September 2002

T G R R O A W M T AMERICA S H

V OLUME 1 IS SUE 2

Business Councils Promote

SMART GROWTH FOR A STRONG ECONOMY Smart Growth as

BY DON CHEN Smart Business Four case studies: he growth beat’s been a tough gig lately, services for homeless families. David Goldberg Atlanta, Denver, Chicago, Silicon Valley especially with shrunken stock values, profiles SVMG and three other business-led smart T BY DAVID GOLDBERG shriveled government budgets, and a diminished growth initiatives in his article. transportation trust fund weighing heavily on peo- Such business leadership reflects the enlight- ou could almost see it, the moment the light ples’ minds. But we’re bullish on smart growth. In ened outlook adopted by many in the real estate Y bulb went on for business leaders in metro fact, it embodies some of the best ideas for bring- industry. One leading industry report, Emerging Atlanta. It was early 1998, roughly 18 months ing our stalled economy back to life. Trends in Real Estate Development, sized up the after the city had played host to the world, but For starters, even in recession, growing num- post-September 11th landscape and cautioned already Atlanta was losing its Olympic luster. bers of business leaders are pushing for smart investors against backing sprawl development, Suddenly, business travelers from the economic growth reforms, focusing on affordable housing, contending that “... properties in better-planned, powerhouse of the South were hearing associates workforce development, environmental protec- growth-constrained markets hold value better in from other locales referring to their home town tion, and easing traffic. For example, the Silicon downmarkets and appreciate more in upcycles.” as the “L.A. of the South” or “poster child for Valley Manufacturing Group (SVMG) has been a Projections of consumer demand indicate a suburban sprawl”. strong supporter of affordable housing efforts in sharply growing preference for compact, walka- The sudden, negative scrutiny arrived on the California’s Santa Clara County. As of March, they ble neighborhoods over the next decade, largely heels of Atlanta’s collision with the national Clean had endorsed plans to build over 31,000 for-sale because of baby boomer homebuyers who will Air Act. Because the region’s road-heavy trans- and rental homes that are located in relatively dominate the real estate market. According to a portation plans failed to stay within the emissions compact, walkable and transit-rich neighbor- recent University of Southern California study limits set by the state’s own plan for cleaning up hoods, and are primarily intended for lower-wage sponsored by the Fannie Mae Foundation and smog, metro Atlanta was barred by law from workers. They also have spearheaded efforts to Bank of America, between 31 and 54 percent of spending federal money to expand road capacity in create a private-public affordable housing trust older Americans will demand New Urban-style the 13 counties suffering from bad summertime air. fund, increased public transit investment, and neighborhoods in the 2000s, up substantially from Sam Williams, the president of the Metro 15 percent in the 1990s. Atlanta Chamber of Commerce, called it a “train Public officials are turning to smart growth as wreck”. He wasn’t alone in his concern. With the well, especially fiscally responsible infrastructure growth machine threatening to grind to a halt, policies that support investment in existing com- even the region’s most ardent cheerleaders began munities over subsidizing new development. This to wonder whether Atlanta’s famous growth-at- is the hallmark of many smart growth policies, as any-cost approach was coming at too high a price. exemplified by Maryland’s Priority Funding Areas Since that time, the issues around managing program, New Jersey’s Fix-It-First transportation Atlanta’s growth — whether transportation, policy and countless local measures requiring water quality and supply, air pollution or work- adequate public facilities. As pre-recession projec- force housing — have occupied the very top of tions of surpluses give way to budget cuts, cities the business leadership’s agenda. Those leaders’ are looking for more efficient ways to meet cur- advocacy for smart growth has led to the creation rent demands, accommodate new growth and of a regional transit agency with some land use, as expand their tax base without having to build well the establishment of a new structure for expensive new infrastructure or raise taxes. In planning and managing north Georgia’s water isis stillstill relevantrelevant Smart growth resources. during an “economic downturn.” CONTINUED ON PAGE 6>

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I N T HIS I SSUE Labor Page 3 Field Notes Page 7 Brain Food Page 11 Smart Tools Page 9 Unions locally and nationally Smart Growth news from around “Solving Sprawl” lauds smart Community banks turn your deposits recognize that sprawl harms union the country. What’s happening in development, leaves hyperbole into revitalized neighborhoods. members. your back yard? at the door. 1 Smart Growth is Becoming We finished the day by mapping the voting records of state legislators and members of SMART GROWTH PRIORITIES ADVANCE: THE FARM BILL, HOUSING AND MORE Congress, based on non-partisan ratings by the a AFL-CIO Committee on Political Education. The Union Thing. maps clearly show that elected officials from BY KATE BICKNELL Chicago and its inner-ring suburbs to the south BY GREG LEROY and southwest vote far more often for working very five years or so, Congress reauthorizes a farm bill that determines America has joined the Alliance for a New Transportation Charter, a broad- families than those everywhere else. how billions of dollars will be spent on commodities (primarily grains E based coalition organized by the Surface Transportation Policy Project Soon after the Chicago conference, the CFL and cotton), conservation, nutrition assistance (such as food stamps), rural ew union leaders are aware of sprawl The sessions pointed out how workers in sev- (STPP) that is working to make transportation investments serve communi- executive board authorized Turner to represent development, forestry and other programs that profoundly affect the pattern eral industries are affected by Chicago’s sprawl: ties better. Launched in December, 2001 with over 300 endorsements, the by its name. But unions locally and the federation’s interests on smart growth. of land use in the United States. F New Transportation Charter recognizes that transportation is a tool for HOSPITALITY: Good Jobs First mapped Together with the Contra Costa County Central Federal farm subsidies reach only about 40 percent of farms. While farm- nationally are beginning to recognize that achieving better outcomes in public health, affordable housing, access to unionized hotels and hotel jobs. The Hotel Labor Council and the Cleveland Federation of land production has more than doubled over the past fifty years, the number jobs, energy efficiency and livability. In addition to this effort, Smart Growth because sprawl harms cities, it also harms Employees and Restaurant Employees Labor, Chicago submitted a smart growth resolu- of farms has declined by more than two-thirds. Economic challenges, cou- America’s coalition is developing a number of proposals to better integrate union members. International Union (HERE) has only three con- tion that was adopted at the national AFL-CIO’s pled with growing development pressures, have resulted in the loss of much transportation and land use. tracts outside of centrally located Cook County. December 2001 convention. Since then, similarly- of our highest quality farmland to . (see the American Farmland Anti-sprawl resolutions have recently been Meanwhile, the Bush Administration and Congress are working to devel- This is a typical pattern for HERE, which has suf- worded resolutions have been passed by the Trust’s research at http://farmland.org.) adopted by the national AFL-CIO, by one of its op their proposals for the bill’s reauthorization. The Administration’s pro- fered due to the growth of “edge cities” and Pennsylvania AFL-CIO and by the national con- Efforts to preserve farmland and restore forests and wetlands at the urban largest affiliates, and by a state labor federation. posal is likely to be sent to Congress for consideration in January of 2003, their companion hotels. vention of the 1.4 million-member American fringe rely heavily on federal support, which has been woefully underfunded. with final passage expected next fall. One union — the 1.4 million-member United HEALTH CARE: A map of hospital closures Federation of State, County and Municipal In fiscal 2001, only 16 percent of farmers’ requests from USDA conservation For more information on the Alliance for the New Transportation Charter: www.antc.net; on the Food and Commercial Workers Union (UFCW) since 1972 shows they are completely concen- Employees (AFSCME), one of the AFL-CIO’s programs were granted. reauthorization of TEA-21: www.antc.net and www.tea3.org — knows the sprawl issue because of its long trated in Chicago and in immediately-adjacent most politically active unions. Many legislators had hoped this year’s bill would result in a more equitable antagonism with virulently anti-union Wal-Mart. Planning parts of Cook County. Seven of the 27 closed In popular communications terms, sprawl is distribution of farming assistance and significantly increased conservation And a few unions that represent public transit Senate bill 975, also known as the Community Character Act, would facilities were unionized, affecting four different both “hard” (i.e., abstract) and “cool” (i.e., not funding. One House version would have tripled funds for agricultural conser- workers, especially the Amalgamated Transit authorize $25 million per year for five years to assist states in reforming unions. Both health care jobs and access to care easily approached). Focusing on specific compa- vation and environmental protection. Though it lost, the momentum gener- Union, have long advocated for transit service. outdated state planning statutes and to improve state and regional planning. are being driven away from the core. nies and jobs, we can overcome these barriers. ated by the Kind-Boehlert-Gilchrest-Dingell carried over to the Senate, But the labor movement is a complex amalgam, Smart Growth America supports the bill (Executive Director Don Chen tes- When we name names and demonstrate specific which approved increased funding for and most labor leaders do not (yet) see their self- PUBLIC EMPLOYEES: According to tified in favor of the bill in March). In April, the Environment and Public harms, we make sprawl issues tangible and conservation. On May 13, President interest in smart growth – even though America’s research by Myron Orfield, union members live Works committee approved the bill, sending it to the full Senate for consid- engaging so that remedies become more enticing. Bush signed a six-year, $180 billion farm 16 million unionists are heavily concentrated in in areas that are disproportionately low in taxing eration. It is now up to the Senate Majority leader to decide if and when the The smart growth movement needs the diver- bill that included $9.2 billion in new urban areas. capacity. Union households have to pay higher bill will be considered on the Senate floor. In the meantime, Rep. Earl sity unions can bring to the table. Not just their funding for conservation. Though the Don Turner, president of the 500,000-member property taxes just to keep basic services. Blumenauer (D-OR) is working to build support for the Community racial diversity, but also their occupational, geo- bill allocates a smaller percentage of Chicago Federation of Labor, is an exception. He Character Act in the House. PUBLIC TRANSIT: We charted commuting graphic and ideological diversity. The organizing agriculture spending to conservation believes that sprawl will be the dominant issue for In the House, meanwhile, the Judiciary Committee’s subcommittee on data and noted that more people are driving discipline needed to recruit union members is a programs than the 1996 bill, the overall urban America for the next 20 years. He joined the Constitution became the scene of a smear campaign aimed at the alone instead of car-pooling or using rail or bus, map for the smart growth movement to build a dollar amount dedicated to conserva- the board of directors of Chicago Metropolis American Planning Association’s publication, “Growing Smart.” The guide- lengthening commute times and harming air qual- winning coalition. On May 13, President Bush signed a six-year, tion efforts is substantially higher. 2020, a business-civic association formed to pro- book is the product of a seven-year effort led by the APA to provide state ity. We made it clear that this is caused by $180 billion farm bill that included mote smart growth policies (see article, page For more information: and local lawmakers a compendium of options for reforming the planning sprawling job growth off the transit grid rather Greg LeRoy directs Good Jobs First, www.goodjobsfirst.org, a $9.2 billion in new funding for conservation. XX), and prevailed upon it to pay for the devel- www.smartgrowthamerica.org/farmbill.html statutes that codify and promote sprawl. At a March hearing, three witness- than by commuter choice; a Chicago-area poll resource center promoting accountability in economic opment and delivery of a curriculum about sprawl Housing es were invited to testify against the publication, and one witness was invit- found that more than a third of commuters who development. and unions. As the push for a National Affordable Housing Trust Fund gains steam, ed to defend it. The witnesses against “Growing Smart”, representatives of drive to work would switch to transit if they had The curriculum, created by Good Jobs First and some in the House are trying to use the bill creating it as a vehicle to weak- fringe property-rights groups, mischaracterized the publication as the “fed- a choice. We also explained how declining air entitled “Smart Growth, Good Jobs,” drew 107 Smart Growth is on the move en protections for the environment and workers. The National Association eralization of land use decisions.” The same organizations have attacked the quality threatens manufacturing jobs, since the local union leaders for an all-day conference in in Chicago, where the of Home Builders has lobbied for something called Title VIII – Housing Community Character Act, in both cases distorting the truth to claim that Chicago region has been designated a severe April, 2000; attendees spanned the CFL’s entire Chicago Federation of Labor Impact Analysis. The title would require all federal agencies to perform a voluntary provisions were somehow a mandate. “non-attainment zone” by the U.S. membership. The gathering, the first of its kind, is making it an issue. “housing impact analysis” prior to promulgating any rule to determine “the For more information on the Community Character Act, go to www.planning.org Environmental Protection Agency. served to demonstrate sprawl’s specific harms extent to which the rule would increase the cost or reduce the supply of Brownfields Update and smart growth’s potential benefits and to help housing or land for residential development.” Although the country has a On January 11th 2002, President Bush signed into law the Small Business build an informed policy consensus among CFL severe affordable housing crisis, Smart Growth America’s coalition believes Liability Relief and Brownfields Revitalization Act, marking one of the first leaders. Besides union-specific issues, it covered that this title – despite its name — would do nothing to make housing more major federal legislative victories for smart growth. The bill authorized $200 public opinion, development subsidies, regional affordable for low-income families, and instead, would interfere with fair million per year for the assessment and cleanup of brownfield sites, and will governance and smart growth policies. Readers housing, environmental, labor and other safeguards. provide liability relief for certain small businesses, prospective purchasers, can get a summary of the curriculum’s main For more, including both our letter in opposition and our own proposals to promote affordable contiguous property owners, and innocent landowners — one of the major points in a Sprawl Watch Clearinghouse mono- housing, visit: www.smartgrowthamerica.org/. barriers to brownfields redevelopment. In addition, the bill allows funds to graph entitled, “Talking to Union Leaders About Tr a n sportation be used for the clean-up of sites that will be used for parks and other com- Smart Growth” at In the past year, House and Senate committees have held a number of munity resources. www.goodjobsfirst.org/pdf/talking.pdf. hearings on topics relating to the reauthorization of the Transportation For more information: www.smartgrowthamerica.org/brownfields.html or www.brownfields.com Equity Act for the 21st Century (TEA-21). In anticipation, Smart Growth

Smart Growth America 2 SEPTEMBER 2002 S EPTEMBER 2002 3 Smart Growth America R T G A R O M W S T H more of their time, either as loaners from their The 25-year-old Colorado Forum first took up “I can’t think of another issue that has made companies or semi-retirees. the smart-growth cause about four years ago, me so sad as this one,” Klapper says. Learning “We’re not a watchdog group,” says Frank according to Gail Klapper, the organization’s from that experience, the Forum and its allies are Beal, executive director of Metropolis 2020. His director. With Denver and the Front Range of the concentrating now on building relationships with organization sees its job as advocating for nothing Rockies sprawling at an accelerating clip, the local governments as they try to win them over less than structural reform of the agencies and group’s members decided to educate themselves to smart-growth policies, Klapper says. And in processes that govern regional decision-making, on how development rules encouraged “leapfrog the legislature, they are working to support whether it’s transportation planning, tax policy, development”, and how that in turn contributed scaled-down measures that seek to implement school location or zoning practices. “Watchdog to the congestion, environmental degradation and growth management a piece at a time. groups watch public agencies and nip at their loss of community character the state was begin- Smart Growth as heels to get them to do a better job at what ning to experience, Klapper said. They also exam- The Regional Business Coalition of they’re already doing. Our position is that they ined how the state’s tax structure encourages Metropolitan Atlanta Smart Business have to be redesigned to do better things.” communities to zone out residential development hambers of commerce exist to promote > CONTINUED FROM PAGE 1 But the private sector has its own changing to and open the door wide to commercial, often C economic development. Because economic do, the organization acknowledges. That’s why it with little attention to quality or likely longevity. development for the last 50 years has tended to Atlanta, though, is just one of several regions took the lead in persuading more than 100 Chicago Colorado After getting up to speed on the issues, Forum look like sprawl in most American communities, around the country where business leaders have Chicago area business leaders to sign onto the members initially intended to play a supporting it’s no surprise that many chambers have been begun to argue that smart growth is smart busi- “Metropolis Principles,” a pledge to favor sites role as consensus-builders for initiatives promised reluctant to challenge that pattern. ness. While Atlanta’s business leadership with access to affordable housing and mass transit by the governor and legislature. But when those That makes the achievement of the Regional responded to a particular crisis, private sector in locating their operations. It’s a unique depar- efforts failed to materialize two years ago, disillu- Business Coalition all the more remarkable. The efforts have been evolving toward smart growth ture from the prevalent practice of siting new sioned environmentalists offered a statewide bal- RBC is an alliance of chambers in 13 metro for many years in some regions. In northern offices based on the proximity of executive hous- lot measure that would have amended the state Atlanta counties — the same territory officially in California, the Silicon Valley Manufacturers Group ing or low-cost land, however far from where constitution to require local governments to violation of smog standards — that attempt to has monitored quality of life issues in that fast- most workers live. restrict development. The proposal so incensed work from a common agenda on regional issues, growing region since 1977. Chicago’s business The business community, as large and diverse the state’s builders and developers that they from transportation to water and air. Despite the community took the lead in city planning over at is, is by no means unanimous on these issues. raised $6 million, the most ever for a ballot meas- widely ranging levels of development among the 100 years ago by helping to manifest the famed But the consensus in favor of better-managing ure, to defeat the initiative. jurisdictions, the group has managed to achieve Burnham plan, and now has re-emerged with a Chicago’s growth and public investments to Despite that polarizing experience, Forum- consensus in favor of smart growth policies. smart-growth effort dubbed Metropolis 2020. ensure a high quality of life well into the future is sponsored polling showed that growth issues The RBC’s first big mission was to work on the But in some places, such as Denver, even a fully a strong one, says Beal. continued to dominate residents’ concerns. So linked issues of transportation and air quality. engaged business leadership has found success To learn more, see: http://www.chicagometropolis2020.org the group stepped into the breach, and decided With the Metro Atlanta Chamber of Commerce elusive, at least when their goal was to pass com- to offer its own compromise legislation. The – the “downtown” Atlanta chamber that has led prehensive growth management legislation. Silicon Valley Manufacturing Group Forum cobbled together an uneasy coalition of the way on smart growth issues — the RBC co- Below, we take a closer look at efforts in each of or the Silicon Valley Manufacturing Group, Silicon Valley Atlanta environmentalists, agriculture interests, progres- sponsored the Metropolitan Atlanta the four regions mentioned above. F smart growth is less a question of civic sive developers, regional planners, local officials Transportation Initiative, an intensive six-month engagement than a matter of survival. and others. It was a contentious process, but in seminar for business and civic leaders on the The SVMG got its start back in 1977 – well recruit and keep good employees we have to began operating in August, 2001, has three com- the end they had “something that nobody loved issues. Out of that effort came a recommenda- Chicago Metropolis 2020 have affordable housing close to jobs, and to ponents: down-payment assistance to first-time ake no little plans,” Daniel Burnham before the terms “personal computer”, “Internet but everybody could live with,” Klapper says. “It tion to create a regional transportation agency, make sure that people don’t spend all their time homebuyers; “gap” financing to help non-profits “ admonished his fellow Chicagoans in 1909. “ and “smart growth” had acquired their current would have made a huge difference in how we for which the business coalition then lobbied suc- M in cars.” build and sell housing for below market rates; and His message was particularly directed at the key ubiquity. That’s when Hewlett-Packard CEO grow.” cessfully. The group has identified its five core issues as grants to provide more-stable housing for the business leaders of the Commercial Club of David Packard brought together a handful of his The bill required local governments to plan for On an ongoing basis, the RBC helps support “affordable housing, comprehensive transporta- homeless or near homeless. The SVMG is work- Chicago, who had commissioned the well-known fellow business leaders in California’s Silicon growth “in concentric circles, rather than jumping the Regional Leadership Institute, which works tion, reliable energy, quality education and a sus- ing to create similar funds in other counties. architect’s Plan of Chicago. They listened then, Valley to address their common concerns, from out,” says George Beardsley, a developer and to educate government, business and civic lead- tainable environment.” On transportation, the SVMG campaigned and by all appearances, they’re still listening. road capacity to education to government red member of the Forum. It gave the plans some ers on multi-jurisdictional issues from air and On housing, the SVMG has gone to bat before along with other business groups for a In 1996, the Commercial Club convened more tape. teeth, and included a process for resolving dis- water quality to transportation and affordable local governments to help developers of lower- November, 2000, referendum that exclusively than 200 of its members to begin an investigation Today, 25 years later, the group represents 190 putes over land use decisions. It called for trans- housing. With the regional planning agency and cost, for-sale and rental housing get the necessary funds transit in Santa Clara County. It passed with into challenges facing the Chicago region, issues of Silicon Valley’s largest employers, whose portation and open space planning to be done at others, the group cosponsors a two-year-old zoning. The group put together a diverse coali- 71 percent of the vote. defined in part as “unlimited, low density sprawl; 275,000 workers account for about one in four a regional level. effort to honor “developments of regional excel- tion of interests – from religious and civic leaders “It’s all about quality of life,” says Stuchinsky. concentration of poor minorities; the spatial mis- local jobs. Although those high-tech companies Meanwhile, the developers’ group that had lence,” projects that were carefully designed to to home and apartment builders – to evaluate “In Silicon Valley right now, that’s probably the match between jobs, affordable housing and highly value proximity to one another, Valley coalesced to oppose the ballot measure offered address a range of quality-of-life issues, such as and endorse projects that are higher density, Number One business issue.” transportation; and disparate degrees of access to industries are not clustered in traditional central their own growth management bill, which pedestrian accessibility, traffic mitigation and located near transit, within walking distance of To learn more, see: http://SVMG.org quality education.” Their work product emerged business districts, but spread out along highways Klapper termed “more than a step backward.” greenspace. The RBC’s educational efforts also other services and have an affordable component. in 1999 as Metropolis 2020, an ambitious docu- that are famously overburdened. They provide The House and Senate, controlled by separate have helped to temper the growth-at-any-cost As of March, 2002, the coalition had given a The Colorado Forum ment that seeks to provide a unified vision for a enough well-paying jobs that the median house parties, feuded over the bills. After hours and mentality of some local chambers of commerce. thumbs up to 112 developments in 17 cities, rep- hen a group like the Colorado Forum, 60 six-county region more vast than even Burnham price in the region’s core is $400,000, but still hours of fractious debate and lobbying, Klapper “As long as we keep the ‘growth’ in smart resenting 31,081 homes. of the state’s hardest-driving CEOs, foresaw. only about 16 percent of the area’s households W says, “The session ended with nothing, and the growth, the business community will be happy,” The SVMG also played an active role in estab- achieves consensus on something as complex and Rather than stick the plan on the shelf, the can afford to purchase a home there. By one esti- governor only offered a weak measure during a says Eric Meyer, the RBC’s executive director. lishing a public-private, affordable-housing trust contentious as comprehensive growth-manage- business group created an independent, nonprofit mate, the area would need about 83,000 housing special session. The few bills they passed meant To learn more, see: http://www.rbcatlanta.org/ fund for Santa Clara county that has raised more ment legislation, you might figure that actually organization of the same name to push local and units just to meet current demand. nothing. than $20 million in donations from companies, passing the law would be the easy part. But not so. regional entities to implement it. The group “The companies are having a harder and hard- foundations and governments. The fund, which operates with seven professional planners and er time recruiting employees,” says Laura policy analysts, four support staff, and five volun- Stuchinsky, the SVMG’s director for transporta- teer senior executives, who donate 50 percent or tion and land use. “Our businesses realize that to

Smart Growth America 4 SEPTEMBER 2002 S EPTEMBER 2002 5 Smart Growth America Light rail in Colorado SMART GROWTH FOR A STRONG ECONOMY

> CONTINUED FROM PAGE 1 such places, infill and transit-oriented develop- The Brownfields Act also offers communities a As pre-recession projections of surpluses give way to ment projects are emerging as solutions that can key tool for avoiding harmful sprawl. In his sign- budget cuts, cities are looking for deliver such gains without as much pain. Infill ing ceremony speech, President Bush argued more efficient ways to meet current demands. NEWS FROM YOUR BACK YARD Transit Ridership Still Rising development projects tend to require only a that “every acre of brownfield that is redevel- Newly released figures show that growth in small fraction of the infrastructure that compara- oped saves 4.5 acres of open space.” Such sup- supporters, with 77 percent of African-Americans BY JOHN BAILEY transit ridership has exceeded the growth in driv- ble new greenfield development would require, port for land preservation continues to gain pop- and 74 percent of Latinos voting “yes”, and 75 ing for five years in a row. Statistics just released while at the same time generating less traffic and ularity. For example, 137 open space ballot initia- percent of voters earning less than $20,000 from the American Public Transportation air pollution. Such savings are supplemented by tives were approved by voters in November approving the measure. school diploma or less were the strongest sup- Association show that transit use grew by 21 economic development benefits. The Great 2001, a success rate of 70 percent. And in The Return of Governor Smart So instead of letting the recession extinguish porters at 61 percent, more than any other edu- percent over the last five years, as more American Station Foundation, for example, March, California voters overwhelmingly passed Growth? the debate about growth, many communities are cation level. The rhetoric that smart growth only Americans boarded buses and trains. Many of the recently analyzed the economic impacts of Proposition 40, a $2.6 billion measure to pre- In a surprise move July 5, taking advantage of today’s conditions to gain an appeals to white, middle-class voters is, well, just systems experiencing dramatic increases are in development around rail stations, and estimated serve open space, improve parks, and protect air Georgia Governor Roy Barnes upper hand over sprawl. They’re investing in sen- rhetoric. places better known for their reliance on auto- dramatic boosts in employment, increased and water quality — the largest natural resource acted to delay construction of the sible economic development, preparing for future mobiles. Orange County, California’s buses were household income, strengthened property values bond ever passed by American voters. It enjoyed highly controversial Northern Arc Portland Integrates the ‘Burbs growth, and properly accounting for and deploy- almost 10 percent busier in 2001 than in 2000. and healthier property tax revenues. broad support, with endorsements from the Los highway project, which would Defying the trends in most other metro ing the scarce resources they possess. When Denver’s expanding light rail lines drew 36 per- At the federal level, infill reinvestment efforts Angeles Metropolitan Churches, the Latino have cut a 59-mile swath through regions, Portland, Oregon and its suburbs rapid growth returns, they’ll be ready. cent more trips than a year earlier. Atlanta’s northern suburbs. Reacting to a steady became more economically integrated during the got a major boost in January with the enactment Issues Forum, the Nature Conservancy, the Trust To learn more, visit the website of the Surface Transportation stream of news reports of conflicts of interest 1990s, according to new census figures. Not only of the $1.2 billion Small Business Liability Relief for Public Land and other Policy Project, http://www.transact.org. and Brownfields Revitalization Act, which passed influential organizations. surrounding the $2.2 billion tollway, Barnes are poor families less concentrated in the city of unanimously in both the House and Senate. The People of color and low- derailed the project from its fast-track status until Portland and more likely to live in the suburbs, Taking Takings Back to City Hall new law will help states clean up contaminated income voters were the after the November election, when he hopes he but in general, upper-income, middle-income and Planners and public officials have been busy fig- industrial lands and generate an estimated measure’s strongest will return to pass his promised ethics legislation. working class people are more likely live in inte- uring out how the Supreme Court’s April Lake 550,000 jobs, up to $2.4 billion in new tax rev- Almost a year ago, Barnes himself removed the grated neighborhoods than in separate enclaves. Tahoe decision on “takings” will affect planning enues, and billions more in private investment. It Northern Arc from the deep freeze and made it Much of the credit for the Portland region’s lack and zoning at the state and local levels. In a also protects innocent landowners from potential a top priority, listing it among the wide range of of segregation goes to its far-sighted regional major rebuke to “property-rights” advocates, the liability stemming from previous contamination. transportation projects for which he planned to planning, specifically a Metropolitan Housing rule U.S. Supreme Court ruled against landowners sell $8.6 billion in bonds. The support for such a that requires every suburban city and county to who claimed development restrictions amounted “sprawlway” alarmed smart growth advocates, zone for multi-family dwellings. to a taking of property for which they were owed money. Unfortunately, the threat of addi- coming as it did from a governor who previously Look for the Smart Growth Label tional takings legislation is still very, especially at had championed responsible planning.With all of In an effort to gain stakeholder buy-in, while the local level. In Nevada, for example, the his potential Republican opponents vowing to kill working to keep the “smart” in smart-growth “Property Owner Claims Reimbursement the project, the taint of scandal ultimately led the projects, the Washington, D.C.-based Smart Process Initiative” will appear on the November governor to distance himself. It remains to be Growth Alliance – a coalition of developer, busi- election ballot. It would require the county to seen whether the governor will resume his sup- ness and environmental organizations — has Now may be the perfect time pay property owners for land use regulations that port in the event that he wins both re-election developed a Smart Growth Recognition toto cultivatecultivate policiespolicies thatthat supportsupport diminish the value of their property and allow and the promised ethics law. Program. For a project to be recognized, it must property owners to skip lower court review and robustrobust growthgrowth thatthat contributescontributes toto aa satisfy five criteria: it must be located in an area Different Shades of Green take their claim directly to the state Supreme designated and appropriate for growth; it should high quality of life for everyone. California voters this spring overwhelmingly Court. approved Proposition 40, the California Clean have a mix of uses designed to mesh with exist- To learn more, visit the website of the Community Rights Air, Clean Water, Safe Neighborhood Parks, and ing neighborhood; it’s location and design should Counsel at http://www.communityrights.org Coastal Protection Act of 2002. The $2.6 billion offer alternatives to single-occupancy-vehicle measure is one of the largest park bonds in trips; it should protect natural resources; and Smart Growth in the Central Valley American history. Just as interesting as the fact generate benefits for the host community, such The Sacramento Area Council of Governments that the measure passed in difficult economic as affordable housing, historic preservation, in California has approved a $500 million pro- times is who voted for it. African-American and access to parks or open space, etc. gram to financially reward local governments for Latino voters supported Prop 40 with the highest To learn more about the Smart Growth Alliance and its making more efficient use of their transportation percentage, 77 percent and 74 percent respec- Recognition Program, visit http://washington.uli.org/sga. funding through smart growth. The program, tively, with white voters at the bottom with 56 titled “Community Design Incentives,” is based percent. Also, families with an annual income on a similar program run by the San Francisco below $20,000 supported the bond by a super- Bay Area’s Metropolitan Transportation majority of 75 percent and voters with a high Commission. Additional transportation funding will be available to jurisdictions that promote more compact designs, transit-oriented develop- ment, and walkable communities. To learn more about this program, contact STPP’s Central California Campaign Manager, Trinh Nguyen, at [email protected].

Smart Growth America 6 SEPTEMBER 2002 S EPTEMBER 2002 7 Smart Growth America Economic Development Subsidies: over $800,000 in loans every day, and their over- all return on equity is growing steadily. City First in Washington is typical of a younger generation of community development banks. Another Cause of Sprawl Smart Since it opened in 1998, City First has lent over $25 million in Washington, D.C.’s lower-income BY GREG LEROY neighborhoods and banked more than 1,000 BANKING ON SMART GROWTH depositors, most of whom live within walking dis- n the debate over sprawl and what to tance of the bank’s Columbia Heights headquar- I do about it, smart-growth proponents ters. More than three-quarters of the bank’s BY ELIZABETH HUMPHREY AND ANN SCOFFIER, CITY FIRST BANK lending is to small renovators of apartments, have failed to emphasize a root cause of tools small businesses or non-profits, such as churches dumb growth: corporate relocations to the ver find yourself thinking, as you walk past a great old building, all boarded up, and charter schools — all with revenues under $1 metropolitan fringe. million. E that you would love to have the money to breathe life back into it? Or perhaps Other community development banks are Smart-growth literature is replete with analyses Anoka Industrial Park you’ve gone home after another long day of fighting to change public policy and won- working to support “green” economic develop- of how public goods — roads, sewers, schools — ment. In Maine, the Coastal Enterprise Institute and other forces, such as crime and tax base dis- dered how much money it would take just to go build the stuff right yourself. has developed an array of loan funds that lend to parities, contribute to sprawl. But the literature why the project was not carried out at the old address. Maine’s form only green enterprises, including Maine fisheries and sheds little light on the role of economic develop- requires a “yes” or “no” on relocation. It’s not news that most of us don’t have the Since it opened in 1998, City First Bank has lent farms. Shorebank Corp has also entered the ment subsidies in the geographic dispersion of money to revitalize communities single-handedly. Good Jobs First used early Minnesota data without this relocation infor- green lending arena, partnering with a think tank work in metro areas. But what if the money in your bank account, fully over $25 million. Over three-quarters mation to make a sprawl analysis. We noticed that Anoka, a small suburb on called EcoTrust, to fund models of a conservation In fairness, it’s a difficult issue to study because insured and earning interest, could be helping of the banks’ lending is to small renovators of the northwest fringe of the Twin Cities, reported more than two dozen economy, including non-timber forest products disclosure about subsidies is so poor in most someone renovate multi-family housing, or bring apartments, small businesses or non-profits. deals. Interviews with the city’s development director revealed that the and renewable fisheries. states. But a few studies suggest a very clear link, an urban church back into the city? Thanks to a deals were all located in an industrial park mostly occupied by companies Community development banks and credit and new disclosure rules in a few states are national network of community banks, deposi- with these institutions are insured by the FDIC, the city had recruited from elsewhere in the Twin Cities region. Our result- unions depend on deposits and other private enabling new research. tors’ money is being put to work on just those and they offer fairly competitive rates in their ing study, “Another Way Sprawl Happens,” is the first to make an explicit investments for their loan capital. You can make a Although media reports often emphasize multi- sorts of projects. service areas. As of February this year, there subsidy-sprawl link. http://www.ctj.org/itep/pdf/anoka.pdf difference by moving your bank account to a local state competitions such as Boeing’s recent head- were 59 community development banks and 100 Anoka used tax increment financing (TIF, a property tax diversion device) Consider these clients of City First Bank community development bank, or by investing in quarters move from Seattle to Chicago, most community development credit unions in the to offer free land to companies willing to locate in the 300-acre Anoka in Washington, D.C.: a single Certificate of Deposit. A small percentage corporate relocations occur within the same Enterprise Park. About $12 million in such subsidies was granted to 29 country. u Greg Maison buys, rehabilitates, and rents of your financial portfolio can still make a differ- metro region. Companies need to retain their companies, mostly light manufacturers with about 1,600 workers, relocat- Shorebank Corp in Chicago is probably the affordable multi-family housing in Northeast ence. Investing a little money in a community skilled workforces, and proximity to customers ing from Minneapolis and other cities in the metro area. The subsidy was so best known CDFI, in part because of its longevity. and Southeast D.C. His trademark projects development bank may not be quite as satisfying and suppliers. But there is precious little data on lucrative, Anoka had the luxury of screening out five of every six applicant In 1973, four committed, civic-minded investors involve the consolidation of smaller apartments as renovating a great old building with your own this. A little-known Ohio state database main- companies. bought the failing South Shore Bank to keep it into larger units, suitable for families with chil- hands, but it’s not a bad way to change the world tained by the state’s commerce department Anoka gained some diversity in its employer and tax base, but from a from moving out of the neighborhood. As the dren who use Section 8 rental vouchers. while you wait for the lottery to come through. tracks companies that migrate into enterprise regional perspective, the subsidized relocations had many adverse impacts. south side of Chicago underwent racial change, u For a complete listing of certified Community zones, both intrastate and interstate. In 1998, Bethel Christian Fellowship was established in mainstream banks reacted with redlining. In con- Fifteen companies moved away from Minneapolis or one of six low tax- Development Financial Institutions by state or by jobs moving within the state exceeded those Prince George’s County, Maryland in 1996, trast, the new bank sought out low-income and capacity suburbs. Altogether, 26 of the 29 companies originally had been type, visit the U.S. Treasury’s CDFI site at crossing state lines 20 to 1. serving a congregation of over 200 members. minority borrowers who wanted to invest in located within the urban core area or closer to it than Anoka. More than 70 www.cdfifund.gov. The Ohio data is backed by a small number of When Bethel sought to acquire a permanent maintaining and rebuilding their properties in the percent of the jobs had been transit-accessible before the relocations; now For more information on City First Bank’s studies and news media reports. A study of loan home, the pastor and congregants decided to neighborhood. none of them are accessible. activities and investments, go to guarantees made by the Small Business renovate a church in the Old Anacostia Main Twenty-eight years later, Shorebank Corp is a To prevent such deals in the future, we suggested state or regional rules www.cityfirstbank.com. Administration in the Chicago area found that Street Historic District, creating a cultural small empire, with several bank branches in to make development subsidies such as TIF “location-efficient.” That is, no Shorebank Enterprise Pacific is at higher-income and outlying zip codes received anchor in the neighborhood’s revitalization Chicago and Detroit, a minority venture capital more subsidies unless the project sites are within a quarter-mile of fre- www.sbpac.org. The site includes a definition of more loans than lower income and closer-in efforts. fund, a real estate investment fund and affiliates in quently-served public transportation routes. Besides steering more jobs to the conservation economy and information on areas. And a 1995 Kansas City Star series on City First Bank is one of 553 certified Cleveland, Michigan’s Upper Peninsula, and the the transit grid, such a policy would help generate more political support in how to invest with them. sprawl cited several prosperous suburbs providing the suburbs for transit. Community Development Financial Institutions in Pacific Northwest. They have over $1.3 billion in tax breaks to companies moving from depressed Since our study, three other groups have published similar findings. In its the country. All CDFIs, as they’re known, are pri- assets and $900 million on deposit, they make areas in the urban core. 2000 “Sprawl Costs Us All” report, the Sierra Club added a new section on vate-sector organizations with a primary mission of promoting community development, principal- New State Disclosure Laws: Data development subsidies given to Merrill Lynch chewing up New Jersey farm- land. The Environmental Law Institute issued an analysis of subsidies in ly serving low-income neighborhoods and individ- Breakthrough Northern Virginia that called for land-use impact data in the future. And the uals who have been considered “unbankable” by Two states - Minnesota and Maine - have enact- conventional financial institutions. Forest Conservation Council and Friends of the Earth analyzed Small Pastor Miles of the Bethel ed comprehensive subsidy disclosure laws that There are several different types of CDFI Business Administration (SBA) loan guarantees in the Washington, DC met- Christian Fellowship provide data when a subsidy is provided to a ropolitan area. They concluded that a large share of the $391 million banks working in urban and rural areas to fill company that is moving. The Minnesota disclo- backed fast food restaurants, mall outlets, and mini-marts, fueling sprawl. holes in the conventional banking system. sure format requires a company to say whether FOE subsequently sued SBA, alleging violations of the National Community development banks and credit unions the deal involves a relocation. If yes, the company Environmental Protection Act (NEPA) as well as SBA regulations. offer checking and savings accounts, take must state the old address, the new address, and deposits, issue certificates of deposit, and lend money to consumers and businesses. Deposits

Smart Growth America 8 SEPTEMBER 2002 S EPTEMBER 2002 9 Smart Growth America THETop 5 SMART GROWTH STORIES

CHRISTOPHER STEINS tions. One of the ten examples is the Barton Creek Wilderness Park in Austin, Texas. Austin he headline of this story probably caught your eye. I has had a long history of land conservation, but in T know this, because after two years of editing news NOT YOUR FATHER’S SUBURBS 1990 development was rapidly infringing on an AMERICAN METROPOLITICS stories about smart growth, urban sprawl, planning and SOLVING SPRAWL: MODELS OF SMART GROWTH IN COMMUNITIES historic natural resource, Barton Springs. As in Myron Orfield, Brookings Press, 2002. development for PLANetizen, I’ve learned to spot a ACROSS THE AMERICA the past, citizens of Austin rallied to its protec- popular ‘Smart Growth’ title. F. K aid Benfield, Jutka Terris and Nancy Vorsanger with a foreword by tion. In 1992, voters supported two bond meas- REVIEWED BY DAVID O’NEILL, PLANetizen ( http://www.planetizen.com ) is a web portal Maryland Gov. Parris Glendening, Natural Resources Defense Council, 2001. (200 pp. $20) ures totaling $42 million dollars to protect the for the urban planning and development community. It features Director Land Use Policy and Outreach Urban Land Institute new Barton Creek Wilderness Park, the Balcones daily news, editorials job opportunities, press releases and REVIEWED BY DAVID O’NEILL, Director Land Use Policy and Outreach Urban Land Institute Canyonlands, and a water quality initiative to pro- innesota State Senator Myron Orfield’s new book, RFPs, plus a free weekly email newsletter with the top planning tect Barton Creek watershed. Coupled with American Metropolitics: The New Suburban Reality, news for the week. An average of 11,000 people visit M aid Benfield’s latest represents the evolution designed a facility that will reuse existing buildings Austin’s smart growth program of incentives for captures the reality of the costs of sprawl on urban and sub- PLANetizen each day – planners, developers, urban designers, of the smart growth movement. Benfield and on the hospital site, establishing an athletic facility, new development in targeted smart growth urban America. It combines demographic research with K academics, journalists, architects. We are able to track the sto- his co-authors capture the varied conversations a pedestrian network, and a public parks system zones, the city’s approach serves as a national state-of-the-art mapping technology to illustrate social, ries that are most popular with PLANetizen readers. about smart growth among environmentalists, that will re-integrate the campus into the sur- model. racial, fiscal, land use and political Words that tend to make a headline attract readers include: public officials, real estate interests and other con- rounding community. Despite the extensive information provided trends in the nation’s top 25 metropol- smart growth, sprawl, , and titles that challenge stituencies to reflect an emerging consensus on The authors do not ignore the powerful role in the book, it fails to highlight the complete itan areas. Orfield argues that, given traditional planning, such as “How Smart Is Smart Growth?”. the most fundamental elements of smart growth. that current market forces play in shaping our range of smart growth solutions. In ignoring the the diverse stresses experienced in These were the five most popular “smart growth” headlines The authors write that, “a basic underpinning of cities. “The bulk of American development over valuable role master-planned communities can suburbs and cities, all residents and on PLANetizen during the last year, as decided by smart growth is the acceptance that growth is the next few decades will, as in the last few, take play in organizing suburban development, the jurisdictions in a metropolitan are PLANetizen’s readers: inevitable.” This reflects the shift of the debate place outside the central cities: in suburbs and on authors miss an opportunity to showcase some would benefit from reforms around u from “growth versus no-growth” to a more prag- the expanding suburban fringe,” they write. of the more innovative smart growth solutions Why The Smart Growth Movement Will Fail reducing fiscal inequities, promoting matic discussion of how best to accommodate it. To illustrate this argument, the authors show- in the country. u How To Tell If You Live In A Smart Growth Neighborhood regional land use planning, and instilling In the foreword, Maryland Gov. Parris case Reston Town Center in the suburbs of Benfield, Terris and Vorsanger give us a sim- metropolitan governance. u Trouble In Smart Growth’s Nirvana Glendening acknowledges the stiff challenging fac- Washington, D.C. Reston Town Center is at the ple but potent message: The leaders highlight- The book is laid out in three sections: Metropatterns, ing the movement he helped popularize: “Let’s heart of one of the most prominent master- ed in this book are carving the path for others u Smart Growth Without New Urbanism: Recipe For Disaster? Metropolicy, and Metropolitics. Metropatterns illustrates face it: In the vast majority of communities, smart- planned communities in the United States. It is an to follow. And best of all, it leaves the hyper- u the common pattern of growing social separation and When Will Smart Growth Start Working? growth development — whether a mixed-use 85-acre mixed-use project composed of offices, bole at the door. wasteful sprawling development throughout the country. You can find the links to all these stories neighborhood, a single transit-oriented building, shops, restaurants, entertainment space and a Metropolicy analyzes the past programs and policies that (and others!) at: or an infill, reuse or preservation project — is still hotel. The centerpiece of the project is Freedom have attempted — with very limited success — to address http://www.planetizen.com/rf/smartgrowth/ the hardest thing to do.” Square, an open-air civic plaza featuring a large the urban concentrated poverty endemic to so many met- Solving Sprawl features innovative and inspiring fountain, outdoor seating, and public artwork. Christopher Steins is managing editor of PLANetizen. ropolitan areas. He goes to on to lay out a comprehensive examples of smart growth. Benfield makes an The case study reveals that Reston, because of its regional agenda to address these problems, namely important argument early in his book when he complementary mix of land uses, generates close improved regional governance that can promote greater writes, “These stories show that the smart to 50 percent fewer automobile trips than a simi- fiscal equity among local governments. The final section, growth phenomenon is not limited geographically. larly sized suburban business district. Reston Metropolitics, gets to the all-important realpolitic, namely Communities hosting smarter developments are Town Center has distinguished itself as a subur- the real-world examples of political strategies that have urban and suburban, relatively new and truly his- ban example of smart growth — a vibrant place led to successful programs on land use planning, tax equi- toric, wealthy and working class.” He goes on to to live, work, and play. ty, and regional governance. Using detailed analysis of say, “As varied as these projects are, they have Smart development is a vital component of 1990’s election data it identifies and maps the nation’s one thread in common: Each improves the quality smart growth but not the only one. In Solving swing political jurisdictions which are overwhelmingly in of life for those who live or visit there.” Sprawl’s fourth chapter, Benfield showcases ten at-risk and growth-stressed suburbs. Using swing district The heart of the book is the compilation of 35 examples of smart conservation that range from data as a backdrop, he ends with a series of political case studies of smart growth, organized into chap- greenway trails to watershed protection initiatives strategies for moving regional reform efforts forward. ters on “smart cities”, “smart suburbs”, and to comprehensive planning and land use regula- As with all of Orfield’s work, the message with his latest “smart conservation”. book is simple: most inner-ring suburbs have more in com- The athletic shoe maker, Adidas, provides an mon with their urban neighbors than with their outer sub- interesting example. In the mid-1990s, Adidas offi- urban neighbors on the metropolitan fringe. It behooves cials committed to building a corporate campus on them both to work together on a common agenda focused a former hospital site in the city of Portland, on greater metropolitan equity. rather than on the suburban fringe. Working with developer Jim Winkler of Portland, Adidas

Smart Growth America 10 SEPTEMBER 2002 S EPTEMBER 2002 11 Smart Growth America Smart Growth America A SPONSORED ORGANIZATION OF Surface Transportation Policy Project 1100 17th Street, NW Tenth Floor Washington, DC 20036

Smart Growth America is a nationwide coalition Board of Directors Kaid Benfield, Natural Resources Defense Council promoting a better way to grow; one that protects open space Angela Blackwell, PolicyLink and farmland, revitalizes neighborhoods, keeps housing afford- Elizabeth Humphrey, Growth Management Leadership Alliance Ralph Grossi, American Farmland Trust (Chair) able, and makes communities more livable. Robert Liberty, 1000 Friends of Oregon Richard Moe, National Trust for Historic Preservation Our work is made possible by grants from the Gund David Burwell, Surface Transportation Policy Project Foundation, the William and Flora Hewlett Foundation, the Jacky Grimshaw, Center for Neighborhood Technology Shelly Poticha, Congress for the New Urbanism David and Lucille Packard Foundation, the Surdna Foundation, Steering Committee the Turner Foundation, and the Clayton Fund. Alba Alexander, League of Women Voters for Smart Growth Kaid Benfield, Natural Resources Defense Council SGA Staff: Don Chen, David Goldberg, John Bailey, Kate Joe Brooks, PolicyLink Robert Bullard, Clark Atlanta University Environmental Justice Resource Center Bicknell, Marquis Clayton, Barbara McCann David Burwell, Surface Transportation Policy Project Ernest Cook, Trust for Public Land Visit Sheila Crowley, National Low-Income Housing Coalition SmartGrowthAmerica.org, Hank Dittmar, Great American Station Foundation your portal for smart growth Lee Epstein, Chesapeake Bay Foundation information and advocacy, Jacky Grimshaw, Center for Neighborhood Technology where you’ll find: Ralph Grossi, American Farmland Trust Our newsletter roundup John Kostyack, National Wildlife Federation Smart Growth Shareware Greg LeRoy, Good Jobs First Latest news, Meg Maguire, Scenic America updated daily Ed McMahon, The Conservation Fund Richard Moe, National Trust for Historic Preservation Shelly Poticha, The Congress for the New Urbanism Lee Ronning, 1000 Friends of Minnesota Harriet Tregoning, Maryland Office of Smart Growth Betty Weiss, National Neighborhood Coalition Carol Werner, Environmental & Energy Study Institute Stockton Williams, The Enterprise Foundation Cameron Yee, Urban Habitat Program