The Economic Value of Public Space/ Case Studies
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- Beverley Cole
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1 Project for Public Spaces Placemaking and the Future of Cities Fall 2012 "Parks and squares can sometimes be viewed as a frivolity, an unnecessary drain on resources or use of precious urban space. Nothing could be further from the truth. In fact, parks and squares reward investment disproportionately. If developed as places and planned around major public destinations, they build local economies, civic pride, social connection, and human happiness all precious commodities in an increasingly congested urban landscape. "The evolution of cities is based on commerce linking urban and rural economies. Cities emerged because people gathered together at crossroads to exchange goods and ideas. This essential function of urban centers has remained unchanged for centuries.
2 Since the beginning of human history, public markets have been at the heart of cities. Much more than commercial hubs, they are traditionally among the most dynamic and productive places in our cities and towns. Here, people exchange the news of the day, from local gossip to national politics. In the marketplace, people build and solidify the social ties that are necessary for a healthy society. At their best, markets bring people of different ethnic groups and income levels together in a safe, inviting public space. They provide opportunity for people at the lower end of the economic spectrum, allowing entrepreneurs, including women, to sustain themselves and their families with a minimum of capital investment. They encourage the preservation of farmland around cities, as well as feeding money back into the rural economy and strengthening ties between urban and rural areas. Markets invigorate surrounding neighborhoods and provide access to fresh food and other necessities of life. Yet all too many cities don t value their markets for their benefits, investing instead in modern supermarkets and hypermarkets that have little impact on the local economy discovering this reality too late. In the U.S., cities closed down
3 their market systems in the mid-20th century, but new farmers markets began emerging spontaneously throughout the country. More than 7,000 of these markets are operating today." Project for Public Spaces, Placemaking and the Future of Cities Fall Page 8 & 9
4 The Trust for Public Land Economic and Health Benefits of Public Land "But accumulating evidence indicates that open space conservation and the creation of city parks are investments that produce significant economic benefits. For instance, our economic analysis in Long Island revealed that the state's parks and open space provide a $2.74 billion annual economic benefit to local governments and taxpayers, and that conservation of Long Island's parks and open space is eight times less costly than new residential development. In research findings summarized in Measuring the Economic Value of a City Park System, our Center for City Park Excellence identified seven ways in which cities derive economic benefit from their parks. These measures inform a unique methodology with which the center has
5 evaluated the economic value of park systems across the country. Parks and open space outside of cities produce economic benefits as well. Parks attract non-resident visitors who put new dollars into local economies. Proximity to parks and open space enhances the value of residential properties and produces increased tax revenues for communities. Open space captures precipitation, reduces stormwater management costs, and by protecting underground water sources, open space can reduce the cost of drinking water up to ten-fold. Trees and shrubs reduce air pollution control costs. And of course, there is the value to human communities of protecting the habitats of wild creatures who live near us. The Trust for Public Land, Economic and Health Benefits of Public Land
6 Willoughby Plaza Case Study Brooklyn, NYC The Economic Benefit of Sustainable Streets, NYC Department of Transportation Willoughby Street in Downtown Brooklyn was closed to motorized traffic between Adams and Pearl Streets along with a portion of the Adams Street service road in Within this space a pedestrian plaza was created to enhance the heavily trafficked pedestrian corridor, which at the time of its planning saw 2,600 pedestrians pass through it during the peak hour. The area was already a busy connection between Brooklyn s civic and retail centers, and with new residential construction and growing demand for office space in the neighborhood there was a need for a place to linger, eat lunch outside or take a moment to rest in the shade of planted trees between appointments or shopping. The plaza was created with temporary materials including seating, tables, planters and granite blocks. Six years later the space was upgraded using more permanent materials, with the street space merged with the sidewalk to create one large plaza with trees, new lighting, pedestrian wayfinding signage, seating and public art displays. Project Goals: 1. Improve pedestrian safety 2. Address lack of quality pedestrian space in vicinity 3. Provide space to sit, eat and relax in
7 proximity to local shopping and offices Approach: Public Space and Traffic Pattern Changes The plaza was created with temporary materials by closing an underutilized road segment to vehicles. Because this was also one of the earliest temporary plazas created in the city, many of the materials used were experimental. Results: Following implementation, pedestrian volumes increased by about 18%. Although combined sales at Willoughby Plaza dropped sharply in the first year following the improvement, they quickly rebounded and finished 47% higher than the baseline in the third year. By year three, the improvement site significantly outperformed both the borough and its two neighborhood comparisons. The seasonality of the sales data can clearly be seen, with the site experiencing seasonal peaks consistently in the 3rd quarter.. Additionally, the retail environment surrounding the site has noticeably changed since project implementation, with several New York City-based as well as national chains opening locations directly fronting onto the plaza. The Economic Benefit of Sustainable Streets, NYC Department of Transportation P.29
8 Urban Public Spaces - from Economics to Management A. Polko Changes in public space development are linked to an evolution in the thinking about urban regeneration and its aim of bringing sustainable vitality and viability y to urban areas, and the role of public space in this process [Carmona et al.2008, p. 69]. New technologies, new pattern of consumption or demographic changes force a new approach to the role of urban public space in contemporary urban economy. In case of public space the key point is the relationship between urban physical conditions and social response. Towns and cities change over time, and the process of change is both inevitable and can be view as a beneficial [Roberts 2000, p. 11]. It is beneficial because these substantial forces of change creates opportunities to adjust and improve the conditions of urban areas. Cities in the process of restructuring are characterized by vacancy. As Fuhrich and Goderbauer [2011] suggest:
9 in order to keep options for using existing areas or buildings open for the municipality, thinking strategically in terms of interim solution, permitting interim uses, and planning for them as far as possible can be a reasonable approach. Land formerly occupied by residential, industrial or military buildings and infrastructure, now with open access as a public space can be scenery of temporary uses projects from the fields of arts, culture, sport, recreation. Recessions spurs creative temporary uses of urban lots, which often grow out citizen s involvement and build governance networks. The existence of urban public space is a prerequisite of effective land use planning and local governance. Urban public spaces are complex adaptive system within city, so in urban resilience context they are perfect to implement more organic, adaptable and flexibly urban management,test innovative tools of land use planning and local governance, more focusing on learning-by doing,test better solutions in the provision public goods.(carmona et al. [2010] The concept of public space management and its evolution in the context of wider changes to urban governance. Four interlinked dimensions for public space management is proposed: the co-ordination of interventions, the regulation of uses and conflicts between uses, the definition and deployment of maintenance routines, and investment in public spaces and their services.they propose three models of urban public space management depending on level of public sector involvement: the state-centred model, the marketcentred model and the community-centred model [Carmona et al.2010, p ]. It should be starting point in discussion on urban public space management in different type of cities. Urban Public Spaces - from Economics to Management (A. Polko) Pages 19 & 20 Polko_
10 The Value of Public Space, How high quality parks and public spaces create economic, social and environmental value Design Council, United Kingdom "A high-quality public environment can have a significant impact on the economic life of urban centres big or small, and is therefore an essential part of any successful regeneration strategy. As towns increasingly compete with one another to attract investment, the presence of good parks, squares, gardens and other public spaces becomes a vital business and marketing tool: companies are attracted to locations that offer well-designed, well-managed public places and these in turn attract customers, employees and services. In town centres, a pleasant and well-maintained environment increases the number of people visiting retail areas, otherwise known as footfall. A good public landscape also offers very clear benefits to the local economy in terms of stimulating increased house prices, since house-buyers are willing to pay to be near green space. "For retailers, a good-quality public environment can improve trading by attracting more people into an area. It has been shown, for example, that wellplanned improvements to public spaces within town centres can boost commercial trading by up to 40 per cent and generate significant private sector investment.6 Urban design improvements undertaken as part of a wider strategy can have even more dramatic results. In Coventry, improved pedestrianisation, a new civic square, clearer signage and better placement of street furniture have made the city centre a much more attractive place to be, as has the introduction of CCTV and radio security schemes, and an alcoholfree zone. As a result, footfall in the town centre has risen by 25 per cent on Saturdays, benefiting local trade tremendously. "Small businesses choosing a new business location rank open space, parks and recreation as a number-one priority.10 In 1980, 16 per cent of Denver residents said they would pay more to live near a greenbelt or park. By 1990 this figure had risen to 48 per cent.10 In Berlin in 2000, proximity to playgrounds in residential areas was found to increase land values by up to 16 per cent. In the same study, a high number of street trees resulted in an increase of 17 per cent in land values.11 Lease rates of properties facing Post
11 Office Square in Boston, Massachusetts, command a 10 per cent premium over those without a park view.12 Municipal investment in Union Square, New York, in 1985 stimulated private housing investment in the area. Restoration of the park helped to stabilize commercial and residential property values adjacent to the park. Apartments with a park view command a higher price than those without.12 Creating tax revenue By helping to increase the value of homes in this way, parks and other public spaces bring wider benefits in terms of increased taxes paid to government (or, in the US, to the state) when properties are bought and sold. A good example comes from San Francisco, where proximity to the Golden Gate Park has been known to increase property prices from $500 million to $1 billion, thus generating between $5-10 million for the state in annual property taxes. The Value of Public Space, How high quality parks and public spaces create economic, social and environmental value Design Council, United Kingdom
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