I’m extremely concerned with the down zoning of NW Denver to a single family district. This will result in decreased property value and a number of foreclosures. As an architect I have opportunity to talk with the developers in the area. For a while this has been the strongest neighborhood in the Denver Metro. But the new zoning code will eliminate existing development opportunities. The investors who currently own lots with hopes for building a duplex or a triplex will let the properties go into foreclosures when the new code comes to effect. In the current economy the results will be catastrophic for the area. Now is NOT the time to down zone!
Tuesday, July 21, 2009
Proposed new Denver Zoning Code
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Most developers won't abandon their investments that quickly, so I wouldn't expect a catastrophe.
ReplyDeleteIt's a big problem, though, that the city, on what almost seems like a whim, is vaporizing about a billion dollars of equity from the R2 zones. A program on Channel 12 tonite at 5pm is discussing this.
On the bright side, this value will eventually return. When you reduce supply by that much, prices will go up. Is that the best thing for the city? No, but Council is convinced that neighborhoods will be preserved in their present character, and they are convinced that is what's best for the city.
Council doesn't care about the lost value. We tried that argument in 2008 and lost 11-2
Thank you for your comment. I understand the argument behind preserving the character of our neighborhoods. The timing seems very awkward though. To discourage development in times when we need it most.
ReplyDeleteDuring my conversation with Peter Park on Tuesday he disagreed with me that economy should and will drive the type and size of developments. I simply don’t see how a developer would scrape a $450K Victorian to build a duplex. The math just doesn’t work. But in his mind the zoning law is superior to the market conditions and I feel like that is the essence of the problem. I wish we could all share his luxury of being able to ignore the economy.
I find it interesting that most of the comments made against downzoning come from architects, builders, and speculators (people who bought several rental properties but don't live in the area). Of course they won't agree with downzoning, it cuts into their pockets.
ReplyDeleteBy the way, "the math" may not work, but in the Highlands over the past 3 years, *many* $400K+ Victorians have been scraped for condos. Just look at the new development on 32nd St. All the new builds replaced Victorians.
Thank you for taking time to reply to my post.
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