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Walking toward sustainable change




How  State  of  Place  can  influence  placemaking  decisions,  enhance  
        walkability,  and  maximize  the  triple  bo>om  line	


                                                  Mariela Alfonzo, Ph.D.
                                                 Founder, State of Place
                                                President, Urban Imprint
                            Research Fellow/Adjunct Professor, NYU-Poly
                                    www.urbanimprint.com/state-of-place
Why Walkability?
Triple. Bottom. Line. +
It’s about how we live
“Weh-­‐‑che-­‐‑steh,”  Miami:  My  hometown…and  my  
               motivation  to  #getwalkable!
It’s about our health…
Yes, behavior important…
But so is Built Environment
It’s about our planet’s health




 VMT in the US,      Mode Split in the US,
   1971-2012             1960-2010
And now it’s about our economic
       health
                Residen'al	
  values	
  more	
  stable	
  in	
  walkable	
  neighborhoods	
  

   Have	
  experienced	
  less	
  than	
  half	
  the	
  average	
  decline	
  in	
  value	
  from	
  
                                                                        the	
  housing	
  peak	
  
A	
  10pt	
  increase	
  in	
  Walk	
  Score	
  linked	
  to	
  5-­‐8%	
  increase	
  in	
  commercial	
  
                                                                                                values	
  	
  
                A	
  1pt	
  increase	
  in	
  Walk	
  Score	
  linked	
  to	
  $700-­‐$3000	
  for-­‐sale	
  
                                                                            residen'al	
  premiums	
  	
  	
  
Urban	
  mixed-­‐use	
  developments	
  generate	
  25-­‐59x	
  revenue/acre	
  than	
  
                                                        suburban	
  counterparts	
  
                                         Avg.	
  opera'ng	
  cost	
  /yr.,	
  Bike:	
  $308	
  	
  
                                         Avg.	
  opera'ng	
  cost/yr.	
  Car:	
  $8,220	
  
              1%	
  rise	
  in	
  urban	
  sprawl	
  index	
  increases	
  obesity	
  risk	
  by	
  0.5%	
  
                In	
  2008,	
  medical	
  $$	
  to	
  treat	
  obesity	
  in	
  US,	
  approx.	
  $147B	
  
Design matters….



                          Individual
                           Factors




                   (Walking)	
  
Exchange!



 Image!                       Use!



            Urban	
  
            Design	
  

Cultural!                Environmental!



             Social!

                                      See CABE
Use!




Image!                                  Environmental!


                     Exchange	
  




         Cultural!                  Social!
to value generation….



                                  Individual
                                   Factors
                 E.g.,	
  	
  
                 Guggenheim	
  
                 Effect	
  

 E.g.,	
  	
  
 Retail	
                                     E.g.	
  
 Sales	
                                   Walking	
  
Walkability driving
place consumption…
The Power of PLACE
“Places” have become products
Their “sellers” compete with each other for resources
       Educated residents
       Talent
       Businesses
       Investment
Americans are choosing which locations to “consume”
based on place quality
                walkability is an important “driver”…
But…shortage of walkability?
Public policy hurdles +
Legal issues +
NIMBYism +
Lack of benchmarks and metrics
= More difficult to finance/underwrite/create/deliver

    Lack effective, cost efficient methods that demystify the
 process of identifying, differentiating, and creating the quality
                       places people want
BUT…in this stiff competitive place “market”
   AND in light of sustainability benefits,
                   walkability
    is no longer an “intangible luxury”
Why State of Place™ ?

¤  Art  à  Science:  Quantifying  walkability	
¤  Comprehensive,  Objective,  Reliable	
¤  Captures  “Micro-­‐‑scale”  &  “Sensory”  features	
¤  Diagnostic,  Empirically-­‐‑Based	
¤  Ties  Place  Quality,  Economic  Impact	
¤  Facilitates  Evidence-­‐‑based  decision  making,  Accountability	
¤  Provides  empirically-­‐‑based  ROI  predictions,  Customizable
Comprehensive. Reliable. Micro-scale.
Measuring Walkability: The Irvine
Minnesota Inventory
Uses street-level built environment data
Collected using the Irvine Minnesota Inventory (IMI 2.0)
250+ micro-scale features
•  Sidewalk presence, street trees, street benches, parks, street
   facades, land uses, etc.
Reliable, used widely in research
Measuring Walkability:
The Irvine Minnesota Inventory
Raters receive full day training; tested for accuracy/reliability
Data can be collected for sample of blocks in a neighborhood or on a
select number of blocks
•    10-12 min/block
•    Avg. 40-50 blocks/neighborhood
Neighborhood defined based on existing boundaries
Diagnostic. Empirically-based.
State of Place™ :
The IMI Scoring Algorithm
Dimensions                     Description/Example Items
Density                        Measure of enclosure based on building
                               concentrations and height
Proximity                      Presence of non-residential land uses
Connectivity                   Measure of disconnectivty; Potential Barriers
                               (e.g., six-lane roads)
Form                           Measure of streetscape discontinuity (e.g. drive-
                               thrus)
Parks and Public Space         Parks, Playgrounds, Plazas, Playing Fields
Pedestrian Infrastructure/     Curbcuts, Sidewalks, Street Furniture, Bike Racks
Amenities
Personal Safety                Graffiti, Litter, Windows with Bars
Traffic Measures               Traffic Signals, Speed Limit, Traffic Calming
Aesthetics (Pleasurability &   Attractiveness, Open Views, Outdoor Dining,
Maintenance)                   Maintenance
Physical Activity Facilities   Gym/Fitness Facilities, Other Recreational Uses
Density
Form
Connectivity
Proximity
Parks & Public Space
Pedestrian Infrastructure & Amenities
Personal Safety
Traffic Safety
Aesthetics
Physical Activity Facilities
State of Place™ Diagnosis
                               0%	
 10%	
 20%	
 30%	
 40%	
 50%	
 60%	
 70%	
 80%	
 90%	
 100%	

                     Density	
                        Form	
                  Proximity	
               Connectivity	
     Parks  &  Public  Space	
     Pedestrian  Amenities	
         Safety  from  Crime	
               Traffic  Safety	
                  Aesthetics	
Physical  Activity  Facilities
Density




                 Dimensions - Assets
                 State of Place™
Pedestrian
Amenities




Form

Traffic Safety
State of Place™
  Dimensions –
  Need improvement
Connectivity




                        Aesthetics
               Safety
Place Quality. Economic Impact.
State of Place™
Built Environment tied to Economic Value
   Correlated Economic Performance




                                          + $9 sf office rents
                                          + $7 sf retail rents
                                        +80% retail revenues
                                       + $300/unit res. rent
                                     +81 sf for-sale res. value



                                     From Brookings Institution
                                        report, “Walk this Way”
Walkability = Economic Indicator

Can quantify the value of place….
The State of Place™ index is linked to
premiums of up to:
+74% residential rents/unit
+$1200/unit residential rent
+108% office rents
+84% retail rents
+23% premium valuation before
recession;
+44% premium post
For DC, this translates into up to:
+$744 mill in residential property taxes/
neighborhood
+$96 mill in retail taxes generated/
neighborhood
Effective. Decision-making.
what is State of Place™?
Like a credit rating for neighborhoods; Helps guide
investment & underwriting; Aids branding; Siting



                       *Risk averse investors; Steady ROI


                            *Regional retailer siting

                               *Risk tolerant investors; Higher ROI


                                    *Aggressive developer enters market


                                             *Target for social
                                             equity advocates
ROI Predictions.
Customize. Prioritize. Maximize.
State of Place™ & ROI



                                                    !"#"$%&'(%)*'
                         !"#   $!"#   %!"#   &!"#   '!"#   (!"#     )!"#   *!"#   +!"#   ,!"#   $!!"#

                -./0#
                1234#
Very Good ROI    5246#
                 7214#
                 6/5-#

    Good ROI    7/.8#
                75/94#
                :.33#
                 45-2#
     Fair ROI
                  75-#
!"#"$%&'(%)*'
                    !"#   $!"#   %!"#   &!"#   '!"#   (!"#     )!"#   *!"#   +!"#   ,!"#   $!!"#

           -./0#
 Very
Good        1234#

 ROI        5246#
            7214#
            6/5-#
Good
            7/.8#
 ROI
           75/94#
            :.33#
 Fair       45-2#
 ROI         75-#




        State of Place™
        Assess current performance

        Predict ROI

        Balance Costs, Benefits
Intervention        Sidewalk          Façade
                    Options           improvements     improvements

                    Project Costs       $500,000.00          $250,000.00
Scenario Analysis


                    SoP Dimension     Ped Amenities          Aesthetics

                    Current
                                               50%                   25%
                    Performance

                    Impact Factor                 8                       5

                    Predicted SoP
                    Performance                10%                   15%
                    Increase
                    Walkability                High             Medium
                    Impact
                    Baseline
                    Indicator             Office Rents $25

                    Predicted           $8/sf office         $4/sf office
                    Economic Upside
Can Prioritize Planned Interventions

¤  Add grid of streets                                                  !"#"$%&'(%)*'
                                              !"#   $!"#   %!"#   &!"#   '!"#   (!"#     )!"#   *!"#   +!"#   ,!"#   $!!"#


¤  Add Commercial            FORM   -./0#


    office, retail, housing
                                     1234#



    (as market bears)         DENS    5246#
                                      7214#
                                      6/5-#
                                     7/.8#

¤  Add infill Metrorail             75/94#


    station                   PROX   :.33#
                                      45-2#


                              CONN
                                       75-#


¤  Add BRT Transit Line
Can Prioritize Planned Interventions

¤  Add sidewalks, buffers                                               !"#"$%&'(%)*'
                                              !"#   $!"#   %!"#   &!"#   '!"#   (!"#     )!"#   *!"#   +!"#   ,!"#   $!!"#

¤  Add street furniture             -./0#


                              PEDS
                                     1234#


¤  Add plaza, public space
                                      5246#
                                      7214#
                              TRAF    6/5-#

¤  Streetscape                      7/.8#


    improvements              AEST   75/94#
                                     :.33#
                                      45-2#

¤  Traffic calming                    75-#
Metropolitan Washington Council of
        Governments, DC Metro .)%(/#0()# 12,)
               !"#$%$#& '()#(* +#*,#(-$" Region
                     !"# $#%&'( )'*+,*- ./01#/#(2,2&'( !''1

!"#$%&' !("')%"*                        ¤  Diagnosis 95
                                            neighborhoods in the
+'%%",)- .#//,''%%   !"#$%&' ()&*#++ ,%%')-.
                         !"#$%&' 0%(/
                                            region
                      /%5'%60%"7
                      / ' 0 12 3412
                                        ¤  Creating place profiles
                                            – based on assets and
                                            areas in need of
                                            improvement

                                        ¤  Informing Strategic
                                            Investment Plan for
                                            region
Conservation Law Foundation
Ventures, Boston, MA

¤  Creating Healthy Neighborhood Equity Fund

¤  Piloting State of Place as project & neighborhood
    screening tool

¤  Creating estimated State of Place scores based on
    proposed projects
  ¤  Calculating potential upside
State of Place™ current & future “imprint”…

¤  Applicable across urban, suburban, & rural communities
   ¤  IMI data has been collected in California, Minneapolis, Houston, Iowa, North
       Carolina RT, Denver, Salt Lake City, Kansas, Arkansas, Michigan, Illinois…

¤  Roll out State of Place in other metros
   ¤  San Francisco/Bay area – Spring 2013
   ¤  Houston, Phoenix, Seattle, Los Angeles

¤  Incorporating a broader set of economic indicators
   ¤  Preservation Green Lab
   ¤  E.g. Job creation, retention, firm recruitment

¤  App – available soon!

¤  Partnering with universities

¤  Working with underprivileged community
   ¤    Brownsville + NYU-Poly

¤  China – in progress!
Let’s boost your State of Place™ !
What’s your State of Place™ ?




     www.urbanimprint.com/state-of-place

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What's your State of Place? Boosting the triple bottom line + through walkability!

  • 1. Walking toward sustainable change How  State  of  Place  can  influence  placemaking  decisions,  enhance   walkability,  and  maximize  the  triple  bo>om  line Mariela Alfonzo, Ph.D. Founder, State of Place President, Urban Imprint Research Fellow/Adjunct Professor, NYU-Poly www.urbanimprint.com/state-of-place
  • 3. It’s about how we live “Weh-­‐‑che-­‐‑steh,”  Miami:  My  hometown…and  my   motivation  to  #getwalkable!
  • 4. It’s about our health…
  • 6. But so is Built Environment
  • 7. It’s about our planet’s health VMT in the US, Mode Split in the US, 1971-2012 1960-2010
  • 8. And now it’s about our economic health Residen'al  values  more  stable  in  walkable  neighborhoods   Have  experienced  less  than  half  the  average  decline  in  value  from   the  housing  peak   A  10pt  increase  in  Walk  Score  linked  to  5-­‐8%  increase  in  commercial   values     A  1pt  increase  in  Walk  Score  linked  to  $700-­‐$3000  for-­‐sale   residen'al  premiums       Urban  mixed-­‐use  developments  generate  25-­‐59x  revenue/acre  than   suburban  counterparts   Avg.  opera'ng  cost  /yr.,  Bike:  $308     Avg.  opera'ng  cost/yr.  Car:  $8,220   1%  rise  in  urban  sprawl  index  increases  obesity  risk  by  0.5%   In  2008,  medical  $$  to  treat  obesity  in  US,  approx.  $147B  
  • 9. Design matters…. Individual Factors (Walking)  
  • 10. Exchange! Image! Use! Urban   Design   Cultural! Environmental! Social! See CABE
  • 11. Use! Image! Environmental! Exchange   Cultural! Social!
  • 12. to value generation…. Individual Factors E.g.,     Guggenheim   Effect   E.g.,     Retail   E.g.   Sales   Walking  
  • 14. The Power of PLACE “Places” have become products Their “sellers” compete with each other for resources Educated residents Talent Businesses Investment Americans are choosing which locations to “consume” based on place quality walkability is an important “driver”…
  • 15. But…shortage of walkability? Public policy hurdles + Legal issues + NIMBYism + Lack of benchmarks and metrics = More difficult to finance/underwrite/create/deliver Lack effective, cost efficient methods that demystify the process of identifying, differentiating, and creating the quality places people want
  • 16. BUT…in this stiff competitive place “market” AND in light of sustainability benefits, walkability is no longer an “intangible luxury”
  • 17. Why State of Place™ ? ¤  Art  à  Science:  Quantifying  walkability ¤  Comprehensive,  Objective,  Reliable ¤  Captures  “Micro-­‐‑scale”  &  “Sensory”  features ¤  Diagnostic,  Empirically-­‐‑Based ¤  Ties  Place  Quality,  Economic  Impact ¤  Facilitates  Evidence-­‐‑based  decision  making,  Accountability ¤  Provides  empirically-­‐‑based  ROI  predictions,  Customizable
  • 19. Measuring Walkability: The Irvine Minnesota Inventory Uses street-level built environment data Collected using the Irvine Minnesota Inventory (IMI 2.0) 250+ micro-scale features •  Sidewalk presence, street trees, street benches, parks, street facades, land uses, etc. Reliable, used widely in research
  • 20. Measuring Walkability: The Irvine Minnesota Inventory Raters receive full day training; tested for accuracy/reliability Data can be collected for sample of blocks in a neighborhood or on a select number of blocks •  10-12 min/block •  Avg. 40-50 blocks/neighborhood Neighborhood defined based on existing boundaries
  • 22. State of Place™ : The IMI Scoring Algorithm Dimensions Description/Example Items Density Measure of enclosure based on building concentrations and height Proximity Presence of non-residential land uses Connectivity Measure of disconnectivty; Potential Barriers (e.g., six-lane roads) Form Measure of streetscape discontinuity (e.g. drive- thrus) Parks and Public Space Parks, Playgrounds, Plazas, Playing Fields Pedestrian Infrastructure/ Curbcuts, Sidewalks, Street Furniture, Bike Racks Amenities Personal Safety Graffiti, Litter, Windows with Bars Traffic Measures Traffic Signals, Speed Limit, Traffic Calming Aesthetics (Pleasurability & Attractiveness, Open Views, Outdoor Dining, Maintenance) Maintenance Physical Activity Facilities Gym/Fitness Facilities, Other Recreational Uses
  • 24. Form
  • 27. Parks & Public Space
  • 33. State of Place™ Diagnosis 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Density Form Proximity Connectivity Parks  &  Public  Space Pedestrian  Amenities Safety  from  Crime Traffic  Safety Aesthetics Physical  Activity  Facilities
  • 34. Density Dimensions - Assets State of Place™ Pedestrian Amenities Form Traffic Safety
  • 35. State of Place™ Dimensions – Need improvement Connectivity Aesthetics Safety
  • 37. State of Place™ Built Environment tied to Economic Value Correlated Economic Performance + $9 sf office rents + $7 sf retail rents +80% retail revenues + $300/unit res. rent +81 sf for-sale res. value From Brookings Institution report, “Walk this Way”
  • 38. Walkability = Economic Indicator Can quantify the value of place…. The State of Place™ index is linked to premiums of up to: +74% residential rents/unit +$1200/unit residential rent +108% office rents +84% retail rents +23% premium valuation before recession; +44% premium post For DC, this translates into up to: +$744 mill in residential property taxes/ neighborhood +$96 mill in retail taxes generated/ neighborhood
  • 40. what is State of Place™? Like a credit rating for neighborhoods; Helps guide investment & underwriting; Aids branding; Siting *Risk averse investors; Steady ROI *Regional retailer siting *Risk tolerant investors; Higher ROI *Aggressive developer enters market *Target for social equity advocates
  • 42. State of Place™ & ROI !"#"$%&'(%)*' !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# -./0# 1234# Very Good ROI 5246# 7214# 6/5-# Good ROI 7/.8# 75/94# :.33# 45-2# Fair ROI 75-#
  • 43. !"#"$%&'(%)*' !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# -./0# Very Good 1234# ROI 5246# 7214# 6/5-# Good 7/.8# ROI 75/94# :.33# Fair 45-2# ROI 75-# State of Place™ Assess current performance Predict ROI Balance Costs, Benefits
  • 44. Intervention Sidewalk Façade Options improvements improvements Project Costs $500,000.00 $250,000.00 Scenario Analysis SoP Dimension Ped Amenities Aesthetics Current 50% 25% Performance Impact Factor 8 5 Predicted SoP Performance 10% 15% Increase Walkability High Medium Impact Baseline Indicator Office Rents $25 Predicted $8/sf office $4/sf office Economic Upside
  • 45. Can Prioritize Planned Interventions ¤  Add grid of streets !"#"$%&'(%)*' !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# ¤  Add Commercial FORM -./0# office, retail, housing 1234# (as market bears) DENS 5246# 7214# 6/5-# 7/.8# ¤  Add infill Metrorail 75/94# station PROX :.33# 45-2# CONN 75-# ¤  Add BRT Transit Line
  • 46. Can Prioritize Planned Interventions ¤  Add sidewalks, buffers !"#"$%&'(%)*' !"# $!"# %!"# &!"# '!"# (!"# )!"# *!"# +!"# ,!"# $!!"# ¤  Add street furniture -./0# PEDS 1234# ¤  Add plaza, public space 5246# 7214# TRAF 6/5-# ¤  Streetscape 7/.8# improvements AEST 75/94# :.33# 45-2# ¤  Traffic calming 75-#
  • 47. Metropolitan Washington Council of Governments, DC Metro .)%(/#0()# 12,) !"#$%$#& '()#(* +#*,#(-$" Region !"# $#%&'( )'*+,*- ./01#/#(2,2&'( !''1 !"#$%&' !("')%"* ¤  Diagnosis 95 neighborhoods in the +'%%",)- .#//,''%% !"#$%&' ()&*#++ ,%%')-. !"#$%&' 0%(/ region /%5'%60%"7 / ' 0 12 3412 ¤  Creating place profiles – based on assets and areas in need of improvement ¤  Informing Strategic Investment Plan for region
  • 48. Conservation Law Foundation Ventures, Boston, MA ¤  Creating Healthy Neighborhood Equity Fund ¤  Piloting State of Place as project & neighborhood screening tool ¤  Creating estimated State of Place scores based on proposed projects ¤  Calculating potential upside
  • 49. State of Place™ current & future “imprint”… ¤  Applicable across urban, suburban, & rural communities ¤  IMI data has been collected in California, Minneapolis, Houston, Iowa, North Carolina RT, Denver, Salt Lake City, Kansas, Arkansas, Michigan, Illinois… ¤  Roll out State of Place in other metros ¤  San Francisco/Bay area – Spring 2013 ¤  Houston, Phoenix, Seattle, Los Angeles ¤  Incorporating a broader set of economic indicators ¤  Preservation Green Lab ¤  E.g. Job creation, retention, firm recruitment ¤  App – available soon! ¤  Partnering with universities ¤  Working with underprivileged community ¤  Brownsville + NYU-Poly ¤  China – in progress!
  • 50. Let’s boost your State of Place™ !
  • 51. What’s your State of Place™ ? www.urbanimprint.com/state-of-place