Volume 23 Number 2 June 2005 The Magazine of Free Market Environmentalism IN THIS ISSUE THE CATSKILLS PARABLE SUCCESS OVERDUE AT THE QUINCY LIBRARY CONSERVATION EASEMENTS IN CRISIS? WHAT EVER HAPPENED TO SMART GROWTH? FROM THE EDITOR WHAT EVER HAPPENED TO SMART GROWTH? PERC CELEBRATES ITS 25TH ANNIVERSARY POLICIES TO REDUCE SPRAWL HIT OBSTACLES By C. Kenneth Orski and Jane S. Shaw To honor PERC’s anniversary, this month we are hosting keyboardist Chuck “A review of Leavell to lead “An Evening with PERC” in Bozeman. Of course, we aren’t inviting him key state and just because he plays for the Rolling Stones, the Allman Brothers, or Eric Clapton and PERC Reports presents an exciting show. Chuck is also an award-winning tree farmer, ensuring future Volume 23 No. 2 June 2005 local planning forests through stewardship today. ISSN 1095-3779 records shows no For the rest of the year, PERC is celebrating by doing what we do best—research, Copyright © 2005 by PERC. significant shifts Editor outreach, and education about property rights and market approaches to environmen- Jane S. Shaw in Maryland’s tal issues. This issue of PERC Reports examines environmental events in the light of Associate Editor Linda E. Platts development these approaches, especially by applying realism. Art Director Mandy-Scott Bachelier In our first story, Kenneth Orski and I scrutinize recent events affecting “smart patterns since growth”—those appealing policies that attempt to restore a sense of community, but the passage of Executive Director often at the expense of freedom. Terry L. Anderson Glendening’s smart Senior Fellows The most provocative article in this issue is undoubtedly Mark Sagoff’s analysis Daniel K. Benjamin, David D. Haddock, growth package,” P. J. Hill, Donald R. Leal, of an urban legend—the story that New York City spent $1 billion to pay for “nature’s Gary D. Libecap, Robert E. McCormick, Roger E. Meiners, Andrew P. Morriss, wrote Washington capital” rather than build a water filtration plant. Even though this story first turned up Jane S. Shaw, Randy T. Simmons, Richard L. Stroup, Walter N. Thurman, Post reporter Peter in the prestigious journal Nature, it is far from what is claimed for it. We believe that it’s Bruce Yandle better to know the truth. Director of Programs and Treasurer Whoriskey. Monica Lane Guenther From there, we move to a defense of conservation easements by Jon Christensen Editorial Associate Linda E. Platts and Terry Anderson, and then to a history of the Quincy Library Group. This was a Senior Research Fellow Dominic Parker discussion group that developed spontaneously in northern California, born out of Research Fellows Alison Berry conflict over logging on three national forests. William Varettoni scrutinizes why the Holly L. Fretwell J. Bishop Grewell results have been modest, at best. Office Manager Dianna L. Rienhart Thence to Matthew White’s description of the little-known federal entities called Executive Assistant Michelle L. L. Johnson National Heritage Areas. This is followed by a short recap of Gary Libecap’s paper,“ Res- Administrative Assistants “Smart growth” policies, which became popular nationwide during the 1990s, are cuing Water Markets: Lessons from Owens Valley”—a policy paper that is must reading Jean M. Modesette Sara Kate Volkel regulations designed to reduce suburban sprawl and control growth. They encourage for those trying to advance water trades. Conference Coordinator Colleen Lane people to live close together within walking distance of shops and offices. One goal is to reduce “Greener Pastures” features a tantalizing invention that could make hydro power KCI Coordinator the use of the automobile; another is to create neighborhoods full of interesting “streetscapes”; and Carol Ferrie more benign, along with a clever way to attract donations to fund research. Daniel Ben- a third is to cluster people in high densities in order to preserve large areas of open space. Today, smart jamin, who has been studying the history of the Royal Navy in the United Kingdom, Board of Directors growth policies seem to be in retreat. Setbacks have occurred in Maryland, Virginia, and Oregon, and new Thomas J. Bray, Chairman, The Detroit News will be back in our next issue with his “Tangents” column. We have some impressive David R. Atkinson, Atkinson & Co. census information suggests that the public does not really embrace the smart growth way of life. Thomas E. Beach, Beach Investment Counsel Inc. letters and we conclude with Terry Anderson’s new “On Target” column. Enjoy! David G. Cameron, Dana Ranch Co. Inc. Tyler Dann, Wesfair Agency Inc. Kimberly O. Dennis, D & D Foundation Maryland: No Dent in Land-use Patterns William A. Dunn, Dunn Capital Management Inc. Joseph N. Ignat, Blackburn Consultants LLC. S One sign of smart growth’s weakness comes from Maryland, where former Governor Paris N. Glenden- Paul J. Ingrassia, Dow Jones Newswires Frank-Paul King, King/Strategic ing unveiled a statewide policy in 1997 to manage growth. The idea was to restrict the use of public funds for Dwight E. Lee, Upland Associates LLC development to areas where public infrastructure was already being supplied. Counties were to submit plans Andrew S. Martzloff, Bitterroot Capital Advisors LLC E. Wayne Nordberg, Hollow Brook Associates LLC to the state showing where they wanted growth to occur. These “priority funding areas” would be eligible for George F. Ohrstrom, The Ohrstrom Foundation Inc. Leigh Perkins, The Orvis Company state infrastructure financial assistance, but projects outside these areas would not. John F. Tomlin, Conservation Forestry LLC Honorary Director The policy was hailed as a milestone. But as Peter Whoriskey reported last fall in a series of articles in the Vernon L. Smith, ICES, George Mason University Washington Post, Glendening’s initiative has yet to make a significant dent in Maryland’s sprawling land-use patterns. “A review of key state and local planning records shows no significant shifts in Maryland’s development Cover image and p. 2: patterns since the passage of Glendening’s smart growth package,” wrote Whoriskey (2004, A01). “Growth still Robert McIntosh (1970) Walk to the Village. From left: Orski, Sagoff, Christensen, Varettoni, and White ©/CORBIS takes place where there was nothing, rather than where it has gone before.” Although he did not have recent fig- PERC Reports 2 June 2005 PERC Reports 3 June 2005 ures, Whoriskey noted that in 2001, 75 percent of the The state could communities in the eastern portion of the county. ida, Texas, Louisiana, and Mississippi—passed prop- “Micropolitan families that are already there to have more children land consumed by home building in Maryland was refuse to fund the But critics charged that these policies were noth- erty-rights laws to protect landowners from monetary areas” lack the large (see Brooks 2004). taken from pastures, woods, and other parcels outside necessary public ing more than exclusionary policies masquerading losses caused by restrictive zoning. But none of these central city of over Indeed, Portland, Oregon, the city lionized the smart-growth areas—almost the same percentage as open space protection. They sheltered wealthy measures has had the political and psychological impact by smart growthers, is remarkable for its lack of infrastructure, but 50,000 residents as before the program began, according to Maryland landowners and their pastoral estates from encroach- of the Oregon initiative. The Seattle Times thought Mea- children, the New York Times reported in March. Department of Planning records. could not veto ing suburbanization. Other critics pointed out that sure 37 “may have mortally wounded Oregon’s strong that is a criterion “Officials say that the very things that attract people One possible reason for the failure of Glenden- a project. Large the new zoning rules would not prevent sprawl; they land use planning system” (Nov. 24, 2004). Others for a standard who revitalize a city—dense vertical housing, fash- ing’s smart growth policy was that it lacked teeth. developers and would simply spread it over a larger area. considered it as a public repudiation of the principle of metropolitan area, ionable restaurants and shops and mass transit that The state could refuse to fund the necessary public retail giants such A new board elected in 2003 dismantled many growth management, a policy that Oregon pioneered but they are “too makes a car unnecessary—are driving out children infrastructure, but could not veto a project. Large of the growth curbs but left the restrictive zoning 30 years ago. Smart growth advocates fear that the new by making the neighborhoods too expensive for as Wal-Mart built urban to be rural.” developers and retail giants such as Wal-Mart built law, which faced numerous legal challenges filed law will strengthen the property rights movement. “If it young families.” Other smart growth meccas—San anyway, financing the necessary roads and sewers anyway, financing by aggrieved property owners. On March 3, 2005, can happen in the progressive state of Oregon, it could They are a new Francisco, Boston, Seattle—share the same prob- themselves. Local officials refused to stand in the way the necessary Virginia’s highest court declared the 2003 zoning happen in any number of other states,” one planning form of quasi- lem: not enough children “to keep schools running (Orski 2000). roads and sewers law invalid. The court did not rule on the issue of official remarked (Orski 2005). urban settlement— and parks alive with young voices” (Egan 2005, In addition, some local officials viewed Glenden- themselves. Local property rights, but on procedural grounds. Loudoun And sure enough, there are signs that the prop- free-standing, A1). ing’s efforts as too much state intrusion and so they officials, said the court, had not given proper public erty rights revolt is spreading.