Benefits of Urban Renewal

 

• Drives urban productivity E.g.: Creating mixed use development projects in CBD – Creating regional hubs just outside of city limits to reduce residential and commercial pressure on inner city area. 
• Creates employment opportunities
• Attracts increased investments – Intensifying use of land – Densification of area can create new market for business 
• Enhance housing affordability – Brings key workers closer proximity to employment opportunities 
• Capitalize on existing infrastructure – Improvement of existing infrastructure saves cost of new expensive infrastructure 
• Increases tourism revenue – Improved infrastructure and services

Benefits for the Community

• Creates new local jobs – temporary and permanent and keeps earnings local. 
• Establishes an environment that fosters growth in new businesses. 
• Promotes the introduction of new housing products, and offers resources for reinvestment in established neighborhoods. 
• Eliminates hazards and conditions that undermine the integrity and safety of the community. 
• Stems the decline of property values and correspondingly the revenues of the municipality and other taxing entities. 
• Provides upgraded and needed infrastructure for future growth. 
• Supports local historic preservation efforts.

Benefits for the Local Government 

• Increases tax revenues from new businesses, consumer purchases and property taxes. 
• Keeps sales tax dollars local for use within the urban renewal area or community at large.
• Only method of financing capital improvements that does not require an increase in taxes. 
• Contains costs associated with the provision of government services by using existing infrastructure in a more fiscally responsible way. 
• Encourages in fill rather than fringe development, resulting in a more efficient use of land and lower municipal capital costs. 
• More effectively leverages transit improvements, correspondingly lowers regional infrastructure cost. 
• Identifies capital improvements needed to stabilize existing areas and encourage reinvestment. 
• Makes development within municipalities more cost effective than sprawl development outside.