Zoning Changes and Their Impact on
Real Estate Values

June 27, 2008 Update

On May 29th at the Sheraton Hotel in downtown Denver the Congress of New Urbanists held a conference to discuss urban planning. One of the speakers was Peter Park, Manager, Community Planning and Development for the City and County of Denver.

Park spoke briefly about planning in Denver and said that Denver needs to re-think rules of development because of the 2002 document Blueprint Denver that is to guide future development of Denver.

Blueprint Denver designates areas of stability and areas of change within the city. Each will be treated differently

Park has led a Zoning Code Task Force to rewrite the zoning code and to redraw the zoning map for the city so that they support the objectives of Blueprint Denver.

Most of the city is classified as areas of stability. Washington Park is an area of stability.

The proposal is a context-based approach to create regulations; to guide the kind of growth, we want. We will have a form-based approach¹ to shape the buildings that will be allowed.

In the Blueprint Denver document of 2002 there are objectives. One is to preserve areas of stability. It says:

The objective of the Areas of Stability is to identify and maintain the character of an area while accommodating some new development and redevelopment.

Blueprint Denver also recognized that neighborhoods are creatures in a state of flux and this should be considered in the plan:

Analysis of housing should include housing characteristics and change over time, an inventory of housing by type,

It goes on to describe how this should be accomplished:

Small area plans are the primary vehicle for applying tools to promote stability and re-investment. Because Denver residents are actively involved and versed in addressing issues at a neighborhood level, it follows that a small area plan is the best means to address many of the issues that confront Areas of Stability.

It also describes the need to understand the financial impact of zoning changes:

The existing zoning and development expectations of property owners are important considerations in developing a plan for Denver. Property owners understandably expect to maintain or increase their propertys economic worth and must play an important role in any growth management plan.

I find it curious then that Mr. Park does not believe that small area plans are necessary and he views them as brain damage He also proposes to take a snapshot of the neighborhood to determine what is desirable context, rather than to consider change over time, as prescribed by Blueprint Denver. Further, he has said repeatedly in public addresses that it is not necessary to assess the financial impact of zoning changes on real estate values.

Washington Park has had a fortuitous run of appreciation in real estate values over the last few years. Part of the explanation is the location of our neighborhood. Part is related to the beauty of the Park and the mature landscaping. Part is related to the preservation of iconic bungalow architecture and part of it is related to infill development.

Some of you may not like infill development and its impact on your bungalow neighborhood. Some of you may appreciate how it has made our neighborhood more diverse and richer. The fact of the matter, however, is that the neighborhood has been changing ever since the Arapahoe Indians lived here.

Change is inevitable and will continue. The change we have seen so far has resulted in an average annual price appreciation of over 9%.

To preserve the trends we have and to guide the future development of Washington Park, the neighborhood should be involved.

The Community Planning and Development department does not believe our input is necessary. They do not believe that before zoning changes are made the financial impact should be measured. They also do not believe that the trends in a neighborhood are relevant to their decisions.

I respectfully disagree and believe we must get involved.

The Washington Park East Neighborhood Association is the vehicle for your participation. The annual fee for membership is $20, a pittance.

^1.Form-based codes address the relationship between building facades and the public realm, the form and mass of buildings in relation to one another, and the scale and types of streets and blocks. The regulations and standards in Form-based codes, presented in both diagrams and words, are keyed to a regulating plan that designates the appropriate form and scale (and therefore, character) of development rather than only distinctions in land-use types.