001-Syllabus



Spring Semester 2010 Mondays, 5:00-7:30 pm and as otherwise arranged Instructor: Presidential Professor Arthur C. Nelson, Ph.D., FAICP Office: Metropolitan Research Center, Department of City & Metropolitan Planning “Open door” office hour policy; meetings to be arranged via e-mail: Lecture Room: CRCC105
 * URBAN DEVELOPMENT METHODS **** & POLICIES **
 * URBPL 6310 **
 * acnelson@utah.edu **

Specific relationships between course purposes and Departmental goals and objectives are reviewed in Part 3.
 * PART 1 **
 * Course overview **
 * Purposes: **
 * Acquaint students with the concept of present the time-value of money and basics of real estate finance.
 * Survey the key methods of financing infrastructure.
 * Review basic project feasibility analysis.
 * Understand the role of pro forma analysis.
 * Introduce students to cash flow modeling and analysis. 
 * Outline the role of public policy in leveraging private development to achieve public purposes.
 * Required Readings: ** There is one required text, available at the bookstore:

Peter Linneman, Real Estate Finance and Investment: Risks and Opportunities. Second edition (2008). Philadelphia: Linneman Associates

Other readings and materials are posted on the Wiki page for this course: ** http://udmp2010.wikispaces.com/ ** Prerequisites: ** Ability to create and manipulate electronic spreadsheets. Expectations: ** All assignments are due by midnight of the class on the day specified. They are to be e-mailed to the professor at: **acnelson@utah.edu**

Assignments returned after this time but on the date due are docked one-third a letter grade, from an A- to B+, for example. Assignments are then reduced one-third of one letter grade for each subsequent school-day in which it is submitted late. For example, an A- paper due on Monday but received on Thursday becomes a C+ paper. These adjustments to late submissions may vary for any given assignment by the instructor; otherwise this is the submission policy. Extenuating circumstances may be considered but likely granted rarely.
 * Product Quality: ** All assignments use the professional report format. They must be type-written, spell-checked, and grammatically correct. Word will use a green squiggly underline to note grammatically incorrect words or phrases. It will use a red squiggly underline to note misspelled words. Products failing to meet those standards shall be downgraded if graded at all. Figures and tables must be neat and complete; products composed of cut-and-paste spreadsheets in text will not be considered neat. "**A**" products are those of highest professional and scholarly quality; they are suitable as writing samples for employer consideration or as elements of a professional portfolio. "**B**" products are those that are substantially correct but not of highest quality. "**C**" or lesser products are those that are of unacceptable professional quality.
 * Grades: ** This course does not rely on true-false, multiple choice, fill-in-the-blank, and short-answer essays on standardized test forms or blue books. Grading is subjective based on a variety of elements few of which can be clearly specified. Creativity, clarity, presentation, correctness in calculations, and soundness of judgment are the major elements comprising grades. Grading is on an 11-point scale where an "A" equals 11 and a "D-" equals 1.
 * Calculators: ** Students are to bring electronic calculators or laptop computers to class and use them to periodically calculate problems presented in class.


 * PART 2 **
 * University Policies **


 * Accommodations for Religious Beliefs**

Although unlikely given the content of this course, it is possible that some of the writings, lectures, films, or presentations in this course may include material that conflicts with the core beliefs of some students. Please review the syllabus carefully to see if the course is one that you are committed to taking. If you have a concern, please discuss it with the instructor at your earliest convenience.


 * Add/Drop Dates**


 * __Important Dates__:** The last day to add without a permission code is January 18; the last day to add with a permission code is January 25; last day to drop is January 20; the last day to withdraw is March 5.


 * ADA Statement**

The University of Utah seeks to provide equal access to its programs, services and activities for people with disabilities. If you will need accommodations in the class, reasonable prior notice needs to be given to the Center for Disability Services, 162 Olpin Union Building, 581-5020 (V/TDD). CDS will work with you and the instructor to make arrangements for accommodations. All written information in this course can be made available in alternative format with prior notification to the Center for Disability Services.


 * Academic Misconduct**

The following is the link to the website containing a statement from the University Student Handbook on academic misconduct:

[]

The following is a link to the Code of Ethics of the American Institute of Certified Planners (AICP):

[]

As students at the University of Utah and beginning planners, you should consider yourselves bound by both sets of ethical standards. By the second class session the presumption will be that each student has read both the statement from the Handbook and the AICP Code.


 * PART 3 **
 * College and Departmental Missions, Goals and Objectives **

The mission of the Master of City & Metropolitan Planning Program at the University of Utah is to prepare students to be professional and intellectual leaders by integrating excellence in the areas of teaching, research, and public life. This mission builds on and incorporates the mission statements of the University of Utah and the College of Architecture + Planning:
 * Mission**

The mission of the University of Utah is to serve the people of Utah and the world through the discovery, creation and application of knowledge; through the dissemination of knowledge by teaching, publication, artistic presentation and technology transfer; and through community engagement. As a preeminent research and teaching university with national and global reach, the University cultivates an academic environment in which the highest standards of intellectual integrity and scholarship are practiced. Students at the University learn from and collaborate with faculty who are at the forefront of their disciplines. The University faculty and staff are committed to helping students excel. We zealously preserve academic freedom, promote diversity and equal opportunity, and respect individual beliefs. We advance rigorous interdisciplinary inquiry, international involvement, and social responsibility. (Source: http://www.admin.utah.edu/president/mission.html)
 * //University of Utah//**

To facilitate an educational community of students, faculty, and staff with interests and expertise in creative design, building, planning, computer technology, issues of social and ecological responsibility, and the scholarly study of the history and theory of the built landscape. We educate future professionals who are concerned with constructing and maintaining the highest quality in our built and natural environments.
 * //College of Architecture + Planning//**

As a profession, City & Metropolitan Planning seeks to assist communities in managing social, economic, and environmental change at a variety of urban geographic scales within diverse cultural and ecological contexts. As an academic discipline, City & Metropolitan Planning seeks to understand the structure and function of cities and their metropolitan regions, the conditions for their effective governance, and their roles in a global network of urban places. The following goals and objectives are based on these professional and intellectual values with a focus on their application to issues and opportunities in the western United States.
 * Goals and Objectives**

Integrate environmental sustainability, resilience of the built environment to change, social equity, and normative economic efficiency as core values throughout the degree program.
 * Goal 1: Core Values**

Objective: Utilize ecological/systems approaches to emphasize interdependency, equity, sustainability and resiliency in course objectives, student projects, and studio workshops.


 * //This course will create analytic tools allowing students to craft ways in which to use public resources to leverage private investment for a variety of public purposes including financing “green” buildings, expanding affordable housing, and indirectly advancing social equity.//**

Equip planners to meaningfully engage a diverse society by fostering the development of interactive communication skills, including active listening, the understanding of a plurality of perspectives, and the ability to effectively communicate with a diverse range of audiences.
 * Goal 2: Communication**

Objective: Design each course, student capstone project, and workshop/studio to foster the development of one or more interactive communication skills.


 * //This course will endeavor to have students develop a succinct but informative approach to communicating reasonably complex financial analyses for diverse audiences.//**

Provide planners with an understanding of the many disciplines and interests that intersect with City & Metropolitan Planning and the skills to effectively collaborate with representatives of those diverse disciplines and interests.
 * Goal 3: Collaboration**

Objective: Incorporate into the curriculum courses, materials, and perspectives from a wide range of allied disciplines and foster the development of effective collaboration skills.


 * //This course will show the multi-disciplinary nature of urban development and redevelopment, and the role of development professionals with planning and/or business backgrounds to facilitate collaborations toward the common objective of using public resources to leverage private investment consistent with public objectives.//**

Provide leadership in teaching, research, and public activism to the community, profession, and discipline.
 * Goal 4: Leadership**

Objective: Nurture faculty and students to provide leadership in their respective field of work.


 * //It is hoped that this course will enable students to become leaders in shaping and implementing policies aimed at making the built environment more equitable and responsive to society’s needs.//**

Continually seek and employ new knowledge, methods, and techniques through innovation and creativity.
 * Goal 5: Innovation**

Objective: Encourage faculty, alumni, and students to expand research into substantive areas that provide new levels of understanding in their respective fields and to incorporate those insights into their creative work, teaching methods, and public service.


 * //This course provides students with the basic tools needed to craft innovative solutions that leverage public resources to advance society’s needs.//**


 * PART 4 **
 * Course outline **
 * // Subject to change //**

**// REAL ESTATE FOUNDATIONS //**

Linneman, Chapters 1-3, 20 & 21. To be reviewed between January 11 and January 25. Investopedia.com. 2007. Exploring Real Estate Investments.
 * __ January 11 (Monday) __****__ Orientation __**


 * __ January 18 (Monday) __****__ No Class – MLK Day __**

Linneman, Pre-requisite I, II, and III
 * __ January 25 (Monday) Foundations of Real Estate Finance, Valuation & Analysis I __**

Linneman, Chapters 4, 5, 6, 8, 13

C. F. Sirmans (1988). //Real Estate Finance//, 2nd edition (New York, NY: McGraw-Hill) Chapter 2: Compound Interest and Mortgage Mechanics, pp. 31-60.

C. F. Sirmans (1988). //Real Estate Finance//, 2nd edition (New York, NY: McGraw-Hill) Chapter 5: Property Analysis: Part 1, pp. 130-165.

C. F. Sirmans (1988). //Real Estate Finance//, 2nd edition (New York, NY: McGraw-Hill) Chapter 6: Property Analysis Part 2, pp. 166-192. See readings for January 25. See readings for January 25. Richard J. Roddeweg and Jared Shlaes, //Analyzing the Economic Feasibility of a Development Project: A Guide for Planners//.
 * // First Assignment presented (1/3 of course grade) //**
 * __ February 1 (Monday) Foundations of Real Estate Finance, Valuation & Analysis II __**
 * __ February 8 (Monday) Foundations of Real Estate Finance, Valuation & Analysis III __**
 * __ February 15 (Monday) Presidents’ Day – No Class __**
 * __ February 22 (Monday) Basic Pro Forma Anaysis __**

Readings in //Pro Forma// folder.

Central Atlanta Progress case study.

Salt Lake City Zoning Code

This lecture may be combined with FINAN 6760, 6:00-9:00PM in MLI 1150. **// FEASIBILITY ANALYSIS //** Linneman, Chapters 9-13.
 * //First Assignment due//**
 * // Second Assignment announced (1/3 of course grade) //**
 * __ March 1 (Monday) Project Feasibility Analysis I __**

C. F. Sirmans (1988). //Real Estate Finance//, 2nd edition (New York, NY: McGraw-Hill) Chapter 11: Construction Financing, pp. 296-313.

ULI Development Handbook Series. 2000. Financial Feasibility Analysis. //Multifamily Housing Development Handbook//, Chapter 5, pp. 83-102. Washington: Urban Land Institute.

ULI Development Handbook Series. 2000. Financial Feasibility Analysis. //Office Development Handbook//, Chapter 2, pp. 31-78. Washington: Urban Land Institute.

ULI Development Handbook Series. 2000. Financial Feasibility Analysis. //Multifamily Housing Development Handbook//, Chapter 5, pp. 83-102. Washington: Urban Land Institute.

ULI Development Handbook Series. 2000. Financial Feasibility Analysis. //Office Development Handbook//, Chapter 2, pp. 31-78. Washington: Urban Land Institute. See readings for March 1. The second half of this session may be combined with FINAN 6760, 6:00-7:30PM in MLI 1150. See readings for March 1.
 * __ March 8 (Monday) Project Feasibility Analysis II __**
 * __ March 15 (Monday) Project Feasibility Analysis III __**

This lecture will be combined with FINAN 6760, 6:00-9:00PM in MLI 1150. **// POLICY OPTIONS //** Land and building write down
 * __ March 22 (Monday) No Class – Spring Break __**
 * __ March 29 (Monday) Leveraging Private Real Estate Investment I __**

Fee reductions and waivers

Property tax abatement

Tax increment finance readings posted at **www.udmp2010.wikispaces.com**

See //Housing Affordabilty Tools//, US HUD, circa 1984.


 * //Second Assignment due//**

Low interest loans; secondary financing.
 * //Third Assignment announced (worth 1/3 of course grade)//**
 * __ April 5 (Monday) Leveraging Private Real Estate Investment II __**

Historic Preservation Tax Credit. []

Low Income Housing Tax Credit. []

New Markets Tax Credit [] [|www.epa.gov/brownfields/pubs/nmtxcr_0605.pdf] Equity participation; joint venture partnerships.

Linneman, Chapters 17 & 18.

C. F. Sirmans (1988). //Real Estate Finance//, second edition. Chapter 13 (Joint Ventures). See readings for April 5 **//Third Assignment due//**
 * __ April 12 (Monday) No Class – American Planning Association __**
 * __ April 19 (Monday) Leveraging Private Real Estate Investment III __**
 * __ April 26 (Monday) Student Presentations __**