Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 77

Most of us have heard of the so-called "Blue Zones." These are the parts of the world where there is an exceptionally high number of centenarians — people over the age of 100. We've talked about this topic before, covering the importance of things like diet, community, and constant moderate physical activity. But I would like to reiterate just how impactful our physical environments can be on our overall well-being.

The island of Sardinia is one of the world's Blue Zones. But it's not actually the entire island of Sardinia; it's a specific inner mountain region that is the Blue Zone. And in this region, at least two things are fascinating: First, the men have some of the longest average life expectancies in the world and second, the men live just as long as the women do. This is unique. Ordinarily, women outlive men. But not here.

The data overwhelmingly suggests that this outcome is the result of topography and employment. Because it is a mountainous region, the built environment is filled with steep inclines and staircases everywhere you go. The result is that even walking down the street to go to church or the grocery store results in organic moderate physical activity.

At the same time, the men in this region have historically worked as shepherds. This meant that work also involved walking up and down hills all day. Again, more organic moderate physical activity. Because of this, research has found very significant correlations between longevity and pastoralism, the average slope of the territory, and the average daily distance required to reach work. The steeper the better.

There's little mystery here. We know that more activity is better for us than less. The challenge is that we can't all live in bucolic mountain towns and chase sheep around all day. Modern society demands a lot of sitting and typing and vibe coding. We also have a market economy that is constantly looking for ways to make our lives more convenient so that we're able to do even more sitting around.

We try to compensate for this with gyms and other fixes (“ Urban Cycles ” cover image by Marcellus Hall):

But the better and more fundamental solution is organic moderate physical activity. Meaning, moderate physical activity that we don't have to actively seek out, and that is organically embedded throughout our everyday lives. It's best when it's a lifestyle. And this is one of the reasons why I view cities where walking and cycling are ingrained as a great luxury. All else being equal, these places are destined for better health outcomes.

If I look up my Apple Health data for 2025, there are very clear spikes in steps whenever I'm traveling. This makes sense. It's because I like going to places where I can walk around all day and be physically active. I can only sit on a beach for so long. But it's also ironic that modern life dictates that I have to go on vacation in order to be more active. That's not how Blue Zones work.

There is no greater luxury than our health. Without it, nothing else matters. And so I think it behooves us to make it a fundamental component of city building.

Cover photo by Valentina Uribe Posada on Unsplash

We completed and started renting Parkview Mountain House in Park City, Utah about a year ago. Construction took slightly longer than we had initially scheduled, but we finished construction under budget, which is always a good thing. Getting our building permits was easier than expected (thank you, Summit County) and closing them out involved as much back and forth as you would expect for a challenging mountain site. I would happily build another project in Park City.

Some of our greatest challenges happened on the legal and financing side. When we acquired the site, we formed a single-purpose Limited Partnership in Utah that was initially owned by one of Globizen's Canadian corporations, and later with two other partners (another Canadian corporation and a New York LLC).

Limited Liability Companies (LLCs) are very common in the US. They offer a kind of hybrid "sweet spot." They offer the limited liability that comes with corporations, but with the option of having the pass-through taxation you get with Limited Partnerships. However, they don't exist in Canada, and so the legal and tax advice we got was to instead form a Limited Partnership. I'll come back to this later.

The first challenge we had was the seemingly simple task of opening up a bank account for the project LP. Wells Fargo, Chase, and others would not accept a Utah LP owned by a Canadian corporation. Too foreign. Too complicated. We finally managed to get one opened with US Bank, and they've been great, but being Canadian still poses challenges. For example, I can't use their mobile app in Canada. And I can't deposit cheques/checks online without first verifying my mobile number. But I can't verify my mobile number because their system won't send codes to Canadian numbers.

The next hurdle was construction financing. It was frustrating to learn about all of the simple and cost-effective "one-close solutions" available to US entities, but not available to foreign nationals. We could have gotten a great rate, and a construction loan that automatically converts to a permanent facility at substantial completion. Instead, we had to finance construction through a combination of equity, lines of credit, and a private loan. Not ideal, but at least the draws were flexible and easy.

Then came our take-out loan at completion. This proved to be impossible with our legal structure and foreignness. So much so that we ended up having to convert our Utah Limited Partnership to a Limited Liability Company, and become "members" of the LLC personally. This is a clean, common, and widely accepted structure for real estate ownership in the US. But in order to do this, we had to have KPMG advise us on how we could do this without triggering a massive tax liability. We were able to figure that out and close the facility. But our year-end tax filings are going to be a little more complicated this year.

In the end, we overcame the obstacles. But it was certainly challenging, more so than the actual building part I'd say. Every time I mentioned that I was Canadian, I came to expect a pause, where the other person would then need to start processing what to do next. As international as the US is, it feels paradoxically insular when it comes to the things I described in this post. But this is how you gain experience. Now we'll be slightly better prepared for our next US project, whatever that might be.

Note: Nothing in this post should be viewed as legal or financial advice. I'm just sharing our experiences.

So, here's what's happening in the Pacific Palisades right now:

A pro-development organization has sued Gov. Gavin Newsom over an executive order blocking duplexes in Los Angeles neighborhoods stricken by January’s wildfires.

Newsom issued his order in July in response to lobbying from property owners in the Pacific Palisades, the coastal L.A. community that was largely destroyed in the blazes. Palisades residents argued that allowing duplexes and spitting [sic] lots into two parcels would undermine the neighborhood’s character and worsen evacuation efforts in the event of future disasters. Following the governor’s order, all the jurisdictions affected — the cities of Los Angeles, Malibu and Pasadena and L.A. County — banned SB 9 rebuilds in high-risk fire areas. The suit includes each local government as a defendant as well.

This is interesting.

On the one hand, there is, of course, a logic to not allowing too much density and too many close-together houses in an area prone to wildfires and where there are only so many roads leaving the community. But on the other hand, it's not clear that this is really what it's all about.

The counterargument, from groups like the one suing, is that this is actually about perpetuating exclusivity, and perhaps even about "cleansing" the neighborhood of households who don't have the means to rebuild in a way that suits the "character" of the place. Duplexes = rental homes. And smaller lots = less expensive houses.

So, which is it?

My view is that this should be looked at from an overall population standpoint, and not from a housing type standpoint. According to 2023 census data for zip code 90272, the Pacific Palisades had a population of approximately 21,438 residents . This is a decline of just over 10% over the last 23 years. (Source: U.S. Census Bureau Decennial Census 2000 & ACS 2023)

On top of this, the number of households has also declined from ~9,319 in 2000 to 8,282 in 2023 . So by all accounts, the area is shrinking and becoming less dense. There are fewer residents and fewer occupied homes. This is a directionally good thing if your primary concern is evacuation congestion and the safety of residents.

But then, what's the concern with duplexes and smaller lots? Is the concern that the area might regain its previous population and household count? Is the objective to continue shrinking and reach some more optimal set of numbers? Should there only be 15,000 residents, or maybe even 10,000?

Because if that's the case, then I think a more effective policy would be: "This neighborhood can only support X number of residents and Y number of households, because otherwise people can't evacuate quickly enough in the case of emergency. Once we reach these limits, we will stop processing building permits for all housing types."

When a policy only restricts specific housing types, as opposed to more directly addressing a stated problem, it suggests to me that the stated problem is not actually the primary concern.

Cover photo by Beau Horyza on Unsplash