Friday, July 10, 2015

Expert Article, Final Draft

Livia Pierson
Professor Hansen
Expert Article
10 July 2015

Effective Land-Use Planning

The Skyline
Think back to a time when you’ve travelled across the country, or around the world, to a different city – any city that was particularly memorable to you. Toss away the awful plane ride, the painful line through security, the crazy cab driver that almost killed you on the way to the hotel, and think about how that city looked to you. When you looked out the window of your residence, what did the skyline look like?

Right now, the view outside my Los Angeles apartment is quickly being consumed by the construction of Frank and Jill Fertitta Hall at the intersection of Figueroa and Exposition. The LA skyline is already built up, but the main reason my fears of massive, overdeveloped, disgusting urban sprawl are assuaged is because the space is truly functional. USC is an institution of education, and I believe in education.

Real Estate Development
My biggest business related obsession is real estate. In particular, I am fascinated by the place where the business of real estate and the government policy surrounding real estate intersect. Many people I have talked to who aren’t as interested in real estate as I am are not aware of the real estate project approval process, so the goal of this article is to: 
1) Educate you on the process by examples and reliable research
2) Help you formulate an opinion on some of the most important laws regulating real estate development in the cities of Rancho Palos Verdes and Los Angeles
3) Provide a brief international comparison to give you a global perspective on ineffective land-use

Rancho Palos Verdes 
The Planning Commission is the government entity in every US City that is in charge of approving real estate projects within their jurisdiction. My first real exposure to the real estate project approval process was in my hometown of Rancho Palos Verdes. The best large-scale examples of real estate projects the Rancho Palos Verdes Planning Commission analyzed and eventually approved are the Trump National Golf Course and Terranea Resort (Terranea Resort Website). I live right next door to Terranea Resort and therefore have insight on the development of the project.

Lowe Enterprises first approached the City of Rancho Palos Verdes with its plans to develop a massive, 5 star resort right smack dab on one of the last undeveloped cliffs in PV about 10 years before the project was actually completed (Terranea Resort, Curbed LA; Lowe Enterprises).

The City of RPV took many different factors into consideration when approving the project – impact on the environment, dissent from neighbors, and revenue for the city only being only a few.

Development Hurdles:  Rancho Palos Verdes and Los Angeles
Politics & Environment
The main reason it took Lowe Enterprises 10 years to have Terranea approved by the City of Rancho Palos Verdes is the California Coastal Commission (California Coastal Commission). The CCC protects California's coast by limiting the number of developments along the shoreline (Frequently Asked Questions: The Coastal Commission Permit Appeal Process). Distinct from land locked locations but similar to the regulations regarding nature preserves, the CCC prohibits the development of new buildings generally "within 300 feet of a beach, mean high tide or bluff edge; within 100 feet of a wetland or stream; or on tidelands, submerged lands, or public trust lands" (Frequently Asked Questions: The Coastal Commission Permit Appeal Process). For a major developer, the time tied up in the project approval process in addition to extra time spend dealing with the CCC means big bucks out of pocket. 

Money
Trump golf course is just down the road from Terranea, and Mr. Trump has had plenty of disputes with the RPV city politicians. Lawyers are rampant in the project approval process, simply because there is so much money tied up in whether a project is approved or not. Time is money in the development business, and the longer the approval process time means the more money out of the developer's pocket. Lawyers and constant Public Relations staff to endorse Terranea and Trump’s project over years of deliberation with the city add on cost. Those cost are in addition to the already purchased land remaining vacant during the years that a developer fights to get their project approved.

People
Additionally, city planning politicians have a duty to those citizens that elected them to take into consideration multiple public hearings where citizens express their dissent towards the approval of the project. The neighbors of Terranea resort, aka my family and all the other families in the neighborhoods surrounding the development were invited to events hosted by Lowe Enterprises designed to shed light on the details and local impacts of Terranea Resort.

Height of the Hurdles
To give you a better scope of the complexity and difficulty of project approval, especially in the Los Angeles and RPV areas in Southern California, there are consulting companies that specialize in the navigation of city politics, and these companies are paid a substantial commission by large and small developers to expedite their real estate project approval process.

One company I know of from my studies is Elizabeth Peterson Group, which is a land-use consulting and lobbying firm headquartered in downtown Los Angeles, specializing in hospitality, mixed-use, and adaptive reuse developments located in historic and urban communities” (Elizabeth Peterson Group, LA). EPG consults with major developers and has a deadline for acquiring land-use permits from the city for their developer clients.

Why Difficulty is a Good Thing
Responsibility is of utmost importance when it comes to land use. The proper and effective use of land involves people, resources, food, flora, and fauna, flood, fire, and traffic. Organizations such as the Urban Land Institute, which has a mission "to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide" (Urban Land Institute, LA) are created to foster responsibility in land use, yet many communities or commercial developments are still poorly planned given the demand. There is a common phrase in land use planning called "highest and best use," but the question remains: for whom is the land being utilized at the highest amount of return and best kind of use?

There are entire cities in China that exist for the sole purpose of the developer’s profits, boosting China’s GDP, and figuratively storing money for Chinese citizens who are too afraid to store their money in the bank (Badkar 1).

These cities are known as “Ghost Cities,” because they are vacant. Let me repeat: the CITY is vacant.

In the United States, corruption is rampant in city politics, and buying politicians to expedite the project approval process has been known to occur. There is a fine line between building relationships with city officials and influencing city politics for the wrong reasons. But in some countries, there are virtually no rules city politics regarding the development of buildings without a function. Do the Ghost Cities seem like efficient or good uses of space, resources, and money to you?

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Ghost City: Ordos

Works Cited

Badkar, Mamta. China's Most Famous Ghost City Got Even Worse In The Last 4 Years. 9

California Coastal Commission. <http://www.coastal.ca.gov/>. Web. 1 July 2015.

Elizabeth Peterson Group, Los Angeles. <http://epgla.com/>. 3 July 2015.

Frequently Asked Questions: The Coastal Commission Permit Appeal Process. California
Coastal Commission. <http://www.coastal.ca.gov/cdp/appeals-faq.pdf>. 1 July 2015.

Lowe Enterprises. Terranea < http://www.loweenterprises.com/news/news-
download.aspx?newsid=1161>. Web. 2011. 2 July 2015.

 

Terranea Resort, Curbed LA. Active Discussions, Newest Posts.

<http://la.curbed.com/tags/terranea-resort>. 2011. 2 July 2015.  


Terranea Resort Website. <http://www.terranea.com/>. Web. 1 July 2015.

Urban Land Institute, Los Angeles. <http://la.uli.org/about-us/>. 3 July 2015.















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