Bank Lending Habits Hurting TOD

Transit oriented development is having a hard time taking hold in Salt Lake City. Some say the parking preferences of lenders are to blame.

By emphasizing the relatively high return on investment for developments with included parking, banks and lenders are slow to transition towards newer development models like TOD and New Urbanism, according to this article.

"Transit-oriented development isn't stymied by outdated zoning, unwilling developers or a lack of space. It turns out, banks, wedded to old-fashioned lending standards that stress parking, may pose the biggest blockade by denying financing.

The reason: Lenders operate from a tried-and-true principle that maintains more parking means less risk and a higher return on their investment. But ditching cars is the whole point of urban developers looking to create 24-hour live, work and play environments that hug light-rail hubs."

Thanks to Reconnecting America

Full Story: Are banks a roadblock to walkable development?

Comments

building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25
Red necktie with map of Boston

For dads and grads: tie one on to celebrate your city!

Choose from over 20 styles imprinted with detailed city or transit maps.
$44.95

NEW! City Map Posters

Available in 9 different cities.
$25.00

Essential Readings in Urban Planning

Planning on taking the AICP* Exam? Register for Planetizen's AICP * Exam Preparation Course to save $25.
Currently on backorder