"New urbanism" isn't just a buzzword in two Best Southwest cities. It's becoming a reality.

DeSoto is in the final stages of building its $27 million Town Center, while the Duncanville City Council will consider a final vote on a $4.8 million condominium project early next month.

Both are private/public partnerships that promote the new urbanism philosophy of living and working in pedestrian-friendly communities with housing, shops and offices. They also involve public funds that prompted at least one Duncanville council member to question whether his city can recoup the taxpayers' investment as the economy staggers.

Duncanville's Center Street project is part of the city's revitalization of Main Street. The development will be on 1.8 acres bounded by North Merrill Avenue and East Center and East Cherry streets. Options Real Estate and its owner, Monte Anderson, will build 31 condos in phases of about five at a time. The City Council is scheduled to vote Dec. 2.

The project has been in the works since December 2005, when the city purchased the land for $350,000.

Mr. Anderson, who also developed the nearby mixed-use Main Station, was the plan's initial developer, but he dropped out because his firm was working on other projects. Other firms showed some interest, including Signate Custom Group earlier this year, but it backed out because of market conditions. Now Mr. Anderson's firm is back on.

Duncanville expects to spend about $900,000 on the project, including the $350,000 it paid for the land and another $350,000 it will loan to the developer.

The city also received a $564,000 grant from the North Central Texas Council of Governments to improve the area's streets and sidewalks for a more pedestrian-friendly environment. The council's Regional Transportation Council offered the grant to cities for projects that promote transit-oriented development, historic downtowns and preservation of land for future sustainable projects.

The Center Street project is within walking distance of the Burlington Northern-Santa Fe rail line, which eventually could become a commuter rail line. While there are no immediate plans to convert the line, City Manager Kent Cagle said that day is coming.

"It's one of those things where it's a matter of not if, but when," Mr. Cagle said.

The city will receive a percentage of the sale of each condo until the developer pays back the $350,000 loan.

Mr. Cagle said the project would provide an infusion to the tax rolls, bringing in about $32,000 per year. But council member Paul Ford has been a vocal critic of the project, questioning whether the condos – valued at between $125,000 and $190,000 – will sell in this climate.

"If they don't get those prices, no profit, no profit at all, nothing to give back to the city. It just isn't realistic," Mr. Ford said. "To take our public money and to put money in something this speculative is a mistake."

But Mr. Anderson said there will be demand for his condos.

"There's enough baby boomers that want to downsize," Mr. Anderson said. "People in this economy are moving back closer to goods and services. We think these new urbanism developments will outperform the conventional market."

In DeSoto, the $27 million Town Center development is nearing its scheduled summer 2009 completion. The 15-acre, four-building complex will create a downtown atmosphere near City Hall.

The urban village will blend offices, retail, housing and civic venues at the intersection of Pleasant Run and Hampton roads. City Manager Jim Baugh said he hopes Town Center will attract more development in the region. He said he expects the complex to generate a boost in property tax revenue and, as more people move into the area, more sales tax revenues.

Art Lomenick, managing director of Trammell Crow's High Street Residential division, which is managing the project, said DeSoto's Town Center is at the forefront of what's to come.

"This will become an option for more households because of the ability to limit some of your driving trips and have a more interactive, social quality of life that is growing exponentially," he said.