#Exactions (takings) of finished space for public uses: how is that implemented?

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clever dock
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In some highly urbanized areas where extensive/large-scale high-rise development is common (Toronto and some Australian cities come to mind), it is common practice in new large-scale developments to include space within developer-built buildings for schools, libraries, fire stations and other public facilities.

Can someone point me as to how the transfer of the space is handled: as a long-term lease? a condominimum/strata title? or does it vary by jurisdiction? Also, is the tenant finish, if you will, of these spaces generally handled by the developer/builder to the public tenant's specifications, or does the public agency get handed a warm shell space by the developer that they can then tenant-finish themselves?

viral trail
# clever dock In some highly urbanized areas where extensive/large-scale high-rise development...

In the Netherlands, developers have almost no say in how they ‘furnish’ the public space. They get a list of the furniture they can use and the municipality buys the entire public land for 1€ and will maintain it.

As for public buildings, developers dont typically build those here. They are almost always (or always afaik) a project from the municipality or in case of a school, a project from the school itself which gets funded by the municipality.

But, that’s the case for The Netherlands, no idea how other countries or maybe even municipalities go about these things. Maybe one of my fellow <@&787910105185124392> does know about this 🙂

viral trail
# clever dock In some highly urbanized areas where extensive/large-scale high-rise development...

In the Netherlands, developers have almost no say in how they ‘furnish’ the public space. They get a list of the furniture they can use and the municipality buys the entire public land for 1€ and will maintain it.

As for public buildings, developers dont typically build those here. They are almost always (or always afaik) a project from the municipality or in case of a school, a project from the school itself which gets funded by the municipality.

But, that’s the case for The Netherlands, no idea how other countries or maybe even municipalities go about these things. Maybe one of my fellow <@&787910105185124392> does know about this 🙂

olive arrow
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Depends on each location and jurisdiction. Also can vary based on each development. In California, local zoning and other regulations will govern what benefits need to be provided by developers to receive certain incentives. If the project is significant enough, the benefits can be individually negotiated and codified in a Developer Agreement that is a condition of project approval.

clever dock
clever dock
olive arrow
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To your question, I don't have specific examples off the top of my head, other urban planners may (I'm a transportation planner). However, where I'm from in California (Los Angeles), these types of benefits are usually regulatory incentives, so the space is not transferred, but rather retained by the private entity and developed in such a way as to meet public code requirements. If open space is required, it may be accessible to the public but the developer may be able to close the park at night, for example. Or a certain percentage of square footage may be required for a certain zoning type (retail or community service use) but not specify which business gets the lease. The actual agreement regarding fit out, or tenant improvement, would be negotiated between the owner and tenant.

devout warren
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Suburban Missouri planner here, we typically require the developer to convey the land to the appropriate entity (e.g. Developer -> school district, for the construction of an elementary school). The public entity will then handle the tenant-finish. I've also seen instances of long-term leases, typically on already built-out buildings.

clear linden
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I'm California, many times these facilities are funded by the developers through the payment of development impact fees (DIFs) in lieu of developing and furnishing a new public facility for the City. Sometimes the City isn't prepared to operate a new school so they may not require a developer to provide one. But the City uses the money from the DIFs to hire new teachers, build a new wing on an existing school, etc. That's the only place I've seen it in the code as a tit for tat requirement.

As Planner Pete said, most of the time when these facilities actually get constructed by the developer is when a Development Agreement is established between the developer and the City. This DA is typically a legally binding contract and can take years to negotiate depending on how complex the situations are and what facilities are deemed necessary.

iron grotto
clear linden
# clear linden I'm California, many times these facilities are funded by the developers through...

However, in California, projects that are large are required to undergo an environmental review process. In which we analyze the Project's impacts on existing public facilities. During this analysis it may be determined that the City/County does not have enough capacity in its existing public facilities, in which case the developer would be required to expand these facilities to serve the project. However, the developer is often reimbursed by the city as more projects are developed in the area and in turn paying their DIFs.

But sometimes a developer doesn't have the capital to build a brand new wastewater treatment plant, in which case the City can partner with the developers to acquire bonds and loans.

A lot of the time it seems like a lot of these things are not so necessarily enshrined in the law/codes as they are the result of conversations and analyses. The municipality has an obligation to provide services to its residents and they will work with the developers to ensure these services are met. But they can't disproportionately burden one developer over another, so lots of lawyers get involved to make sure it's fair and equitable.

clever dock
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yeah, a lot of what I'm trying to do is set out a pretty upfront process for exactions that developers can sort of "plug into" without needing to spend an inordinate amount of time wheeling and dealing, because that causes a lot of delay

clever dock
iron grotto
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I agree with everything @olive arrow and @clear linden have said. I would add that jurisdictions have to show a nexus between the improvements and the development.

clever dock
clever dock
clever dock
clever dock
iron grotto
clever dock
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although the question with a lease like that is "what nets and what grosses?"

iron grotto
clever dock
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(or you may have to do something different yet, for instance netting utilities but not taxes...)

iron grotto
clever dock
clever dock
iron grotto
devout warren
clever dock
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ok, that makes sense by and large, hopefully I can get a hold of some information from the Canadian side

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(as they seem to be much more keen on this sort of thing than the US is)

olive arrow
oblique hamlet
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Ultimately municipalities are responsible for (primary/high) schools (even if they're not government owned) so they tend to plan these kind of things well in advance so they're not dependent on anyone else.

clever dock
clever dock
viral trail
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And, if our traffic bottleneck doesnt get too bad, we will see around 700 apartments rising on a +- 10.000m2 lot, in which we also want to add a primary school. So over here we aren’t really working in sprawled out areas anymore

oblique hamlet
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If anything there's a major shift to redevelopment and more densely built housing/mid- and highrise

clever dock
viral trail
clever dock
viral trail
# clever dock not just raw units/area, but the "spikiness" as well with large-scale hirise dev...

https://en.m.wikipedia.org/wiki/De_Zalmhaven

I’d like to say I disagree

De Zalmhaven

De Zalmhaven, also referred to as Zalmhaventoren, is a project that includes a 215 metres (705 ft) residential tower in Rotterdam, the Netherlands. Other parts of the project are two buildings of 70m each. The project was approved by the city in February 2010.The 215 metres (705 ft) high residential tower houses 295 apartments and a parking gara...

oblique hamlet
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Amsterdam north or roughly every TOD around NS stations since ~2015 as well tbf

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Not even that, the Dutch department of VROM (housing, urban planning and the environment) had that idea as a possible option about ten years before it got that name