March 2020 - Parks & Recreation - 23

The edge effect suggests that narrower lots fronting
on to a park create higher aggregate premiums, because
more homes benefit from being adjacent to the park.

Proximate Premiums Facilitate
Parks, Not Justify Them
Incremental premiums should be part of the debate
when considering the cost of amenities. When evaluating optimum land use, the sequence of events should be:
* The decision that a projected park has social merit
* The existence of political will to pursue it
* The exploration of a project's potential to enhance
the tax base, when the central focus shifts to financing it
Stay tuned for the April issue of Parks & Recreation, to
read more about the financial benefits that parks provide.
three zones of $94,500. Clearly, changes in any of the
four assumptions listed in the scenarios of Figure 2 will
lead to different outcomes. Readers are invited to insert
numbers into these assumptions that best reflect the
context with which they are concerned.
The alternative scenarios in Figure 2 suggest the
proximate premium may be less effective in covering
costs in suburban (Scenario B) than in urban (Scenario
A) areas. In a garden-style suburban neighborhood, a
park would provide continuity and reinforce the image
of the neighborhood, rather than provide a contrast to
its surroundings. However, there will be fewer homes
benefiting from proximity to the amenity than in urban
areas with denser housing patterns. Thus, if a suburban park is to deliver equivalent tax revenues, either
the premium paid by each home must be substantially
higher relative to urban contexts, or the cost of land
must decrease disproportionably relative to the number
of houses around the park.

The Edge Eﬀect
A determining factor of the magnitude of a park's impact on the property tax base is the extent of the park's
perimeter or edge. This is demonstrated in Figure 3,
which suggests the property premium emanating from
six 8.33-acre parks, with dimensions of 400 by 100
yards (giving an aggregate perimeter of 1,000 yards per
park) and non-overlapping impact zones, will be substantially greater in aggregate than the premium generated by the 1,210 by 200 yards (2,820-yard perimeter)
50-acre park.

John L. Crompton, Ph.D., is a University Distinguished Professor,
Regents Professor and Presidential Professor for Teaching
Excellence in the Department of Recreation, Park and Tourism
Sciences at Texas A&M University and an elected Councilmember
for the City of College Station (jcrompton@tamu.edu).

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Parks & Recreation

March 2020 - Parks & Recreation

Table of Contents for the Digital Edition of March 2020 - Parks & Recreation