Communities always struggle with the right mix of land uses that create an exciting and holistic environment for residents, commuters, and visitors. Numerous studies have looked at the economic impact for categorizing property for use as residential, commercial and recreations/open space and these studies have been grouped under the label called Cost of Community Services. 

 

Within these studies, findings have consistently shown that for every $1 of revenue generated by local government on residential property it expends $1.15 - $1.50 in public services for residents. This deficit is covered by the surplus generated on commercial property, which, in general, only receives $.35 - $.65 in community services for every $1 generated in revenue for local government. However, the simple notion that we should make more commercial property and less residential property doesn't create a community, only an office district that closes at 5:00 PM. 

 

Reaching a balance between residential, commercial and recreational uses requires innovative ways to reduce the deficit expenses associated with dedicated land uses. Creating economies of scale by pooling together residential and commercial resources, such as transit-oriented development with higher residential and commercial density in designated areas that have direct connection to mass-transit options will help preserve historic neighbors while meeting the economic gap in community services.