Wednesday, September 25, 2013

Density in the name of Sustainability and Affordability REDUX

Saturday, March 31, 2012

DENSITY in the name of SUSTAINABILITY and AFFORDABILITY

"What the hell is going on in this city?"

This is the question asked of me earlier this week by someone looking at the developer's illustration in the Vancouver Courier of the proposed Rize Development at Broadway and Kingsway "It just looks too big!" she said.

Two weeks earlier I had a call from someone concerned about a proposed new development in the 900 Block East Hastings Street across from the Ray-Cam Community Centre. He had just seen a rezoning sign proposing a 6 FSR development along a portion of a street presently populated by one and two level industrial buildings. "I like the idea of housing in this area", he said," but why would a developer or the City even consider 6 FSR in an area like this?" (As an aside, I'm told the density is necessary to support the city demands for additional light industrial space and social housing to be donated by the developer to the City.)I must say I understood my friends' concerns. Especially since I too have recently been disturbed about the significant increases in height and density for a number of approved and proposed developments scattered around the city. It was not that long ago that 6 FSR was the highest residential density permitted in the city, generally restricted to the Georgia Street Corridor. Recently the City has approved projects at almost three times this density. And now there is a proposal for 6 FSR on East Hastings! If it's acceptable in the 900 Block, is it acceptable for the adjacent ten blocks?The recently sold-out Marine Gateway development will be more than twice as tall as the Langara Gardens towers at 57th and Cambie, which have always been considered out of scale with that part of the city. (In the interest of full disclosure, I managed the successful rezoning for the fourth rental tower at Langara Gardens in the 80's, arguing at the time that yes, the buildings were out of scale, but does it really matter whether there are three or four towers, noting the need for more rental housing in the area and a resulting FSR of only 1.15.)

The STIR project at 1401 Comox proposed a 7.5 FSR on a site zoned for 1.5. While I support the idea of density bonuses to achieve new rental housing, even new market rental housing, I could not endorse a project at 5 times the permitted FSR, regardless of the merits of the design, talent of the architect, or community spirit and capability of the developer.On Main Street, the proposed redevelopment of the Little Mountain property is at an overall 'gross' density that in my opinion is too high for the area. It's higher than what the City approved for the Bayshore development in 1993. The late Jim Green, who worked as a community advocate for the project felt the same way, but argued the higher density was necessary to support the new social housing and other community benefits being expected by the City and community. He also pointed out that the Province was expecting a substantial payment for the land although he always stressed that neither I nor the public knew just how much the developer had offered to pay for the property. This was correct.

In each of these cases, the justification for heights and densities significantly higher than what would have been considered acceptable by architects, planners, and the general public a decade ago include:
  • the City is demanding community amenities (rental housing, social housing, commercial space, artists' live work space, daycare, etc.) or financial contributions in cash, which is pushing the higher densities;
  • higher densities are more 'sustainable'...and sustainability is an important goal for the city;
  • the higher densities are necessary to achieve more affordable housing;
  • all but Little Mountain had the unanimous, or almost unanimous approval of the Urban Design Panel.
Now, I happen to agree that increased amenities are essential if we are to accommodate increased growth. I also agree that 'sustainable development' especially close to transit is a good thing. And as a longstanding advocate for achieving more affordable housing choices through higher densities, I cannot disagree with the third bullet. So what's my problem?

Ironically, what prompted me to write this post was not just those people questioning the Rize, Hasting Street, Comox Street or Little Mountain developments. It was a conversation I had this past week at City Hall with City planners who asked what I thought of allowing higher densities and larger highrise floorplates than have historically been approved in Vancouver.

The floorplate of a building is the area of each floor. For decades the maximum for a highrise building has been around 570 square meters, which has resulted in Vancouver's 'skinny point-block towers' so often admired by visiting architects and planners. This was the size established for Downtown South, most of Coal Harbour and the North Shore of False Creek.

In a typical Vancouver building, approximately 70 square meters of the floorplate is taken up by elevators, stairs, corridors and mechanical shafts. The remaining area can then be divided up into suites. The ratio of the saleable or leasable area to the total building area is referred to as the building efficiency. In Vancouver, the efficiency of most buildings when factoring in the area of enclosed balconies and in-suite storage space is around 85%. This is less than larger buildings found in most other locales. Also, the point-block building form with extensive exterior wall relative to the building area is more expensive to build.

In recent years we have seen some notable exceptions to the smaller floorplate guideline. For example, the Woodwards Tower is much larger. (Fortunately the decorative metal designs that were to be a framework for greenery climbing up the building offset some of the bulk of this building.) The Shangri-la Tower is bigger, but its triangulated shape and overall height help minimize its bulk. Other recently approved buildings such as Telus Garden are also larger.

If you travel outside of Vancouver you can find many much larger, or may I say fatter buildings. eg: the towers in New Westminster above the SkyTrain station just north of Westminster Quay. While providing more affordable housing next to transit and an array of commercial facilities, these buildings are big...very big.

What prompted the question from the City planners is that they are now being asked to approve increasingly larger floor plates in order to improve building efficiency and affordability. The Planning Department is not just looking at fattening the towers; it is also being asked to consider alternative building forms such as larger double loaded slab buildings that are so common around Toronto and other cities. Unlike Vancouver's slender pointblocks, these buildings can easily be twice or three times the floorplate size and much more efficient and cost effective.
In principle, I support double loader corridor slab buildings up to say ten storeys. However, I don't really want to see the huge slab buildings that one sees driving into downtown Toronto from the airport.
One of the planners responded how ironic it was that I, once considered the developer terrible around City Hall for decades for proposing highrises and various rezonings for higher density four storey apartments along Vancouver arterials, now shared their concerns!

I think the time has come for a full public discussion on just how far Vancouver should deviate from its past practices when it comes to building form and density. Should we forego the slender point blocks? Should we permit Toronto sized slab buildings around the city in the name of affordability ? At what point do we trade off the form, massing and appearance of buildings in order to achieve greater 'sustainability? When is too much density too much?

This is a discussion that needs to take place not just on the pages of the Vancouver Sun and other community newspapers, or at politically charged Public Hearings. These discussions need to occur in the corridors of UDI, the Architectural and Planning Institutes, and our universities.

I hope that people like Gordon Price, Brent Toderian, Larry Beasley, Bob Ransford, Sam Sullivan and others will join into conversations about how much our city should change in the decades to come and what building forms and densities are appropriate in the name of affordability and sustainability. I would also like to see more on-line discussions at Fabula, City Caucus, the Vancouver Observer, The Tyee, and other similar venues.

Looking at plans for some of the new developments in the pipeline, I personally think my friends are right in asking what is going on in our city. I hope this post may help keep the conversation going.

Tuesday, September 17, 2013

Laneway housing at Interior Design Show West. Friday/Saturday Sept 20/21 2013

On Friday this week, I will be participating in a panel discussion at the Interior Design Show on Laneway Housing. http://idswest.com/ The focus of the discussion will be a very innovative Laneway House that has been constructed especially for the show.

The house will be auctioned off on Saturday afternoon at 5:15 with NO MINIMUM BID! Proceeds will go to the Alzheimer Society.
 
Here are more details on the house and the overall event. http://idswest.com/laneway/

Monday, September 16, 2013

A new international financial centre for Moscow

I was honoured, and a bit surprised today to learn about the composition of the jury for a major international planning competition for Moscow's new financial centre. While I knew I had been selected, it appears I am the only juror from North America.

This two-stage international competition to select a team to prepare the master plan for a 460 hectare site located in "New Moscow" is now underway.

The subject of the competition is the development of the Rublyovo-Arkhangelskoye site, in accordance with the requirements set out in the Competition Brief.

The first stage is the preliminary qualification and selection of eight participants for the second stage of the competition.  

The second stage of the competition is the development of masterplans for the IFC and the selection of three finalists.

You can learn more about the competition here http://mfc-city.com/

The other jurors can be found here. http://mfc-city.com/competition/#jury

It is my hope that given Vancouver's success in planning new cities and neighbourhoods, one or two Vancouver teams will submit their credentials.

The adjudication process will involve three trips to Moscow over six months. I am obviously very much looking forward to this process and seeing what I suspect will be some spectacular international submissions for this 460 hectare site just outside the city.

Sustainabuild 2013


I have been invited to give one of the opening addresses at the forthcoming Sustainabuild Conference.In reviewing past conference programs,  I came across my 2011 presentation on-line. In reviewing it again, I'm surprised they invited me back!  What do you think?

http://www.sustainabuild.com/vancouver/downloads/2011/michael_geller.pdf

Here are more details on this year's event. http://www.sustainabuild.com/vancouver/program2013.htm

I look forward to seeing colleagues at the conference.


Wednesday, September 11, 2013

RV`s and smaller space living in Vancouver Sun


Weekend in RV offers poignant lessons
By Michael Geller, Special To The Sun September 7, 2013

Whenever I promote the benefits of living in smaller spaces, people often ask if I could live in the compact spaces I advocate for others.

Many years ago, I did live in single rooms and shared flats, but over the years, the size of my living quarters increased to the point where I now live in a house with rooms I rarely enter. However, I was recently reminded of the delights, challenges and potential benefits of small-space living when I spent a weekend in a 120-square-foot recreational vehicle.

At eight-by-15 feet, it included kitchen facilities, a small bathroom with shower, and dining and sleeping areas. There was a full-height clothes closet and numerous built-in storage areas.

I realized that while it is one thing to live in a small space for a weekend, it is another to do so for extended periods. However, I could not help but think how this could have multiple applications, both for those who might choose to live this way and those who cannot afford larger accommodation.
I was also reminded that the layout and features of such a space can offer design and lifestyle lessons applicable to a broad range of housing, including a reduction in water and energy consumption and creative approaches to maximizing the use of space.

Many years ago, I worked at CMHC on a design guideline publication for mobile homes, and did a thesis at the University of Toronto's school of architecture on how pre-fabricated modular housing could be used to create affordable housing on vacant sites.

There seemed to be a constant supply of vacant land in Toronto awaiting development, and it seemed reasonable that these properties could be used on an interim basis for affordable housing. The concept was similar to that of school portables - usually set up for a number of years, then relocated to other school yards once permanent facilities were built. To facilitate relocation, the housing was modular and compact, similar to worker housing in remote communities.

The practice of creating vegetable gardens on urban lots is similar. These gardens will not remain forever, but they serve a useful purpose, and many consider them a great alternative to allowing the properties to lie fallow or become parking lots.
 
As Vancouver seeks solutions to address homelessness and increase affordable rental housing choices, I believe it is time to revisit the idea of relocatable housing. There are numerous vacant lots around the city, and while many will worry there is nothing more permanent than a temporary solution, as long as the housing is on privately owned land, it will ultimately be relocated. For those who worry about the esthetics, I would point to the attractive Olympic athletes' village that was at Whistler. Its modules were later relocated to other communities.

We might also look at container housing. A recent such project in the Downtown Eastside was made to look nothing like the steel containers stacked along the nearby Port Lands. Ironically, however, one recently approved residential development in the 900 Block East Hastings was designed so that it will look like stacked containers.
Many of those who purchase RV lots create elaborate vacation homes incorporating built-in barbecues, fireplaces, cabanas, covered decks and landscaping. During my recent weekend in the RV, I chatted with residents who took great pride in their properties and the overall sense of community. While this may not be surprising in what is essentially a holiday camp, I believe it is possible to create such a level of community in urban developments.

Today, there is a growing interest in living in small spaces, as evidenced in part by the success of laneway housing in Vancouver and elsewhere. Books and articles have been written on small-space living, and there are numerous websites, newsletters and other online publications on the subject. At the same time, some have negative impressions of RVs, travel trailers, mobile homes, as well as small houses and apartments.

I think it is time to take a fresh look at living in smaller spaces. The result could be innovative, affordable housing choices, and improved living conditions for the homeless and others living in shelters and some of Canada's most decrepit housing.

Michael Geller is a Vancouver architect, planner, real estate consultant and developer. You can read more about his relocatable housing proposal at http://gellersworldtravel.blogspot.ca/2012/12/finally-heres-description-of-proposal.html  He can be reached at geller@sfu.ca.


© Copyright (c) The Vancouver Sun

Postscript:  After this story was published my 31 year old daughter came over for dinner. During the course of the evening she confessed that while at a music festival in Nelson, she and a friend decided to buy a 23` RV and drove it back to Vancouver ($300 in gas) It`s now parked in front of her Main St area condo where some friends occasionally use it as a place to live....until she heads off to the next festival!

Thursday, August 15, 2013

Pre-sale marketing: Pros and cons for buyers and sellers


I am often asked whether it is better to buy a new condominium before or after construction. As you might expect, my most common answer is “It depends”.

I first learned about pre-sale marketing in the mid-80’s when CBC national news featured a story on people lining up outside a Toronto marketing trailer. They were hoping to buy at The Polo Club, the first Toronto condominium to offer much smaller, affordable suites. The project was sold by Priority Registration, a new marketing approach in which potential buyers had to ‘get on a list’ to be eligible to buy.

Priority Registration was the brainchild of Stan Kates. I knew Kates and his then side-kick realtor Marty Atkins from high school, and was asked to bring them to Vancouver by a client who thought this would be a good approach for his False Creek project. I subsequently learned they created their effective, high-pressure marketing system through a combination of design and accident.

People would line up because they were each given the same appointment time. When they became anxious and tried to get into the sales centre they could not, since there was no handle on the door. Kates discovered this idea by accident after a door handle fell off an earlier sales centre. He incorporated it into future projects since it too enhanced buyer anxiety.

Inside the sales trailer potential buyers discovered there were few floor layouts to choose from. This was to speed up decision making. To further enhance anxiety, each sale was announced over a loud speaker; and when people asked for a brochure, they were often told they were all gone, but were offered paper and pen to copy floor plans off the wall.
Kates firmly believed pre-sale marketing was selling a dream, while post-completion marketing was selling reality. “And never try selling during construction” he told me, “Since you’re just selling a mess!”

The program worked well for The Polo Club and Kates. Today as Chairman of Kates Marketing Group, his website notes he is the creator of Priority Preview® Marketing, a trademarked and copyrighted pre-sales system that has pre-sold over 55,000 homes and condominiums in over 500 projects across North America for well in excess of $5 Billion. He obviously likes 5’s!

Kates did not work on our Vancouver project since we had too many unit types that were too large and expensive for his system. However, in subsequent years, Vancouver developers and marketing consultants have created this region’s very effective pre-sale programs. While they differ from Kates’ early approach, they too have resulted in the sale of thousands of units to homebuyers and investors.
The original model of the Bayshore development. Note the pier at foot of Denman that was sadly never built.
The very first artist's illustration prepared for the Bayshore development. It turned out very much like the drawing!
One of Vancouver’s innovative pre-sale programs was the marketing of Bayshore’s first condominium residences from the Westin Hotel’s gracious International Suite. Since living at Bayshore included special access to the pool, health club and other hotel facilities, the developer wanted to emphasize the dream of living in a waterfront residential resort.
I once purchased the ground floor unit at the front of this building. Unfortunately, I didn't appreciate the impact of the city street light until after it was finished!
A key advantage of Bayshore’s pre-sale program, and many others, is it allowed buyers to choose from a variety of finishing packages and customize a home. However, this occasionally create problems, especially for the developer. I will never forget one if my buyers who complained about her bathtub. “What’s wrong with it” I asked. “It’s a very high quality fixture.”

“Yes” she said, “but it was supposed to be a shower!”

I pre-sold two Westside projects from my office in the CP Station. I offered free taxi rides to potential purchasers. One day, after handing my Yellow Cab credit card to a driver, he asked whether I was the developer whose office was in the Station. When I told him I was, he advised the older lady in yesterday would probably take the third floor two-bedroom if I reduced the price $5,000!

Another advantage of pre-sale marketing is it allows some buyers sufficient time to sell their existing home. For those downsizing from a house, the disposition of decades’ of accumulated possessions and memories can be challenging. Being able to do so over a period of time makes it a bit easier.

A disadvantage of pre-sale buying is that buyers often do not know exactly what they are getting. While this is less of a problem today with full size model suite mock-ups and computer generated view analyses, it is difficult to foresee everything.

I know. When I personally purchased a ground floor Bayshore waterfront condominium, I did not realize there would be a city street light right smack in the middle of my million-dollar living room view. And I was the Development Manager.

These days I often meet new and prospective homebuyers at Hollyburn Mews, a current project in West Vancouver. While I was tempted to pre-sell since there was much buyer interest immediately following the rezoning approval, I decided to wait for various reasons.

Firstly, I wanted buyers to see and understand exactly what they would be getting. Since the project design was somewhat unusual with a central courtyard separating laneway coach houses from street-front duplexes, even I was not exactly sure how it would all turn out.

Selling after completion also encouraged me to include a variety of small features that I suspected buyers might appreciate, but would be hard to illustrate or describe in a marketing brochure.

This approach also made it easier to know the development costs before finalizing sales prices. Fortunately, the credit union which financed the project did not require evidence of pre-sales before advancing funds, which is often the reason why many other developers have to pre-sell.

While selling after completion means developers generally have to wait longer to sell out a project, it does allow buyers to better appreciate what they are getting. In some cases they can also see who will be living next door, and whether their patio will get sun in the morning or afternoon. This is particularly important if this is a home, not just an investment.

Buyers can also see if there is a street light right outside their living room!

Wednesday, August 14, 2013

I say GREED is a factor in the recent condominium slow down!

Recently I had a call from Frank O'Brien who writes for Western Investor and Business in Vancouver who asked why I thought there had been such a significant slowdown in the number of condominium projects getting underway around Vancouver and elsewhere in Metro. To my mind, the problem was complex, but two key reasons were unrealistic asking prices on the part of vendors, and the uncertainties associated with excessive Community Amenity Contributions (CAC's) being charged by Vancouver and other municipalities.  Here's Frank's story.

Greed" blamed as residential land sales plunge | Print |  Email
Wednesday, 07 August 2013 18:32
"Greed" at all levels from the street to city hall is to blame for a sharp drop in sales of residential land in Metro Vancouver, says real estate consultant and developer Michael Geller.
"We all got too greedy," said the president of the Vancouver-based Geller Group.
This week RealNet, a Toronto-based data-tracking firm, reported that sales of land suitable for multi-family properties plunged 30 per cent in Metro Vancouver during the first half of this year, compared to the same period a year earlier. The trend is also seen in Toronto and Calgary, where sales of residential land dropped 51 per cent and 52 per cent, respectively.
RealNet research manager Richard Vilner said the decline in multi-family land demand mirrors a slow down in condominium sales. "Land prices may have peaked in Canada's three biggest housing markets," he suggested.
Metro Vancouver condo developers are pulling back from launching new product, according to MPC Intelligence, because of an overhang of unsold inventory.
MPC says 19 high-rise projects with 3,670 units started marketing between January and June 2013 in Metro Vancouver. This is down 20 per cent compared to the same period in 2012 when developers started marketing 26 projects with a total of 4,600 units.
The decline in low-rise marketing starts is even more dramatic; 18 projects with 1,020 units in the first half of 2013 compared to 34 projects with 2,400 units in 2012 - a 57 per cent drop.
Geller aid many landowners and civic governments haven't yet got the message that the residential market has changed.
"[Land owners] in Vancouver are asking $180 to more than $200 per buildable foot [the amount of square feet of residential space that can be built] for rather poor quality sites,"Geller said. At the same, municipalities, including the City of Vancouver, continue to demand community amenities and development charges from residential developers. "These can add up to $50,000 per unit," Geller said.
In Vancouver, one recent land assembly is made up of six detached houses in the Fairview Slopes area, where, based on current zoning, the list price is $200 per square foot for a low-rise multi-family project. Any developer would then have to add in construction costs of approximately $220 per square foot, plus civic fees, marketing and other soft costs, such as landscaping, notes a study by Altus Group. Yet the average per-square-foot price of a new low-rise condominium in Vancouver is around $500 per square foot, meaning potentially tight margins for speculative developers.
"I am not surprised that land sales have slowed down," Geller said.