While participating in Smart Growth America/LOCUS’s Massachusetts Opportunity Zones Academy, the City of Salem focused on an underutilized plot of land adjacent to a proposed commuter rail station, and how they could encourage equitable new investment around it. LOCUS’s technical assistance presented the city with three different development scenarios to consider for future development spurred by Opportunity Zones.
This post is part of a series summarizing the experience and outcomes of the inaugural class of Smart Growth America and LOCUS’s Massachusetts Opportunity Zones Academy. Read about Salem, and be sure to check out the posts for Barnstable-Yarmouth, Fitchburg, and Greenfield-Montague.
During the Massachusetts Opportunity Zones Academy, Salem sought to analyze the regulatory framework for the parcels surrounding the proposed South Salem Commuter Rail Station area to help create a high-density, mixed-use neighborhood. The city also sought new ways to educate local land owners, anchor institutions and other development stakeholders on the return on investment and community benefit potential that Opportunity Zone projects have to offer.
Over the summer, Smart Growth America (SGA) and the City of Salem worked together to model the ways in which the parcels adjacent to the proposed station could be developed into a smart growth hub under existing and proposed land-use, zoning, and regulatory frameworks, as well as the Opportunity Zones tax incentive. SGA came up with three different development scenarios for the area, demonstrating how increases in density and uses affect the fiscal return of the development.
1. Existing zoning
This scenario assumed no changes to Salem’s existing industrial zoning of the South Salem Commuter Rail Station, but did assume increased industrial development. This scenario would lead to no change in the type of activity that currently goes on in this area.
2. Mixed-use along Jefferson Avenue
This scenario assumed two-story, mixed-use buildings added to the north of the proposed station area, with industrial structures being added to its south. Diversifying the type of development permitted in this area would give the city more opportunity to achieve their growth and development goals, including new affordable housing in proximity to public transit and other services.
3. Smart growth district
This scenario assumed three-story mixed-use buildings to the north of the station with a central public space, and industrial and live-work industrial buildings to the south. This would be a more intense version of the second option, creating an even greater sense of community within the area adjacent to the proposed station.
Analyses of the three scenarios concluded that higher mixed-use densities would yield higher surrounding property values and higher tax revenues for the city. The scenarios also demonstrated the type of transit-oriented, mixed-use development that will maximize activity around the proposed station.