1A, Embrace Open Space Presentation

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August 7, 2009 Balancing Open Space Protection and Future Development by Jenna Fletcher, Embrace Open Space Good schools boost real estate values and community desirability, as does proximity to amenities such as shopping, libraries or a lake. Now there is new data to show that parks and open space also increase financial value to nearby homes. Balancing regional growth with natural resource protection contributes to our high quality of life in the Twin Cities. Forest Lake has made great progress with its efforts including a Sustainability Action Plan with provisions for sustainable land use and healthy eco-systems. Unfortunately, many communities have lapsed in the protection of critical natural areas as the region has developed. If not careful, future residential development in fast-growing communities could jeopardize this legacy. Over the past decade the Twin Cities region has grown in population by more than 10 percent to 3.2 million. Much of this growth has been absorbed by suburban edge communities including Forest Lake. They will also accommodate many of the projected 1 million new people expected by 2030. Alarmingly, open space is under -protected. According to Wilder Foundation's TC Compass, the seven -county Twin Cities area has 255,000 acres of high quality natural land. Only 32 percent of this ecologically significant metro land is currently protected and the remaining 68 percent is at risk of being developed, polluted or degraded. There is an opportunity for cities to think differently, and to consider conserving open space as a driver for helping maintain property values. Anecdotal evidence supports the benefits of open space to quality of life, water quality, recreation, animal habitat and as a valuable asset sought by homebuyers. City comprehensive land -use plans, completed just as the recession devastated the housing market, will undoubtedly be revisited as many communities adjust to development realities. In particular, cities that once anticipated rapid growth and a new tax base now find plans for residential and commercial developments in limbo — either shelved, half - complete, or awaiting legal resolution such as foreclosure. Recent research provides tangible evidence of a financial benefit called the "open space premium." Research in Hennepin County was commissioned by Embrace Open Space, a collaborative backed by the McKnight Foundation, to calculate the open space premium on single family homes. The results show that homes near open space realize an increase in property value averaging approximately $16,750 each (www.embraceopenspace. org). The research used regression analysis in order to isolate open space as a distinct factor from other factors that impact property value such as house size and lot size, finished floor space, home age, proximity to downtown and lakes or other water bodies. This "open space premium" suggests that future residential development and open space conservation can co- exist and together help boost property values. While not generating the type of tax revenues as developed land, open space does increase property values and reduces the need for future property taxes to pay for increased city services. From smaller lot sizes, the clustering of homes with an adjacent park, to dedicated conservation easements, there are many ways to accomplish the mutually benefiting goals of community development and open space. Jenna Fletcher is program coordinator for Embrace Open Space, a collaborative among Twin Cities organizations serving as a catalyst for conserving and stewarding natural areas and parks, lakes and rivers in the 11-county Twin Cities area.