Why Understanding (Land Use) Economics is So Hard
Here is a recent article that concluded that human relationships are built from four types of interactions. This got me thinking about land use economics--entitlements, getting uses approved, and why we miss the boat sometimes on leaving things better than we found them.
The gist of the article is that all human relationships, are built from four types of human interactions:
- Communal Sharing
- Equality Matching
- Authority Ranking
- Market Pricing.
Too often, I focus on the last in meetings/negotiations and don't fully understand/value the other three building blocks--and the process of entitling a specific land use becomes more difficult because I don't fully understand the other three building blocks of a relationship.
Communal Sharing--of benefits like views, open space, and utility access and traffic impacts. Malama 'aina, the care and nurture of the land, is a great description of this. Community. Oft times we run into trouble when the use we are proposing is less than the value the community places on the current land use.
Equality Matching--restoring balance--mitigating traffic impacts, affordable housing set asides. Transferable development rights.
Authority Ranking--non-conforming uses. zoning. Think San Quentin State Prison.
Market Pricing--investment go/no go decisions. option payments. value add strategies. Cost of debt, equity. Terminal Cap Rates.
If you are up to geeking out on this, here is the original study the article was based on--The Inherent Sociability of Homo Sapiens.
Try this metric out on your next meeting--how do you fare on the four elements?