Redoing the Strip

There are a number of other challenges associated with grayfield development. While a community should offer aesthetics, quality construction and safety, it also needs to blend in with the surrounding neighborhoods. While some re-zoning may be required, when projects are integrated with the city’s current land use plan and they accommodate residents’ needs, they are often perceived in a positive light. Mixed-use communities can be hard because there tend to be different designs for the residential and retail uses, so it is important to ensure that the designs work well together. The plans must focus on establishing a mix of residential, retail and office uses that are integrated into surrounding neighborhoods, said Cox. “Compatibility is important with this type of development.”

Suburban villages created on former strip mall sites are intended not only to intensify land use and act as a revitalizing catalyst but also to help infuse communities with a specific identity and a sense of place; they also can create much-needed housing in urban areas.
Illustration: The Planning Center

Securing financing can also be difficult. “You may have to use two separate lenders, one for the retail and one for the residential,” pointed out John Tillotson, president of the Pelican Center, a real estate development firm located in Huntington Beach. He added that “public financial support also is crucial. Cities must be willing to invest public dollars into these projects. You have to make the investment today for a return tomorrow.”

Just determining who owns the individual stores within a center can be an issue because there are usually many small business owners, pointed out William Anderson, vice president of Economics Research Associates, located in San Diego, California. “This is where city support is once again crucial,” he added. To overcome some of the challenges, Anderson noted that aggressive and flexible leadership is needed from the cities, together with experienced and committed developers, and supportive residents. With all of the various programs now being offered to promote redevelopment, there are new opportunities, especially if the plans call for an affordable housing component, he said. Many private companies that once focused solely on the single-family detached market are capitalizing on these opportunities, continued Anderson. They are now gaining visibility as players in grayfield development, with projects that reuse urban sites and help to revitalize once-declining neighborhoods. Continue »