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Live Smaller, Work Closer, Shed Excess: A Fiscal Panacea for Cities?

The Financial Case for Dense Urban Development

SRQ Magazine | March 2024, Home of the Year by SRQME - Issuu

As urban planners grapple with the challenges faced by local governments in financial distress, an emerging trend in urban development has come to the fore. Recent studies from Sarasota County, Florida, and Asheville, North Carolina, advocate for dense mixed-use development as a more lucrative alternative to sprawling single-use structures like big-box retail centers.

Boosting Tax Revenue through Urban Density

Investigations by Public Interest Projects in both Sarasota and Asheville have revealed that denser developments yield far higher property tax revenue per acre, presenting a striking contrast to the returns from big-box stores. High-rise and mixed-use buildings in urban cores offer a stark improvement, contributing substantially to city and county coffers.

Sarasota's Strategic Shift

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In Sarasota County, moving away from retail giants to versatile, urban sites significantly increases the tax revenue. For example, a single downtown mixed-use building has the tax contribution equivalent to multiple large suburban retailers. Peter Katz’s study demonstrates this shift, advocating for sustainable urban growth.

Asheville's Urban Focus

Asheville's downtown mixed-use buildings surpass suburban malls in tax contributions, delivering a strong case for taller, urban-focused development. Joseph Minicozzi's research reinforces the fiscal benefits of elevating urban spaces with multi-story, multi-purpose establishments.

More than Just Tax Revenue

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The virtues of dense development extend beyond tax collection. Such development offers a greater return on investment when considering infrastructure costs. As compared to suburban sprawl, compact urban constructions require less financial input for roads, utilities, and public services while offering quicker payback periods on these investments.

Reviving Henry George's Vision

The studies hark back to Henry George’s 19th-century philosophy emphasizing the value of land as a communal resource. Viewing land through the lens of its revenue-generating potential encourages a smarter approach to urban development and land use.

Embracing a Sustainable Future for Municipal Planning

The insights from Sarasota and Asheville are pivotal in guiding municipalities towards denser, mixed-use development. Such development not only ensures financial viability for cities but also aligns with environmentally sustainable principles and addresses the challenges of urban sprawl.

Travel and Urban Development: A Symbiotic Relationship

As cities reconsider their development strategies, seeking density over dispersal, the travel industry stands to gain. Visitors often seek destinations that offer convenience, accessibility, and unique experiences. The rise of mixed-use urban landscapes caters to these desires, enabling tourists to engage more deeply with the local culture and amenities. Vibrant city centers not only enliven the tourist experience but can also redound to the benefit of the broader hospitality sector, reinforcing a virtuous cycle of liveability, tourism, and economic growth.

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