Bob Hawkesworth Nov 7, 2006 12:57 pm

Dear Doug:

Could you or others in the fsb listserv direct me to research that has quantified the costs/revenues of low density urban development compared to more compact forms of development? Here is my premise: Building a city at an average density of, for the sake of argument, 7 units/acre yields a certain property tax revenue stream. It also creates a certain cost stream in the form of highways, streets, transit, recreation facilities, open space, fire and police protection, EMS, etc. If our City of Calgary budget is anything to go by, transportation is the biggest capital cost centre consuming 70% of our tax supported capital budget (deliberately down from traditional levels closer to 75% - a small improvement made by the current City Council). These capital and operating costs outstrip the revenue stream. That gap has traditionally been met (subsidized) by grants from third parties, usually the Province and lately some funding from the federal government. If a city were built at an average density of say, 9 units/acre (a 25 - 30% increase), presumably the revenue stream from property taxes would be relatively comparable (same number of residential units, only built in a more dense form, and commercial/non-residential taxes similar in magnitude also). However, what would happen to the cost stream? My premise is that it would go down compared to the cost stream of the lower density urban form. Is my premise supported or refuted by disciplined research? Are you aware of any studies that support or refute these assumptions? My guess is that it would have to be some sort of an economic study. As a corollary, is there some way of quantifying the order of magnitude in the assumed reductions? Is it immaterial, or is it "significant"? I would very much appreciate any help I could receive with a research/literature review. Anything you could come up with would be greatly appreciated.

Alderman Bob Hawkesworth,

Ward 4
The City of Calgary
PO Box 2100, Stn "M" (#8001A)
Calgary, AB T2P 2M5
403-268-2430
Email bob.hawkesworth@calgary.ca