Including a Community Park in a Development

[Don Petrash]

Hi BP,

This started when I bought my second single-family this summer. I'm investing from a distance, but I have a great real estate agent and fantastic property manager who both recommended the property. I asked lots of questions, got lots of pictures, and ended up being very satisfied with the purchase. The house abuts a 4-acre lot which has been vacant while the neighborhood grew up around it. I became interested in the lot, found the sellers, and discovered they are looking to sell in the next 6 months. Property values in this neighborhood have recently peaked, and the owners are expecting a big payday when they sell the lot, which will almost certainly become (more) single-family housing.

But the neighborhood needs more than just more houses -- it is greatly in need of park space. I have a passion for community development, and I would like to see this neighborhood gain a feature which will maintain the community's value, even as the early 80's homes enter a period of gradual decay. So I am putting together a plan which combines a row of townhomes and a large, well-maintained greenspace, and attempting to raise the money to first purchase the land, and then hire a developer to make this dream a reality.

Is there a way to make a townhome/parkspace combination more profitable than single family homes? Are there tax benefits or fundraising opportunities for privately-financed public greenspace? I'm searching for ways to increase the ROI for potential investors, while also doing what is best for the community. All ideas welcome!