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Sunday, July 12, 2026

Axioms and Economic Fundamentals of City Design

 

I’d like to begin with what I believe are a few axioms of city design.

1)      A building produces revenue per square foot. The amount
produced is a function of building area, condition, and occupant activity.

2)      The total revenue from all building occupant activity, divided by the gross building area in sq. ft., equals the average revenue produced per sq. ft.

3)      The total revenue from all building occupant activity divided by the buildable acres occupied equals the revenue produced per acre.

4)      Gross building area divided by the buildable acres occupied equals gross building area per buildable acre, or shelter capacity.*

5)      Shelter capacity times total average revenue per sq. ft. equals revenue per acre occupied.

6)      Shelter capacity times total average revenue planned per building sq. ft. determines the revenue per acre anticipated.

7)      The shelter capacity, activity, and condition distributed on acres throughout a city determines its economic stability. (These acres can easily be squandered for underperforming shelter capacity and activity when these relationships are not part of a city’s planning information and shelter capacity evaluation system.)

8)      The sum of all annual revenue produced in a city divided by its total taxable acres must equal or exceed a city’s total annual expense divided by its taxable acres.

9)      A city that does not know the revenue potential per building sq. ft. of various land use activities cannot calculate the economic implications of shelter capacity, intensity, and activity options. (This means it is inadequately prepared to plan and adjust for the distribution of shelter capacity and activity needed to produce annual revenue equal to or exceeding its annual expense per acre.)

10) The distribution of shelter capacity, intensity, activity, and condition throughout a city determines its physical context, economic stability, and social, psychological, and environmental quality of life.

NARRATIVE

From my experience, a land use plan does not consciously distribute shelter capacity and activity to produce municipal revenue per taxable acre equal to a city’s total annual expense per taxable acre. Economic growth depends on the decisions of private investment, annexation, and sprawling consumption of agriculture and the natural domain. It is a random approach to economic stability with an unending appetite.

AN ALTERNATIVE

Axiom 8: The sum of all annual revenue produced in a city divided by its taxable acres must equal or exceed a city’s total annual expense divided by its taxable acres.

Existing economic performance can be calculated at the parcel level when its shelter capacity is measured and multiplied by its occupant revenue per sq. ft. When the result is divided by the acres occupied, the result is the revenue per acre produced by the address involved. The sum of all taxable parcel calculations divided by the total taxable acres involved yields the revenue productivity of a city’s taxable land per acre. This productivity can then be compared with a city’s total average annual expense per acre to monitor and plan for its future with informed economic development planning.

Planned economic performance can be calculated at the parcel level when a shelter capacity objective for the parcel is multiplied by the anticipated occupant revenue per sq. ft. When the result is divided by the acres occupied, the result is the planned revenue per acre that can be compared with a city’s total annual expense per acre.

The comparison between city expense and revenue per taxable acre is a bottom line comparison that I don’t believe cities are prepared to compute or monitor. They lack the relational databases, activity revenue information, and shelter capacity evaluation science required to adequately plan for the balanced distribution of shelter capacity and activity needed. This will continue as long as a land use plan remains a map and a zoning ordinance is used to arbitrarily dictate the form that emerges without considering its economic implications. The resulting budget deficiencies and fear of becoming “land-locked” have prompted continuing annexation and sprawl seeking to produce new revenue from new land. It often proves inadequate because the action is not mathematically correlated with the capacity, activity, intensity, and context results that determine the economic implications of the leadership decisions involved.

FURTHER INFORMATION

Further information can be found among the 285 essays on my blog at www.wmhosack.blogspot.com.

These essays have contributed to my book, “The Equations of Urban Design” that can be found using the following url:

https://www.amazon.com/-/e/B001IR3ODO?ref_=pe_584750_33951330

The essay, “The Least a Smart City Should Know”, may be of particular interest and can be found using the following url:

              https://wmhosack.blogspot.com/2018/02/the-least-smart-city-should-know.html

Walter M. Hosack, July 2026

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*Shelter capacity options for any given parcel can be predicted with the templates of Shelter Capacity Evaluation, or Tegimenics. Existing shelter capacity can also be measured using the same template parameters to determine a parcel’s current shelter capacity, intensity, context, and revenue contributions to a city’s target objective per acre.

Walter M Hosack, July 2026

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