if you are having trouble viewing this page, go to: http://www.lai.org/newsletter/current.htm

An Honorary Society Providing a Forum for the 
Advancement of Land Economics www.LAI.org
August 2011 The Honorary Society for the Advancement of Land Economics
Print using landscape mode

PRESIDENT'S LETTER » back to top

Ireland into the Fourth Year of Property Decline – Has the Mood Music Changed?

Karen Sieracki

Dr. Karen Sieracki
LAI President

Summary

  • As bad as Greece? No, as Ireland’s GDP per capita at the end of 2010 was the fourth highest in Europe (OECD).
  • As bad as the Spanish property market? No, not for offices and retail when comparing Dublin to Barcelona. Madrid has better rental growth prospects.
  • As bad as the Portuguese property market? No, not for offices and retail rental growth prospects.
  • As bad as the Italian property market? Yes, for offices, retail and industrial rental growth prospects.
  • Dublin is the worst location out of 28 major European cities for industrial rent growth prospects.

General

The Irish economy continued to improve in the first half of 2011 due to its strong export growth and the recovery in investment for machinery and equipment as shown in the graph below. The slowing pace of decline in the construction industry has also helped. However consumer spending remained weak.

 
Source: CSO, Dept of Finance

However, there were concerns about Ireland manufacturing as in June new orders fell according to the PMI Survey. This was the first drop in activity since February 2010. Both output and new orders declined for the first time in 16 and 9 months respectively based on falling workloads, jobs being cut and fragile client confidence. There was also declining domestic demand but new business from abroad had increased. Irish manufacturing has been dominated by US firms and changes in this activity usually followed the rate of the euro to the US dollar.

Irish service activity rose in June despite the drop in new business as firms were confident that activity would be higher in 12 months’ time (Markit Services PMI Survey). New products and services were the main drivers of this expansion.

Official tourism figures showed that visitor numbers to Ireland increased for the first time in two and half years in Q1 2011 (CSO).

Ireland was expected to see the strongest population growth in the EU up to 2060 with an increase to over 6.5m total populace which was growth of almost 50% (Eurostat). The EU average for the same period was just 3%. This was a long term trend that will build the foundation for future demand.

Ireland is not Greece as its GDP per capital is €39,778 in 2010 which was the fourth highest in Europe (OECD). There are currently contradictory economic signals but it would appear that the tide has turned. There is usually a time lag before it impacts on the property sector.

Letter from the President

Featured Article

Editor's Column

Sacramento
LEW Update

LAI Strategic
Planning Charrette

Local Chapter
Briefing Memoranda

Chapter Corner

Maharashtra Chapter Update

Ely Chapter

Baltimore Chapter

Atlanta Chapter

Land Economics Foundation (LEF)

LEF Expansion

Member News

Seeking Employment

Announcements

LinkedIn

Save the Date!

Online KeyNotes is
published monthly for members of Lambda
Alpha International
.

Editor: Lou Slade
GW Chapter
louis.slade@
goroveslade.com

Assistant Editor:
Helen Sause
h@hsause.com

Production Manager:
Maria Salas
msalas
@nonprofitsolutions.com
Send your announcements for next edition of KeyNotes to LAI@LAI.org
Webmaster / Designer: LAI Office

For more information about LAI activities, visit the website or contact:
Maria Salas
Executive Director
1821 University Ave W,
Ste S256
St. Paul, MN 55104
p - 651-917-6257
f - 651-917-1835 lai@lai.org
www.lai.org

Irish Property Market

Irish property continued to see negative performance in Q2 2011 and for the first half of 2011 as illustrated in the graph below. Cash had seen positive returns throughout the past five years. This provides some credence to the existence of “mattress money” and its availability for investment when the price is right, particularly property. Irish equities have shown positive performance for the past year.

Source: CSO, Dept of Finance

Occupier demand remained constrained with prospective tenants negotiating tough deals with landlords. The preference was for modern space with more secondary space becoming available on the market as businesses consolidated or went into receivership.

Investment

Thin liquidity continued in Ireland for Q2 2011 with €25.75m transacted, bringing the total for the first half of 2011 to €150m. In terms of total European transaction volume, this represents 0.3% of total European investment activity (CBRE, JLL).

The property investment market in Ireland has virtually stopped until clarity has been reached on whether there will be retrospective rent review legislation. Investors were on the side lines until this issue is resolved. All investment properties currently on the market were mostly forced sales – either from receivership or on the instructions of a bank.

NAMA reported a loss in 2010 of €1.2bn in its first year of accounts. NAMA stated it had returned over €1bn to taxpayers, but under accounting rules it needed to report potential losses of €1.4bn, subtracted from its operating profit of €305m.

NAMA was handling debt from 850 debtors, with three having a total figure of more than €2bn with another 12 having a total debt of €1bn. NAMA had now received 151 draft business plans from its 177 major debtors. It reached a decision on 90 of the business plans. Of these, NAMA had reached agreement with debtors in 36 cases; another 27 case plans were being reviewed and discussed; and in 27 cases the debtors were subject to enforcement actions.

Action by NAMA has finally gathered momentum in the second half of 2010 and into 2011. It was encouraging debtors to look at doing sales. To help the process, NAMA announced that it would provide vendor finance to enable transactions. Therefore slightly more optimism existed but caution remained due to the potential of retrospective rent review legislation.

The London Chapter for its September lunch is having Ronnie Hanna from NAMA to discuss potential opportunities in the NAMA portfolio. Come and join us. Chatham House rules apply!

Karen Sieracki, LAI President

FEATURED ARTICLE » back to top

Ron Thomas Scotland LEW Report

The Featured Article this month is a chronicle of Ron Thomas (Atlanta) experiences at the Scotland LEW this past spring. We thank Ron for this excellent pieceand for his quality work. We hope you enjoy it.

View the full article and many pictures here.

EDITOR'S COLUMN » back to top
Lou Slade
Lou Slade
KeyNotes Editor


Guest Editorial by Warren Buffett (in the New York Times)

My column is very short this month because this is an unusually long issue of KeyNotes and because I’ve decided to use this space to make sure you all read Warren Buffett’s opinion piece that appeared in the August 15th New York Times.  All I can say is “thank you Mr. Buffett” and “Dear Congress, are you listening?”

Read the article here.

 

 

Lou Slade, International LAI Editor with Michael Hurley, AICP, Associate, Gorove/Slade Associates, Inc.

SACRAMENTO LEW UPDATE » back to top

The Sacramento Chapter has set up an exciting two days of fun touring of major projects that will change the region’s landscape and economy.  Three of the highlights are:

A visit to the new constructed Terminal B at Sacramento International Airport.  This $1 billion facility is opening on October 6th, 2011.  So you’ll get to see the new terminal complex in operation and learn the behind the scenes features that must be considered in constructing an airport in today’s world.

You’ll visit the recently opened expansion of the Crocker Art Museum.  The Crocker is now able to put on display many of its great art works that have been locked up in storage due to the lack of space.  You’ll learn about the integration of the new museum building with the historic old museum including the special architectural treatments.  There will be time to tour the museum galleries, including the wing for the Impressionists.

You’ll also get a behind scenes look at the future California State Railroad Technology Museum that will be constructed in the old Southern Pacific Central Shops Complex.  You’ll be able to see a working machine shop that services all of State Parks operating rail facilities in Old Town Sacramento and see a lot of historic railroad cars and equipment that are being restored for exhibit once the museum is constructed.

Please join the fun in Sacramento, October 20th to 22nd.

Tim Youmans, Managing Principal, Economic & Planning Systems, Inc. (EPS)

LAI STRATEGIC PLANNING CHARRETTE » back to top

One day prior to the start of our fall Land Economics Weekend, on Wednesday, 19 October, LAI will spend a day envisioning the next five years of the Society. Our current LAI Strategic Plan was crafted five years ago in Ottawa and we’ll be working on revising that plan to guide our work for the future. While this meeting is planned for your chapter presidents, the executive committee and the leadership of the Land Economics Society, we welcome member participation so if you will be joining us in Sacramento and wish to participate in the Strategic Planning Charrette let Maria Salas know that you’ll be with us. The revised plan draft will be submitted to all chapters for review prior to anticipated approval at the spring 2012 Land Economics Weekend meeting in Phoenix.

Over the past five years and guided by our current strategic plan, we have made some major changes in the Society. We hired a new management firm, Nonprofit Solutions; moved the secretariat of the International from Chicago to Minneapolis; formed new chapters in Madrid, Spain, Maharashtra (Mumbai), India, Atlanta, and Ireland; created a new and very comprehensive Chapter Manual and Briefing Memoranda to guide day-to-day management of LAI chapters; created a New Chapter Formation Guide for those seeking to establish chapters; and revitalized stagnant chapters in New York, Boston and Philadelphia. The Land Economics Foundation has made grants in widely diverse areas of land economics and despite the economic downturn, our Society is continues to make important contributions to land use management. Our new Executive Director, Maria Salas, has broad experience in managing nonprofit organizations such as Lambda Alpha and we look forward to a bright future with her and her colleagues at Nonprofit Solutions.

Jim Fawcett, Chair, Council of Presidents

LOCAL CHAPTER BRIEFING MEMORANDA » back to top

The Chapter Services Committee (CSC) has been working to prepare a set of best practices and other information to assist Chapter leaders. Attached is the Local Chapter Briefing Memoranda that has been assembled so far and was approved in Glasgow by the Board of Governors.

The intent of the CSC is to continue adding to these best practices as new ideas are developed.

The Briefing Memoranda are listed on the LAI website under the Members Only section, and can be easily viewed and downloaded by sections.

Chapter leaders will be able to look up this information as needed.  It will be available to all future Chapter presidents/leaders as well.

Please do not hesitate to forward your comments and input regarding these Memoranda to the LAI Office.
The Briefing Memoranda are listed below:

CHAPTER CORNER

MAHARASHTRA CHAPTER - UPDATE » back to top

The proposed new LAI chapter located in Mumbai, India, will be considered for the granting of a Chapter Charter at the Board of Governors meeting in Sacramento on October 20, 2011. This is an exciting expansion of LAI’s reach into one of the world’s fastest growing countries. The Maharashtra LAI members are looking forward to a strong relationship with other LAI members world-wide to bring expertise and support to address the India’s challenging land use and regional economic issues.

Tim Youmans, Managing Principal, Economic & Planning Systems, Inc. (EPS)

ELY CHAPTER » back to top

The Plan for Northerly Island: An Oasis in the City

On Tuesday, July 26, over 90 Ely Chapter members and guests were treated to a “behind the scenes” presentation and walking tour of Northerly Island. At one time a small airport, this 91- acre peninsula jutting into Lake Michigan at the heart of the Museum Campus, is beginning to be reclaimed as Chicago’s famous architect and planner Daniel Burnham imagined it over 100 years ago. The nature area at Northerly Island features beautiful strolling paths, casual play areas and a spectacular view of the Chicago skyline. It is also home to some of the best fishing in Chicago. Recently, a temporary outdoor music venue was added, generating revenue for the Chicago Park District to reinvest into the island.

While gathered in what used to be the old Terminal building, Gia Biagi, Director of Planning and Development for the Chicago Park District (and Lambda Alpha International – Ely Chapter member) and Gregg Calpino, Principal of consulting firm JJR, provided our group with eye-popping images of what the future could hold for Northerly Island. The recently approved 20-year frame-work plan calls for a chain of reef islands off of its east coast, creating a lagoon that will be a haven for fish and other wildlife. Cool lake breezes and sunny blue skies enabled the group to engage in a walking tour around the island where Gia and Gregg helped everyone to imagine the proposed suspension bridge along with the cafes and shops to be added to the west side of the island facing the skyline.

After all that hiking on Northerly Island, thirsts were quenched and ideas were exchanged back on the mainland during a cocktail reception at the Chicago Hilton Hotel.

Upcoming Event in September

On Tuesday, September 20, 2011, the Center for Real Estate Law at John Marshall in Chicago will be hosting an all-day conference: the 12th Kratovil Conference on Real Estate Law & Practice: 40th Anniversary Quiet Revolution in Zoning and Land Use Regulation.

In 1971, the President’s Council on Environmental Quality published The Quiet Revolution in Land Use Control (The Quiet Revolution). The book described in detail the innovative land use laws in nine states around the nation which returned the control of land use to a state or regional level, largely at the expense of local zoning. This constituted the “quiet revolution.” The Kratovil Quiet Revolution Conference will bring together national scholars and experts in land use to analyze the lasting land use impact of The Quiet Revolution in several jurisdictions around the country. In the afternoon, experts will analyze the future of land use policy and how this national issue will play out around the country and in the Chicago region.

Lambda Alpha International’s Land Economics Foundation is supporting this conference as a Platinum Sponsor. For a full list of speakers and to register, visit us online at www.jmls.edu/kratovil.

Correction from July KeyNotes

Please note: there was an incorrect reference in last month's KeyNotes. Ted Novak of DLA Piper is who presented Ruth Wuorenma with the Robert J. Piper Distinguish Leadership Award.

Terri T. Haymaker, Ely Chapter Scribe and Jackie Loewe, Programs Chair

BALTIMORE CHAPTER » back to top

Public-Private Partnerships: A Tale of Three Projects

Back-to-back-to back monthly programs in May, June and July highlighted public-private partnerships with three types of projects. Each focused on revitalizing an underutilized asset.

In the first, LAI Baltimore Chapter Board member, Joanie Millane of Millane Partners, LLC and Steve Cassard, Vice President for Facilities Management & Capital Planning at the University of Baltimore (UB) outlined their collaborative process that resulted in an award winning real estate transaction and project, The Fitzgerald.

UB issued an RFP in 2004-05 for a mixed-use development on a 4.3-acre, 600-space surface parking lot  — a brownfield site owned by the State — on behalf of UB.  The parcel is located in the midst of the urban campus and cultural arts district on a Light Rail stop and within walking distance of the Lyric Opera, Myerhoff Symphony Hall, the Charles Theater and Amtrak’s Penn Station. 

With the university’s law school enrollment expanding to nearly 1150 students, and its undergraduate program expanding to include Freshmen and Sophomores, UB’s objective, as predominantly a commuter school, was to maximize the number of parking spaces available to its faculty and students at below market rates as ground rent, while enhancing a neighborhood in one of the State’s first official Transit Oriented Districts (TOD).  The Bozzuto Development Corporation, teaming with PMI, was selected for the design-build project.  In September 2007 the 65 year ground lease, with one 10-year renewal option, was signed and on September 17, 2008, Bozzutto settled with financing from the Bank of America through syndication with the Royal Bank of Scotland and the New York State Teachers Pension Fund. 

The eight-story/1245 space public parking garage includes the first electric vehicle (EV) charging station in the City and two EV preferential parking spaces.  This new parking facility is also available to art enthusiasts and patrons of the nearby cultural facilities.  The 275 market rate residential unit building is certified LEED Silver.  There is 25,000 square feet of retail at street level, with UB receiving a share of the revenue from the Barnes and Noble Town/Gown Operator — one of 650 schools nationwide with this arrangement. UB rents 20,000 square feet of space in which Barnes and Noble operates the bookstore and cafe.  Additionally, there is a 1,500 square foot space occupied by Two Boots Pizza at the Fitz, while a third retail space of approximately 3,500 square feet is being actively marketed.

This public-private partnership is a win-win for the developer, UB and the neighborhood, —delivering a mixed-use, ecologically friendly project that is an economic development generator in the City of Baltimore.  It connects neighborhoods to retail, restaurants and cultural venues where before there had been a pedestrian-unfriendly sea of cars.  The developer enjoyed benefits such as no land assembly, ease of barriers to entry to the market due to UB’s involvement, market rate development fees, a Payment In Lieu Of Taxes (PILOT) from the City to finance the parking garage and, diversification of its business risk. 

Baltimore Chapter Officers, President and Vice President, Rachel Edds and Jim Leanos along with LAI Sr. VP Jim Ellison present Jim Cheevers a LAI Mug as token of appreciation.

In June, Rouse Company veteran, Barbara Nicklas, Vice President of Marketing for the Columbia-based Master Planned Communities and Development division of the Howard Hughes Corporation (HHC), chronicled the history of The Rouse Company (TRC) since the creation of Columbia in l967.  This included its merger with HHC in 1996 and the purchase of the company by General Growth Partners (GGP) in 2004.  GGP shepherded the process leading to the Downtown Columbia Plan that the Howard County Council unanimously approved in February 2010.  In November 2010, GGP retained the Mall and spun off 34 assets to HHC who now has 67 net developable acres. The Columbia Mall, nearing its 4th decade of existence, was envisioned by James Rouse as the Main Street for the planned community. Guiding the six year process to create an acceptable plan to redevelop downtown Columbia was an acknowledgement that James Rouse’s original vision for Columbia still was relevant—to be an integrated community with people of all backgrounds.  Also recognized were the need to address the aging physical environment; to make Columbia the urban hub for the County; and to embody Smart Growth by concentrating and accommodating future regional growth.  Many revisions to the original draft Master Plan were based on extensive community engagement by and between knowledgeable and passionate residents and GGP.

LAI members gather around a sculpture of USNA’s mascot, “Bill the Goat.”

For the Chapter’s annual summer outing, LAI Senior VP for Eastern James E. “Jim” Ellison, FAIA, joined Baltimore members who traveled to Annapolis for maritime-themed presentations.  Beginning at the US Naval Academy Museum, www.usna.edu/Museum.com, the internationally respected Associate Director and Senior Curator James W. “Jim” Cheevers provided a customized tour of the military and naval art and artifacts relating to the history of the U.S. Navy. Highlights included the collection of ship models, especially the replicas of British warships housed in custom built ornate cabinets and the smaller ones carved out of steer bone by French prisoners of war.

 The group then rode in e-Cruisers, 100% electric cars, to the Maritime Republic of Eastport and the Annapolis Maritime Museum (AMM), www.amaritime.org.  Located on Back Creek and overlooking the Chesapeake Bay, AMM’s Executive Director Jeff Holland welcomed and explained the public-private partnership that redeveloped in 2003 the former McNasby’s Oyster Company, the last oyster-shucking and packing house in the city of Annapolis.  AMM’s campus includes the Barge House, McNasby’s, water tours to the Thomas Point Shoal Lighthouse, and the Cap’n Herb Sadler Watermen’s Park.  AMM’s primary mission is to preserve the Bay and to promote the area’s maritime history and culture of the watermen. 

Bob Hannon explains the history of Anne Arundel County’s choice to ‘privatize’ its economic program in l993 by establishing the AAEDC.

The Chesapeake Bay defines the character of Anne Arundel County, according to Robert “Bob” Hannon, CEO/President of Anne Arundel Economic Development Corporation (AAEDC), www.aaedc.org who spoke to the group.  According to Bob, the County is well planned and well managed in terms of its General Development Plan, and a central role of the EDC is to ensure that the GCP is implemented. This entails organizing support for expansion of the industrial/commercial base through land use designation, correct zoning application and extension of utilities supported by financing. 

The current industry count is over 14,000 businesses that in turn employ approximately 240,000 workers.  Hannon said the County is just back to the employment levels of 2007 and this does not count the 400-acre National Business Park located just west of Fort George G. Meade.

LAI Baltimore President Edds thanks Laura Fritts, Annapolis EDC for her participation.

Celebrating her 6th month on the job as President/CEO of the one year old, Annapolis Economic Development Commission www.annapolisedc.org. Lara Fritts said her organization’s audience includes the City of Annapolis government; residents and neighborhood associations; and the business community and allied organizations. Working positively with the newly-formed Committees to implement the organization’s mission of retention, expansion and attraction, Fritts said she has a “healthy/contentious relationship” with the City. While she admitted achieving the mission is tough in this economy, she proudly pointed out the successes after what an audience member characterized as “the City’s culture of No for the past 25 years”.  The AEDC helps streamline and make the process for developers easier by eliminating one or more of the regulatory steps.  Also it is collaborating with the City’s Planning Department on a wayfinding program by identifying keystone properties.  Lara also talked about the preliminary findings from a retail market analysis to be released in early August that identified gaps, according to the responses from residents, visitors and internet patrons, in the City’s 5 commercial districts.  These ranged from an art cinema, entertainment to a grocery store, restaurants and parking. Having this information about people’s preference will help develop a road map and action strategy.

Tara B. Clifford, Baltimore Scribe

ATLANTA CHAPTER » back to top

The Lambda Alpha International Atlanta Chapter met on Tuesday, July 12, 2011, at Decatur City Hall at the office of Lyn Menne, Assistant City Manager. During the lunch meeting, Lyn, the guest speaker, presented an overview of historic Downtown Decatur, and led a walking tour of the downtown.

View the meeting minutes.

MEMBER NEWS » back to top

SEEKING EMPLOYMENT » back to top

*Note from the KeyNotes Editor: This posting is a new experimental service in KeyNotes in response to a request from an LAI member. We’ll monitor responses to this posting and new requests for postings, and determine if the membership sees this as a valuable addition to KeyNotes.*

OBJECTIVE: To obtain a position with a leading non-profit organization which allows me to contribute my professional skills and personal passions to benefit that organization and grow professionally.

My current work in Chile has definitely cemented my desire to pursue a career in international relations. My areas of interest and my experience are in program management, marketing, and public relations. I have experience working with nonprofit boards of directors and serving as a liaison to nonprofit organizations with elected officials and community organizations.

LAND ECONOMICS FOUNDATION (LEF) » back to top

LEF EXPANSION

The Board of Trustees of the Land Economics Foundation has continued efforts on a monthly conference call basis to crystalize the meaning and purpose of the organization; the intent is expanding the impact of the Foundation. Commitments over the past six years have produced a number of successful ventures on a co-funded basis, these may be found on the LAI website. The Trustees agree that it is time to enhance both LEF and LAI exposure on multiple levels. By the end of this year it is their desire to trifurcate the Directors’ obligations among three core functions to increase effectiveness.

  • Research Approval and Review Committee
  • External Funding Committee
  • Communications Committee

The expanded internal structure will allow more Members (whether Director or not) to participate, increase funding of projects within five years to $100,000 annually directed to both academia plus the public/private sector ventures having effects in other arenas through greater communication. A growth oriented Business Plan will be presented to and discussed by the Board of Directors in Scotland; the results will be shared with LAI Members in ensuing Keynotes. We invite input from all LAI members on this new direction. If you would like to take an active role in this process please contact any of the officers. We will keep you informed as we move through this new strategic direction.

Steven R. Gragg MAI, FRICS, LEF President

ANNOUNCEMENTS  

LAI ON LINKEDIN.COM » back to top

Lambda Alpha International (LAI) has recently created a group on Linkedin.com. Linkedin is an online professional network of more than 60 million professionals in over 150 industries. Linkedin is a great place to exchange information, ideas and opportunities. Linkedin allows you to:

  • Stay informed about your contacts and industry,
  • Find the people & knowledge you need to achieve your goals, and
  • Control your professional identity online.

Our LAI Linkedin group will provide a means to further promote communication and networking among LAI members. Please join us at LAI’s newest place to network: www.linkedin.com.

ATTENTION LAI MEMBERS! » back to top

Forgot how to login? No problem.

Please visit the LAI Website at www.LAI.org. On the left hand side click on the Members Only Tab. Here you will need to use your email and the password is lai.

SAVE THE DATE » back to top

Sacramento Land Economics Weekend

October 20-22, 2011
The Citizens Hotel, Sacramento, CA
More details and registration available here.

 

LAMBDA ALPHA INTERNATIONAL
The Honorary Society for the Advancement of Land Economics


Sponsors/Business Cards:

Len Deering

John Marshall Law school business card

Sacramento Lew

Kratovil

Place your card here Call 651-917-6257
$250 U.S. for 12 months

LAI reserves the right to accept or reject any advertisement submitted for LAI’s publications and on its Web sites. The appearance of advertising in LAI’s publications and on its Web sites in no way implies endorsement or approval by LAI of any advertising claims or of the advertiser, its product, or services. LAI will disclaim any liability whatsoever in connection with advertising appearing in LAI publications and on its Web sites.