Building on Undeveloped Land Differ From Building on Developed Land
From an economic standpoint, building on undeveloped land is different from doing construction on developed land. Undeveloped land takes time to put up infrastructure. The developer has to seek permit from local authority in the process of preparing the land. In the event the land is located in an area that has environmental issues, or one faced with anti-development issues, it can take time and money to iron them out. From an economic aspect, getting the undeveloped land ready for construction is a costly affair (Levy, 2013). The developer has to conduct tests to ensure the land can accommodate a septic system, has sufficient water and can support the weight of the building. The developer will have to bring the utilities needed such as roads, power lines and running power cables is expensive (Levy, 2013).
Land Assemblage Problem As It Relates To Urban Renewal
In urban renewal projects, developers are required to assemble numerous parcels owned by different individuals to make it a larger parcel. However, problems may make it impossible for assemblage to happen (Levy, 2013). In some cases, the owners of parcels supposed to be assembled may sell them at prices that combined, exceed the net benefit. In such a case, the developer will have no choice, but to abandon the project altogether. Even worse, owners willing to dispose their property may accept the determined prices, but end up inflating the valuation, to get a share of the benefits accrued to the project (Levy, 2013). In the event the inflated value is beyond the net benefit, the developer has no choice but to abandon it. This holdout problem affects land assemblage, and urban renewal becomes impossible (Antipova, 2018).
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Possible contradictions between the goals of urban renewal and related outcomes
In its context, urban renewal aims at improving the physical and demographic aspects of the cities to enhance the living standards of the inhabitants. According to Levy (2013), urban renewal is influenced by numerous economic aspects. For developers to do construction on virgin spaces, the only cost they have to meet is construction and the cost of land. However, to develop on land already occupied by other buildings, the developer has to meet the residual value of the existing buildings.
References
Antipova, A. (2018). Urban Environment, Travel Behavior, Health, and Resident Satisfaction. New York, NY: Springer
Levy, J.M. (2013). Contemporary urban planning . 10 th Ed. Upper Saddle River, NJ: Pearson-Prentice Hall Press.
