Seismic Upgrade, Moral Hazard and Gentrification

While there has not been a recent major earthquake in the Pacific Northwest, research has proven that the area is seismically active. Building codes were established to withstand earthquake damage and new buildings have been held to this higher standard. However, there is a substantial portion of the commercial and residential buildings which have not been retrofitted to date. This cool interactive map shows earthquake risk in Portland based on the age of construction… and the pervasive color “red” is bad.

While wood frame houses may fare reasonably well in an earthquake, the highest risk buildings are large structures made of brick. The term for these sorts of buildings in Portland is “unreinforced masonry” or URM for short. They are the buildings that give Portland all of its “character” like classic old apartment buildings and multi-use commercial and residential structures. Many schools, churches and community centers also fit in this classification. This article estimates that it would cost $4.6B to retrofit the remaining URM buildings in Portland. They also note that at the current rate of upgrades, it would take 100 years to complete the effort.

I read a different local article and an engineer put it most pithily

The value of an URM building is zero

I do see some building owners “biting the bullet” and doing a seismic upgrade. When I look out the window of my building I can see many of the older buildings that gabapentinoral have been upgraded in this manner, and many that have not. Here is a construction notification for a nearby 5 story masonry building that is being retrofitted.

There are two threads here that are most interesting to me:

1. How do owners of apartment buildings, where residents will most certainly be at higher risk of death during an earthquake, sleep at night? They talk about the costs of retrofitting as if it is an abstract event; but not doing so creates an economic externality of human misery that apparently they value very little if at all

2. Any mandate the city or region employs on URM will almost certainly drive gentrification because owners will have to invest in higher cost apartments and in turn raise rents; ironically, the city’s mandates on re-use and burden of oversight rules will make the future rent increases even more burdensome

The likeliest solution is some sort of “muddling along” in the near term. For valuable commercial and high rise residential locations, the inevitable commercial upgrades will drive the URM upgrades. For apartment buildings, the future is much dimmer, because if you are a landlord owning an URM building, you can’t raise and invest the money if your local competitors are just going to “accept” the URM risk (on behalf of their residents, ironically). In fact, it makes no sense at all to invest anything more than the cosmetic minimum in these URM buildings, which will move them down the road of being slums at some point in the future.

Cross posted at LITGM

“London is above all a metropolis of merchandise.”

London has never been planned. Beside other eighteenth-century capitals, London is remarkable for the freedom with which it developed. It is the city raised by private, not by public, wealth; the least authoritarian city in Europe. Whatever attempts have been made to overrule the individual in the public interest, they have failed. Elizabeth and her Stuart successors tried bluntly to stop any expansion whatever. They failed. Charles II and his pet intellectuals tried to impose a plan after the Great Fire. They failed. Nearly every monarch in turn projected a great Royal Palace to dominate at least part of his capital. All failed until George IV conspired with Nash to cheat Parliament into rebuilding Buckingham House, scoring no triumph in the process. The reasons for all this are embedded deep in England’s social and political history. London is one of the few capitals where church property and church interests have not been an overriding factor; where Royal prestige and prerogative in building matters have been set at naught; where defense has never, since the Middle Ages, dictated a permanent circumvallation to control the limits of development. London is above all a metropolis of merchandise. The basis of its building history is the trade cycle rather than the changing ambitions and policies of rulers and administrators. The land speculator and the adventuring builder have contributed more to the character of the Georgian city than the minister with a flair for artistic propaganda, or the monarch with a mission for dynastic assertion.

From Georgian London, by John Summerson

In the introduction Summerson engages in some classic English understatement: “This book originated in a series of of lectures prepared for the Courtauld Institute in 1939, but not delivered owing to the turn of events.” He then mentions that he was unable to finish the book during the war: “The whole period has, of course, been somewhat unpropitious for a book of this sort. The subject matter has been bombed from time to time and any papers, plans and drawings of whose existence I was aware have been totally inaccessible.”

On the 606 Trail

The “606” trail in Chicago opened recently. It follows an abandoned railroad track that starts in Bucktown / Wicker Park and heads west from there. I am very familiar with this track since I used to live in Bucktown a decade ago and stared at the crumbling bridges that split the neighborhood.

The trail is named after “606” which is the first 3 digits of the zip code in these neighborhoods. I guess that is an OK name but it’s kind of an obscure reference. Does anyone even send mail anymore? The park is sometimes compared against the High Line trail in NYC but the High Line is way cooler since it moves through a heavily urban area. But the 606 is a massive upgrade from just a crumbling set of train tracks.

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Nature and Nurture.

I have long been a fan of Steven Pinker’s books.

I have read many of them, beginning probably with his books on speech as he is a linguist first. This was probably the first as I was intrigued by his theories about irregular verbs and how children learn language.

He points out, for example, how normal construction in archaic forms such as “Wend, went and wended” have become “Go, went, gone.”

The child makes an error he or she may not understand that “Goed” is not a used form for past tense, whereas “Wend” is an archaic form whose past tense has been substituted. The child is using language rules but they don’t account for irregular verbs. He continues with this thought in The Language Instinct, which came later. Here he makes explicit that this is how the mind works. One review on Amazon makes the point:

For the educated layperson, this book is the most fascinating and engaging introduction to linguistics I have come across. I know some college students who had received xeroxed handouts of one chapter from this book, and these were students who were just bored of reading handouts week after week… but after reading just a few paragraphs from The Language Instinct, they were hooked, fascinated, and really wanted to read the whole book (and did). I wish I had come across such a book years ago…

Now, this is interesting but Pinker has gotten into politics inadvertently by emphasizing the role of genetics in language and behavior. I read The Blank Slate when it came out ten years ago and loved it.

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