Green Infrastructure: Highlighting the Economic Benefits

Polluted stormwater runoff is a primary cause of water pollution nationwide. To restore the health of local waterways, protect downstream drinking water supplies and address evolving federal and state regulatory requirements, cities nationwide are making significant investments to reduce stormwater runoff, which can have important implications for the commercial building sector.

In contrast to traditional stormwater management solutions, which involve expanding and adding to existing cement and pipe systems that convey rainwater away from where it falls and into stormwater and sewer systems, GI practices are designed to manage stormwater on site. Green infrastructure can encompass installation of permeable pavement, green roofs, parks, roadside plantings and other mechanisms that mimic natural hydrologic functions, such as infiltration into soil and evapotranspiration into the air, as well as rain barrels or other methods to capture runoff on site for productive use.

Enter Green Infrastructure

Commercial property owners should be particularly aware that cities are moving away from traditional stormwater management solutions that rely solely on fixing or expanding underground sewer and stormwater infrastructure and looking toward GI or natural alternatives to help solve stormwater problems. Well-positioned developers can greatly benefit from the trend toward green infrastructure through reduced potable water bills, improved energy efficiency and improved ability to attract tenants to greener properties that are more vegetated, cool and enjoyable to use.

In an increasing number of cities, new development and redevelopment projects are subject to regulatory performance standards that require property owners to capture specified volumes of runoff and manage it on site, rather than conveying it into municipal storm and sewer systems. Some cities are also offering reduced stormwater utility bills to property owners who meet such standards, including owners who voluntarily retrofit their existing developed sites.

Southern California’s newest industrial rail track serving 200 acres in Hesperia… land now available.

The Natural Resources Defense Council recently published Rooftops to Rivers II, which provides case studies for 14 geographically diverse cities that are all leaders in employing green infrastructure solutions to address stormwater challenges; as well as Financing Stormwater Retrofits in Philadelphia and Beyond, which explores how cities can attract billions of dollars in private investment in stormwater retrofits. Nationwide, cities are embracing green infrastructure, and with an ever-growing body of research and guidance resources, developing sustainably has never been easier. Voluntary certification programs — such as LEED and the Sustainable Sites Initiative — offer guidelines for incorporating green infrastructure into building site design, and, in many places incentives such as expedited permitting processes and tax credits are available.

Developers are increasingly taking a multi-layered approach to stormwater management by incorporating green infrastructure into property development and design at the early planning stages — building those in up front at little cost — and integrating green infrastructure concepts and practices into day-to-day operations and business planning. For example, research conducted by ECONorthwest and others indicates that utilization of green infrastructure among commercial property owners can increase the number of buildable lots, and the installation of grassy swales can save developers on construction of curbs and gutters. Green infrastructure can also reduce permitting fees and reduce stormwater utility fees and can help building owners save on water usage, roof replacement and energy costs.¹ Research also shows correlations between verdant streets and higher property values.²

In some cities, use of green infrastructure directly reduces building operating expenses, as in the approximately 800 municipalities nationwide where stormwater utility fees are based — in whole or in part — on the amount of impervious cover on a given parcel. Some of these municipalities offer developed sites a chance to reduce their stormwater utility fees for property owners who can demonstrate replacement of paved surface on their parcel with permeable surfaces or incorporation of features that capture runoff onsite from impervious surfaces.

For example, the Philadelphia Water Department (PWD) is phasing in a new stormwater utility fee system that offers owners a near-100-percent discount on their stormwater utility bills if owners can manage the first inch of stormwater that would fall over their entire property.

Paseo Verde, Philadelphia, view from 9th and Berks Street looking north toward SEPTA’s Temple University station entrance. The hinge tower at this pivotal corner provides a marked point of reference for pedestrians and rail passengers alike, making the place where the community will come together.

The Environmental Protection Agency’s enforcement of the Clean Water Act as it applies to cities is a pivotal driver in the demand for more “green” and less “gray.” Simply put, green solutions can help cities comply with the act at a lower cost than the traditional gray approach, as well as cities also adopting plans to encourage installation of green infrastructure on private property.

For example, Philadelphia’s conversion to parcel-based billing is a complement to Philadelphia’s “Green City, Clean Waters” plan, as it aligns the incentives of commercial property owners with the city’s regulatory obligation to reduce annual sewage overflows by 8.5 billion gallons over the next 25 years, at a cost of $2.4 billion — the majority of which will be invested in green infrastructure.

Cities set examples

Some cities are developing their own initiatives, motivated by sustainability goals separate from Clean Water Act compliance. For example, Chicago requires all new city buildings to have at a minimum a partial green roof and to achieve silver LEED certification.³ This policy has increased green roof production and helped bring the price of a green roof down from an average installation price of $25 to $15 per square foot.⁴ For private commercial owners, Chicago’s Green Permit Process offers qualifying projects an expedited permit process and possible reduction of the permit fees.⁵ In Washington D.C., a Clean Water Act permit and local regulations require that for all new development and re-development of properties more than 5,000 square feet (465 square meters), developers will need to demonstrate on-site stormwater management for the first 1.2 inches of stormwater over their property. Similar requirements have been adopted in Philadelphia (where new developments and re-development projects are required to manage the first inch of stormwater), most of California and a growing number of other state and local jurisdictions.

Paseo Verde case study

On April 10, 2012, Philadelphia’s Mayor Michael A. Nutter — fresh off an event that day with the head of the U.S. Environmental Protection Agency announcing a federal-local partnership to implement Philadelphia’s “Green City, Clean Waters” program — arrived by subway to break ground on a new transit-oriented development in North Philadelphia called Paseo Verde. Paseo Verde has garnered regional and national attention because it transforms an underutilized lot adjacent to the Temple University Regional Rail station with residential and commercial development to create a walkable and sustainable community and because it is a project that demonstrates best practices for the new stormwater policies recently enacted by the city of Philadelphia. Developed through a partnership between Asociacion Puertoriquenos en Marcha, Inc. (APM), a not-for-profit based in north Philadelphia, and Jonathan Rose Companies, Paseo Verde includes 120 affordable and market-rate apartments, retail development and space for community and health services to be provided by APM and the Public Health Management Corporation. The development is supported by public financing from city, state and federal sources and serves as a noteworthy model for green, transit-oriented development.

The ribbon courtyards spill into the sidewalk to engage pedestrians and create garden-court entrances into the two residential components.

Among the most prominent green features at Paseo Verde are those directly addressing stormwater management. The project includes blue and green roofs, ground-level permeable planted areas and below-grade infiltration beds to maximize on-site stormwater absorption. These elements work in concert such that the four inches of water retained on the uppermost 34,995 sq. ft. (3,251 sq m) blue roofs, as well as the water retained in the 15,659 sq. ft. (1,455 sq m) green roofs covering the parking podium, are slowly released into the subsurface infiltration beds. The podium-level green roofs are designed as not only a stormwater management element but also as an important amenity contributing to the quality of life for both the residential and commercial tenants. The lushly planted gardens at the ground level mark the entrances to Paseo Verde and market the project as a green development.

The development team worked closely with the PWD in the design and approvals for the integrated stormwater system. Paseo Verde will benefit from a near-zero monthly stormwater utility fee based on the design having the capacity to manage on site the first inch of stormwater runoff. During the design phase, the PWD worked with the design and engineering team to give credit for the various elements of the stormwater system, however, once approved, the design essentially became “fixed.” Given the integration of the stormwater management system into the overall building design, the stormwater elements had to be carefully designed because any construction period changes in response to unforeseen conditions would need to be reapproved by the PWD.

At the north end of the site, the building’s scale steps down into recognition of the more finely scaled fabric of the neighborhood’s row houses. Green infrastructure is a key design element.

As a result of the green infrastructure elements, Paseo Verde will save approximately $6,600 annually in stormwater management fees. More importantly, because of its prominent location immediately adjacent to the Temple University train station, as well as its striking design, Paseo Verde will serve as a public-facing example of the innovative stormwater management techniques Philadelphia is promoting for the next generation of green development.

The greatest impact for green infrastructure will be achieved through a combination of direct improvements of public infrastructure systems, including the design of streets, sidewalks and other public spaces and creating incentives for developers and building owners to implement green improvements at the building level. In the case of Paseo Verde in Philadelphia, this can take the form of regulations, as well as collaboration between public agencies like PGW and the private development team.

Green infrastructure is an increasingly important factor in developer decision making, as it can help developers stay resilient and competitive. Green infrastructure can help create vibrant, thriving additions to our communities and cities while balancing environmental integrity, economic vitality and social equity. These are foundations upon which developers can benefit economically while building a better quality of life for their tenants and residents.

Sources

¹Assessing low Impact Development using a cost-Benefit approach, econorthwest presentation by ed macmullan at 2nd national low Impact Development conference (2011). Accessed at http://www.econw.com/our-work/presentations/assessing-low-impact-development-using-a-benefit-cost-approach. ²Id at 15. ³rooftops to rivers II, chicago case study at p.3. natural resources Defense council (2011). Accessed at http://www.nrdc.org/water/pollution/rooftopsii/
files/rooftopstorivers_chicago.pdf. ⁴Hawkins, K. (november 13, 2009). “chicago Green roofs: seven million square feet and Growing,” accessed at http://hpigreen.com/2009/11/13/chicago-green-roofs-seven-million-square-feet-and-growing/. ⁵city of chicago, overview of Green Permit Program, accessed at http://www.cityofchicago.org/content/city/en/depts/bldgs/
supp_info/overview_of_the_greenpermitprogram.html.