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The
Readers Respond
Why Developers Love
Greenfields
In No
More Nerdistans (
Nov. 22, 2002
),
Bacon's
Rebellion argued that
Virginia
and its metro regions
should promote infill development and urban
revitalization instead of subsidizing urban sprawl.
Tom Antonelli responded:
I
beg to differ with you, my friend. From my
experience here in
Lynchburg,
the subsidy comes in part from the developer and
ultimately the purchaser. Curb-and-gutter and
sewer-and-water infrastructure, for example, is
specified by the city or county and the developer
foots the cost. The cost of the
stick house includes
this development cost but is still cheaper because
of construction efficiencies and the lower price of
land. Newer construction techniques allow for
greater operating efficiencies -- low flow
restrictors, truly segregated sanitary sewer,
improved drain field technology.
I
know from first hand experience how frustrating it
is to remodel an older property. Demolition costs
are higher because in some cases you have to deal
with EPA remedial regulations such as lead and
asbestos. Right now we a situation in Lynchburg that
one of our two "high rise" office
buildings, the Wachovia building, will go completely
black because asbestos is driving up the cost of
renovating the property. You also have to deal with
the labor unfamiliar with the intricacies of older
construction. Certain techniques used years past are
baffling to your newly minted contractor. Add to
that the higher material costs needed to retrofit
some aspects of a building, and it all adds up to
more than you can justify economically.
J.
Thomas Antonelli CFA
Flippin,
Bruce & Porter Inc.
Lynchburg
tantonelli@FBPINC.com
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