2005-04-06 P & R Packet - Laserfiche WebLink

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Chatham Village in Pittsburgh. Pennsylvania was built in 1932 by Griswold. Ingham. and Boyd. Only 16 acres are built-up, the remaining 29 acres are most heavily wooded with mixed hardwoods. with two mites of trials. These 29 acres constitute a small protective greenbelt on three sides. Managed by the Buhl Foundation until 1960. the development provided a steady, though modest investment return over the years. When sold in 1960 to the residents they had no prOblem obtaining the financing as it is such a success. Baldwin Hills V il1age in Los Angeles, California was built in 1938 - 41. 1Qe landscape architect was Fred Barlow and the plan was based upon the superblock: concept of Radburn. It had an average of 30 housing Units around a shared open space and also had a series of three large open spaces along the center of the development. The buildings and landscape~aterialsunit to form spatial sequences throughout. Its financial success is described by Newtons as fol1ows: "On the ground, its value is measurable by the satisfaction it has brought to OllDers as an investment and residents as a home communitY. Occupancy has been consistantJyl 00%, and there has always been a long waiting list.... . , . The cause of why these five examples of developments have appreciated in value can be directly Hnke{! to the inclUsion in their deSign of public open spaces, commOns, parkS; and .parkways, etc.. They iIl'e unique development designs in large part due to these features and thus provide excellent examples of how park: land will increase the market value of adjacent or nearby property. An other source of evidence that parks will have a positive eHectupon property values comes from "TheEIfectof a Large Urban Park: on Real Estate Value, ~ by ThomaS' R.Hammer. EdwardT. Horn IV, and Robert E. Cougblln. Published in 197 I by the Regional Science Research Institute in Philadelphia., PA,the study loots at market values of property surrounding Pennypack Park in Philadelphia. The report concludes that a net increase in aggregrate real estate value of $4.570,432 Is' attributable to the Park:. It states that houses with a view ,of the Park: enjoy substantiaJ1y more benefits from the Part than do houses further away and therefore, should be assigned a SUbstantially higher rent location. ". The writers studied the rents of surrounding properties to see if rents acwally did correspond to distance from Pennypack: Park:. The location rent ranged from about $1240 per property at 100 feet from the Park to $138 per property at 2.500 feet from the Park:. They found that relative to total land value, location rent due to the closeness of the Park is substantial. At 100 feet it accounts for 34% octand value. at 1.000 feet for I 1%, and at 2.300 feet for 5%. In dollars per acre, location rent falls from $15.600 at 100 feet to $1,800 at 2,500 feet. Location rent increases more rapidly at distances less than 130 feet than it decreases at comparable distances greater than 150 feet. The bottom line seems to be that each acre of parkland, on the average, generates a value of $3.532 in location rent. .