Placemaking 04 : Economic Considerations in Placemaking: Budget, Funding, and Local Impact

People and Places Designing for Community & Commerce

This is the final blog in our four-part series on placemaking, where <rt-red>we focus on the economic aspects of placemaking, including budgeting, funding, and the long-term impact on local economies.<rt-red>

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While placemaking is often praised for its cultural and social contributions, its economic value is equally essential for long-term sustainability. Intentionally designed public spaces can drive property values, boost local businesses, and attract tourism, contributing to the overall economic well-being of a community. However, realising these benefits requires careful planning, sustainable funding, and the ability to preserve cultural and historical legacies in the pursuit of economic growth.

One of the most direct ways in which placemaking impacts the economy is through enhanced walkability. Cities and neighborhoods designed to be more pedestrian-friendly generate more foot traffic, directly supporting local businesses. Well-designed public spaces also become tourist destinations, creating new commercial opportunities.

For instance, our redevelopment of Lakshmi Mills in Coimbatore exemplifies how adaptive reuse can turn an underutilized industrial site into a thriving commercial hub. By preserving the mill's historic character and adding new commercial and recreational spaces, the redevelopment has attracted 2,500 to 10,000 visitors daily, driving a 15-20% rise in local business sales.

Balancing Preservation with Economic Growth

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An ongoing challenge in placemaking is finding the right balance between preservation and economic development. This is particularly evident in neighborhoods like New York’s Greenwich Village, where Jane Jacobs famously fought to protect the area’s unique character. While her preservation efforts successfully shielded the neighborhood from large-scale urban renewal projects, they also limited housing expansion, contributing to gentrification. It had the unintended effect of making the area one of the most exclusive neighborhoods in New York, with skyrocketing property values pushing out long-time residents and local businesses.

This example is a reminder that placemaking projects must be mindful of both preservation and economic inclusivity. Restrictive zoning can lead to scarcity, higher prices, and social inequity.

To counter this, flexible zoning laws that allow denser housing and affordable commercial spaces can prevent economic growth from concentrating wealth in the hands of a few, ensuring the benefits reach the broader community.

Studio Lotus: A Focus on Economic Revitalization

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At Studio Lotus, we recognize the critical balance between safeguarding cultural heritage and ensuring economic sustainability. The Trees Development in Mumbai is a notable example of this philosophy, where historic industrial structures were integrated into a modern mixed-use development that fosters both economic activity and community engagement.

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The Trees is an evolving mixed-use precinct where historic structures coexist with contemporary public spaces. Studio Lotus was commissioned to design four public spaces to become vibrant inserts that blend site's industrial legacy, community, and innovation, through Adaptive Reuse and new programmes.

Anchored by Imagine Studio, which initially served as a marketing pavilion and now functions as a gathering space for community events, exhibitions, and social activities, the site has established itself as a cultural and economic catalyst.

The other three elements–The Club at The Trees, Beer Garden and Sculpture Park–add layers of community engagement and provide both public and private recreational amenities. Each component in the master plan is designed to remain adaptable over time, ensuring that the development remains relevant to the community and local economy as it grows.

Our design interventions at The Trees exemplify how placemaking can drive sustained economic impact, drawing regular foot traffic, supporting businesses, and creating job opportunities. By integrating historic structures with purposeful, contemporary spaces, these interventions foster a sense of identity and belonging for residents and visitors, adding tangible economic value to the real estate development.

Conclusion

The economic impact of placemaking extends beyond the aesthetic and cultural improvements it brings to cities. Boosting walkability and attracting tourism supports local businesses. Well-designed public spaces can transform underutilized areas into thriving economic centers. However, as seen in Greenwich Village, balancing preservation with the realities of economic development is critical.

As we conclude this series, it's essential to recognize the lasting contributions of figures like Jane Jacobs and William H. Whyte, whose advocacy for vibrant, people-centred urban environments continues to shape the way we approach city planning today. The plaque installed at her former residence in Greenwich Village serves as a reminder of the importance of creating cities that work for everyone—places that celebrate their history while embracing the economic opportunities of the future.

Placemaking 04 : Economic Considerations in Placemaking: Budget, Funding, and Local Impact

Attached Projects

Beer Garden

Imagine Studio At The Trees

The Club At The Trees