How the municipal reserve (MR) will be scattered over the neighborhood to increase the property value?
MSc. Student: Md Saiful Islam
Partner Company: Urban Development Institute (UDI)
Time Period: March 2014 onwards
- To observe the spatial distributional effect of MR on property value in Edmonton
- Find out the best pattern to allocate 10% land as MR in designing a Neighbourhood
- Optimizing the distribution of MR to minimize the maintenance cost of open spaces/ park
Summary: Municipal Development Plan (MDP) of Alberta preserves 10% of the parcel of land in the neighborhoods of Edmonton as municipal reserve. When a developer proposes to develop a space, provincial legislation requires them to provide this portion of land holdings for school and recreational purposes. This study focuses on the distribution of the Municipal Reserve (MR) in the design process of Neighborhoods Structure Plan with high quality of life as well as maximizing the property value and utilization. The total population of Alberta comprises 28.9% aged adults and 17.8% senior and their favorite outdoor activities are walking for pleasure, gardening, and jogging. If scattered MR is introduced in designing the neighborhood, the aged and senior community could enjoy the benefits from MR more effectively for the proximity effect which could increase the quality of life. Another important fact is most of matured neighborhoods in Edmonton have this MR concentrated in one place where mostly school sites are located. Hedonic price analysis on some part of west Edmonton neighborhood shows positive correlation of lot price with respect to change in distance from a natural amenity preservation as golf course, Neighborhood Park. As the distance from the golf course increases value of the property decreases; 1 m increased distance reduces the property value 4.2%. Keeping the school site reserved, the distribution of some portion of the Municipal Reserve (MR) can maximize the property value which could increase the municipal revenue as well. A new hypothetical design was created based on distributing the concentrated MR to two separate proximate lot spaces which could increase 31% more buffer influence coverage of MR on existing lots. Due to this change in MR influence coverage adjacent lots derive incremental market value. This increased price in lots could generate an additional worth of $86,620 in terms of municipal tax revenue. Extra revenue generated from scattered MR can be utilized to meet the maintenance costs of those distributed neighborhood park.
Buffer effect of parks and open spaces
Effect of distance from park (Source: Miller, 2001)
Creating smaller possible lots near parks design rule (Miller, 2001)