United Sta:es
Environmental Projection
Agency
Office of Wetlands,
Oceans and Watersheds
(4503F)
EPA841-S-95-002
September 1995
vvEPA
Economic Benefits
of Runoff Controls
Even though urban
runoff management
costs money,
properly designed
runoff systems car'
provide economic
benefits thai
counterbalance
or even outweigh
those costs
This report describe.'1
the economic.
impacts oj various
types of urban runoff
controls ano
presents case studies
of development
where the
implementation oj
runofj control.
requirement*
has provided
economic benefits ti •
developers and
property owners
-------
-------
Overview
PEOPLE HAVE a strong emotional attachment to water, arising from its aesthetic
qualities—tranquility, coolness, and beauty. As a result, most waterbodies within
developments can be used as marketing tools to set the tone for entire projects
(Tourbier and Westmacott, 1992). A recent study conducted by the National
Association of Home Builders indicates that "whether a beach, pond, or stream, the
proximity to water raises the value of a home by up to 28
percent." A 1991 American Housing Survey conducted
by the Department of Housing and Urban Development
arid the Department of Commerce also concurs that
"when all else is equal, the price of a home located
within 300 feet from a body of water increases by up to
27.8 percent" (NAHB, 1993). Dick Dillingham,
President of the National Association of Realtors'
Residential Sales Council, declares, "Water makes a
difference . . . there is such a very small supply of
properties that can claim a water location and it is
something you cannot add" (Lehman, 1994).
Although there are a limited number of natural
waterfront sites adjacent to lakes, rivers, streams,
estuaries, or open ocean, many opportunities exist to
create waterfront property. Homes and businesses can be
sited along hydroelectric or water supply impoundments
or near the banks of artificial lakes created for wildlife,
recreational, or aesthetic reasons. A practice becoming
more prevalent is to site developments around man-made
ponds, lakes, or wetlands created to control flooding and
reduce the impacts of urban runoff on neighboring natural
streams, lakes, or coastal areas. When designed and sited correctly, artificial lakes
or wetlands can help developers reduce negative environmental impacts caused by
the development process and increase the value of the property.
The purpose of this report is to show that certain urban runoff management
controls can be incorporated into a development in a way that provides aesthetic
and economic benefits. Table 1 summarizes the findings of this report. Urban
runoff controls that are pleasing to the eye and safe for children can lead to
increased property values. Because the beauty of natural surroundings can increase
real property values and enhance the quality of life, beautification of land areas
adjacent to waterways and detention ponds should be considered an integral part of
planning by developers. For existing runoff controls that are unsightly, corrective
renovations can be made to increase the property value and quality of life.
People have a strong
emotional attachment to
water, arising from its
aesthetic qualities-
tranquility, coolness,
and beauty.
-------
Table 1: Examples of real estate premiums charged for property fronting
Location Base Costs of Lots/Homes
Chancery on the Lake,
Alexandria, Virginia
Centex Homes at Bar/cley,
Fairfax, Virginia
Townhomes at Lake Barton,
Burke, Virginia
Lake of the Woods,
Orange County, Virginia
Dodson Homes, Layton,
Faquier County, Virginia
Ashbum Village,
Loudon County, Virginia
Weston Development,
Broward County, Florida
Silver Lakes Development,
Broward County, Florida
Highland Parks, Hybemia, Illinois
Waterside Apartments,
Reston, Virginia
ViUage Lake Apartments,
Waldorf, Maryland
Lake Arbors Towers,
MitcheUviUe, Maryland
Marymount at Laurel Lakes Apart-
ments,
Laurel Lakes, Maryland
Lynne Lake Arms,
St. Petersburg, Florida
Sale Lake, Boulder, Colorado
The Landing, Wichita, Kansas
Fairfax County, Virginia
Laurel Lakes Executive Park,
Laurel, Maryland
Condominium: $ 1 29, 990 - $ 1 39, 990
Home with, lot: $330,000 - $368,000
Townhome with lot: $130,000 - $160,000
Varies
Home with lot: $289,000 - $305,000
Varies
Home with lot: $1 10,000 - $1,000,000
Varies
Waterfront lot: $299, 900 - $374,900
Apartment Rental
Apartment Rental
Apartment Rental
Apartment Rental
Apartment Rental: $336 - $566/month
Waterfront lot: $134,000
Waterfront lot: $35,000 - $40,000
Commercial Office Space Rental
Commercial Office Space Rental
urban runoff controls
Estimated Water Premium
Up to $7,500
' Up to $10,000
Up to $10,000
Up to $49,000
Up to $10,000
$7,500 -$10,000
$6,000 - $60,000
depending on lake size,
location, and the percent
of lakefront property in
the neighborhood
$200 -$400 per linear
foot of waterfront,
depending on lake size
and view
$30,000 - $37,500
Upto$10/month
$5-$10/month
depending on apartment
floor plan
$lO/month
$lO/month
$5 - $35/month
depending on lake size
Up to $35,000
Up to $20,000
Up to $ 1 /square foot
$l'$l.50/sc]uarefoot
-------
Impacts and Controls
URBANIZATION CAUSES changes and impacts to the environment and our
communities. Many effects of urbanization are positive, such as new places for
people to live and work, increased recreational opportunities, and economic
growth. However, some of the impacts might be negative if they are not handled
with foresight.
Development leads to an increase in the amount of pollutants in an area.
Sediment from construction sites can end up in streams and rivers, choking plant
and animal life. Oil and gas from vehicles can leak onto roads and parking lots.
Fertilizers and pesticides, if not applied properly, can wash off lawns. Pesticides are
often found in higher concentrations in urban areas than in agricultural areas
(L7SGS, 1995). Pet waste, if not properly disposed of, can enter storm drains that
lead to wetlands, streams, or rivers. Household
chemicals, such as paints and cleaning products, can
leak if not stored or disposed of properly. All of
these pollutants can wash away when it rains and
end up in streams, rivers, lakes, estuaries, or ground
water. Many pollutants also bind to the sediment, so
when sediment washes away it takes the pollutants
with it.
Urbanization also leads to loss of pervious
areas (porous surfaces) that allow rainwater to soak
into the ground. This can increase the amount and
velocity of rainwater flowing to streams and rivers, as
illustrated in Figures 1 and 2. This increased speed
and volume of water can have many impacts, includ-
ing eroded stream banks, increased turbidity and
pollution, increased stream water temperature, and
increased water flow. All of these can have an
adverse effect on the fish and other organisms living
in the stream and the receiving waters. When
rainwater cannot soak into the ground, the result
can be a loss of drinking water because many areas
of the country rely on rainwater soaking into the
ground to replenish underground drinking water
supplies.
Loss of trees due to urbanization can have
negative impacts. Trees are important for controlling
the water temperature along the shorelines of
waterbodies. Since many aquatic plant and animal
species are sensitive to changes in water temperature
(trout, for example), it is important to keep stream temperatures as close to natural
levels as possible. When the shade of trees is lost, the water temperature can increase.
Most localgovernments
require some form of urban
runoff management for
new development.
Figure I: Development
decreases the amount of
rainwater that can soak into the
ground. (L.B. Leopold, L/SGS
Circular 554, 1968, cited in
NYSDEC, 1992)
-------
Higher, more rapid
peak discharge
More runoff volume
Lower, less rapid
peak discharge
TIME
Figure 2: Development can alter
an area's hydrology by increasing
the amount of impervious surface.
(adapted from Schuekr, 1987).
"Why not take an
environmental negative and
turn it into a positive, into a
visual asset?"
(Don Basile in Tourbier and
Watmacott, 1992)
"Best management practices," or BMPs, help address these impacts. BMPs
are designed to help reduce the amount of pollution in urban runoff. Some help to
control the volume and speed of runoff before it enters receiving waters. Many help
to increase the amount of rainwater that soaks into the ground to restore ground-
water. There are two general types of BMPs: structural and nonstructural. Struc-
_______-——____^^^_ tural controls involve building a "facility" for
controlling urban runoff. There are a variety
of structural controls and most require some
level of routine maintenance. This report
discusses two types of structural controls that
have been documented as providing economic
benefits: urban runoff ponds and constructed
wetlands. Nonstructural BMPs do not require
construction of a facility. For example,
planning a development so that there are
buffers along stream banks and minimizing the
amount of impervious area are types of
nonstructural controls. Structural and
nonstructural controls can be used in combi-
nation to manage runoff.
Urban runoff management controls are
now widely accepted due to lessons learned
from not planning properly for the impacts
associated with increased urbanization. Most
local governments require some form of urban
runoff management for new development.
They require such controls for two reasons: to
prevent pollution and to prevent flooding
caused by increased runoff, mostly from
impervious areas. Usually they require structural controls although some local
governments give credit for nonstructural controls.
Methodology
A LITERATURE REVIEW was conducted to examine the impacts of urban runoff
management ponds on property values. Many experts in the real estate field and
experts involved in management of urban BMPs/runoff controls were contacted.
Discussions with organizations including the Urban Land Institute, the American
Planning Association, and the National Association of Home Builders proved
valuable in identifying developments that have incorporated urban runoff manage-
ment requirements into site development and have realized an economic benefit.
Regional personnel of the U.S. Environmental Protection Agency (EPA) were
contacted and provided information on their region of the country as well as
potential case study examples. Developers and realtors provided comparative values
and information on premiums charged for various properties nationwide.
Information regarding case studies was compiled through literature reviews,
site visits, and discussions with developers and realtors. After the information-
gathering process was completed, case studies were selected. The case studies are
-------
Wet Pond
representative examples of positive economic impacts on new development, existing
development, and commercial property. Conclusions were made based on informa-
tion gathered and discussions with experts in the fields of real estate and urban
runoff controls.
Ponds and Wetlands for Urban Runoff Control
MOST STRUCTURAL urban runoff BMPs function on the principle that it is best
to hold runoff for a period of time. This approach serves two functions. It controls
the peak flow rates of water released from a site, thereby controlling downstream
flooding, and it allows pollutants to be removed from the water column. There are
many different types of urban BMPs, many of which add value to adjacent property.
This report focuses on two types of BMPs that are often used: urban runoff "wet
ponds" and constructed wetlands, as illustrated in Figure 3.
Wet Ponds
Wet ponds, as their name implies, are runoff holding facilities that have water
in them all the time. Storm flows are held in the pond temporarily and then
released to maintain healthy downstream habitats. Sediment and other pollutants
settle out of the water and are not discharged
to the receiving waters. Wet ponds are usually ^^^^^^^^^^^^^^^^^^
vegetated, and the plants' roots hold sediment
and use the nutrients that are often contained
in urban runoff. The ponds are designed to be
big enough to control onsite and offsite
flooding in the event of a major storm. This
helps to control impacts on downstream
habitats.
Many of the "lakes" in developments are
actually detention or retention wet ponds.
Developers can design the wet ponds to look like
natural lakes. Wet ponds can be highly effective
in removing sediment and in reducing nutrients
if they are properly constructed and maintained.
They can usually be used for large drainage areas.
Wet ponds can be incorporated into new
development site plans and can enhance the
value of surrounding property. Old wet ponds can also add value to the surrounding
property once they have been aesthetically improved.
Constructed Wetlands
Wetlands serve an important function in controlling the impacts of urban
runoff. Because wetlands are heavily vegetated, they serve as a natural filter for
urban runoff. They also help to slow the flow of water to the receiving waters and
replenish groundwater. When properly designed, constructed wetlands have many
"Preservation is not a
problem for developers;
it's a golden opportunity.
(David Hoffman in Tourbier and
Westmacott, 1992)
Figure 3: Wet ponds and constructed
wetlands are two types of runoff
controls.
-------
Figure 4: Urban runoff controls
can be assets to a development.
"Whether a beach, pond, or
stream, the proximity to
water raises the value of a
home by up to 28 percent."
(Lehman, 1994)
advantages as an urban BMP, including reliable pollutant removal, longevity,
adaptability to many development sites, ability to be combined with other BMPs, and
excellent wildlife habitat potential (MWCOG, 1992).
Making Urban Runoff Management Work for You
IN MANY CASES, developers are able to realize'additional profits (and quicker
sales) from units that are adjacent to a wet pond (Harden 1995; MWCOG, 1983).
If the urban runoff manage-
^MHM^^^^MMM^^^MMi^^^MBBH^Mai^^B ment control is also
developed to allow passive
recreation (e.g., a walking
path around a lake or
pond), the recreational area
and the wet pond/con-
structed wetland can
become the feature attrac-
tion when advertising the
property (Figure 4). Adding
walking trails, fitness
equipment, gazebos, bird
houses, and other facilities
to enhance a detention area
can be costly, but eventually
additional profits are
realized (Sala, 1995).
The impacts of urban runoff management controls on property values are site-
specific (CDM, 1982). Controls can affect property values in one of three ways:
increase the value, decrease the value, or have no impact. "Urban runoff controls
are greeted with varying degrees of skepticism and acceptance by residential versus
commercial property owners," according to Judith Costello Pearson, Manager,
Market Research, Fairfax County (Virginia) Economic Development Authority.
One must consider the appeal of an attractive urban runoff management control
along with the liability of open water. A childless adult might perceive a wet pond as
an amenity, but a family might view it as a potential hazard to children.
Factors That Lead to Increases in Property Value
Urban runoff systems with standing water often appear to be natural systems.
A clean lake or pond offers benefits to developers by creating an ideal setting for
model units and for the sales office. If located close to the entrance and visible from.
the road, it will have considerable curb appeal and can repay installation costs
through faster sales, in addition to raising the value of adjacent lots (Tourbier and
Westmacott, 1992). Developers can charge premiums (extra charges) for property with
water views, views of wooded land, or other amenities.
-------
Many ponds planned for urban runoff control are also designed to provide
recreational facilities. They are often surrounded by walking trails and picnic areas
complete with gazebos and outdoor grills. The ponds also can be used by
nonmotorized boats like canoes and are excellent areas for bird-watching. This
natural setting creates a home for a variety of birds and animals that homeowners
find appealing (Figure 5). Fountains, often included in plans, also add to the
aesthetic qualities of the pond.
Many developers have capitalized on urban runoff regulations by designing
aesthetic wet ponds and marketing them as if they were natural lakes or ponds. A
Pennsylvania developer has said, "We are required to build urban runoff manage-
ment basins. Why not take an environmental negative and turn it into a positive,
into a visual asset?" (Tourbier and Westmacott, 1992). In an effort to incorporate
landscape design into stormwater management
planning to enhance the value and quality of develop-
ment, General Telephone of Marion, Ohio, created an
attractive wet pond ornamented with plantings,
stones, and pedestrian paths. Runoff from the Hyatt
Regency Ravina hotel complex ir\ Atlanta, Georgia,
flows into a series of beautifully designed wet ponds
linked together by streams and waterfalls that are kept
flowing by recirculating pumps. A carefully designed
wet pond at the Woods in Rhiriebeck, New York,
provides flood control and water quality benefits, and
the waterfront created by the impoundment enhances
the value of surrounding townhouses (NYSDEC,
1992).
"Higher sales prices for
properties with views of the
water have been consistent
lor 23 years."
(Wade, 1995)
Factors That Lead to Decreases
in Property Value
Residential lots located near an urban runoff
pond are often a concern to home buyers with young
children. Parents fear their children will be attracted
by the water or wildlife and drown. Incidents of
drowning in urban runoff management areas have
occurred in residential as well as commercial areas.
Children who fall through frozen ponds or fall into the
water without knowing how to swim are usually the
victims (Suit filed, 1990; Woellert, 1993). Adults
have also drowned in detention ponds. A Chicago
man fell into an 18-foot-deep retention pond located i
on the property of a junkyard and drowned (OSHA
probing, 1994). According to one real estate appraiser, safety is the only issue
regarding urban runoff management controls that adversely affects property value
Qablonski, 1995).
Figure 5: Constructed
wetlands provide wildlife
habitat and are
aesthetically pleasing.
-------
Figure 6: Natural "fencing" can
be used as a protective device.
Urban runoff management
controls are now widely
accepted due to lessons learned
from not planning properly for
the impacts associated with
increased urbanization.
One solution is to construct a fence surrounding the pond to deter entry and
reduce accident potential. Chain-link fencing is often used. Rusting, poorly
maintained chain-link fencing reduces any aesthetic qualities of the area, but
fencing that has a black or green protective coating is more attractive and can
improve the appearance of the runoff control. Prince William County, Virginia, has
a fencing ordinance for constructed ponds aimed at preventing entry of children
under 4 years of age (Guzman, 1995; MWCOG, 1983). A "protective device" of
the developer's choice must
be placed around ponds
near residential areas with
over 2 feet of standing
water or more than 2 hours
of drainage time. The
protective device may be
fencing or plantings of
bushes and trees (Figure 6);
in some cases, flat slopes or
shallow beaches extending
at least 20 feet from the
perimeter of the pond are
acceptable. These flat
slopes or beaches provide
protection for children who
could roll down steep slopes
directly into the pond.
Using flat slopes reduces the amount of land available for development, however,
and is the least used option. Fencing is the most inexpensive solution and is used
frequently. It has been reported to be an "attractive nuisance," however, because
some older children feel challenged to climb fences and enter restricted areas
(MWCOG, 1983).
Requirements to construct wet ponds for urban runoff management are a
concern for developers, who lose the potential profit from this otherwise buildable
land. This unrealized profit, or foregone value, can be substantial if, for example, a
builder is no longer able to construct several planned townhomes (Rolband, 1995).
Developers often increase the number of homes built in the area available for
development and reduce the size of individual homes to recoup the foregone value
of the property.
Poorly maintained wet ponds or constructed wetlands are often unsightly due
to excessive algal growth or garbage build-up. These conditions are considered
detriments by area residents and people passing through the areas. Wet ponds and
constructed wetlands can also become mosquito breeding grounds. Mosquito
problems usually can be reduced or eliminated by designing the wet pond so that all
portions of the basin are connected to open water to allow natural predators to
-------
control the mosquito larvae (Tourbier and Westmacott, 1992). Generally mosqui-
toes are not a problem in the presence of a good biological community. Organic
controls such as mosquito-eating fish or insecticidal bacteria like Bacillus
thuringiensis israelensis (Bti), however, are also options where mosquitoes need to be
controlled.
Improving the Acceptance of Urban Runoff Facilities
Effective landscaping can do much to overcome the disadvantages of urban
runoff systems and improve the appearance of facilities. Banks of urban runoff
storage areas and drainage ditches should be graded smoothly into adjacent areas
where feasible. Steep slopes should be protected against erosion by stabilization
techniques, such as gabions, rip-rap, or other practices that detract as little as
possible from the natural setting. Planting and preservation of trees, shrubs,
and other vegetation should also be a part of the improvement plan
(Poertner, 1974).
Sediment accumulation and waterlogging of other-
wise usable land areas can be avoided by the use of proper
design, construction, and operation techniques. Ponds
used for urban runoff control can be spared from excessive
sediment accumulation by the use of forebays for silt
collection. The amount of silt transported can be reduced
by directing runoff through vegetated areas or specially
designed runoff filters. Waterlogging of land surrounding
urban runoff storage areas can be minimized by sloping the
ground toward storage areas, eliminating water pockets, and
minimizing the frequency and duration of ponding on areas
otherwise suitable for multipurpose use (Poertner, 1974).
Operation and Maintenance
Wet ponds and constructed wetlands require periodic maintenance to
preserve environmental and monetary benefits of "waterfront" lots. How-
ever, the benefits of higher resale value and quality of life typically outweigh
the combined costs of the initial lot premium and annual maintenance fees
charged by homeowners' associations. In fact, operation and maintenance costs
of urban runoff retention ponds can be as low as $62 per year for homeowners
(MWCOG, 1983).
When designed and sited
correctly, artificial lakes or
wetlands can help
developers reduce negative
environmental impacts
caused by the development
process and increase the
value of the property.
-------
THE FOLLOWING CASE studies highlight developments where the incorporation of urban runoff
controls resulted in economic benefits to the local homeowners or developers. The case studies
detail how the presence of aesthetically designed runoff controls affected both the initial sale value
of new developments and the resale values for existing developments.
New Development
Columbia, Maryland A landmark survey by the National Institute for Urban Wildlife indicated that 75
percent of the residents of Columbia, Maryland, a community planned for a population
of 100,000, prefer urban runoff ponds that contain permanent pooh of water, wetlands, and wildlife over the dry ponds
many municipalities prescribe for their subdivisions. Residents (94 percent) overwhelmingly believed that managing future
runoff basins for fish and wildlife as well as for flood and sediment control would be desirable. Residents (92 percent)
considered the view of birds and other wildlife to be particularly important and felt that the sight of them outweighed any
nuisances they created. Perhaps most importantly, 75 percent of Columbia homeowners felt that permanent bodies of
water added to real estate values and 73 percent said they would pay more for property located in a neighborhood
with, stormwater control basins designed to enhance fish or wildlife use. The study in Columbia covered an area
that contained 3 lakes, 22 runoff ponds wirh a permanent pool of water, and 9 dry detention basins (Adams etal., 1984;
Tourbier and Westmacott, 1992).
For further information contact Charles Rhodehamel, (Columbia Association, Land Management Division,
9450 Gerwig Lane, Columbia, Maryland 21046; phone (410) 381-0288.
, Illinois Residents of seven Champaign-Urbana, Illinois, subdivisions with urban
runoff detention ponds were tjuestioned about the role the pond played in their
decision to purchase their home. Sixty-three percent of the respondents living adjacent to a wet pond identified the pond as
what they liked most about their neighborhood. Seventy-four percent of homeowners surveyed believed that wet ponds
contributed positively to the image of a subdivision as a desirable place to live. Only 3.5 percent felt a wet pond had a
negative influence on the image of their neighborhood. Overall, respondents believed that lots adjacent to a wet pond
were worth an average of 21.9 percent more than comparable nonadjacent lots in ike same subdivision. Eighty-
two percent of all respondents said they would, in the future, be willing to pay a premium for a lot adjacent to a wet pond
(Emmerling-DiNovo, 1995).
Boulder, Colorado Buik in 1993, the Sale Lake subdivision of single -family homes surrounds a 4-acre
constructed wetland. Sale Lake demonstrates environmental sensitivity in suburban
development. Lots located alongside the wetland sold for as much as $134,000, up to a 30 percent premium
over lots with no water view (St. Germain, 1995).
For further information contact Will St. Germain, St. Gsrmain Construction, Inc., 2709 Pine Street,
Boulder, Colorado 80302; phone (303) 449-1379.
10
-------
Highland Parks, Illinois "Preservation is not a problem for developers; it's a golden opportunity," masts the
president of the development company for Hybemia, a community of 122 single-
family houses on a 133.5-ocre site in Highland Parks, Illinois. The site, zoned for 40,000-square-foot lots, was laid out
around a constructed pond/stream system and 27 acres of land approved as a state nature preserve. The site includes
16.5 acres of ponds. Forebays at urban runoff inlets catch sediments (Tourbier and Westmacott, 1992).
Hybemia is a an exampk of ecological landscape planning. Waterfront lots, which now sell for $299,900 to
$374,900, draw a 10 pet-cent premium above those with no water view (Margolin, 1995).
For further information contact Peter Margolin, Hybemia Homeowners Association, c/o Red Seal Development Corporation,
425 Huehl Road, Building 18, Northbrook, Illinois 60062; phone (708) 272-5600.
Alexandria, Virginia Chancery on the Lake, a condominium development in Alexandria, Virginia, is a
residential project with an attractive 14-acre urban runoff detention area. Realtors
are currently promoting the wet pond as the development's feature setting point. The wet pond will be surrounded by a
walking trail, and a gazebo and fishing pier will also be built. According to Ginger Harden, Sales Associate of Chancery
Associates LP, condominiums are priced between $129,990 and $139,990. Condominiums that front the lake are
selling at a $7,500 premium. For the first four buildings on the market, a $5,000 premium was charged for units
fronting the lake. The lakefront units were the only units selling, and now the premium has been raised to $7,500
(Harden, 1995).
For further information contact Eric Yakuchev, sales manager, 6540 S. Van Dorn Street,
Alexandria, Virginia 22315; phone (703) 922-7171
St Petersburg, Florida & development consisting of apartments and townhouses in St. Petersburg, Florida,
Lynne Lake Arms, has four urban runoff detention ponds on site. Three of the
ponds are 3 to 5 acres in size, and the fourth is a .25-acre pond with a large fountain in the center. Apartments or
townhouses rent for between $336 and $566 a month. Units facing the three smaller ponds have a $15 per month
waterfront premium; units facing the large pond are rented at a $35 per month premium (Mclnturf, 1995). A
small channel connects the large detention pond and one of the smaller ponds. Even apartments fronting this channel
have a $5 per month waterfront premium.
For further information contact Mark Mahaffey, leasing agent, 5800 Lynn Lake Drive South,
St. Petersburg, Florida 33712; phone (813) 823-3399.
Wichita, Kansas The owner of a 723-acre parcel of land had plans to fitt deteriorating wedands before
building a subdivision. He was persuaded to enhance them instead and now promotes
enhanced and constructed wetlands as the feature selling point of The Landing. A lake with 3,750 feet of shoreline
provides aesthetic and recreational value, as well as sensible detention of urban runoff. Waterfront lots currently sell
for $18,000 to $40,000, a premium of up to $21,000 (150 percent) above comparable lots with no water
view (Baird, 1995).
For further information contact Sally Baird, sales agent, 520 S. Holland Street, Suite 401,
Wichita, Kansas 67209; phone (316) 722-0777.
-------
Existing Development
FsirfdX County, Virginia Since their construction in 1971, units facing the constructed pond in the townhouse
community o/Pinewood Lakes have sold at a premium. Of the 497 units, all with
exactly the same square footage according to tax. records, only 20 have direct water views in either the front or the rear.
Figures show the average 1994 sales price, of townhouses lacking the water amenity to be $93,833. The average
waterfront sales price is $ 100,000, a premium of $6,117. Higher sales prices for properties with views of the water
have been consistent /or 23 years (Wade, 1995).
Evans Mills is an upscale community of 41 townhouses in the Tysons Corner area built around an existing pond.
Fairfax County tax records show Evans Mills waterfront townhouses sell at higher prices. In 1994, waterfront homes
sold for an average $17,467 premium, above the average $419,200 price of homes not facing the pond (Wade,
1995).
Single -family homes can have higher inituil sale values as well as higher resale values when they face urban runoff
detention areas. County tax records reveal that land values in Franklin Farms, an established residential neighborhood
in northern Virginia, are highest when located in view of its 5-acre urban runoff detention area, which is surrounded by a
walking path furnished by the developer. "Waterfront" homes in this neighborhood sold for 10 to 20 percent more
initially and again at resale than land with no water view (Downham, 1995). (These percentages might be slightly
higher than actual premiums due to possible additional amenities in the waterfront homes.)
Commercial Property
Prince George's County, Mary/and
Laurel Lakes Executive Park, commercial property in Laurel,
Maryland, oho has created an attractive wet pond system. Office space
fronting the water rents at a premium of $100 to $200 per month depending on the size and layout of the office
space (Kalish, 1995). On average, first-class office space located in Prince Georges County with a lakefront view rents
for between $17.50 and $20.00 per square foot, whereas properties without a view rent for between $16.50 and $18.50
per square foot (Duncan, 1995).
Fairfax County, Virginia
Commercial office space also can be valued higher when it fronts aesthetically
designed runoff retention ponds. The lakefront Lakeside at Avion and Tysons
Pond, both located in Fairfax County, Virginia, are examples of commercial projects that took advantage of the require-
ment to implement urban runoff managenient controls by enhancing a retention pond and then capitalizing on the
presence of the pond when naming the project. In Fairfax, Virginia, the average cost of commercial office space
without water as an amenity is approximately $15 per square foot. The average leasing rate for commercial
'waterfront office space is $16 per square foot (Constam, 1995; GoeUer, 1995).
12
-------
In a soft commerical real estate market, where office space is overabundant, it can be difficult to ask for a premium
of any kind. However, real estate brokers agree that, when all else is equal, commercial waterfront property
rents considerably faster than space that does not front water (Berman, 1995; Constam, 1995; GoeUer, 1995;
Pepper, 1995). Although a tenant might not be charged for a water amenity, it can provide a steadier flow of
income and fewer vacancies for the realtor (Berman, 1995). Mike Pepper, Vice President ofCB Commercial Real
Estate Group, Inc., declares that "There is absolutely a premium associated with commercial lakefront property.
Anything adding to the aesthetk value is going to raise a property's value." Mr. Pepper concedes that in the
saturated market of northern Virginia, property with a water view might or might not rent for a $ I -$3 per square
foot premium, but will always sell or be rented more quickly (Pepper, 1995).
Conclusion
ENVIRONMENTAL BENEFITS are not the only valid reason for encouraging
developers to incorporate urban runoff controls into new residential and
commercial developments. Increased property values can result from aesthetically
landscaped controls. Both homeowners and developers have realized benefits from
beautification of areas adjacent to waterways and detention ponds. Residents find
the beauty and tranquility of water, as well as fish, birds, and other wildlife, highly
desirable. The beauty of natural surroundings increases real residential property
values by up to 28 percent while also enhancing the quality of life. Commercial
property owners, too, can benefit when their property is adjacent to an aesthetically
designed urban runoff control. They can realize lower vacancies, lower tenant
turnover, and high rental prices. Real estate professionals agree that the more
amenities a property has, the faster it will sell or rent. Of course, to maintain higher
property values, aesthetics must be considered during the operation and
maintenance of wet ponds and constructed wetlands over the years. Moreover, for
runoff controls to be successful, they must have the support of people in the
community as well as developers (Adams et al., 1984). Then, everyone can benefit.
-------
References Cited
Adams, L., E. Dove, and D. Leedy. 1984- Public Attitudes Toward Urban Wetlands for
Stormwater Control and Wildlife Enhancement. Wildlife Society Bulletin 12(3):299-303.
Baird, Sally, The Landing, personal communication. February 24, 1995.
Berman, Steven, U.S. Census Bureau, personal communication, May 2, 1995.
COM. 1982. National Economic Overview of Urban Stormwater Pollution Abatement. Camp
Dresser & McKee, Inc.
Constam, John, Grubbs & Ellis Brokerage Firm, personal communication, May 2, 1995.
Downham, John, Fairfax City Real Estate Office, personal communication, January 9, 1995.
Duncan, Ken, WE Chesley Real Estate, Inc., personal communication, May 2, 1995.
Emmerling'DiNovo, C. 1995. Stormwater Detention Basins and Residential Locational
Decisions. Water Resources Bulletin 3 1 (3) :5 15-520.
Goeller, Kevin, Colquitt Caruthers, personal communication, May 2, 1995.
Guzman, Oscar, Prince William County, Virginia, personal communication, January 11, 1995.
Harden, Ginger, Chancery Associates LP, personal communication, January 9, 1995.
Jablonski, Al, Chantilly Real Estate Appraisal, personal communication, January 5, 1995.
Kalish, Peter, Michael T Rose Associates, personal communication, March 2, 1995.
Lehman, H. J. 1994, January 8. Study Finds Environment Affects a Home's Value. The
Washington Post. p. E, 1:4-
Margolin, Peter, Hybernia Homeowners Association, personal communication, February 24,
1995.
Mclnturf, Trina, Leasing Agent, Lynne Lake Arms, personal communication, January 6, 1995.
MWCOG. 1983. An Evaluation of the Costs of Stormwater Management Pond Construction and
Maintenance. Report by Water Resources Planning Board, Department of Environmental
Resources, Metropolitan Washington Council of Governments, Washington, DC.
MWCOG. 1992. Design of Stormwater Wetlands: Guidelines for Creating Diverse and Effective
Stcvmwater Wetland Systems in the Mid-Atlantic Region. Report by T. R. Schueler, Anacostia
Restoration Team, Department of Environmental Programs, Metropolitan Washington Council
of Governments, Washington, DC.
NYSDEC. 1992. Reducing the Impacts of Stormwater Runoff from New Development. New York
State Department of Environmental Conservation, Division of Water, Bureau of Water Quality
Management, Albany, NY.
OSHA Probing Junkyard Where Employee Drowned. 1994, June 30. The Chicago Tribune, p.
Pepper, Mike, CB Commercial Real Estate Group, Inc., personal communication, May 2, 1995.
Poertner, H.G. 1974. Practices in Detention of Urban Stormwater Runoff. APWA Special Report
No. 43. American Public Works Association, Washington, DC.
Rolband, Mike, Wetland Studies & Solutions, personal communication, January 4, 1995.
Sala, Tony, Foster Brothers, personal communication, January 4, 1995.
Suit Filed in Fairfax Boy's Drowning. 1990, May 31. The Washington Post, p. B, 6:2.
Tourbier, J. T, and R. Westmacott. 1992. Lakes and Ponds. Id ed. The Urban Land Institute,
Washington, DC.
14
-------
USGS. 1995. Nationd Water Quality Assessment Program Repon. U.S. Geological Survey,
Reston, VA.
Wade, J. 1995. Summary of the Effects of Waterfront on Resale of Property. Draft report
prepared for Tetra Tech Inc., Fairfax, VA.
Woellert, L. 1993, May 31. Baby, Man Victims of Drowning. The Washington Times, p. B, 1:6.
Other References
Bibby, Sylvia, Long & Foster Realtors at Lake of the Woods, personal communication, February
23, 1995.
Black, Tom, Urban Land Institute, personal communication, May 2, 1995.
Burns, Emma Jane, Kettler Folines Builders, personal communication, January 3, 1995.
Crist, Dean, National Association of Home Builders, personal communication, May 2, 1995.
Dodson, Larry, Dodson Homes, personal communication, February 23, 1995.
Draughn, Sherree, Waterside Apartments, personal communication, February 23, 1995.
Flight, Terri, Re/Max Realty, personal communication, January 6, 1995.
Glenn, Sylvia, Lake Arbors Towers, personal communication, February 23, 1995.
Grazer, Anita A., Fairfax County Economic Development Authority, personal communication,
January 3, 1995.
Johnson, Margaret, Lakeside North Apartments, personal communication, February 23,1995.
Lawton, Patsy, Village Lake Apartments, personal communication, February 23, 1995.
Leopold, L.B., USGS Circular 554,1968, cited in NYSDEC, 1992.
Moore, Priscilla, Prudential Preferred Properties, Townhomes at Lake Barton, personal commu-
nication, February 23, 1995.
NAHB. 1993. Housing Economics. National Association of Home Builders, Washington, DC.
Pearson, Judith Costello, Fairfax County Economic Development Authority, personal communi-
cation, January 3, 1995.
Randolph, Arch, Ryland Homes at Ashburn Village, personal communication, February 23,
1995.
Schueler, T. 1987. Controlling Urban Runoff: A Practical Manual for Planning and Designing Urban
BMPs. Metropolitan Washington Council of Governments, Washington, DC.
St. Germain, Will, St. Germain Construction, Inc., personal communication, February 24, 1995.
Steinberg, Ann, Marymount at Laurel Lakes Apartments, personal communication, February
23,1995.
Terrene Institute. 1994a. Fundamentals of Urban Runoff Management. U.S. Environmental
Protection Agency, Office of Water, Washington, DC.
Terrene Institute. 1994b. Urbanisation and Water Quality—A Guide to Protecting the Urban
Environment. U.S. Environmental Protection Agency, Office of Water, Washington, DC.
USEPA. 1993. Guidance Spe<^ng Management Measures for Sources of Nonpoint Pollution in
Coastal Waters. EPA 840-B-92-002. U.S. Environmental Protection Agency, Office of Water,
Washington, DC.
15
-------
Glossary of Terms
Best management practice (BMP): A practice or combination of practices that are
determined to be the most effective and practicable (including technological,
economic, and institutional considerations) means of controlling point and non-
point source pollutants at levels compatible with environmental quality goals.
Constructed wetland: An artificial wetland system designed to mitigate the impacts
of urban runoff.
Forebay: An extra storage space provided near an inlet of a wet pond or con-
structed wetland to trap incoming sediments before they accumulate in the pond.
Gabion: A rectangular basket or mattress made of steel wire in a hexagonal mesh.
Gabions are generally subdivided into equal-sized cells that are wired together and
filled with stones, forming a large, heavy mass used for shore protection.
Impervious area: A hard surface area (e.g., parking lot) that prevents or retards the
entry of water into the soil, thus causing water to run off the surface in greater
quantities and at an increased rate of flow.
Nonpoint source pollution: Water pollution caused by rainfall or snowmelt moving
over and through the ground which carries pollutants. A nonpoint source is any
source of water pollution that does not meet the legal definition of point source in
section 502(14) of the Clean Water Act.
Nonstructural control: A practice that does not require construction of a facility to
control urban runoff.
Premium: An additional charge for real estate property with an amenity such as a
water view or a view of wooded land.
Receiving waters: Lakes, rivers, wetlands, coastal waters, and groundwaters that
receive runoff.
Riprap: A protective layer or facing of quarrystone placed to prevent erosion,
scour, or sloughing of an embankment or cliff.
Sediment: The product of erosion processes; the solid material, both mineral and
organic, that is in suspension, is being transported, or has been moved from its site
of origin by air, water, gravity, or ice.
Structural control: A practice that involves design and construction of a facility to
mitigate the adverse impact of urban runoff, and often requires maintenance.
Urban runoff: The portion of precipitation, snowmelt, or irrigation water that does
not naturally percolate into the ground or evaporate, but runs off the land into
streams or other surface water. It can carry pollutants from the air and land into
the receiving waters.
Wet pond: Pond for urban runoff management that is designed to detain urban
runoff and always contains water.
-------
-------
------- |