives such as tax increment financing to be offered.
Work with the local chamber of commerce, if you have one, and any state economic agencies, railroad or utility new business departments, or a small business or entrepreneurship support center if your problem building and site is a small one. If there's an angle for a commercial Realtor, try to attract the attention of one.
Now we need to state the obvious, because some neighborhoods miss this point. When you want to generate redevelopment, you need a developer. (Well, we told you it was an obvious point. But it's amazing how many neighborhoods underestimate this challenge.)
So if the current owner is not a developer, defined as a person
who can conceptualize a project, supervise architects and a construction
process, and market a property successfully, you need to find one. In fact, a good developer often can help an owner understand the potential of a property better than a neighborhood group can do this work.
If the current owner wants to sell the property, you can disregard his or her tastes in developers, but of course that owner must be very involved in attracting and selecting a developer if ownership is to be retained.
Some projects will be very difficult, so your process of finding a developer willing to work with a particular parcel or parcels of land will tell you a lot about the problems that lie ahead. But the right developer for the situation will take it all in stride and understand that partnerships with the public sector will be necessary to address extreme situations.
This comment raises the point that when your neighborhood association, commercial district, or city government searches for a developer, always try to gain as many perspectives as possible from each developer that you interview. To maximize your learning, try to get each developer out on the site instead of simply talking by phone.
After you have a developer interested in redeveloping the property, begin working with the local government to get them excited about the project. Local and state incentives, and some federal ones, may exist.
You'll need your local government fully on board, though, if you want to obtain state or federal credits or participation in the project. You also might need tax increment financing or some other type of tax abatement to make the deal work. If you are a developer or a neighborhood association, don't by-pass local government in the early discussion of the project; this would be a big human relations mistake.
When you have completed your environmental assessment, with the help of a professional, you have a complete handle on your zoning situation and what it permits, and you have the strong support of your local government and any neighborhood organizations in the area, that's when all professionals and advocates involved need a reasonable game plan.
But what happens if you are a developer, and you have a willing seller and a cooperative city government, but you have a reluctant neighborhood association or a group of neighbors who outright oppose your project? This calls for meeting with the opponents in person, repeatedly if necessary, to answer questions and give reassurances. Sometimes neighborhood residents have fears that will seem outlandish to developers, but are very real to the ordinary folks. Developers should be ready to compromise and to address specific concerns to the extent possible and economically feasible.
If you are discussing a large redevelopment project, developers and neighborhoods should be willing to negotiate a community benefits agreement in which residents give up their opposition in return for a contractual agreement addressing neighborhood concerns.
And in today's times, it needs to be creative. The competition is stiff. Every city has numerous opportunities to re-purpose sites that have become dilapidated, abandoned, or economically obsolete, and each of them presents challenges.
The easiest projects already have been picked up by the private market. So if you've been stuck with a site for several years, be realistic about its probable lack of market appeal.
Re-use of previous building sites is likely to be more expensive than construction on what is known as greenfields, or land that hasn't been used for urban purposes before (at least in recent memory).
The reasons for this greater expense are the high probability that some type of environmental assessment will be needed, more difficult regulatory hurdles because older configurations of land and buildings don't fit neatly into today's regulations, and the possibility that infrastructure (anything from streets to water mains to sewers to street lighting) will have to be rebuilt along with the buildings.
Rehabilitating buildings is often more expensive than new construction simply because of the unique challenges they present in terms of a lack of standard sizes and conditions of building members.
A builder can scrape off a site and be ready to go within days. A contractor dealing with a previous building site may have to haul off industrial waste or left-behind litter and solid waste, deal with the regulatory implications of brownfields, demolish buildings, remove rubble, and then be more careful with site preparation.
Particularly if the site formerly was an industrial campus or some type of complex where not all underground utilities may be known, the contractors have to be more cautious than the developer in simply preparing for new construction.
In a regulatory sense, the new use might require a new configuration of the lot or lots, with re-subdivision a possibility. Zoning may have to be changed, or zoning variances might have to be sought.
These are the background reasons that some think re-using land is more difficult.
So what are the advantages of redevelopment then? There are several:
Even the thought of brownfields issues discourages developers, so you need to learn about the topic if you're serious about understanding why your community doesn't attract more action.
Former service stations, garages, and dry cleaning establishments
will be considered clean-up sites, so don't underestimate this process
because the site of interest wasn't ever a factory. Your shopping center you would like to demolish partially may be full of asbestos.
If you (and you is whoever is advocating for the re-use of a site) do not have a complete history of the site, now is the time to begin gathering that information. Rely on historical governmental records or maybe the local history buff. You need to learn what types of activities were conducted on the property and whether there is any possibility that the building or the soils will be considered contaminated.
Up until now, we have been describing a process with one owner involved, or maybe two or three. However, two important types of long-term projects typically have many property owners involved: downtowns and waterfronts.
Downtown revitalization is virtually a non-stop process. While many of the principles discussed on this page apply, the many special considerations involved in successfully updating a town center are described on the linked page.
There's nothing like a long view over water for the "wow" factor in a city or town. See our waterfront planning page if your town sits on a stream, river, lake, or ocean. These projects may be even more complex than downtown because the owners involved often have little sense of kinship with one another, and the range of land uses may be more disparate than downtown too.
Of course waterfront work goes hand in hand with clean water, so if the political will or vision for waterfront planning is lacking, you may start with the volunteer clean-up approach. We've created a place on our site where you can upload photos and a short description of your stream clean-up, so please see what others are doing. (Rivers are included of course!)
Shopping center re-use is yet another specific challenge. It's clear that we've built too many shopping centers already, so some towns won't make these centers viable again.
You need the many ideas on the linked page to help you, whether you plan to struggle along and continue to work with the premise that you need retail, or not. If you decide on another use, all the information on this page becomes very relevant to you.
Of course, many strip centers are past their prime as well; many present big challenges. We just added a whole page on redoing a strip mall. One
of the better ideas for recycling these centers is to add a row of
buildings close to the street. These shallow buildings allowing for small shops are called liner buildings.
Then the space between the old strip center and the new building line at the street becomes a courtyard or perhaps a revamped parking lot using new Low Impact Development (LID) techniques to handle stormwater runoff. The old strip center then might become housing or offices, while a smaller amount of attractive and supportable retail is located along the street frontage.
We are describing this process very idealistically, in which you proceed effortlessly from concern about a site, to engaging with a willing owner, through convincing your local government to participate actively in the redevelopment process, to selecting a developer, and on to determining and executing a game plan.
Rarely does it happen this way.
So when you start to see the process slow down, it's another time to consult the smartest marketing gurus you can find in economic development, commercial or residential real estate, historic preservation, and green building.
Read good Internet sources and books to pick up ideas relevant to your particular situation, and talk to neighboring towns, network, and go to conferences and meetings to the extent your budget and time constraints will allow.
When searching for ideas for re-use of a property, borrow shamelessly from what has worked in other places. You can't afford to burden
yourself with thinking you have to be totally original, when you're
dealing with the threat of a site that begs for a new life. In fact, our adaptive re-use page has some great lists of possible changes of land use.
As you're planning a project, remember it's possible not only to re-use existing buildings, but also to add "infill" buildings that would enhance the bottom line for the development. Small downtowns or commercial areas may need additional buildings, and many times struggling shopping centers can be rescued through the addition of infill housing. Mixed-use development offers energy conservation potential and transportation convenience.
In many cases large previously used sites formerly were industrial sites, so you may have some large expanses of yard that were used for outdoor storage. You can either turn those into attractive open space or add more buildings to bring the development to critical mass.
If you decide to infill, obviously you need a practical architect
on the project who can complement existing architecture without being a
slave to it.
An exciting place is created by complexity of some sort. If you're a small town, you need to be an unpredictable small town. So if you have an old cotton gin that you're redeveloping into housing, make it slightly different from the rest of your town, without clashing. In cases such as this, you might want to try graduated density zoning.
Graduated density zoning is keeping the zoning on the periphery of a site at the same approximate density and intensity as the adjacent property, but then as one progresses toward the center of the site, gradually increasing the density. This is a way to add density while minimizing neighborhood objections.
If there are interior areas on the site that are not needed for parking and such, build more. Even if you think you need all that empty ground for surface parking, reconsider whether a parking structure wouldn't allow you to add density that would be good for the community overall. The expense of the parking structure often can be justified on the basis of the greater revenue from developing an additional building.
All in all, approach redevelopment determined to make some strategic additions and subtractions, re-imagine how spaces and buildings can be used, tackle the tough challenges by enlarging your circle of public and private sector partners, and work really hard to reap abundant rewards for your community.