Foundations of Real Estate Development Financing: A Guide to Public-Private Partnerships (Metropolitan Planning + Design)

## Foreword Arthur C. Nelson has been our guide for the future development of the built environment in the United States for many years. The message is that the built environment is in the beginning stages of a fundamental structural shift, the first one since the mid-twentieth century. Sprawl is coming to an end, and the vast majority of new development will be the redevelopment of our center cities and the urbanization of existing suburbs, particularly the inner suburbs. Future development will be higher density, mixed-use, and walkable. Yet, it will change the character of only a minority of our existing urbanized land, probably less than 10 percent of U.S. metropolitan land. Professor Nelson says in his introduction that most new development in the United States through 2030 "can easily occur on the parking lots of existing nonresidential development." Local governments will be thrilled for this type of development to happen, since it will recycle declining drivable suburban development, abandoned factories, brownfields, and publicly owned land. The redevelopment will cut out declining, sometimes cancerous, decay while providing a much higher tax base, far more vital walkable urban places, and an increase in property values of surrounding property, especially if that property is single-family housing. Recent research has shown that high-density, walkable urban places increase the property values of nearby single-family housing by 40 to 100 percent on a priceper-square-foot basis compared to similar housing that is not within walking distance. This is why we are seeing NIMBYs becoming YIMBYs-"Yes, in my backyard" activists. The reasons for local governments to encourage this redevelopment are now obvious. The question is how to do it, which is the focus of this book. "American's landscape is undergoing a profound transformation as demand grows for a different kind of American Dream--smaller homes on smaller lots, multifamily options, and walkable neighborhoods. This trend presents a tremendous opportunity to reinvent our urban and suburban areas. But in a time of fiscal austerity, how do we finance redevelopment needs? In Foundations of Real Estate Development Finance: A Guide for Public-Private Partnerships, urban scholar Arthur C. Nelson argues that efficient redevelopment depends on the ability to leverage resources through partnerships. Public-private partnerships are increasingly important in reducing the complexity and lowering the risk of redevelopment projects. Although planners are in integral part of creating these partneships, their training does generally not include real-estate finacing, which presents challenges and imbalances in public-private partnership. This is the first primer on financing urban redevelopment written for practicing planners and public administrators. In easy-to-understand language, it will inform readers of the natural cycle of urban development, explain how to overcome barriers to efficient redevelopment, what it takes for the private sector to justify its redevelopment investments, and the role of public and nonprofit sectors to leverage private sector redevelopment where the market does not generate sufficient rates of return. This is a must read for practicing planners and planning students, economic development officials, public administrators, and others who need to understand how to leverage public and non-profit resources to leverage private funds for redevelopment."-- Provided by publisher America’s landscape is undergoing a profound transformation as demand grows for a different kind of American Dream--smaller homes on smaller lots, multifamily options, and walkable neighborhoods. This trend presents a tremendous opportunity to reinvent our urban and suburban areas. But in a time of fiscal austerity, how do we finance redevelopment needs? In Foundations of Real Estate Development Finance: A Guide for Public-Private Partnerships, urban scholar Arthur C. Nelson argues that efficient redevelopment depends on the ability to leverage resources through partnerships. Public-private partnerships are increasingly important in reducing the complexity and lowering the risk of redevelopment projects. Although planners are an integral part of creating these partnerships, their training does generally not include real-estate financing, which presents challenges and imbalances in public-private partnership. This is the first primer on financing urban redevelopment written for practicing planners and public administrators. In easy-to-understand language, it will inform readers of the natural cycle of urban development, explain how to overcome barriers to efficient redevelopment, what it takes for the private sector to justify its redevelopment investments, and the role of public and nonprofit sectors to leverage private sector redevelopment where the market does not generate sufficient rates of return. This is a must read for practicing planners and planning students, economic development officials, public administrators, and others who need to understand how to leverage public and non-profit resources to leverage private funds for redevelopment. American's landscape is undergoing a profound transformation as demand grows for a different kind of American Dream--smaller homes on smaller lots, multifamily options, and walkable neighborhoods. This trend presents a tremendous opportunity to reinvent our urban and suburban areas. But in a time of fiscal austerity, how do we finance redevelopment needs? In Foundations of Real Estate Development Finance: A Guide for Public-Private Partnerships, urban scholar Arthur C. Nelson argues that efficient redevelopment depends on the ability to leverage resources through partnerships. Public-private partnerships are increasingly important in reducing the complexity and lowering the risk of redevelopment projects. Although planners are in integral part of creating these partnerships, their training does generally not include real-estate financing, which presents challenges and imbalances in public-private partnership. This is the first primer on financing urban redevelopment written for practicing planners and public administrators. In easy-to-understand language, it will inform readers of the natural cycle of urban development, explain how to overcome barriers to efficient redevelopment, what it takes for the private sector to justify its redevelopment investments, and the role of public and nonprofit sectors to leverage private sector redevelopment where the market does not generate sufficient rates of return. This is a must read for practicing planners and planning students, economic development officials, public administrators, and others who need to understand how to leverage public and non-profit resources to leverage private funds for redevelopment. Front Matter....Pages i-xxiii Introduction The Future of America Is Redevelopment, and the Future of Redevelopment Is Public-Private Partnerships....Pages 1-8 The Cycle of Development, Optimal Redevelopment, Redevelopment Goals and Benefits, and Barriers to Redevelopment....Pages 9-37 Implementation of Redevelopment Plans and the Role of Public-Private Partnerships....Pages 39-61 Real Estate Finance and Development Basics....Pages 63-97 Survey of Public-Private Partnership Tools and the Role of Public Patient Equity to Leverage Private Real Estate Development....Pages 99-135 Back Matter....Pages 137-175