ItemDivergent Strategies: Edison Gardens and Tacolcy Economic Development Corporation, Miami, FloridaVon Hoffman, Alexander (2002-07-01)Editors Note: Urban redevelopment has seen a dramatic revitalization in the last two decades, especially with the creation of Community Development Corporations (CDCs) and HOPE IV. Unfortunately, successful development in Urban environments are still more the exception then the rule. While many major cities have seen a dramatic revitalization of their urban cores, the creation of low and moderate income housing solutions have dramatically lagged the overall booming housing market Many of the failures of CDCs to successfully develop can be traced directly to the long standing complaint that the funding process is too lengthy and too complicated. In addition the entire process is often bogged down in the capricious administration of government funding programs. In the following case study Alexander von Hoffman discuses many of the issues that confronted a CDC operating in Miami. ItemTruly Smart GrowthMills, Edwin S. (2002-07-01)Editors Note: The following articles by Professor Mills and Ed LeClear, a Cornell graduate student, both address a very contentious issue currently in debate among real estate developers, planners, and governments: Smart Growth and Suburban Sprawl. In the Graduate Program in Real Estate at Cornell, every student Is tasked with completing two major project developments, one in the first year, and the other in the second. This years first year students planned a development on 858 acres in Pennsylvania. An undercurrent of discussion among the students was whether this relatively large property in a basically rural environment should be developed or if the development of it simply contributed to more sprawl. This question was made more poignant by the fact that the city of Philadelphia, was the only major city in the country to experience a decline in population during the 90's, as more and more individuals moved to the inner and outer suburbs consequently expanding suburban development boundaries. Professor Mills' article addresses this very issue in the first article from a decided viewpoint. Ed LeClear presents a different perspective on the issue. We encourage you to respond. ItemHousing Returns and Restrictions on DiversificationChinloy, Peter; Cho, Man (2002-07-01)Residential single-family housing dominates the portfolio of the representative household. Most homeowners are neither diversified by asset type nor by geographic market The same households that hold only one house are typically diversified in other financial markets, notably with the shifting of many investment assets to mutual funds. Information on the nature of household portfolios is provided, along with the extent of the cost in either greater risk or lower returns of an overly concentrated portfolio. The low correlations between single family housing markets implies a significant benefit from diversification across markets. Yet, most households are constrained from such diversification, resulting in either higher risk or lower return on personal portfolios. ItemCuban Real Estate: The Next Boom?Norvell, Douglass G. (2002-07-01)[Excerpt] The name Cuba conjures, for many, images of a country hostile to private real estate ownership. But those of us who have been to the island recently know that opportunities for private land ownership do exist, although they are limited. As far as Cuba is concerned, American investments in certain kinds of real estate are welcome, as are those of citizens of other nations who are willing to follow Cuban law and enter into working partnerships with Cuba's government. ItemSouth Bridge Student Case ResponseSu, Frank (2002-07-01)[Excerpt] ...The South Bridge Project is a mixed-use concept located in the North Michigan Avenue portion of Chicago's business district and is to contain retail on the first few floors, class A office, and a 300 room hotel. The existing area of South Bridge is a redevelopment zone, which currently consists of retail/entertainment, office, parking, and luxury hotels. Currently, the proposed project emulates the existing product mix in the South Bridge Area and our task is to analyze the market and propose a product mix. That is financially viable and that highest and best use of the site. ItemConservation Development and Smart Growth: A Development Technique for Open Space ProtectionLeClear, Ed (2002-07-01)[Excerpt] In communities across the United States the pressures of population and economic growth, and the market interactions between the two, are spurring unprecedented residential, industrial and commercial development. Such development is rapidly accelerating around urban centers as declining transportation costs, increasing residential and commercial demands, and both direct and indirect governmental incentives make relatively inexpensive agricultural land surrounding such centers attractive for private development. This development has led to the transformation of small town America and its accompanying countryside into a sprawling concrete land of highways, residential subdivisions, strip malls and suburban industrial parks. Farmland surrounding urban centers has been paved over and planted with homes and malls while the historic main streets, neighborhoods, and larger central business districts of America's major cities have seen a decline in population and overall economic health. ItemSouth Bridge Student Case ResponseKroll, Josh (2002-06-01)[Excerpt] ...I originally believed that the Chicago market could support any mixed use project. Following my initial impression, I felt that the South Bridge Redevelopment Project should have roughly equal proportions of leasable area designated for retail, office, and hotel. Furthermore, I saw the inclusion of a hotel facility as necessary, even though the associated risks are quite high. The market fundamentals seemed to be strong, but as you will see, the financial conclusions were in disagreement with my initial instincts. The following text will explain in further detail. ItemSouth Bridge ProjectBrown, Nina; deRoos, Jan; Burrell-Crowe, Elliot (2002-07-01)[Excerpt] Care Study- The Jean DuSable Company is facing a decision regarding the development options for the final parcels within the South Bridge Redevelopment Project, a large mixed-use development in the North Michigan Avenue sub-market of Chicago's central business district Designed as a showplace for international leaders in retail, entertainment and hospitality, the South Bridge Redevelopment Project contains approximately 898,000 square foot of retail and entertainment space, 1.2 million square feet of office space, 2,300 hotel rooms and 2,500 parking spaces, spanning a nine-block area fronting Michigan Avenue and extending west to State Street.