Investing in Land

In recent weeks, news from both the East Coast and West Coast have strengthened the relationship between sustainable development and the future.

In Bordentown, New Jersey, the just-released land use plan flows from its commitment “To promote the orderly growth of lands within the City of Bordentown, taking into consideration the character of each district and its peculiar suitability for particular land uses, to generally encourage the most appropriate use of land through the police power, and to promote sustainable and orderly growth.”

In reporting on the plan, updated every five-to-six years, the Newark (NJ) Star-Ledger noted that “Perhaps the biggest changes to the plan were the removal of the terms ‘transit village’ and ‘redevelopment area.’ The result will be less emphasis on new, denser development within the historic, riverfront city that is home to about 4,000.”  This will clearly put more emphasis on outward development to accommodate growth without affecting the character of the town.

The character of the city is also a big part of an announcement made by the A.G. Spanos development company about its plans in Stockton, California, about 50 miles east of San Francisco.

The Company said it intends to create “The Preserve, a new community that will be a model for environmentally and economically sustainable development. The Preserve will generate a $2 billion investment, attract new businesses to Stockton, create new jobs, add a new community hospital, reduce reliance on automobiles, and is projected to cut greenhouse gas emissions by at least 50% compared to typical developments.”

In each case, one big, one small; one on the East Coast, one on the West; and one driven by government, the other by the private sector; the mission is the same — creating a sustainable land-use future.

In any new venture, like this blog, it is important to find allies — or at least people who are thinking along the same lines.  It is one thing to be on the leading edge, but quite another to be out there along on what cynics might call the “bleeding edge.”

As media and analysis moves from print to the web, there is a growing universe of information and advice to be found.  On a recent trip, I found this.

In an article on the link between land and financial returns, it says, in part: “Investing in raw land brings its best return when the land lies along a path of expanding economic growth and prosperity. But such expansion is not guaranteed, and its path can often change directions. Increases in land value are virtually always dependent upon the land’s future use, economic growth, and demographics, which all boil down to the fundamental law of supply and demand.”

So, while every one can see the land spread out before them, the best partners are those who best forecast its “future use.”  A company with which I am affiliated has a pretty good model and track record for such foresight.   Who would you nominate?