Mixed-use development as a neighborhood revitalization strategy : obstacles and approaches to financing

Abstract

The focus of this research paper is to identify and explore the obstacles to financing neighborhood mixed-use development. This model of development has proven to be an important neighborhood revitalization strategy for many inner-city neighborhoods. However, the difficulties in financing mixed-use projects limit the opportunity for replication in other communities. The case studies presented in this paper highlight the types of challenges that face developers in assembling financing for mixed-use projects. They also provide some insight into various strategies to overcome these obstacles to financing. The thesis concludes that the mechanisms for providing public resources to neighborhood mixed-use development are inefficient and add to the costs of a project; private lending institutions currently play only an inadequate and limited role in financing these projects; and the strength of the commercial component is critical to the success of a mixed-use project.