Planning Commissioners Journal

Rebecca Cohen & Keith Wardrip talk about their article: "The Economic & Fiscal Benefits of Affordable Housing"

Note from Planning Commissioners Journal Editor Wayne Senville:

Our Summer issue features an article by Rebecca Cohen and Keith Wardrip, analysts at the Center for Housing Policy in Washington, D.C. Titled, “The Economic & Fiscal Benefits of Affordable Housing,” Cohen and Wardrip report on why affordable housing is not the economic bane that many think it is.

As we usually do before we publish articles in the PCJ, we make a draft available for review. We announce this both here on our PlannersWeb site and on our Linkedin group page.   

We received quite a few comments about Cohen and Wardrip’s article, some of which (given space limitations) are only briefly addressed in the article. I asked the authors if they’d take the time to respond to several of the comments that came in.

After you've their remarks, continue the discussion on our Linkedin group page (scroll down under the Discussions tab till you see the title of this post).

note: if you're a Planning Commissioners Journal subscriber, feel free to also download a complimentary pdf of Cohen & Wardrip's article from our Summer issue right now. Not a subscriber, their article can be downloaded for a small fee.

 

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Dealing With the Fear of Affordable Housing

PCJ Editor Wayne Senville:

In one of the comments that came in, one person noted that: “Over the years, in my experience, most problems have arisen not with the affordable housing tools available to jurisdictions, but with the public living in proximity to proposed developments, especially larger-scale ones.” The commenter then went on to highlight the value of holding public meetings near the location of a proposed development, adding that “one of the problems people have with affordable housing projects is that jurisdictions often do a very poor job of public relations with regard to the potential or perceived impacts on neighboring residents. So, it’s very important for the developer and community leaders to do all that they can do to get the local folks on board and calm whatever fears they may have.”

While I know that your article primarily focuses on the economic and fiscal impacts of affordable housing, I’d be curious if you have any thoughts about this comment? Are there ways of combating the fear of affordable housing that too often seems to be present?

Rebecca Cohen & Keith Wardrip:

We completely agree that developers and community leaders should communicate plans for affordable housing -- and, indeed, for any major development -- with neighbors and constituents, ideally starting outreach early in the development process to address concerns and get key stakeholders on board with the proposal.

Community meetings are good opportunities for leaders to educate the public on not only detailed plans for the specific project but also the need for more affordable housing. Neighbors may object to the high-density high-rise complexes that used to typify subsidized housing (who doesn’t?), but fears can be assuaged by explaining that today’s projects are much smaller-scale, well-managed, and designed to blend-in with the community.

We also think it’s important to remind concerned neighbors that many of the people in their community cannot afford market-rate housing. The Center for Housing Policy’s Paycheck to Paycheck suite of materials compares the cost of owning or renting a home in 210 metropolitan areas with the typical salary of a local employee in more than 70 occupations. Paycheck demonstrates the all-too-common disconnect between full-time employment and housing costs, for both owners and renters, for professions that don’t typically come to mind when we think of affordable housing, including school teachers, nurses, and social workers.

Finally, we think that community leaders can make the “equity” argument when discussing affordable housing with constituents. The Center has produced a wealth of resources highlighting the ways in which affordable housing can impact not only a local economy but health and educational outcomes, as well. Other researchers have demonstrated that children who have the opportunity to grow up in stable, high-quality housing, and attend schools with higher-income peers, tend to fare better over time.

Given the positive societal impacts of affordable housing and the inability of working families and older adults to make ends meet in many communities, providing assistance in the form of well-designed, well-maintained housing is the responsibility of an equitable society.

Design & Location Considerations

Wayne Senville:

Another commenter who reviewed your initial draft noted that “While the case for affordable housing may be positive overall, the potential downsides should be mentioned, if only to help communities avoid them.”

From the experience most planning commissioners have had, we know that pretty much any large development can have negatives impacts. In fact, one of the benefits planning commissioners often bring is helping developers find ways of improving their projects and mitigating negative impacts.

In your article you do mention that studies have found that well-designed projects tend to have positive impacts on the value of neighboring properties. From your experience at the Center for Housing Policy, are there any ways of helping ensure that the proposed affordable housing developments are, in fact, well-designed? And are there any other potential downsides for communities to take into account or avoid?

The Economic & Fiscal Benefits of Affordable Housing

A closer look at how well-designed affordable housing programs can generate economic and fiscal benefits to local communities. by Rebecca Cohen and Keith Wardrip; from PCJ #83 (Summer 2011); 4 pages -- you can also read Cohen and Wardrip's replies to several questions about their article. Read excerpts below; to order & download the full article use Shopping Cart button at bottom of this post. The download also includes a three-page "Worforce Housing Miscellany" prepared by the PCJ Staff, Jon Cecil, and Trisha Riggs (focusing on local efforts to provide workforce housing) -- if you are a Planning Commissioners Journal subscriber (or receive the Journal through your planning commission/board), you can download the Cohen & Wardrip article plus the Workforce Housing Miscellany at no charge.

Read start of article:   When communities take a moment to consider their most important assets, the candidates that are often mentioned include high-quality schools, access to parks and open space, a strong job base, a vibrant arts scene, and even a winning sports franchise. How often have you heard an ample supply of affordable housing mentioned as an asset? Instead, conversations about affordable housing usually focus on the cost to taxpayers and rarely take into account the fiscal and economic benefits that accrue when communities encourage the development of affordable homes. As cities and counties across the country try to bring their revenues and expenditures in-line and prioritize how to spend scarce resources, policymakers and planners should understand the benefits of well-designed affordable housing programs. Such programs are important now more than ever, as research demonstrates that housing affordability has worsened significantly in recent years. While the provision of affordable housing involves important social and civic values, our focus in this article is aimed at "clearing the air" about affordable housing's economic and fiscal impacts and highlighting some local strategies for addressing the challenge of providing housing for all. Sidebar, Affordable Housing versus Workforce Housing. Part I: The Economic & Fiscal Benefits of Affordable Housing 1. One-Time and Ongoing Job Creation and Spending: It stands to reason that building or rehabilitating affordable housing creates jobs in the construction field. Research by the National Association of Home Builders (NAHB) estimates that building 100 affordable housing units for families through the Low-Income Housing Tax Credit program can lead to the creation of more than 120 jobs, on average, during a project's construction phase. Even more importantly, long after the homes are occupied, the ripple effect from residents of these new units can support as many as 30 new jobs in a wide array of industries, including retail, healthcare, and local government. These employment effects are on-par with building comparable market-rate units. 2. Positive Fiscal Impacts for State and Local Governments: When affordable homes are built or rehabbed, the funds flowing to cities and states can be considerable. Revenues can take the form of fees for permitting, zoning, and utilities, or they can reflect sales, income, or property taxes generated by construction-related economic activity. The NAHB estimates that 100 units of affordable housing for families generates the same amount of one-time revenue for jurisdictions as does a comparable market-rate property -- roughly $827,000, on average -- with more than half coming from permit/impact fees and utility user fees. Additionally, research findings summarized in a report by the Center for Housing Policy (CHP) show that the impact of a new affordable housing development on nearby property values is more likely to be neutral or positive than negative. As the CHP report notes, the quality of the properties' design, management, and maintenance are important factors. Moreover, when affordable housing replaces a vacant lot or a dilapidated building, local governments will benefit from increased property tax revenues. Sidebar, Impact of Affordable Housing on Nearby Property Values. One persistent concern raised about affordable housing development is that it will flood local schools with children, increasing the demand for school facilities and educational services. Putting aside the need for our society to provide a solid education to all children, do lower-income households actually have significantly more children than upper-income ones? The answer is no. Today there is only a small difference in the average number of children per household when comparing income levels. The much more important trend, and one that carries across all income levels, is the dramatic reduction in the average number of children per household. ... article continues with sections on: 3. Reducing Foreclosure Risks and Associated Costs 4. Improving Worker and Employer Attraction and Retention 5. Increasing the Buying Power of Residents and Part II: Low- or No-Cost Strategies for Increasing the Availability of Affordable Homes 1. Expand Development Opportunities 2. Reduce Red Tape 3. Capitalize on Market Activity 4. Generate Capital 5. Preserve and Recycle Resources

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The End of the Strip?

Why the era of strip commercial development may be nearing an end. by Edward McMahon; from PCJ #82 (Spring 2011); 4 pages Read excerpts below; to order & download the full article use Shopping Cart button at bottom of this post. For more on dealing with commercial strips, see Ross Moldoff's Controlling Strip Development.

Read excerpt from start of article: Two Best Buy stores. The old paradigm: single use, only accessible by car. The new paradigm: mixed uses also accessible by transit or on foot. For more than 50 years retailers have favored the commercial strip: a linear pattern of retail businesses strung along major roadways, characterized by massive parking lots, a plethora of big signs, box-like buildings, and a total dependence on automobiles for access and circulation. For years urban planners and public officials have tried to contain, control, and improve the strip. Now they are getting some help from an unexpected quarter: consumers and the marketplace. Today the era of strip development is coming to an end. Evolving consumer behavior, changing demographics, high priced gasoline, internet shopping, the economy, and other factors are all combining to create a new paradigm for commercial development. Commercial strips are not going to disappear overnight, but it is becoming increasingly clear that strip retail is retail for the last century. The future belongs to town centers, main streets, and mixed-use development. Among the reasons for this transformation: 1. We're Overbuilt on the Strip From 1960 to 2000 there was an almost ten-fold increase in U.S. retail space, from 4 to 38 square feet per person. For many years retail space was growing 5 to 6 times faster than retail sales. Most of this space came in the form of discount superstores on the suburban strip. The recession made clear that we have too much retail. Strip centers are now littered with vacant stores. By some estimates, there is currently over one billion square feet of vacant retail space. Much of this space is going to have to re-purposed or demolished. In fact, one retail analyst estimates that we need to demolish 300 million square feet of retail space. On the other hand, the only places left with more spending power than stores to spend it in are our cities. 2. Retail is Rediscovering the City In 2010, Target announced plans to remodel the century-old Carson Pirie Scott department store in Chicago. This landmark building designed by architect Louis Sullivan will be just one of a number of new, so-called big box retailers planned for urban neighborhoods. Similarly, in late 2010, Wal-Mart announced plans to open its first ever stores in Washington, D.C. To make the four new stores fit an urban environment, the company has agreed to consider an array of layouts, designs, and parking arrangements, a reflection of the chain's willingness to adapt its prototype to enter lucrative urban markets. The D.C. store planned for New Jersey Avenue illustrates Wal-Mart's new approach to store design. The company plans a store of 75,000 to 80,000 square feet (much smaller than usual) on the ground floor of a five story mixed-use building featuring 315 apartments, underground parking, and space for smaller retail stores. Home Depot already has a new urban store in Toronto with 90 units of housing on top. At the same time that Wal-Mart, Target, and other big box stores are planning dozens of new urban stores in cities all over America, as many as 400 former Wal-Mart stores and other big boxes sit vacant on commercial strips across the country. Most analysts agree that cities and urban neighborhoods are the new land of opportunity for retail. ... McMahon's article then continues with sections on: 3. The Suburbs are Being Redesigned 4. Traffic Congestion, Fuel Prices, and Poor Design are Hurting the Strip 5. The Economy is Restructuring the Retail Landscape 6. Consumers Favor Walkability and Places With Character 7. E-Commerce and New Technologies Mean Fewer and Smaller Stores plus: Where Do We Go From Here? -- what can planning commissions do to help reshape the strip; some recommendations culled from leading experts. ... the full article is available to order & download immediately below.

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Cultural Asset Mapping

Lessons learned from a project to map out four towns' cultural resources. by Rob Voigt; from PCJ #81 (Winter 2011); 2 pages Read excerpts below; to order & download the full article use Shopping Cart button at bottom of this post.

In recent years, urban planning, arts and culture, economic development, and city administration have found common ground in a raised awareness of the importance of culture to a community's livability and prosperity. In fact, cultural vitality is increasingly referred to as one of the four pillars of sustainability, along with social equity, economic health, and environmental responsibility. Numerous cities across North America have begun to leverage cultural assets for attracting business, investment, and people. Smaller municipalities often have serious challenges in competing with their larger urban cousins to achieve these kinds of successes. Cultural asset mapping (CAM) is used to understand and interpret the complex interrelationships of cultural elements for use in strategic planning and economic development and is scaleable for use in smaller municipalities. Cultural asset mapping has been defined as: "a process of collecting, recording, analyzing, and synthesizing information in order to describe the cultural resources, networks, links, and patterns of usage of a given community or group." Maps are most often understood as the indispensable tools that help us navigate our physical world. Cultural asset maps, by representing the spatial relationships between such things as artists, markets, fairgrounds, heritage sites, and buildings, help tell us about who we are, based on our unique identity, history, and cherished stories -- in other words, our culture. There are two categories for these maps: (1) resource maps, identifying and recording tangible cultural resources, such as buildings or locations; and, (2) community identity maps, identifying intangible cultural resources, such as the stories and traditions that define community identity. Cultural resource information that is spatially-based allows it to be integrated into municipal projects and land use planning in a number of ways: Awareness and marketing -- promoting culture with residents and tourists. Economic development -- targeting or facilitating entrepreneurial investment in creative cultural industries. Planning and policy -- informing municipal decision-making relating to land use, social planning, heritage planning, urban design, and place making. Networks and collaboration -- facilitating partnerships with cultural groups and identifying opportunities to maximize assets. From an Idea to a Strategy The cultural asset management project that I'll be describing has brought together four communities in a broad-ranging undertaking linking planning, culture, and economic development. ... the article continues with a look at the project Voigt worked on, involving four neighboring Ontario towns, and some lessons learned.

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New Ways to Weigh Economy vs. Environment

A longstanding debate is again heating up over whether we should favor job creation and economic gain over environmental protection and public health. by Dave Stauffer; from PCJ #79 (Summer 2010); 1 page -- see our conversation with Dave Stauffer, one of our new contributing writers. Read excerpts below; to order & download the full article use Shopping Cart button at bottom of this post.

A longstanding debate is again heating up. The debate, that is, over whether a nation, state, or community should favor job creation and economic gain over benefits such as environmental protection and public health. One example, as I write this in May, is raging in California over implementation of a law that would slash the state's greenhouse gas emissions. A proposed ballot petition would delay the law until California's current unemployment rate is cut by more than half. One side's research the law could cost 1.1 million jobs, while the other side's findings say the law would reduce California's overall fuel expenses $3.8 billion by 2020. On the local turf more familiar to planning commissioners, my community is engaged in an increasingly vituperative spat over installation of a gravel pit operation, to be situated across the street from an upscale subdivision. The battle is characterized as jobs and economy versus public health and "quality of life." I would expect that you, along with any seasoned planning commissioner, have had to wrestle with some form of this debate. Take heart: We're increasingly seeing means by which we can escape, or at least minimize, the toxic charges and countercharges common to these tiffs. The first is through advances in quantifying the previously unquantifiable. An early adopter of quantification is the Sierra Business Council (SBC), a California-Nevada regional alliance that compiles what it calls the "Sierra Nevada Wealth Index." The index measures the social, natural, and financial capital -- the so-called triple bottom line -- of SBC's region. The index tabulates 18 mostly familiar measures of financial capital, but it also reports 15 measures of social capital, including funding for the arts and high school seniors' average SAT college-entrance scores, and 20 measures of natural capital, such as acreage of parks and public lands and air particulate matter. ... article continues

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Interview with Brett Sheckler & Brian Murphy about their Planning Comm'rs Journal article

 From Planning Comm'rs Journal Editor Wayne Senville:

Included in the Summer 2010 issue of the Planning Commissioners Journal is a short article with a long title: "Integrating Physical, Economic, & Fiscal Considerations in Community Planning" (for excerpts from the article & to order/download). The authors, Brett Sheckler and Brian Murphy, focus on an important topic that planners and local officials sometimes lose sight of: the importance of linking physical planning to local fiscal strategies and to plans for economic development. 

Just a bit about the authors: Brett Sheckler is an economist with expertise in finance, governance, and strategic planning. He has worked with governments for more than a decade at the local, state, and federal level and recently founded Integrated Economics in Seattle, Washington. Brian Murphy is a senior policy analyst, strategic and business planner, and facilitator at Berk & Associates, also in Seattle. He leads the firm’s Strategic Planning and Facilitation practice, and has managed dozens of community planning, policy, and program development projects.

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Wayne:  What got you both interested in the importance of integrating physical, economic, and fiscal planning? 

Brett:  The ideas we are talking about -- the value of bringing a holistic perspective to planning and governing -- are really born out of need. Recent events have underscored how the standard approaches to planning and governing have fallen short. 

When the recession hit, too many local governments found themselves overextended. Too many governments found themselves deeply dependent on revenues that had been coming from an unprecedented building boom. Too many governments found that, even during an unprecedented construction and consumption bubble, they were still not achieving the economic development they had targeted. And when the bubble burst, all bets were off.

The ideas we are talking about here come from successes we have enjoyed working with jurisdictions, and they are based on hundreds of conversations we have had with city managers, county commissioners, city council members, planners, and other senior staff.

In the end, what we are really talking about is fundamental to governing and planning -- the idea that, to be successful, you have to start with the right foundation. 

Success in policy and planning begins with a shared vision -- a vision that is powerful, a vision that is realistic, and a vision that recognizes what true success really entails. All of the members of the community -- constituents, governmental staff, and governmental decision makers alike -- need to think about what success looks like in a true and holistic way. The community needs to recognize that achieving a rich physical environment is inextricably linked to economic and fiscal strength. And they need to understand that the reverse is true as well.

Brian:  The linkages among a community’s fiscal, economic, and physical realms and the impacts of actions (or non-actions) in one arena have real implications in the others. This is true whether you recognize the connections and take a proactive, analytically-informed and strategic approach, or if you ignore them and make less informed decisions in a silo-like manner. Having seen the results of both approaches, we’re making the case that recognizing the interconnections, analyzing your situation, and having some realistic and maybe tough conversations will lead to better outcomes for the community. 

Wayne:  Given that in many cities and counties, different departments have responsibilities for physical, fiscal, and economic planning, just how can you develop the coordinated approach you suggest? What steps can you take to break down "silos," that increasingly used word.

Brett:  This is the key issue. Typically, we as consultants (or we as staff or decision makers) are charged with a task, but by the time the task has been defined the key mistake has already been made -- our given project has already been placed squarely within one of the silos. The only way to avoid that trap is to go back to the beginning and shift the starting point.

Many of us engaged in governing and planning believe that, to be successful, policy needs to be driven by a shared vision of what we are trying to achieve. What we are arguing here is communities are in a better position if that vision is developed from a holistic perspective, recognizing the physical, economic, and fiscal realms that underpin success. If a community brings a holistic perspective to their visioning process, they are more likely to develop a vision that is powerful, realistic, and that recognizes what true success really entails.

In practical terms, this means shifting the starting point of your visioning process. It means investing time to develop what I'd call "foundational knowledge," that is, knowledge of how the system works; knowledge of where the community stands today; knowledge of the community’s challenges (again, within the physical, economic, and fiscal realms); and knowledge of opportunities that may exist.

At least three positive results will come out of this broadened visioning process:

First, the community will be more likely to develop a vision that reflects the reality of today and offers a realistic vision of success in the future.

Second, community members will have a deeper appreciation of the role they play in achieving success. And they will have a deeper appreciation about the connection between the things they want and the things that need to happen to make it possible -- including their support through taxes.

Third, after going through this discovery process, governmental staff and policy makers will also have a much more robust understanding of the ways in which the three realms are interconnected.

To focus people’s attention a community would want to embark on this visioning process with the goal of developing a true strategic plan -- a plan with three interrelated components: one addressing the physical environment, one addressing economic competitiveness, and one addressing fiscal sustainability.

Brian:  Leadership is a critical ingredient. Organizations operate in silos because it’s easy and even efficient in the short-term. It takes vision to see the opportunities inherent in taking a more holistic approach, and leadership to bridge across organizational silos to bring participants into a collaborative and multi-disciplinary planning process. In some cases, participants may need to be convinced of the value of the effort or they may resist the time and resources required or the “intrusion” of other decision makers in their area of focus. 

Leadership is also critical in maintaining a consistent direction over time given the changes that will occur in the environment and among city staff and decision makers. This kind of leadership can come from long-standing elected officials or city staff, or perhaps most effectively, from engaged community members who participated in the visioning and planning process and continue to hold the city accountable for consistent implementation of the plan.

Wayne:  Are there any specific success stories you can point to?

Brian:  In the case of one community I worked with recently, a key piece of analysis involved looking at the city’s projected fiscal health. We could see that their costs are rising more quickly than their revenues, as is the case with most cities in Washington State given our tax environment with limits on the growth of property tax revenues. 

We went to the citizens via a phone survey of randomly selected residents and asked whether they’d like to see the city address this issue via economic development, tax increases on residents or businesses, or a decrease in municipal levels of service. We tried to give a realistic and fair representation of the implications of these choices, as well as the implications of pursuing various forms of economic development. For instance, market analysis shows that the city is well-positioned to attract additional large-scale retailers, which would bring both tax revenues and traffic. 

The consensus back from the community was a clear direction for the city to prioritize economic development efforts. We developed an economic development plan that supports their broader vision for the community they want to be and involved the planning commission in helping identify what physical locations and planning parameters would best integrate retail and employment uses in ways that would contribute to and not disrupt neighboring uses. 

Overall, the process gave them a good understanding of their situation and their options, and established a concrete set of actions to advance their vision.

Brett:  One big success I would point to is a collaborative planning process that is under way in Spokane County, here in Washington State. For a couple of years now, Spokane County and all of the Spokane metro-area cities have been engaged in an inter-jurisdictional process to try to resolve areas of conflict and to pursue common interests.

At the outset, the collaboration was largely focused on issues of planning and land use, but as the partners have deepened their understanding of the issues, they have increasingly recognized the interconnectedness of the physical, economic, and fiscal realms. We are now in the process of developing an inter-jurisdictional fiscal strategy --a strategy that is designed to address and complement the land use and development goals of the various communities.

Wayne:  One last question. Can you tell us more about the role a consulting firm such as Integrated Economics or Berk & Associates can play in the process you describe in the article? 

Brian:  A good consultant acts as a trusted advisor, providing an objective perspective, analytic and planning expertise, an understanding of what has worked for others, and a way for different voices to be heard. In this regard it’s not so different from being a psychologist or counselor! 

A consultant is well-positioned to do fair and objective analysis, gather information and perspectives from a broad range of community stakeholders, and then facilitate a dialogue about a community’s options, vision, and action plan. Of course this really can’t happen effectively without close collaboration with the client; an engaged client who is willing to roll-up their sleeves and contribute to analysis and plan development is just as necessary as a good consultant. In the end, it’s the community’s plan and to be able to implement it well, the client has to understand the inputs and really believe in the plan. 

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If you have any questions about either the article or the interview, you can contact the authors by email:
Brett Sheckler: brett@integratedeconomics.com
Brian Murphy: Brian@berkandassociates.com

Integrating Physical, Economic, & Fiscal Considerations in Community Planning

Too often local fiscal and economic development policies fail to mesh with comprehensive plan goals. How a more integrated approach to planning can better align a community’s policy objectives. From PCJ #79, Summer 2010; 2 pages

See our interview with the authors Read start of article written by Brett Sheckler & Brian Murphy: Communities across the country are facing daunting challenges, grappling with fundamental issues of economic competitiveness and fiscal sustainability: -- How do we preserve our community's economic strength in a competitive landscape? -- How do we ensure that local governments can continue to provide the foundational services like public safety and infrastructure that allow our communities to succeed? Cities, towns, and counties develop policies by envisioning what they want to look like in the future. Typically, these visioning processes concentrate on the physical environment -- including man-made and natural features. What local planning processes often fail to do, however, is strategically address the other two realms that are crucial to success -- our economic and fiscal environments. In reality, the success of our communities relies on all three realms: (1) making the most of our physical environment; (2) ensuring economic competitiveness; and (3) promoting fiscal sustainability. These three realms are the underpinnings that make our cities, towns, and counties strong, and they are deeply intertwined. Each realm influences the others in multiple and multifaceted ways. In the end, our communities cannot succeed in any one realm if they fail to succeed in the other two. Because of the complex interconnections, true success hinges on a community having a holistic vision of what success really looks like, and an integrated strategy to achieve it. How is This Different From What Communities Do Today? To one degree or another, most jurisdictions already have plans in place to address each of the three realms. They have a plan for their physical environment; they have a strategy for economic development; and, in one form or another, key policy makers have a fiscal strategy to make ends meet. The problem virtually every community faces is that these plans are developed separately, and fail to adequately address the interconnectedness of the physical, economic, and fiscal realms. In most every community we work, we see two common shortcomings: 1. Confounding effects among disparate plans; and 2. Community visions for the future that fail to meaningfully consider all three realms that underpin success. In the most benign instances, confounding effects take the form of an element of one plan that does less than it could to support a strategy outlined in another. Less benign, and uncomfortably common, are instances where the strategies set out in one plan contradict and undermine -- often unintentionally -- strategies being pursued in another. For example, we recently worked with a city whose economic development strategy hinged on an aggressive plan to revitalize its historic downtown and adjacent waterfront. The aim was to transform the downtown into an urban node of housing, retail, and other commercial uses. The city had done many of the right things, but the crucial missing element was attracting multifamily development to the area in and around downtown. One reason: the city's land use regulations -- driven by the city's comprehensive plan -- had created a vast oversupply of land zoned for multifamily elsewhere in the community. As long as developers had plentiful (and low-cost) opportunities to develop multifamily across the city, the community was less likely to succeed in concentrating its (modest) multifamily demand downtown. ... article continues / the complete article can be ordered & downloaded using the link below

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In Our Spring Issue: "Coping With Economic Meltdown"

How strong is your local economy? Is there a role for planning commissioners in addressing local economic development? The first of a series of columns by planner Gwendolyn Hallsmith. by Gwendolyn Hallsmith; from PCJ #78 (Spring 2010); 1 page -- see our conversation with Gwendolyn Hallsmith, one of our new contributing writers. Read first half of the article below; to order & download the full article use Shopping Cart button at bottom of this post.

Read first half of article: You are sitting in a public hearing about the zoning changes you have been preparing for the past year, fighting a sense of despair and futility. More projects have been abandoned than have been started. Money is tight -- at least one of the cancelled projects lost its financing at the last minute. More than ever, it feels as if the title "Planning Commissioner" doesn't reflect your role -- shouldn't planners be able to offer a path forward, even through dark times? The local economic development authority has been working as hard as they can to attract new businesses. They spend money, even in the downturn, on trips to distant places to try and find the next big new enterprise to bring to town. They often return empty-handed. The economy elsewhere suffers the same sluggishness as here at home, they say. Maybe when things pick up they'll have better luck. Is this search for external investment the best strategy for strengthening the local economy? Consider this: 1. The vast majority of new jobs are created by small and medium sized firms, not large employers. 2. New markets, jobs, capital, technology, and economic expansion are generated when cities start to produce goods and services that were previously provided by distant exporters. 3. Start-up, innovative, entrepreneurial enterprises are on the increase in the 21st Century, while the large manufacturers that dominated the economies of the 19th and 20th Centuries are declining. 4. Local long-term wealth creation and economic security are dependent on local ownership of productive capacity; simply receiving wages for employment while the profits are exported to distant corporate centers robs the local economy of the capital it needs to succeed. 5. An over-reliance on export-led development can undermine the long-term economic health of a community. More attention needs to be paid to local needs and markets. Similarly, communities that develop local exchange systems and reduce reliance on the national currency will also enhance long-term local wealth creation. 6. Companies that are locally owned are much more sensitive to community needs and environmental conditions, and can lessen a city or town's vulnerability to job losses when economic downturns occur. If the solution to your economic problems can be solved through local action, then perhaps there is more of a role for planning commissioners than you have been taking. ...

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Make Boston the Hub of Municipal Innovation

We've been periodically posting excerpts from "State of the City" addresses given by mayors from across the U.S. These addresses can offer insights into both innovative programs and challenges facing cities.

Previously posted:

Shoreview, Minnesota, Mayor Sandy Martin Salt Lake City, Utah, Mayor Ralph Becker Ashland, Oregon, Mayor John Stromberg Topeka, Kansas, Mayor Bill Bunten Albany, New York, Mayor Gerald Jennings

Grand Rapids, Michigan, Mayor George K. Hartwell Austin, Texas, Mayor Lee Leffingwell Fort Worth, Texas, Mayor Mike Moncrief Riverside, California, Mayor Ronald O. Loveridge Minneapolis, Minnesota, Mayor R.T. Rybak

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 Boston Mayor Thomas M. Menino
Inaugural Address (Jan. 4, 2010) -- read complete text (pdf); excerpts below:

Today, knowing that all of our potential remains, we inaugurate a new era of shared innovation. What will be some hallmarks of this era? A long list of goals includes four I highlight today: Transforming education, delivering on our waterfront and new jobs, making over basic city services, and bringing our city together across diverse backgrounds.

[see complete text for Menino's comments on Goal 1, transforming education]

Goal two in this term is to unlock the potential of our city in Downtown Crossing, Dudley Square, and the Albany Street Corridor, and to deliver on the promise of our marine industrial park and waterfront by turning them into a vibrant Innovation District. 

A new approach is called for on the waterfront -- one that is both more deliberate and more experimental. Together, we should develop these thousand acres into a hub for knowledge workers and creative jobs. We’ll define innovation clusters -- in green, biotech and health care, web development, and other industries. And there, we’ll experiment with alternative housing models. We will test new ideas that provide live/work opportunities to entrepreneurs and affordable co-housing for researchers.

Years of financial engineering left us with a sub-prime crisis in housing. It’s time to get back to “engineering engineering.” We’ll give architects and developers the challenge to experiment with new designs, new floor plans, and new materials. Our mandate to all will be to invent a 21st century district that meets the needs of the innovators who live and work in Boston -- to create a job magnet, an urban lab on our shore, and to harvest its lessons for the city.

Goal three is to transform our delivery of basic city services and usher in a wave of municipal innovation. Sixteen years ago I was labeled the Urban Mechanic and described as a sort of one-man “Mr. Fix-it” when it came to the basics that make our city work. The nickname was overstated then, but it’s outdated now -- we are all urban mechanics.

Smartphones, GPS, wireless technology, and a resurgent spirit of civic engagement mean that all of us are eyes and ears on the streets, that neighbors are our greatest source of data, and our citizens the best civic entrepreneurs. It’s time to build on our early experiments, deliver on projects we’ve dreamed up, and make Boston a proving ground for dozens of novel solutions.

 This is an open call to foundations, entrepreneurs, technologists, and neighbors: Help us make Boston the hub of municipal innovation. Be the heart of this approach -- one we call New Urban Mechanics -- and make sure it delivers on the noble promise we make to all of our residents: to provide neighborhoods that work for them and their families.

[see complete text for Menino's comments on Goal 4, bringing city together]

There will be a substantial wind at our backs because in many ways, changes in the world have come to us. Social networking is a new way of saying what we have long held dear -- we accomplish more when we engage people. Concerns about inequalities remind us of what we have always felt -- a city works best when it works for all of its residents. Market failures in the last few years confirm for us, in this cradle of democracy, that yes, government still has a positive role to play in people’s lives. There is no place on earth better positioned to meet the challenges of a new decade or to make use of its new tools than here in Boston.

A new day of shared innovation lies ahead for all of us, and we carry into it all the talent, fortitude, and creativity that have brought us here.

Just Like in Baseball, the Fundamentals Remain the Same

We've been periodically posting excerpts from "State of the City" addresses given by mayors from across the U.S. These addresses can offer insights into both innovative programs and challenges facing cities.

Previously posted:

Shoreview, Minnesota, Mayor Sandy Martin

Salt Lake City, Utah, Mayor Ralph Becker

Ashland, Oregon, Mayor John Stromberg

Topeka, Kansas, Mayor Bill Bunten

Albany, New York, Mayor Gerald Jennings

Grand Rapids, Michigan, Mayor George K. Hartwell

Austin, Texas, Mayor Lee Leffingwell

Fort Worth, Texas, Mayor Mike Moncrief

Riverside, California, Mayor Ronald O. Loveridge

---

Minneapolis Mayor R.T. Rybak
State of the City Address (to read the full address given on March 10, 2010); excerpts below:

An economic tornado has ripped through the heart of our city, our country and the global economy. In those months that followed we began to look up and survey the damage. We've been shocked by what we have seen.   

At the end of 2007, the official beginning of the recession, unemployment in Minneapolis stood at 4.3%. Today, it stands at 6.8% -- after peaking in July 2009 at 8.4%.

At the end of 2007, the retail-vacancy rate hovered around 6.0%. Today, it stands at 10.5%

In the middle of 2008, the average traditional-sale price of Minneapolis home was $220,000. Today it stands at $193,500. That's $26,500 less in wealth that the average Minneapolis homeowner can count on.

... The economic devastation in the economy also has a direct impact on basic services in the city. With the state budget in deep crisis, part of the solution proposed by the governor has been to cut an additional $29 million from the City. These are the funds we use to pay for police, fire, road maintenance and other basic services. I am currently working with our finance team and Council leadership to develop a supplemental budget based on deep state cuts. I will present it in early April. It won’t be pretty.

There are some signs, however, that we are turning a corner. Just yesterday, Forbes Magazine ranked Minneapolis Saint Paul the #4 metropolitan area in the country where the recession is easing. Still, even an optimist like me wonders whether we can ever get back to where we were before. But in the year and a half since the economy collapsed, all parts of this city have found a way to make progress. 

... in President Obama we finally have a champion at the federal level. When I stood here one year ago, the president's economic-recovery plan had only just passed. One year later, we've seen what it's meant: Minneapolis alone is benefitting from $60 million from the American Recovery and Reinvestment Act. We will continue to feel the positive effect of that assistance through this year.

We also have never had such strong partnerships with regional partners. We are working with both the Itasca Group, a coalition of regional CEOs, and the Regional Conference of Mayors on a regional economic development strategies. We have also never worked more closely with Mayor Chris Coleman and the City of Saint Paul, especially on green jobs and transit.

We are like the Twins -- we're playing on a whole new field. But just like in baseball, the fundamentals remain the same. 

... The first fundamental is investing in people. In 2003, we merged Minneapolis' successful job-placement programs into a more powerful department of Community Planning and Economic Development. Since then, we have helped place nearly 11,000 people get training and good jobs. ... Minneapolis is also a national leader in partnering with the business community to develop the workforce for tomorrow. Since 2002, we have placed more than 11,000 young people from Minneapolis in summer jobs, the majority of them through STEP-UP. Last summer alone, we found jobs for 2,270 young people.

... Six years ago, unemployment was one percentage point higher in the city than in the surrounding suburbs. Now, for the first time in decades, unemployment in Minneapolis is below the suburbs, the state and the nation.

... All this effort to develop the workforce is the first, and most important, fundamental in creating jobs. The second fundamental is to invest in the common ground that helps everyone succeed. The common ground includes five key elements: (1) safe neighborhoods; (2) stable neighborhoods; (3) technology infrastructure; (4) well-maintained roads and bridges; (5) expanded transit options. 

Investing in common ground starts with making every neighborhood a Safe Place to Call Home. This has been the top priority of our city government for eight years and that focus has paid off ...  The common ground also including helping neighborhoods stay stable. First, that means preventing foreclosures when we can. Foreclosure counseling and prevention costs the City an average of $500 per household -- but foreclosure costs the public and private lenders an average of $68,000 per household. In 2009, the City helped prevent close to 500 foreclosures -- which means that for an investment of around $25,000, we saved over $30 million in costs.

... The common ground includes technology infrastructure. The Minneapolis wireless network is now complete, and USI Wireless now has over 16,000 residential subscribers. Over 50 Community Technology Centers have free wi-fi access, and this spring here will be over 100 free outdoor wi-fi hot spots throughout the city. Minneapolis continues to lead the way as the first large city to build such a network.

The third fundamental is investing in small business. Too often, economic development means special assistance to just a lucky few big players. But there’s a better way to do it. When government does provide assistance to businesses, it needs to be focused on the job-creation sweet spot of the partnership between the public and private sectors -- and that's small business, where most jobs are grown.

 About five years ago, we began unifying several previously disconnected City programs for small business into a unified effort called Great Streets. To someone who wants to open or expand a business on a commercial street, Great Streets offers gap financing, low-interest loans, façade-improvement matching grants, and business plans and marketing assistance. Since 2007, we have invested $3.7 million on commercial corridors throughout Minneapolis.

... Knowing when to help, and when to get out of the way. With Minneapolis Development Review, we have also streamlined the City's development review processes. In 2005, it took an average of 37 days for the City to route formal development plans. In 2009, it took an average of 10 days. ... In the past year, we integrated Business Licensing into the Service Center, so now, partners can receive new or renewal licenses and obtain permits for many construction-related jobs the same day -- all in one location. ... We've established a Business Development presence at the Service Center so small businesses can meet with City staff to obtain information on low-interest loans and the other services we provide for small businesses.

We're also processing more and more permits via the Internet. In 2003, we processed exactly zero permits on the Internet. Last year, we processed 21% of all permits via the Internet.

... Our greatest challenge right now is the challenge of putting people to work. No one can wave a magic wand and suddenly make jobs appear, especially not now.  There isn’t one single action to take, and nothing right now is easy.  But we know what works:

• Invest in people and the common ground that helps everyone succeed.
• Invest in small business, and innovation.
• Know when to help and when to get out of the way.

What Brand is Your City?

The idea -- and process -- of identifying, shaping, and promoting a particular image of a city or neighborhood has come to the fore in both the academic and popular press. It's called "branding." 

Branding, you may recall, was one of the top priorities Riverside, California, Mayor Ronald O. Loveridge identified in his State of the City address (see our News, Notes, & Quotes posting yesterday).

Certainly, many cities have long had distinctive identities, and have been known -- sometimes worldwide -- for certain characteristics. Think: Chicago, The Windy City; Paris, City of Light. But in today's competitive economic environment, with cities clawing for new businesses and for tourist dollars, identities that emerged gradually over time -- and may not have even been particularly appealing -- are now being instantly forged with the help of advertising (oops, communications) firms and media conscious chambers of commerce and elected officials. 

Here's a short excerpt, for example, from a recent article by Roger Yu in USA Today: Cities use destination branding to lure tourists (Feb. 11, 2010)

 "Tom Biedenharn's new business cards contain a recruiting message: 'Dayton Patented. Originals Wanted.' The cards are a reminder that the city was once a place of innovation and is again serious about recruiting such talent, says Biedenharn, Dayton's public affairs manager.

'Destination branding,' such as Dayton is undertaking, is back in vogue as cities and states pursue image makeovers designed to help them stand out in the weak global economy, attract visitors and even lure people who might relocate.

City slogans have been around for decades. But image branding is taking on more urgency as visitors and meeting planners become more discriminating in spending their shrinking budgets. ... 

For cities such as Dayton, Fresno and Cleveland, branding goes beyond tourism. It aims for a new identity that can stir local communities out of economic doldrums. ..." 

Dayton even cleverly highlights its branding campaign on the city's web site -- asking visitors to nominate a Dayton "original." Selected people (and places) are then highlighted.

There's also a new brand name for venerable Providence, Rhode Island:

As Philip Marcelo reports in the Providence Journal, ‘Creative Capital’ Providence found inspiration elsewhere (Mar. 30, 2009):

Goodbye, Renaissance City. So long, Beehive of Industry. The city has a new catchphrase, if you haven’t heard. ... Gradually, official stationery, business cards and the city’s Web site are being updated to reflect the new aesthetic, which has the clean, spare look of the start-up companies that the city is trying to entice. ... Mayor David N. Cicilline is rebranding the city as a center for creativity and innovation, the sort of place where the so-called knowledge-based industries would want to locate.

The city hired a pair of firms for a total of about $100,000 so far to come up with the concepts and designs. ... Seven companies, five of them out of state, replied. ... North Star was chosen with a low bid of about $75,000; it has done rebrands for Dayton, Ohio (“Originals Wanted”); Fairbanks, Alaska (“Light Energy Warmth”); Texarkana, Texas (“Western Spirit Served with Southern Hospitality”); and Gainesville, Fla. (“Every Path Starts with Passion”), to name a few. In New England, it came up with the Yarmouth, Mass., tagline “Cape Cod. Within Reach.”

Another city that has just recently branded itself is Regina, Saskatchewan. As reported by Bruce Johnstone in The Leader-Post (Feb. 9, 2010):

"Regina has a brand new brand in the form of a stylized letter R and a new slogan -- "infinite horizons" -- to convey the city's boundless opportunities and enviable quality of life. Mayor Pat Fiacco unveiled the city's new brand at his annual State of the City address ... Fiacco said the new brand, developed over 18 months for $320,000 by Winnipeg advertising firm McKim Cringan George, will help promote the city, both inside and outside the province. ...

Following his address, Fiacco said spending close to $400,000 in developing a brand should more than pay for itself in population growth and job creation. 'It's the cost of doing business. Cities who do nothing, get nothing.' In fact, Fiacco said every new citizen adds $40,000 in per capita GDP to the local economy. 'So if we get 10 new people, this pretty much pays for itself over the course of time.' "

The City has even posted a Q&A page on its web site explaining what the new brand means and how it can be used.

Some interesting observations on branding come from Otis White of Civic Strategies:

"Cities are in a lather these days about branding, and the list of cities actively searching for a 'brand' (the image that pops in your head when you think of a place) is long indeed: Chicago, Denver, Dallas and on and on. What these places are learning, though, is that it's infinitely harder to create a credible brand for a city than for, say, household detergent. ... For one thing, cities aren't discrete products. You can't reformulate them, relaunch them or shut them down if they're underperforming. Also, 'place marketing' almost always involves a lot of interests, some of which do not see eye to eye. 

So is all this branding stuff hopeless? No, experts say, but cities need to proceed realistically. ...  First, they shouldn't aim to be too specific with their images; the goal should be to create an "umbrella brand" that nearly everyone can live with. ... Second, branding efforts should proceed with a lot of public outreach. 'To deliver,' one expert said, 'everyone must believe in the brand.' " 

"I Know It's Only Rock and Roll, But I like It," Says Austin Mayor Leffingwell

This January and February we'll periodically be including excerpts from "State of the City" addresses given by mayors from across the U.S. These addresses can offer insights into both innovative programs and challenges facing cities.

Previously posted:

Shoreview, Minnesota, Mayor Sandy Martin

Salt Lake City, Utah, Mayor Ralph Becker

Ashland, Oregon, Mayor John Stromberg

Topeka, Kansas, Mayor Bill Bunten

Albany, New York, Mayor Gerald Jennings

Grand Rapids, Michigan, Mayor George K. Hartwell

---

Austin, Texas, Mayor Lee Leffingwell
To read his complete State of the City address 

Our technology industry -- and especially our semiconductor industry -- has been central to Austin's economic growth, and thus our quality of life, over nearly two decades. But it's time to face facts: Big chunks of the semiconductor industry have shipped overseas, and those jobs are not coming back. That doesn't mean our technology industry isn't important to Austin anymore. It absolutely is. It's critically important. And it will continue to be. ... But, as the nature and focus of the national and global economy evolves, so should the nature and focus of our local economy ... 

We've been talking about this long enough that I think there is general agreement about where our economic focus should be moving forward: Renewable energy, creative media, and medical technology. These industries are the future of Austin's economy. They can, and will – if we play our cards right – form a new foundation of sustained economic growth into the next generation.

Renewable energy is a natural fit for Austin. We have a proud legacy of environmentalism in this community. We have the technical expertise and the drive to innovate. And, we are the capital city of the most important state in today's energy economy. There's no excuse for Austin not to be at the forefront of the global clean energy revolution happening today. ... I want to make special mention of the Pecan Street Project, which is a collaborative effort of the City, Austin Energy, U.T., the Chamber, and a dozen other partners, to work on developing smart grid infrastructure in Austin. Two months ago, the Pecan Street Project won a $10 million federal grant – an indicator of its promise, and the promise of the clean energy sector as a whole for Austin.

Our second clear opportunity for economic diversification is in the world of creative media. Already, Austin is known internationally as a center of creativity. We are the "Live Music Capital of the World" – and our music industry continues to be critical to both our economy and our culture. Together, South by Southwest and the Austin City Limits Music Festival generate more than $150 million in economic impact every year. ... I know it's only rock and roll, but I like it. ...

Our film and television industry continues to mature. As more state incentives come online, we'll be able to attract more studio and independent productions, and begin to reach a critical mass of local talent and facilities.

Video gaming is another creative media sector that has enormous economic potential for Austin. Overall, video game sales were down a bit in 2009, but still did more than $20 billion. To put that number in perspective, it's three times the size of total sales in the music industry last year. ... We've got a steadily-growing group of game developers and distributors here in Austin now, but we want and need more.

Finally, everything happening with web-based services, mobile computing, and social networking also holds great promise for our city. This is where I believe we have a unique opportunity to marry our tech-savvy culture, and labor force, with the next generation of growth. In particular, I'd very much like to see some of the largest social media companies, like Twitter, establish a significant presence in Austin in the near future. ...

The third big opportunity for Austin is in the area of medical technology and life sciences. Already, some of our largest employers are in the health care sector: Seton, St. David's, Girling, and others. And one of our biggest ambitions as a city, and a region, is to become home to a full-fledged medical school. There are lots of creative, dedicated folks working hard on that goal right now. ...

Lastly, I want to talk about the importance of small local business. Here's a stat that may surprise you: 90% of companies in Austin have fewer than 10 employees. And about 75% of all Austin jobs are with companies that employ fewer than 100 people. I think those figures make it pretty clear how critical small local businesses are to Austin. They are really the backbone of our economy. ....

I can't stand up here today and tell you that the worst of what's happening around us is over. The truth is, it may not be. But, after a lifetime in this city, I know the fiber of Austin, Texas. I know the character of the people who live here. And I can stand up here today and tell you – with great confidence – that for us, the best is yet to come." 

We Must Take Steps to Avoid a Financial Tsunami

This January and February we'll periodically be including excerpts from "State of the City" addresses given by mayors from across the U.S. These addresses can offer insights into both innovative programs and challenges facing cities.

Previously posted:

Shoreview, Minnesota, Mayor Sandy Martin

Salt Lake City, Utah, Mayor Ralph Becker

Ashland, Oregon, Mayor John Stromberg

Topeka, Kansas, Mayor Bill Bunten

---

Albany, New York, Mayor Gerald D. Jennings
To read his complete State of the City address (pdf)

I have taken great pride and satisfaction in reporting that the state of our City is strong, and that our future is bright. But tonight, as our State and Nation continue to struggle through the worst economic crisis since the Great Depression, the effects of that crisis on our City present challenges that will require us to make difficult decisions in the days, weeks, and months ahead -- challenges that will require us to work together to maintain the quality of life that has earned our City national recognition, and the strongest bond rating in the State outside of New York City.

First and foremost will be the challenge to maintain our City’s financial stability. Since 2008, we’ve lost millions in anticipated, even budgeted State aid, with threats of more cuts to come. ... As we move forward, our challenge will be first - to impress upon the Governor and State Legislature that they cannot continue to pass on the State’s financial crisis to local governments through additional cuts in State aid payments. We must additionally convince our State leaders that Albany needs to be justly compensated for the high percentage of State land that is tax-exempt. Accordingly, I will ask our State legislators to reintroduce the Harriman PILOT [payment in lieu of taxes] bill, and I ask you to advocate for its passage, and for its signature into law by the Governor. We cannot and should not be told once again, that - it’s not the right time, Albany. ...

We will also continue to look for additional Federal aid. This year, stimulus funding will enable us to add 10 additional police officers. These additional officers will enable us to put beat cops back into neighborhoods as we renew our commitment to community policing. ...

Our challenge then is clear; to work to preserve -- and even enhance -- vital programs without resorting to cuts in personnel or to implementing higher real property taxes.

Just consider what our Department of Development and Planning, our Housing Authority, and our Community Development Agency have accomplished in terms of neighborhood revitalization projects ... using a variety of State and Federal funding sources to leverage private investment. This year, we’ve included in our capital budget, $1 million dollars in new borrowing for additional neighborhood revitalization initiatives that will enhance our successful Block-by-Block Program.

We need, of course, much more to make the kind of dramatic impact that will eliminate vacant and abandoned buildings from all of our neighborhoods. ...

The combination of decreasing revenues and increasing expenses has created a situation that will require extraordinary action in the coming months to avoid a financial tsunami next year. So tonight I am appointing a new task force that will include the Council President, the President Pro Tempore, Majority Leader, our new City Auditor and new City Treasurer, and our Deputy Mayor and Budget Director, to review the financial challenges I’ve outlined.

I will also begin the process of engaging an outside independent financial management firm that will review and make recommendations with regard to City-wide operations [and] will also shortly be appointing a separate task force of outside financial experts to focus on the fiscal issues attendant to our status as the State Capital and the issue of the inequity in our State aid payments. ...

So tonight, despite all the challenges, I am once again the optimist. Our City is resilient, our people are resourceful, and our opportunities for success unlimited. ...

Administration Announces High-Speed Rail Projects

It was really quite remarkable. After nearly half a century of ignoring rail's potential, the nation is finally making a major investment in developing high-speed rail corridors. The confluence of: the need for major infrastructure projects to create jobs; the track record of success of high-speed rail in Europe and Asia; the prospect of a continued long-term rise in gas prices; the energy/environmental benefits of rail; and the increased congestion on urban interstates (linked to the enormous cost of expanding highway capacity) helped result in an initial commitment of $8 billion for high-speed rail.

Of course, high-speed rail in America will generally still be considered low- or medium-speed rail in the many countries far in advance of the U.S. in developing their passenger rail networks. Nevertheless, it's an important start. See our May 9, 2009 post for more on how U.S. rail stacks up to high-speed rail in Europe.

Why $1.25 Billion for Florida

Of the projects awarded funds, perhaps the most interesting choice was the $1.25 billion to be invested in Florida. In fact, the very day after his State of the Union Address, President Obama along with Vice President Biden were in Tampa to highlight the significance of this project. As the President told the town hall crowd, "there is no reason why other countries can build high-speed rail lines and we can't. And that's what's about to happen right here in Tampa -- we are going to start ... building for the future, putting people to work." 

A press release issued by the White House described the project: "This investment will initiate the development of the Tampa to Orlando segment, with speeds reaching 168 mph and 16 round trips per day on brand new track dedicated solely to high-speed rail. Trip time between the two cities on the new line will be less than one hour, compared to around 90 minutes by car. This project will create jobs and generate economic activity as 84 miles of track are constructed, stations are built or enhanced, and equipment is purchased. Completion of this phase is anticipated in 2014." This is to be followed by completion of a link from Orland to Miami three years later. 

As Bryan Walsh explains in an interesting report just posted on Time's web site: 

"Demographically, Florida is an ideal state in which to launch the rail projects. Together, the metro areas of Tampa and Orlando are a major economic unit, home to more than 3.4 million people and close enough on the map to make high-speed rail competitive with air and auto travel. The region is also a tourist hub, which makes it likely that a Tampa-Orlando rail line will be well-used by Americans from around the country. That makes it a smart advertisement for other high-speed-rail projects back in their home regions.

Florida's project is also an optimal test case, having already been approved by the state and relatively free of red tape. The line is set to open by 2015, the environmental-impact assessment has already been done, and the state owns more than 90% of the route's right of way."

Moreover, in October it was reported that Disney will provide up to 50 acres of free land for a station serving Disney World and the huge Orange County Convention Center (the nation's second largest convention center, with 2.1 million square feet of exhibition space).

The very ambitious time frame for the Tampa-Orlando work also seems aimed at having a high-speed rail service in operation in the near future. As Walsh noted, this will help visibly demonstrate rail's benefits and keep momentum rolling. Moreover, it's a much shorter time frame than California will need for its much more complex & costly high-speed rail plans, having a target date of 2020. 

As many recognize, the $8 billion going to high-speed rail is really just a down-payment on what will be needed to develop the high-speed rail corridors designated so far. 

click on U.S. map to view larger image -- for list & information about the selected projects

The best initial analysis we've found of the Administration's selection of projects was posted by Yonah Freemark on theTransportPolitic web blog. As he notes:

"After months of speculation about which states will get funding from the Federal Railroad Administration to begin construction on new high-speed corridors, the news is in. As has been expected, California, Florida, and Illinois are the big winners, with more than one billion in spending proposed for each. But other states with less visible projects, including Wisconsin, North Carolina, and Washington will also get huge grants and begin offering relatively fast trains on their respective corridors within five years. The distribution of dollars is well thought-out and reasonable: it provides money to regions across the nation and prioritizes states that have made a commitment of their own to a fast train program. ... Despite the excitement, though, there is plenty of work that still needs to be done -- and huge amounts of money that still needs to be spent -- to get most of these projects up and running. Eight billion dollars of spending won’t be enough for even one true high-speed line."

Also of interest, remarks by John Robert Smith, President of Reconnecting America and former Mayor of Meridian, Mississippi:

"Hearing President Obama call high-speed rail 'the infrastructure of tomorrow' gave me great hope. Very rarely has transportation investment made the final cut in a presidential State of the Union address. The fact that it did make the cut this time really speaks to the president’s commitment to making high-speed rail a reality.

I’ve heard critics say over the years that the U.S. is too big for high-speed rail. China is the biggest country in the world and they built over the Himalayas and are now committing an additional $500 billion over the next 20 years. Saudi Arabia too is investing in high-speed rail in preparation for that certain day when oil reserves will no longer sustain the country. If they can do it, we can do it."

As Smith went on to note: "High-speed rail investment is about jobs, and not just temporary jobs, but long-term American jobs that cannot be outsourced. These jobs will employ Americans to build both rail networks and passenger rail equipment. I have seen first-hand what investment in rail infrastructure and transit-oriented development can do to lift a mid-sized city like Meridian, Mississippi. Now there are people living in downtown, there’s entertainment downtown and a conference center has been built. It all started with a public sector investment done right." 

Fact sheets on all the projects selected for funding are available to download (go to links near the end of the Press Release). Applicants submitted over $55 billion in project proposals for the initial $8 billion in funds awarded on Thursday.

Sales Up for Independent Retailers

Came across some interesting information from the Institute for Local Self-Reliance. Coincidentally, read this at about the same time we received a draft article for the Spring issue of the Planning Commissioners Journal highlighting the importance of strong local economies. See: Coping With Economic Meltdown, by Gwen Hallsmith, Planning Director for the City of Montpelier, Vermont. (Would welcome your feedback on this draft article)

Read complete Press Release; Download Survey Results

Excerpts: More holiday shoppers deliberately sought out locally owned businesses this year, according to a national survey of more than 1,800 independent businesses. 

The survey found that holiday sales for independent retailers were up an average of 2.2%. That contrasts with the U.S. Department of Commerce figures released today, which show that overall retail sales were down 0.3% in December and up 1.8% in November.

The survey also found that independent retailers in cities with active "Buy Independent / Buy Local" or "Local First" campaigns reported stronger holiday sales than those in cities without such campaigns. These campaigns have been launched in more than 100 cities and towns. Independent retailers in these cities reported an average increase in holiday sales of 3.0%, compared to 1.0% for those in cities without an active Buy Local initiative.

The survey was conducted by the Institute for Local Self-Reliance, a nonprofit research organization, in partnership with several business organizations, including the American Booksellers Association, American Independent Business Alliance, American Specialty Toy Retailers Association, Business Alliance for Local Living Economies, and National Bicycle Dealers Association.

Sustainability Key to Future of Ashland, Oregon

 This month and next on our News, Notes, & Quotes page we'll periodically be including excerpts from "State of the City" addresses given by mayors from across the U.S. These addresses can offer insights into both innovative programs and challenges facing cities.

Previously posted:

Shoreview, Minnesota, Mayor Sandy Martin

Salt Lake City, Utah, Mayor Ralph Becker

---

Ashland, Oregon, Mayor John Stromberg
to read his complete State of the City address (Jan. 5, 2010)

... I believe Ashland is surviving because it is a genuine, archetypal, community in a world that has lost touch with what that actually means but when people come here, they feel the difference and respond to it. Most Americans live in big cities or suburbs and don't have an experience of what a geographically based, human scale, fully developed town is like. Nor do they appreciate, until they experience it, how different life can be in such a place as this.

I believe we are a seed community for where the world needs to go if the human race is to survive on this planet. That doesn't mean we're more virtuous that people elsewhere but that rather we have the good fortune to live in a geographically extraordinary location that has always attracted people who have responded to it and throughout its history created institutions and a culture that aspires to complement, or match, its physical qualities. And, beyond that, the current incarnation of our community is centered on a world class repertory theater inspired by and regularly producing the works of the greatest playwright in the English language.

You can go on to list many unusual components of our community that mutually support a unique atmosphere that has drawn us here and keeps us here, sometimes at great sacrifice. We definitely have our foibles - but in a largely unspoken way we are tending a flame of community and culture that is life giving and life affirming. I believe such a community is at the core of creating a sustainable future in all associations and aspects of the term. ...

With the world, to a certain extent, crumbling around us, and we being affected as well, I would argue we, as a community, are pursuing the following strategy:

Take full advantage of the old economy as long as it lasts but use this time to develop a new community and new culture that is in harmony with the world in which we live.

I will use the rest of this address to illustrate what I mean ...

The City Council has set goals for the next 12 to 24 months to continue Ashland’s history as a community that focuses on sustaining itself and its people. To us, sustainability means using, developing and protecting resources at a rate and in a manner that enables people to meet their current needs and also provides that future generations can meet their own needs.

The detailed Council Goals consist of 15 projects which the Council is currently focusing its attention and resources. Four of these projects, all of which are just beginning, are especially significant. ...

1. A collaboration with the community to produce an economic development strategy for the town and to identify ways that City government can support this strategy. (The community will have significant input in all four of these projects but I've emphasized City-community 'collaboration' in this case to clarify that the City is not trying to impose its notion of economic development on the community.)

2. A city-wide transportation plan for the future that is coordinated with changes to the City's land use patterns. I believe this must be organized around something(s) other than the private automobile as the primary means of transportation.

3. A comprehensive study of the City water system and all its sources, taking into account the latest research in climate change and the latest thinking in how water can be used most sustainability.

4. The Ashland Forest Resiliency Project to reduce fire danger in the watershed and wildfire zones by thinning nearly 8,000 acres of National Forest that borders the city and encompasses our watershed. ...

May 2010 be a rewarding and successful year for us all!

Bipartisan Mayors Launch Piedmont "Megaregion" Alliance

 National columnist Neal Peirce focuses his weekly column on a new coalition designed to promote "quality growth" in cities along the I-85 corridor in the Carolinas, Georgia, and Alabama. As Peirce notes, the Piedmont Alliance "is loosely affiliated with America 2050, a public policy group focused on rapid rail and other strategies to make the U.S. more competitive and sustainable in this century." 

Bipartisan Mayors Launch Piedmont "Megaregion" Alliance (use link for full article; excerpts below)

With 4 million more people projected for the region, plus an anticipated increase in truck traffic to and from Southeast ports, the maps of likely interstate roadway traffic show horrendous 20-year increases.

Passenger rail is a clear alternative for intercity trips. But the region's few trains are slow and infrequent. Planning for quality regional rail service - not to mention the true high-speed trains now becoming the international norm - is anemic, lagging behind other U.S. megaregions.

Water is another troubling issue. The Piedmont relies on numerous lakes and rivers for drinking water, electricity generation by utilities, and manufacturing. But future supply is endangered by increased demand and careless, ecologically harmful development. Plus, water wars between the region's states are a decades-old story, with Charlotte and Atlanta both caught up in different federal court suits right now.

"Now we're fighting each other" says [Charlotte Mayor Pat] McCrory. "Who wins that battle?"

See a brief video clip of Mayor McCrory on the importance of megaregions.