Overcrowding and Poor Sanitation Facilities, Are a Contributing Factor to Riots, Although Not the Primary Cause

DOCUMENT RESUME ED 028 890 RC 003 419 Urban and Rural America: Policies for Future Growth. A Commission Report. Advisory Commission on Intergovernmental Relation% Washington, D.C. Spons Agency-Department of Agriculture, Washington, D.C.; Economic Development Administration (Dept. of Commerce), Washington, D.C. Report No- ACIR -A -32 Pub Date Apr 68 Note- 203p. Available from-Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 (860-530, $1.25); Advisory Comm. on Intergovernmental Relations, Wash., D.C. 20575 (1 copy free). EDRS Price MF-S1.00 HC Not Available from EDRS. Descriptors-*City Planning, *City Problems, Community Problems, Economic Disadvantagement, Ghettos, Land Use, *Migration Patterns, Negro Population Trends, *Planned Community, Rural Resettlement, *Rural Urban. Differences, Urban Areas, Urban Immigration Metropolitan areas, as a group. have had the greatest increase in population from 1960 to 1965. One of the major factors of growth has been the in-migration of people from rural parts of the country. One problem created by the influx of people into the cities has been the growth of the ghetto. Conditions of the ghetto, such as overcrowding and poor sanitation facilities, are a contributing factor to riots, although not the primary cause. The Negro population, which accounts for most of the ghettos, has *also increased in the urban areas from 127 in 1950 to 207 in 1965. A solution to the plight of the city is the idea of "new communities." These communities would have a pre-determined population figure and would make land available for industry or would be accessible to industry. Another solution would be the overhaul of land use regulations and a more effective system to control and guide developers. In conclusion, a national policy to deal with urban growth would be desirable in order to provide the cities with a framework in which to work more effectively in solving their growth problems. (RH) A COMMISSION REPORT

URBAN AND RURAL AMERICA: Policies for re4 Future Growth

ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS WASH1 NGTON, D. C.20575 APRIL 1968 A-32 Printing of this report was made possible by the U.S. Department of Agriculture;the Appalachian Regional Commission; and the Economic DevelopmentAdministration, U.S. Department of Commerce. U.S. DEPARTMENT Of HEALTH, EDUCATION & WELFARE

OFFICE OF EDUCATION

THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY ASRECEIVED FROM THE PERSON OR ORGANIZATION ORIGINATING IT.POINTS OF VIEW OR OPINIONS

STATED DO NOT NECESSARILY REPRESENT OFFICIAL OFFICEOF EDUCATION POSITION OR POLICY. A Commission Report

URBAN AND RURAL AMERICA: Policies for Future Growth

Advisory Commission on Intergovernmental Relations Washington, D.C. 20575 April 1968 A-32

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price $1.25 ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS Washington, D.C. 20575 April 1968

Farris Bryant Chairman, Florida Price Daniel Vice Chairman, Director, U.S. Office of Emergency Planning Ben Barnes Speaker, Texas House of Representatives Neal S. Blaisdell Mayor of Honolulu, Hawaii Ramsey Clark U.S. Attorney General Dorothy I. Cline Professor of Government, University of New Mexico John Dempsey Governor of Connecticut C. George De Stefano_Member, Rhode Island State Senate John F. Commissioner, Middlesex County, Massachusetts Florence P. Dner Member, U.S. House of Representatives, New Jersey Buford Ellington_ Governor of Tennessee Sam J. Ervin, Jr Member, U.S. Senate, North Carolina L. H. Fountain Member, U.S. House of Representatives, North Carolina Henry Fowler Secretary of the U.S. Treasury Alexander Heard Chancellor, Vanderbilt University Jack Maltester Mayor of San Leandro, California Angus McDonald Commissioner, Yakima County, Washington Karl E. Mundt Member, U.S. Senate, South Dakota Edmund S. Muskie_ Member, U.S. Senate, Maine Arthur Naftalin Mayor of Minneapolis, Minnesota James A. Rhodes Governor of Ohio Nelson A. Rockefeller_Governor of New York Gladys N. Spellman Commissioner, Prince George's County, Maryland Al Ullman Member, U.S. House of Representatives, Oregon Jesse M. Unruh Speaker, California Assembly William F. Walsh Mayor of Syracuse, New York Preface

The Advisory Commission on Intergovernmental Relationswas established by Public Law 380, passed by the first session of the 86th Congress and approved by the President September 24, 1959. Section 2 of the act sets forth the following declaration of purpose and specific responsibilities for the Commission: "SEc. 2. Because the complexity of modern life intensifies the need ina federal form of government for the fullest cooperation and coordination of activities between the levels of government, and because population growth and scientific developments portend an increasingly complex society in futureyears, it is essential that an appropriateagency be established to give continuing attention to intergovernmental problems. "It is intended that the Commission, in the performance of its duties, will " (1 ) bring together representatives of the Federal, State, and localgovernments for the consideration of common problems; "(2) provide a forum for discussing the administration and coordination of Federal grant and other programs requiring intergovernmental cooperation; "(3) give critical attention to the conditions and controls involved in the administration of Federal grant programs; "(4) make available technical assistance to the executive and legislative branches of the Federal Government in the review of proposed legislationto determine its overall effect on the Federal system; "(5 ) encourage discussion and study atan early stage of emerging public problems that are likely to require intergovernmental cooperation; "(6) recommend, within the framework of the Constitution, themost desirable allocation of governmental functions, responsibilities, andrevenues among the several levels of government ; and "(7) recommend methods of coordinating and simplifyingtax laws and administrative practices to achieve a more orderly and less competitive fiscal relationship between the levels of government and to reduce the burden of compliance for taxpayers." Pursuant to its statutory responsibilities, the Commission from timeto time singles out for study and recommendation particular problemsthe amelioration of which, in the Commission's view, would enhance cooperationamong the different levels of government and thereby improve the effectiveness of theFederal system of government as established by the Constitution. One subject so identified by the Com- mission concerns recent trends in the geographic location of urbanization andeconomic development in the United States and the general question of urban-ruralbalance in the future population and economic patterns of national and regional growth. In the following report, the Commission examines the dimensions andconse- quences of recent and projected urbanization trends, with special referenceto the problems of those rural and urbanareas that have been adversely affected by these developments, and various types of urban development and theirfinancing as devices for coping with future urban growth inan orderly manner. FARRIS BRYANT, Chairman.

iv Acknowledgments

This report represents the combined efforts ofthe Commission staff. The major responsibility for the staff workwas shared by David B. Walker, Assistant Director and Page L. Ingraham, James H. Pickford,L. Richard Gabler, Albert J. Richter, Will S. Myers, Jr., Carl Stenberg, Hope Marindin,and Thomas Hanna. Libraryre- search and reference serviceswere provided by Sandra Osbourn and statistical assistance by Frank X. Tippet. Assistance was also provided by Cary Hershey, PeterBrown, and Harvey Arfa,summer interns with the Advisory Commission. A special background studyon "New Communities and Land Use Controls" was prepared under contract by the American Societyof Planning Officials for the Advisory Commission on Intergovernmental Relations and theNational Commission on Urban Problems. The late Dennis O'Harrow and RichardCounts of the ASPO staff were responsible for the preparation of the study. The Advisory Commission and the American Instituteof Planners conducteda joint survey to obtain informationon the extent to which State, regional, and local plans incorporated consideration ofnew communities as a pattern of future urban growth. Questionnaires were sent to all State andmetropolitan area planning agencies. As a followup, individual letterswere sent to county planning agencies which were either identified in the ACIR/AIPsurvey as having done planning for new communities or which were knownto include new community development within their jurisdiction. Especially helpful informationregarding the procedures followed in connection with new community developmentwas received from Planning Directors of the following counties:Coconino, Maricopa, Mohave, Pima, and SantaCruz in Arizona; Alameda, Kern, Orange, andVentura in California; Pueblo, Colorado; Brevard, and Orange in Florida; Baltimoreand Harford in Maryland; and Henrico, Fairfax, and Prince William in Virgi nia. The Commission and its staff profitedfrom an informal review ofan early draft of the Report bya number of individuals including Alan Bird, John Bebout, Jo Bing- ham, George Deming, WilliamDirks, Carl Feiss, Harold Forsythe, John Gunther, Peter Harkins, Jerome Kaufman,Mark E. Kean, Frank Keenan, Charles LeCraw, Carl Madden, Allen Manvel, JamesL. Martin, Fred McLaughlin, Constance Perrin, Jerome P. Pickard, Tom Smith,Milton W. Smithman, Allan R. Talbot, RalphR. Widner, Oliver Winston, and WarrenZitzmann. The draftwas also submitted for review and commentsto a number of professional and trade associations, scholars, practitioners, and government officialshaving an interest in planning and urban development. Special mention should bemade of the suggestions elicited from members of the Committeeon Urban Design of the American Institute of Architects inresponse to the Commission's initial project outline andof the valuable comments andsugges- tions on a preliminary draft ofconclusions and recommendations prepared byLee E. Ham in conjunction witha group of West Coast developers, professional engineers, planners, and architects throughthe good offices of the ConsultingEngineers Council. The participation of those namedin reviewing drafts inno way implies endorsement of the Report. The clerical assistance of Karen Haagensenand Linda Tophamwas of particular help in readying thereport for publication. Additional assistancewas provided by Elizabeth Green, Ronald Ross, MaryHamrick, Jackie Wallace, Sue Reynolds,Inez Rountree, Lavinia Clark, and DelorisBoyd. The printing of the Report was made possible by the U.S. Department of Agricul- ture ; the Appalachian Regional Commission; and the Economic Development Ad- ministration, U.S. Department of Commerce. The Commission records its appreciation for the contribution of all of the individuals and organizations, named and unnamed. The responsibility for content and accuracy rests, of course, with the Commission and its staff. Wm. G. COLMANs Executive Director.

vi The Commission and Its Working Procedures This statement of the procedures followed by the Advisory Commission on Inter- governmental Relations is intended to assist the reader's consideration of this report. The Commission, made up of busy public officials and private persons occupying positions of major responsibility, must deal with diverse and specialized subjects. It is important, therefore, in evaluating reports and recommendations of the Commission to know the processes of consultation, criticism, and review to which particular reports are subjected. The duty of the Advisory Commission, under Public Law 86-380, is to give continuing attention to intergovernmental problems in Federal-State, Federal-local, and State-local, as well as interstate and interlocal relations. The Commission's approach to this broad area of responsibility is to select specific intergovernmental problems for analysis and policy recommendation. In some cases, matters proposed for study are introduced by individual members of the Commission ; in other cases, public officials, professional organizations, or scholars propose projects. In still others, possible subjects are suggested by the staff. Frequently, two or more subjects compete for a single "slot" on the Commission's work program. In such instances selection is by majority vote. Once a subject is placed on the work program, staff is assigned to it. In limited instances the study is contracted for with an expert in the field or a research organization. The staff's job is to assemble and analyze the facts, identify the differing points of view involved, and develop a range of possible, frequently alternative, policy considerations and recommendations which the Commission might wish to consider. This is all developed and set forth in a preliminary draft report containing (a) historical and factual background, (b) analysis of the issues, and (c) alternative solutions. The preliminary draft is reviewed within the staff of the Commission and after revision is placed before an informal group of "critics" for searching review and criticism. In assembling these reviewers, care is taken to provide (a) expert knowledge and (b) a diversity of substantive and philosophical viewpoints. Additionally, representatives of the National League of Cities, Council of State Governments, National Association of Counties, U.S. Conference of Mayors, U.S. Bureau of the Budget and any Federal agencies directly concerned with the subject matter participate, along with the other "critics" in reviewing the draft. It should be emphasized that participation by an individual or organization in the review process does not imply in any way endorsement of the draft report. Criticisms and suggestions are presented; some may be adopted, others rejected by the Commission staff. The draft report is then revised by the staff in light of criticisms and comments received and transmitted to the members of the Commission at least three weeks in advance of the meeting at which it is to be considered.

vii Contents Page PREFACE iv ACKNOWL EDGM EN I'S THE COMMISSION AND ITS WORKING PROCEDURES . vii INTRODUCTION xv

Chapter I. The Pattern of Urbanization INTRODUCTION 1 REGIONAL GROWTH 1 A Brief Historical Summary 1 The Regional Pattern of Urban Growth 2 THE URBAN MOSAIC 2 Central City-Noncentral City Dichotomy 3 The Racial Dimension 4 A More Detailed Distributional Breakdown 5 Regional Distribution of Urban Places 7 CitiesTheir Basic Economic Functions 9 The Problem of Sprawl 12 Urban Projections 13 THE DYNAMICS OF MOBILITY AND MIGRATION 14 Patterns of Movement 15 Migration and Urban Concentration 16 Causes of Mobility 17 The Process of Moving 18 Mobility and the Poor 19 URBAN-RURAL CONTRASTS 19 The Rural Exodus 19 Educational Facilities and Services 22 Health Facilities and Services 22 Housing 23 Poverty 24 Community Differences 25 INTRAMETROPOLITAN DIFFERENCES 26 SUMMARY OBSERVATIONS 27

Chapter II. Economic Growth: The Regional, State, and Local Experience 30 INTRODUCTION 30 ECONOMIC GROWTH: ITS MEANING AND MEASUREMENT . 30 The Concept of Economic Growth 30 The Measurement of Economic Growth 31 Economic Growth, 1950-1966 31 The Time Period 31 The Regions Defined 32 Per Capita Income Growth, 1950-1966 32 Page ECONOMIC GROWTH: ITSMEANING AND MEASUREMENTCon. Population Growth and Redistribution,1950-1966 33 Total Personal Income Growth,1950-1966 36 A Summary of Regional andState Economic Growth Measures 36 THE MECHANISM OFCOMMUNITY ECONOMICGROWTH Introduction 37 37 Municipal Economic Growth 39 The Common Factors 40 Empirical Results 41 Florida-Louisiana-Virginia 41 Ohio 41 Kansas 42 Summary and Policy ImplicationsRegarding Common Factors 42 Location Factors 43 THE RELATIONSHIP OFPOPULATION AND PUBLICEXPENDI- TURES 45 Method and Scope 46 Empirical Results 46 Population Size Effect 46 Population Density Effect 49 Population Growth Effect 49 Summary of Population Factorson Per Capita Public Expenditures 50 POPULATION SIZE AND THEPRIVATE SECTOR SUMMARY OF FINDINGS 50 51 Chapter III. The Impact ofRecent Urbanization Trends 54 GHETTO RIOTS ANDIN-MIGRATION SOCIAL AND PSYCHOLOGICAL 54 EFFECTS OF URBANIZATION . 55 DISECONOMIES OF SCALE BUSINESS LOCATION 56 DECISIONS AND JOBS 57 RURAL AMERICA: WHATKIND OF REMAINDER? 59 THE BURDENS OF SPRAWL 59 SUMMARY OBSERVATIONS 60 Chapter IV. New Communitiesin America and Their Objectives. 62 NEW TOWNS AND NEWCOMMUNITIES DEFINED 63 THE DEVELOPMENTOF NEW TOWNS ANDNEW COM- MUNITIES 64 THE EUROPEAN EXPERIENCE 65 Great Britain 65 Other Examples 67 THE AMERICAN EXPERIENCE 67 Industrialization and Urbanization 67 Private Development and Planning 68 Company Towns 68 Real Estate Communities 69 Garden Cities 69 Government CommunitiesIntroductionof the Federal Role 71 World War IU.S. Shipping BoardCommunities 71 Greenbelt Community Development 72 Power and Reclamation Projects 73 Atomic Energy Towns 74 Developments After 1945 74 CURRENT NEW COMMUNITY DEVELOPMENT 76 The Extent of New Community Development 77 Design and Location Characteristics of New Communities 77 Page THE NEW ENTREPRENEURS 79 Builder-Developers 79 Large National Corporation with Available Cash 80 The Oil Industry Case 81 The Land Owners 81 Mortgage Lenders as Equity Investors 82 The Independent Entrepreneuras Developer 82 PLANNING FOR NEW COMMUNITY LOCATION 82 Survey of State and Metropolitan Planning AgenciesSummary 83 Examples of Planning for New Communities 84 State Efforts- 84 Metropolitan and Other Regional 85 County Involvement 86 FINANCING THE DEVELOPMENT OF NEW COMMUNITIES. 87 GOVERNMENT AND NEW COMMUNITIES 88 Governmental Framework 88 Planning 90 Land-Use and Development Regulation 90 Public Facilities and Services 91 Permanent Status of New Communities 93 FEDERAL AND STATE PROGRAMS AVAILABLE FOR NEWCOM- MUNITY FACILITIES 93 Federal 93 State 95 Urban Planning 95 Water and Power Facilities 95 Housing 96 Mass Transportation and Roads 96 Open Space Land 96 Hospital, Medical, and Educational Facilities 96 State Supplements 97 Economic Development Assistance 97 Technical Services and Assistance 98 NEW COMMUNITY DEVELOPMENT OPPORTUNITIES 98 Better Planned and More Efficient Urban Environment 99 Improved Patterns of Land Use 100 Curtailing Sprawl 100 The Economics of Urban Land Use 100 Open Space and Recreation Lands 100 Experimentation and Innovation 100 A Market for Technological Advance 101 Flexibility in Regulation 101 Program Innovation 101 Administrative Organization 102 Broad Housing and Employment Opportunities 102 Economic Development and the Location of Urbanization 102 Investment Opportunities 102 Land Marketing Technique 103 Standard Setting Models 103 Public Awareness and Attention to Urban Development Problems 103 PROBLEMS FACING NEW COMMUNITY DEVELOPMENT. . 103 THE CHALLENGE OF NEW COMMUNITIES 105

xi Page Chapter V. Guidance and Controls for Large-Scale Urban Develop- ment and New Communities 107 LAND-USE CONTROLS,PRACTICES AND PROBLEMSAN OVERVIEW 107 Guides and Standards 107 Restraints 109 Inducements 111 LAND-USE CONTROLS IN THE LARGE-SCALE DEVELOPMENT AND NEW COMMUNITY 112 Predevelopment Techniques 112 Planned Unit Development 115 High-Intensity Sector 116 Reserved Lands 117 Administrative Adjustments and Review Boards 118 Post Development Techniques 119 CONCLUDING OBSERVATIONS 121

Chapter VI. Conclusions and Recommendations 123 INTRODUCTION 123 Summary of Major Findings 123 Consequences of Continuation of Recent Growth Trends 124 The Question of a National Urban Growth Policy 125 For National Policy to Deal with Urban Growth 129 The Critical Problems of Central Cities 130 New Communities and Large-Scale Urban Development 130 POLICIES DEALING WITH URBAN GROWTH 131 Recommendation One. A National Policy Dealing with Patterns of Urban Growth 131 Recommendation Two. Redirection of Multi-State Economic Planning and Development Agencies 134 Recommendation Three. State Policy Dealing with Urban Growth . . 134 POSSIBLE COMPONENTS OF URBAN GROWTH POLICIES . . 137 Recommendation Four. Possible Components of a National Policy Dealing with Urban Growth 137 A. Influencing Industrial Location 138 1. Federal Incentives for Business or Industrial Location 139 Tax Incentives 141 Below Market Rate Loans 142 Direct Payments 142 2. Preference in the Award of Public Contracts 143 3. Location of Federal Buildings and Facilities 144 B. Influencing Population Movement 145 4. Program of Resettlement Allowances 146 5. On-The-Job Training Allowances 146 6. The Federal-State Employment Service Program and a Nationwide Computerized Job Information System. . 147 7. Interstate Variations in Public Assistance Standards and Benefits 147 8. Voluntary Programs of Family Planning for Low-Income Persons 149 C. Large-Scale Urban and New Community Development 149 i.Large-Scale Urban Development 149 9. Federal Assistance for New Large-Scale Urban Develop-

mentLoans and Grants for Land Acquisition. . . . 151 xii POSSIBLE COMPONENTS OF URBAN GROWTHPOLICIESCon. Page 10. Direct Federal Involvement in Large-ScaleUrban De- velopment 153 ii.Financial Assistance and Incentives for NewCommunity Development 155 11. Federal Assistance for New CommunityDevelopment Loans and Tax Incentives 156 12. Experimental New Community Buildingon Federally Owned Lands 158 Recommendation Five. Implementing State PoliciesDealing with Urban Growth 159 A. Influencing Industrial Location 159 1. State and Regional Industrial Credit Facilities 160 2. Preference in the Award of Public Contracts 160 3. State Policies for Locating Public Buildings,Activities, and Facilities 160 B. Large-Scale Urban and New CommunityDevelopment . . . 161 i.Large-Scale Urban Development 161 4. Chartering State and Local Land DevelopmentAgencies 161 ii. New Community Development 162 5. State Property Tax Deferral 162 C. Other Intergovernmental Measures forMore Orderly Urban Development 163 Strengthening Local Government 163 Mechanisms for Guiding and Regulating Urban Growth 165 6. Strengthening County Government by BroadeningPowers and Facilitating Consolidation 166 7. Annexation of Territory for NewCommunity Develop- ment 167 8. Development Controls Over HighwayInterchangesand Rights-of-Way 169 9. Ordinances and Regulations 169 Official Maps 170 Mandatory Dedication of Public Facility Sites 170 Planned Unit Development 171 "Unmapped" or "Floating"Zones 172

FOOTNOTES 172 APPENDICES 174 Appendix I-AClassification of People byResidenceData Definitions and Limitations 174 Appendix I-B--Urban Populationas a Percentage of Total Population, by Regions, 1870, 1910, 1950, and 1960 175 Appendix I-CThe Distribution andGrowth of SMSA Population in Central Cities and Outside Central Cities, 1900-1975 175 Appendix I-D-Population and Change forTerritorial Aggregates, 1960- 65 176 Appendix I-EPhysician Visits Per Year,By Sex, Age, Residence, and Family Income of Patients, 1963-64 176 Appendix I-FDental Visits Per Year, bySex, Age, Residence, and Family Income of Patients, 1963-64 177 Appendix I-GAverage Family Expendituresfor Medical Care, Value of Free Care, and Percentage of FamiliesReporting Expenditures and Free Care, By Residence, 1961 177 Appendix I-HNumber and Percentof Families with 1959 Income Under $3,000, by Place of Residence 177 APPENDICESContinued Page Appendix IIAStatistical Results for Per Capita Expenditures and Various Explanatory Factors in Ohio 178 Appendix IIBStatistical Results for Public Employment and Various Explanatory Factors in Ohio 178 Appendix IICStatistical Results for Per Capita Expenditures and Various Explanatory Factors in Texas 178 Appendix IIDStatistical Results for Public Employment and Various Explanatory Factors in Texas 179 Appendix IIEStatistical Results for Per Capita Expenditures and Various Explanatory Factors in New Jersey 179 Appendix IIFStatistical Results for Public Employment and Various Explanatory Factors in New Jersey 179 Appendix IVAFederal Aid Available for New Community Develop- ment 180

xiv

^ Introduction In our free society the pattern of urbanization and and servicesin rural America, and a continuing one-way economic growth is basically the product of countless flow of people from country to city, damaging to country and decisions by individual citizens on where they want city alike... The result has been a rural America with space to spare, to live and work and by private groups and enter- but starved for opportunityand paradoxically an urban prises on where they want to operate. Increasingly America with opportunity for the many, but starved forspace conditioning these decisions, however, are govern- for her residents to move in, to enjoy, to breathe.... mental policies and programs at the national, State, An unplanned policy of exporting rural problems to the city has drawn urban America into rural crisis. For the and local levels reflecting the desire of the American affluent of the city, the unchecked migration meansmore people, expressed through democratic political proc- crowding, higher taxes, more hours consumed in commuting esses, for governmental action to promote "the gen- as urban sprawl continues unabated. For migrants already eral welfare." in the teeming ghettos, further immigrationmeans less Concern is voiced in many quarters as to whether opportunity and rising despair. present and probable future trends in urbanization Members of Congress have emphasized thecon- support the national interest, particularly in view of nection between the problems of the cities and those the apparent connection between migration from poor of the troubled rural areas. Thus Senator Karl E. rural areas and growing social tensions in central city Mundt, in testifying on the proposed joint resolution ghettos. Some are urging that new directions be consid- he introduced with 19 cosponsors calling fora tempo- eredboth governmental and nongovernmentalto rary National Commission on Balanced Economic guide these trends, and that this guidance should be Development stated :3 toward "balanced urbanization." The sponsors of the resolution suspect that two established Speaking at Dallastown, Pennsylvania, in September trends of today, and the considerable problems resulting from 1966, President Johnson said : each of the trends, are not separate but are rather parts of one problem--how to achieve a balanced national economic History records a long, hard struggle to establish man's development. right to go where he pleases and to live where he chooses. We suspect that the deepening problems of the cities result It took many bloody revolutions to break the chains that in part from too sudden and too great a concentration of bound him to a particular plot of land, or confined him within population. We suspect some cities have passed the point of the walls of a particular community. diminishing returns in the growth and concentration ofpopu- We lose that freedom when our children are ob?iged to lation, therefore that the cost of public services, transporta- live some place else, that is, if they want a job or if they want tion, government, and day-to-day living exceed the levels a decent education. Not just sentiment demands that we do which might prevail under more efficient conditions ofpopu- more to help our farms and rural communities. I think the lation concentration. welfareof this Nation demands it. And strange as it may The Federal Government...is on the one hand striving seem, I think the future of the cities of America demands it, to prop up faltering economies in rural and sparsely popu- too.... lated areas. These areas, nevertheless are by relativemeasure The cities will never solve their problems unless we solve becoming increasingly depopulated. On the other hand the the problems of the towns and the smaller areas. So consider Federal Government feels itself called to attendmore and the problem of urban growth. If the present trend continues, more closely to the problems of the huge metropolitan com- by 1985 as many people will be crowded into our cities as plexes, the areas which, in addition to theirown natural occupy the entire Nation todayin 1960. That means people growth, find their problems aggravated by the continuous enough to make five more New Yorks, or that means people to influx of immigrants who are frequently unprepared for liv- make 25 Washingtons. Many will migrate to the cities against ing in them. their will, if we continue to allow this to happen.... We appear never to have analyzed the prospect fora bal- ...I don't think it has to happen. Modern industry and anced economic and demographic development of thiscon- modern technology and modern transportation can bring jobs tinent. Rather, the development that has occurred is accepted to the countryside rather than people to the cities. And mod- as the consequence of the workings of some kind of natural ern government could also help. law of economics. In January 1967, Secretary of Agriculture Orville Similar support for this thesis hascome from other L. Freeman pointedly related the problems of rural sources. Thus, the Republican Coordinating Commit- development to the problems of urbanization :2 tee's Task Force on Job Opportunities stated: 4 The dimensions of the (rural) crisis are well known to all Our rural areas are being depleted of people. From 1950 of you who are deeply involved in rural development. They to 1960 the rural populationfarm plus nonfarmdeclined consist of too little of everythingjobs, income, education, by 400,000; the urban population increased by 28 million. These trends have continued. The Department of Agriculture overcrowding with all its attendents effects inimical to anticipates further outmigration to the year 1970.... an efficient, healthy society, and at worst, adding fuel What becomes of these people? They move into our great cities.... to the tinderbox conditions of the core cities. The policy And will these be alabaster cities, gleaming, "undimmed by implication here seems to be that the various levels of human tears"? Not likely. The migrants concentrate unas- government and the private sector should consider the similated, in Detroit, in Cleveland, in the South Side of Chi- desirability of trying to divert this continuing growth cago, in Watts, in Harlem, in Indianapolis, and in a hundred other cities. Smog, congestion, water pollution, law enforce- of the big metropolitan complexes and to attract more ment and other problems of the megalopolis beset them and economic activity to the rural areas and to the small their uneasy neighbors. By generating a kind of "urban cities and towns. crush," they create a problem in the cities to which they go. By depopulating the countryside, they create a problem Clearly, the recent and projected geographic distri- in the rural areas from which they come. bution of urban and economic growth has triggered a The W ashington Post has stated editorially: 5 widespread debate over urbanization's future course, over the location of the 115 million Americans who will Before the Nation proceeds blindly to rebuild its urban be added to our population by the year 2000. One way ghettos in environments essentially unsuited for human habi- tation, it ought to carefully explore the feasibility of provid- or another, the dialogue has focused on questions of ing jobs and living conditions that will draw some urban "balance" and "imbalance" and from three basic van- population into the countryor at least arrest the tide of tage points. immigration into cities. Sometimes, it deals solely with the issue of popula- As a further example, Joseph P. Lyford, a noted tionof rural vs. urban growth rates; of migration and urban scholar has pointed up the basic linkage between nonmigration trends and motives; of the geographic the problems of congestion and deterioration in urban distribution of the urban sector; and of big vs. medium areas and the migration-causing decline of rural and small urban concentration patterns. At other areas: 6 times, the debate concentrates on economic issues One of the weaknesses in current discussion of the problems involving the extent, distribution, and factors of eco- of the city is the assumption that the crisis of the city is some- nomic growth; the disadvantaged groups and areas in how unrelated to the crisis of our rural areas. It should be both rural and urban America; and the costs and bene- obvious that we cannot begin to deal effectively with the fits of concentration and sparsity. Finally, the present problems of the inner city in education, housing, employment, and future pattern of urban and economic growth also health and welfare unless we also deal with the rotting and dying areas which are the sources of the apparently inevitable raises questions about so-called "urban sprawl," the migration to the city. I do not see why this massive, unbal- potentials for a better kind of large-scale urban devel- ancing migration should be inevitable. I do not see why it is opment and the future of new communities in the not possible for Federal and State governments, and the pri- United States. vate sector, to do things which will encourage a change in the trend of our population movements. This report closely examines these and other dimensions of the continuing process of urbanization; high- The clear thrust of all these statements is that the lights the intergovernmental policy implications in its wave of migration from rural areas to the city is harm- findings; and advances recommendations in the belief ing both the rural areas, by the depletion of the young that the future of American federalism is inextricably and able population, and the urban areas, by causing linked with that of urbanization.

Footnotes The President's Remarks at Ceremonies Marking the ing the urban-rural linkage, see Congressional Record, 1967, 100th Anniversary of Dallastown, September 3, 1966, Weekly pp. S. 5302, S. 9551, S. 12346, S. 12456, S. 12676, H. 2001, ComPilation of Presidential Documents, September 12, 1966, H. 8424, and H. 13648. p. 1217. 4 Republican Coordinating Committee, The Task Force on ' Address to Southwest Agricultural Forum, Tulsa, Okla- Job Opportunities and Welfare, Revitalizing Our Rural Areas homa, January 20, 1967, reprinted in Congressional Record, (Washington, 1967) (unpaged). January 31, 1967, p. H.843. The W ashington Post, September 26, 1967. U.S., Congress, Senate, Committee on Government Oper- Testimony of Joseph P. Lyford, University of California, ations, Hearings, Commission on Balanced Economic Devel- Berkeley, in U.S. Congress, Senate, Committee on Govern- opment and A Northwest Regional Services Corporation, ment Operations, Subcommittee on Executive Reorganization, 90th Congress, 1st Session, June 12; July 20 and 21, 1967, Federal Role in Urban Aflairs, Part 6, 89th Congress, 2nd p. 37. For other statements by Members of Congress regard- Session, p. 1357.

xvi Chapter I The Pattern of Urbanization

INTRODUCIION also highlighted. Finally, a short recapitulation of the major findings relating to intrametropolitan differ- To DESCRIBE THE United States as an urban nation ences (developed in the Commission's earlier report, is to state the obvious. To tick off aggregate statistics Fiscal Balance in the American Federal System) will indicating urban growth is to quote the first or second be presented in order to place the earlier rural-urban paragraph of nearly any speech or article dealing with analysis in proper perspective and to fit a vital piece a major domestic problem. To describe the first item into the mosaic of urban America. on the nation's agenda of unfinished domestic business In short, we are concerned here with the paradoxes as "the urban crisis" is merely to state a truism. To of : explain the stresses and strains of contemporary inter- the emergence of an urban nation in a country governmental relations in terms of competitive and that has a rural bias against cities; collaborative approaches toward meeting the urban greater urban growth, but declining older big challenge, while less usual, is becoming more com- cities; monplace. the most dynamic expansion emerging in a broad Yet, there is a widespread contemporary debate geographic crescent that involves regions and states over the impact, direction and future course of urban- which until recently had a strong antiurban tradi- ization in America and much of it indicates significant tion; disagreements, and no little confusion, concerning the large and small enclaves of poverty in both rural multi-dimensional features of this primary conditioner and urban areas, which are byproducts of urbani- of American social and economic life. zation and the economic advances it symbolizes; In this first chapter of the Report, the contours of and the urbanization process are sketchedfirst, by chron- big urbanization with many nonpublicized elements icling the historical development and evolving re- of balance, but with economic and demographic gional patterns of this process. The multi-faceted results that threaten the qualitative balance, the mosaic of the urban landscape is then probed by fo- balance between big and small, which also is a part cusing on the core city-suburban dichotomy in met- of the American federal system. ropolitan areas, the broader configuration of urban places in metropolitan and nonmetropolitan areas, REGIONAL GROWTH the contrasting growth rates and basic economic features of urban places by area and region, the special A BRIEF HISTORICAL SUMMARY problems of race and sprawl, and the metropolitan In this chapter, we are concerned with one basic mirror of the future. The dynamics of mobility and aspect of urbanizationthe spatial distribution of migration are treated next with a view to tracing the people and their concomitant economic and social patterns of movement, determining the relationship activities. Attention is centered on urban areas, where between migration and urban concentration, assess- increasing proportions of Americans live, and where ing the factors prompting or retarding movements, new patterns are emerging and becoming firmly es- and examining the links between poverty and mobil- tablished. Yet, given the diverse pattern of recent ur- ity. The relationship between urban growth and rural banization and the resulting difficulty of drawing a difficulties is then examined. Special problem areas clean line between "rural" and "urban" areas, the facing rural America are briefly documented and ma- former and its population will be fully considered. jor contrasts between rural and urban conditions are Our basic purpose at the outset is to sketch the his-

310-335 0-68-2 1 torical evolution of the present geographical pattern growth between 1870 and 1960. Absolute population of urbanization. increases, however, were heaviest in the Middle At- In 1790, when the newly formed national govern- lantic, Great Lakes, and Southeast regions. The larger ment first instituted a system of comprehensive cen- share of the population then continued to cluster in suses, 95 percent of the 3.9 million people wererural areas east of the Mississippi, but to a lesser degree and some 85 percent were agricultural. The first cen- than was the case nine decades ago. The four eastern tury of the nation's existence under the constitution regions of the country contained 85.5 percent of the (1790-1890) witnessed a population increase of about -,:ation's population in 1870, 74 percent in 1910, 71 35 percent or more each decade. It was a -period of percent in 1950, a little over 69 percent in 1960, and heavy population increase and marked economic ex- GC,.5 percent in 1966. The Far West, Southwest, and pansion. A record wave of immigration occurred prior Mountain regions experienced the greatest relative to the Civil War, which exceeded that of the latter expansion in terms of their share of the national pop- half of the previous century. The population reached ulation. 25 million in 1850, double this figure by 1880, and Overall, nearly the same pattern emerges if re- reached 75 million in 1900. It was not until the latter gional growth is measured in terms of employed labor half of the 19th Century, that rates of natural in- force rather than population. The shares of the na- crease began to decline. On the other hand, the eco- tional labor force compare quite closely with the pop- nomic problem of labor scarcity, along with other ulation percentages for all regions, with the South- factors, provided the impetus for a third great wave east providing the greatest deviation due to the influ- of immigration from Europe. ence of high birth rates. The movement of population within the country during this period was more than simply a trek west. THE REGIONAL PATTERN OF URBAN GROWTH There was also a further intensification of urban de- Every census since 1870 reveals a positive increase velopment in the older sections of the east. Between in the total proportion of population living in urban 1890 and 1900, the beginnings of a major migration areas. This dynamism paralleled the country's indus- from agricultural to the "more abundant life" in ur- trialization, and had a profound effect on the urban- ban areas got underway. This movement began even rural pattern of population settlement and on re- as the nation developed the most productive agricul- gional population patterns. tural economy the world had yet seen. By 1900, 40 Tables 1 and 2 summarize the increase in urban percent of the population were living in urban places population between 1870-1960 within eight regions. of 2,500 or more, and more than 60 percent of the By 1960, as Appendix Table IB shows, only one re- economically active population were working outside gionthe Southeasthad a larger rural than urban of agriculture. population. If the former census definition of "urban" The Southeast, Great Lakes, and Middle Atlantic (see Appendix IA) is used, however, all of the re- regions experienced the greatest absolute increases in gions contained more urban than rural residents by population during the long span extending from 1870 1960. The most urbanized region is New England to 1960. The rates of increase, however, were highest where three out of every four persons live in urban in the Mountain, Southwest, and Far West divisions. areas. The aggregate for the four Eastern regions (i.e., New Table 1 provides the ten-year rates of increase of England, Middle Atlantic, Great Lakes, and the urban population by region. The rates of urbanization Southeast including Arkansas and Louisiana)ex- generally are significantly greater in the States com- ceeded the national percentage increases in only a few prising the Southwest, Mountain States and Far West decades, and then only at slightly above average rates. than those for the States east of the Mississippi River. A high rate of population growth occurred before There are exceptions, of course, in the Southeast, and 1910 in the Plains region, but subsequently its rates specifically, Florida. A comparison of the rates of fell below the national average. In the early 20th urbanization and the proportion of urban residents to Century, there were fewer in-migrants than out-mi- total U.S. population is provided in Table 2. Even grants in Iowa and Missouri and by 1920 Minnesota, though the west claims the most rapid percentage in- Nebraska, and Kansas followed a similar pattern. The crease in total population', the great bulk of the na- proportion of national population residing in the tion's urban population still resides in the four eastern Plains States has declined by 4 percent since 1910. regional divisions. The Far West, Southwest, and southern Mountain States have absorbed most of the "westward" move- THE URBAN MOSAIC ment of population in tecent years. Population statistics provide a back-drop for the On the whole, the least densely populated parts of striking fact of 20th Century lifethe populationex- the country experienced the most rapidrelative plosion in metropolitan America. Inevery decade ex-

2 Table 1-Decennial Rates of Increase of Urban Population, by Region, 1870-1960

Region 1870-80 1880-90 1890-1900 1900-10 1910-20 1920-30 1930-40 1940-50 1950-60

United States 1 41. 0 56. 5 36.4 39.3 29. 0 27. 3 7.9 20.6 25. 4

New England 35. 7 13. 8 32. 5 25.3 17. 0 12. 3 1. 7 7.8 13.2 Middle Atlantic 34. 7 39.6 35. 0 34. 6 22. 7 20. 7 4. 8 8. 0 8. 4 Great Lakes 56. 2 66.3- 41. 2 33. 2 35. 7 28. 7 3.9 14. 5 20. 9 Southeast 16. 2 63. 8 37. 1 48. 3 36. 0 39. 3 18.6 33.5 38. 2 Plains 53. 1 106. 2 27. 7 31.3 22. 2 17. 6 7. 9 17.1 22. 8 Southwest 133. 5 135. 2 165. 9 118. 3 63.6 55. 0 19. 4 52. 3 56.6 Mountain 351. 5 197.9 51.6 68. 6 23.8 14. 7 18. 1 31. 0 34.8 Far West 89. 1 94. 1 37. 4 112. 1 45. 1 60. 3 14. 9 43. 6 51. 3

1 Excluding Alaska and Hawaii. Press, 1960) p. 20. Table adapted and updated by ACIR. To achieve comparabi lity, the former definition of "urban" has been used throughout. Source: Harvey S. Perloff, Edgar S. Dunn, Jr., Eric E. Lampard, and Richard F. Muth, "Regions, Resources and Economic Growth" (Baltimore, Maryland: The Johns Hopkins

Table 2-Rank Order oF Regions by Rate of Increase in Urban Population and Regional Proportions of U.S. Urban Population, 1870-1960

1V/J-60 1960 a", rate 1950-60 proportion 1960 1870-80 % rate 1870 1900-10 1910 1940-50 1950 oising (current (using (current proportion % rate proportion % rate proportion former defin.) former defin.) defin.) defin.)

1) Mt.1 351. 5 MA 43.4 SW 118. 3 MA 35. 3 SW 52. 3 MA 28, 0 SW 55.6 2) MA 24.3 (25. 0) 2) SW 133. 5 GL 19. 7 FW 112. 1 GL 22. 9 FW 43.6 GL 2t. 5 FW 51. 3 53. 5) GL 21. 7 2 FW 89. 1 NE 15. 5 Mt. 68.6 NE 11.4 SE 33. 5 SE 14.4 SE 38.2 40.6) SE 15.9 16. 2 4 GL 56. 2 SE 11. 0 SE 48. 3 SE 10. 2 Mt. 31. 0 FW 10.3 Mt. 34.8 44. 8) FW 12. 5 13. 5 5Pl. 53.1 Pl. 7.3 MA 34.6 PI. 9. 2 Pl. 17. 1 Pl. 7. 9 Pl. 22.8 23. 8) SW 8.8 2 6 NE 35. 7 FW 2. 2 GL 33.2 FW 5. 7 GL 14. 5 NF 7.8 GL 20. 9 24. 8) PI. 7. 7 7.3 7 MA 34. 7 SW . 7 Pl. 31. 3 SW 3. 3 MA 8. 0 SW 7. 1 NE 13. 2 13.1) ME 7. 0 6. 4 18) SE 16.2 Mt. . 2 NE 25. 3 Mt. 2. 0 NE 7. 8 Mt. 2. 0 MA 8. 4 15. 7) Mt. 2. 2 2. 2

1 Regional designations: N E (New England); MA (Middle Atlantic); GL (Great Lakes); Sorice: Harvey S. Perloff, Edgar S. Dunn, Jr., Eric E. Lampard, and Richard F. Muth, SE (Southeast); Pl. (Plains); SW (Southwest); Mt. (Mountain); FW (Far West). See "Regions, Resources and Economic Growth" (Baltimore, Md.: The Johns Hopkins Appendix I-B for the States included in these regions. Pr.ess, 1960), p. 21. Table updated by ACIR.

cept the 1930's, there has been an enormous growth that they ignore annexation. Since 1950, overall cen- in metropolitan areas (using the new Census defini- tral city population growth has largely been a product tion of Standard Metropolitan Statistical Area- of annexation.1 If the 1950 boundaries are used as SMSA*).Metropolitan population growth has ex- the basis for jurisdictional enumeration, central cities ceeded nonmetropolitan growth in every decade since in all size categories experienced relatively minor in- 1900. Projections for 1975 indicate that this growth creases or even declines over the decade 1950-1960. will continue at about 25 percent per decade. As Table 3 shows, the nearly 11 percent increase in central city population for this period is only 1.5 per- CENTRAL CITY-NONCENTRAL CITY DICHOTOMY cent, if annexations are excluded. The outside central city growth increases from 48.5 percent to 61.7 per- Between 1900 and 1920 central cities grew more cent with this exclusion. Annexation also explains rapidly than their surrounding areas (see Figure 1 and some municipal population growth in earlier decades. Appendix I-C).This growth reflected the large im- Cities that have increased their population without migration from both rural areas and foreign countries. annexation frequently have had considerable undevel- By 1930, adjacent urban areas outside the central city oped land within their borders. In recent years, such began to play a more significant role in terms of urban growth, mainly because of changing modes of trans- municipalities have been located primarily in the portation and because these areas had not been in- South and West and had effected earlier annexations. corporated into the legal limits of the central city. The Although metropolitan areas in the various size growth of these areas soared after World War II. categories have grown at about the same rate (with Central city growth fell to about two-thirds of the the exception of those in the 500,000-1 million. class), amount of the outside central city growth between there have been and are dramatic differences in the 1930 and 1950, to about one-third between 1950 and intrametropolitan distribution of this growth. Central 1960, and it is projected to fall to about one-sixth the city growth has taken place primarily in the smaller amount from 1965 to 1975. metropolitan areas, while the outside central city ju- To some extent these figures on population growth risdictions of the large metropolitan areas generally understate the relative decline of the central city in have grown more than the outlying regions in smaller *For a definition and discussion of SMSA's see Appendix metropolitan areas and at a faster rate. The growth I-A. picture then clearly is one of major contrasts between

3 Figure 1

PERCENT OF SMSA POPULATION WITHIN CENTRAL CITIES,1900-1975

Percent 70

10 -

1930

Source: Appendix Table I-C

Table 3-Population Growth in Metropolitan Areas With and the central city and the regions outside the central Without Central City Annexations, by Size of Area, 1950- city of the large metropolitan areas (500,000 plus). 1960 In analyzing metropolitan area growth, the rural

Total Change component of the area outside the central city should Size of area change without (percent) annexations /not be overlooked, since it conditions all central city- (percent) / outside central city comparisons. This component, however, involves a population that is urban oriented All SMSA's: Central cities +10. 8 +1. 5 in charicter. For all SMSA's in the United States in Outside central cities +48. 5 +61. 7 Total +26. 4 +26. 4 1960, nearly one-fourth of the population outside the SMSA's. population of: central city was rural. There were enormous varia- 3,000,000 or more: Central cities +1. 0 +. 6 tions, however, between various large metropolitan Outside central cities +71. 3 +72. 2 Total +23. 2 +23. 2 areas. Among the 37 largest SMSA's in 1960, for ex- 1,000,000 to 3,000,000: Central cities 4-5. 6 -2. 2 ample, the rural portion of the population outside Outside central cities. +44. 8 +52. 7 Total _, ., +25. 0 +25. 0 central city ranged from 1.2 percent in the Patterson- 500,000 to 1,00000: Central cities +21. 4 +4. 8 Clifton-Passaic SMSA to 45.5 percent in San An- Outside central cities +57. 4 +KA Total +36. 0 +36. 0 tonio, although this involved a small number of 250,000 to 500,000: people in the latter case. The next largest percentage Central cities +16.2 +2. 2 Outside central cities +36.2 +51. 9 of rural population outside the central city area was Total +25. 6 +25. 6 100,000 to 250.000: in the San Bernardino-Riverside-Ontario SMSA with Central cities +24. 4 +4. 6 Outside central cities +27. 6 +54. 5 38.9 percent; this portion was absolutely and rela- Total +25. 8 +25. 8 Under 100,000: tively large.2 Central cities +29.2 +8. 6 Outside central cities +10. 9 +69. 9 Total +24. 4 +24. 4 THE RACIAL DIMENSION If the racial components of urban population growth Source: U.S. Bureau of the Census. "U.S. Census Population: 1960. Vol. 1, Character- istics of the Population." Part A. Number of Inhabitants. are analyzed, a stark pattern of cleavage emerges.

4 While the proportion of Negroes to the total popula- Table 4Negroes as a Percent of Total Population by Location, Inside and Outside Metropolitan Areas, and by Size of tion has remained roughly the same since the turn of Metropolitan Areas, 1950, 1960, and 1966 the century (between 10 and 12 percent) ,* a major distributional transformation has taken place. Between Percent Negro 1940 and 1966 a net total of 3.7 million nonwhites left 1950 1960 1966 the South for other regions of the United States. De- spite this great exodus, 55 percent of Negroes still live United States 10 11 11 Metropolitan areas 9 11 12 in this region.3 Central cities 12 17 20 Central cities in metropolitan areas I of: The central cities of metropolitan areas have ab- 1,000,000 or more 13 19 226 sorbed most of the increase among Negroes since 250,000 to 1,000,000 12 15 220 Under 250,000 12 12 212 1950-5.6 million of a total increase of 6.5 million Urban fringe 5 5 4 10 Negroes. Most of the increase among whites has oc- Smaller cities, towns, and rural 11 10 curred in the urban fringe or metropolitan suburbs- Using 1960 metropolitan area boundaries. 2 percent nonwhite; data for Negroes are not available. The figures used are estimated 27.7 million in a total increase of 35.6 million whites. to be closely comparable to those for Negroes alone, using a check for Negro and non- Fifty-six percent of all Negroes now live in the cen- white percentages in earlier years. Source: Department of Commerce, Bureau of the Census, Bureau of Labor Statistics, tral cities of metropolitan areas, while only about one- Report No. 332, "Current Population Report," Series P-23, No. 24, "Social and Economic Conditions of Negroes in the United States" (Government Printing Office, Washington, fourth of the white population of the United States D.C., October 1967) p. 10. now live in these cities. As shown in Table 4, the percent of Negroes to Table 5Location of All Nonwhite Families and of Nonwhite the total population of central cities rose from 12 per- Families Below the Poverty Level, 1965 cent in 1950' to 20 percent in 1966. For central cities Percent distribu- Nonwhite families in SMSA's of one million population or more the tion of nonwhite. below the poverty families level I in each 1966 share amounted to 26 percent, whereas central location cities in SMSA's under 250,000 contained the same Below theNumber percent of Negro population (12 percent) as in 1950. Total poverty (in mil- Percent level I In short, the larger the metropolitan area, the faster lions) the rate of Negro population growth and the greater United States 100 100 1.9 39 the Negro share of the total citizenry. In the urban Farm 5 9 . 2 68 Nonfarm 95 91 1.6 35 fringe (or suburban areas) and in the smaller cities, Small towns and rural areas 21 32 . 6 56 Metropolitan areas 74 59 1. 0 30 towns, and rural areas, the percent of Negro popula- 1,000 000 or more 45 31 . 5 25 250,000 to 1,000,000 21 19 . 3 34 tion to total population decreased between 1950 and Under 250,000 population 8 9 . 2 41 1966. The location of nonwhite families below the pov- I The "poverty level" using 1965 incomes, is defined by the Social Security Adminis. tration, as $5,090 for a nonfarm family of seven or more persons and $4,325 per year for erty f level in 1965 is highlighted in Table 5. Those a farm family of seven or more persons. metropolitan areas with a population of 250,000 or Source: Department of Commerce, Bureau of the Census, Bureau of Labor Statistics, Report No. 332, "Current Population Report," Series P-23, No. 24, "Social and Economic more contained two-thirds of all the nonwhitefam- Conditions of Neiroes in the United States," (Government Printing Office, Washington, ilies, but only 42 percent of the nonwhite poor fam- D.C., October 1967) p. 24. ilies. The bulk of the latter, however, reside in central cities. Moreover, of the total of poor non-white farn- the diversity in urban, as well as rural, patterns. Rich- ilies, more than half are located in the nation's metro- ard L. Forstall of the Cartographic Division of Rand politan areas. And again, the great majority of these McNally and Company has developed a somewhat are in core cities. different approach to chronicling the nation's evolving pattern of urbanizationan approach that sheds A MORE DETAILED DISTRIBUTIONAL BREAK- a different light on metropolitan areas with their DOWN varying components and on nonmetropolitan urban The foregoing description of urban-rural, metro- and other units. politan, and intrametropolitan trends has dealt with A distinctive set of definitions is a major feature of broad national, regional, and population class size the Rand McNally analysis.4 These are derived by dividing the nation's total population into five "ter- aggregates. These sometimes tend to conceal much of ritorial aggregates" : *This proportion is expected to rise to 14 percent by 1980, metropolitan central cities, however, due to higher birth rates. incorporated suburbs of 10,000 or more, Poverty as defined by the Social Security Administration, "metropolitan remainders," or suburban areas out- takes into account family size, number of children, and farm side incorporated places of 10,000 or more, and nonfarm residence, as well as the amount of family money income. As applied to 1966 incomes, the "poverty level" was nonmetropolitan urban places of 10,000 or more, $3,300 for a nonfarm family of four with two children. and 5 the "nonmetropolitan remainders," composed of Figure 2 nonmetropolitan towns and villages below 10,000 PERCENT OF TOTAL U.S. POPULATION along with rural areas. FOR TERRITORIAL AGGREGATES, 1965 The first three aggregates combine to form metropolitan areas of one hundred thousand or more (RMA's).They are constituted using townships, suburbs, and central cities and are bounded by locally recognized community limits and interlocal relation- Suburbs of ships, not by entire counties. They exclude many rural Metropolitan 10,000 areas and localities which are included in SMSA's remainders or more merely because they are in a county with a central 17.1% 14.4% city or heavily settled suburban area. The RMA's also exclude some small SMSA's, since only the population of the central city and its outside suburbs are used as a basis of enumeration. A few RMA's appear in the listing for which there is no SMSA counterpart Metropolitan Nonmetropolitan Central Cities due to the fact that the latter requires a central city remainders 30.4% of 50,000 or more. Finally, the u.!, of the RMA's pro- 29.0% duces urban places of 10,000 or more outside the RMA's which are classed as "nonmetropolitan places" and may, or may not, be located in SMSA's. The exclusion factor for Rand McNally is whether distance, the pattern of urban relationships, or both indicate an absence of close ties between thesetturban places" and RMA's. Nonmetropolitan The 1960-1965 population changes for these five places of territorial aggregates, along with those f3r the RMA's 10,000 or more and adjustments required by annexations (see Figure 9.2% 2 and Appendix I-D) corroborate some generaliza- Source: Richard I.. Forstall, "Population Change in American Cities, 1960-1965," tions previously stated and provide the basis forsome "The Municipal Year Book, 1966" (Chicago, I IL: International City Managers' Associa- new findings: tion, 1966), Table 2, p. 32. Metropolitan central cities increased by 5.1 percent or only 3.5 percent when annexations are excluded, About two million, or almost a quarter, of the total and comprised a little less than half of the total increase for cities of 10,000 or more was due to RMA population. annexations. Suburbs showed the greatest growth (16.5 per- A regional breakdown of these territorial aggre- cent), but only 13.9 percent when annexations are gates further underscores the diversity of urbanization considered. patterns and underlines certain popular misconcep- Metropolitan remainders actually experienced the tions concerning these developments. As the above greatest hikeif the annexation efforts of neigh- suggests, in only four regions (as defined by Rand boring incorporated suburbs and central cities are McNally) did central cities still possess a majority of omitted. the metropolitan population by 1965; these generally Nonrnetropolitan urban places did not experience were regions whose RMApopulation formed a small- as significant a rise as the two noncentral city met- er proportion of the total. Ratesof increase for cen- ropolitan categories; or put another way and con- tral cities, as adjusted for annexations, indicate below trary to some imprasions, small and medium-sized national averages for those in the Northeast, North cities outside of metropolitan areas have not been Central, and upper South Atlantic divisions and a growing as rapidly as their RMA counterparts. high of 10.7 percent for the Mountain States. Cen- Moreover, annexations were responsiblefor a tral city annexations appear to be most restricted in greater share of their total increase than was the areas where population growth was mostlimited. case for central cities. Suburban increase was relatively low in the South, The nonmetropolitan remainder (rural areas and where there are few large suburbs, and in the Middle villagesand towns below10,000outsideof Atlantic division, where many such jurisdictions are RMA's), while comprising more than 38 percent old and established. On the other hand, suburban of the total population had the lowest growth rate growth accounted for 57 percent of the noncentral over 1960-1965. city metropolitan growth in New England and more 6 than 40 percent in the Midwest and Pacific States. REGIONAL DISTRIBUTION OF URBAN PLACES Metropolitan area remainders experienced higher A breakdown by regions further emphasizes the than national average growth in East South Central heterogeneity of the national pattern but also the rel- and South Atlantic regional divisions. atively greater growth rate of medium and large size Nonmetropolitan urban places had their greatest urban categories. growth in the lower South Atlantic, East South Cen- In Table 7, independent urban concentrations have tral, the Pacific and Mountain regions. Particularly been grouped by population class and by regional low rates for this category occurred between 1960 and divisions. These areas comprise the Rand McNally 1965 in the Northeast and East North Central divi- metropolitan areas of 100,000 already discussed, plus sions. roughly similar areas for urban centers from 20,000 to These regional division modifications of the na- 100,000. The data for these smaller areas are only tional trends for the five Rand McNally territorial approximations and are not wholly comparable to aggregates clearly highlight the fact that while each the larger metropolitan areas. They are adequate, region has elements of the nation's metropolitan and however, for the present purpose. nonmetropolitan mosaics, each in turn has its own For the United States as a whole, the percentage configuration whose composite elements possess dif- increase for 1960-1965 is nearly 10 percent for all fering strengths. Moreover, these findings indirectly urban areas (20,000 to 1,000,000 or more). There is underscore the significance of the varying govern- considerable diversity, however, in the rates of popu- mental structures in the different regions, especially lation growth among the various sized urban areas, the contrasting approaches to the power of annexa- the greatest growth being in the 500,000 to 1,000,000 tion. classification (12 percent).By way of contrast, the

Table 6-1960-65 Percentage of Population Change by Aggregates and Divisions [Data in parentheses reflect adjustment for annexations]

Places over 10,000 Metropolitan Non- Metropolitan Non- Division, region Total Central Non- remaindersmetropolitan areas metropolitan cities Suburbs metropolitan remainders areas places

Divisions I New England 5. 2 -4. 0 6. 8 4.6 18. 0 6. 7 5. 0 6. 0 (-4 .0) (6.8) (2. 1) (18. 0) 0. 9) Middle Atlantic 5. 2 1.5 5. 1 14.6 3. 3 5.9 2. 5 (4. 9 (14. East North Central. 5. 7 (II) 14. 0 1. 9 7.2 2. 7 (12. 4) (16. 4) 0. 9) West North Central 3. 6 if) 26. 7 6. 5 -1. 6 IL 7 . 4 (9) (23. 3) (17. 2) (-1. 2) South Atlantic, upper 6. 6 1..2 27. 1 20. 3 . 3 10. 4 .4 (11). (25. 6) (20. 4) South Atlantic, lower 11. 2 9.8 40. 9 18. 4 k5). 7 16. 7 7. 1 (6.9) (21. 3) (27. 4) (6. 8) East South Central 3. 3 14.6 9.6 2. 1 -Z 1 9.9 -0 (6.2) (5. 2) (17 5) West South Central 9. 4 11. 5 31. 0 18. 5 5. 0 14. 7 4. 8 (10.0) (28. 9) (26. 8) Mountain 15. 2 12. 7 53. 3 fl..1) 40. 3 3. 5 24.7 7. 3 (10. 7) (37. 9) (9.5) (51. 8) Pacific 14. 4 10. 5 26. 9 22.4 11. 3 6. 3 15. 8 10. 3 (8.2) (22. 9) (15.5) (20. 3) (8. 5) Regions Northeast 5. 2 . 3 5. 7 1.5 15. 2 4. 1 5. 7 3. 4 (. 3) (5. 6) (15. 3) (4. 5) North Central 5.1 2. 2 16. 0 10. 3 . 3 7. 5 1. 7 (14. 2) (4. 8) (16. 5) South 8. 4 16..f) 31. 6 10. 2 15. 9 . 47) 13.9 4. 0 (21. 9) (24. 0) 0.0 West 14.6 /IS) 28. 8 it.1) 16. 3 5, 2 17.3 9. 1 (8.8) (24. 0) (12.8) (25. 7) (7. 7)

United States 7.6 5. 1 16. 5 9. 1 14. 4 2. 3 10.1 3. 9 (3. 5) (13. 9) (6. 0) (19.6) (3. 3)

I The divisions are defined as follows: New England: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. Middle Atlantic: New York, New Jersey, and Pennsylvania. East North Central: Ohio, Indiana, Illinois, Michigan, and Wisconsin. West North Central: Minnesota, Iowa, Missouri, Plorth Dakota, South Dakota, Nebraska, and Kansas. South Atlantic, Upper: Delaware, Maryland, District of Columbia, and West Virginia. South Atlantic, Lower: Virginia, North Carolina, South Carolina, Georgia, and Florida. East South Central: Kentucky, Tennessee, Alabama, and Mississippi. West South Central: Arkansas, Louisiana, Oklahoma, and Texas. Mountain: Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Utah, and Nevada. Pacific: Washington, Oregon, California, Alaska, and Hawaii. Source: Richard L. Forstall, "Population Change in American Cities, 1960-1965, "Municipal Year Book, 1966" (Chicago, Ill.: International City Managers' Association, 1966), p. 35.

7 Table 7-Urban Areas: Rate of Growth 1960-65 by Population Size and Region [Population figures in thousands!

Region and item 20,000 to 50,000 to 100,000 to 150,000 to 250,000 to 500,000 to 1,000,000 Total 50,000 100,000 150,000 250,000 500,000 1,000,000 or more

UNITED STATES: Number of UA's 365 127 48 48 43 23 24 678 Population-1960 10,390.9 7, 858. 8 5,442. 7 8, 394. 1 13, 569. 1 14, 497. 4 66, 435 . 1 126, 588. 1 1965 11,175. 5 8, 511.0 5, 898. 5 9, 287.0 14, 900. 0 16, 210. 5 72, 975 . 0 138, 957. 5 Percent increase, 1960-65 7. 6 8. 3 8. 4 10. 6 9. 8 11. 8 9 . 8 9. 8 New England: Number of UA's 19 9 4 3 4 2 1 42 Population-1960 504. 5 539. 7 504. 6 505. 7 1, 598. 3 1, 626. 5 3, 37 2. 8 8, 652. 1 1965 514. 0 571. 5 514. 5 534. 0 1, 684.0 1,735.0 3, 54 O. 0 9,093.0 Percent increase, 1960-65 1. 9 5. 9 2. 0 5. 6 5. 4 6. 7 5. 0 5. 1 Middle Atlantic: Number of UA's 53 14 6 6 5 2 4 90 Population-1960 1,571. 7 958. 5 711.9 1,236.0 1,563.4 1,182. 7 22, 5 79. 5 29, 803. 7 1965 1,599. 5 980. 0 746. 0 1, 246. 0 1, 656.0 1,250.0 23,9 90.0 31,467. 5 Percent increase, 1960-65 1. 8 2. 2 4. 8 .0. 8 5. 9 5. 7 6. 2 5. 6 East North Central: Number of UA's 58 28 14 8 6 5 5 124 Population-1960 1, 627. 8 1,702. 7 1, 598. 1 1, 493. 4 2, 026. 8 3, 258. 9 15 , 250. 5 26, 958. 2 1965 1,714. 5 1, 804. 5 1, 683. 0 1, 629. 0 2, 149.0 3,600.0 16 ,285.0 28,865.0 Percent increase, 1960-65 5. 3 6.0 5. 3 9. 1 6. 0 10. 5 6. 8 7. 1 West North Central: Number of UA's 39 8 5 2 4 3 61 Population-1960 1,140. 7 493. 5 579. 9 310. 6 1,303. 1 4, 518. 4 8, 346. 2 1965 1,223.0 532. 0 626. 5 330. 0 1, 395.0 4, 925.0 9,031. 5 Percent increase, 1960-65 7. 2 7. 8 8. 0 6. 2 7. 1 9.0 8. 2 South Atlantic, Upper: Number of UA's 11 3 1 2 1 2 20 Population-1960 373. 5 175.0 126. 6 445. 0 318. 7 3, 690. 1 5,128. 9 1965 372. 0 177. 5 121.0 449.0 355.0 4, 215.0 5, 689. 5 Percent increase or decrease (-)1960-65 -O. 4 1. 4 -4. 4 0. 9 11. 4 14. 2 10. 9 South Atlantic, Lower: Number of UA's 57 18 5 13 6 2 2 103 Population-1960 1,572.8 1,120. 4 542. 3 2, 260. 5 1, 868. 2 1,035. 2 2, 223. 1 10, 622. 5 1965 1,761.0 1,280.0 593. 5 2, 552.0 2, 138.0 1,180. 5 2, 730.0 12,235. 0 Percent increase, 1960-65 12. 0 14. 2 9. 4 12. 9 14. 4 14.0 22.8 15. 2 East South Central: Number of UA's 26 10 3 2 4 3 48 Population-1960 755.0 611. 5 343.0 346. 4 1,288. 2 1,987.9 5, 332.0 1965 828.0 648. 5 431. 0 387. 0 1, 403. 0 2,150. 0 5, 847. 5 Percent increase, 1960-65 9. 7 6. 1 25. 7 11. 7 8.9 8. 2 9. 7 West South Central: Number of UA's 46 16 4 5 6 4 2 83 Population-1960 1,268. 4 1,052.0 470. 5 830. 7 1, 692. 9 2, 573.0 2, 274.0 10, 161. 5 1965 1,372. 5 1,138. 5 523.0 949.0 1, 861. 0 2,900.0 2,770.0 11,514.0 Percent increase, 1960-65 8. 2 8. 2 11. 2 14. 2 9. 9 12. 7 21.8 13. 3 Mountain:

Number of UA's 22 7 3 3 3 1 1 40 Population-1960 657.0 397. 5 293. 5 400. 2 919. 5 619. 6 858, 3 4, 145. 6 1965 719. 5 461.0 339. 0 555.0 1, 115.0 810. 0 1, 035.0 5 034. 5 Percent increase, 1960-65 9. 5 16. 0 15. 9 38. 7 21. 3 30. 7 20. 6 21. 4 Pacific: Number of UA's 34 14 3 4 4 4 4 67 Population-1960 919. 5 808.0 272. 3 565. 6 990.0 2,213. 6 11, 668.4 17,437. 4 1965 1,071. 5 917. 5 321.0 656.0 1,144.0 2, 585.0 13, 485. 0 20, 180.0 Percent increase, 1960-65 16. 5 13.6 17.9 16. 0 15. 6 16. 8 15. 6 15. 7

t Urban Areas (UA's) are Rand McNally "Metropolitan Areas" (RMA's) and Urban Concentrations. Source: Derived from published and unpublished data developed by Rand McNally & Company.

smaller categories (20,000 to 150,000) are growing Total UA population change for the five-year pe- at a rate below the national increase; indeed, the riod was well below the national average in three smallest growth rate occurred in the smallest popula- regions, New England, Middle Atlantic, and East tion class. North Central, and somewhat below theaverage in The remaining population classificationsgrew at the West North Central region. The East South Cen- rates more or less paralleling the nationalaverage. tral division had a rate comparable to that of the na- Nonetheless, even though the largest urbanconcen- tion. Above average growth was registered in the re- trations had a growth rate onlyon a par with the maining regions with the lower South Atlantic, Moun- national average, they accounted forno less than 52.9 tain, and Pacific divisions making the greatest gains. percent of the total increase in Urban Area (UA) It should be emphasized that percentage population population between 1960-1965. As indicated by the changes for regions presents a rough picture which following distribution, the proportion of the totalin- obscures a wide range of intraregional variation crease going to the other population classifications among urban areas. was farless:500,000 to1,000,000-13.8 percent; Turning to the regional growth patterns for dif- 250,000 to 500,000-10.8 percent; 150,000to 250,000- ferent size UA's, the smallest category (20,000 to 7.2 percent; 50,000 to 150,000-9percent; and 20,000 50,000) produced above national rates of growth in to 50,000-6.3 percent. five regional divisions: the lower South Atlantic, East 8 South Central, West South Central, Mountain, and brief analysis, the approach developed by the Inter- Pacific regions. In short, small urban areas have been national City Managers' Association in its Municipal growing at greater than average ratiosin the broad Y ear Books will be relied upon, since it focuses on the geographic curve that begins in Virginia, swingsdown economic activities actually going on in the various through the Old South and Southwest, and ends up municipalities. on the West Coast.Medium-size urban categories Over the past 20 years or more, the ICMA has pre- (50,000 to 250,000) follow exactly the sameSouth- sented an economic or "functional" classification of east to Pacific arc in terms of regionshaving greater cities over 10,000 population in various editions of its than national growth areas. Moreover, with but two Municipal Y ear Book. The 1967 edition of the Y ear UA subcategory exceptions, the regional rates ofin- Book contains classification data based on the 1963 crease for these medium sizeurban areas were greater Manufacturers and Business census in conjunction than their counterparts in the 20,000 to 50,000 class. with data from the 1960 Census of Population.5 Comparison of regional growth rates for thelarger The number of cities and other places of 10,000 or urbanconcentrations(250,000to500,000and more classified by ICMA totals 1,849. These urban 500,000 to 1,000,000) reveals a somewhatsimilar geo- communities were divided into functional types, on a graphic pattern of above-average increases.Only the basis of the dominant economic activities carried on lower rates for the East South Centraldivision pre- within their corporate limits. The survey determined vents an exact duplicationof the same crescent- the economic classification for nearly all of the types of shaped pattern that emerged forthe smaller cate- cities by the number of persons employed in four main gories. Finally, for the largest group(one million and categories:manufacturing,retailtrade, wholesale over), a slightly different regionalclustering arises trade, and selected services. The "aggregate employ- with those in the upper and lowerSouth Atlantic, ment" or combined total of the four categories does not West South Central, Mountain, andPacific regions include employment in mining, transportation, public expanding at a rate exceeding the national average administration, and other such activities not reported for the five-year period. by the Census of Manufacturers and Business. The Turning to the regions that uniformly producedbe- comparatively few cities (122) in which these activi- low average growth rates for thevarious UA cate- ties constituted the dominant economic effort were gories, another interregional arc emerges, swinging determined by labor force data from the 1960 Census from rural Maine through the southern NewEng- of Population. landMiddle AtlanticGreat Lakes manufacturing While fully recognizing that this approach does not belt, continuing through the wheat producing regions reveal the full profile of each municipality surveyed, of the Plains States, and ending up in rural North it is the most sophisticated method available and has Dakota. produced a classification system that has been ex- While the foregoing stresses the relatively greater tensively relied upon for more than two decades. Un- growth rates of the southern and western sectors (the der this ICMA system, the following economic mu- lower South Atlantic, East and West South Central, nicipal types emerge: Mountain, and Pacific States), certain striking facts relating to absolute population figures also stand out. Manufacturingwhere 50 percent or more of the aggre- They contained more than half of the Urban Area gate employment is in manufacturing and less than 30 percent in retail trade ; population living in the middle range of cities (50,000 Industrialwhere 50 percent or more of the aggregate to 1,000,000) although they accounted for only 39.4 work force is in manufacturing and over 30 percent is in percent of the total population in Urban Areas retail trade ; (20,000 and above). This seeming paradox mainly Diversified-Manufacturingwhere employment in manu- reflects the fact that these two geographic sectors con- facturing is greater than that in retail employment, but less tain only 27.4 percent of the urban population living than 50 percent of the total employed in the four major categories ; in areas of one million or more. Diversified-Retailingwhere employment is greater in retailing than manufacturing, but manufacturing accounts for CITIESTHEIR BASIC ECONOMIC FUNCTIONS at least 20 percent of the total in the big four ; An economic classification of cities provides addi- Retailingwhere retail employment is greater than manu- tional insights into the nature of the urbanization facturing or any other component of the aggregate work force, process, especially when it includes a breakdown ac- and manufacturing is less than 20 percent ; Dormitorywhere aggregate employment is less than 67 cording to size, regional location, and metropolitan percent of the resident labor force engaged in activities cited status. While a number of studies provide an econom- above and below. ic classification of cities, most of them rely exclusively on census data describing the traits of persons re- A small group of 122 are classified as "specialized siding in urban jurisdictions. For the purposes of this cities" in the survey and include those in which some 9 unusual economic activity forms the principalsupport tral region, 547 (29.6 percent) ; the South 453 (24.5 of the community, suchas: percent) ; and the West 289 (15.6 percent). Wholesalingwhere employment in this trade constitutes Cities classed as manufacturing constitute the most at least 25 percent of the aggregate employment ; common single type, comprising 569 out of the total Miningwhere the resident labor force in mining is greater of 1,849 cities surveyed. With the exception of special- than that in manufacturing or retail trade; ized city types, the smallest number were found in the Transportationwhere the resident labor force in transportation is greater than that either in manufacturing orre- industrial category and most of these were relatively tail employment ; small urban places. Diversified-manufacturing cities, Resortwhere the employees in entertainment, recreation, the fourth largest group, were more strongly repre- and personal services, but not in private households, totals sented among large cities than smaller ones, with 15 more than the manufacturing or retailing employment ; Governmentwhere the resident labor force in public ad- of the 27 over 500,000 population falling in this cate- ministration and armed forces outnumbers the combined gory. The third largest classthe diversified-retailing manufacturing and retail employment and is greater thanany citiesnumbered 249, but included only four in the other category and also where public personnel exceed the over 500,000 population bracket. Retailing cities, the military. fifth largest class, are concentrated in less industrial- Armed Forceswhere the resident armed forces constitute more than 50 percent of the resident labor force, or outnum- ized regions and include smaller municipalities. The bers the combined employment in manufacturing and retail- 404 dormitory cities, the second largest,are made up ing and is more than 20 percent of a city's total population; largely of suburban communities in which localem- ProfessionalWhere the resident labor force in professional ployment is subordinate to commuting. Most of these activities( other than health and education) exceedsmanu- facturing or retail employment ; are small with only 53 numbering over 50,000 in population. Hospitalwhere the hospital labor forcesurpasses that in either manufacturing or retailing ; The ten categories making up the specialized cities Educationwhere educational employees outnumber those totaled about 7 percent of the cities classified. The in the two major sectors; three largest clusters in this special group are the col- Servicewhere employment in selected services isat least lege townstotaling 50; the wholesaling citiesnum- 30 percent of the aggregate and wherea city does not qualify for any other category. bering 18; and the armed forces communities (19). It should be noted, however, that 54 other citieshad Table 8 shows the number of cities over 10,000 armed forces residents constituting mom than 20per- population by regions and SMSA's classified by basic cent of the working force. economic function. The Northeast region contains 560 The ICMA study also reveals important differences (30.3 percent) of the cities tabulated; the North Cen- in the regional distribution of the different functional types. Eighty percent of the manufacturing cities are Table 0Functional Classification of Cities Over 10,000 and in the Northeast or North Central regions, accounting SMSA's by Region,' 1963 for 44 percent and 37 percent of their respective totals. Similarly, more than three-quarters of the in- North-North Economic function east CentralSouth West TotalSMSA's dustrial cities are found in these two regions. On the other hand, manufacturing and industrial cities com- Manufacturing 245 201 90 33 569 98 bined account for only 22 percent of the cities in the Industrial 28 30 10 6 74 7 DiversifiedMa nufacturing.___ 61 63 85 25 234 62 South and only 13 percent in the West. Cities in the DiversifiedRetailing 34 55 103 57 249 43 Retailing 16 36 74 71 197 7 diversified-manufacturing category are more evenly Dormitory 156 133 53 62 404 0 distributed among the regions, accounting for 9 to 12 Specialized: total 20 29 38 35 122 9 percent of those in three of the regions and 19 percent Wholesaling 5 2 5 6 18 0 Services 0 0 2 3 5 0 of all cities in the South. Mining 0 3 4 3 10 2 Transportation 1 1 2 2 6 0 Few cities in the diversified-retailing and retailing Resort 0 0 1 2 3 2 Government 1 1 4 2 8 1 categories are found in areas where manufacturing Armed Forces 7 2 6 4 19 2 Professional 0 0 0 2 2 0 and industrial centers are common. On the other Hospital 0 1 0 0 1 0 Education 6 19 14 11 50 2 hand, thirty-eight percent of all the cities in the South

Total 560 547 453 289 1, 849 226 and 44 percent of those in the West were in these two categories. In both cases, they form the most impor- Regions are defined as follows: Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New tant single functioning grouping. York, Pennsylvania, Rhode Island, Vermont. North Central: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, Dormitory cities were most common in the North- Nebraska, North Dakota, South Dakota, Wisconsin. South: Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, east and North Central regions, constituting 28 per- Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Ten- nessee, Texas, Virginia, West Virginia. cent and 22 percent of the respective totals. Such West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, Wyoming. communities comprised a much smaller proportion of Source: ICMA, "The Municipal Year Book, 1967" (Chicago, Illinois, 1967) p. 40. Southern and Western cities. Specialized cities are somewhatmore common in With only one manufacturing city, Florida hasa the West (12 percent of all cities) and the South(8 lower percentage for this category thanany other percent), than in the Northeast (4 percent)or North State east of the Mississippi. Seven of its 49 cities, Central regions (5 percent). Cities in the education however, are classed as dormitory in basic function. subcategory are most frequent in the North Central While highly urbanized, industrial development clear- division and, surprisingly,more armed forces com- ly is much less prominent in Florida than resort,communities are found in the Northeast than inany other region. The frequency distribution of citiesin the mercial, and defense activities. other specialized categories revealsno particular re- The South Central region, comprising Mississippi, gional pattern. Missouri (except for metropolitan St. Louis) Arkan- Of the 226 SMSA's shown in Table 8, sas, Louisiana, Kansas, Oklahoma and Texas, has nearly half only a little over 10 percent of its cities in the (46 percent) are classifiedas manufacturing or indus- manu- trial. A little over one-fourth (27percent) are in facturing or industrial categories. The diversified- diversified-manufacturing and slightly less than retailing city is typical for this region. As in the one- Southeast, large suburbsare not common, though fifth (19 percent) in diversified-retailing.Only 3 percent are in retailing, while the specialized categories some (14) have developed in the area's large and rapidly-growing metropolitan complexes. account for only 4 percent of the metropolitanareas surveyed. The Northern Great Plains (including Nebraska) and the Mountain States (except for Nevada)com- In general, the economic classification of SMSA's prise a vast region for 10 States. Not parallels that of cities of 100,000 one of the 97 or more. Two quali- cities over 10,000 in this combined fications should be noted however:more SMSA's fall area falls in the manufacturing or industrialgroup, however. Urban in the manufacturing category than largecities per se, and somewhat fewer in the diversified-manufacturing centers in this area are usually regional tradingcen- group. ters having little manufacturing. Its six dormitory cities are adjacent toa few of the major metropolitan The sharply contrasting regional patterns of the centers. manufacturing, industrial, and dormitory functional The Pacific Coast, including Nevada'sfew cities, types prompted Rand McNally researchers to explore has 49 of its 218 cities in the the regional and subregional variations ingreater manufacturing-industrial categories. But a markedcontrast emerges between depth.6 They found that the dominant region for the Los Angeles-San Francisco Bay manufacturing, industrial, and dormitory cities isa metropolitan areas and the rest of the region. In thesetwo major metro- manufacturing belt, comprising the Northeast and politan areas, the proportion of Great Lakes States, plus Minnesota, Iowa, St. Louis manufacturing-industrial cities amounted to 43percent, comparable to and sub.urbs in Missouri, Kentucky, WestVirginia, that in the Southeast. Like othermetropolitan areas Maryland, Delaware, and the District of Columbia. across the country, a high proportion (40 percent) of Involving more than the Northeast and North Central all cities within thetwo areas fall in the dormitory regions as defined by the Census, thisarea includes class. This reflects the restrictive 512 (80 percent) of all manufacturingor industrial annexation laws in California and concomitantfragmentation of local cities, and 289 or 72 percent, of alldormitory cities. government. In the remainder of the Pacificregion, Manufacturing or industrial cities comprise 65per- there are only cent of all cities in this northern seven manufacturing or industrial crescent, when dor- cities, a lower proportionthan for any other mitory cities are excluded. Thishigh proportion is area, save for Florida and the Plains-Mountaingroup. maintained in nearly all sectionsof theregion, though transitionareas in which manufacturing- To sum up, manufacturing is the dominanteco- industrial citiesare not as common appear on the nomic activity of a high proportion of individual cities in the Northeast and Midwest. A moderate western edge (southern Illinois, Iowa), thesouthern con- rim (Kentucky, West Virginia,Maryland), and in centration of manufacturing-oriented communities is areas of the Northeast (upstate New York). found in the Southeast and in the Los Angeles and The southeastern section of Virginia,the Carolinas, San Francisco urban areas on the West Coast. Few Georgia, Alabama, and Tennessee has 67manufac- are found in the rest of the country, with almost none turing or industrial cities,or close to half of the non- in Florida, the Great Plains, and the Mountain region. dormitory cities surveyed in this sPecialanalysis. Dor- The ICMA analysis also disclosed significant vari- mitory cities, in contrast, numberonly 15. This region ations in city-size for the various economic types.' then has many highly industrializedsmall cities, but Diversified-manufacturing cities tend to be very large, few large metropolitan complexes andfew large in- with nearly half of the cities over 250,000 assigned corporated suburbs. Dormitory suburbsare relatively to this category. Only 21 percent in the 100,000 to uncommon. 250,000 bracket and 15 percent in the 50,000 to

11 100,000 class have this functional designation. Large density ratios. A second form results frommore in- cities then rarely get that way without substantial tensive development extending out from built-up manufacturing.Witnessthefactthat only one areas along major highway routes. Space between the retailing city had a population over 250,000. Large strip development is underdeveloped and publicserv- cities also "tend toward an approximate balance be- ice costs usuallyare more expensive to provide in tween the various economic activitiesa balance less strip sprawl than in low density urban sprawl. Finally, likely to be found among smaller cities." 8 Middle- sprawl also is characterized by leapfrog developments size cities (50,000 to 250,000) on the other hand, ac- where relatively compact urbanization takes place, count for a greater share (about 37 percent) of the but surrounded by substantial undeveloped land. manufacturing category. Only 30 percent of those Such development usually requires thegreatest initial below 50,000 fall in this functional class and 28 per- capital expenditures for urban services. cent in the over 250,000 bracket. Sprawl is not a static phenomenon. Eachyear ap- On the basis of these various findings, it appears proximately 400 to 500 thousandacres, most of which that cities with significant manufacturing activities are in the outskirts of metropolitan areas,are with- combined with a balanced blend of other economic drawn for urban land uses." Whilethis land con- pursuits tend to be large. Cities dominated by manu- sumption is only roughly 0.034percent of the total facturing tend to be medium-sized. Cities serving as area of the continental United States, unplanned de- local retailing or specialized centers, with little to velopment, scattered in randomand leapfrogging moderate industry, tend to be small as do cities that fashion over the countryside,destroys natural open serve as dormitory communities. space needed for the growing demand for recreation Finally, in terms of the location of these functional and other purposes. Furthermore,itspirals public types in the intricate mosaic of urban America, cen- service costs forsewer and water lines and school bus tral citiesas might be expectedare far more likely transportation, and frequently destroysany possibility to be of the diversified-manufacturing type (and rare- for an efficient and economicmass transit system. ly retailing), than suburbs or separate "urban places." Marion Clawson has succinctlysummarized thecase Manufacturing as such is found commonly in all three against sprawl: 12 urban categories. Diversified-retailing, retailing, and (1) A sprawledor discontinuous urban development is specialized activities tend to be more characteristic of more costly and less efficient thana compact one....(2) the independent urban centers("nonmetropolitan Sprawl is unesthetic and unattractive.(3) Sprawl is wasteful urban places" ), while the dormitory function, not of land since the intervening landis not specifically used for surprisingly, falls heavily to the suburban group. anypurpose. (4) Land speculation is unproductive,absorbing capital, manpower andentrepreneur skills withoutcommen- surate public gains....(5) It is inequitable to allowa sys- THE PROBLEM OF SPRAWL tem in which the new land occupier isrequired to shoulder such a heavy burden of capital chargesor debt merely for site The earlieranalysis ofcentralcities,suburbs, costscosts which in large partare unnecessary and avoid- gtmetropolitan remainders," and "nonmetropolitan able. urban places" (along with annexations) at leastsug- Other writers, however, pointout that sprawl is a gests that the process of urbanization does not always form of normal growththat occurs ata particular produce a painless, planned, and productive landuse point in time. Such scatterization,they argue, actually pattern on the urban perimeter. may provide flexibility in urban development anden- The term "sprawl" is frequently used to describe courage efficient adaptation to change. Uniform com- much of the land development now taking place at pactness of development "should no longer....(be) the periphery of expanding urban areas. This pattern ...accepted unquestioningly as a planning ideal, is characterized by substantial bypassed tracts of raw and scatter... nolonger categorically rejected as a land between developingareas and a scattering of device of the devil." 13 urban development over the rural landscape. As Jean Robert 0. Harvey and W. A. V. Clark suggest that Gottman put it : "Where two cities are close together anotherimportantcharacteristicof sprawlthe the intervening rural space becomes covered withnew choice of different housing opportunities relative to developments. This kind of leapfrogging sprawl out- other alternativesmust be considered, notwithstand- flanks some farms while it covers others." 9 ing its alleged and real costs." Sprawl may occur with three types of physical de- Sprawl, by any definition, refers to settled areas no matter velopment.'° It may result from a very low density what their characteristics may be. Accordingly, at the time development of a large area, where single family the sprawl occurred, the cost was not prohibitive to the settler. homes are built on lots of two to five acres, or more. It provided a housing opportunity economically satisfactory relative to other alternatives. If sprawl were in fact economi- This low density sprawl consumes large amounts of cally unsound, it would occur only by the action of housing land that some argue should be developed at higher seekers artificially restricted from free compacted markets, but

12 who could and would pay a premium for freedom to be found posals for tax reform are many and varied, but most only in the sprawl. Sprawl occurs, in fact, because it is eco- focus on the market mechanism and seek to make nomical in terms of the alternatives available to the occupants. private building decisions work for orderly planning The fact that a number of public services may be and development. lacking, or that the journey to work has been length- Whatever courseis chosen to encourage better ened is apparently of little concern to most ofus. As urban land development and to discourage further Raymond Vernon observes: 15 sprawl, two factors having significant bearing on ". .for all the course of protests, however, most Ameri- future urbanization policy should be recognized.17 cans seem strangely unaroused. Each year they buy a few hundred thousand picture windows; feed a few hundred (1) The present pattern of land use development results thousand more lawns. The decay of the central city barely con- from the individual actions of many decisionmakerscon- cerns them; the cries of strangling congestion stirs them only sumers, builders, landowners, developers, financial institutions, briefly; even the issue of mounting taxes, an exposed nerve in industry, commerce, and public agencies. If the urbanization process is to be structured in ways different from the past, the the structure of local politics, does not seem to have the perceptions and expectations of each factor will have to be capacity to bring them shouting into the streets. ...The striking disparity between the literature of protests and the affected, if not changed. lethargy of the citizen is a riddle which demands an answer. (2) Public bodies have a residue of as yet unutilized powers What I shall contend in substance is that the clear majority of to influence the growth and structure of an area. Programing Americans who live in urban areas look on their lifetime ex- and development of public facilities creates an envelope within perience as one of progress and improvement not as retrogres- which urbanization takes place. The timing, location, and sion ; that they see their lot as being better than that of their scope of public investment decisions influence, if not shape, parents and confidently expect the children to do a little the physical form of the region. better still." URBAN PROJECTIONS Nevertheless, increasing populationpressure has been and is spoiling the dream. Some suburbancom- Population projections for the United States antici- munities have reacted by adoption of insular policies. pate an increase of approximately 83 percent by the To stem population growth these communities have end of the century. According to one study, by the adopted land use controls that, in effect, build fences year 2000 the total U.S. population is expected to around the large central cities. Some suburban zoning reach 314 million persons.18 This increase will besus- practices have tended to bar lower cost housing by tained largely by natural increases with only one-tenth increasing residential minimum lot sizes to the point to one-eighth of the net national population growth where only upper middle income familiescan afford coming from immigration. In terms ofrace, the non- the houses built on them. Such policies tendto pro- white population will increase by 123 percent, the duce fiscal disparitiesamong local jurisdictions in white by 67 percent. The total white population is metropolitan areas. No fiscal prognosis ofsuburban projected to drop from 89 percent to 85 percent of areas is valid, however, that lumps together all subur- the total population in 2000 while the nonwhite will ban jurisdictions. Anyone familiar withthefiscal increase from 12 percent to 15 percent. landscape of suburbia is keenlyaware of the fact that As shown in Table 9, this population growth will it does not presenta uniform picture of affluence. On continue to be almost wholly urban, as it has for the the contrary, suburbia fairly bristles withcontrasts between rich, poor, and balanced jurisdictions;16al- though it is true that suburbia containsmuch of the Table 9Past and Projected Population, United States, Urban wealth and income of the nation. and Rural, by Color, 1950-2000 The battle against sprawl has been joined ina few Population in thousands Percent communities across the country. These jurisdictions Total White NonwhiteWhite Nonwhite offer a method or strategy of attack. Some suburban 1950 Census 151, 326 135, 150 16, 176 89. 3 10. 7 localities have adopted cluster-zoning techniquesto Urban 96, 847 86, 864 9, 983 89. 7 10. 3 Rural 54, 479 48, 286 6, 193 88. 6 11. 4 preserve open space for the community and to cut Percent urban (64. 0) (64. 3) (61. 7) 1960 Census 179, 323 158, 832 20, 491 88. 6 11. 4 costs for the homeowner and builder. Others have Urban 125, 269 110, 428 14, 840 88. 1 11.9 Rural 54, 054 48, 403 5, 651 89. 5 10. 5 adopted planned-community zoning techniquesto Percent urban (69. 9) (69. 5) (72. 4) 1967 estimate 197, 900 174, 000 23, 900 87. 9 12. 1 permit a mixture of residentialuses and also to allow Urban 144, 000 125, 800 18, 200 87. 4 12. 6 Rural 53, 900 48, 200 5, 700 89. 4 10. 6 commercial and even industrialuses on the same Percent urban (73. 0) (72. 0) (76. 0) 2000 projection 314, 000 267, 000 47, 000 85. 0 15. 0 tract. Privately developed new communities suchas Urban 266, 000 223, 000 43, 000 83. 8 16. 2 Rural 48, 000 44, 000 4, 000 91. 7 8. 3 Reston, Virginia, and Columbia, Maryland, alsoare Percent urban (85. 0) (83. 5) (91. 5) advanced as an alternative to sprawl. Sources: U.S. Bureau of the Census. U.S. Census of Population: 1960. General Popu- Another approach is directed toward reforming the lation Characteristics, United State Summary (Final Report PC (1)-1B. (Washington : Government Printing Office, 1961.) Table 43. 1967 estimate from U.S. Bureau of Census real estate tax which presently and generally under- publication P-25, No. 381 and 384. Year 2000 estimate from aggregated data in Jerome P. Pickard "Dimensions of Metropolitanism," Urban Land I nstitute Research Mono- assesses vacant land, encouraging speculation. Pro- graph 14 (Washington, D.C.:1967).

13 past two decades. The rural population will account Michigan to Green Bay, Wisconsin, will contain 60.8 for only 15 percent of the total population or ap- million people. Linked with the East Coast megalopo- proximately 48 million. Although net migration will lis, this will form a Metropolitan Belta super-mega- continue to swell the ranks of people in urban and lopolis of 128.7 million people. A Pacific Coast com- metropolitan areas, current and future growth will plex will consist of 44.5 million people, located along largely come from the natural increase of people a 500 mile distance between San Francisco through living in these areas. In other words, the country's Los Angeles to San Diego. Finally, the fourth major

1 metropolitan areas already contain a built-in factor urban region will be comprised of 13.8 million people to sustain great future growth. all within Florida. This belt of urban cities will ex- Present projections for individual metropolitan and tend 350 miles along the Atlantic coast between Jack- urbanized areas suggest that a major share of all na- sonville and Miami and will move westward across tional population growth will fall to the largest urban the Florida Peninsula to the Tampa-St. Petersburg areas.19 Projected data for separate areas indicate metropolitan areas. that 27 urbanized areas will hike their population by Another 52 million people will be living in 14 over 65 million during the remainder of the century smaller urban regions and five metropolitan areas, and thereby be responsible for more than three-fifths according to Urban Land Institute projections. These of the net national increase. These 27 include all of smaller urban regions added to the four great regions the 18 largest future metropolitan centers (each with will total 241 million persons or 77 percent of the a population of two and one-half million or more by population. These regions will occupy 11 percent of 2000) along with nine other areas that are presently the nation's land* which is likely to be 30 times more projected to have population gains of 750,000or densely populated than small town and rural areas. more. In terms of regional focus, the South and West will THE DYNAMICS OF MOBILITY AND benefit most from this growth and with the establish- MIGRATION ment of new metropolitan areas. The older metropolitan belt stretching from the northeast to the upper The evolving drama of American urbanization indeed the very settlement of the continent itself Mississippiwillexperiencelessdynamicurban growth. This futuristic treatment of metropolitan has been critically influenced and enriched by developments relating to mobility and migration. Con- areas should not obscure the estimate that a sizeable trary to popular impression, the proportion of Ameri- urban population will reside outside of metropolitan concentrations of more than 100,000 personsap- cans who moved from their state of birth during the decade 1950-1960 was not greater than ever before. proximately 12 percent of the total in year 2000. The census figures for more than a century indicate Finally, some forecasters see in this future urbaniza- only slight shifts over each decade in the percentage tion pattern a tendency toward megalopolitan con- of persons living in a State other than that of their centrations. Before describing these estimates, how- birth: 21 ever, it should be noted that these projections are Percent Percent based on the continuance of certain existing trends; 1850-1860 11 1910-1920 7 they tend to ignore other existing trends, notably in 1860-1870 8 1920-1930 7 the South (outside of Florida) and the Southwest. 1870-1880 7 1930-1940 4 Most important, for purposes of this Report, they pre- 1880-1890 6 1940-1950 9 1890-1900 7 1950-1960 9 sume the maintenance of a basically laissez-faire role 1900-1910 7 by government and industry with respect to future Recent decennial interstate migration figuresare urban growth patterns. slightly higher than they were during the period According to Urban Land Institute projections, 131 of 1860-1940 but do not match pre-Civil War levels. million people, 55 percent of the U.S. population, The dip in the rate of movement during the Depres- will live in four great urban regions by 1980 and, by sion years probably can be attributed to the fact that 2000, over 187 million or 60 percent of the country's many persons had no money to move and, more im- population." These four major urban regions, it is portant, no place to move-to with any hope of better estimated, will absorb most of the population growth employment opportunities. The decade beginning from the present to year 2000. with World War II, however, began a mobility trend The largest region will be a 500 mile corridor con- which continued up to the last census. taining 67.9 million people along the Atlantic Sea- The interstate figures conceal the full extent of mi- board, stretching from Boston to Washington, D.C. gration, however. If all the moves made from year to The second chain of cities extending nearly one year are considered, we find recently that for each thousand miles from Utica, New York, west to Chi- cago and north along the western shore of Lake *Excluding Alaska and Hawaii.

14 FIGURE 3

MOVERS BY TYPE OF MOBILITY AS PERCENT OF THE POPULATION 1 YEAR OLD AND OVER, FOR THE UNITED STATES: APRIL 1948MARCH 1967 Percent Percent

22.5 22.5

IIIIIIIIITOTAL MOVERS

20.0 20.0

17.5 17.5

15.0 INTRACOUNTY MOVERS 15.0 /kb _..0110 411 mo ED Am. . MI= me=N.Imm I % % 0.0 ".1. '46 %00. 12.5 12.5 loa,

10.0 10.0

MIGRANTS 7.5 7.5

888 seggnsiossiovillommoseseeseessliestsgt8148, all0118 88 I 1111111.110 884101111- 8888ftesseessmilmoseelsitessosts°81/18.11,0111111"14148#821111111

5.0 5.0 INTRASTATE MIGRANTS 1+"`""*AWASS"*.r.,..re:::::::77"- 2.5 2.5 NININTERSTATE MIGRANTS

0 1947-1948-1949-1950-1951-1952-1953-1954-1955- 1956-1957- 1958-1959-1960-1961-1962-1963-1964-1965-1966- 1948 1949 1950 1951 1952 1953 1954 1955 1956 19571958 1959 1960 1961 1962 1963 1964 1965 1966 1967

Source: U.S. Department of Commerce, Bureau of the Census, "Current Population Reports," "Population Characteristics," Series P-20, No. 171, April 30, 1968, cover. year one in every five Americans shifts his place of another State. Mobility, then, is mostly short distance residence. These moves can be classified on a distance movement, but the short distance from a core city scale beginning with those within a county over to across the line to a suburb can be a light year in terms thosebetween noncontiguousStates.Intracounty of political, fiscal and social significance. moves usually involve a change of residence within commuting distance of a given job. Intercounty shifts PATTERNS OF MOVEMENT outside of metropolitan areas however usually involve The census data from the annual surveys show a a change to a new job. This type of move is defined consistent pattern of net migration into the West. In by the Bureau of the Census as migration and is de- recent years, however, there appears to be some evi- scribed as an intra-State movement. Moves between dence that this has declined in volume. For the period States are of two different kindsthose where mi- between 1964 and 1966, net migration figures for the grants move to contiguous States and those where West indicate an annual average of about 150,000 as relatively long distances are travelledbetween non- compared with a yearly figure of about 500,000 for contiguous States. However, with growth of interstate the 1960 to 1964 period.22 The overall mobility rate, metropolitan areas, even some of this interstate move- however, was still higher in the West than in the ment loses its significance. South, Midwest, and Northeast regions. The recent record reveals a surprising stability in The annual surveys show men to be slightly more the rates for various types of movement. Figure 3 de- mobile than women and nonwhites to be more mobile picts this record for the past 18 consecutive years for than whites. Yet, the migration ratethat is, the rate which the relevant data have been collected. It shows for longer distance movesis higher for the white that about two-thirds of the moves are within the population. The relatively high migration rate for same county; less than one-sixth are to another coun- white persons completing one or more years of college ty in the same State; and less than one-sixth are to and for professional workers suggests some relation-

15 ship between higher socio-economic status and mi- ral increases, as Table 10 indicates, accounted for gration. On the other hand, unemployed men also more than three quarters (78 percent) of metropoli- had a relatively high rate of migration. tan population growth during the period 1960-1963, In terms of age groups, young adults (18-34 years) while net migration accounted for 22 percent of the have a much higher total mobility rate than persons aggregate net growth. These proportions differ signifi- 33 years or older. Surveys for 1964-1966 show that cantly with the 63 percent-33 percent breakdown for young adults have a mobility rate of 34 percent as the preceding, 1950-1960 decade. The growing sig- compared with 12 percent for the older group. Young nificance of the natural increase componentcan be adults also move greater distances than their seniors. explained in terms of the larger total part of the With reference to racial groups, the total mobility population that the metropolitan sector is assuming. rate for the four year period for the nonwhite popu- Moreover, as we move through the final third of the lation was 24 percent and for the white population, century, this trend will accelerate, unless there is a 19 percent. The higher rate for Negroes, however, dramatic shift to net out-migration from metropolitan was largely a matter of local moves with 82 percent areas. of the nonwhite migrants making intracounty shifts in contrast to only 64 percent of the white movers. Table 10Components of Population Change, Metropolitan Yet, those nonwhites who moved between noncon- Area, 1960-1965 tiguous States tended to move greater distances than IAD population data in thousands) their white counterpartsreflecting the continuing July 1, 1960-65 Net migration of nonwhites from the South to northern Area I 1965 total Natural Net migration population population increasemigration as percent and western urban centers. change of growth The 1960 Census data show that slightly more than 23 percent of the native population have moved from All metropolitan areas,2 total. 129, 993+11, 025 +8, 589 +2, 436 22 11 largest growth areas 51, 353 +5, 092 +3, 142 +1, 950 38 one State to another at least once in their lifetime23 14 intermediate growth areas 17, 555 +1, 805 +1, 222 +583 32 (as opposed to 9 percent who moved to another State 23 medium growth areas. 17, 684 +1, 669 +1, 259 +410 25 48 growth areas, subtotal 86, 592 +8, 566 +5, 623 +2, 943 34 during the 1930-1960 decade). The former figure in- 11 largest slow growth areas, subtotal 10, 437 +276 +597 32154 cludes children too young to have moved frequently. 141 smaller growth3or de- Overall, there has been remarkably little long-term cline areas, subtotal 32, 964 +2, 183 +2, 369 186 8 change in lifetime migration as gauged by Census. I Definitions: Largest Growth Areas: Metropolitan areas (or consolidated metropolitan areas) with population increase of 200,000 or more in the 1960-65 period; In 1850, the lifetime movement patterns of native Intermediate Growth Areas: Population increase 100,000 to 199,000; Medium Growth Areas: Population increase 50,000 to 99,000. The largest slow growth areas are based born Americans indicated that 76 percent resided in on population size and represent the 11 largest metropolitan areas in 1965 population the State of their birth. The 1960 figure was only 1.3 which had population growth less than 50,000 or declined in population: Pittsburgh Buffalo, Milwaukee, Louisville, Providence, New Haven-Waterbury-Meriden, Albany- percentage points smaller. Schenectady-Troy, Toledo, Akron, Birmingham, and Worcester. 2 All metropolitan and metropolitan county areas, including Middlesex and Somerset The lifetime mobility of persons moving from one Counties, New Jersey, as defined to the end of 1966. a Rochester, New York includes only Monroe County. The other three metropolitan labor market to another, of course, is much higher area counties are included in the smaller growth areas. and is probably greater than that for the last cen- Source: Jerome P. Pickard, "Analysis of Past and Future U.S. Population Growth turyalthough the comparable data are nonexistent. Trends with Emphasis on Urban and Metropolitan Population," October 1967, Mimeo. Nearly seven out of ten family heads are now living in a labor-market area other than the one in which During the five years 1960-1963, the largest metro- they were born, according to the University of Michi- politan growth areas (as defined by Jerome Pickard) gan Survey Research Center." Yet only 21 percent steadily had net migration rates above the average for of these household heads were living 1,000 milesor all other areas. The big eleven had population inmore from their place of birth. The Survey Research creases ranging from a low of 203,000 for Dallas to Center found that 20 percent of allmoves were re- over 1.1 million for Los Angeles-Orange County and turns to a place where the family had once lived, in- of the total increase of 3.1 million a little less than cluding 9 percent to their place of birth. Surveyre- two-fifths (38 percent) resulted from net in-migration spondents were asked whether they would stay in gains. It should be noted that these figures resulted, their present localeor move away, if they had the despite the fact that two of these areasDetroit and choice. Twenty percent indicated they wantedto Chicagoexperienced out-migration losses of 33,000 move, and about half said they actually expected to and 3,000 respectively during this period. All told, in the following year. Those who actually moved, the nine other areas* accounted for over four-fifths however, totaled only 3 percent. (81 percent) of all net migration during 1960-1965

MIGRATION AND URBAN CONCENTRATION *Los Angeles-Orange County; New York-northeast New Jersey; San Francisco-Oakland-San Jose; Washington, D.C.; Urban populations are transformed by two means: Philadelphia; Houston; Miami-Fort Lauderdale; San Ber- natural change and net (in or out) migration. Natu- nardino-Riverside, Dallas.

16 to all metropolitan areas. Since these nine were the (Orlando-48 percent and San Antonio-17 per- same areas that had the largest population growth cent). during the 1950-1960 period, it seems clear that dy- Only three other large growth centers (in the larg- namic population growth and heavy inmigration are est and intermediate groupings) had high (50 per- closely related. cent or more) net migration ratios: Washington, Population gains for the 14 "intermediate" and 23 Atlanta, and Phoenix. And only one other in the "medium" growth areas also benefited from net mi- "medium growth" bracket had a comparable net gration (32 percent and 25 percent of growth respec- migration proportion: Huntsville, Alabama. tively), but obviously not to the extent of the fastest growing. The 11 "largest slow growth areas" and the CAUSES OF MOBILITY 151 in the "smaller growth or decline" category, however, suffered net migration losses (54 percent and 8 From an economic standpoint, it can be argued that everyone who should move would be better off percent of growth respectively)for thefive-year if he did so. Migration to expanding labor-market period. areas from depressed economic enclaves could reduce Detailed analysis of all the metropolitan areas experiencing a population gain of 50,000 or more during unemployment, encourage economic growth, and ease inflationary pressures. Yet, economic analysis clearly the years 1960-1965 reveals a varying migration pat- does not determine human action. A fairly large num- tern. Yet, certain trends stand out: ber of people intend to move, but for various reasons In-migration accounted for a smaller proportion of never make the final decision. Many, who would be the growth in metropolitan areas in the Northeast better off elsewhere, prefer not to move because of and Great Lakes areas. Only six of the 25 largest and intermediate growth areas were in these re- strong family ties, preference for a particular community, or other noneconomic factors. Older persons gions and of these only the New York-Northeast- ern New Jersey and Philadelphia areas benefited with job seniority or accrued pension benefits fre- moderately from in-migrationwith net migration quently are reluctant to move, despite the chance for economic betterment. ratios of 26 percent and 19 percent of total popula- The Survey Research Center has probed a number tion growth respectively. Ten of the 23 "medium of specific factors that condition a person's decision growth areas" were located in these two geographic whether or not to move. These included personal divisions and five of these had modest migration economic ratios (20 percent of growth or more). incentives,differencesinlabor-markets The overall population gains for 28 metropolitan areas, family and community ties, a vested interest in areas, located in the South, Southwest, Mountain homeownership, pension plans and unemployment insurance, and individual attitudinal traits. These de- States, and Pacific Coast, came to 4.7 million or 43 terminants either facilitate or inhibit geographic mo- percent of all metropolitan growth for the five-year bility. The findings of the Survey Research Center period. This gain for these 28 also accounted for 55 percent of the total for the three high growth may be summarized as follows: Personal categories. Two and four-tenths millionor 51 per- EconomicIncentives.Mostofthe centof the 4.7 million was derived from net mi- people surveyed, who indicated a willingness to cross county lines, gave job-related reasons for mov- gration gains. Moreover, as a proportion of the net ing. People in stronger economic positions and hav- migration total for the 48 high growth areas, this ing higher job skills and education tended to be 2.4 million represents 81 percent and with refer- more likely to move for better paying jobs. The ence to all net migrations to all metropolitan areas, it represents more than 99 percent. Finally, all but Survey Research Center found the unemployed three of the four region's 16 areas in the largest only slightly more mobile than theemployed. Heads of families with unemployment experience and intermediate growth categories had net migra- indicated a far greater interest in moving than fam- tion ratios of 50 percent of growth or more. The large metropolitan areas in three StatesFlor- ily heads with steady employment, but most unem- ida, Texas and Californiagenerally had very high ployed families did not move. net migration percentages for the 1960-65 period. Two explanations were offered in the Survey for Eleven areas, located in these States were among the weak relationship between unemployment and the 25 in the "largest" and "intermediate growth" mobility." categories; of these, only one (San Diego) had a First, unemployment rates are highest with low mobility ratio of net migration to total population growth older persons, the less-skilled or less educated, and Negroes of less than 50 percent. Of the four from these all of whom may be induced to move, if at all, only if their joblessness becomes a severe hardship. Second, the low level States in the "medium growth" bracket, two sur- of aggrcgate demand in the period covered by the survey passed the 50 percent mark, but two fell below it meant that the majority of workers was not attracted by job

310-335 0-68-3 17 opportunities elsewhere. The unemployed who did move Homeownership itself may make aperson reluctant were shown to have relatively more education, better skills, or other relatively advantages in a labor market. to move, but the study findings were inconclusive. Some respondents who owned homes and moved Survey Research Center analysts concluded that reported that they did not sellor sold at a loss; people tend to give more economic rationale for their but the researchers foundno way of accurately esti- moves than actually exist. When economic opportu- mating the number of persons who failed tomove nities did influence a move, they motivated those because they could not sell their homes. Little sta- people who already had relative advantages in the tistical evidencewas found that pension rights, labor force. The unskilled and uneducated in general, vested or unvested, or unemployment insurance intended either not to move or if they did, immediate hibited mobility. economic advantages were rarely gained by it. Psychic Factors.The Survey Research Center Economic Differences Between Areas.The study found little or no relationship "between the overall found that areas of high income activity attract in- probability that a person willmove and either of migration, while on the other hand, areas of low the two measures of personality thatwere consid- economic activity do not encourage extensive out- ered (1) the sense of personal effectiveness, and migration. Large numbers of people, it was discov- (2)'achievement versus security' orientation." 26 ered, do not move merely because their present lo- Respondents, however, with a grade school educa- cation is less favorable in one economic respect or tion were likely to cite their personal worthas another. More positive incentives such as an active reason for their most recent move. In other words, demand for labor, for example, are required to in- a reason other than economic was given for moving. duce migration. At the same time, it was found that Yet, these interviewees tended to report that the economically, well-off locations also drew people most recent move was a return to a former place from other nearby areas with high levels of econo- of residence. mic activity. Two major groups were found to account for most of the migration that occurs between THE PROCESS OF MOVING areas with differing levels of economic activity. Young adults and those suffering extreme econo- The Survey Research Center also probed factors mic hardship tend to move most readily on the that might assist or inhibit the physicalprocess of moving. In evaluating this decision-makingprocess, basis of economic incentives. On the other hand, the Center also investigated blue collar workers, older people, the poorly edu- sources of job information and the use made of them by migrants. cated, and Negroes generally do notmove to another area merely because of slightlymore favor- The study found that about 30 percent of those in able economic conditions. the labor force wereaware of better job opportunities Family, Friends, and Community Ties.The loca- elsewhere, but had not taken advantage of them. The tion of relatives appears to playa significant part decision to move was found to bea difficult one and in the decision to move to anotherarea. If relatives workers were reluctant to make a change,even if they are all nearby, the decision is much more reluc- knew it would better them. Most of the respondents, tantly taken. If relatives have movedor migrated moreover, who preferred another area did not plan to another area, ties to the current place of resi- on moving there; and most of those who thought they dence are likely to be weakened. might move the next year, did not doso. Although Nearly one out of four respondents reported that not documented in the study, the formidable prob- their most recentmove was made wholly or in part lems of packing and unpacking a lifetime accumula- for family reasons, chiefly to be reunited. Of those tion of personal effects constitutesa significant psy- who moved, the study found 46 percentwent to loca- chological barrier to moving. This general reluctance tions where some member of their family already to pull up stakes and leave familiar surroundings lived. The location of close friendswas another factor clearly has an adverse effect on the need formany found to have a significant effecton mobility, though persons to make or look for better economic oppor- to a lesser extent than the residence of relatives. Other tunities. This hesitancy, the study warned, should not considerations mentioned included climate, special be confused with caution, since movers generally naturalassets,or community featuresthat were deemed attractive. made the decision to relocate on fairly quick notice.27 Many moves take place on short notice, without considera- Home Ownership, Pension Plans, and Unemploy- tion of alternate locations or after only a few sources of in- ment Insurance.The study found thatnone of formation have been investigated. The planning period was the so-called security factorshomeownership,pen- found to be one month or less for about one-third of the moves sion plan benefits, or rights under unemployment reported ;alternatives were not considered in two-thirds of them ; and, in over half the cases, family heads who relocated insurance lawswere strong barriers to mobility. consulted only one or even no other sources of job information. 18 The researchers point out, however, that a lengthy population, residents of depressed areas, and welfare period for deciding whether or not to move is not recipients. always necessary. Familiarity with the new area, help As confirmed by the1960Census and succeeding from friends and relatives, and prior moving experi- annual surveys on migration, Negroes today are much ence may replace the need for such long deliberation. less mobile in terms of longer distance moves than Furthermore, current unemployment status or the the white population. This may be a surprising find- offer of an attractive job may preclude or shorten ing in view of the vast geographic redistribution of consideration of alternatives. the Negro population. But since1948,intercounty The Survey Research Center found that the well and interstate moves for the Negro population have educated and highly skilled workers are more unlikely been lower than those for the white population to put off the moving decision, although they tend (which frequently involved a trek to suburban coun- to take more time to make up their minds than the ties).In recent years, the intercounty gap appears to less advantaged. The latter appeared to rely on gen- have widened.29 The principal impediments to Negro eral job information and tips from friends and rela- mobility appear to be largely emotional in nature, in- tives. White collar workers, on the other hand, have volving chiefly family ties to a particular place and a greater access to specific (and more reliable) infor- general uneasiness about unfamiliar surroundings. mation, frequently gained by visits to prospective new These pressures were found to be particularly strong locations. when economic incentives were weak. The reluctance The study concluded that nationwide information to move away from friends and relatives, it was noted, about job opportunities for blue collar workers and was traced to the discrimination problem. the less educated would tend to be less helpful given For the period covered by the survey,1957-1963, the lower level of deliberation that precedes little evidence was found that economic conditions in most moves ." 28 of those in this group. There is depressed areas, though more unfavorable than in no assurance then that better job information would other parts of the country, were of themselves respon- assist the impulsive mover or motivate the reluctant. sible for stimulating out-migration in that period. The Nevertheless, information provided by State employ- poor economic conditions in these areas, on the other ment agencies, the researchers felt, would be more hand, did deter in-migration thereby causing a net helpful to potential movers if more detailed, precise out-migration. Most of what migration there was in- information about job opportunities in other labor volved the better educated, younger, and more skilled market areas and other States were included. Clearly, worker. This loss left depressed areas with a labor even more specialized guidance about job opportu- force that was largely older, less educated, and less nities and locations would be necessary for many liv- skilledhence less mobile. In-migrants to depressed ing in depressed areas. areas have more of a tendency to resemble the stayers Moving costs were found to be comparatively low rather than the movers. in relation to income of migrantsboth for high and No evidence was uncovered that public or private low level income families. The survey found that mov- welfare reduces a recipient's rate of geographic mobil- ing expenses amounted to less than 10 percent of one ity below that of other low income people. The Sur- vey Research Center concluded that such aid may year's income in83percent of the cases analyzed. Young people reported the lowest expenses; costs actually provide some moderate incentive to move, although no conclusive findings were uncovered. An- rose as families become larger and belongings accum- alysts explained that the apparent association between ulated. low past mobility and the receipt of aid by noting that On balance, the Survey Research Center concluded the former affects the eligibility for the latter. Most that resettlement allowances and funds for investigat- people who receive assistance from public welfare ing potential job opportunities merit consideration by agencies are not in the labor force or for reasons of policy-makers. Such assistance, it was felt, should be age or lack of education are not likely to be highly provided only in those cases where a move would mobile. The Survey Research Center study apparently make economic sense. The Center anticipated that did not consider the possible influence of higher wel- the sums involved need not exceed a few hundred fare payments elsewhere as an inducement to move to dollars per family. such locations. MOBILITY AND THE POOR URBAN-RURAL CONTRASTS The Survey Research Center also investigated the THE RURAL EXODUS relationship between poverty and low rates of geo- A major dimension of urbanization involves the graphic movement. Three groups, known to contain tremendous changes in rural America. The heavy out- a large number of poor, were surveyedthe Negro migration from the farms as a place of living and

19 working is well known. In 1790, 95 percent of the being bulldozed over with housing tracts and high- population lived in rural areas; by 1860, the propor- ways. The greater part of the densely developed tion had dropped to 80 percent; and by 1900 to 60 northeastern seaboard, for examplea stretch from percent. The first census showing the country had southern New Hampshire to northern Virginiais become predominantly urban was in 1920 when the not urban in actual land use. There are more "wide urban population numbered 54.1 million as compared open spaces" in America today than at any time since with 51.5 million rural(49 percent). In absolute the closing of the frontier in the late 19th Century.3' terms, however, the rural population grew steadily More land today is classified as "forest and woodland, from 3.7 million in 1790 to a 61.1 million in 1950, us= not grazed" than for many years. The agricultural ing the old definition of urban, or 54.4 million, using revolution has caused a drop in the population den- the current one. Today less than 30 percent of us live sity in rural areas, even as it is rising everywhere else. in rural areas (using the current definition) and less Moreover, fewer acres are under cultivation today than one-fourth of these 54 million rural residents than previously even though farms are getting larger. live on farms and earn their livelihood from agricul- When the changes in the number of farm people ture. In short, despite significant shifts within the are viewed in local and regional terms, a picture of rural population, this sector today has tended to sta- even greater fluidity arises. Many rural regions, as bilize slightly below the 1950 figure. well as individual counties, have experienced sharp From 1920 to 1940 the urban population increased population losses. From 1950 to 1960 nearly half of by 38 percent, while rural residents increased only by the counties in the nation lost population and the I 1 percent. The nonfarm rural rate of growth was overwhelming majority of these were rural in charac- nearly as high as the urban. Only a slight decline in ter. As Figure 4 indicates, regions of heavy decline the number of rural farm people occurred, since the included the interior coastal plain of the lower south Depression retarded off-farm migration.3° During from Georgia through Texas and the continuous area World War II and the years immediately following, of the Great Plains. The Allegheny Plateau, much of urban growth more than doubled its previous level, the Ozarks, and other upland country of Arkansas, while the overall rural population increased by 3.7 Oklahoma, and Missouri also dropped in rural popu- million. From the 1940 level of 30.2 million, the farm lation in the 1950's. Finally, the marginal corn belt population was down to 23 million by 1950. On the areas of Iowa and Missouri had rural losses of up to other hand, the nonfarm population, most of whom 10 percent. have little or no connection with agriculture, in- At the same time, there were areas of sizeable rural creased their share of the rural total by more than 10 increase. Many of these grew from net migration as percent during the decadeto reach the 60 percent well as from natural increase. Increases in rural pop- level. In the 1950's, the urban rate of growth reached ulations in the 1950's were found in state economic high levels while the rural population declined by a areas of Florida, California and Nevada and in many half million( using the new definition of urban), de- of the outlying areas of large industrial centers of the spite the continued substantial growth of the nonfarm lower Great Lakes and Atlantic seaboard. Neverthe- rural sector. less, many of these areas showing a rural growth had Fully accurate comparisons with earlier data are large farm population reductions. Agriculture is not difficult to make because of the radical change in the the major rural activity in these areas and only the definition of the farm residents used in the 1960 cen- increase in nonfarm rural people offset farm losses. sus, which enumerated 15.6 million rural (farm) resi- The revival of rural growth in these areas generally dents, or about one-third less than the 1950 figure.* is not associated with the traditional rural primary industries, but with manufacturing and commuting In 1966, it was estimated that there were 11.6 million to urban employment. farm residentsa further decline caused by techno- The net migration from the farms has produced logical changes in agriculture, nonfarm employment, many problems of both rural and urban adjustment and other factors producing out-migration. in recent years. For example, the rural population has The substantial growth in urban population, how- a larger proportion of children under 15 (33.4 per- ever, does not mean that vast areas of the country are cent of the rural population) than the urban population (30.1 percent of the urban population), as well *In 1960, farm residents were determined by using a definition based on criteria of land acreage and value of agricultural as a higher proportion of those in the 15 to 19 year products sold. Formerly, farm residents were determined on bracket. Yet, there is a relative shortage of persons the basis of the respondent's opinion as to whether his house in the 20 and 64 year age group as a result of migra- is on a farm or ranch. The figure of 15.6 million is the annual tion from rural areas. This is particularly acute in the average from 1960 derived from the Current Population Sur- vey of the Bureau of the Census. The enumerated farm popu- most mobile age group, those in the 20-44 category. lation in the 1960 census was 13.5 million. Rural persons 65 years old and over comprise only a

20 . . 4 .S11 Efi / . z '. .. A / ., z , A 1 .0. .0 :V.*. %O...... r, Zr V r .. "I :,/ :*::;.:.7 .0 / ./;::::::: / .:::: .. ..:...::: go. -- 1::::::::.' ' // / ' , 1\ lko.7 . , .:*:::** :::;r/X..... : %::. ..":;.i.'i:....:.:*.____ . '':*:::*. :::::....: ://, v ,r/ , .*:,v :: , 4 z; / ,..ig::7 '/ \ , / 7/ ..:.:.:- . ' *.:-'/ s:::::-.;:iii:::::,:::: ,. .. a V V V I I slightly larger proportion of this population than cation, retraining, and industrial arts to provide train- those in urban areas, but the large proportion of chil- ing for children and for adults who may wish to dren bring the average age of the rural population change jobs. Low-income areas also tend to have a down to about 3 years less than that of the urban high proportion of disadvantaged youth who need sector. These and other factors combine to produce special attention and require special services. The Pri- significant disparities between rural and urban Amer- mary and Secondary School Act of 1965,it should be icadisparities that are highlighted in the special noted, is geared to alleviating some of the educational analysis of public and other services that follows. fiscal burdens of these areas. The third rural type is located in a State dominated EDUCATIONAL FACILITIES AND SERVICES by one or more large urban centers. These rural areas suburbs Consolidation of rural school districts has been an may have trouble competing with expanding for teachers, for State and Federal funds, and for the important part of the educational program in many attention of State leaders. Some of these areas also States. In the decade from 1953-54 to 1963-64, the number of school districts was cut in half, but nearly may be poor and find it difficult to make adequate local financial contributions to education." all of the estimated 9,900 one-teacher schools remaining in 1963-64 were in rural areas.32 These schools A comparison of rural-urban school characteristics is useful in documenting the relation of service levels constituted about 10 percent of the total and involved to community size. A U. S. Office of Education survey less than one percent of all school children. (the only one of its type), while based on data more An NEA study of small high schools (those with en- rollments of less than 300 pupils) revealed that they than 10 years old, illustrates the differences. All of the represented about 57 percent of the total in 1960 characteristics selected for comparison in Table 11 show that rural and smaller school systems were at a 1961 and educated 13 precent of all high school stu- marked disadvantage. dents.33Seventy-onepercentof thesesecondary schools were located in communities of fewer than Table 11Selected Characteristics of Rural and Urban School 2500. Educational authorities, however, point out that Systems in the United States, 1955-1956 a school district needs a minimum of 1000 school-age children to adequately sustain a four-year high school Independent city school systems Subject Rural by size of city with 300 students." Support for such a school re- systems 2, 500- 10, 000- 25, 000 quires a community of more than 3500 people, assum- 9, 999 24, 999 or more ing approximately one pupil per family. While many rural families are larger than those in urban areas, it Average enrollment: Per elementary school 107 324 382 576 is clear that many rural communities do not have Per secondary school 177 436 781 1, 136 Average number of teachers: , enough students for a high school of this size. Per elementary school 3. 7 11 13 18 Per secondary school 20 33 47 Special problems in rural education are further Average salary of instructional staff__ $3. 1.23 $4, 034 $4, 375 $5, 068 Average current expenses per pupil $221 $273 $286 $321 highlighted by distinguishing three types of areas." Average aspen. e for iastructi3n per pupil. $152 $195 $211 $234 Expenditures for transportation per pupil $21 $10 $5 $3 The first is where sparse population and the related Percent of systems with kindergarten 27 58 62 73 problem of small schools are the dominant factors. Source: U.S. Department of Health, Education, and Welfare, Office of Education. This situation is characteristic of some school districts "Statistics of Rural Schools," a U.S. Summary, 1955-56. Rural School Survey Circular in the Plains, Southwest, Rocky Mountain, and Far No. 565. West regions. The high expenditures per pupil for some rural States in these areas partly reflect the high HEALTH FACILITIES AND SERVICES costs encountered when sparsity exists. The Health Manpower Source Book provides an The second type of rural area is primarily charac- excellent summary of the availability of physicians, terized by low income and the related problem of high dentists, and nurses and the number of hospital beds dependency ratios.In 1960, personal income per according to degree of urbanization by counties.37 school-age child was lower than the national average Table 12 indicates the limited availability of medical in the Plains, Southeast, Southwest, and Rocky Moun- personnel and hospital beds in rural counties com- tain regions. In contrast to the sparsely populated ru- pared to urban areas. The only exception to the met- ral areas, where educational facilities and services are ropolitan-rural progression is the semi-rural category more expensive due to the distances involved and the which had a slightly larger number of hospital beds small size of schools, the chief problem of low-income per capita than any of the more urban categories. The rural areas is to provide a comprehensive education isolated semi-rural areas also accounted for more phy- without spending an excessively large proportion of sicians per capita than counties adjacent to SMSA's. their income. At the same time, low-income areas This may be partly accounted for by the fact that have greater than average needs for continuing edu- persons living near metropoliian areas cantravel as

22 Table 12-Ratio oF Persons in Health Occupations and Other nation as a whole. The average for poor nonwhite Data to Population, by County Group, 1962 1 rural farm families was 156 percent greater.38 This

GreaterLesser Adjacent Isolated pattern of fertility and financial disability has a grim Item metro-metro- to semi-Isolated U.S. politanpolitanmetro- rural rural total impact on the health, economic status, and family life politan of those involved. The incidence of still births, premature births, and infant illnesses and death is much Health personnel per 100,000 population: higher for the rural poor than for other socio-econo- Dentist 71. 0 52. 0 38. 7 40. 6 27. 4 54. 1 Nurse, total 492. 7 509. 3 388. 3 350. 6 195. 7 449. 8 mic groups. Yet, relatively few rural families have ac- Active 327. 5 339. 6 254. 2 242. 8 125. 9 3011 0 Pharmacist 81. 2 65. 2 51. 3 56. 0 45. 3 66. 7 cess to information and medical advice concerning Physician, total 205. 3 153. 0 91. 5 100. 4 59. 1 150. 8 M.D 195. 4 145. 3 85. 6 94. 2 53. 0 142. 9 family planning. 0.0 9. 9 7. 7 5. 9 6. 2 6. 1 7. 9 General hosiptal beds per 1,000 population 4. 0 3. 9 3. 2 4. 1 2. 0 3. 8 HOUSING Effective buying income per capita $2, 526$2, 070$1, 654$1, 551$1, 207 $2, 059 Rural areas in general lag behind urban areas in I Counties within standard metropolitan statistical areas (SMSA), as defined by the adequacy of housing. Table 13 shows that: Bureau of the Budget, are here classified as greater metropolitan (if they are part of a SMSA of 1 million or more population) or lesser metropolitan (SMSA population of four out of every five urban residents (81.4 per- 50,000 to 1 million), Adjacent counties are counties that are not themselves metropolitan but are contiguous to metropolitan counties. All other counties are classified as cent) in 1960 lived in sound homes with complete isolated; semiru ra I counties contain an incorporated place of 2,500 or more population; and rural counties do not. plumbing, while only a little more thanone out of Source: Adjusted from Health Manpower Source Book, Sect. 19, "Location of Man- two rural families(56.7percent)could claim power in Ei_ght Health Occupations," by Maryland Y. Pennell and Kathryn I. Baker, equally good housing; (table 0), U.S. Department of Health, Education, and Welfare, Public Health Service, 1965. rural areas accounted for nearly one-third of all housing units, but contained about 44 percent of easily to the metropolitan center as to a nearby county all the housing lacking structural soundness orcom- hospital or clinic. plete plumbing; Surveys of doctor and dentist visits and family med- approximately 11/2 million rural families lived in ical expenses also show urban-rural disparities. A tab- dilapidatedstructures and another 34 million ulation of the U. S. Public Health Service reveals that lived in structures needing major repairs; metropolitan residents (as a group, by sex, and by in terms of amenities, nearly one out of three age) make more visits to physicians and dentists than homes (69.1 percent) in rural areas did not have do their rural conterparts (see Appendices and complete baths compared to more than nine out I-F). of ten urban families (96.3 percent) ; Urban residents on the average spent one-sixth one out of five rural families (21 percent) did not more for total medical care in 1961 than those in have running water, while only a tiny minority of rural areas. However, expenditures for hospitalized urban families (1 percent) did not have such facili- illnesses were higher for farm families than for non- ties; and farm and urban families (see Appendix I-D). Total direct medical expenditures were greater for the farm Table 13-Selected Housinj Characteristics, by Residence, group than for rural-nonfarm, but the urban families United States, 1960 spent somewhat more than either. For such specialized medical items as eye care, medical appliances, Rural Item Total Urban practitioners other than dentists and physicians, and TotalNonfarm Farm a miscellaneous category, average family outlays, were Occupied housing units (thousands) 53, 02438, 32014, 70411, 1373, 566 virtually the same regardless of place or residence. For Condition, occupied units: Sound 81. 2 85. 4 71. 5 71. 9 69. 7 medicine and drugs, dental services and physicians Deteriorating 13. 8 11. 2 20. 0 19. 2 22. 9 Dilapidated 5. 0 3. 4 8. 5 8. 9 7. 3 Sound with complete plumbing 74. 0 81. 4 56. 7 58. 2 50. 9 services (outside of hospitals), an expenditures pro- Tenure: gression emerges with urban families spending more. Owner-occupied 61. 9 58. 3 40. 5 29. 7 26. 2 Renter-occupied 38. 1 31. 7 59. 5 70. 3 73. 8 Finally, rural and rural-nonfarm families received less Sound condition with complete plumbing : Ow ner-occupied 65. 0 90. 3 67. 0 70. 3 57. 2 free medical care in 1961 than their urban counter- Renter-occupied 65. 5 71.6 42. 6 45. 3 33. 0 Water supply inside unit: I parts. Both hot and old 87. 2 95. 0 69. 3 70. 3 65. 3 Only cold 5. 7 4.0 9.7 9. 7 9. 5 High birth rates are a special rural problem with None 7. 1 1. 0 21. 0 20. 0 25. 2 Bathroom facilities: I health and other ramifications. Rural America has a Flush toilet 89. 7 98. 1 70. 3 72. 7 62. 4 Bathtub or shower 88. 1 96. 3 69. 1 71. 1 62. 9 disproportionate share of large and poor families. More than 1 person per room 11. 5 10. 2 15. 1 15. 4 14. 4

Census figures indicate that among white rural farm I Data apply to all housing units. families with low incomes, theaverage number of Source: Economic Research Service, U. S. Department of Agriculture, "Rural People in the American Economy," (Washington, D.C.: U.S. Government Printing Office, 1966), births in 1960 was 48 percent higher than for the p. 118.

23 finally, nearly one out of every five rural families ica has a disproportionate share of the nation's pov- did not have both hot and cold running water erty.* The figures show that over the years from 1960 while over 19 out of 20 urban families had both. to 1965 some progress was made in reducingthe num- Housing deficiencies, of course, are found more ber of poor persons and families living in urban, ru- frequently among families of low income and the ral (overall), and nonfarm areas. Yet, the rate of bet- high incidence of poverty among rural families is a terment for the farm category was substantiallyless. basic factor explaining these conditions. Almost 40 Indeed, the number of poor "unrelated individuals" percent of the rural families with incomes under living on farms was the same in 1965 as it was in 1960 $2,000 in 1960 lived in dilapidated housing or homes (200,000). that lacked plumbing.39 In terms of geographic location, the rural poor tend Broader comparisons of the standards of living of to be concentrated in portions of 12 Statescomprising rural and urban residents also have been made in the Appalachian region ;the Ozark and Ouachita terms of housing and other amenities. James Cowhig Mountain areas of Missouri, Arkansas, and Okla- has developed comparative data based on the number homa; the northern counties of Minnesota, Wiscon- of families who lived in dwelling units in sound con- sin, and Michigan; much of rural northern New Eng- dition, had hot water piped inside the structure, had land; and the Piedmont and Delta area in the South. access to a telephone, and owned anautomobile.4° While improved real income would contribute to For white households in 1960, the proportions report- greater well being, another factor must be takeninto ing all of these items included 72 percent for urban, account :whether a family, as a consumption unit, 63 percent for rural nonfarm, and 49 percent for contains a producer and whether this producer is em- rural farm. For nonwhite households, the percentages ployed or productive enough to meet family needs. were 36, 5, and 4, respectively.While a household Five categories of poor American families generally may not be impoverished if itdoes not have all of lack these features:(1) nonwhite families with fe- these features, it is still a fact that most rural families male heads of households, (2) aged families living on have not achieved a level of living comparable to farms, (3) aged Negro families living in the country most urban Americans. or city, (4) Negro farm families, and (5) farmfami- lies with female heads of household." In four of these POVERTY deprived family categories, the words "farm" or As Table 14 indicates, there are virtually as many "country" appear. rural poor as there are urban. Yet, as we have seen, Other data further illustrates the adverse position the rural sector as a whole accounts for less than 30 of farm income. While per capita farm income has been increasing, it is not at a rate that approximates percent of the total population. In short, rural Amer- that of nonfarm groups.42 In 1965 farm incomes were 63.4 percent of nonfarm incomes. Moreover, the gap Table 14-Number of Persons and Families in Poverty, by between farm and nonfarm personal income has not Residence, United States, 1960 and 1965 1 been greatly narrowed in recent years. This gap is [Figures in millions] usually explained in terms of the generally lower income opportunities available to rural people,especial- 1960 1965 Persons and unrelated individuals ly to farm people. Some, however, suggest that per- Persons Families Persons Families haps as much as 15 percent of these income differ- Total in poverty 41.3 35.3 ences can be explained in terms of income in kind Urban 22.6 19. 4 Rural 18. 7 15.9 for farm people." Nevertheless, as Table 15 suggests, Nonfarm 13.0 10. 5 Farm 5.7 5.4 farm people spend almost as high a proportion on In familes 34.9 8. 7 29. 0 7. 0 Urban 17. 8 4. 6 15. 9 3. 8 food and housing as do nonfarm and urban residents, Rural 17.1 4.1 13.1 3.2 Nonfarm 11.6 2.8 8.9 2.1 while clothing, medical care, and transportation ac- Farm 5.5 1.3 5. 2 1.1 Unrelated individuals 6. 4 5.3 counted for a higher proportion of farm and nonfarm Urttan 4.8 3. 5 Rural 1.6 1.8 family income. Nonfarm 1. 4 1.6 Farm .2 . 2 From one vantage point, poverty is the same no matter where it occurs and rural andurban poor have * Poverty thresholds for nonfarm families, developed by Mollie Orshansky (Soc. Sec Bul.. Jan. and July 1965), in terms of family money income, were determined by: (1) many traits in common. Yet, rural povertyis different Costing a nutritionally adquate economy food budget for families of various composi- tions regarding number, age, and sex of members, and (2) multiplying that food cost by in a number of ways. It is greater proportionately. It three. Poverty threshold for farm families is 85 percent of the money income of the relevant nonfarm family. The range of poverty threshold incomes is: nonfarm, $1,580 has a much wider geographic distribution. It is some- for 1-person family under age 65 to $5,090 for family of 7 or more Persons; farm, $1,340 of for 1-person family under age 65 to $4,325 for family of 7 or more persons. what more insulated from the main thoroughfare Source: 1960 figures derived from 1960 Census of Population. Urban, rural, and nonfarm rural populations for 1965 were estimated from Current Population Survey *See table 14 for the definition of poverty onwhich this data by Office of Economic Opportunity. (See Dimensions of Poverty, Office of Economic Opportunity, 1965.) analysis relies. Table 15Percentage of Family Expenditures for Current Table 16--Median Income in 1959 of Families and Males With Consumption, With 2 Full-Time Earners, by Residence,1961 Income, by Type and Size of Community

Recrea- Median family Median income Medical Trans- tion, Type and size of community income (dollars) for males with Residence Food Housing Clothing care porta- reading, OtherTotal income (dollars) tion and education Urbanized areas: 3,000,000 or more_ 6, 844 5, 079 Farm 22.2 22.0 12.6 7.8 21.7 5.4 8.2 100. 0 1,000,000 to 3,000,000 6, 680 4, 961 Nonfarm 23.0 25.6 11.9 6.2 19.6 5.8 7.9 100. 0 250,000 to 1,000,000 6,131 4, 513 Urban 23.4 26.7 11.8 5.9 17.0 6.7 8.5 100. 0 Under 250,000 5,834 4, 284 Urban outside of urbanized areas: 25,000 or more 5, 615 3,967 Sources: Consumer Expenditures and Income. Rural Farm Population (45, table 10 000 to 25,000 5, 400 3, 851 25C); Rural Nonfarm Population (50, 1964, table 24C; 1966, table 24C). 2,500 to 10,000 5, 223 3, 780 Rural areas: Nonfarm, total 4, 750 3, 297 Nonfarm in SMSA 5,830 4, 225 Farm, total 3, 228 2, 098 economic activity. Finally, itisless visible, largely Farm in SMSA 4, 543 2, 971 because of the foregoing ttaits. Its basic causes stem Source: U.S. Bureau of the Census. "U.S. Census of Population: 1960. Selected from a "long-term, secular, structural change that has Area Reports. Size of Place." Final Report PC (3)-1B, Table 1. reduced employment in farming and inrelatively stable or even declining area nonagricultural jobs."44 High birthrates,limited occupational experience Statistical Areas are functionally members of the met- along with other obstacles to mobility, and a shrinking ropolitan community. local population and tax base all combine to perpetu- Analysis of the distribution of families with low in- ate this condition in numerous enclaves, large and comes by place of residence shows that the proportion small, in rural America. of rural non-farm families in metropolitan areas with low incomes was slightly below that of central city COMMUNITY DIFFERENCES families and the presence of a number of well-to-do To complete this brief assessment of urban-rural exurbanites in the former group tends to explain this con trosts, the chief differences among basic categories phenomenon (see Appendix I-H).At the same time, of communities will be examined. Four basic residen- the percentage of metropolitan area farm families tial divisions will be used: urban population within with low incomes, while much higher than any other urbanized areas (consisting of metropolitan central metropolitan category, actually was less than that of cities and their urban fringes) ; urban population out- rural non-farm families outside of metropolitanareas side urbanized areas; rural non-farm; and rural farm. and significantly below the rural farm proportion. The Within the urban group, sub-categories are estab- percentage of low income families in urban places out- lished according to size of place; while rural divisions side of metropolitan areas was much lower than all are subdivided by location within or outside a metro- other non-metropolitan categories, but higher than politan area. any of the SMSA groups except the rural farm. This classification system is helpful in testing the The major reasons for these variations of income relationship between community size and personal by place of residence no doubt lie in the occupational and family poverty. Using personal incomeas an indi- structure of different communities. Urban areas do cator of poverty (and recognizing its limitations), have larger proportions of skilled technicians, profes- Table 16 demonstrates a direct connection between sional workers, and others who receive higher sala- income and community size. A similar findingwas es- ries. Yet, the non-SMSA urban figures indicate that tablished by Duncan and Reiss: 45 general income differences stillpersist even within occupational categories as between differing urban Of all the differences among communities of different size revealed in this study, perhaps the most striking is the direct community types." relationship between size of place and income. For both males Some of the basic differences in the composition of and females there is a regular gradient from the peak income the labor force for these different community types in largest urbanized areas to the lowest income in the "other are highlighted in Table 17. The proportion of those rural-farm" territory. The gradient is interrupted only by the figure for the "other rural-non-farm population which is in the most productive age bracket (18-64) steadily higher than that for small villages, but below the median for declines as the rural non-farm and rural farm sectors large villages. are approached. The central cities, urban fringe, and While the income of rural non-farm families inmetro- rural farm areas share the distinction of having the politan areas was actually higher than urban residents highest proportions of males 14 years orover in the outside of urbanized areas, this does not contradict the labor force. A steady progression emerges for females basic proposition that income is directly relatedto over 14 in the labor force, with rural farm having the population size. For all practicalpurposes, most of lowest proportion. High unemployment rates for men the rural non-farm people in Standard Metropolitan and women tend to cluster in the rural non-farm,

25 Table 17-Selected Social and Economic Characteristics of the Population of the UnitedStates, by Place of Residence, 1960

Urbanized area Other urban Rural nonfarm Rural farm

Subject Central Urban 10,000 2,500 to Total Outside Total Outside city fringe or more 10,000 SMSA SMSA

Persons under 18 and over 64 per 1,000, aged 18-64 561 799 808 877 931 945 Percent ol males aged 14 and over in labor force 78. 3 81. 7 76. 4 75. 4 73. 2 71. 6 78. 0 77. 8 Percent of females aged 14 and over in labor force 39. 6 34. 1 37. 4 35. 4 28. 8 28. 5 22. 9 22. 4 Percent of male civilian labor force unemployed 5.6 3. 8 5.3 5. 3 6.1 6. 6 2. 5 2. 5 Percent of female civilian labor force unemployed 5. 5 4.6 5. 8 5. 5 6.1 6. 3 4. 8 4.9 Median years of school completed by persons 25 years old and over 10.7 12.0 10.9 10.6 9. 5 9.0 8. 8 8. 8

Source: U.S. Bureau of the Census. U.S. Census of Population: 1960. General Social and Economic Characteristics, United States Summary. Final Report PC (1) -1C, Tables 100 and 101. Cited in Thomas R. Ford, "Rural Poverty in the United States," prepared for the Task Forceon Economic Growth and Opportunity, Chamber of Commerce of the United States, p. 12 (Mimeographed).

non-SMSA urban, and core city categories, while the of a deepening fiscal crisis. On the one hand, they formal educational rates indicate a steady progression are confronted with the need to satisfy rapidly from a rural farm low on through to a suburb high, growing expenditure requirements triggered by the but then drops for central cities. While presentinga rising number of "high cost" citizens. On the other varied picture, these figures underscore certainex- hand, their tax resources are increasing at a de- pected and some unexpected differences in the labor creasing rate (and in some cases actually declin- force with regard to: ing), a reflection of the exodus of middle and high rateof unemployment and education-within income families and business firms from the central metropolitan communities; city to suburbia. productive proportion of the labor force-between The concentration of high cost citizens in the cen- big and small urban areas; tral city is dramatically underscored by public wel- proportion of females employed and medianyears fare statistics. For example, 27 percent of Mary- of school completed-between all urban and rural land's population is located in Baltimore, yet 72 areas ; percent of Maryland's AFDC expenditures is to be unemployment rates for men andwomen, educa- found in that city. In a like fashion, Boston, with tional levels, and proportion of males in the labor 14 percent of Massachusetts' population, accounts force-between rural non-farm and farm. for 40 percent of that State's AFDC expenditure. A clear disparity in tax burden is evident between INTRAMETROPOLITAN DIFFERENCES central city and outside central city. Higher central city taxes are reinforcing the other factors thatare The preceding treatment of rural-urban contrasts pushing upper income families and business firms demonstrated that significant disparities exist between out of the central city into suburbia. the people and communities in thesetwo broad divi- On the educational front, the central citiesare sions. In population growth, income levels, education- falling farther behind their suburban neighbors al and health facilities, housing, and the incidence of with each passing year. In 1957 theper pupil ex- poverty, the rural sector in every instance was ina penditures in the 37 large metropolitanareas, sur- more disadvantaged position. Yet disparities involve veyed in depth, favored the central city slightlymore than urban-rural differences, as we have suggest- $312 to $303 for the suburban jurisdictions. By ed in other parts of this chapter and in the Advisory 1965, the suburban jurisdictions had forged ahead, Commission's earlier reportson Metropolitan Social far ahead-$574 to $449 for the central cities. This Economic Disparities: Implications for Intergovern- growing disparity between the central city and sub- mental Relations inCentral Cities and Suburbs urban school districts takes on amore ominous (1965) and Fiscal Balance in the American Federal character in light of the fact that the central city System (1967). Within the metropolitanareas of the school districts must carry a disproportionately nation, significantinterlocal differences exist and heavy share of the educational burden-the task of these comprise another dimension of urbanization educating an increasing number of "high cost"un- that merit recapitulation here. derprivileged children. Urban children then who The major findings relating to metropolitan dis- need education the most are receiving the least. parities as they emerge from the Commission's study 'To make matters worse, State aid to school districts of Fiscal Balance in the American Federal Systemare actually aggravates this situation by favoring the as follows: 47 rural and suburban districts. The central cities, particularly those located in the On the municipal service and custodial front, the industrial Northeast and Midwest,are in the throes presence of "high cost" citizens, greater population 26 density, and the need to service the needs of com- medium, large, or giant brackets show a propor- muters force central cities to spend far more than tionate hike comparable to or greater than the na- most of their suburban neighbors for police and tional average, with those in 500,000 to 1,000,000 fire protection and sanitation services. The 37 larg- class having the most rapid relative increase of all. est central cities had a non-educational municipal In terms of the total urban population increase outlay of $232 per capita in 1965$100 greater during the period 1960-1965, the giants in the one than their suburban counterparts. million plus category accounted for more than half While these findings may not be too startling, they and those in the 250,000 to 1,000,000 bracket for clearly reinforce the hunch, held by many, that the nearly one-fourth of the total. public finance-public services outlook for most large Regionally, with the exception of theone million central cities is somewhat bleak. Moreover, they tend plus group, urban areas with the highest rate of to demonstrate that core cities and numerous rural population growth generally were located ina jurisdictions have far more in common than first broad geographic crescent beginning in Virginia, glance would have it. Finally, the root cause of the swinging through the old South and Southweston problems facing both of these widely separated sectors to the West Coast. Urban areas, again except for is the same :recent migration, urban growth and the one million and over category, having uniform- technological developments have drained their most ly below national average percentage hikes formed productive resources. another interregional arc beginning in Maine;extending through Southern New England, the Mid- SUMMARY OBSERVATIONS dle Atlantic States and Great Lakes; and swinging through the Plains States to terminate in North To summarize and highlight this tracing of the Dakota. American pattern of urbanization, the following find- Classification of municipalities accordingto their ings should be noted: basic economic characteristics revealsa high pro- In recent years, metropolitan areas experienced the portion of manufacturing and industrial cities in greatest population gains. Yet, using either the the Northeast and Great Lakesareas; a moderate SMSA or Rand McNally definitions, central cities concentration of manufacturing-oriented communi- enjoyed some growth in the smaller SMSA's but ties in the Southeast and in the Los Angeles-San only minor increases or actual declines (especially Francisco urban areas; and almost none of these when annexations are excluded) in medium, large, types in the Prairie States, Mountain Region, and and giant metropolitan areas. Florida. Noncentral city areas in metropolitan areas, on the In terms of size, cities with significant manufactur- other hand, have had dramatic percentage and ing combined with a balanced blend of othereco- absolute increases, especially in the 500,000 plus nomic activities tend to be large; cities with manu- SMSA categories. The Rand McNally analysis re- facturing primarily, medium sized; and cities serv- veals that metropolitan suburbs (incorporated sub- ing as local retailing or specialized centers, with urbs of 10,000 or more) expanded by 13.9 percent little or moderate manufacturing, small. (omitting annexations) compared to a 3.5 percent Migration has been a major factor in the growth hike for centralcities from 1960-1965; while of large metropolitan areas, with nine such areas "metropolitan remainders" experienced the greatest accounting for four-fifths of all net migration to proportionate growth. all metropolitan areas during 1960-1965; in region- Using Rand McNally figures, urban places of al terms, migration benefitted such areas in the 10,000 or more outside of metropolitan areas of Northeast and Great Lakes areas least over this 100,000 or more grew at slower rates than metro- period, while 28 such complexes in the South, politan suburbs and remainders, but faster than Southwest, Mountain States, and Far West ac- central cities; the remaining nonmetropolitan areas counted for 43 percent of all metropolitan gains (towns below 10,000 in population, rural villages, and more than half of their growth came from net and farms) had the lowest percentage increase of migration gains (accounting for 99 percent of all any of the Rand McNally categories. net migration to metropolitan areas) . The relative growth rates of "Urban Areas" of Motivational research suggests that improved eco- 20,000 or more clearly reveal that the smaller cate- nomic opportunities are significant in prompting gories (20,000-50,000 and 50,000 to 100,000) fell migration, but better education and job skills were below the national average for all urban areas be- common background traits of the migrating unem- tween 1960-1965; those for "urban areas" in the ployed ; moreover, while areas of high economic

27 activity attract in-migration,areas of low-level ac- Urban-rural comparisons of population growth, tivity do not necessarilyencourage gross out-migra- educational and health facilities, housing, and in- tion at higher rates than for otherareas; blue col- come levels suggest major disparities for every in- lar workers, the less well educated,many Negroes, dex with rural America consistently in the disad- and older people do notmove to another location vantaged position. simply because of the chance of economic better- A final distinguishing feature of curent urbaniza- ment; several factors, largely noneconomic inna- tion is that within metropolitan areas another set ture, sustain movement among these groups; the of disparities emerges with central cities confront- migration from low-level economicareas usually ing much greater public finance-publicservice depletes disproportionately the most productivesec- problems than suburbs and metropolitan remain- tor of their work force. ders. One special dimension of urbanization involves the Future projections indicatean urban population heavy increase in the Negro proportion of the increase of approximately 83 percent by the end of population of central cities in SMSA'sa jump the century; the rural population will account for from 12 to 20 percent between 1950-1966; the only 15 percent of the 314 million total andnon- percentages are much higher for central cities in whites will increase their share of 15percent; the the 250,000 plus metropolitan area bracket. lion's share of the population increase willoccur Another special dimension of urbanization is the in the largest, fastest growing urbanareas, with 27 relatively stable level of America's rural population giants adding over 65 million to their population since 1950yet the farming sector continues to (or more than three-fifths of the total); the region- drop, with a particularly sharp loss of 4 million al breakdown suggests that the South and West will between 1960 and 1966. experience the greatest gains.

Footnotes Advisory Commission on Intergovernmental Relations, 11 Based on H. Landsberg, L L. Fischman, and Jos. L. Fiscal Balance in the American Federal System (in process). Fisher, Resources in America's Future, published for Resources 2 I b id. for the Future (Baltimore, Maryland: The Johns Hopkins 'U.S., Department of Commerce, Bureau of the Census, Press, 1963), Table 18-14, p. 371. Bureau of Labor Statistics, Social and Economic Conditions 12 MarionClawson, "Urban Sprawl and Speculation in of Negroes in the United States, Current Population Report, Suburban Land," Land Economics (May, 1962), pp. 99-111. Report No. 332, Series P-23, No. 24 (Washington, D.C.: Jack Lessinger"The Case for Scatterization: Some Government Printing Office, October, 1967). Reflections on the National Capital Regional Plan for the Richard L. Forstall of Rand McNally and Company, Year 2000," Journal of the American Institute of Planners "Population Change in American Cities, 1960-1965," Mu- (August, 1962), p. 159. nicipal Year Book, 1966 (Chicago, Illinois: International " Harvey and Clark, op. cit., pp. 8-9. City Managers' Association, 1966), p. 30. 1' Raymond Vernon, The Myths and Reality of Our Urban Richard L. Forstall, "Economic Classification of Places Problems (Cambridge, Massachusetts: Joint Center for Urban Over 10,000 1960-63," The Municipal Year Book, 1967, Studies, 1962), p. 1. International City Managers' Association, pp. 30-65, which "Fiscal Balance in the American Federal System, op. cit. is a revision of four classifications previously published by the "Marshall Kaplan, Implementation of the Blatimore Re- International City Managers' Association in its Municipal gional Plan Alternative(Baltimore, Maryland: Regional Year Book: Grace Kneedler Ohlson, "Economic Classifica- Planning Council, 1965), p. 10. tion of Cities," 1945, pp. 30-38, 48, and Table IV; Victor " Jerome P. Pickard, Analysis of Past and Future U.S. Pop- Jones, "Economic Classification of Cities and Metropolitan ulation Growth Trends with Emphasis on Urban and Metro- Areas," 1953, pp. 49-57, 69, and Tables II and IV; Victor politan Population, processed (SeptemberOctober, 1967). Jones and Andrew Collver, "Economic Classification of 19 Ibid. Cities and Metropolitan Areas," 1960, pp. 67-79, 89-90, and " Jerome P. Pickard, Dimensions of Metropolitanism, Ur- Tables IV and VI; and Victor Jones, Richard L. Forstall, ban Land Institute Research Monograph 14 (Washington, and Andrew Collver, "Economic and Social Characteristics D.C.: 1967), p. 23. of Urban Places" and "Economic and Social Classification " Ben J. Wattenberg and Richard M. Scammon, This of Metropolitan Areas," 1963, pp. 31-37, 85-113, and Tables U.S.A. (New York, New York: Pocket Books, 1960), p. 136. I and III. "U.S., Department of Commerce, Bureau of the Census, ° Ibid., pp. 41-42. Bureau of Labor Statistics, Population Characteristics, Cur- 7 Ibid., p. 42. rent Population Report, Series P-20, No. 156 (December 9, ° Ibid. 1966). ° Jean Gottman, Megalopolis, The Urbanized Northeastern 'Social Security Bulletin, "Geographic Labor Mobility in Seaboard of the United States (New York, New York: The the United States: Recent Findings," Vol. 30, No. 3 (March, 20th Century Fund, 1961), p. 247. 1967), p.15. '° Robert 0. Harvey and W. A. V. Clark, "The Nature and 74 Ibid., p.17. Economics of Urban Sprawl," Land Economics (February, 25 Ibid., p. 16. 1965), p. 2. lbid.,p. 18.

28 " Ibid., p. 19. tion, and Welfare, Public Health Service ( Washington, D.C.: 28 Ibid. Government Printing Office, 1965). "Social Security Bulletin, "Negro-White Differences in " James D. Cowhig, "Urban and Rural Levels of Living Geographic Mobility," Vol. XXX, No. 5 (May, 1967), pp. 1960," Agricultural Economic Report, No. 79, U.S. Depart- 8-18. ment of Agriculture, (July, 1965). Rural People in the American Economy, op. cit., p. 32. " Frederick V. Waugh, Robert W. Rudd, HaroldF. " Ibid., p.8. Breimyer, Luther G. Tweeden and Frank T. Bachmura, U.S. Office of Education, Department of Health, Educa- "Rural Well Being," Agricultural Policy: A Review of Pro- tion, and Welfare, Statisticsof State Schools, 1963-64, grams and Needs, Vol. V, National Advisory Commission on ( Washington, D.C.:Government Printing Office,1967), Food and Fiber (August, 1967), p. 143. Tables 5 and 9. "Ibid., p. 137. Rural People in the American Economy, op. cit., p. 21. "Ibid. " Ibid., p. 23. " Rural People in the American Economy, op. cit., p. 66. 33 Ibid. " Otis Dudley Duncan and Albert J. Reiss, Jr., Social Char- Ibid., pp. 23-24. acteristics of Urban and Rural Communities, 1950 (New " Ibid. York, New York: John Wiley and Sons, 1956), p. 1030. U.S. Bureau of the Census, Women by Number of Chil- " Thomas R. Ford, Rural Poverty in the United States, dren Ever Born, 1960 U.S. Census of Population, PC (2)-3A. Prepared for the Task Force on Economic Growth and Oppor- Maryland Y. Pennell and Catherine I. Baker, "Location tunity, Chamber of Commerce of the United States (mimeo- of Manpower in Eight Occupations," Health Manpower graphed ), p. 9. Source Book, Section 19, U.S. Department of Health, Educa- " Fiscal Balance in the American Federal System, op. cit.

29 Chapter II Economic Growth: The Regional, State, and Local Experience

INTRODUCTION fined as "a sustained increase in per capita or per worker product, most often accompanied by an in- AS THE PREVIOUS CHAPTER clearly indicates, the crease in population and usually by sweeping struc- process of urbanization has many dimensions. Indeed, tural changes."Included among these major struc- urbanization can be considered to be both a cause and tural changes are the process of industrialization effect of economic growththe latter being the focal the movement of resources away from agriculture, and point of attention here. After a discussion of this con- the process of urbanizationthe redistribution of cept and its measurement, the process of economic population from the countryside to the city. Economic growth is assessed at the multi-State region and the growth then may be viewed as a multi-dimensional State level to determine what has been the recent phenomena involving increases in such strategically growth experience and where it has occurred. important variables as production or income, popula- From the varying geographic findings concerning tion, industrialization and urbanization, as well as a economic growth, a selection of States, designed to complex set of factors surrounding the redistribution reflect such differences, is made. Within the selected States, economic growth is evaluated at the municipal of existing resources. level to indicate what factors help explain the vary- The scope of economic growth process is in no way ing rates of growth among cities within the particu- diminished when a unit less than the nation is exam- lar States. Two such sets of factors are used :the first ined. As a matter of fact, it is just bt., Ause the process relates to determinants that are common to all mu- is so comprehensive and far-reaching that any analy- nicipalities; the second deals with some general prin- sis of economic growth at a sub-national level must ciples and studies of factors relevant to location deci- take into account the same variables and factors con- sions of business firms. The last major topic of this ditioning the national phenomenon. Yet there is one chapter is an assessment of the influence of population important difference. Any study concerned with eco- characteristics on both the public and private sectors. nomic growth at the regional, State, or sub-State level More specifically, an effort is made to gauge whether must recognize that this process takes place within a certain measures of population can be isolated as ex- national context. It is the nation, af ter all, that has planatory determinants of why cities (within given greater governmental power, governmental institu- States) spend different per capita amounts on various tions, and financial resources capable of fostering or governmental functions. The influence of population impeding economic grow th at the sub-national level. concentrations, that is, urbanized areas, on the prices Moreover, it is the water size of the nation function- paid by individuals and the business community is ing as a vast common market through a communica- also assessed. tions-transportation network, that makes sub-national boundaries somewhat artificial. Thus, there is inher- ECONOMIC GROWTH: ITS MEANING AND ently a national dimension to the process of economic MEASUREMENT growth. Nonetheless, since state and local governments, and regions within the nation are affected by THE CONCEPT OF ECONOMIC GROWTH the varying impact of economic growth andin the Economic growth is most frequently investigated on case of governmentspossess policy-making authority a nation-wide basis. In this context, it has been de- of their own capable of influencing economic growth,

30 they constitute meaningful units of analysis as they Moreover, when the aggregate or per capita in- relate to the course of economic development. come dimensions of economic growth are analyzed, it is necessary to consider the absolute rate of increase THE MEASUREMENT OF ECONOMIC GROWTH as well as the relative rate of change. When treated To gauge economic growth, any number of indi- separately, neither calculation will reveal the full pic- cators reflecting the unique features of modern society ture of economic growth, since the former tends to would appear valid. Such indices as railroad track favor larger units while the latter over-emphasizes the mileage, the number of telephones, average life ex- smaller. Given these various limitations, economic pectancy or the educational levels attainedall pro- growth will be examined in terms of six measures: vid some insight into the process of economic growth. percentage increase in per capita income, Yet such measures are specific and their scope is nar- absolute increase in per capita income, row, while the growth process is comprehensive, in- percentage increase in population, volving complex inter-relationships among several key absolute increase in population, variables. Moreover, to use specific measures, or even percentage increase in total income, and a broad based index composed of several such indices, absolute increase in total income. requires a knowledge of the relationships of such These indicators are applied to two levels ofgov- measures to the actual process. With a combination ernment, the multi-State region and the State, the of measures, questions of appropriate weighting arise. sole concern being to determine what took place Since economic growth obviously involves change, throughout the country and where. On the basis of suchmeasures and theirrelationshipstothese these results, a selection of certain States is madeto changes must also be specified if inter-area compari- examine the differing growth experiences, for both sons are to be undertaken. the regions and the States. Within these States,eco- To overcome these difficulties, itis necessary to nomic growth will be evaluated at the municipal level have a measure that is comprehensive, encompassing to determine those factors that appear related to many elements of economic activity. The choice of a economic advance at the sub-state level andto govern- comprehensive measure or measures of economic mental policies that have been,or may be, brought growth, however, is not without its own set of prob- to bear. lems. Measures of product or income involve questions of inclusion and exclusion as well as of the prices ECONOMIC GROWTH, 1950-1966 at which the included goods and services are to be valued. Despite these and other such problems, in- For the nation, the period from 1950 to 1966gen- come and population are two measures that are wide- erally was one of expansive economic growth. To be ly accepted as indicators of economic growth and will sure, variations in the rate of increase (or decline) be used here. can be traced for each of the measures herein ana- Yet, it is still necessary to distinguish between in- lyzed and more thanone cyclical expansion and reces- creases in aggregates, such as total income, and in- sion also occurred. Yet the theme of expansion is dominant ; creases in per capita terms, such as income per capita. population increased from 151 million to Both, of course, are relevant for a study of economic 196 million, a 29 percent hike; total personal income growth, but their focus is somewhat distinct. The for- (in current dollars) grew from $227 billionto $581 mer measure represents what has been called the billion, or by 155 percent; per capita personal income volume effects of economic growth, the "more and (in current dollars) advanced from $1,496to $2,963, bigger" side of the story. The latter,on the other or a 98 percent increase. Moving from the national to hand, is a proxy measure for the "welfare"or "better" the sub-national levels, two other clear-cut trends aspect of economic growth.2 Nonetheless, income per st-d out:(1) there was a considerable divergence capita should not be equated with welfareas such, a ,,Jrig the sub-national governmental levels in their since the latter is a subjective concept about which rates of advance, whether absolute or relative; and there is little agreement. Indeed, income estimatesex- (2) there was a general tendency, at least for certain clude all welfare considerations of non-economic in- measures, toward a reduction of inequalities among stitutions and even within the economic sphere ignore the various sub-national levels. such concerns as working conditions, economic free- THE TIME PERIOD dom, income distribution, etc., all of which relateto ;' the concept of welfare or standard of living. Income In selecting a time period for study, two major then is not a comprehensive measure ofconsumer considerations prompted the choice of the period well-being. It measures the output of theeconomy in 1950-1966. For the purpose of this analysis, recent terms of its goods and services and thus involves only experience is most releyant and, equally imporiant, a segment of economic welfare. a period long enough to reveal the trend rather than

31 cyclical change is necessary. If the time period were Plains: Minnesota, Iowa, Missouri, North Dakota, South extended to include earlier years, World War II and Dakota, Nebraska, Kansas. Southwest: Oklahoma, Texas, New Mexico, Arizona. the dislocations it produced would have to be reck- Rocky Mountain: Montana, Idaho, Wyoming, Colorado, oned with, while going even further back into the Utah. 1930's would involve the Great Depression. Since Far West: Washington, Oregon, Nevada, California, Alaska, historical comparability is not essential to this analy- Hawaii. sis, it is proper to begin with 1950. PER CAPITA INCOME GROWTH, 1950-1966 Other years, of course, could have been chosen as the base point. Despite the beginning of the Korean Perhaps the most frequently used measure of eco- War and its essentially "random" disturbance, 1950 nomic growthcertainly at the national levelis in- was selected because of the greater availability of come per capita. This indicator reflects increases in data. Moreover, the relatively high 1950 unemploy- both total income and population growth, each of ment rate of 5.3 percent indicates the economic im- which is discussed later. Nonetheless, per capita in- pact of the Korean War was not immediately felt. come is more than a summary measure of these two Indeed, since the unemployment rate for 1966 was factors, since a rise in per capita income can result from diverse movements in both total income and down to 3.9 percent, some of the economic growth population. In terms of United States experience, that transpired represents more favorable cyclical de- however, per capita income grew because total in- velopments. Nonetheless, the unemployment rates for come outstripped population increase. This was true, the two years are sufficiently comparable to draw to differing degrees, for every region and each State, meaningful conclusions for the period as a whole. except West Virginia. In the latter, an actual popula- Modifications of this time span would yield, of course, tion decline coupled with a modest increase in total different results in terms of the numerical growth re- income produced a rise in the per capita figure. corded. It is reasonably safe to assume, however, that For the nation as a whole, per capita income inno strikingly different results than reached here would creased from $1,496 in 1950 to $2,963 in 1966 (cur- emerge in the recorded growth profile among various rent dollars) . This 98 percent increase more than off- governmental levels and this comparative aspect is set the advance in prices, which rose 35 percent over the essential concern. this period. For each of the geographic regions and each of the States, the rate of increase in per capita THE REGIONS DEFINED money income was in excess of the rise in prices and, Since the multi-State regional dimension of eco- with but four exceptions (Alaska, Montana, Wyo- nomic growth is to be assessed, the composition of the ming, and Delaware), the rates of increase were at least double the rate of advance in prices. Over this regional groupings should be clarified at the outset. period, then, there was a pervasive rise in real per The term "region" as used here parallels that em- capita income. ployed by Harvey Perloff and others in the Resources While increases in per capita income have occurred for the Future study of Regions, Resources, and Eco- throughout the country, the rates of advance have nomic Growth, but differs from both the Census defi- differed considerably from region to region and from nition and the Census concept of geographic division. State to State (see Table 18). The regions with the Other groupings of States might have been relied fastest growing rates have been the Southeast (124 upon, but the purpose of this study is adequately percent), New England(102 percent), and the served by those listed below. Moreover, it is not clear Plains States (99 percent). In each, the rates of that any other regional classification would alter the growth exceeded the national average. Taken to- major conclusions or serve the study's purposemore gether, these three regions contained no less than 19 satisfactorily. It should be noted that the District of of the 25 States recording above average rates of in- Columbia is regarded as a State and is included in crease, including all of the 12 Southeastern States. the Mideast region, while Alaska and Hawaiiare The remaining regions all scored below the national treated as if they were States in 1950 and placed in rate of increase and contained 20 of the 26 States falling in this category. the Far Western region. The regionsare: AlthoughtheEasternorientationofregional New England: Maine, New Hampshire, Vermont, Massachu- setts, Rhode Island, Connecticut. growth in per capita income is retained when abso- Mideast: New York, New Jersey, Pennsylvania, Delaware, lute rather than relative rates of increase are con- Maryland, and the District of Columbia. sidered, the ordering of regions and States reveals cer- Great Lakes: Michigan, Ohio, Indiana, Illinois, Wisconsin. tain differences. The most dramatic regional contrast Southeast: Virginia, West Virginia, Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Florida, Ala- is provided by the Southeastern States, which had bama, Mississippi, Louisiana, Arkansas. ate. greatest percentage advance yet ranked sixth

32 Table 18-State Per Capita Income Growth, 1950-1966 creased their ratio from .68 to .77. A similar inter- jurisdictional narrowing occurredat the State level. Per- Abso- 1950 State 1966 State State and region 1950 1966 cent lute The highestincome percapitaStatein1950 in- in-1950 National 1966 National crease crease (Percent) (Percent) (Alaska), was 1.59 times the national figure; by 1966 the highest per capita income State (District of Co- United States $1, 496$2,963 98$1, 467 lumbia) had a 1.33 ratio; yet, Mississippi, whichwas New England 1,6013,239 102 1, 638 107 109 Maine 1, 1852,477 109 1, 292 79 84 the lowest per capita income State in bothyears, had New Hampshire 1, 3232,808 112 1, 485 88 95 Vermont 1,1212,595 131 1, 474 75 88 increased its ratio from .50 to .60 of the national Massachusetts 1, 6333,271 100 1, 638 109 110 figure. At both the regional and State levels then, Rhode Island 1, 6063,047 90 1, 441 107 103 Connecticut 1, 8753,690 97 1, 815 125 125 there was a convergence inper capita income levels Mideast 1, 7563,325 89 1, 569 117 112 New York 1, 8733,497 87 1, 624 125 118 with the top areas declining and the bottom advanc- New Jersey 1, 8343,445 88 1, 611 123 116 Pennsylvania 1, 5412,968 93 1, 427 103 100 ing. This two wayconvergence reduced the inter- Delaware 2, 131 3,529 66 1, 398 142 119 Maryland 1,6023,204 100 1, 602 107 108 regional difference from .53 to .37 and the inter-State District of Columbia... 2, 2213,946 78 1, 727 148 133 Great Lakes 1, 6663,229 94 1, 563 111 109 divergence from 1.09 to .73. Michigan 1, 7003,269 92 1, 569 114 110 Despite this process of Ohio 1, 6203,056 89 1, 436 108 103 convergence, little change Indiana 1, 5123,076 103 1, 564 101 104 occurred in the regional and Stateper capita income Illinois 1, 8253,532 94 1, 707 122 119 Wisconsin 1, 4772,973 101 1, 946 99 100 positions. While the low income States andregions Plains 1, 4282,847 99 1, 419 95 96 Minnesota 1, 4102,904 106 1, 494 94 98 generally had higher rates of growth, thesepercentage Iowa 1, 4852,992 101 1, 507 99 101 Missouri 1, 4312,817 97 1, 386 96 95 increases were not sufficient tocause any large-scale North Dakota 1, 2632,384 89 1, 121 84 80 South Dakota 1, 2432,420 95 1, 177 83 82 reordering of relative positions. New Englandmoved Nebraska. 1, 491 2,905 95 1, 414 10 98 Kansas 1, 4432,862 98 1, 419 96 97 into the third position, changing placeswith the Southeast 1, 0222,287 124 1, 265 68 77 Virginia 1, 2282,605 112 1, 377 82 88 Great Lakes States and the Plains States movedup to West Virginia 1, 0652,176 104 1, Ill 71 73 the fifth rank displacing the Rocky Kentucky 9812,246 129 1, 265 66 76 Mountain States. Tennessee 9942,227 124 1, 233 66 75 At the State level,more dramatic examples are North Carolina 1, 037 2,277 120 1, 240 69 77 South Carolina 8932,052 130 1, 159 60 69 provided. Wyoming experienceda 16 place decline Georgia 1, 0342,379 130 1, 345 69 80 Florida 1, 2812,614 104 1, 333 86 88 and Montana a 15 place decline, butthere was a 14 Alabama 8802,066 135 1, 186 59 70 Mississippi 7551,777 135 1, 022 50 60 place advance for Hawaii. Despite theseand other Louisiana 1, 1202,277 103 1, 157 75 77 Arkansas 8252,010 144 1, 185 55 68 shifts, there wasa general stability in relative per Southwest 1, 2972,520 94 1, 223 87 85 capita income positions Oklahoma 1, 1432,462 115 1, 319 76 113 among the States. Witness Texv 1, 3492,542 88 1,193 90 86 the fact that the rank-order correlation New Mexico . 1, 1772,385 103 1, 208 79 80 between 1950 Arizona 1, 3312,544 91 1, 213 89 86 and 1966 per capita income levels by Statesproduced Rocky Mountain 1, 4572,697 85 1, 240 97 91 Montana 1, 6222,623 62 1, 001 108 89 a correlation coefficient of + .943. This indicates that Idaho 1, 2952,445 89 1, 150 87 83 Wyoming 1, 6692,739 64 1, 070 112 92 those States which had highper capita income levels Colorado .1. 487 2,916 96 1, 429 99 98 Utah 1, 3092, 485 90 1, 176 es 84 in 1950 generally enjoyeda comparable status in Far West 1, 8073,375 87 1, 568 121 114 1966. Washington 1, 6743,222 92 1, 548 112 109 Oregon 1, 6202,908 80 1, 288 108 98 Nevada 2, 0193,497 73 1, 478 135 118 California 1, 8523,457 87 1, 605 124 117 POPULATION GROWTH ANDREDISTRIBUTION, Alaska 2, 3853,421 43 1 036 159 115 Hawaii 1, 3873,124 125 1, 737 93 105 1950-1966 Turning to the second criteria Source: U.S. Department of Commerce, Bureau of the Census, "Survey of Current . of economic develop- Business," August 1967. ment, general population growthduring the period 1950-1966 revealeda continuation of trends extend- among the eight regions in its absolute rate of per ing back intoour historical and economic past. The capita income growth. On the other hand, the Mid- fastest growing regions for theyears surveyed were in eastern and Far Western States experienced lowper- the West where populationgains exceeded thena- centage increases but ranked second and third,re- tional average and whose shares oftotal population spectively, in terms of absolute advances. increased. This westwardmovement, while a domi- This tendency for low per capita income regions nant characteristic of overall population growth and and States to have higher percentage rates of growth redistribution, nonetheless conceals thecontinued, has led to a nari owing of income differentialsamong and substantial, growth in absolutenumbers that has these areas. At one extreme, the Far Western States marked the eastern and midwesternsectors of the stood at the top of the income listing both in 1950 and country. The picture of population growth that 1966, but registered a decline in their regional/ emerges then is one of continued, though differential, national income ratio, from 1.21 to 1.14. The South- rates of advance. eastern States, on the other hand, which had the low- Of the several geographic regions, the Southwest, est per capita income level in 1950 and 1966, in- Rocky Mountain, and Far West exceeded the 29per-

310-335 0-C3-4 33 cent national rate of increase. While these regions the other five States in the region, where overall grew at the rates of 39, 34, and 65 percent respective- population growth was the second lowest. ly, they were not necessarily those where the absolute Within certain other regions ir.stances of sharply increase in population was greatest. With the excep- divergent population growth rates among the States tion of the Far West, where the absolute growth and were more common (see Table 22). While Maryland, percentage increase were largest, the absolute gains New Jersey, and Delaware all scored rates of increase in population were frequently, though not uniformly, exceeding the national average, the Mideast region greater in the eastern sectors (see Table 19). Rank- as a whole did not. Even more striking were Nevada ing immediately behind the Far West in terms of absolute population growth, for example were the Table 21Regional Distribution of Population Growth Com- Southeast, the Great Lakes, and the Mideast regions. pared to National Percentage Increase, 1950-1966

Thus, while there has been a continued spreading out Number of Number of and filling in of population, with the three western Regions Number of States above States below States national national sectors increasing their share from 19.9 percent to average average 23.4 percent between 1950 and 1966, the eastern part New England 6 1 5 of the country continued to retain the overwhelming Mideast 6 3 3 Great Lakes 5 2 3 portion of the nation's population (see Table 20). Plains 7 0 7 Southeast 12 3 9 Southwest 4 3 1 Table 19Absolute and Relative Rates of Regional Population Rocky Mountains 5 2 3 Growth, 1950-1966' Far West 6 5 1

Absolute Relative I As of July 1, 1966. Regions increase (in increase Sources: '1950 Census of Population," Volume 1, Table 6; "Current Population thousands) (percent) Reports," Series P-25, No. 380.

United States 44,610 29 New England 1,929 21 and California in the Far West, which grew at rates Mideast 8, 009 24 Great Lakes 8,336 27 of 169 and 78 percent, respectively, while Washing- Plains 1, 870 13 Southeast 8, 851 26 ton grew only by 28 percent. The diversity within the Southwest 4, 454 39 Southeastern region is underscored by a growth rate Rocky Mountains 1,195 34 Far West 9, 965 65 of 113 percent for Florida and a relative declim of 10 percent in West Virginia. I As ofJuly 1, 1966. Just as the Western States generally dominate reli- Sources: "1950 Census ofPopulation," Volume 1, Table 6; "Current Population Re- ports," Series P-25, No. 380. tive population growth, it was the older, more denst-- ly populated States of the East that emerge as the Table 20Regional Distribution of Population, 1950-1966 major areas of absolute population increase. Of the

Population Percent of total States with greater than median population increases, Region (thousands) 20 are found in the eastern sector of the country and 1950 1966 1950 1966 only 6 in the West (see Table 23).

United States 151, 326 195, 936 100. 0100. 0 Both the absolute and relative rates of population New England 9,315 11,244 6.2 5.7 growth can be brought together and summarized by Mideast 33, 626 41, 635 22. 2 21.2 Great Lakes 30, 400 38, 736 20. 1 19. 8 means of a shift and share analysis. This procedure Plains 14, 062 15, 932 9. 3 8. 1 Southeast 33, 792 42, 643 22. 3 21. 8 permits a comparison of the actual regional. or State Southwest 11, 375 15, 829 7. 5 8.1 Rocky Mountains 3, 485 4, 680 2. 3 2. 4 growth (for any particular variable) with that which Far West 15, 275 25,238 10. 1 12. 9 could have been anticipated had there been a uniform I As of July 1, 1966. application of the national rate to each of the regions Sources: "1950 Census of Population," Volume 1, Table 6; "Current Population Reports," Series P-25, No. 380. or States. Since the actual population growth that took place occurred at differelitial rates among the At the State level, the picture ismore complex. regions or States, each will diverge from the results This, of course, stems from the fact that the growth under the uniformity assumption. of population within geographic regions proceededat For those States or regions where the actual popu- differential rates. Some regional and State findings lation growth exceeded the national average, the dif- reveal a few major discrepancies (see Table 21). The ference between actual growth rates and those result- Plains region, for example, scored the lowestrate of ing when the national average is applied will bc posi- population growth among all regions and each of its tive. In States or regions where the actual population States grew at rates lower than the nationalaverage. growth was less than the national average, the differ- In New England, only Connecticut stood out incon- ence between the two will be negative. Bytotaling trast to the sub-national rates of increase scored by the positive and then the negative values, it is possible 34 Table 22Population Growth to determine that portion of the total positive or negative divergencies which is attributable to particuiar Thousands State and region Percent regions or States. This procedure then permitssum- 1950 1966 Absolute increase populationpopulation 1increase marization of both the absolute and relative rates of population advance and identification of these States United States 151, 326 195, 936 44, 610 29 and regions demonstrating the greatest net shifts New England 9, 315 11, 244 1, 929 21 (positive as well as negative) in terms of population Maine 914 978 64 7 New Hampshire 533 676 143 27 growth. Vermont 378 411 33 9 Massachusetts 4, 691 5, 403 712 15 The predominant region of population growthre- Rhode Island 792 898 106 13 Connecticut 2, 007 2, 878 871 43 vealed by this shift-share analysis is the Far West, ac- Mideast 33, 626 41,635 8, 009 24 New York 14,830 18, 205 3, 375 23 counting for no less than 81.1 percent of the total New Jersey 4, 835 6, 899 2, 064 43 Pennsylvania 10, 498 11, 601 1, 103 11 net upward shift (see Table 24). Far less, though Delaware 318 513 195 61 Maryland 2, 343 3, 611 1, 268 54 still significant, was the Southwest region, whichac- District of Columbia 802 806 4 0. 5 counted for 16.4 percent of the total upward shift, Great Lakes 30, 400 38,736 8, 336 27 Michigan 6, 372 8, 468 2, 096 33 while the Rocky Mountain States sharewas but 2.5 Ohio 7, 947 10, 364 2, 417 30 Indiana 3, 934 4, 951 1, 017 26 percent. The major areas accounting for the net Illinois 8, 712 10, 786 2, 074 24 Wisconsin 3, 435 4, 167 732 21 downward shift in population were the Plains (33.8 Plains 14, 062 15, 932 1, 870 13 Minnesota 2, 982 3, 572 590 20 percent) and the Mideast (28.3 percent) ; the South- Iowa 2, 621 2, 760 139 5 Missouri 3, 955 4, 564 609 15 east, New England, and Great Lakes regions had de- North Dakota 620 643 23 4 clines of 16.5 percent, 12.1 percent, and 9.3 percent South Dakota 653 679 26 4 Nebraska 1, 326 1, 439 113 9 respectively. Kansas 1, 905 2, 275 370 19 Southeast 33, 792 42, 643 8, 851 26 Virginia 3, 319 4, 465 1, 146 35 West Virginia 2, 006 1, 809 -197 -10 Table 24-Regional Population Shifts, 1950-1966 Kentucky 2, 945 3, 181 236 8 Tennessee 3, 292 3, 866 574 17 North Carolina 4, 062 4,974 912 22 Region Percent net Region Percent net South Carolina 2, 117 2, 589 472 22 upward shift downward shift Georgia 3, 445 4, 445 1, 000 29 Florida 2, 771 5, 893 3, 122 113 Far West +81. 1 Plains Alabama 3, 062 3, 511 449 15 -33. 8 Southwest +16. 4 Mideast Mississippi 2, 179 2, 337 158 -28. 3 7 Rocky Mountains Southeast Louisiana 2,684 3,617 933 35 +2. 5 -16. 5 New England 12. 1 Arkansas 1, 910 1, 956 46 2 Great Lakes Southwest. 11, 375 15, 829 4, 454 39 -9. 3 Oklahoma 2, 233 2, 477 244 11 Texas 7, 711 10, 747 3, 036 39 New Mexico 681 1, 002 321 47 Arizona 750 1, 603 853 114 Rocky Mountain 3, 485 4, 680 1, 195 34 At the State level, the overwhelming influence of Montana 591 702 111 19 California is clearly reflected; the population growth Idaho 589 697 108 18 Wyoming 291 319 28 10 of this State accounted for a full 42.9 percent of the Colorado 1, 325 1, 955 630 48 Utah 689 1, 007 318 46 net upward shift (see Table 25).A distant second- Far West 15, 275 25, 238 9, 965 65 Washington 2, 379 3, 040 661 28 but still major growth State-was Florida, with 19.4 Oregon 1, 521 1, 973 452 30 Nevada 160 431 271 169 percent. Less impressive but relatively large popula- California 10, 586 18, 802 8, 216 78 Alaska 129 265 136 105 tion growth was also recorded by Texas (6.4 percent), Hawaii 500 727 227 45 New Jersey (5.4 percent), Arizona (5.3 percent), and

1 As of July, 1966. Maryland (4.9 percent). The net downward shift in Source: "1950 Census of Population," Volume 1, Table 6; "Current Population population was attributable mainly to Pennsylvania Reports," Series P-25, No. 380. (16.8 percent), New York (8.4 percent), West Vir- ginia (6.6 percent), and other States principally in Table 23-Regional Distribution of Population Growth Com- the Southeastern and Plains areas. pared to Median PopulationIncreases, 1950-1966' Table 25-States With Major Population Shifts, 1950-1966 Number of Number of Number of Region States States above States below median 2 median . State Percent net State Percent net upward shift downward shift New England 6 2 4 Mideast 6 4 2 California +42. 9 Pennsylvania -16. 8 Great Lakes 5 5 0 Florida +19. 4 New York -8. 4 Plains 7 2 5 Texas +6. 4 West Virginia -6. 6 Southeast 12 7 5 New Jersey +5. 4 Massachusetts -5. 7 Southwest 4 2 2 Arizona +5. 3 Kentucky -5. 3 Rocky Mountains 5 1 4 Maryland +4.9 Iowa -5. 3 Far West 6 3 3 Missouri Arkansas -4. 4 Illinois -4. 2 1 As of July 1, 1966. Mississippi -4.1 2 Median growth of population=451,000. Alabama -3. 8 Oklahoma . -3. 5 Sources: "1950 Census of Population," Volume 1, Table 6; "Current Population Tennessee -3. 3 Reports," Series P-25, No. 380.

35 TOTAL PERSONAL INCOME GROWTH, 1950-1966 Turning to the State level, California and Florida ---as was the case with population growth-complete- Between 1950 and 1966, total personal incomc ly dominate the advance in total personal income, ac- the United States rose from $227 billion to $581 countIng for 42.7 percent and 18.3 percent respective- billion (both in current dollars), an increase of 155 ly of the net upward shift(see Table 27).Other percent. As might be expected, this growth proceeded States scoring more modest but respectable gains at different rates both among geographic regions and under both measures of economic growth were Mary- States. Of greater significance, however, is the fact land and Arizona. States like New Jersey and Texas that this comprehensive measure of economic activity that ranked high in population growth do not appear reveals certain differences with regard to the major on the total personal income list, since both scored geographic growth areas that were not revealed in only minor gains in the latter measure. Georgia and the analysis of population growth and redistribution. Virginia appear in their place; both scored substan- Using the shift-share analysis with regard to total ti al advances in total personal income, but experi- personal income, the predominant importance of the enced more modest population shifts. Far Western States, accounting for 56.9 percent of the net upward shift, clearly emerges (see Table 26) . Table 27-States With Major Shifts in Total Personal Income, The Southeastern region scored the second most sub- 1950-1966 stantial increase, 35.5 percent, while the Southwestern State Percent net State Percent net States accounted for some 7.6 percent of the net up- upward shift downward shift ward shift. These relative gains occurred mainly at California +42. 67 New York -21. 95 the expense of the Mideastern region, which account- Florida +18. 31 Pennsylvania -20. 39 Maryland +5. 70 Illinios -7. 81 ed for fully half of the net downward shift. Other Arizona +4. 44 Massachusetts -5. 53 regions experiencing major downward shifts in total Georgia +4. 27 Iowa -5. 00 Virginia +3. 36 Missouri -4. 81 personal income were the Plains(23.6 percent), West Virginia -4. 48 District of Columbia -4. 10 Great Lakes (18.7 percent) and New England (6.5 Ohio -4. 01 percent). The major declines in total personal income were Table 26-Regional Shifts in Total Personal Income,1 950-1966 registered by New York and Pennsylvania, accounting

Region Percent net Region Percent net for 22.0 percent and 20.4 percent respectively of the upward shift downward shift net downward shift. This parallels their decline in

Far West +56.9 Mideast -49. 7 terms of population shifts. Other States to appear on Southeast +35.5 Plains -23. 6 the negative side regarding the two measures were Southwest +7.6 Great Lakes -18. 7 New England -6. 5 Illinois,Massachusetts, Iowa, Missouri, and IATztst Rocky Mountain -1. 5 Virginia. Their rank order with respect to each meas- A comparison of Tables 24 and 26 reveals both ure is not the same, however. Both the District of similarities and differences among regions with re- Columbia and Ohio were important components of spect to population growth and the rise in total per- the net downward shift in total personal income, but sonal income. The unparalleled position of the Far less so regarding population; States such as Kentucky, Western States again is clearly underscored as is the Arkansas, Mississippi, Alabama,.0klahoma, and Ten- more modest advance made by the Southwestern nessee-all of which were on the negative side regard- States. The major losses in terms of these two meas- ing population-scored either minor advances or de- ures of economic growth were recorded by the Plains clines concerning total personal income. and Mideastern States, though the ordering of these A SUMMARY OF REGIONAL AND STATE ECO- two regions differs for population and total personal NOMIC GROWTH MEASURES income. The Great Lakes and New England States were also on the negative side of the two measures. To this point, three indicators-per capita personal By far the most important difference to emerge is for income, population, and total persona! mcome--have the Southeastern States, which accounted for 16.4 been presented as measures of ,.1conomic growth percent of the net downward shift in population but among the various geographic regions and States. some 35.5 percent of the net upward shift of total Each of these three measure; has been calculated in personal income. The Rocky Mountain States also terms of relative as well as absolute change. Sincesix appear on different sides of the ledger for the two measures have been used in effect, itis not surprising measures, but the figures are far more modest-with that each yields different results concerning the "what 2.5 prcent of the net upward shift of population and and where" aspects of economic growth. 1.5 percent of the net downward shift in total per- The six measures are brought together in Tables 28 sonal income. and 29 in order to present a summary picture for each

36 Table 28Regional Summary of Economic Growth Measures, 1950-1966

Number of meas- Individual measures ures regional Region growth exceeds Relative Absolute Relative Absolute Relative Absolute national average per capita in-per capita inpopulation population total income total income or median come growth come growth growth growth growth growth

New England 2 - Mideast 3 Great Lakes 3 ^ + Plains 1 Oilm Southeast 4 Southwest 2 -T Rocky Mountains 1 - Far West 5 +

region and State. The pattern for each region and represented by one of the Great Lakes States since all State is compared to the national average or, in the five of these States exceeded the nationalrate in three case of absolute growth of population and total per- or four measures. Relatively weak economic growth, sonal income, to the U.S. median. Implicit in this indicated by two or lessmeasures exceeding the na- summary procedure is the assumption that each of tional average,was registered by several States, five the six growth measures has equal weight. This, of of which were in the Plains region. course, is an over-simplification, but one made neces- In selecting States that will be subsequentlyana- sary by the fact that the appropriate weights for each lyzed in depth, preferencewas given to those that re- indicator have not been established. Notwithstanding flect not only the varying growth performance andre- this limitation, it is sufficiently clear that regions and gional patterns but which in 1950 containeda suffi- States differed considerably with regard to these cient number of municipalities, since this is theintra- measures. state unit that is examined below. On these grounds, At the regional level, the strongest performance Florida, Louisiana, and Virginiawere selected to re- was registered by the Far Western States which sur- present strong economic growth, Ohio asaverage, and passed the national increases (or medians) inall Kansas as relatively weak economic growthover the measures, save for the percentage increase in per cap- period 1950-1966. ita income. The Southeastern States registered the second strongest overall performance, with only the THE MECHANISM OF COMMUNITY advances in absolute per capita income and relative ECONOMIC GROWTH population growth falling below national levels. Both the Mideastern and the Great Lakes regions revealed INTRODUCTION above-national growth for all the absolute measures The ability of a community togrow depends upon but below-national rates for all the relative indicators, its success in attracting additional spending within its further highlighting the differences between these two confineswhether this be personal consumption, busi- growth measures. Compared to these four regions, the ness investment, or government outlays. Every such remaining geographic sectors had relatively weak eco- dollar of additional spending constitutesan addition nomic growth. The New England and Southwestern to the community income and, depending upon the States experienced above-average growth in only two portion of the additional income that is spent within of the six measures, while the Plains and Rocky the communhy, the ultimate increase in income will Mountain regions produced onlyone instance of sur- be some multiple of the initial increase in spending. passing a national average. At the State level, the di- This "multiplier" then means that for every added versity in economic growth performancewas even dollar of spending in a particular community, the greater (see Table 29).Only Maryland scored above- income of the area will eventually increase byan average increases in each of the six measures, while amount greater than the initial dollar of pew spend- no less than seven States failed to register any instance ing. of above-national economic growth. Various communities will differ, however, in the ex- To provide a framework for selecting States that tent to which their incomes will grow as a result of represent this varying growth, all were classified ac- an additional infusion of spending. This means that cording to the number of measures whereby theirper- the "multiples" will differ depending upon the por- formance exceeded the national averageor median tion of the additional spending that is retained within and by geographic region(1:ee Table 30). Seven the community boundaries. For a large, industrially States exceeded the national figure for at least five diversified and relatively self-contained community, indicators,therebyindicating arelativelystrong the multiplier is likely to be larger than for a small growth record. Of these, three were in the Southeast- area, since more of the additional spending is likely ern region. A more nearly average growth record was to be retained within the larger community's borders.

37 Table 29State Summary of Economic Growth Measures, 1950-1966

Relative Relative Relative Absolute Absolute Absolute State Population total income income per population total income income per Pluses growth growth capita growth growth growth capita growth

United States 29 98 451 4,154 1,467

Alabama 3 Alaska 2 Arizona - 3 Arkansas -F 1 California 5 Colorado 3 Connecticut 5 Delaware 2 District of Columbia 1 Florida 5 Georgia 4 Hawaii 4 Idaho 0 Illinois -7- 3 Indiana 4 Iowa 3 Kansas 1 Kentucky 2 Louisiana 5 Maine 1 Maryland 6 Massachusetts 4 Michigan 4 Minnesota 4 Mississippi 1 Missouri 2 Montana 0 Nebraska 0 Nevada 3 New Hampshire 3 New Jersey 5 New Mexico 3 New York 3 North Carolina 4 North Dakota 0 Ohio 3 Oklahoma 1 Oregon 2 Pennsylvania 2 Rhode Island 0 South Carolina 2 South Dakota 0 Tennessee -7- 4 Texas 4 Utah 2 Vermont 2 Virginia 5 Washington 3 West Virginia 1 Wisconsin 4 Wyoming 0

Table 30Distribution of States by Above-National Growth Characteristics, 1950-1966

Number of meas- Geographic regions of States ures where State Number of growth exceeds States Northeast Mideast Great Lakes Plains Southeast Southwest Rocky Mountain Far West national

6 1 1 5 6 1 1 3 1 1 4 10 1 3 1 3 1 3 11 1 1 2 1 1 2 1 2 2 9 1 2 1 2 1 2 1 7 1 1 1 3 1 0 7 1 3 3

I The measures are: I1 absolute increase in per capita income; 2 absolute increase in total income; 3 absolute increase in population; 4relative increase in per capita income; 5relative increase in total income; 6relative increase in population. Although thincome multiple can be generated by Government spendingwhether Federal, State, or any addition to spending, business investment deci- localcan also affect the growth of community in- sions as well as governmental outlays constitute poten- come. To cite just one example,Federal military ex- tially, if not actually, the two most dynamic sources of penditures, because of their size and uneven geo- new spending. Location theory provides a general graphic impact, are in some areas important deter- basis for the process through which business decides minants of regional growth. One way of gauging this to invest in the expansion of existing plant and equip- differential impact of Federal military expenditures ment or to establish a new branch. is to determine the degree of defense dependency

38 that is, the proportion of the civilian labor force en- To analyze the economic growth of cities, the per- gaged in defense-generated employment. For the na- centage as well as absolute change in median family tion as a whole, a recently published survey found income between 1950 and 1960 is used as the criteria that the average defense dependency was 3 percent as to be "explained." The factors that appear related to of June 1966.3 Twenty-two States as well as the Dis- the differential rates of growth in median family in- trict of Columbia, however, either equalled or ex- come among various municipalities within specific ceeded this figure. At the top of the list, Alaska had States (or groups of States) are the measures to be 9.7 percent of its work force engaged in defense-gen- explored. The use of median family incomea var- erated employment while Idaho had the least, only iant of the more or less standard measure of per cap- 0.3 percent. ita incomehowever, should be viewed differently at Another dimension of military expenditures in- the municipal than at the national level because of volves labor market areas having at least 500 defense- the movement of people especially within as well as generated workers or a defense dependency ratio of among States. Hence, while median family income greater than 5 percent. Of the 292 such communities, facilitates comparisons among municipalities of dif- the defense dependency ratio varied from over 15 per- ierent sizes, it nonetheless may result from population cent to below 3 percent. Areas with the highest de- decline, a decline which exceeds that in total income. pendency ratios tended to have a small labor force Economic growth at the municipal level can be while the lower ratios were generally found in larger explained, at least in part, by examining two sets of areas. In addition, this study reveals that 41.6 percent factors. As was mentioned at the outset, there is inher- of the defense-generated employment was located in ently a national aspect to the subject of economic 108 areas having a dependency ratio of 6 percent or growth and the first set of factors to be discussed moretwice the United States average. those applicable to all municipalitiesrelate to this Ckarly, the geographic distribution ofdefense feature either primarily or exclusively. Yet, there is spending and of new plant locations by private busi- more to the subject of municipal economic growth ness, with their resulting income multipliers, can be than simply the national or common factors. If this factors of considerable import in determining the were not the case, municipal economic growth would future course of income growth for the localities so br more or less parallel throughout the nation. To favored. put it somewhat differently, if the common factors were the only relevant change-initiating forces, then MUNICIPAL ECONOMIC GROWTH municipal economic growth would be a mirror image One of the initial questions in analyzing economic of the national pattern, though on a smaller scale. growth at the sub-national level is the choice of the The second set of factors to be discussed may be con- basic unit to be studied. This problem, in turn, in- sidered as primarily indigenous to the specific com- volves the functional interrelationships and interde- munities. pendencies that existand changeamong the vari- While these special factors are relevant to a study ous sub-national units. According to one study: of municipal economic growth and may, in fact, be A growth center is identified by its spatial and functional the more important set of considerations, the very spe- positions as well as by its rate of growth in population, em- cific nature of their impact as well as data limitations ployment, and income. Thus, the criteria identifying a growth center include its hierarchial position among several urban preclude applying such factors as an explanation for places (each of different size or performing different urban the differing growth rates. For these more or less spe- functions) and its relation to the transportation and com- cific growth factors, itis possible only to indicate munication networks.' those which appear to be the more important deter- For the purpose of this portion of the study, Ple minants of business location decisions. municipality was chosen as the unit for analysis. It is necessary to determine whether the individual While several highly specialized areas may meaning- common factors have a systematic relationship to vari- fully be considered as constituting a single functional ations in median family income among municipal- economic "region," it is nonetheless true that a na- ities.*, Aside from Kansas where localities with a tional policy regarding urban growth and new com- 10,000 population level in 1950, were included, all munity development can meaningfully draw upon the municipalities with populations in excess of 25,000 recent growth experience of existing cities. New urban as of 1950, but less than 250,000 in either 1950 or areas seem more likely to take on certain aspects of 1960, were included. Since only municipalities within existing cities, rather than a restructuring of existing geographic units. Thus, the municipality nd a study *For this purpose the Spearman rank-order correlation of those characteristics that help explain the differing coefficient was computed. It should be noted that the correlation coefficient measures only the degree of association be- growth rates among cities provide a more relevant tween thfactors considered and does not purport to measure frame of analysis. cause and effect.

39 a given State or groups of States within the same geo- entire story. The same phenomena, occurring insur- graphic region were considered, the municipalities rounding or even in distant locations, if channeled were rendered homogeneous with regard to any re- as effective demand into the local area, will produce gional influence that may relate to the differential the same effects on local income as local population rates of growth in median family income. growth and for the same reasons. While conceding The period covered by the correlation analysis is this qualification, it should be added that such inter- the ten year span, 1950-1960. While it would have dependencies are applicable not only to the munici- been preferable to extend the period to 1966, this palities but to other sub-national units as well. was not possible because data for certain of the com- The next two variables representin broad,aggre- mon factors are simply not available for years later gate categoriesthe industrial composition of the than 1960. Hence, for the purpose of comparability labor force. The process of economic growth after all among the several factors to be considered, the ten tends to draw resources away from agriculture to the year period 1950-1960, for which all the necessary manufacturing and service sectors. This reflects the data are available, was used. fact that as incomes rise, consumption patterns are altered, with food purchases constituting a smaller THE COMMON FACTORS part of high income budgets than is true for low in- The first set of factors to be applied to the differen- come individuals. Hence, as incomes rise, demand for tial rates of municipal economic growth are those that nonagricultural products tends togrow relatively are common or general to all municipalities, though faster than the demand for food. Asa result, less re- growing at differential rates among the various cities. sources are devoted to the agricultural sector. For reasons explained below, the four variables se- Also affecting the industrial structure is the influ- lected represent measures whose effects have beenor ence of technological change. Technological advance can be influenced by deliberate policy decisions in the a phenomena that has characterized the agricultural sectormeans that the same level of output can governmental sector. These common or general fac- be produced with the use of less labor resourcesthat tors are: is, costs and product prices are reduced. Since the the percentage change in population, demand for food is not very sensitive to changes in the change in the proportion of total employment engaged in manufacturing, relative prices, the combined effects of technology and the change in the proportion of total employment engaged income result in lower agricultural employment. in wholesale and retail trade, and Focusing on municipal economic growth, the rele- the change in the proportion of nonwhite population. vant changes in industrial composition are those Each of these specific factors was correlated with within the non-agricultural sectors. At this level, the the percentage change in median family income. The differential rates of growth in income may be associ- same factors were also correlated with the differential ated with the differential rates of change in the pro- rates of absolute change in median family income. portion of total. employment engaged in two broad For this set of correlations, the absolute change in industrial classificationsmanufacturing and whole- population growth was used while each of the other sale-retail trade. Each of these sectors has a relatively factors was measuredas before. Again, each of the favorable income effect. The influence of technology, common factors was related individually to the abso- however, is somewhat more complex. To be sure, lute changes in median family income. technology need not proceed at an even pace among The above measures were selected sinceon a priori the various industries and indeed has been far more important in manufacturing than in the service sector. grounds they appeared relevant to the growth inmedian family income. Population growth, for example, Taken by itself, rapid technological change initially can be considered as leading to increased demand for tends to displace workers in a particular industry; goods and services, the immediate effect of which is hence the proportion employed will decline. Since it to raise prices. To meet these increased demands, ad- also permits lower product prices or the introduction ditional factors of productionland, labor, andcap- of new products, the proportion employed may in- italmust be attracted. Each of these receivesa mon- crease over time, particularly if these forces are com- etary payment in exchange for its services and must bined with the favorable income factor. be drawn from those previously unemployedor by In other words, variations in the rate of growth in higher compensation. median family income among municipalities may re- This hypothesis representssome over-simplification sult from the fact that certain cities have attracted a in that it assumes the various municipalitiesare self- disproportionate share of the faster growing indus- contained units. While the population growth of the tries. For manufacturing, increases in the employment particular community is clearly relevant, it isnot the proportion would reflect both a favorable income and 40

-p-stetnIlj, technology effect. For the wholesale-retail trade sec- the greater gains in median family income. The tors, the favorable income factor may be offset by the change in the non-white proportion was inversely re- comparatively slow technological change and may related to variations in the absolute rates of income sult in a declining proportion of employment. that is, those municipalities having the greatest in- The last hypothesis to be tested is whether the dif- crease in their nonwhite proportions had the smallest ferential rates of growth in municipal median family increases in median family income. income bear a systematic relationship to variations in Although neither of the two variables relating to the rates of change in the proportion of total popula- the changing industrial structure was significantly re- tion that is nonwhite. Since the nonwhite population lated to the absolute change in median family income, may be less well educated or face barriers toemploy- the relationships were close. While there was some ment opportunities that are not encountered by the tendency for median family income to increase with white population, it was anticipated on these grounds the proportion employed in manufacturing and to that a negative relationship would exist between the decrease with the proportion engaged in wholesale- growth in income and the nonwhite population. retail trade, these relationships were not sufficiently clear-cut to rule out the possibility that they were EMPIRICAL RESULTS merely random. Florida-Louisiana-Virginia. The classification of When variations in the percentage increase of me- growth measures revealed that these three Southeastern dian family income is the factor to be explained, dif- States dominated the findings in regard to relatively ferent relationships emerge. Both variables represent- strong growth performance over the years,1930-1966. ing industrial structure are systematically associated; Since none of the three contained many municipalities, the change in the proportion engaged in manufactur- they were combined and all of their municipalities ing is directly linked to the percentage change in income while the change in the proportion employed meeting the requisite population size, were considered in wholesale-retail trade is inversely related. Neither as a unit. These States, however, are all in one geo- of the remaining factors, however, is systematically graphic region, hence the influence of regional factors related, though the proportion of nonwhite popula- affecting median income is held constant. tion approaches it and has the anticipated negative Several rank-order correlations reveal that certain sign. common factors relate systematically to variations in Ohio. Of the several States reflecting more or less the rate of growth in median family income among average growth performance, all five of the Great the municipalities of Florida, Louisiana, and Virginia. Lakes States were represented. Since this indicated a These relationships are sufficiently strong to preclude relatively homogeneous region, one of the five States the possibility of chance phenomena. Variations in was selected. Since Ohio had enough municipalities absolute rates of growth(1960-1930)in median fam- meeting the population criteria it was unnecessary to ilyincome,consistentlycorrelatedwithabsolute combine them with those of other States in the region. changes in population, as well as shifts in the propor- The relationships used for the municipalities of Flor- tion of the population that was nonwhite (see Table ida-Louisiana-Virginia were again tested. The results indicate that five of the eight relationships established 31). As expected, population growth was directly re- for the Florida-Louisiana-Virginia municipalities also lated to the growth in income, thereby indicating hold for Ohio's several municipalities. In three in- that those areas with high population growth had stances, however, the findingsdiffered(compare Tables 31 and 32). Table 31Relationships Between Common Factors and Growth in Median Family Income in Florida, Louisiana, and Virginia Among the municipalities of Ohio, population Municipalities, 1950-19601 growth was significantly, and positively, associated not only with the absolute change in median family Direction of relationships income (as was true in Florida, Louisiana, and Vir- ginia) but with the percentage change as well. Com- Percentage increase in median family income and: 1. Percentage increase in population munities experiencing the largest changes in popula- 2. Change in proportion employed in manufacturing 3. Change in proportion employed in wholesale-retail trade tion then also had the greatest increases in median 4. Change in proportion of nonwhite population Absolute increase in median family income and: family income. Moreover, the change in the propor- 1. Absolute increase in population 2. Change in proportion employed in manufacturing tion of the nonwhite population was systematically, 3. Change in proportion employed in wholesale-retail trade 8 4. Change in proportion of nonwhite population and negatively, related to the absolute change in income. Includes municipalities with 1950 population greater than 25,000; excludes munici. There was no significant relationship between the palities exceeding population of 250,000 in either 1950 or 1960. Note: + indicates a statistically significant and positive relationship. change in the proportion of the nonwhite population indicates a statistically significant and negative relationship. 0 indicates no statistically significant relationship. and the percentage increase in income among Ohio

41 -ts Table 32Relationships Between Common Factorsand Growth in Median Family Income Among Ohio Municipalities, torsthe proportion ofnonwhite population,per- 1950-19601 centage engaged in manufacturingor the percentage employed in wholesale-retailtrade, however, Direction of were relationships significantly associated withthe absolute increase in median family income. Infact, there was no discern- Percentage increase in median family income and: 1. Percentage increase in population ible relationship betweenincome and either thenon- 2. Change in proportion employed in manufacturing 3. Change in proportion employed in wholesale-retail trade white population changeor the proportion engaged 4. Change in proportion of nonwhite population Absolute increase in median family income and: in manufacturing. 1. Absolute increase in population 2. Change in proportion employed in manufacturing A reasonably strong correlationdid emerge between 3. Change in proportion employed in wholesale-retail trade 4. Change in proportion of nonwhite population median family income andthe proportion engaged in wholesale-retail trade; whilethis relationship was not Includes municipalities with 1950 population at least 25,000;excludes munici- significant in a statisticalsense, it was very nearly so. palities exceeding population of 250,000 in either 1950's or 1960's. The negative sign of this Note: + indicates a statistically significant and positive relationship. association indicates that indicates a statistically significant and negative relationship. those municipalities with 0 indicates no statistically significant relationship. the greatest increases in income had the smallest increases,or greatest declines, municipalities. Nor was thereany consistent link be- in the proportion engagedin wholesale-retail trade. tween the change in the proportion employed inman- This same negative relationshipemerged in terms of ufacturing or wholesale-retail trade and the absolute the percentage increase in medianfamily income and or percentage rates of growth in median family in- again the result approachedstatistical significance. come. No statistically significant associationwas found These negative correlationssuggest that workers then between industrial structure and incomechanges. either switched from thewholesale-retail sector to some faster growing industry (thoughnot necessarily Kansas. The final Statewas selected to represent manufacturing)or that the added population gained those whose economic growth had proceeded at a lag- employment outside the wholesale-retailand manu- ging pace. In terms of regional distribution,the Plains facturing sectors. Underlyingthese changes would be States tended to cluster in this sector withfive of the the income and technologyfactors whichmay have sevenexperiencingcomparativelysloweconomic favored employment in the non-tradesectors. None of growth. Of the five, Kansaswas chosen. Since none the other relationships of the five, taken singlyor together, contained a suffi- was consistently linked to the cient number of municipalities falling variations in the percentage increases inmedian fam- within the ily income among Kansas municipalities. 25,000-250,000 populationrange, it was necessary to extend the range downward to include those with,at SUMMARY AND POLICY IMPLICATIONS least 10,000 population in 1950. RE- GARDING COMMON FACTORS Among the several Kansas municipalities,Nraria- tions in the absolute rate of median incomewere sys- The various correlations reveal thatcertain com- tematically related to the absolute growthin popula- mon factors relate systematically to variations in in- tion and, as expected, the associationwas direct (see come growth among municipalities withina given Table 33). This means that thosecommunities which State (Ohio and Kansas)or among States within a had the greatest absolute increase inmedian family given geographic region (theSoutheastern States of income also tended to be those which hadthe greatest Florida, Louisiana, and Virginia).These correlations absolute population gains. None of theremaining fac- indicate that one ormore of the common factors are relevant within a State orgroup of States. The same Table 33Relationships Between CommonFactors and Growth factors, however, are not generallyrelevant to each in Median Family Income Among KansasMunicipalities, 1950-19601 State or necessarily of thesame importance for the particular States where theyare significantly related. Direction of The general or common factors discussedin this sec- relationships tion then are not of uniform applicability, thoughthey Percentage increase in median family income and: do help to explain variationsamong municipalities' 1. Percentage increase in population 2. Change in proportion employed in manufacturing income growth. 3. Change in proportion employed in wholesale-retailtrade 4. Change in proportion of nonwhite population Based on the findings, population growth isthe fac- Absolute increase in median family income and: 1. Absolute increase in population tor most frequently found to be systematically related 2. Change in proportion employed in manufacturing 3. Change in proportion employed in wholesale-retail trade to variations among municipalities' growth in median 4. Change in proportion of nonwhite population family income. For public policymakers, then,programs oriented to facilitating population redistribu- Includes municipalities with 1950 population at least10,000; excludes municipalities exceeding population of 250,000in 1950. tion are germane. A national policy directed toward Note: + indicates a statistically significant and positiverelationship. 0 indicates no statistically significant relationship. a more balanced pattern of urbanization, therefore, 42 would seemingly be more effective if it included pol- the location decision process than might otherwise be icies that lessen the barriers to migration or enhance inferred. For example, industries or firms which find the attractiveness of new or existing communities. that transport charges on inputs exceed those on out- Another factor that was systematically, though neg- putsfor the same distanceare more likely to be atively, related to the variations in income growth at input oriented in their location decision. Firms requir- the municipal level was the increase in the proportion ing bulky, weighty or extremely delicate capital equip- of nonwhite population. Since the nonwhite popula- ment, hence large transportation or insurance outlays, tion suffers employment disadvantages compared to will tend to choose location sites close to their supply the white population, consideration might be given sources over those favoring their output markets. policies to further enrich and strengthen programs A second broad set of considerations involves the designed to remove the remaining obstacles in various way a firm's sources of supply and markets are spa- forms of employment. The least consistent of the com- tially distributed. As a rule, bP+h the market and in- mon factors were those relating to industrial structure. put sources tend to be distributed over various geo- This suggests that there is no single type of employ- graphic areas. A location decision based strictly on ment opportunity, at least not in manufacturing or this consideration is likely to lead to an intermediate trade, most likely to stimulate income growth. None- site, one that, other things being equal, is best for all theless, at least in specific instances employment in the various markets or supply sources. these sectors does appear relevant. Since new employ- Market oriented firms or industries, such as whole- ment opportunities are conducive to the economic sale, retail trade, and service enterprises, inevitably growth of urban areasif not necessarily their differ- find that the populations they serve are distributed ential rateslocational factors favoring specific areas over several different geographic areas. As a result, are not only germane but may indeed be the decisive their location decision will tend to favor a transpor- set of considerations. tation center, one that permits access at competitive prices to the several sources of consumer demand LOCATION FACTORS rather than to one. Location theory suggests certain characteristics that The locational pattern of business is also influenced are influential in determining where business will by the relative size that firms must attain in order to locate.5 The decision to relocate an existing plant or produce efficiently. Certain industries and firms with to establish a branch in a new locality, however, is heavy initial fixed costs, for example, can only achieve not frequently made and may be rendered by a few maximum efficiency in terms of costs per unit at high individuals whose experience is limited. A personal levels of outputhigh in relation to the market for element then enters into the selection of new sites as their products. Such establishments are characterized well as economic considerations. Since only a few in- by having internal economies of scale which, in turn, stances occur in which economic considerations re- result from their production techniques. garding location are not important, such as the use For firms that experience substantial internal scale of an input for which there is no substitute or where economies and are of relatively large size, the loca- transportation costs are negligible, these consideration decision, whether input or output oriented, will tions undoubtedly are carefully assessed in choosing be tilted in favor of a relatively few location sites re- among various potential alternative locations. sulting in industrial concentrations. Some of the economic considerations relate to the Economies also result from forces external to busi- availability and cost of raw materials and labor at ness firms. Such economies may emerge from the various sites; others include their relative accessibility growth of the industry itself which permits specializa- to markets. Thus, the quantity, quality, and relative tion in related sectors or induces additional growth in prices of a locality's resources present one set of fac- related industries. The latter may lead to internal tors"cost" considerationsinfluencing the location economies which ultimately will yield lower unit costs decision; the size of the market, and its proximity in to the initial industry. Various other types of external terms of transportation costs which permit price com- economies also exist, such as the availability of the petition constitute a second"price" considerations. necessary city infrastructure and an industriallyori- Since the several alternative localities are likely to ented labor supply. differ considerably in regard to one or more of these Many of these various external economies result factors, the ultimate location decision will reflect a from the existing concentrations of economic activi- balancing of objectives, including personal preference, ties, reflecting the joint growth of related industries that differ from industry to industry and from firm to in the past and from population densities, which facil- firm. Some general tendencies, however, would ap- itate the location of specialized market oriented serv- pear to introduce a greater degree of regularity in ices. These considerations have led location theorists

43 to develop the concept of agglomeration, which re- availability of 10-or (skills, supply), lates to the size of the market or supply sources. Ag- industrial climatt--the attitude of the State and glomeration effects, which introduce the spatial di- community toward industry, mension of regional economic growth, arise from the taxes, and established concentration of economic activity. To proximity to materials (including transportation the extent that the existing distribution of economic costs). activity yields external economies, and therefore exerts Despite the general agreement concerning the rel- an influence on price, decisions made inthe past will, ative importance of these specific locational factors, in part, be reflected in current location decisions. As some differences also emerge. Consumer goods manu- a result, there is a built-in tendency forfurther con- facturers (food, textiles, furniture, etc.) placed greater centration of economic activity in given areas. In cer- emphasis on the proximity to markets as location tain cases, however, this "herd-effect" may be counter theory suggests than on any of the remaining factors, balanced by diseconomies such as higher land rents most of which are "input" considerations. Manu- that also may result from the agglomeration tendency. facturers of rubber, plastics, petroleum, and chemi- A related conceptnodality----also pertains to the cal products, and producers of primary metals placed spatial dimension of growth. This principle holds that far less emphasis on the availabilitythoughnot costs proximity rather than concentration of population of labor than did the remaining industriessur- and industry is a key location factor. It is necessary to veyed. Finally the industrial climate factorwas of note, however, that distance or the constraints im- relatively minor significanceto manufacturers of posed by space can be sigmificantly reduced by techno- transportation equipment, though not to the remain- logical advance in the transportation and communica- ing industrial sectors. tions industries. Indeed, it is the accessibility at com- In addition to these six locational factors, which petitive costs and prices of alternative potential sites largely corroborate the findings of location theorists, to markets and to inputs rather than distance per se the Survey Research Center's study found that other that is the critical element of location theory. considerationssometimes viewed as prime factors These general principles regarding location decisi- were lessrelevant, though again there are some sions suggest that for nearly all firms a balancing of input and output considerations must be resolved marked differences among the respondents: among potential alternative location sites, but the water supplyreferred to most frequently by man- relative importance of specific factors is likely to dif- ufacturers of rubber, plastics, petroleum, and chem- fer. Various survey studies of these factors substanti- ical products; ate the significance of the input-output distinction unionism; made by location theorists. These studies also high- community factors; light some of the specific location factors considered marketing facilities; by business executives and tend to confirm the vary- traffic access and parking; ing importance, at least within certain limits, among zoning and other regulations; and different industries. local sources of financing. Two of the several survey studies will suffice to il- While differences concerning the relative import- lustrate.° These studies, it should be noted, pertain to ance of these specific locational factors do emerge specific regionsMichigan and the Washington-Balti- even within the manufacturing sector, the contrasts more area. Some of the differing attitudes in the two among industrial sectors is more dramatically under- studies may reflect this geographic factor, but other considerations suggest that the area difference is not scored by comparing the above findings with those sufficient to explain the varying responses. provided by a survey of scientifically oriented firms The first of these surveys was conducted by the located in or considering the Washington-Baltimore Survey Research Center of the University of Michi- area. Certain factors again were mentioned as being gan and was based on personal interviews with top "desirable" such as the availability of scientific executives of 239 Michigan manufacturing plants in (skilled) as well as semi-skilled and non-skilled labor. March and April, 1961. Responses covered all man- The major "desirable" factor, however, was adequate ufacturing industries as well as six broad industrial provision of employee housing in communities hav- classifications. For the manufacturing sector asa ing active cultural, educational, and civic activities. whole, the six most important locational factors in- This was followed by the desire for plant location cluded, in order of the number of times cited: within a half-hour's commuting distance of a com- labor costs (wages, productivity), mercial airport. Of the various factors receiving fa- proximityto markets(including transportation vorable mention by the respondents participating in costs), this second survey, much greater emphasis was placed 44 on available educational, cultural, and housing facili- ratio of public employmer., to population. Indeed, ties, including a wide range of types at all price levels, there are three measures of population and its distri- than was found in the Michigansurvey. bution that can affect public expenditures andem- To sum up, locational theory and thesurveys of ployment per capita(1) the number of people; (2) business executives indicate that general considera- the density of population; and (3) therate of popu- tions, such as the input-output orientation of the in- lation change. The effects of these populationfactors dustry or firm, are critical elements in weighingpo- on the public sector are likely to differ, however, for tential sites for locatinga new plant. One inference the various functions. for public policy-makers is quite clear; namely, that The number of people or city sizemay be directly several of the specific locational factors cited by busi- related to expendituresper capita and employment ness leaders may be affected by governmental deci- levels either because population size leadsto dis- sions. As the Michigan study states: economies of scaleor because it makes more or better It is worth noting that not all of the six leading factorsare public services necessary or feasible. Diseconomiescan "given," in the sense that they dependon natural advantages, emerge as a city expands beyond its "optimal" size the state of technology, or the geographic distribution ofcon- and enters that part of the expenditure sumers.' or employment curve where unit costs or labor needs increase To the extent that transportation facilitiescan help with additional numbers. Alternatively,population achieve greater proximity to markets and materials, size may lead to economies of scale in theprovision governmental policy obviously can be influential. The of certain public servicesas costs are spread over a same can be said of the industrial climate factor, com- larger number of people, thereby reducingunit costs. munity facilities, and the level oftaxes. It is important to note, however,that some "scale The last factor raises the issue of tax concessions economies" may result ina deterioration of service to attract industry. The Commission has previously levels.'es studied this subject and concluded that State and The second population factordensity,or number local "special tax concessionsto new industry can of people per square mileprovidesa measure of the have baneful effects onour federal system by setting average population concentration. City per capitaex- in motion a self-defeating cycle of competitivetax penditures and employmentmay be directly related undercutting and irrational discriminationsamong to population density since the crowding together of business firms." 8 Moreover,a recent survey of broker large numbers of people makesmore difficult, and members of the Society of Industrial Realtorsreveal- therefore more expensive, the provision ofcertain ed that "special considerations,tax concessions, State public services. On the other hand, concentrationsof or municipal construction, financing, etc."was the people also permit a more intensiveuse of the exist- least important of eighteen specific locationalfactors ing "plant", though again service quality mightdi- mentioned.9 While State and localtax concessions ap- minish. At some point, however, additionsto popula- pear to be of limited significance in attractingnew tion concentrations will requirenew or expanded fa- industry, a Federal tax credit scheme, whichavoids cilities. self-defeating competition,can nonetheless be one of The third population factoritsrate of change the elements to be considered inimplementing a na- is relevant to this analysis since itcan lead to in- tional urbanization policy. creased demands forpublicservices.Per capita A second important inferenceto be noted by pub- spending and employment, however,may actually de- lic policy-makers is that the locationalfactors are not cline, again becausemore intensive use is made of of similar importance Tor varioustypes of industries. existing facilities andany excess capacity is more fully Some factors are beyond the influenceof governmen- exploited. Also, the rate of population changemay tal policy, but even those thatcan be affected are not affect the decision-makingprocess of govermnent of- likely to be of equal significanceto all industrial sec- ficials. If budgeting for the new public demands tends tors. to lag behind the actual change in population, there would be a negative relationship between THE RELATIONSHIP OF POPULATION per capita AND PUBLIC EXPENDITURES expenditures or employment and the rate of population change. As noted earlier, both population andits rate of In addition to these three population measures, cer- growth differ considerably from regionto region and tain other explanatory factors were used in the follow- from State to State. At the municipallevel this also ing analysis of city per capita public expenditures and holds true, and these differences inpopulation charac- employment. These include: the percentage of popu- teristics may help explain part of thediversity among lation that was 65 years of age or over, the median the various cities inper capita expenditures and the number of school years completed by those 25 or

45 older, and median family income. These three non- from 25,000 to 250,000 as of 1960) within each of population factors were included because on eco- three States. These States were New Jersey, Texas nomic grounds they appear relevant to an explana- and Ohio, each of which had sufficient municipalities tion of why cities differ in their per capita spending for the analysis. Although it is not possible to exclude or employment for various functional categories of wholly the variations in State-city fiscal responsibili- public services. The two variables relating to age ties, this procedure does tend to introduce a much composition, for example, are designed to determine greater degree of comparability among the cities than whether tastes for public services differ according to would be the case if, for example, cities within differ- age or educational achievement. Median family in- ent States or for the nation as a whole were investi- come can represent either a measure of demands for gated. public services or the fiscal ability of various com- Secondly, there are differences even within a State munities to support their respective public sectors." incity responsibility for certain functions. This is These six independent variables constitute the ex- particularly true for those such as education, welfare, planatory framework; the focal point of analysis is and health-hospitals where school districts, counties, the relationships between the variations in city ex- or other local units of government provide varying penditures or public employment per capita for vari- degrees of financial support or where interlocal con- ous public functions and the three measures of popu- tracts may have shifted administrative responsibility lationcity size, population density, and rate of popu- from one unit to another. For this reason, these func- lation change. It is important to note that per capita tions were not studied. The aggregate categories ana- expenditure and employment figuresthe dependent lyzed were total expenditures, the number of full-time variablesare the actual amounts spent or number equivalent employees, and the number of full-time employed; they do not represent need or the desirable equivalent employees engaged in "common func- level of public services except insofar as the actual tions." These common functions, which were also in- amounts approximate these more Lubjective meas- vestigated separately, include the following specific ures. categories :police,fire,highways,sanitation and Nor do the expenditure and employment d ta di- sewerage, parks and recreation as well as general con- rectly reflect differences among cities in suchatters trol. as quality or productivity in public functions. Efficien- For the expenditure data, a further distinction was cy and quality differences, of course, are important made between those expenditures representing current considerations but measures of these are far from operations and those for capital outlays. Since it seems readily available. It is actual expenditures and em- reasonable to assume that factors related to one ex- ployment per capita that are analyzed and not units of penditure concept need not necessarily be related to service or their relative quality. In addition, a par- the other and since capital outlays vary considerably ticular problem arises with the expenditure data; from year to year, the latter were excluded from the namely, these amounts include the influence of dif- expenditure data where possible. While capital out- ferences in price levels among cities. This is avoided lays are included in many of the categories that are when the second measure, public employment is used. analyzed, they are not particularly large components. This latter index, while relating only to the labor Thus, they should not seriously distort the analysis.13 input, is nonetheless a reasonablemeasure of governmental activity since such services tend to be labor- EMPIRICAL RESULTS intensive. Findings of this analysis reveal certain systematic METHOD AND SCOPE relationships between the individual explanatory factors and various functional classifications. Equally To determine the relationships between cityex- important, however, is the fact that relationships which penditures and employment per capita and thepopu- are statistically significant for various cities within a lation measures, a multiple regression techniquewas State, are not necessarily applicable for all of the se- used." For the following analysis, it isnecessary to lected States or all States generally. take account of two problems relating to variations Population size effect. Although there is but one in functional responsibilityamong the several cities. instance in which increasing city size is systematically Cities may differ in their per capita spendingor em- related to higher per capita expendituresfire protec- ployment simply because the State-city split in financ- tion among the various Texas citiestherc are five ing arrangements differs or because city/other local cases where population and public employment are di- government ratios diverge. To minimize the first rectly, and significantly, associated. This holds true for problem, selected Stateswere chosen and relation- per capita public employment in the parks and recrea- ships were run for the various cities (ranging in size tion function both in Ohio and Texas as well as for the 46 following employment categories in Texas:full-time certain public services (such as police protection) employment in the common functions,police protec- which swell the per capita expenditure and employ- tion, and fire protection (see AppendixTables II-A ment figures, based as they are on residentpopula- through II-F) . In each of the abovefunctional cate- tions. Moreover, the larger cities also provide various gories in these particular States, therelationship with amenities-libraries, museums, zoos, etc.-that are population is direct, indicating thatincreasing city also available to non-residents. Whether or not afee size leads to higher per capitaexpenditures or em- is charged for such use, such services add to the per ployment. capita figures. Apart from these instances, however,the more Looking first at public expenditures within Ohio, frequent finding for the three States is thatthere is no the larger municipalities tended to spend more per consistent relationship between city size andthe func- capita for each of the seven expenditure functions tional categories analyzed. Based onthese findings studied, and substantially so for the total current, then, it seems reasonable to concludethat, at least police, sanitation and sewerage as well as parksand for cities up to 250,000, population by itselfdoes not recreation functions (see Table 34). Since there are generally result in any major economies ordisecon- only six large cities to compare and because the other omies of scale. This does not preclude,of course, the explanatory factors are not considered, this examina- possibility that a population larger than250,000 may tion of relationships for the large cities alone mustbe affect per capita public expenditures andemploy- tentative. Nonetheless, Table 34 suggests that thereis ment. Since the very largecities would exert a dis- no relationship betweenpopulation size and either proportionate effect on the statisticalresults, they per capita total current orgeneral control expendi- were excluded fromthe previous analysis." tures. Highway spending per capita inOhio tended to To gauge the influence of largepopulations, aver- bottom out at a population size of 471,000 (though age per capita spending andemployment for the var- the decline is not steady) and then to rise-suggesting ious functions was compared for two groupsof cities a more or less U-shaped curve,with possible disecono- within the individual States-those in the25,000 to mies of scale becoming effective beyond the 471,000 250,000 class and those above 250,000. Inaddition to level (Columbus). In addition, per capita spending the qualifications mentioned earlier, it is necessaryto for police protection, sanitation and sewerage, as well note that for larger cities the percapita expenditure as parks and recreation allsteadily increased beyond and employment figures are less accurateindicators the 471,000 mark, though just before this level there of services provided even aside from qualityand is no evidence of a continuous decline. Per capita productivity considerations. This reflects the fact that spending for fire protection increased beyond the large cities have a disproportionate share of com- 290,000 population level and this progression was muters, visitors and shoppers all ofwhom require broken only for the very largest city (Cleveland). Table 34-Per Capita Expenditures for Selected Functions by CitySize in Ohio

Sanitation Parks and General Cities Population, Total Highways Police Fire 1960 current and sewerage recreation control

6. 93 8. 74 8.12 8.51 3.03 2.98 25,000 to 250,00) 55. 35 13.14 10.44 10.39 6.29 3.06 250,000 and over 83. 73 7.24 262, 332 74. 08 5. 78 12. 53 11.76 10.40 7.20 3.72 Dayton 9.21 3.17 2.37 Akron 290, 351 71. 67 10. 83 8. 41 5.97 12. 54 9.87 11.40 5.44 2.61 Toledo 318, 003 82. 52 7. 44 471, 316 62. 22 4. 64 12. 00 11.02 8.45 5.28 3.38 Columbus 15. 63 13.54 10.98 6.08 3.09 Cincinnati 502, 550 134. 42 6. 72 8. 05 17. 73 10.48 11.89 10.57 3.19 Cleveland 876, 050 77. 46

Turning to public employment data withinOhio, sanitation and sewerage as well as in the parks and generally comparable findings emerge. Withthe ex- recreation classifications tends to rise consistently be- ceptions of the highways and general control classifi- yond the 471,000 level, while for fire protection the cations, larger cities also tend to have a higherratio increase sets in after the 290,000 figure but is broken, of employees per capita than smaller municipalities as with expenditures, for the verylargest city. There (see Table 35) . Again, there is no relationshipbe- is no discernible relationship, however, betweenpolice tween population size and either of the aggregate em- employment and population size, while general con- ployment categories among the larger Ohio cities. trol employment, with two exceptions, seems tobe a Highway employment reveals somewhat of a U- constant proportion, regardless of city size. shaped curve, reaching a low point at the 318,000 Among the larger Ohio cities then, there appears level (Toledo) ; beyond this point, diseconomies ap- to be evidence of diseconomiesof scale in the high- pear to emerge, though theprogression is broken for way, sanitation and sewerage,parks and recreation, the largest city (Cleveland). Public employment in and fire classifications. For these functions,both the 47 Table 35Ratio of Public Employment Per 100 Population for Selected Functions by City Size in Ohio

Population, Full-time For common Sanitation Parks General Cities 1960 equivalent municipal Highways Police Fire and and control employees 4: 1CnIns sewerage recreation

25,000 to 250,000 O. 84 0. 66 0. 07 O. 14 O. 13 O. 10 0. 03 0. 06 250,000 and over 1. 21 . 88 . 07 . 16 . 15 . 16 . 07 . 05 Dayton 262, 332 1. 05 . 96 . 08 . 17 . 16 . 17 . 10 . 05 Akron 290, 351 . 88 . 65 . 08 . 11 . 10 . 13 . 02 . 07 Toledo 318, 003 1. 06 . 81 . 04 . 19 . 16 . 13 . 06 . 02 Columbus 471, 316 . 87 . 78 . 06 . 15 . 16 . 13 . 06 . 05 Cincinnati 502, 550 1. 91 1. 04 . 11 . 20 . 18 . 16 . 07 . 05 Cleveland 876, 050 1. 49 1. 03 . 06 . 15 . 12 . 21 . 11 . 05

expenditure and employment data yield comparable same finding also emerges for employment data-that findings. While there is also some tendency for police is the larger cities tend to employ more people, with expenditures to increase with city size (beyond the the exceptions of highways and general control (see 471,000 level), thereis no corresponding finding Table 37). For the larger Texas cities, however, there when employment data are analyzed. This suggests is no pattern of increasing city size and employment therefore that the diseconomies which emerge for ratios for any of the categories analyzed. police expenditures result from price differences and As with the Ohio and Texas cities, larger New Jer- possibly additional capital input (in the form of sup- sey municipalities generally spent more per capita porting equipment) among the Ohio cities and not for total current expenditures as well as for each of from greater employment. the individual functions except highways, and parks A similar analysis of Texas municipalities also re- and recreation (see Table 38). Indeed, for total cur- veals that large cities-those with populations greater rent expenditures as well as for per capita spending than 250,000-spent more per capita for total cur- on police and fire protection, larger cities in New Jer- rent expenditures and for each of the individual func- sey spent considerably more than the average for tions, except highways and general control (see Table municipalities in the 25,000 to 250,000 class. Further, 36). Aside from a very slight progression in the latter there is evidence of diseconomies of scale for the total category, which sets in at the 588,000 population level current, police, and fire, as well as sanitation and (San Antonio), there was no consistent tendency for sewerage classifications. Aside from the latter, where per capita expenditures to vary with city size. The per capita spending rises rather sharply between the

Table 36 Per Capita Expenditures for Selected Functions by City Size in Texas

Cities Population, Total Highways Police Fire Sanitation Parks and General 1960 current and sewerage recreation control

25,000 to 250,000 46.36 5.43 7.41 6.33 6.74 3.23 2.00 250,000 and over 63.96 4.69 10.77 8.15 6.87 4.30 1.80 El Paso 276,687 114.78 4.46 9.22 7.69 5.19 2.89 2.36 Fort Worth 356,268 52.54 4.76 11.16 8.14 8.18 5.42 1.83 San Antonio 587,718 35.98 5.96 8.91 4.99 3.74 2.97 1.39 Dallas 679,684 63.95 4.72 13.35 11.65 9.89 6.43 1.69 Houston 938,219 52.53 3.55 11.20 8.26 7.36 3.77 1.72

Table 37-Ratio of Public Employment Per 100 Population for Selected Functions by City Sizein Texas

Population, Full-time For common Sanitation Parks General Cities 1960 equivalent municipal Highways Police Fire and and control employees functions sewerage recreation

25,000 to 250,000 O. 95 O. 74 0. 08 O. 13 O. 12 O. 13 0. 04 250,000 and over . 03 1. 21 . 83 . 08 . 16 . 13 . 15 . 05 . 03 El Paso 276, 687 1. 99 . 85 . 08 . 14 . 12 . 21 . 04 . 03 Forth Worth 356, 268 . 92 . 87 . 12 . 18 . 13 . 17 .06 . 03 San Antonio 587, 718 1. 17 . 64 . 07 . 13 . 09 . 09 .06 . 03 Dallas 679, 684 1. 10 1. 05 . 06 . 19 . 17 . 18 . 07 . 02 Houston 938, 219 . 88 . 72 . 06 . 16 . 12 . 09 . 04 . 03

Table 38Per Capita Expenditures for Selected Functions by City Size in New Jersey

Cities Population, Total Highways Police Fire Sanitation Parks and General 1960 current and sewerage recreation control

25,000 to 250,000 139. 93 6. 11 15. 87 13. 38 11.43 5. 46 3. 21 250,000 and over 201. 95 4. 18 27. 25 19. 43 11.85 5. 06 3. 56 Jersey City 276, 101 192. 39 4. 29 24. 47 18. 34 9.68 6. 21 4. 15 Newark 405, 220 211. 50 4. 06 30. 02 20. 52 14.02 3. 90 2. 96

48 276,000 and 405,000 levels, expenditures for each of tional classifications except highways andgeneral con- these functions rises consistently for the larger cities, trol (see Table 39).For the individual larger cities of which, however, thereare only two. Highway ex- beyond 250,000 population, there isa consistent rise penditures on the other hand,appear to decline with for full-time equivalent employees,for those engaged city size. This suggests that for this function,econo- in all common functions, and for thesanitation and mies of scale may be present. The other classifications, sewerage classifications, where the jump is quitepro- however, demonstrateno consistent relationship be- nouncedthus suggesting that diseconomies of scale tween per capita expenditures and city size when are present. Highway employment, however, continu- compared with the average spending of smaller cities ously declines indicating that for this function,scale and among themselves. economies may exist. For the remaining categories, Regarding public employment, larger cities in New compared with the smaller cityaverage and among Jersey employ more people, in relation to theirpopu- themselves, there isno apparent relationship between lations, than the smaller municipalities for all func- public employment ratios and population.

Table 39Ratio of Public Employment Per 100 Population for SelectedFunctions by City Size in New Jersey

Population, Full-time For common Sanitation Parks Cities 1960 General equivalent municipal Highways Police Fire and and control employees functions sewerage recreation

25,000 to 250,000 1. 82 0.90 0.06 0. 24 O. 19 0.10 0.07 0.05 250,000 and over 2. 78 1. 19 .05 . 38 . 27 .14 .11 .05 Jersey City 276, 101 2. 77 1. 14 .05 . 39 . 27 .06 .15 .05 Newark 405, 220 2. 79 1. 23 .04 . 36 . 26 .21 .06 .04

Thus among the larger New Jersey cities, disecono- ing for parks and recreation in NewJersey, where mies of scale appear toemerge, both in expenditure the association was inverse, therewas no statistically and employment data, for the aggregate functional significant relationship betweenany of the expendi- categories as well as in the sanitation andsewerage ture classifications and population density in either function. The police and fire protection categories, Texas or New Jersey.15 which reveal increasingper capita expenditures though not employmentas city size incieases, again Population growth effect. Of the three popula- point to the conclusion that such diseconomiesresult tion factors, the rate of growthwas most frequently from price and/or capital input factors, ratherthan found to bear a systematic relationshipto per capita manpower requirements. spending for public functions. Among the cities of Ohio, there was a statistically significant association Population density effect. The second population between the rate of population growth and factorthe number of peopleper square mile or popu- per capita expenditures for four functions: fire protection, sanita- lation densitywas systematically associatedamong Ohio municipalities (size 25,000to 250,000) with per tion and sewerage, parks and recreation,as well as capita spending for police protection andper capita general control. The direction of the relationshipwas employment in the general control function. Itwas also inverse in each case, indicating that therate of popula- closely related to per capita spending for generalcon- tion growth has a negative effecton per capita expendi- trol. For these cities, therewas a direct linkage between tures. Similar inverse and significant relationshipswere population density andper capita police expenditures, found between the rate of population growthand full- reflecting the added difficulties andgreater expense of time equivalent workers incommon functions as well as providing police protection for cities withgreater pop- employment in the police and fire categories. Forthe ulation concentrations. On the other hand,population cities of Texas, however, the only such systematic, and density appears to permit economies ofscale in per inverse, finding related to per capita expenditures for capita expenditures and employment forgeneral con- policc.. protection. Byway of contrast, the rate of popu- trol. This is indicated by the nearly significant,and lation growth was significantor very closely so for four inverse, relationship between densityand per capita expenditure and one employment classification in New spending and the significant inverselinkage between Jersey :highways, police,fire, and sanitation and density and employment. sewerage spending per capita as well as police em- For the other expenditure classificationswithin the ployment. With the exception of the highways cate- State of Ohio, therewas no discernible relationship gory, each of the relationships was inverse, suggesting beh% een per capita public expendituresand popula- that existing public facilities were either used more tion density. Moreover, aside fromper capita spend- intensively because of initial excess capacity or that

310-335 0-68----5 49 the budgetary process tends to lag behind actual it can affect spending decisions of both the household population growth. and business segments of the private sectors. Since urban economies are typically characterized by a high SUMMARY OF POPULATION FACTORS ON PER degree of specialization and division of labor, there CAPITA PUBLIC EXPENDITURES is an increased reliance upon market oriented produc- The findings for the States of. Ohio, Texas, and tion. As a result, many items of personal consumption New Jersey suggest that cities with populations rang- which rural populations provide for themselves are ing between 25,000 and 250,000 have some, but rela- more frequently purchased in the market place by tively few, instances of either economies or disecono- cityresidents. Moreover, urban residents may be mies of scale. Population size was significantly related forced to purchase certain goods and services simply to per capita spending only oncea direct association to combat the effects imposed by their greater popu- with fire expenditures in Texas. There were, however, lation size or densities. One dramatic example is the five cases in which population was significantly, and increased concern over the effects of air pollution, a directly, related with employment in the various func- phenomena that appears directly related to concentra- tional categories analyzed :parks and recreation em- tions of population and industry as well as air, auto, ployment both in Ohio and Texas as well as full-time bus and truck transportation; in short, air pollution employment in the common functions, police, and is predominantly a city problem. A study of air pol- fire protection among Texas cities. lution costs in the Washington, D.C., metropolitan Nor was the density of population usually a signifi- area, for example, indicated that on the average, a cant explanatory factor for the smaller cities. Only family would save as much as $335 a year if the three such cases were found. In Ohio, per capita city's air was as clean as in rural areas." police expenditures were directly related while gen- While the tendency toward greater market reliance eral control spending was negatively associated with adds to the costs of urban living, it is also true that population density; a similar inverse linkage was personal consumption expenditures may be stimulated found for parks and recreation spending in New Jer- in the latter areas by the "demonstration-effect." This sey. Tar more frequent was an association between reflects the fact that urban dwellers are in more fre- per capita expenditures and the rate of population quent contact with a greater variety of living stand- growth. This relationship emerged nine times among ards and many lack close personal or family relation- the three States and, with one exception, the linkage ships. Urban tastes for consumption goods and sensi- with per capita spending was negative. tivity to new products may be heightened by this de- Despite the results for the population size factor sire to "keep up." Lastly, prices for comparable goods among the smaller cities, it seemed possible that the and services frequently are higher in urban sections. effects of this variable would show up for the larger This stems either from the greater difficulties imposed municipalities. Since the statistical results would be by density itself, as in housing construction, or from strongly affected by lumping the large with the small the need to transport certain commodities such as cities in one analysis, the average expenditure and food to the cities. employment for small and large cities were considered Although differences between urban and rural con- separately. Such comparisons revealed that for most sumption patterns are likely to be most apparent, a functional categories, the larger municipalities spent great diversity also exists among urbancommunities. or employed more per capita. When compared with This is indicated by a recent report of the United the small city average and among the larger localities States Department of Labor showing that the esti- of a particular State, population size was more fre- mated cost of a moderate standard of living for a quently associated with per capita spending or em- family of four varies considerably among urban com- ployment than was true for the smaller areaspar- munities.17 For the total urban population, costs of ticularly in Ohio and New Jersey. There were, how- family consumption (food, housing, transportation, ever, only a few large cities for comparison and since clothing, personal and medical care, and other family it Ixas not possible to consider the other explanatory consumption expenditures) averaged $7,329 per year. factors,this must be deemed a tentative finding. In metropolitan areas, however, a comparable living Nonetheless, the evidence does seem to suggest that, standard required an additional $145, while in non- at least for certain functions in certain States, the metropolitan communities the cost for the same mod- larger cities do produce diseconomies of scale. erate living standard was $648 less. When certainad- ditional budget items were included (gifts and con- POPULATION SIZE AND THE PRIVATE tributions, occupational expenses, social security and SECTOR disability payments as well as personal taxes), average The process of urbanization is an integral part of costs rose to $9,191varying from $9,376 in metro- the economic growth that has transpired. By itself, politan to $8,366 in nonmetropolitan areas.

50 Aside from Lancaster, Pennsylvania, and the great- vironment give the suburbs a great advantage relativeto the er Philadelphia area, this finding also emerged fcr diffir.,lties the city experiences in trying to attractnew and the individual metropolitan communities, when com- expanding industries." pared to the nonmetropolitan sectors of the same geo- Recent data based on the value of building permits graphic region. This was true for both family con- issued (1960-1965), published ina Department of sumption items as well as the total budget. In addi- Labor study, provide additional corroborating evi- tion, when the several metropolitan areas were cor- dence of this increasing suburban orientation ofnew '# related with theit population size (as of 1965 18),a plant locations.2" I'or the nationas a whole and three statistically significant, and positive, relationshipwas of the four major geographic regions,new construc- found.' 9 tion of industrial plants, stores and other mercantile Two distinct tendencies, therefore, emerge. Not buildings, as wellas gasoline and service stations all only does a moderate standard of living costmore in favored the suburban communities. The majorex- metropolitan than nonmetropolitan centers but the ceptions to this trendare in the South, which may re- same modemc living standard appears to be pro- flect the greater degree of annexation andarea redefi- gressively more expensive in larger urbanareas. nitions that have taken place there, andnew office The process of urbanizationcan also affect the buildings which, for all geographic regions,continue business location decision. A recent study by the Com- to be located in the central city (see Table 40). mission indicates that themore populated areas suffer several disadvantages in the competition toex- Table 40Percent of New Business Building Outside Central pand their industrial employment base.2° For thena- Cities of SMSA's, by Region, 1960-1965

tion as a whole over the period 1958 to 1963,manu- Percent of valuation of permits authorized for new business structures facturing employment as wellas value added by Type of building manufacture increased more rapidly outsidethe United NorthNorth South West States east Central SMSA's than within suchareas. Aside from a relatively few exceptions, this trend also characterized Industrial 62 71 59 46 69 Stores and other mercantile buildings__ - 52 68 57 34 56 manufacturing activity for the individual States. By Office buildings_ 27 26 30 22 32 way of contrast, a comparable population breakdown, Gasolineaod-service stations 51 61 52 39 57 for the period 1950 to 1960, revealed the opposite Source: Dorothy K. Newman, "The Decentralization of jobs," "Monthly Labor picture, with population growingmore rapidly in the Review," Vol. 90, No. 5 (May, 1967), p. 8. SMSA's. Thus, the rate of population increase does not appear related to the differing growth rates in The same trends also characterize individual stlect- manufacturing activity. Factors that do ed metropolitan areas. Indeed, the only major differ- appear re- ence is that for six of 14 selected SMSA's, new office lated are "the greater availability and lowercost of sites, the greater ease of buildings Nvere also mainly located outside the central access provided by the inter- city (1960-1964). state highway system, and the relatively fewer social Thus, two trends characterize the recent record of andenvironmentalproblemsinlessurbanized areas."21 decentralization of industry: a movement favoring nontnetropolitan areas over their metropolitancoun- Turning to growth patterns within 18 selectedmet- ropolitan areas, the data reveal that except for the terparts and, within SMSA's, a greater growth in Minneapolis-St. Paul and New Orleans suburban compared to core counties or cities. Both areas, subur- developments seem to reflect, at least in part, certain ban communities were favored (1958-1963) both in factors where the more populated urban terms of growth in manufacturing employment and areas face a distinct competitive disadvantage vis-a-vis their neigh- value added. For the intrametropolitan comparisons, boring communities. however, population growth (1960-1964)favored suburban communities and thereforeappears to be SUMMARY OF FINDINGS part of the explanation for the greater increases in Although the period 1950-1966was one of further suburban manufacturing activity. The Commission's economic expansion, there was considerable diversi- overall conclusion was: ty in the rates of economic growth among both the In the economic developmentrace, the suburban or outer multi-State regions and the individual States. core areas are definitely outdistancing their inner core neigh- Within selected States, chosen to reflect this differ- bors. Burgeoning population outside most central citiesis matched by burgeoning employment and growing manufac- ing growth performance throughout the country, turing activity. Most industrial questionnaires indicate. that economic growth (1950-1966) as measured by the businessmen are seeking suitable sites at reasonablecost, a percentage as well as absolute increase in median commodity cities are least able to offer. Thegreater availability of land coupled with case ofaccess, provision for ade- family incomevaried among the several munici- quate parking, and a more wholesome social and physicalen- palities. These variations in municipal economic

51 growth were related most frequently to rates of For communities ranging in size from 25,000 to change in total population and the change in pro- 250,000 within selected States, there were relatively portion that was nonwhite. Variables designed to few instances in which either population size or its reflect industrial structurethe change in propor- density were important influences on per capita tion employed in manufacturing as well as whole- public expenditures and employment. It seems, sale-retail tradewere less successful explanatory therefore, that at least up to the 250,000 level, cities factors, though applicable in particular States. In- do not, in general, demonstrate any tendency to- deed, while each of these factors appeared related ward major economies or diseconomies of scale. to variations in municipal economic growthfor For the larger cities of these States, however, there particular States, they were not of uniform applica- was a greater tendency for populationsize to be bility for each selected State. associated with higher per capita public spending On the basis of the findings for the common fac- and employment. Since only a few large cities were tors, policies designed to facilitate population redis- examined and certain other factors were not contribution, by reducing barriers to migration or en- sidered this conclusion must be regarded as tenta- hancing the attractiveness of new or existing com- tive. munities, appear germane. Since the change in the Within the private sector, the process of urbaniza- nonwhite 'population proportion was negatively re- tion seems to lead to higher consumption expendi- lated to municipal economic growth, existing poli- tures.Indeed, a comparable standard of living costs more in metropolitan as opposed to nonmetro- cies designed to remove obstacles in various forms politan areas. Moreover, diseconomies of scale seem of employment might well be strengthened. to be evident since the costs of this living standard Location theory as well as surveys of business extend to rise with city size. ecutives reveal that several factors affecting plant Trends in industrial location also point to the con- location are amenable to governmental policy. Cer- clusion that cities in recent years have been less tain factors are, however, beyond the influence of able to compete for new business than their sur- government and even those within this sphere are rounding counterparts. At least part of the explana- not necessarily of equal importance for allindustrial tion for the greater success of nonmetropolitan and sectors. Nonetheless, governmental policy can affect suburban communities reflects their advantages in factors such as the need for adequate transportation, factors such as availability of land and ease of ac- housing and community facilities, industrial climate, cess to markets or supply sources, adequatepark- and tax levelall of which are generally influential ing facilities and generally a more favorable social in the location decision. and physical environment.

Footnotes

'Simon Kuznets, Modern Economic Growth: Rate, Struc- of Michigan: Ann Arbor) and John Thomas Kinbrough, ture, and Spread (New Haven : Yale University Press, 1966), The Role of Scientifically Oriented Firms in the Development p.1. As Kuznets points out, population growth may seem of New Communities in the Washington-Baltimore Area, Un- oddly placed in a definition of economic growth, particularly published Masters Thesis, George Washington University. in countries experiencing population explosions. Nonetheless, Location Decisions and Industry Mobility in Michigan, it is included because the economic growth of the past has 1961, op. cit., p. 11. typically taken place along with population growth. Advisory Commission on Intergovernmental Relations, H. S. Perloff, et al., Regions, Resources, and Economic State-Local Taxation and Industrial Location, Report A-30 Growth (Lincoln: University of Nebraska, 1960), pp. 3-4. (Washington, D.C.: April, 1967), p. 83. These and the following figures are cited in "Economic Robert P.Boblett,"Factors in Industrial Location," Impact of Defense Programs," Col. Vernon M. Buehler, Appraisal Journal (October, 1967). Statistical Reporter (July, 1967) , pp. 1-9. " The concept of economies of scale assumes a constant William R. Maki, "Growth Centers and Regional Devel- quality of service. As noted later, quality differences are not opment," Supplement C in The Role of Growth Centers in considered here. It is not possible therefore, to determine Regional Economic Development. Prepared for Office of Re- whether decreasing expediture or employment ratios do not gional Economic Development, U.S. Department of Com- also encompass some sacrifice in standards. " There are, of course, additional variables that might merce, Washington, D.C., p. C2. have been included. This was not done, however, since the 5 See, for example, Calvin M. Hoover, The Location of effort here is to determine the relationship of the population Economic Activity (McGraw-Hill: 1948 ) and H. S. Perloff, measures to the varying levels of per capita public expendi- et al., Regions, Resources, and Economic Growth (University tures and employment, rather than to provide a complete of Nebraska Press: 1960), Chapter 6. explanation Of the variations themselves. The three nonpopu- The studies are by Eva Mueller, Arnold Wilkin, and lation factors that were included should serve to account for Margaret Wood, Location Decisions and Industry Mobility in an important part of the interrelationships that may exist Michigan, 1961(Institute for Social Research, University between the two sets of factorspopulation and nonpopula-

52 tionvariables.Hence, additional nonpopul:ition variables population density on per capita public expendituresor em- would add relatively little to the purpose of this study. ployment. I' By tlds technique, it is possible to measure the effects of Washingt,n Post, December 14, 1967, Section B,p. 4. each of the particular explanatory factors after the other Department of Labor, Bureau of Labor Statistics, v t iables were taken into account. City Worker's Fanzily Budget fara Moderate Liz'ing tand- For cdi New jersey municipalities, capital oudays in 1962 ard, Bulletin No. 1570-1 (Washington, D.C.). Intercitycom- hd $67 million, of which at least $52 minimare- ex- parisons reflect not only price tlifIcrences but also climatic haled from the series studied; for Texas, no loss than $112 or regional factors that affect the quantities and types of items million out of a total $1.16 million in capital outlaysarc necessary to achieve the moderate standard of living. In addi- excluded while for Ohio; at least $135 million out of $183 tion, differences in State and local taxes affect the total budget million in total capital outlays are omitted. costs. " Brazer, in an earlier study, found this to be the case when 1' The population figures for Boston, Hartford, and Port- Boston was included in the analysis of Massachusetts cities. land (Maine) were as of 1960 since the 1965 estimateswere In his words, "scatter diagrams for population size and expend- not available. itures in Massachusetts reveal the rather spurious nature of The rank order correlation between population size and the results of the regression analysis, for eliminating the city total budget costs was +0.337; excluding Boston, Hartford, of Boston changes the picture radically." Brazer's ultimate and Portland, the correlation rises to +0.370. The rank order conclusion was one of uncertainty regarding the effects of correlation between population size and family budgetcosts population size on city expenditures. See Harvey E. Brazer, was +0.327; excluding Boston, Hartford, and Portland, the City Expenditures in the United States, Occasional Paper 66, correlation rises to +0.374. National Bureau of Economic Research Inc., 1959. 'State-Local Taxation and Industrial Location, op. cit., " Many of the smaller cities had population densities greater pp. 16-30. than the larger municipalities, without leadingto any system- '1 Ibid., p. 19. atic relationship with per capita expenditures. It seemedun- ' Ibid., pp. 19-22. likely, therefore, that an examination of the larger cities only 'Dorothy K. Newman, "The Decentralization of Jobs," would alter the above conclusions regarding the effect of Monthly Labor Review, Vol. 90, No. 5 (May, 1967).

53 Chapter III The Impact of Recent Urbanization Trends

THE FOREGOING CHAPTERS have clearly established are already near the flash point in many placesand that economic activity and population have concen- that have already broken into flames in Detroit, trated in the nation's urban areas, with the most re- Watts, Newark and a score of other areas. cent trend benefiting the suburbs and urban fringe This view has not gone unchallenged. Robert A. of metropolitan areasnot the central cities. Future Levine, Assistant Director of the Office of Economic projectionsassuming an extension of present trends Opportunity (0E0), "rejects the thesis being offered and of existing attitudes of government and industry by (Secretary) Freeman and many others that the toward urbanizationwill find the major share of poor rural migrant has provided the tinder for urban growth continuing to take place in such locations, riots." 2 An 0E0 economist whose work provided the with a continuing expansion of large metropolitan basis for Levine's position concluded generally from complexes. studies of rural-to-urban migration that: 3 The general thrust of these and related basic find- Such migration has continued in an unbroken ings indicates the need to probe the alleged adverse stream from the days of the American Revolution consequences of urban congestion. For some, such to the present. findings alone provide ample basis for proposing ma- Migration responds to the pull of employment op- jor shifts in private and governmental policieseven portunities in the cities rather than to the push of including a fundamental shift in our public philosophy deprivation in the rural areas. and the use of new governmental tools for interven- Migration selects those people best qualified to suc- tion and control. Caution, however, dictates that most ceed in urban life and hence rural Negro migrants of these earlier findings per se do not provide ample to urban areas tend (a) to be as well-educated as basis for advancing a range of far reaching policy nonmigrant urban Negroes, (b)to have higher recommendations, since they merely document the labor force participation than nonmigrant urban dimensions of metropolitan growth. At this point Negroes, and (c) to have unemployment rates no then, we must turn to the negative features that some higher than nonmigrant urban Negroes. discover in these findings and probe some six major Recent Negro migrants to a city never form a problem areas thatone way or anotherstem from large percentage of the entire Negro population of present population and economic trends. that city, and they do not tend to concentrate in GHETTO RIOTS AND IN-MIGRATION one section of the city. These conclusions, of course, parallel many of the One special feature of recent urbanization, as we findings in Chapter I relating to migration generally have seen, is the dramatic increase in the Negropopu- and Negro migration specifically. lation of central citiesespecially those in largemet- Certainly the problems of the ghetto leading to vio- ropolitan areas. The majority of Negroes todayare lence stem from much deeper causes than in-migra- city-dwellerslarge city-dwellers. Even in the South tion of more Negro poor from rural or other urban three out of five Negroes live in urbanareas. More- areas. Basically, they are the product of two and one- over, 1960 census figures show that one out of every half centuries of slavery and a century of second class two nonwhites in the six northern and western cities citizenship for Negroesexpressed through discrimi- with the largest Negro populationswere in-migrants nation in education, employment, housing and other chiefly from the South.1 Those who relate continued factors that inhibit normal family life and upward migration of the rural Negro poor to the problems of social mobility. Even after new legislation and court the ghettos assert that such migration aggravatesan decisions directed at removing governmental support already tense situation by building up pressures that for these barriers to equal treatment, it takes time for

54 improved education and generally equal treatment urban-rural balance, Secretary Freeman quoted biolo- to have their effects. Moreover, even an effective im- gist Rene Dubos to the effect that: 6 plementation of the "equal protection of the laws" Some of the most profound effects of the environment guarantee obviously does not assure any automatic created by urban and technicized civilizationmay not be on striking down of the shackles that still characterize physical health, but on behavioralpatterns and mental devel- much of the social and economic sectors of American opment. life. Despite a pronounced determinationto overcome Does urban crowding per se affect the humanper- age-old neglect and denigration through court actions sonality? Empirical evidence apparently is notcon- and intensified public programs,many residents of clusive. Nonetheless, there are indications that there Negro ghettos unfortunatelycan be expected to con- might be such a relationship. Two specialists inmen- tinue to labor under the handicaps of this heritage tal health offer these observations: 7 and to live well below or only on the margin of the The problems which accrue from high population densities economic and social standards enjoyed bymost mem- in our inner cities have been discussed ina large body of bers of our society. literature emanating mainly from the disciplines of sociology At the same time, it stillseems likely that the in- and social psychology. Tentative findings tend to associatea number of social ills with overcrowding ;delinquency and migration of poor Negroes, regardless of theirprepa- racial rioting being two examples. Some interesting findings ration for urban living and of the other factors cited from the field of human ecology haveas yet been unrelated to above, adds to congestion and therefore to thepoten- human affairs. There are studies which indicate that thereare tial explosiveness of ghetto conditions. This implica- self-limiting mechanisms which determine maximum herd size in certain animal species. When this size is surpassed, animals tion can be drawn from an observation attributedto mysteriously and to outward appearances, inexplicably die Paul Ylvisaker, Commissioner of New Jersey's Com- off, thus balancing the group at a certain number.... munity Affairs Department, who had first-handex- We do not believe that anyone today can claim that there perience in dealing with Newark and Plainfield riots is such a thing as an optimal size human group nor can we in the summer of 1967: 4 state with confidence that there is any particular space requirement for an individual. ...Where physical distancing Ylvisaker has an arithmetic of the city slumeven more omi- becomes impossible as in prisons, concentration camps, army nous than that of the Governor. Merely to hold the ghettos to barracks, slum apartments, etc., it would appear that people present scale, without any increase in their size, 500,000 make use of psychological distancing mechanisms. Enforced Negroes a year would have to move out into the whitecom- physical contact often leads to the maintenance of "emotional munity. But the rate of this outward movement today is at distance." If people cannot escape into their private rooms, most 50,000. This means a net increase in the ghettos of they will escape into their private thoughts. It is possible that roughly a half-million a year, compoundingevery problem by such emotional distancing in crowded cityareas may con- a far greater ratio than the mere increase of those within the tribute to indifference to the suffering of others and unwill- walls. Ylvisaker sees something very like civilwar between ingness to "get involved" with neighbors or people who may armed whites and armed blacks in the not-too-distant future be attacked on the street by hoodlums. unless a more dramatic program wins public attention and support. Sociologist Louis Wirth found that living in densely settled urban areas affects the individual's relationship In any case, much more must be done bygovern- to the community: 8 ment, private groups, and individuals than providing . .the individual gains, on the one hand, a certain more alternatives to the poor Negroes crowding with- degree of emancipation or freedom from the personal and in ghetto walls,if the underlying causes of ghetto emotional controls of intimate groups, he loses on the other frustration are to be attacked. This Commission hand, the spontaneous self-expression, the morale, and the has sense of participation that comes with living in an integrated proposed a number of actions to this end, essentially society. aimed at upgrading the fiscal and service capacities The significance of participation in local demo- of central cities and at placingon State governments cratic-politicalprocesses,andthedifficultiesof and suburban areas a major fiscal and moral responsi- achieving it in the "inner city"are pointed out by bility for the metropolitanareas as a whole and es- two contemporary observers: 9 pecially their urban core.5 Very few services provided by cities for their residents are placed or administered in the neighborhood, limiting inter- SOCIAL AND PSYCHOLOGICAL EFFECTS play between citizens and their acceptance. Participation is OF URBANIZATION also vital as the channel for maintaining stability and producing democratic change. It is the most important aspect of The question of the social and psychic effectsof civic education in a democracy, basing learning on experience. urbanization comprises another basic problem When that experience is frustrating, unproductive and peri- area pheral to decisions, as is not so often the case in our American stemming from higher densitypatterns. Sociologists cities, what the citizen learns is that participation is not an and psychologists are giving increasing attentionto efficacious expenditure of time, or that his views "do not mat- the possibility that crowding in metropolitanareas is ter." Consequently, tendencies toward civic apathy and political alienation are enhanced by the existing processes of taking a toll in human values. Ina recent speech on citizen participation.

55 Economist Oliver C. Winston questions the effect In fact, a great social attraction of the large city is the of metropolitan living on the whole range of quali- privacy it offers...the individual can freely select the persons with whom he desires contact and is allowed to ignore tative values: 10 the rest.... All of his (population concentration in huge urban centers) The Regional Plan Association places particular has raised some very serious questions not only about the impact upon the physical needs to be met but about the kind of stress on the diversity and broad range of opportu- society it implies. Is the multimillion population urban agglo- nities in the large city as offsets to its social and eco- meration likely to offer the kind of physical, social, and nomic costs: 14 aesthetic environment which will stimulate a rise in the cultural level of the individual and awaken his latent talents for The larger the urban groupings the more abundant oppor- participation in social, political and intellectual activities? tunities it potentially can offer: for individualsopportuni- Will such agglomerations achieve societies of high quality and ties in choosing life styles, means of earning a living, oppor- enduring vigor? Does this kind of development offer enough tunities in education, the arts and amusements; for organiza- variety and choice for people of the next two generations? tionsopportunities in access to other organizations and individuals, which ultimately spells access to information, hence Winston contends that people who prefer com- to influence and power. Of course, the potential of oppor- munities of 50,000 to 500,000 population are those tunity and choice can remain unrealized because of poor in- who "seek more intimate association and participa- ternal arrangements. And, clearly, not all people and organizations want or need frequent access to all conceivable tion in cultural, political and economic life and who choices. Those who do not may locate in smaller cities. But to feel the need for close association with symbols of impose an arbitrary limit on the concentration of opportuni- stabilityheritages of the past." " The giant super ties is to restrict the potential range of choice for individuals cities, in his view, are inimical to these values. A and for society itself. planner, Ian L. McHarg, generally shares this pessi- Considering the intangible nature of the adverse mism about the total effect of the modern city: 12 social and psychological effects of urban concentration along with the relative lack of "hard research Indeed, one can certainly say that the city is at least an ecological regression, although as a human institution it may data," it is difficult to draw any firm conclusions at represent a triumph. Whatever triumph there are to be seen this point. A somewhat better perspective, however, in the modern city as an institution, it is only with great diffi- is afforded when the economic as well as the noneco- culty that one can see any vestige of triumph in the modern nomic factors are considered. city as a physical environment. One might ask of the modern city that it be humane; that is, capable of supporting human organisms. This might well be a minimum requirement. In DISECONOMIES OF SCALE order for this term to be fully appropriatethat is, that the city be compossionate and elevatingit should not only be The previouschapter'sanalysis indicatedthat able to support physiological man, but also should give mean- higher relative costs are likely to emerge in large ing and expression to man as an individual and as a member urban aggregationsboth for governmental activities of an urban society. I contend that far from meeting the and private industry. The examination of public eA- full requirements of this criterion, the modern city inhibits life, that it inhibits man as an organism, man as a social being, penditures and employment for communities of 25,000 man as a spiritual being, and that it does not even offer to 250,000 in three representative States indicated adequate minimum conditions for physiological man; that in- that at least up to the 250,000 level, cities do not, in deed the modern city offers the least humane physical environ- general, demonstrate any tendency toward either ma- ment known to history. jor economies or diseconomies of scale. For the larger The Regional Plan Association, on the other hand, cities (over 250,000) in these States, however, there advances a more balanced view of the alleged imper- was some tendency for population size to be associated sonality and anonymity associated with urban liv- with higher per capita public spending and employ- ing: 13 ment for certain, though not all, expenditive functions. Thus these cities, as a group, did usually spend ...That today's larger city is in many ways more impersonal than its smaller predecessors is undoubtedly true. more public funds or employ more personnel per cap- That this is not all bad is also true. Critics have approached ita for public services and, in some cases, considerably the problem in different ways. Some sociologists have simply more than those below 250,000. Within the private reported with relative dispassion the change from the strong social controls of the rural village to the smaller shallower sector, however, the indicators suggested that the pro- social structure of the city. A second group, condemning the cess of urbanization seems to lead to higher consump- shift, has also condemned the city; anti-city was for a long tion expenditures. time the dominant theme of the literature of urbanism. Economist Werner Hirsch points ou+ the factors Finally, there are those who feel that the enlargement of choice need not erase community values. Among theseis that tend to interfere with achievement of continuing Lawrence Haworth: "What specialization contributes to the economies of scale as cities grow larger: the required good lifeis opportunity....What specialization removes geographic proximity to service recipients in such is community....The problem is that of restoring com- areas as education and fire makes it difficult to econo- munity to the city in a way that the distinctive contribution of city life, the wealth of opportunity it offers, is not mize by any consolidation of plant and services; inten- lost...." sifieduse of labor increases employee bargaining

56 power, giving an upward thrust to wage costs; and is not yet available according toone scholar, Werner topheavy administration and increasedpatronage con- Hirsch: 20 siderations seem to accompany larger municipal gov- To the best of my knowledge, there isno study that ernments.15 definitely indicates that the social costs of huge urbancom- Air pollution is one of the clearest examples of the plexes outweigh the benefits accruing to society. increasing cost of living and of conducting economic To complicate matters further, the Regional Plan activity in congested areas: 16 .1ssociation suggests that size per semay not be as Air pollution is a sickness of cities. The amount of airon important as other factors in determining the attrac- earth is very large, a million and a half tons, for every human tiveness of city living.2' being, and its total capacity for containing pollutants is great, but cities occupy only a small areain the United States Many of the negative aspects of large city livingare not about 2 percent of the landand the weight of air available inevitably linked to size, but are, rather, socially, institutionally to them at any instant is correspondingly small. At the same and politically determined. Their drawbacks can be alleviated time most sources of pollution are concentrated in the cities. or eliminated through the political process by a more equitable A single electric generating plant using fossil fuels distribution of public investment, through pricing policies may emit that make individuals more responsive to the consequences of several hundred tons of sulphur dioxide per day. The weight of particles suspended in city air is commonly ten times higher their actions, through technological advance and through than in rural areas. imaginative and rational planning and design. All this suggests that we need The experts indicate that even with existing popula- more adequate social data and techniques of measuring social costs and tion densities and existing use rates of fossil fuels, benefits. In this connection, it is worth noting that cities "are coming uncomfortably close to usingup Senator Walter Mondale has introduced a bill (S. all their available air." 17 Despite the prospect of in- 843-90th Congress) for creation of a Council of creased use of nuclear-powered electric generating ca- Social Advisers which would be concerned with pro- pacity, the capacity of fossil fuel generating plants is moting more efficient allocation of national resources expected to double by 1980 and double again by in meeting domestic social problems just as the Coun- 2000. Yet the cost of introducing new pollutioncon- cil of Economic Advisers is concerned with economic trol devices in these plants is pegged at almost $2 bil- resource allocation. It would provide "hard data and lion by 1980 with an annual operating cost of about analysis" needed to understand social problems and $750 million." assess the social consequences of public policies and In considering economies of scale, the Regional programs. In introducing the proposed legislation Plan Association cautions that the nature of ths urban Senator Mondale declared: 22 unit is crucial, because it makes a difference whether The fact is that neither the President nor the Congress nor itis a relatively free-standing municipality,or one the public has the kind of broad-scale information and analysis needed to adequately assess our progress toward achievement urban center in a cluster of such centers." of our national social aspirations. To answer the question, "when is an urban region too big," one must first determine what an urban region is. (1 )Is it the BUSINESS LOCATION DECISIONS AND JOBS influence area of the dominant center? That may be hard to distinguish in a closely-knit, overlapping hierarchy of centers. As the earlier analysis suggested, high density areas (2) Or the continuously built-up area, the most tangible have experienced difficulty in recent years competing definition of a city? That, as has been pointed out, may be for a broader industrial employment base. Generally, concealing a rather heterogeneous structure of relatively independent units, and the size of the whole may be quite ir- non-SMSA areas have enjoyed more rapid growth in relevant to the functioning of its parts. (3) Or a more widely manufacturing employment and in value added by defined planning region, a cluster of related or overlapping manufacture than SMSA's. F Irther, within metro- zones of influence of urban centers? Here, even more than in politan areas, suburban and fringe manufacturing the second case, total size may say nothing at all about efficiency of internal arrangements.... growth has outstripped that of the cities. A similar Changes in size inevitably require changes in internal struc- trend probably prevails in the growing service sector ture, and the relevant question is not how big an urban of our economy which, given its people-related char- region should become, but rather, given an anticipated size, acter, tends to follow population movements. The what is the best internal arrangement? Then the question of greater availability of land and parking facilities, ease "economies" of size can be meaningfully investigated withre- of access, and the attractive physical and social setting gard to specific urban functions and centers of activity and their most efficient location. of the less congested areas have been identified as the basic factors prompting this urban fringe and non- Taking social and psychic, as well as economic fac- SMSA business locational trend. tors into account, the question still arises: at what Also underlying this increasing decentralization of point in size and density ofan urban community do industry has been the process of technological ad- the various minuses exceed the pluses? This basic vanceparticularly in the transportation and com- question may be answerable, but a completeanswer munication industries. These developments, which

57 tie the country more closely together, reduce the geo- With new kinds of goods and services being pro- graphic constraint inherent in the plant location deci- duced in new growth industries and with the im- sion. In location terminology, this means that market provement in transport facilities, traditional plant considerations, as opposed to supply factors, are in- location criteriaproximity to supplies and mar- creasingly important; as such, population growth be- ketsare becoming less important and the availa- comes an even more critical influence inthe business bility of urban amenitiesgood water and sewer location decision. systems, schoolsmore important (some would say Projections on location of future jobs and people, the old criteria are still important and that they by Jonathan Lindley, Deputy Assistant Administrator now dictate a suburban or fringe locationdecision). for Policy Coordination of the Economic Develop- Land costs have driven the new, mechanized indus- ment Administration, show that central citieswill tries to the suburbs and elsewhere, but these are the have a job shortage (underemployment) while their very industries offering the greatest potential source suburbs and outer ring counties will have a job sur- of jobs for semiskilled migrants settling in urban plus (full employment) 23 Additionally, this analysis complexes. concludes that job growth in both settled and densely The new interstate highway system has made it congested counties will be at a much lower rate than easier to serve a large urban area from the rim of thenationalaverage.Moderatelysizedcounties a circumferential highway in suburbia than from (50,000 to 500,000) on the other hand, are slated for the congested hub of a metropolitan area. above-average growth. Substantial diseconomies of scale in public services As a basis for determining what might be done to in large cities encourage industry to relocate in correct this anticipated mismatch of jobs and people, suburban areas. Lindley analyzes the factors affecting population and The new or expanding industries in the city tend job location, and finds that: to provide white collar jobs with relatively high en- Rural job seekers go to the big cities because they trance requirements. Major opportunities for un- feel the number of job opportunities is greater skilled migrants in central cities are mainly in low there, but better job information in rural areas paid, temporary service type jobs, offering little might induce more people to seek jobs away from chance for upward mobility and the best blue col- the central cities. lar job opportunities are moving to suburban and Small towns and villages are losing their economic smaller urban areas. function as local agricultural or other market distri- The economics of suburbia discourage migration of bution centers, due to advanced farm technology rural unskilled and semiskilled to the suburbs be- and improved transportation systems. cause of the net cost of providing public plant and equipment (schools, water, roads) for such lower Historically, rural areas have treated the poor and income new residents and because of the low den- minority groups with less compassion than cities. But when these groups now move to cities to better sity pattern for residential purposes caused by large lot zoning and other practices sometimes used to their lot, they find the urban industries that for- keep out low-income groups. merly offer jobs to the unskilled are located largely The minimum size "independent" community (i.e., in the suburbs, rather than in central cities. located well outside a metropolitan area) that can Large urban areas have the welfare and public provide employment opportunities is growing, due relief services necessary for temporary support of to technological and economic factors. Twenty-five migrants in a strange social climate. thousand to 50,000 appears to be the minimum via- Lindley concludes: 24 ble population. Smaller towns away from metropolitan areas thus will have difficulty in surviving ... someeconomists have argued that the increased rate of urbanization that apparently has taken place recently has as employment centers except for certainlimited not been in response to attractive economic advantages in the purposes. large cities. Rather, this increased urbanization is the result of the very severe economic and social pressures in the rural In short, the dynamics of urban, economic and areas. In other words, it has been the push of poor rural con- social change tend to channel the in-migrants to the ditions rather than the pull of urban economic opportunities. core city even though their potentialemployment op- This view conflicts with the 0E0 staff interpretation portunities may rest elsewhere. Lindley believes that presented earlier and with the findings of the Mich- this mismatching dilemma makes mandatory the de- igan Survey Research Center discussed in Chapter I. velopment of a national urban-economic development But there is less disagreement over the critical changes policya policy that addresses itself to the question that Lindley cites as occurring in the big and small of how and where future population canbe assimi- urban economic environment. lated in the most efficient manner. Freemarket en-

58 thusiasts tend to agree with Lindley's diagnosis, bat areas are disproportionately high for what are fre- not with his policy prescription. quently inadequate levels of service. Furthermore, the small local government.;are frequently ill-equipped RURAL AMERICA: WHAT KIND OF to undertake the planning and development activities REMAINDER? necessary to overcome their handicaps. New areawide The intensity of the social, economic, and political structures and reorganized local governmentsare slow problems in our large urban areas and the seemingly to emerge, reflecting a lag in the adjustment oftra- ditional social and political institutions.25 geometric rate at which they becomemore acute have so monopolized the attention and energies of Particularly tragic is the fact that in thetypes of our nation that we have been diverted from and even poductive activity from which assistancecould come other disparities exist. Employment allowed ourselves to become inured to the problems in agriculture, for-. left behind in the small towns and rural counties. The ests, mines and fisheries is declining faster thanthe level of poverty, lack of services, scarcity of jobs, ina- opening up ofnew jobs in manufacturing and service dequate cultural and educational opportunities, and industries within ruralareas. The unemployment rate lack of hope for many of the people left behind in thus is much higher than the nationalaverage, but the cutover, strip mined, automated farming, and available public employment servicesare not adapted mechanized mining areas ofour country constitute to providing the counseling, training, and placement the frequently neglected other side of the coin. As assistance which isnecessary for the rural unemployed previous analysis noted, the numbers of people who or underemployed to find jobs suited to theircapac- ities. Furthermore, the supply of find themselves isolated in this condition constitutea capital in rural areas disproportionate sector of the rural population but as measured by commercial bank deposits and local they are not numericallyas great as their counterparts government debt is lower than inmore urbanized in the urban slums and ghettos. Moreover,while areas thus severly limiting opportunities for attracting many have left and continue to leave, there are some industry. signs that this out-migration is tapering offandthis The impact of these disparities inrural areas is two despite the fact thatover 13 million rural people fall edged. Those who leave and migrateto the already below the poverty level. Put anotherway, the "pull" overcrowded metropolitan concentrations,although of greater urban opportunities and the "push"of poor generally the more ambitious and betterequipped, rural condition's may have combinedor operated still have difficulty adjustingto urban living and job separately to produce a rural out-migration.But, at requirements and frequently intensify existingurban present, neither motive seems to bevery influential Fob lems. The continuing exodus ofpopulation and among the destitute in these areas. economic activity makeseven harder the lot of those :thhough the areas where these conditions prevail who are left behind and rendersmore difficult the exist throughout the country, theyare concentrated task of making adjustments in governmentaland so- in certain places. If poverty is takenas an indicator cial institutions and providing economicand educa- for the existence of the other conditions, much of the tional opportunities. rural South can be identifiedas an area of concentra- Most of the developments giving riseto the dis- tion particularly Appalachia, the Coastal Plain, the parities in rural Americaare directly or indirectly the Ozarks, the Black Belt of the old South and Mexican- byproducts of urban and economic growth. Yetwill American concentrations alongour southwestern bor- these same forces ultimately reduce and eliminatethe der. New England and the Upper Great Lakesareas rural gaps? Some believeso; others are skeptical; also contain concentrations of ruralpoor as do the while still others deny the possibility. Inany event, Indian Reservations in the Southwest and theupper to date neither the market place nor governmental Great Plains. programs have done much to correct this situation. We have already noted the disparities between rural and urban areas with referenceto educational THE BURDENS OF SPRAWL and medical facilities and services, housing, living Much of today's urban expansion takes place in standards, and personal income. Rural disadvantages scattered, needlessly sepatated developmentsapro- and lack of opportunity can be identified in still other cess that some see as an expensive struggle between ways. Rural governmental institutions are frequently Americans and their landscape. The problems of unable to provide the type of public services needed. sprawl, briefly discussed in Chapter I, are basically They xvere origMally (ksigned to deal with lessacute those of scattered, unrelated urban growth. problems in an age of greater self-sufficiency. They Yet caution must be used in applying to specific can adjust only with difficulty to declining population. situations\ v rdslike sprawl- --which have gained meal government expendituresper person in such pejorative connotations. Sprawl must be viewed as

59 the total flow of urban development, not solely a opment can be avoided by careful planning of shop- given spreadout pattern. The undesirable features of ping centers. The history, problems, and prospects of sprad result from a combination of the timing, se- large-scale urban and new community development quence, and specific type of development. Sprawl is will be explained at lcngth in the succeeding two also the product of many other factors including pub- chapters. lic indifference and actions as well as inaction of the Meanwhile perhaps the best way to crystallize our various levels of government. Ineffective or nonexist- thinking about sprawl is to focus on the question : ent land-use regulation by local governments, State Should the 115 million Americans that will be added non-involvement in urban and regional development to our population between now and the end of the problems, and certain Federal programs (FHA mort- century be thrust into the same kind of largely uncon- gage insurance and the federally assisted highway trolled urban environment as that in which most of program, for example)have all encouragedthis us live? Critics of sprawl and advocates of new large- wasteful pattern of urban scatteration. scale urban developments respond with a vigorous A major distinguishing feature of sprawl isthe dissent and urge a vigorous intergovernmental pro- leapfrogging, discontinuous nature of much current gram of positive action. Others also reply in the neg- suburban growth. Areas are bypassed for a variety of ative, but place greater reliance on the free market, reasons including unavailability of large enough plots changes in public attitudes, and innovative public-pri- with clear title, spiralling land costs, and inaccessibil- vate ventures as the instigators of change. ity to transportation. This type of development is not necessarily bad. Moreover, it can be argued that sub- SUMMARY OBSERVATIONS urban residents are willing to pay the cost of sprawl At the outset of this portion of the report, the for the type of low density, dispersed housing that re- question was posed: What are the adverse consequen- sults and that is why it takes place. ces, if any, of continuing the present trend of urbani- Nevertheless, a number of identifiable disadvan- zation? An answer to this question is necessary in tages result from sprawl. The provision of public fa- order to decide whether a major shift is warranted cilities can be more costly. Roads, utility trunk lines, in public-private policies affecting population move- and other facilities have to be extended over longer distances and in patterns which are not necessarily ment and economic development, possibly involving use of new governmental tools of intervention and the most economical. Unnecessary branches and stubs control. of main trunk lines for sewer and water, for example, may have to be provided. Furthermore, in building The preceding analysis indicates that : the main trunk lines for a sprawling pattern of devel- In-migration to ghettos is not a primary cause of opment, it is harder to anticipate ultimate demand. riots or other civil disturbances, but it does contrib- This may result in the construction of too small lines ute to the heavy congestion characteristic of these which must be replaced or supplemented or too large areas. lines representing an unnecessary investment. A too Sociologists and psychologists ceem to find social widely dispersed pattern of development increases the and psychological damage from urban crowding, cost of commuting to work in fares, time, and high- but there is no estimate of the scale of damage at way facilities. This is a particular burden for low- different levels of population or crowding. income workers when inflated land values preempt No reliable estimates are available on the balance for higher cost housing what might be the most ad- of social costs and benefits at various levels of ur- vantageous locations for commuting by mass transpor- banization. tation. Similarly, accessibility to schools and shopping There is a tendency, at least in certain States for is hampered. It is more difficult to assess the esthetic certain functions, for cities over 250,000 population impact of sprawlthis may be largely a reflection of to spend more per capita; within the private sector, personal taste. Certainly strip commercial develop:. the process of urbanization generally leads to higher ments with their billboards, neon signs, and used car consumption expenditures. lots and the neglected, by-passed tracts of land create Plant site location decisions are no longer strongly some of the most unattractive characteristics of the controlled by proximity to markets and supply "slurbs." sources;technological and communications ad- On the other hand many argue that planned, large- vances have opened up more flexible alternatives. scale development relating to the surrounding coun- In the years ahead, smaller communities (below tryside, to open spaces, and to transportation corridors 50,000 in population) and the large urban areas can avoid many of the problems usually identified (over 500,000) for a variety of reasons, including with sprawl. Bypassed areas can be held as open space the trek of business to the suburbs and the urban until they are developed and strip commercial devel- fringewill have difficulty in providing enough

60 jobs to meet the needs of their residents, let alone ment through large-scale, planned developmentsde- those of any in-migrants. signed to providea range of living, working, and The remaining rural population generally and its recreational opportunities witha meaningful rela- large component of poor specifically have reaped tionship toone another and to the surroundingcoun- few of the rewards of urbanization and suffered tryside. many adverse consequences: economic activity has The next two chapters of thisreport describe and declined; many of the most talented have left; and analyze the experience withone of the most highly for many there has been steady erosion of the de- integrated techniques for doing thisthebuilding of sire to move as well as desire to improve conditions new communities from the groundup. The opportu- at home. nities they present formore fully realizing the bene- Although the costs of sprawl as a pattern of urban fits of urban life foreveryone are examined. A num- development cannot be quantified they cannot be ber of problems encountered in realizingtheir poten- ignored nor can the serious qualitative questions tial and a number of alternativepatterns of large-scale raised by critics. development alsoare described. The final chapter These conclusions clearly raise questions regarding brings together several approachesto meeting the the appropriate role of government in influencing and challenge of u:ban growth andpresents the Commis- guiding future urban growth in the United States. In sion's recommendations. The need foran urbanization the nature of things the role of government cannot be policy with Federal, regional, State,and local compo- neutral since failure to act in itself hasan impact. nents is presented along with suggestions forsome Furthermore, virtually all governmental action affects elements of such a policy, includingmeasures for in- urbanization directly or indirectly, intentionallyor fluencing industrial location and populationmove- unintentionally. The complexities of the interrelation- ment, for encouraging and guidingnew community ship between the public and privatesectors in setting and other large-scale development, and for equipping urban patterns are brought into sharper focus by ef- State and local government to deal with urban forts to rationalize and improveour urban environ- growth.

Footnotes

The Negroes in the U.S., U.S. Department of Labor, " Oliver C. Winston, "An Urbanization Pattern for the Bureau of Labor Statistics, Bulletin No. 1511, June, 1966, United States: Some Considerations for the Decentralization p. 15. of Excellence," reprinted in Congressional Record, October Congressional Record, October 11, 1967,p. A 5030. 10, 1967, p. S 14506-7. Richard Wertheimer, Office of Economic Opportunity, " Ibid., p. S 14507. memorandum on "Rural-To-Urban Migration: Implications 42 Ian L. McHarg, "Man and Environment," in Urban for Government Policy," September 15, 1967,pp. 1-2. America: Goals and Problems, op. cit., p. 49. 'Marquis Childs, "New Jersey's Riots and New Problems," " Regional Plan Association, The Region's Growth, A The Washington Post, August 9, 1967. Report of the Second Regional Plan (New York, 1967), 'See ACIR, Metropolitan Social and EconomicDisparities: p. 20. Implications for Intergovernmental Relations inCentral Cities " Ibid., p. 19. and Suburbs, (January 1965) Fiscal Balance in the American Werner Hirsch, "Community Size :Forces, Implications Federal System, (October, 1967). and Solutions," in Urban America: Goals and Problems, op. " Statement of Secretary of Agriculture Orville L. Freeman cit., p. 47. at a Symposium on "A Nation's Policy for Its Future," 1" Roger Revelle, "Pollution and Cities," in Chamber of American Institute of Planners Fiftieth-YearConference, Commerce of the United States, The Metropolitan Enigma; Shoreham Hotel, Washington, D.C., October 6, 1967,p. 5. ed. James Q. Wilson (Washington, 1967 ), p. 85-86. ' Leo Levy and Harold M. Visotsky,"The Quality of " Ibid., p. 87. Urban Life: An Analysis from the Perspective ofMental 1" Ibid. Health," in U.S. Congress, Joint Economic Committee,Sub- 1" Regional Plan Association, op. cit., pp. 21-22. committee on Urban Affairs, Urban America: Goals and ' Urban America: Goals and Problems, op. cit., p. 114. See Problems, 90th Congress, 1st Session, August,1967, pp. 101- also Percival Goodman, "The Concept of Community and the 105. For a bibliographyon sociological and psychological Size for a City," ibid., p. 62. studies of the effects of high population densities, inibid., see Regional Plan Association, op. cit., p. 22. pp. 108-112. Also see Edward T. Hall, "The Hidden Dimen- " Congrecsional Record, February 6, 1967, p. S. 1534. sion," ibid., p. 10. 2" Paper presented on Eighth Annual Conference Center Louis Wirth, "Urbanismas a Way of Life," reprinted for Economic Projections, National Planning Association, in Paul Hatt and Albert Reiss, Eds., Cities April 28, 1967, reprinted in Congressional Record, May 19, and Society 1967, pp. S. 7164-7167. (Glencoe, Illinois: The Free Press, 1937). " Ibid., p. S 7165. Harvey S. Perloff and Royce Hanson, "TheInner City " The President's National Advisory Commission on Rural and a New Urban Politics," in UrbanAmerica: Goals and Poverty The People Left Behind (Washington, D.C.: The Problems, Op. cit.. p. 163. Superintendent of Documents, September 1967), p. 104.

61 f

Chapter IV New Communities in America andTheir Objectives

WHAT HAS BEEN CALLED the "uban-development Existing obsolete houses, apartments, factories, and critique" 1 has led to the discouraging conclusion that office buildings must be rehabilitated or replaced, and in the growth of urban America pressures of necessity a major building effort willbe required to provide and expediency have ruled, producing a series of un- adequate new construction for the expanding popula- inspired cities and towns put together in response to tion. Conventional means will fill much of this de- immediate needs with all too little attention to ulti- mand. Vacant spaces in existing metropolitan areas mate goals and a satisfying human environment. will be filled. Some older cities will grow by gradual We are given a picture of uninspired gridiron annexation, and new incorporations will take place. streets rigidly superimposed on the countryside with Increasing attention to the formulation of new a minimum of adaptation and flexibility to accom- land-use control and development techniques, im- modate natural contours or human needs. proved zoning and assessment procedures, areawide 1 More recently, we get the picture of endless tract cooperation and planning, modernization of building houses and ribbon commercial and retail establish- codes, and support of building construction research ments encroaching upon the fields and meadows in reflects a determination to seek the adjustments neces- a random patternleveling trees, hills and any- sary to meet the new demands. Thisdevelopment, thing that stands in the way of the bulldozer. however, will take place within the existing metro- This is the stereotype of broad, spreading "slurbs" politan framework of densely populated central cities flowing across the landscape around our cities. with their growing proportion of low-income families, of a ring of middle- and upper-income suburbs sur- While this view is overdrawn, there unfortunately rounding the cities, and of an increasing proportion is enough truth in it to cause ample concern. How- of new industrial construction in outlying areas and ever, itis well to remember that throughout all of movement of existing industry out of the centralcity. our history, drawing on our European heritage as The building of entirely new communities can pro- adapted and accommodated to. a new frontier, there vide an alternative to this pattern in two ways. A have been a series of notable efforts to produce a more "satellite new community" on the edge of a metro- desirable urban environment. In particular, one reac- politan area can provide a balanced, well-planned tion to the problems of urban sprawl has been the municipality, including a range of life styles and hous- attempt to achieve planned, orderly urbanization pat- ing types, and it can provide or be readily accessible terns through the development of "new towns" and to employment opportunities. On the other hand, an "new communities." "independent new community" can bring urbaniza- What are some of the opportunities that the build- tion entirely outside the orbit of existing metropoli- ing of new communities holds for the Nation? Some tan concentrations. Such communities can be self- of the potential can be realized by any well-planned, carefully superivsed large-scale urban development contained or located near job opportunities as part of responsive to market needs and preferences and to an areawide economic and developmentand urban- broader social goals and objectives. Yet, the planning ization policy. In either context, they can furnish and development of a total community provides a alternative destinations for persons displaced from greater opportunity to realize the potential of large- farming, mining, lumbering, and other resource-ori- scale urban development. ented occupations which no longer require the man- Our soaring population and its increasing urbaniza- power formerly needed. They canalso provide alter- tion create major problems and unusual opportunities. natives to others seeking new locations becauseof un-

62 employment, job dislocations, urban renewal, and Without attempting a legal or in any sense "official" personal preferences. definition, it is possible to identify a number of dis- New communities can be an important element of tinguishing features which constitutea synthesized a national urbanization policy geared to developing description of "new towns" in the Britishsense. Such new urban growth patterns outside of the existing a description reflects both the early Garden City major urban complexes. With increasing speed and concept of Ebenezer Howard and subsequent develop- ease of communication and travel, changing patterns ments in England under the New Towns Act of 1946. of transportation, and altering relationships between In these terms a New Tovn is an independent, raw materials, finished product, and market, many of relatively self-contained, plann,:: community ofa size the earlier determinants of urban settlement are no large enough to support a range of housing types and longer relevant.Technological and industrial ad- to provide economic opportunity within its borders vances have served to expand the opportunities for for the employment of its residents. It is large enough the location of urbanization and to open up addition- to support a balanced range of public facilities and al choices. The building of new communities can help social and cultural opportunities. It is surrounded by to capitalize on thcse opportunities. a green belt of open space which serves to relate it This section of the report will deal with an analysis directly to the surrounding countryside andto limit of the principal trends in the development ofnew its size within a predeterminedrange regarding both communities. Specifically, the following will be con- population and area. Within reasonable limits the sidered: (1) the European experience with new towns proportions of the totalarea to be used for industrial, and new communities; (2) case studies illustrating commercial, residential, public facilities, andopen major stages in the ,sonerican experience; (3) the space are specified during the planning process. The implications of the European and American experi- desired density of population overall and its relation- ence; (4) the nature and extent of recent new com- ship to open space are also provided for. New Towns munity development; (5)the planning, financing, are started on previously undeveloped land and are and governing of new communities; and (b)the built by staged developmentover a period of time. objectives and problems of new community develop- To clarify this definition, it is well to keep in mind ment. As a basis for such analysis, it is first necessary the general objectives sought in the design andexecu- to distinguish between the terms "new towns" and tion of new towns in Europe. Thenew town pro- "new communities." gram was undertaken initially to relieve population pressures in int( nsively built-up metropolitan areas by "NEW TOWNS" AND "NEW COMMUNITIES" reducing the (:oncentration of population and places DEFINED of employme at, while allowing rebuilding of existing central cities. A complementary objective wasto pro- With the growing interest in "new towns"across vide a pattern of urbanization basedon employMent the nation, the problem of clearly defining what is opportunities in expanding industries located in de- meant by the term has become acute. Since the term pressed and underdeveloped rural and agricultural carries with it an aura of particularly pleasant and areas that were losing population to the large cities.2 desirable living, with few of the frustrating problems There are two principal types of new towns: inde- of the older metropolises, "new towns" has fre- pendent new towns, which are remote from existing quently been used as an advertising slogan. At the sites; and satellite new towns, whichare within the other extreme, it has been used, occasionally ina social and economic orbit of an eNisting metropolitan rather doctrinaire fashion, bysome planners, archi- complex. tects, and urban specialists to describe a specific type In the United Statk4, thete have beenno inde- of new, independent, and self-sufficient communityor pendent towns in the strict sense. Historically, city. Between these two extremes, the term has been the closest approadi involved specialized communities, applied to a wide range of urban developments hav- built in connfxtion with atomic energy or hydro- ing a number of different objectives. Clearly,not electricirr tallationssuchasNorris,Tennessee; everything that is called a "new town" isa new town. Boulder (3it), Nevada; Los Alamos, New Mexico; and The prototype of the concept of "new towns" in Hanfd, Washington. These have had a single eco- their purest form is found in Europe, particularly in nomic base and have generally not provided a wide the United Kingdom. The Britishuse of the term is range of housing types. They are too specialized then significant, because of the influence of their experi- to meet the general definition. Lake Havasu City, ence and because British goals, policies, and practice under development in western Arizona, provides the provide norms with which othermore limited ap- only current example of a new community approach- proaches can be compared. ing the British in character if not in size.

63 The bulk of American experience then has not 10,000 acres for 100,000 people.4 Table 41* provides been with "new towns" but rather with planned illustrative examples of theacreage and projected "new communities" thatare accessible to jobs and inpopulation of a number ofnew communities. dustry and that provide housing,some retail and com- Historically,a number of communitiesinthe mercial facilities, and may provide forsome light United States merit the designation of "new com- industry, but not necessarilya diversified economic munity," although initially they were thought ofas base. The "new communities" being built in the United planned communities." These included privately States today are characterized by their scale of de- built real estate developments and company towns, velopment, the management arrangements for their publicly built or assisted defense industry townsor development, and their comprehensive and inclusive hydro-electric project towns, and such social experi- original plan. For purposes of this report, "newcom- ments as the Depression era greenbelt towns. Follow- munities" are large-scale developments constructed ing World War II, they includednew community under single or unified management, following a fair- developments which were primarily a response toan ly precise, inclusive plan and including different types unprecedented housing demand built up during the of housing, commercial and cultural facilities, and Depression and War periods whenscarce funds, ma- amenities sufficient to serve the residents of thecom- terials, and manpower curtailed construction. This munity. They may provide land for industryor are demand was intensified by the post-war increase in acessible to industry, off er other types of employment marriages and spiralling birth rates. These develop- opportunities, and may eventually achievea consider- ments are typified by the Levittowns and Park Forest, able measure of self-sufficiency. With few exceptions, Illinoisin short, by satellite (i.e., suburban), planned new communities under developmenttoday are new communities that concentrated on middle-income within commuting distance of existing employment housing and shopping centers and that were entirely centers. dependent upon surrounding industrial andcom- Of particular significance is the idea of an initial mercial opportunities for employment. plan incorporating the ultimate geographicarea of More recently, several factors have combined to the community and providing for a predetermined generate a conscious effort among developers and population size. The effort to provide facilities and investors to create new communities. The continuing amenities at an early stage of development rather population growth accompanied by greater recogni- than as a response to population pressures is char- tion of a long-term replacement backlogdating back acteristic. Development on previously vacant land in to the twentieshave resulted in a sustained demand. Moreover, criticism has arisen of existing patterns of unincorporated areas or by so expanding existing urban developmentof standardized, unimaginative small municipalities asto be outside the normal houses, urban sprawl, long trips to work over crowded process of subdivision or tract development is also highways, and increased congestion in older cities. typical. Sustained prosperity for the longest unbroken period The projected total acreage and population ofnew in our history has provided an increasingly larger communities are other distinguishing characteristics. proportion of the population with means to purchase It should be recognized that the size and population added amenities. The result has been a new aware- necessary to sustain a meaningful new community de- ness of the potential of planned new communities to veloprnent will be largely influenced by variabIN such provide a more satisfactory or at least different pat- as topography, climate, population densities, the type tern of urban living. The major objectives of con- and character of development, and the intensity of temporary new communities are to provide better surrounding urban influence. The question of size, planned housing with services, facilities, and amenities however, merits special attention. One assessmentcon- either not available or only available at a much later cluded that it seems reasonable toassume that with time in conventional tract subdivisions. As such, they a tract of 1,000 acres or more a developer will tend constitute an urban development approach and a marketing device, which holds promise of significant to prefer the new community method of operating. social and economic contributions. An expected population of 10,000 might be takenas a practical minimum.3 Eichler and Kaplan in their THE DEVELOPMENT OF NEW TOWNS AND survey of California and the Washington, D.C., met- NEW COMMUNITIES ropolitan area found that the smallestnew community involved 2,600acres,plannedfor approximately The developmentof new towns and new com- 35,000 people, living in 11,000 houses and munities occurred both in Europe and in the United apart- States. A needed historical perspective is provided ments. Concerning California's experience, they concluded that a "typical new community" would be *See p. 78. 64 by a recent book commentingon one of these early form for the city which would utilize the facilities of new towns. modern technology withoutsacrificingthesocial The term, "New Towns" is once again heard in America, advantages of the history city. Ebenezer Howardwas but it seems to have acquired a European overtone, perhaps uniquely able to propose and gain acceptance for because of the New Towns that have been setup in England, such a concept andseeitputintopractical Sweden, and Finland among other places since thewar in an attempt to house the increasing populations of major cities in application. separate self-sustaining communities rather than in dormitory Howard's book, Garden Cities of Tomorrow (first suburbs. Even among some architects and planners the im- published in 1898 as Tomorrow: A Peaceful Pathto pression has spread that New Town is not exactlya hundred Reform) has, in the words of Lewis Mumford, "done percent American. Such chauvinists ignore their own history for nothing could be less foreign or morea characteristically more than any other single book to guide the modern American "mix" (to use a planners term) of Anglo-Saxon town planning movement and to alter its objectives." 6 tradition,Puritansentiment,capitalisticenterprise and Howard believed that the continued expansion ofthe pioneer communism than the New Town thatwas established large city would merely result inmore congestion, and in 1638 at Sudbury (Massachusetts).5 not necessarily in a higher level of social and cultural Before proceeding to an analysis of the objectives life for the majority of its residents.In seeking to and problems of new community development, it is relieve the congestion of London whileretaining for advisable to review the European experience and to his model community the culturaland social advan- examine in detail the various types of plannedcom- tages of an urban center (thus combining the best munity development attempted in the United States. attributes of both urban and rural settings),Howard based the plans of his proposed "gardencity" on THE EUROPEAN EXPERIENCE permanence through long-range planning and bal- Several European countries have had considerable anced growth. experience with planned new communities designed to Four fundamental principles governed Howard's accomplish social and economic objectivesas part of concept of the new town or "garden city": (1) limi- a national policy. As might be expected there have tation of population andarea, (2) growth by coloni- been a wide variety of governmental and private insti- zation, (3) variety and abundance of economic and tutional and financial arrangements usedinthe social opportunities and (4) control of the land in development of these communities. The Britishnew the public interest. As envisioned by Howard, the towns program, for example, was undertaken to "gardencity"was a compact,rigorously-defined accomplish the dispersion of populationaway from community protected from encroachment bya sur- London and is administered by nationally chartered rounding greenbelt and autonomous through thepro- new town corporations. In Stockholm, Sweden, on vision of industry to furnish nearby employment for the other hand, a greater rolewas played by private Nvorkers. Eventually, it wouldpossess all the social- enterprise operating within a national plan and policy. cultural advantages of a great metropolis through In the Netherlands, new town development ispart of regionalgroupingsof gardencitiesinto"social a highly centralized urban development and land-use cities." The decentralization of city functions into the control program. urban fringe would eliminate the physical and social While the European experience has taken place in dichotomy between the city and its rural countryside. countries with governmental organization and tradi- Howard believed this type of areawide development tions different from ours and withmore limited land would halt disorderly growth and resultant congestion. area for urban expansion, there are significant lessons With the expanding population channeled tonew and insights to be gained from them. towns, the center of the city could then be recon- structed along more amenable lines. GREAT BRITAIN As Lewis Mumford has pointed out, not all of The growth of cities in Europe during the last Howard's ideas were original. In essence, he synthe- two sized the ideas of the early utopians like Kropotkin centuries has proceeded more rapidly thanany time since the 12th and 13th Centuries, when the historic and Charles Fourier, and assembled them in a prac- towns of medieval Europe were taking form. Many tical package. However, "what was significant about the garden city was not the mere presence of gardens older cities, which once met the requirements fora and open spaces! What was radically new was a high urban culture, had become crowded, unsanitary, rational and orderly method for dealing with com- confused and inefficient. While sporadic effortswere plexity, through an organization capable of establish- made to resolve certain of these conditions, there ing balance and autonomy, and of maintaining order were no attempts to achieve total improvement, to despitedifferentiation,and coherence and unity alter the methods of city growth,or to form a new despite the need for growth. This was the transforma- urban pattern. There was no conception ofa new tive idea." 7

310-335 0-68-6 65 One year after the publication of his book, Howard This legislation gave authority to the Minister of helped found the Garden City Association(since Town and Country Planning (now the Minister of renamed the Town and Country Planning Associa- Housing and Local Government) and the Secretary tion). Its basic purpose was to demonstrate the feasi- of State for Scotland to designate land area in their bility of Howard's idea by actually building a garden respective geographic jurisdictions as sites for new city in England. towns and to appoint development corporations to The First Garden City, Ltd. was formed by a group be charged with planning and implementation. of leading citizens to build a new city in Letchworth. Development corporations are composed of leading Investors viewed the scheme as risky and the company citizens of varied backgrounds. Each corporation hires found it difficult to raise the necessary capital. Since its own staff, and the Chairman of the corporation the site was completely undeveloped, the necessary isdirectlyresponsibletotheCabinetMinister roads, sewers, water and electric facilities had to be involved. The function of development corporations installed. The company did no actual building, but is to acquire the land, make the plans, and generally encouraged homeowners, industrialists, and retailers hire contractors to put up most of the houses and to build on leaseheld sites. In this first modern new industrial plants. They also have power tobuild town, we see the problems that were to plague many, sewers and water facilities, when needed; but other- if not all, of the new town developers on both sides wise they do not do jobs normally handled by local of the Atlantic. Despite its early difficulties, however, authorities.9 Letchworth eventually succeeded. As FredericJ. Since World War II, new towns in Britain have Osborn and Arnold Whittick explained: been public projects. Their planning and development It demonstrated that a town based on modern industry has been infused with and carried out pursuant to can be economically and socially viable, even if built well out public objectives. While the government funds the of the immediate sphere of a metropolitan center.' development corporation with public loans, the key In 1919, Howard joined forces with a new group to its control is the "designation order," which serves to embark on a second demonstration of his garden as a functional land-use control and development cityidea. Like Letchworth, thesite planned for mechanism by giving regulatory and developmental Welwyn Garden City was undeveloped land lacking powers to the new town corporation. basic public facilities. There was little public enthusi- Althoughthec'orporationisgranted extensive asm and poor financial backing for the proposed developmental powers, itis not designed to replace town. In contrast to Letchworth, however, the com- and to act as a local authority or government. The pany planned to monopolize enterprises that were local council continues to administer the normal local expected to produce a profit. The company's refusal functions ill the new town area. The local voice in to grant long-term leases to retailers made it difficult the planning and development process, however, is to attract commercial enterprises. As a result, it was limited to consultation with the local planning agency, forced to set up its own department store. This pro- which in turn can be overruled by the Minister. More- duced a sharp reaction from the new residents. over, the Minister retains control over the actual The company displayed notable success, however, timing of development and construction through his in maintaining sufficient architectural control to foster power to approve or disapprove the master plan and a high quality of building and landscape design. Like each stage of its implementation. Letchworth, the developers did not build a mere As the first cycle of development reached its con- suburb, but a self-contained industrial community clusion for some of the new towns in England and where 90 percent of the residents found employment. Wales, the Government passed new legislation (the In these two respects, it must ank as a model of New Towns .kct, 1959) to define and regulate the town planning. future ownership of the new towns. This act did not While by the late 1930's Letchworth and Welwyn apply to Scotland. It provided that upon completion ere comparatively prosperous towns, in this period of development, the Corporation would be dissolved there was no new private or governmental movement and the new town handed over to a nationally to develop additional new towns. Toward the end appointed commission, to be known as the Commis- of the Second World War, however, interest in new sion for the New Towns. towns was regenerated, mainly as a result of Sir This body assumes ownership and control of the Patrick Abercrombie's Greater London Plan (1944) new towns, and is charged with maintaining and and the Reith Committee reports (1946). The latter's enhancing the value of the land, in accordance with recommendations for government aid in the develop- the purpose for which the town was developed. It ment of additional new towns received Cabinet sup- may contribute toward the cost of providing amenities, port, resulting in the enactment by Parliament of the but any financial surpluses shown by the town must New Towns Act of 1946. be paid to the Government.

66 Provision was made forsome decentralization of land. Tapiola is the work of the National Housing control. For example, the Commission, unlike the Foundation, a nonprofit organization created during local development corporation, is subjectto local the post-war housing shortage bya group of welfare planning controls. In addition, itmust establish a and labor organizations who subscribed its initial capi- local committee for the management of houses ina tal. Since then it has been largely self-financing, new town which has been transferred to it, and may, although it has received thesame housing subsidies if it wishes,arrange for the committee to conduct as any nonprofit organization providing low-income other business on its behalf. Despite thesetwo con- housing. Most of the initialmoney was invested in cessions and considerable independence in theirday- land, and by American standards, its buildingopera- to-day work, British New Townsare subject to directions have required large downpayments from home- tion by the central government from thetime of owners and loans at high interest rates. Tapiola's high their inception. planning standards, varied housing designs,sound Since 1947, 21new towns have been designated industrial base, and amenities greatly strengthened in Great Britain. Of these, Crawleyand Hemel its appeal to both white and blue collar classes,and Hempstead have been reassignedto the Commission this permitted the Foundationto surmount fiscal and for the New Towns. The other 19are still in the other difficulties. intensive development stage.. Atpresent, approxi- Developed over a period of nearly 15years, the mately 650,000 people out of projected population community has grown by increments sufficiently small 1,354,000, reside in thesenew towns.1° and varied in design to enhance its initial, distinctive The new towns have contributedto the solution character. A sound comprehensive plan has also main- of Britain's traditional problem of urban centraliza- tained unity and assured such systemwide featuresas tion. Instead of living in crowded citiesor traveling district heating and an outstanding park plan. The long distances to work, the residents of thesecommu- message of Tapiola is clearly that a well-designed nities have been provided witha comfortable, healthy citysuch as originally proposed by Ebenezer Howard environment near their place of employment. In can be built today to accommodate a broad cross- summarizing the growth of British New Towns, Lloyd section of the community. 12 Rodwin stated: "Experience withnew town development in Great Britain and other countries shows that THE AMERICAN EXPERIENCE they are neither apanacea nor a failure. They are complex and increasingly valuable tools whichplan- The first settlers at the beginning of the 17th Cen- ners can employ to stimulate development andto tury were concerned primarily with establishinga organize the physical environment." 11 foothold and with surviving. Consideringthe odds against which they fought, it is surprising how early OTHER EXAMPLES their attention was drawn to establishing planned new towns, as distinguished from simple fortified The accomplishments of smaller northernEuropean nations in building new towns have been impressive, settlements. By the end of thecentury a quite sophisticated plan was developed and implemented for Wil- but they raise questions in the minds ofmany Ameri- cans because of the extent of government involve- liamsburg to serve as the colonial capital of Virginia. ment. In the Netherlands, for example, the Amstel- As colonization spread westwardacross the con- veen settlement, with a density typical of an American tinent, new villages, towns, and cities followed inits wake. Yet only rarely was the gridiron suburb, provides an excellent example of urbanplan- street, strip ning. The creation of southern Amsterdam commercial development pattern brokenas it was in and the the early Ohio planned community of Tallmadge, building of Rotterdam providesome of Europe's best examples of modern city planning. which was laid out arounda rectangular village square with radial streets reaching out from it. Since In Sweden, the orderly growth of Stockholmunder- scores the successful all of the early pioneer forest and prairietowns were application of a deliberate new in the same sense that the colonial settlements municipal strategy. Anticipating expansion,the city of Stockholm acquired had been, the exceptions standout mainly because some 50,000 acres of land in of the quality and imaginative its environs to accommodate futurepopulation. Pend- nature of their planing such use, the landwas reserved as a recreation ning and execution. The antecedents of today'snew and campsite area. Pursuanttoits comprehensive communities were generally called "plannedcom- plan for satellite development, the cityhas undertaken munities." to build a ring of new towns and to extend rapid transit service to thenew communities. INDUSTRIALIZATION AND URBANIZATION One of the best known efforts innew town build- The course of industrialization in the United States ing is Tapiola, lying six mileswest of Helsinki, Fin- destroyed or rendered irrelevantmany features of the

67 agrarian ethic and created the framework of today's 1850's, Yankee millowners no longer felt the need urban development. Between 1840 and1900,the to provide company town facilities. massive influx into the newly created great cities The labor-management controversies following the erased the rural population predominance over urban Civil War industrial boom dampened any inclination centers and helped establish an industrial economy. favoringlong-rangeplanning considerationsover Simple forms of government and haphazard com- short-run objectives in the construction ofcompany munity growth relevant to an agrarian economy, how- towns. Developments such as Gary, Indiana, built ever,persisted wellinto the 20th Century, even by U. S. Steel on the south shore of Lake Michigan, though the problems of urbanization increasingly are illustrative of company towns of this period. The demanded attention. development of Gary emphasized private incentive in Widespread recognition of the drawbacks of aim- home building, and includedsteel manufacturing less urbanization and expansive growth has been slow facilities, railroad transportation, and public utilities. in developing. The concept of a coordinated plan- A. P. Melton, the chief planner, foresaw the develop- ning effort has been resisted by both private development of a linear string of separate towns connected ers and government. American community planning by railroad in the Gary region, but such development generally has been characterized by unrelated efforts occurred rather less systematically than he expected of individuals and groups. and produced not a new community pattern, buta Each attempt at urban planning, however, has pro- vast regional industrial sprawl. vided its own responses to these problems. Lessons Many industrial townsKohler, Wisconsin; Gran- can be drawn from these experiences that should be ite City, Illinois; and othersfollowed this pattern considered by those who would propose a more of unrestricted growth, with such resultant short- thoroughgoing program of community planning in comings as inadequate housing, street, and parking general and of new communities in particular. Despite facilities. Yet, some company towns instituted impor- the comparatively small number of community plan- tant innovations in physical planning, financing, and ning efforts, they constitute a vital part of urban services. The general faith of these industrialists in development in the United States. In the following the economic viability of large-scale property opera- historical survey, attention is devoted to the main tions encouraged later private developers to attempt percursors of current new community development similar projects. even though not all would meet a strict contemporary Two of the most significant examples of company definition. towns were Pullman, Illinois and Kingsport, Tennes- see. Completed in 1884 as an "industrial park," Pull. PRIVATE DEVELOPMENT AND PLANNING man featured cultural, educational, and athletic facil- Company Towns. In the evolution of planned ities provided by a large arcade and numerous play- communities in the United States, company towns ing fields. Housing varied with income and was above stand out as the first major development, mainly be- the general contemporary standards. All homes were cause they were an initial outgrowth of the industrial on a rental basis, and all costs, including construction revolution. The National Resources Committee's1939 and maintenance, were charged against the generally publicationUrban Planning and Land Policiesclas- high rents. The principal problem was the absence sified32of its99case studies of planned communities of democratic checks on the exercise of the authority as company towns.13 of company agents and supervisors to conduct munici- Between 1830 and 1900 construction of these towns pal affairs. was at its height. However, as time went on, only a The development of Kingsport in1915marked few could be considered well planned, largely because perhaps the greatest advance in planning a company the promoting industrieswere concerned mainly with town. Its features included a diverse industrial base, profits and the needs of thecompany rather than an early planning body utilizing private zoning regu- with experimental planning. Priorto the 1850's, this lations, and initially a wholly democratic council- was not so much the case. For example, when obliged manager form of local government operating under a to employ female workers as a result of labor short- model city charter. However, the physical plan and ages, Francis Cabot Lowell's textile manufacturing the generally inadequate permanent zoning restrictions retarded the healthy, balanced development of company responded to New England socialpressures by adopting a policy of Kingsport. company paternalism. In Generally, company towns have been a minor ele- 1832,Lowell, Massachusetts,was constructed on a ment in the American tradition of city planning. As simple and functional plan thatcreated a town of John W. Reps has stated: "the history of these [indus- unique character admired bymany foreign visitors. trial] communities provides few precedents that we With the influx of cheap immigrantlabor in the would care to duplicate in the future. American 68 industry, for all its success in production, singularly Unique planning features and comprehensivepro- failed in its attempt to manufacture noteworthycom- tection deed restrictionscharacterized by stability of munities." 14 Although many of the explanations of land-use, separation of residential and businessareas, their failure or the causes of their success have little and a continuous planning functionmake thesereal direct relevance to the problems faced bynew com- estate communities significant improvementsover the munities today, in some respects the history of Ameri- company town idea. In addition, they avoided two can company towns provides valuable insights into of the major shortcomings ofcompany towns. First, perennial problems in urban development. Their while the industrial developments hadbeen pater- experience demonstrates the need to insure demo- nalistic "borderingon the dictatorial," the real estate cratic participation by citizens in planning and admin- communities were largely selfgoverning.Second, these istration as well as the advisability of joint business- communities proved to be fertileground for the governmen tal efforts. development of a "sense of neighborhood,"a "corn- .munity spirit" so obviously lacking in the latercom- Real Estate Communities. The failure of Pullman pany towns. and other company towns to generate widespread public enthusiasm or to solve major problems of industrial- Yet, these benefits were purchased ata price which ization indicated the failure of paternalism aloneas a precluded broader application of these developments means to those ends. The large-scale construction and to the problems of expanding urbanization. The major planning involved, however, encouraged other private feature limiting their contemporary relevancewas the investors to initiate their own planned communities, cost of their construction and subsequent mainte- albeit for entirely differentpurposes. The real estate nance. Such an investment involved a risk that only communities were an attempt to create suburbscom- financially strong industrial corporationswere able pletely cut off from the industrial process. Through to accept. It ultimately precluded any but upper- such action, their developers hoped to avoid the prob- income housing and thus prohibited a "mix" of citi- lems that had beset company towns. zens differing in social, financial, or ethnic status. Riverside,Illinois, established in1869, was the Furthermore, in some cases (notably at Palos Verdes first of the real estate communities, and attracteda Estates) the contradiction between the management's population which stubbornly maintained Frederick genuine desire to strengthen citizens' participation in Law Olmstead's original plan against the relentless policy development and the individual homeowner's urban growth of the Chicago transportation and personal desire for speculative investment through the recreation systems. Roland Park,a suburban section sale of land and securities promoted administrative of- Baltimore established in 1891, developed intoa confusion and vacillation. As in the industrialcom- self-contained community endowed with unique cul- munitiesalthough to a lesser extentprofit rather tural, religious, and educational facilities, andsuc- than long-range public benefit becamean inescapable ceeded in sealing itself off from urban infringements objective. Beyond these drawbacks lay the basic fact that a flight to suburban safety merely ignored, rather by open space anda high stone wall. The Country than relieved, urban problems of congestion,trans- Club District of Kansas City emerged in 1906as a portation inefficiency, and inadequate industrial loca- reaction to the industrial belt surrounding the cityand tion. attempted to insulate itself from urban growth by These early suburban developments demonstrated comprehensive deed restrictions. Forest Hills Gardens the possibility of large-scale private sponsorship of on Long Island, New York (1911), was intended by planned communities. However, neither industry, its developers to be a striking example ofa profitable seeking integration of industrial capacity into planned business enterprise and ofa comprehensively planned communities through paternalism, nor private real real estate development. It provedto be the most estatedevelopers,seekingexclusionofindustrial successful of all communities here considered. Finally, capacity through rigorous controls and the profit Palos Verdes Estates of Los Angeles County (1923) motive, were able to provide a practical general alter- was the most complete expression of community native to unrestricted urban growth. development by business incentive. Owners of securities of the trust indenturewere permitted to either Garden Cities. The impact of the Progressive politi- retain their securities for speculativepurposes or to cal movement at both the national and State levels contributed in the two decades following 1910 to an exchange them for land atcost price. It should be increased public acceptance of a positive governmental noted that all of these developments except the Coun- role in the economy and in promoting limited social try Club District were planned by Frederick Law objectives. Yet, even with the growing awareness of Olmstead, Sr. or by the firm of Olmstead Brothers. certain urban problems and the increasing popular wil- The District was developed by the Sage Foundation. lingness to sanction a governmental role, efforts to plan

69 new developments or to adopt and publicize innovative was limited to the enactment of minimum standards theories of community structure were undertaken by legislation. Throughout the1920's,the [Regional individuals having neither enthusiastic public support Planning Association of America] pressed for the nor effective communication with their fellow plan- establishment of financial mechanisms to channel ners. Only the housing shortage of thetwenties 0-overnment capital into the housing market. ...Com- increased public awareness of community planning plaining of a continued scarcity of private capital and of new towns as a potential channel for expand- for housing purposes, Stein's [New York State Com- ing urbanization. mission of Housing and Regional Planning]rec- Clarence Stein, a planner for the New York Com- ommended municipal loans, public housing, and a mission for Housing and Regional Planning and for constitutional amendment authorizing State housing the Regional Planning Association of America synthe- credit." 15 sized many previous American experiences in plan- Such financial backing would make middle- and ning and gave direction to future planners through low-income housing feasible for planned communities. his evolution of a program designed to create new Moreover, Stein's objectives extended the scope of his towns in America. His theory, which came to be communities beyond those of the industrial towns. His known as the Radburn Idea, was one of the most planning theory assumed that the unusual design of important milestones in the history of American com- the new town required an unusual form of legal munity planning. It was drawn in part from Euro- framework to organize and maintain the community. pean experience, yet was wholly native in its proposed Planning was seen as a social process, rather than as solution to problems of urban deterioration and dis- the formulation of a physical objective and the mobili- orderly suburban growth. zation of existing resources to attain that goal. If a The major component in the formulation of the plan was an integral part of social organization, it Radburn Idea was the work of Ebenezer Howard. would possess vitality; if not, it was lifeless whatever Howard's theories concerning the development of its technical merits.'" These principles were reflected garden cities, presented earlier in the chapter, sub- in four communities which were planned by Stein stantively influenced Stein and through him, all subse- Sunnyside Gardens, Radburn, Hillside Homes, and quent American community planning. Baldwin Hills Village. The other major influence on Stein was the work Sunnyside Garden Apartments, a planned neighbor- of Clarence Perry. Perry hypothesized that the total hood in New York City, was constructed between community should be planned as a series of separate 1924 and 1928 and served as the first expression of neighborhood communities and a commoncommu- Stein's planning and social objectives. The preserva- nity center linked together by pedestrian thorough- tion of open space through interior parks and gardens, fares separated from those for traffic. Sucha settle- and the use of the "superblock", with its vital comment of completely integrated neighborhoods, Perry munity spirit, represented to Stein an important step reasoned, could bring to within walking distancea towards the construction of a complete garden city. common meeting place for all community inhabitants, What initial and continuing success the community with resulting social benefits. possessed was made possible by the availability of To these two theories, Stein added his own prag- transportation, by rapid, large-scale construction mini- matic justification for the development of new com- mizing carrying charges, and by community self- munities. FIe was convinced that the standard urban government. Stein had expected that the economics growth pattern was overly expensivedue to such of low-interest capital financing, rapid construction, invisible costs as lack of accessible recreation facilities and centralized purchase and management would and transportation congestion, and that large-scale offer both a superior residential enviromnent and a financial investment over long periods of time,as substantial reduction in costs. However, in the end well as a long-range flexible planningprocess, could Sunnyside houses were more expensive than those support the building of a town of substantial popula- provided by speculative developers, because the 6 tion, democratically administered, and havinga high percent dividend rate was too high to serve the needs level and wide range of municipal services. Such of low-income workers (thus preventing the social- community characteristics would eliminate the type financial mix which Stein had sought) and because of financial arrangements which had supported overhead costs made competition with the speculative pre- builder difficult. vious company towns and real estate developments. The establishment of Radburn, New Jersey, in He suggested that limited dividend corporationsor 1928, was an attempt by Stein and Henry Wright to organs of government might serve as sponsors of new build a true garden city. In this respect, it is one of communities. Stein, "...sharply challenged the tra- the major experiments in the history of .krnerican ditional assumption that government's role in housing urban development. The plan was essentially that of 70 Sunnyside but executed in a nonurban and vastly land assemblymay dependupon financial support expanded setting. It utilized superblocks, roadsfor from the government. specialized uses separating pedestrian andmotorized travel, and central parks, although it didnot include GOVERNMENT COMMUNITIESINTRODUCTION Howard's greenbeltor ties to nearby industrial facili- OF THE FEDERAL ROLE ties. Radburn sufferedmore intensely from financial difficulties than had Sunnyside. Stein himselfcon- World War IU.S. ShippingBoard Communi- cluded that unless insurance companiesor endowed ties. Direct Federal sponsorshipof comprehensively foundations provided capital assistance inreducing designed residential developmentsbegan with the the load of overheadexpenses, government coopera- October 1917 recommendationsof the Advisory Com- tion would be essential in taking andholding land, mission of the Council ofNational Defense inre- in financing essential utilities, highways, andlow- sponse to severe war industry housingshortages. In income housing, and in constructing publicfacilities. March 1918 Congress enactedthe necessary housing legislation and appropriated Hillside Homes, New York, continued thetradition an eventual total of $175 of Sunnyside as an apartment complexutilizing indig- million--$75 millionto the Emergency Fleet Corpora- enous open "green space" withina built-in urban tion (EFC) of the UnitedStates Shipping Board area. It was an example of the governmental financial and $100 millionto the United States HousingCor- assistanceStein had earlier recommended, with poration (USHC) throughthe Labor Administration Federal financing being offered first bythe Recon- for the creation ofpermanent homes andcorn- munities. Absolute control struction Finance Corporation andsubsequently by in these projectswas main- the Public Works Administration.The full recovery tained by thegovernment, with the USHC building of costs anda vacancy rate of less than one-quarter and administering itscommunities directly, and the of one percent in its first 14years provide an indica- EFC maintaining completecontroloverrental, design, and management policy. tion of the combination of circumstancesnecessary to reach a break-even point. Following Great Britain'sprecedent inwar housing, these communities Constructed in 1941, Baldwin Hills Village,located all relied stronglyon the prin- in Los Angeles County,was the last of the communi- ciples of the garden city:curvilinear functional streetsfavoring natural ties planned by Stein. It representedthe most com- topography, ampleopen space, easily accessible community plete expression of the Radburn Idea.As with Hill- centers, attractive side Homes, onlygovernment financial assistance, in row housing, and the generalsense of an overall com- the form of Federal HousingAdministration insur- munity plan. The Armistice of1918 brought curtail- anceguarantees,permittedconstructionofthe ment of all work of the Corporationexcept on proj- development. The long-term equilibriumof the corn- ects already begun. In justfive months of actual munityas demonstrated bythe 100 percentoccu- operation, however, the USHCbuilt some 25 develop- pancy since establishmentillustrates the rolethat ments and made detailed plans foranother 5517 Cer- government assistance can playto lessen carrying tain of the problems involvedin this approach were charges and market pressures during the necessarily apparent in the disposition of thecommunities of extensive planning period. Onthe other hand, the Yorkship Village, New Jersey;Noreg Village, Penn- gradual stabilization of theage and income levels to sylvania; and Cradock and Hilton, a mature upper-middle class Virginia. group indicates that to Yorkship Village in Camden, NewJersey, was built insure a "mix,"a planned community must be large by a realty enough (Baldwin Hills has company on behalf of the local shipbuild- only 1,170 tenants) to ing company, which accommodate different kindsof living preferences. was ultimately responsible to the The urban design features United States Shipping Board.In the post-warpres- of the Radburn Idea sure to dissolve all connections between the and the appropriateness ofcost analysis as a planning Federal technique are the major legacyof these efforts of the Government and housing, thetown was sold at auc- mid-1940's. Experience in othercritical areasnota- tion by the government inDecember 1922. The sale bly those dealing withproblems of incorporation, resulted in the absorption of theVillage by the City unified administrative controlversus democratic par- of Camden, with land ownership dividedbetween ticipation, maintenance ofa continuous planning pro- the city and the New York ShipbuildingCorporation. cess, the use of a deed restrictionprocess, and the This discontinuityof administrationverynearly level of community servicesprovidedwas much less ruined the well-conceived andexecuted scheme of conclusive. The majorproblem confronted, that of the village. The conditions of thesale imposed no financing new developments,revealed thatmany vital restrictions on the subsequentdevelopment of vacant aspects of new community developmentsuchas low- sites, which were scattered within,as well as along, the income housing, long-term planning, and large-scale periphery of the community. As the 1939report of the National Resources Committee on Urban Plan- ing deed restrictions, thus insuring reasonable orderly ning and Land Policies reported : development. It may be a platitude to state that the more distinctive and The most notable achievements of the U. S. Hous- unique the layout and architecture of a community, the less ing Corporation were general town planning, and is required to throw the whole composition off balance, thus architectural and design improvements. The corpo- obtaining not only a less pleasing result by the introduction of incongruous elements but an actual shock and disappointment ration assembled and examined about 5,500 plans. to the observer when the promise of a culminating feature or Considering the crisis nature of the period and the a harmonious pattern is suddenly dissipated...it brings assumed objective of standardizing plans and build- home with renewed force the great desirability of a continuing materials, the corporation approved and imple- ing agency to function not only actively during the formative mented an astonishing variety of imaginative housing stage of a development but extensively and in adaptation dur- and site plans. The corporation investigated the feasi- ing the subsequent periods of its life...Yorkship is a good place to observe what a well-designed community might have bility of having construction performed by limited- looked like with proper care." dividendprivatehousingcorporationsespecially Another aspect of the unfortunate conditions that created at the local level, but abandoned the plan resulted from theprecipitate and poorly-planned due to repeated local resistance to the idea. However, withdrawal of Federal Government influence is illus- the corporation succeeded in establishing new stand- trated by Noreg Village located near Philadelphia. ards for mass housing and in simplifying heating, Following the public auction of the homes in 1923, plumbing, and millwork. the town was incorporated under a mayor-council Four other major accomplishments of the war hous- government the following year. Shortly thereafter, ing developments are significant for the future estab- the shipyards at Gloucester were abandoned. This lishment of planned communities." First, the program destroyed the economic base of the village. The Fed- was successful in creating a substantial supply of eral Government continued to hold the mortgages attractive moderate- and low-income housing, con- on the homes of the unemployed residents and there vincing some planners and architects that such a were a number of reversions of title. The presence of community could be repeated. Second, the potentiali- large portions of such tax exempt property deprived ties of town planning and the necessity for continuing the newly-incorporated town of about one-half of its community administrative authority and local govern- property tax base. Noreg Village provided living con- ment authority were revealed. Third, there was ditions not to be found at comparable prices anywhere increasedpublic andprofessionalacceptanceof else in the Philadelphia area, but its physical plan was governmental involvement in housing and community inadequate and the financial affairs of the community development. Fourth, city planning as a profession badly scrambled. was encouraged. The Corporation's village of Cradock, Virginia, Greenbelt Community Development. The ex- was a depressed area for a short period following the clusively Federal development of the greenbelt com- War, due to suspension of construction and provision munities was made feasible politically by the exigencies of utilities, as well as the exodus of theemergency of the Depression and economically by the small num- workers from the Portsmouth Navy Yard. No local ber and size of the settlements. The 1935 Executive organization was formed to takeover the disposition Order creating the Resettlement Administration in- of the community, and not until 1920were all the cluded a provision for greenbelt towns. Of the 25 cities houses sold. In that year, Norfolk County assumed and possible sites for construction chosen by the titletoroads,parks, undergroundutilities,and Suburban ResettleMent Division for intensive study, schools. Such authority wassoon extended over the three project sites eventually were settled upon: Green- town government and administration. The USHC belt (on the outskirts of Washington, D.C.), Greenhills gradually disposed of its holdings withcare tG prevent (Cincinnati, Ohio) ;and Greendale(Milwaukee, undue speculation, thus allowing the county adminis- Wisconsin). tration to assume control in an orderly fashion. The planning teams for each of the developments The United State Shipping Board's firstnew com- were given complete freedom of design, provided that munity was Hilton Villagenear Newport News, Vir- all communities were to have unified land ownership ginia. The village remained unincorporated after the and use, exclusively low-income housing, coordinated War and, like Cradock, came under the corporate urban-rural attributes and plans, perpetual leasing, authority of its county. Unlike Cradock, however, and a municipal government suited to the local area.2° the influence of the Newport News Land Corpora- The planning process and the actual construction tion, the company holding the land for the Shipping of the towns lasted until 1938 and represented the Board, was reasserted at the close of the War. This first stage in the settlements' ultimate emergence as influence was maintained through continuously evolv- independent, incorporated towns. The second stage,

72 from 1938 to approximately 1952, resulted in the way were cut through the greenbelt, neither the citi- gradual reduction of the controls exercised by the zens nor the local government objected since the Management Division of the Resettlement Admin- highways would provide better transportationfor istration through tenant selection, organization of commuterstourbancentersand wouldbring local government, maintenance of government facili- increased income by attracting business to the town. ties, and provision of community managers. The final The result was a dismemberment of the protective stage was reached by each of the communities between greenbelt and the destruction of what little rural 1949 and 1953, and involved the liquidation of character the community had retained. Gradually, the government holdings and the sale by the Public Hous- skyrocketing land prices produced a phasing-out of all ing Administration of all undeveloped land to private low-income groups who could not afford to remain in nonprofit veterans' associations. With this final step, Greenbelt. Greenbelt today is a middle and upper- local governments assumed all powers and services middle income suburb, lacking a significant social or formerly reserved to the Federal Government. An financial mix. examination of the experience of one of these areas Since much of the experience of early Greenbelt Greenbelt, Marylandmay provide insights concern- was conditioned by the extraordinary power wielded ing the problems encountered in Federal ownership by the Federal Government, it provides few relevant and administration of communities. guidelines for future planned communities. While Some attribute the failure of Greenbelt, Maryland, some consider the experiments of the Resettlement to develop according to its initial plan to the failure Administration to have been very much worthwhile, of the Federal Government to sufficiently prepare for others point to the failure of Greenbelt, Maryland, as the transfer of functions to local instrumentalities. a striking illustration of the shortcomings of direct Despite strong resident participation in community Federal ownership and operation of communities and activities in Greenbelt's early history, by 1952 there the lack of financial and political involvement of was a general lack of public interest in continuing State and local government. In any case, the Green- any sort of master planning. Furthermore, the Federal belt experience no doubt contributed to a continuing Government's failure to continue a liberal financing interest in the potential of the Radburn idea of policy after the town's chartering in 1937 by the traffic-free superblocks attained by cluster design and Maryland Legislature destroyed much of the local the related characteristic of respect for topography incentive to continue the original planning process. and nature.21 Since the Federal Government had assumed full Power and Reclamation Projects. The large- control over all community land, the local govern- scale power and reclamation projects sponsored by the ment, though endowed with powers similar to those Federal Government in the 1930's also entailed the of a standard town administration, was unable to creation of new communities, but of considerably levy property taxes. Hence, Congress in 1936 author- smaller scale than the Greenbelt towns. Two examples ized the Resettlement Administration to support the of such communities are Boulder City, Nevada, and greenbelt towns via payments in lieu of taxes. During Norris, Tennessee. World War II, the Federal Government gradually lost Boulder City was established in 1930 as a temporary interest in the greenbelt towns and was increasingly construction site and emerged by 1937 as a permanent reluctant to continue financial support. When Green- town with a master plan. It was administered from belt was given control over its own finances, all Federal the beginning strictly as part of the Hoover (Boulder) financial aid was terminated. The town had to rely Dam project. No machinery was provided for con- on its own resources, even though it lacked an indus- sultation with local residents. The Federal Govern- trial base. ment's contribution to local services was financed Greenbelt Homes Inc., the cooperative formed to basically out of revenues from the sale of power. All sell shares in the completed dwelling units and to dis- therevenuesreceived from BoulderCity were pose of much of the vacant land, found the market required to be deposited in the Colorado River Dam unprofitable and sold to private subdividers. Failure fund. Until 1948 when project and nonproject costs to impose restrictions on resale standards led to enor- were segregated, all expenses incurred by the city in mous increases in market prices for private homes. its management, operation, and maintenance were The profits available to developers in residentialcon- paid for out of the fund. struction and sales discouraged new industrial loca- The results of a 1949 survey led to an order of the tion in the town. This increased profits for private Secretary of Interior in 1951 appointing a City Mana- developers, but provided less revenue fora local ger for Municipal Affairs with an elected Advisory government already operating on an inadequate Council of local residents. The Bureau of Reclama- financialbasis.When theBaltimore-Washington tion then turned to the Housing and Home Finance Expressway and later the Kenilworth Avenue Belt- Agency requesting them to prepare for the sale of

73 houses and the transfer of service installations to a New Mexico. None of these communities developed prospective local government. However, the amount under stable master plans, since requirements were of government land holdings in the municipality sub- changed several times during their planning and con- stantially cut down the possibilities of revenue from struction. Only since 1947 has permanent construction the property tax. The chief source of revenue was to been substituted for the use of temporary war mate- come from the sale of electric power for domestic use. rials. Because all the communities were affected by the Due to citizen opposition to the transfer, it took the same Congressional legislation, their histoties are quite HHFA eight years to dispose of all real property and similar. Federal involvement officially ended with. the service installations to the local government. This passage of the Atomic Energy Communities Act of experience prompted the Comptroller of the Bureau 1955. This legislation authorized disposition of the of Reclamation to state :"The time to decide the communities and the adoption of local self-govern- method of disposition of a town is when the town ment. Oak Ridge achieved independent status in 1960, is started. Later when a community has been nurtured while Hanford and Los Alamos became autonomous in in the atmosphere of Federal subsidy, the selection of 1967. Examination of one community will highlight a method is tremendously complicated." 22 the significance of the AEC experience for future Between 1933 and 1935, the Tennessee Valley planned communities. Authority built Norris, Tennessee, located about 21 Oak Ridge was constructed by the Turner Con- miles from Knoxville to house workers employedon struction Company and controlled by the Army the Norris Dam project. The original plans called for through Roane-Anderson Company. Roane-Anderson construction of permanent, rather than temporary, administered and maintained the transportation sys- facilities. Like Boulder City, Norriswas under com- tem, and provided fire and police protection. A mas- plete Federal supervision and received aid in the ter plan was developed in 1949 by the Oak Ridge form of supplementary police and fire protection and Regional Planning Commission to alleviate the over- maintenanceofutilities.However,thecounty crowding and inadequate facilities caused by the administered the school program. As earlyas 1936, a necessary speed of war time construction. As early council was elected to serve inan advisory capacity as 1948, plans for incorporation and for transfer of tothe city manager. The single management of authority were being developed by the Advisory Town property and controlled development prevented exces- Council and the Regional Planning Commission in sive depreciation and allowed stable town growth. By the form of zoning plans, subdivision by-laws, and 1948, the town was put up for sale by the TVA and drafts of incorporation. Fortunately, the subsequent was bought by Norris Properties, Inc. All local govern- termination of Federal ownership did not immediately mental duties were turned over by the TVA to the force the community to rely on its own limited financial resources. The Atomic Energy Communities Act council of the incorporated municipality. For two required the continuation of annual assistance pay- years Norris Properties provided police and fire pro- ments in lieu of taxes for all property remaining tection, but by 1950 they resold their holdings to the under Federal ownership, and also provided special citizenry after having opened many rebuilt lots for interim payments to sustain the local public bodies development. until they were providing necessary services and As a planned community, Norris achieved a charm receiving adequate revenues. Municipal Services, Inc., and attractiveness that continued during its post-war the contractor for the AEC after Roane-Anderson, role as a satellite of Knoxville. Kingsport and Rad- stilloperates and maintains a government-owned burn were the chief precedents that the planning water system and AEC-owned buildings, equipment, staff followed, as revealed by Norris' protectivegreen- and roads. These Federal procedures allowed maxi- belt, interior parks, pedestrian underpasses, andcom- mum flexibility to these local governments in their munity centers. The town was developed in isolation early years of incorporation.23 from outside urban growthpatterns. The rural The AEC communities illustrated the value of ade- character and small size of the settlement has special quate transitional financing and local participation in relevance to certain contemporary community build- planning for the future. Moreover, policies and pro- ers' efforts. Moreover, the stable, healthy transition to ceduresforlarge-scaleconstruction, maintenance, corporate status was a model of positive and long- administration, and eventual devolution of authority may serve as an encouragement to the contemporary range planning. generation of private community builders. Atomic Energy Towns. The examples provided by Boulder City and Norris, in turn, guided the Atomic DEVELOPMENTS AFTER 1945 Energy Commission in its creation of Oak Ridge, The housing shortage that occurred after World Tennessee ; Hanford, Washington; and Los Alamos, War II had its origins in conditions corresponding to 74 those following the First World War. However, the ies may be identified:(1) the tax yield during the post-1945 response by the building industry was com- initial years of tremendous growth was always one pletely different than the earlier effort. The absence year behind valuation; (2) the owner who bought his of a post-war recession and the general rise in income home after a tax collection period paid no taxes that created for developers a prosperous market which was year; (3) the provision of facilities for a totally new stabilized by FHA and veterans' loans. These condi- community at the outset required a budget equivalent tions produced the large-scale merchant builder who to that of a town eight to ten times its size; and (4) merged land purchase, site improvement, house con- the revenues from licenses and fees were severely re- struction, and merchandising in a single firm." This stricted due to monopolistic control of shopping areas. concentration of operational organization permitted Such handicaps, especially in a community lacking an greater efficiency and economy for the builder and industrial capacity, could not be adequately counter- gave him a unique opportunity. In the years immedi- balanced by subsidies from the builder, since he then ately following World War II, Park Forest, Illinois, was forced to cut back in other areas.25 and the Levittowns in New Jersey, New York, and Park Forest's development illustrates the need for Pennsylvania, presented alternative approaches to the a sound fiscal plan based on the provision of such problems of large-scale community development. basic facilities as utilities and schools. How to carry The construction of Park Forest, Illinois, was begun these basic services until sufficient revenues can be in1947 by American Community Builders. The provided remains a critical and so far unanswered development was supported by FHA mortgage insur- question. On the other hand, the enthusiastic citizen ance totaling $22.5 million and was projected as an participation in the affairs of Park Forest indicates eventual satellitecity,complete with commercial some of the potential inherent in the development of and recreational facilities, including a greenbelt, ade- such a community." quate public utilities, and a strong industrial base. Levittown, New Jersey, established in 1958, was Thefirsthousing unitstownhouseswere made the third of the subdivision developments constructed available on a rental basis, while later detached units and indirectly administered by its builders, Levitt were put up for sale. Four months after the first Brothers and Sons. The community was, in effect, an inhabitants moved into the development, a provisional effort to create a showplace which, through com- town government was elected, which soon opted to prehensive planning and provision of good public fa- incorporate the settlement as a village.Resident cilities, would overcome the difficulties of the previous cooperation and participation in the community at Levittowns constructed on Long Island (1947) and this stage was excellent. in Pennsylvania (1951). These drawbacks had includ- With the advent of local representative governed piecemeal construction caused by separate nego- ment, difficulties arose with public finances, public tiations with the several local governments involved, facilities and the local governmental structure. The resulting changes in the plan, and the attendant dis- village government found that in order to establish traction from building and administration, leading to and maintain public services,it required a budget serious omissions and inadequacies in satisfying resi- equivalent to that of a town many times its size. The dent needs." property tax was not adequate to cover the costs, and To avoid these problems, Levitt bought 80 percent subsidies from the developer were required. Further- of the land required in his master plan and kept op- more, the limitations of a developer-oriented local tions on the remaining sites. Levitt's acreage occupied government along with the multiplicity of overlapping most of one township. This large rural setting, com- local units complicated the resolution of these finan- bined with Levitt's personal philosophy, permitted cial and servicing problems. the company to dominate local politics and adminis- Some of these difficulties may be attributedto tration, as well as the construction of Levittown. The the inadequacies of the original plan. For example, quality and quantity of the township's public services schools and commercial facilities were not constructed were undoubtedly increased through this approach. until three years after initial occupancy. The attempt It prompted the establishment of a police department to attract any of the proposed industrial facilities and a board of health and the public operation of failed. These deficiencies may also be explained in such Levitt-financed facilities as water, sewage dis- terms of the developer's financial, legal, and political posal, and garbage removal. The township committee influence on local and county officials and his reluct- was expanded and a professional city manager ap- ance to share planning responsibility. The developer's pointed. The area's rural past was thrust aside and need to remain solvent while assuming the burden of an active suburban community emerged. However, initial construction prompted a downgrading of the the expansion process severely tested the Levitt ap- village's utilities system. Specifically, four basic rea- proach. For chiefly financial reasons, Levitt did not sons for the new community's early financial difficult- experiment with innovative plans, such as use of the

75 Garden City-Radburn principles, or share much of tracts of land have fostered such activity. Other the power he wielded directly or indirectly within the States having several new communities planned and community. developed include Florida,Illinois, Colorado, Ari- zona, and Virginia and Maryland in the Washington CURRENT NEW COMMUNITY metropolitan area. These States combined probably DEVELOPMENT account for almost one-half or more of all the new community development under way or planned in There has been a significant upsurge in the building the United States today. of planned new communities in America represent- The relationship between new community developing a pace of activity never before approached. Other ments and existing governments have taken a variety countries are ahead in the construction of new towns, of forms. Generally speaking, there has been very in the strict sense of self-contained, self-sufficient, in- little legislation enacted specifically to deal with the dependent cities, but in terms of those large-scale unique features of new community development. In planned developments which may be identified more California, planning, zoning, and land-use control broadly as new communities, none can challenge the relationships have generally been vested with the United States. county government. Special districts, however, have Estimates of the number of new communities vary, frequently been established to provide public facili- and it is difficult to verify or to keep abreast of all ties and amenities. Somewhat similar relationships ex- developments, since precise definition is difficult and ist in Florida. In the Washington metropolitan area, the very nature of large-scale land assembly depends where urban counties with very few independent in- upon secrecy to forestall speculation on tracts to be corporated municipalities surround the District of acquired and to avoid premature development on Columbia, governmental responsibilities have rested surrounding property. Estimates range from less than with the county, coupled with an emphasis on the use 30 to more than 250 projects which, depending upon of special assessments and deed covenants by private definitions and standards, could be designated as new developers and homeowners and renters associations communities. Regardless of the exact number inas a source of finance and control. In Illinois, a tra- volved, this represents an unprecedented level of ac- dition of incorporation of municipalities for providing tivity. services and planning and land-use control regulation Efforts to develop new communities have produced is reflected in the new community developments. a wide scope of arrangements in financing, land ac- A number of factors have combined to produce the quisition, developer organization, and relationships unprecedented interest in the building of new com- with local governments. They have been undertaken munities. The entry of a number of large corporations by a variety of developers, including: established de- into the home building and construction field either velopers and merchant builders seeking a wider scope as land developers, home builders, diversified confor their activities; financial and investment com- tractors, or investors has provided the corporate panies that have entered the construction fieldin structure and financing necessary for such undertak- search of new investment opportunities; large holders ings. Sustained population growth and prosperity, of land looking for a new marketing approach; banks, coupled with housing replacement needs and the long insurance companies and related institutions with ex- term effects of the constraints imposed on housing perience in mortgage banking and investment and during World War II, have produced the market. with such site location and construction projects as A number of other influences are noteworthy: (1) shopping centers, industrial parks, and apartment and the increasing shift of industrial expansion to subur- commercial buildings. Developers have also included ban areas outside of the. central cities and to locations large diversified corporations without previous direct away from major metropolitan concentrations; (2) involvement in construction or development, who the population movement from centralcities into have moved into the field for additional diversifica- suburbs and surrounding undeveloped countryside; tion, an expanded market for some of their prod- (3) the increasing market for second homes, many of ucts, or a new investment for their funds. In some which become year around residences; (4) the growth cases, separate corporate divisions or subsidiaries have of new urban areas; (5) the continued concern over been established to handle the direct community de- the type of urban pattern that is emerging in the velopment activities. large metropolitan concentrations and the accompa- The majority of new community developments have nying tendency to seek the design features, community been undertaken inCalifornia, where population characteristics, and amenities available in planned growth and the availability of large undeveloped new communities.

76 THE EXTENT OF NEW COMMUNITY DEVELOP- and Reston, Virginia, in the Washington metropolitan MENT area. The exact extent of new community development DESIGN AND LOCATION CHARACTERISTICS OF across the country today is extremely difficult to estab- NEW COMMUNITIES lish. A list could be expandedor contracted depending upon the criteria applied to distinguishnew com- There is a wide variety of styles andtypes in the munities from other large-scale developments. More- new communities being built across the nation today. over, information about developments is a carefully Some have little except their size and thepresence of guarded secret during the initial land acquisition and shopping centers to distinguish them fromany large preliminary planning stages and then frequently be- subdivision consisting of single family houseson indi- comes heavily tinged with a promotional tone as soon vidual lots with separate driveways andgarages lining as the time arrives for public announcement. Using curving streets and cul desacs. But most combine the criteria of at least one thousandacres planned for single family, individual lot houses withtownhouses a minimum three to four thousand residents and suffi- and garden and high-riseapartments. Extensive use cient supporting facilities, activities, anduses to con- is generally made ofopen spaces, both as common stitute a complete community but not necessarily in- urban space around which housesor apartments are cluding industry, the number of currentnew com- grouped, and communityopen space separating types munities has been estimated to be in the vicinity of of housing from other landuses. Clustering provisions 200 to 250.28 Other estimates, applying stricter criteria are also common, allowing smaller lotsor higher den- have ranged as low as 15or 20. At the present time, sities in townhouses andapartments in exchange for it is doubtful if new communities actually incorporat- common open space. Greater flexibility in the rela- ing significant residential, commercial, and industrial tionship of different types of landusesbased on features exceed 50 projects in all of the United States. special planned unit development, floatingzones, and Preliminary returns froma recently completed survey other special zoning provisionsis anotherfairly usual support this generalization. feature. A survey conducted by Jeanne M. Davis,an urban The net result of these special characteristicsof new planner with the Natural Resources Economics Divi- communities is a distinct departure fromthe typical sion of the U.S. Department of Agriculture identified street layout and sharply separated single family, 43 new towns as defined for the study. Countyex- multi-family, and retail-commercialdevelopment pat- tension agents in each of the nation's countieswere terns. What emerges is a more dynamic andharmoni- asked to provide data for allnew town planned com- ous relationship among the elements of the urban munities, subdivisionor industrial developments of scene, as exemplified by: a general pattern of curving 950 acres or larger within their counties. Newtowns streets; superblocks with houses, townhouses, and were defined as developments which include provision apartments clustered around commonopen space; for some employment in industrial plantsor offices; and varying land densities frequently separated educational, recreational, and commercial facilities; by and a variety of housing types. The open space and parks. Shopping centers oftenare de- new towns identi- signed around a core of buildings, malls, and fied constituted a littlemore than 11 percent of the walkways surrounded by parking space with circumferen- total 376 developments for which constructionwas re- tial drives. Industrial parks ported as having been commenced during1960-1967 may have a similar design, on nearly 1.5 million acres of land. Theacreage in- with encircling through-trafficpatterns. corporated in thenew towns constituted 21 percent Both as an urban design feature andas a method of the total reportedacreage. of incorporating efficient and economic stageddevel- An illustrative listing of 52new community projects opment, the larger new communities generally favor which were underway in 18 States by 1968is present- the neighborhood and village approach, withresi- ed in Table 41. Although the listing is byno means dences, schools, and churches grouped arounda small inclusive, efforts have been madeto make it as com- commercial and activity center. The villages, inturn, plete as possible. The projectsare clustered in areas arc oriented around a larger town center, which is of rapid urban growth and in thewarm weather the major commercial and retail focus for thenew Statesthe Washington metropolitanarea, Florida community. and along the Gulf Coast, Colorado, Arizona,and New Park Forest, Illinois, is an early example of acen- Mexico, and most notably, California. In numerical tral core shopping center supplemented by smaller terms new community development is uniquelya Cali- neighborhood centers. A separate industrial park with fornia phenomenoneven though two of the most streets and utilities has also been provided in Litchfield widely publicized examplesare Columbia, Maryland, Park, Arizona; Columbia, Maryland; and Reston,

77 Table 41New Community Developments, March 1968

Projected Projected Housing New communities Location Acres housing population units rented units or sold

Arizona: Litchfield Park Maricopa Cou nty_ 13, 000 22, 000 75, 000 150 Lake Havasu City Mohave County 13, 000 50, 000 600 Tucson Green Valley Pima County 10, 000 25, 000 500 Sun City I Maricopa County 14, 000 75, 000 Arkansas: Maumelle_ Pulaski County 5, 300 60, 000 California: El Dorado Hills Sacramento County 9, 800 20, 000 75, 000 400 Foster City San Mateo County_ 2, 700 11, 000 35, 000 9, 000 Rossmoor Leisure World I 2 Contra Costa County 2, 100 10, 000 20, 000 Valencia Los Angeles County 4, 300 30, 000 360 Diamond Bar . do 8, 000 20, 000 75, 000 2, 500 Porter Ranch_ do 4, 100 12, 000 43, 000 Mountain Park_ _do 7,150 - 60, 000 Crummer Ranch Los Angeles and Ventura Cou nties_ 6, 300 - 50, 000 Westlake Village do II, 500 100, 000 Conejo Village Ventura County 11, 000 87, 000 I rvine Ranch Orange County 33, 000 300, 000 1 , 000. 3 88, 000 Rossmoor Leisure World I do 2,465 18, 000 30, 000 6, 000 Laguna Niguel _do_ 7,100 90, 000 Mission Viejo do_ 11, 000 50, 000 $ 53, 000 San Carlos= San Diego County 5, 000 9, 000 35, 000 2, 000 Rancho Bernardo do 5, 400 11, 000 33, 000 University City 2 do 13, 000 3, 000 California City Kern County 101,120 600, 000 Rancho California Riverside County 87, 000 400, 000 Colorado: Montbelle 2 Denver 7, 000 Colorado City Pueblo County 5, 000 30, 000 Pikes Peak Park 2 El Paso County 4, 300 30, 000 North Glen Adams County 2, 528 20, 000 6, 100 Delaware: Mill Creek North of Wilmington 1, 300 5, 000 13, 000 Florida: Miami Lakes Dade County 3,000 6, 000 25, 000 Canaveral Princeton Brevard County 2, 500 - 43, 000 Port Charlotte I Charlotte County 92, 700 100, 000 6, 000 Palm Beach Lakes Palm Beach County 7, 000 25, 000 70, 000 Lehigh Acres Lee County 60, 000 - 80, 000 6, OITO Deltona Volusia County 15, 000 41, 000 75, 000 100 Coral Springs Broward Cou nty_ 10, 400 - 60, 000 Spring Hill Hernando County 17, 000 50, 000 100 Georgia: Chapel! Hill Atlanta 1, 100 2, 900 12, 000 Illinois: Elk Grove Cook County 3, 000 10, 000 35, 000 Oak Brook Du Page County 3,600 25, 000 Kentucky: Oxmoor West of Louisville I, 000 15, 000 Louisiana: New Orleans East East of New Orleans 32, 000 100, 000 930 Maryland: Columbia Howard County 14, 100 29, 000 110, 000 300 Joppatowne Harford County 1, 300 3, 000 10, 000 I, 600 Northampton Prince George% County 2, 200 8, 000 25, 000 -- Minnesota: Jonathan Hennepin County 2, 200 - 50, 000 Massachusetts: New Seabury I . _ Barnstable County 3, 000 3, 750 16, 000 100 New Mexico: Paradise Hills.. West of Albuquerque 8, 500 60, 000 - New York : Sterling Forest Orange County_ 20, 500 - - Oregon: Somerset West West of Portland 6, 600 12, 000 40, 000 Texas: Clear Lake City South of Houston 15, 000 40, 000 150, 000 Horizon City El Paso County 65, 000 100, 000 -- Virginia: Reston_ Fairfax County 6, 750 24, 885 75, 000 I, 000

- Information not available_ Source: "House and Home," February 1964, p. 125, as modified by information from : I Primarily a retirement community. Edward P. Eichler and Marshall Kaplan, "The Community Builders" (Berkeley and 2 Partially or wholly annexed to an adjacent municipality. Los Angeles: University of California Press, 1967). Appendix I, p. 185; unpublished 3 Total. survey conducted by Jeanne M. Davis, Economic Research Service,u.s_Department of Agriculture; and unpublished information from the Land and Facilities Development Administration, U.S. Department of Housing and Urban Development. Virginia. The Irvine Ranch Properties are being de- ect EPCOT (Experimental Prototype Community of veloped on the neighborhood village and t,-,wn center Tomorrow), to be located near Orlando, Florida, will pattern. Litchfield Park is planned to go one step be used to introduce, test, and demonstrate new ideas further by combining villages into communities, each and technologies. having a high school and a community commercial A number of the new communities are located be- center. side lakes or other bodies of water. Both Columbia Some of the new communities arespecifically and Reston incorporate manmade lakes. Lake Havasu identified by their developers as providingan oppor- City is located on Havasu Lake, a reservoir on the tunityfor experimentation. Westinghouse Electric Colorado River formed by Parker Dam. El Dorado Corporation, for example, has indicated that itsnew Hills, California, north of Sacramento, includes a por- tomi---Coral Springs, near Fort Lauderdale, Florida tion fronting on Lake Folsom. Clear Lake City, Texas, --will serve as an "urban laboratory" where thecom- just south of Houston, includes a portion fronting on pany will develop and test products for the construc- a lake. New communities of the future will probably tion market. Walt Disney Productions', Inc.new proj- stress water sites.

78 Another major geographic characteristic of the new parks to provide employment opportunities. As a re- communities is the proximity of an expressway inter- sult, special arrangements may be used. The anticipa- change. The interstate system and State and local tory building of shopping centers and industrial parks expressway decisions are particularly significant influ- may necessarily become part of the land development ences in the location of new communities. Columbia, activity in an effort to sustain the momentum required Maryland, is strategically located on highways run- to keep the whole project moving. The short-term ning between Baltimore and Washington. Valencia, construction financing then becomes merged with the Janss/Conejo, Irvine, and Mission Viejothe four land acquisition and development financing. large new communities in the Los Angeles areaare Investment in land acquisition and development is all transversed by, bordered by, or closely adjacent to the area that has witnessed major changes. A new a major freeway. However, very few of the new com- breed of community builder has emerged, including munities have an internal mass transportation facility large homebuilding and construction firms, traditional or are located on a major regular mass transit line. lenders and investors in land, and corporate investors Park Forest, Illinois, is unique in having a regularly whose major interest previously had been in entirely scheduled bus line with several different routes run- different fields.29 The new community builders can ning through the community, and in being located on be conveniently classified under five headings :(1) the Illinois Central Railroad suburban service. Co- the traditional developer-builder; (2) national corpo- lumbia, Maryland, has an internal mini-bus service rations with cash to invest; (3) a separate corporate operating on special roadways and connecting with group made up of the oil industry; (4) large land highway buses on the Baltimore to Washington Ex- owners; and (5) mortgage lenders seeking equity in- pressway. In general, however, the new communities vestments. The categories obviously overlap and the are automobile and expressway oriented. actual management initiative may vary in a given development as time goes on and as different investors THE NEW ENTREPRENEURS participate in management decisions. One of the factors influencing the increased activity in the planning and development of large new BUILDER-DEVELOPERS communities has been the entry of large investors and Some of the first planned communities and planned developers into the field. They have invested primari- neighborhoods in this century were products of real ly in overall land acquisition and its development. On estate developers and builders. The earliest of the the other hand, the traditional pattern of financing post-war new communities, Park Forest, Illinois, was still generally prevails for the purchase of individual constructedbythedeveloper,PhillipKlutznick, sites and the construction of homes and commercial through American Community Builders, which com- and industrial buildings. bined the responsibility of land acquisition, planning, The community developer usually sells developed house and shopping center design, and building and land to individual builders who then proceed to build sales (through a subsidiary). The organization and models and to sell houses on specific lots, with per- management patterns of this project illustrate two haps some speculative building in anticipation of sales characteristics that distinguish approaches to new to keep a steady pace of construction. The developer community development. First, the corporation was may also sell land to builders, real estate firms, and new to the building and construction field and it did other investors seeking sites for income property, as well as to industrial, research, and commercial enter- not undertake further projects. It can therefore be prises locating in the new community. A community identified as a nonexpansionist new community de- developer may himself decide to engage in herne veloper rather than the expansionist type, which un- building. In all of these circumstances, conventional dertakes a number of different developments over a sources of construction loans and permanent mort- period of time. Second, the Park Forest developer gage financing are used in a manner not basically dif- built on recently assembled land. This action may be ferent from that followed by any large builder. distinguished from a number of recent developments New community developers frequently retain some where the developer has owned the land over a con- sites, especially shopping centers and apartments, for siderable period of time and uses a new community their own investment income purposes. For the fi- approach to develop and market it. nancing of such construction, traditional practices Some other contemporary new community builders generally prevail. Yet, the community developer, par- are companies that were previouslyengaged in large- ticularly on more distant sites,is under additional scale development, construction, homebuilding, and pressure to build shopping centers for the convenience subdivision activities. Rossmoor Corporation is one of homebuyers and renters and to construct industrial of the nation's largest homebuilding corporations.

79 Through the Leisure World Foundation, an autono- Both Westinghouse and General Electric havere- mous, nonprofit management and sales corporation, cently become involved in new community develop- five Leisure World retirement communities have been ment. Westinghouse has bought an interest in Coral built. The pattern of development epitomizes the ex- RidgeProperties,Inc.,thedevelopers ofCoral pansionist approach in the new community field. Springs,Florida. General Electric has announced T. Jack Foster and Sons, the developers of Foster plans for building a community of 30,000 units (the City, California, and Del E. Webb Company, the de- site has yet to be announced)over a period of 15 to veloper of Sun City, Arizona, and initially of Clear 20 years to house 100,000 persons. In bothcases, seve- Lake City, Texas, probably also qualify as expansion- ral motives would appear to have triggered this in- ist inclined developers of new communitiejs. As of the vestment decision. Such developments can stimulate moment, Lindsay and Company, the builder of El sales as well as provide an opportunity to develop and Dorado Hills near Sacramento, California, also prob- test new products. Westinghouse refersto Coral ably falls under the nonexpansionist classification. Springs as "an urban living laboratory" which will James Rouse, the developer of Columbia, Mary- innovate in home products and systems. General Elec- land, is one of a limited number of developers who tric, through a Community Systems Development Di- has been quite conscious of achieving a relationship vision will undertake new 'community projects "to between social and physical planning. Rouse's effort serve as showpieces for the technological and other to mold these objectives into a planning process breakthroughs" it hopes to achieve. through the formation of a 14-member consultant As part of a general expansionprogram, Boise- committee is particularly noteworthy. The committee Cascade, a lumber and timber productscompany, has included persons from many occupations and aca- entered home construction through the purchase of demic disciplines, ranging from city managers to pub- several large homebuilding companies. With theac- lic health and education specialists, from economists quisition of Perma-Built Enterprises,a San Francisco and public administrators to sociologists and psycholo- Bay Area construction firm, thecompany also received gists. 4,800 acres of land in Calaveras County, California, Other developers with a construction and home- giving it an area to test the market for second homeor building background are more difficult to categorize resort residences. More recently, through a stockex- as expansionist or nonexpansionist oriented in the new change transaction it acquired U.S. Land Corporation, community field. These include Sproul Homes, the the developers of lake resort communitiesnear Cleve- developer of Pikes Peak near Colorado Springs, Colo- land, Ohio; Chicago, Illinois; Gary, Indiana; Kansas rado; Maxon Construction Company, the builder of City, Missouri; San Francisco, California; and Fred- Tucson Green Valley, Arizona; and Crawford Cor- ericksburg, Virginia. Although initially developedas poration, the developer of Crofton in Ann Arundel resort communities, those close to cities and industry County, Maryland. will probably assume the characteristics of year-around Because of the large initial investment in land and communities. These areas providea further oppor- the difficulty of financing the capital requirements tunity for Boise-Cascade to test-market homebuilding during a long holding period, there are a growing supplies. In another recent stock exchangetransac- number of land owner-builder joint ventures, suchas tion. the International Telephone and Telegraph the arrangement between Humble Oil Company, the Corporation purchased Levitt and Sons,one of the owner of land originally purchased as an industrial nation's largest and the most successful homebuilders. site, and Del E. Webb Company, the initial builder This was part of a continuing expansion and diversi- of Clear Lake City, Texas. fication program on the part of IT&T, and presented LARGE NATIONAL CORPOR ATIONS WITH an opportunity for Levitt and Sons to expand its oper- AVAILABLE CASH ations and pursue a goal of creating independent self- sufficient"Primary Employment Towns,"which Early large corporate participation in the financing would have enough business and industry to support of new community construction was basically directed toward a collective effort to stimulate homebuilding as many as 250,000 residents. during a recession and thereby to increase product Market conditions, coupled with Federal regulatory demand. A number of examples of this type of invest- programs, may also influence the investment policies ment occurred during the 1930's." The present entry of large corporations entering the homebuilding and of large corporations into the financing of community new community development field. For example, in development beyond the construction stageisstill the aluminum industry, a situation prevails which is motivated basically by a desire for product sales stimu- characterized by over-capacity and a limited number lation, but it also is a response to such other factors of major processors. Profits cannot be plowed back as antitrust regulation and tax laws. into new capacity and antitrust considerations inhibit

80 mergers or further investments in the aluminum income of an amount equivalent to 27V2 percent of dustry. Vertical integration then has strong appeal. gross income, and the treatment of intangible drilling Hopefully, a markct can bc created for aluminum costssuch as labor and services withno salvage products in homebuilding and other urban develop- valuewhich can be deducted in full against income ment, thereby helping to combat over-capacity in thc for five years from the time theyare incurred, com- industiy while at the same timc avoiding combinations bine to produce a particularly advantageous position. that would create antitrust problems. Kaiser Alumi- The experience of Sunset International Petroleum. num thus has recently formed a land development now Sunasco, a full-line real estate corporation, il- subsidiary, Westwood Properties. lustrates both the impact of taxation provisions and A somewhat analogous situation exists in thece- the mixed motives involved in investment decisions. ment industry. The recent action of the American Sunset International Petroleum is the developer of ,Cement Company backing onc of the Janss projccts three new communities in CaliforniaSunset City in represents action similar to that taken by Kaiser Sacramento County; San Marin in Marin County; Aluminum. Although thc specific project in which and San Carlos in San Diego County. Theowner of the American Cement Company investedSnowmass- Eagle Oil Company, which operateda chain of sta- at-Aspenis a mountain resort development, Janss tions, was a real estate developeras %yell. Eagle Oil is deeply engaged in ncw community development became Sunset InternationalPetroleum Company at Conejo, located in Ventura County north of Los when it entered the drilling phase of oil production. Angeles. The new firm acquireda number of builders and di- The Pennsylvania Railroad's recent purchase of versified into real estate, to the extent thatover 80 Macco Realty, the developer of the Porter Ranch new percent of its earnings were derived from thatsource. community in Los Angeles County and holder of over More recently, market conditions have forcedSunasco 100,000 acres of land in southern California, is an- to divest itself of its building operations andconcen- other example of a corporation seeking diversification trate on othcr interests. into areas clearly unrelated to its basic endeavors. The mixed motives behind entry into thenew com- "In this sense land is thc investment of whichmonop- munity investment field by oil corporations is further olistic control by one firm appears out of theques- illustrated by the cases of Gulf Oil and HumbleOil. tion." "' The Pennsylvania Railroad cntered thenew Gulf Oil has beenone of the large investors in Reston, community development field with funds whichwere Virginia, and in late 1967 tookover control of the received from the forced sale under the antitrust laws development through a subsidiary. The initialagree- of thc Norfolk and Wcstern Railroad. Ina similar ment stipulated that Gulf would have first optionon transaction, Oceanic Properties, a subsidiary of Castle filling station sites throughout Reston. Anotherex- and Cooke, purchased a potential new town site south ample of the product-sales stimulation motiveis pro- of San Jose shortly after the parentcompany had to vided by Humble Oil Company,a subsidiary of Stan- sell Maxon Navigation Company because of antitrust dard Oil of New Jersey, and the primarydeveloper limitations. of Clear Lakc City, Texas,ncar Houston. The com- THE OIL INDUSTRY CASE pany's most tangible reason for entering thenew community development fieldwas its ownership of 15,000 The oil industry represents an almost uniqueex- acres of land originally intended for industrialexpan- ample of corporations havingexcess funds to invest sion. Other factors included the availabilityof ready because of favorable profit position and special tax cash, the tax position ofan oil-drilling corporation, treatment arising from depletion allowances. Since and the possibility of retail filling station product- World War II, income tax liabilities have become sales stimulation. large enough to significantly influence investment decisions, particularly in real estate. Such tax considcr- THE LAND OWNERS ations as depletion and depreciation allowances, prop- Because of the difficulty of assembling, acquiring. erty tax and interest deductions, and capital gainspro- visions, have all served to minimize the ultimate and financing huge tracts of land, large-scalecorpo- impact of what otherwise would be considered high rate landowners have become an increasingly signifi- risk ventures. The difference between income and cant factor in new community development. In sonic capital gains rates is quite significant, and thiscan cases, the landholding itself has become the basis for have a marked effect on real estate investment and a corporate ently into the field. In others, an interest- sale policies. ed investor has acquired homebuilding or real estate Nowhere is the impact of tax policiesmore clearly firms having large landholdings. discernible than in the oil industiy. The depletion al- The "land developer-4-accident," i.e., a corpora- ance, which permits deduction from taxable in- tion in an unrelated field which finds itself with a

310 -335 81 large enough holding fornew community develop- increased the size of its loan. Yet, in thecase of ment, constitutes one type of landowner-developer. Columbia, it subsequently becamemore than an in- Goodyear's sponsorship of thenew community at vestor. Connecticut General received the rightto se- Litchfield Park, Arizona, isa good example of this lect three out of the five members of thenew firm's type of landowner-developer. A combination of cir- board of directors and it helda stock interest in the cumstances may prompt such a corporation to under- corporation. take development. Not the least of the influencingfac- tors is the burden of rising property taxesaccompany- THE INDEPENDENT ENTREPRENEUR AS ing the development of the land surrounding the DEVELOPER holding and the corresponding increase in property It is difficult to classify Robert Simon andSimon values. A controversy is developing in several States Enterprisesthe initiator of the developmentof Res- as to the desirability of "preferential farmlandassess- ton, Virginia. While a number of the foregoingmo- ments" as presently authorized, because theycan serve tives for entering thenew community development not only to protect farmland from being forced into field were influential, Simon doesnot fit neatly into premature development but also to provide a tax any of the classifications. He came froma family of haven while land is being assembled and held for considerable wealth having experience speculative purposes. in real estate, particularly the management of large officebuildings. Another category of entrepreneur is the long.term Simon had been involved in shoppingcenter develop- landholder or "land company," which has methodi- ment, but not directly in its construction. In 1960, cally "ripened" land overa period of years, and for his firm realized between three and whom a new community development four million dol- represents a lars in capital gains from the sale ofCarnegie Hall. final payoff. The Irvine Company, with its extensive Since the capital gains tax could bepostponed only holdings south of Los Angeles,represents the leading if replacement propertywere purchased, part of this example of this type. Afteryears of profitable ranch- money was used as the initial downpaymenton 6,000 ing, citrus, and extractive operations, it isnow enter- acres in Fairfax County. Simon then took personal ing into the community development fieldthrough charge of the planning and original its South Irvine Ranch Planning Area. Other development of current Reston. Management control has sincebeen assumed examples include the Janss/Conejo development situ- by Gulf Oil,one of the large initial investors. ated on 10,000 acres which had been held by the While the factors influencing firm since 1911; the Mission Viejo Company develop- new community builders to enter the field are complex and varied,one fea- ment on a part of the 50,000 acre O'Neil Ranch hold- ture is common to them all: the profit motive. This ings; and the Valencia development by the Newhall objective necessarily conditionsmany decisions that Land Company subsidiaryon 4,300 acres of its 40,000 must be made by the new community developers, and acre holdings. it also underscores the fact that suchprojects are not MORTGAGE LENDERS AS EQUITY INVESTORS being sponsored by social visionaries. Anotherfairly common concern is with coordinated and predictable Banks, insurance companies, and savings andloan urban design and the provision ofamenities. This associations, the traditional sources of mortgage loans, sometimes results in higher densitycluster develop- occasionally have assumed, in effect, an equity investments with an attendant saving of investmentfor ment role. In these cases, the mortgage terms have both public and private facilities withoutsacrificing included provisions dealing with profit participation open space. It may also lead to relatively large lot de- and options to purchase interests.in the development. velopments, which under other circumstances would These provisions have given the lendinginstitution a be criticized as "sprawl." In general, however,the de- voice in management decisions. Whilesuch financial cisions of private community builders have produced institutions have traditionally been limitedby law and custom in making loans available for the purchase of a better design pattern of urban development than land and site improvements, theyare increasingly would have occurred througha series oc unrelated entering this field. Frequently, the loanfor land pur. small tract subdivisions. chase is extended and becomes, ineffect, part of the long-term loans for site development PLANNING FOR NEW COMMUNITY and improve. LOCATION ments. Thus, the security for the loans ultimatelyde- pends on the project'ssuccess rather than upon ap- No nationwide planning has been done to develop praised value of the land itself.For example, Con- a new community policy in the United States. The necticut General Life InsuranceCompany was one National Resources Planning Board undertook pre- of the large lenders both for Coral Ridge,Florida, and liminary studies in the thirties which included confor Columbia, Maryland. In bothcases, the company sideration of planned communities, but the Board 82 went out of existence before there was an opportunity At both the State and the areawide (intercounty, to go beyond the exploratory stage. Although several metropolitan, or other regional)levels, the limited planned new communities have been built in the planning that has occurred has been primarily plan- United States, until recently therewere no State, area- ning for new communities. It has consisted of facili- wide, or regional plans which gave consideration to tating the coordination ofprograms and providing a new community approach and attempted to identify necessary data and criteria to assist in assessing the appropriate locations for such large-scale develop- feasibility of new communities generally and ofspe- ments. cific location decisions. Sucha planning process provides analytical and statistical reports, policypropos- SURVEY OF STATE AND METROPOLITAN als, and mapped presentation of information. PLANNING AGENCIESSUMMARY At the State level, planning is generally there- To determine the extent of present day planning sponsibility of a State planning agency. However, in for new communities, the Advisory Commission, with two States reporting planning for new communities, the aid of the American Institute of Planners, surveyed the overall planning programwas a joint, interdepart- nearly 300 State and local areawide planning agencies. mental effort staffed by the planningagency. Similar- These agencies were requested to indicate the extent to ly, the metropolitan and areavvide planning reported which their State, regional, or metropolitan plans in- was usually the responsibility of a planning agency cluded consideration of new communities and their but in some areas it was a joint undertaking partici- possible future location. pated in by several state and local agencies. Out of 232 questionnaires mailed to areawide The planning for new communities usually begins (metropolitan) planning agencies, 137 replieswere as part of an overall planning effort and involves a received. Ninety-eight indicated they had notcon- number of background studies done by the planning sidered or developed plans which included provision agency staff and by consultants. The next step is for new communities. Only 13 metropolitanarea usually the presentation of development policy alter- agencies stated that they had actually developed such natives which are given wide dissemination in pub- plans. Eighty percent of the responding State plan- lished reports. The format most frequently usedpre- ning agencies indicated that plans includingnew com- sents six or eight possible development patterns with munities had not been either developedor considered. an analysis of the implications and advantages and Only two States have development policies incorpo- disadvantages of each. The alternatives generally in- rating specific consideration ofnew communities. clude : a simple projection of present trends; several Table 42 briefly summarizes all responses from State fairly clear-cut formssuch asa concentrated single and areawide planning agencies. urban center, multiple centers grouped around acen- tral city or several major central cities, development Table 42Survey Responses on Planning for New Communities, 1967 concentrated along radial corridors leading out from the central city, or a generally dispersed pattern with State Metropolitan planned multi-purpose centers to give focus;anda Extent of planning for new communities planning area planning agencies agencies combination of the most desirable features of the more rigidly defined forms. Plans include provision for new communities 2 13 Plans being developed or under consideration include Following a fairly extended period of review, dis- provision for new communities 7 26 No plans developed include provision for new communi- cussion, hearings, and consideration, a development ties 28 98 policy and plan consisting of both text anda map is Total responses 36 137 approved. The urban development component, of Total questionnaires distributed 64 232 which new communities would be a part, is included along with transportation, natural resource,open Source: ACIII/AIP Survey of State and Metropolitan Area Planning Agencies, April 1967, supplemented by later information. space, recreation, economic and other appropriate components. There are two major types of new community The other major type of plans are the more de- planning; these differ in purpose, scale, and detail. tailed community general or comprehensive plans and The first is the planning and development ofa policy specific site development plansin short the planning for new communities, including general location cri- of new communities. These plans are usually prepared teria and identification of feasible sites. The second by the prospective new community developer and his type is the actual planning of individual new com- consultants working more or less closely with the ap- munities, both through the development ofa com- propriate public jurisdiction, usually the county. munity general plan and through the preparation of County planning may include more general policy specific site plans for individual portions of thecorn- and development plans as well as detailed community nmnity as construction goes forward. general plans. A county general plan, for example,

83 may identify potential sites for urban development sprawl, strengthen the economic base of depressed which could take the form of new communities. When areas, and provide a wider range of relocation housing new communities are planned and developed, the to facilitate urban renewal activities." It suggests the county is typically the responsible public jurisdiction use of area or regional agencies, which could be mu- during the initial stages. In these circumstances, indi- nicipal corporations, to assist in the development of vidual site plans are subject to the county approval new communities. The plan also proposes a State pub- procedure as the new community is built. Under ex- lic benefit corporation administering a regional devel- isting law in most States, if the new community is opment fund to channel private investment into financ- incorporated, the new jurisdiction then assumes re- ing the programs of the area or regional agencies. sponsibility for the community general plan and for In Connecticut, the Interregional Planning Pro- site plan approvals. In several counties, new com- gram is a joint venture of the Development Commis- munity general plans when approved have been sion, the Department of Agriculture and Natural Re- adopted as amendments to the county-wide general sources, the Department of Finance Control, and the plan thus facilitating integration into countywide Highway Department. A series of reports culminating planning. in the development of four alternative patterns of In concluding this brief summary discussion on the urban growth for the State have been produced.33 types of planning process out of which plans for new Preceding the report phase, 16 basic inventory studies communities could emerge, it should be made clear were undertaken in cooperation with other State that examples of the process as described are limited, agencies and regional planning agencies. Theap- particularly at the State and county level. Further- proach, which emphasizes communities witha high more, the instances in which specific new community degree of self-sufficiency, would accommodatenew components have been included in areawide plans are community development. The Connecticutprogram extremely limited and in only a few cases have the is now in a plan selection and implementation phase plans yet reached the final approval stage. The actual out of which a specific development concept and de- building of new communities has generally overtaken velopment plan for the State will emerge. the public planning for them. The contribution of In New Jersey, the Division of State and Regional such planning has often been to react to development Planning in the Department of Community Affairs rather than guide and influence it. As a result, the has developed a Horizon Concept Planas part of its necessary continuing relationships among planning, State comprehensive planning program. The report policy making, and land-use and development guid- considers several land-use development alternatives ance and regulation have been tenuous at best. grouped into three basic categories.34 It provides a number of ideas which could become State policy in EXAMPLES OF PLANNING FOR NEW the future. The plan which represents a composite of COMMUNITIES many of the development alternatives within the The instances of planning for new communities three categories, primarily follows a multi-centersap- reported in the ACIR/AIP Survey of State and Met- proach. It recommends that growth be channeled into ropolitan Planning Agencies, April 1967, provide in- existing developed areas rather than be permittedto sights into the state of the art, its potentials, and its spread out haphazardly across the State. Thenew present limitations. In the following discussion, the towns in the plan are primarily major extensions of planning process and the plans being developed as existing development centers but two relatively large reported by State, intercounty, metropolitan area, and undeveloped areas are suggested wherenew towns county planning agencies are briefly summarized. could be created from scratch. The general themes of State Efforts. A New York State report, issued in the policies related to the plan include..."the re- 1964 by the Office for Regional Development (since constructiOn ofour cities in a manner which would merged into the Office of Planning Coordination), correct the faults of urban living; the encouragement presents a plan and policy for the future development of corridor andnew town developments to provide of both urban and rural areas of the State.32 It is essen- medium density environments, varying community tially a policies plan, combining a text and sketch map sizes, and prevention of extensive sprawl;...the presentation. It proposes a regional development ap- maintaining of open development including agricul- proach to encourage local and individual initiative and tural areas; the timing or strategy necessary to imbalance urban and rural areas. Regarding new complement a variety of living environment; the active munities specifically, it proposes a study to assess the encouragement of a wide choice of living environ- applicability of such an approach "as a means to create ments for all income levels..." or expand communities to accommodate population State planning programs in Missouri and Rhode growth and to reduce the adverse effects of urban Island also include consideration ofnew communities.

84 Under the Rhode Island statewide Comprehensive munity approach to urban development.37 Studies of Transportation and Land-Use Planning Program, multi-purposecommercial,industrial, multi-family participated in by a number of State and local de- residential, and institutional centers were undertaken, partments and agencies, a series of five alternative using market analysis techniques. Originally such land-use plans have been developed to present alter- centers were viewed as focal points for a series of native sets of policies which might guide development planned metro-towns but the focuswas subsequently in the State." Two of the alternative land-use plans shifted to provide applications forany form of re- would lend themselves to new community develop- gional land development. In its plan alternatives, the ment. One would concentrate anticipated future de- Council presented two major approaches." Under velopment in urban communities located along the one, measures such as open space allocation, multi- interstate route encircling the present urban core of purpose town centers, and coordinated utilities and the State. Some of the communities might be expand- transportation systems would be used to provide pated existing centers. Most of the new or expanded tern and structure in guiding development. The sec- communities would form contiguous extensions of the ond alternative encouraged metro-towns, and calls central area but would be more compactly and infor a more structured approach andmore active and tensively developed than if they were simply conven- aggressive participation by public agencies. The "Sug- tional outward expansions of the core. The other al- gested General Development Plan/Baltimore Region" ternative contemplates development further from the published early in 1967 more nearly reflects the former existing core providing a real separation between new approach but acknowledges that towncenters provide communities and an expanded urban center. A report a focus both for existing communities and urban de- prepared by the Missouri Office of State and Regional velopment and for possiblenew communities in un- Planning and Community Development (now the developed areas. Department of Community Affairs) suggests the de- In the Washington Metropolitan Area, theNational velopment of new towns through a State Land Ac- Capitol Planning Commission and the NationalCap- quisition, Finance, and Development Commission uti- itol' Regional Planning Council in their policiesplan lizing revenue bond financing coupled with eminent and development guide 3° placed considerableem- domain.36 phasis on new towns distributed,along with existing Metropolitan and Other Regional. The most ex- cities, in radial growth corridorsseparated by open tensive consideration of new communities in planning space. Regional centers are viewed as supporting this for future urban development has been that under- pattern of urban development by servingas cores takenintheWashington-Baltimore metropolitan for corridor cities,new towns, and other urban devel- areas. Both the Regional Planning Council in Balti- opment in the region. The development guidepro- more and the National Capitol Regional Planning poses an interstate compact agency organizedto carry Council (whose function has now been takenover by out its programs through four related agencies:the the Washington Council of Governments) in the Wash- Metropolitan Fiscal Agency,to provide financing of ington metropolitan area for the past decade have regional development projectsundertaken by the included specific new community development ele- otheragencies;theMetropolitanDevelopment ments in planning for their respective areas. Agency, to build regional facilitiesnot provided by The Baltimore Regional Council, after extensive existing local, State,or Federal governments; the background study, developed approaches emphasizing New Towns Corporations,to undertake the actual de- new community "metro-towns" and multi-purpose velopment ofnew towns including the acquisition of town centers. In their suggested general development land and development rights andthe regulation and plan for the Baltimore region, they emphasizetown enforcement of development regulations;and the Na- centers to serve as concentrated focal points for urban tionalCapitolRegional Transportation Planning development, some of which will be expansions of Board, to coordinate andprogram regional transpor- existing communities and some the development of tation facilities by the developmentagencies. The new urban concentrations and communities. For the Maryland-National Capitol Park andPlanning Com- Washington area, on the other hand muchmore em- mission plan and toa somewhat lesser extent the plan phasis has been placed specifically onnew towns along prepared by the Northern VirginiaRegional Planning with the expansion of selected existing communities and Economic Development Commissionincludes the into "corridor cities." new community focus of the metropolitan-wide plan.4° The Baltimore Regional Planning Council devoted Several other metropolitanarea planning agencies considerable attention to a "metro-town"new corn- have produced development alternativesor suggested

85 developmental guides which emphasize new communi- County Involvement. Counties are involved in ties and multi-purpose town centers in varying appli- planning new community development in two major cations and relationships. The Joint Program, a Fed- ways. First, county general plans provide the final and eral-State-local interagency land-use and transporta- most detailed level of planning for the location of new tion planning program for the Minneapolis-St. Paul communities. Secondly, the county istypically the Twin Cities metropolitan area, in its presentation of jurisdiction responsible for approving a community alternatives stresses the significance of "centers of em- general plan, site development plans, and subdivision ployment activity," transportation facilities, and open plats for unincorporated new community development space in shaping the development of the region.41 within its borders. On occasion, these two latter aspects Emphasis is given to the encouragement of centers may be brought together when a county approves a to produce a pattern of constellation cities. While new community general plan and then takes action new communities are not specifically mentioned, a to incorporate it into the county general plan. policy is recommended to "increase the size and com- The ACIR/AIP Survey of State and Metropolitan prehensiveness of individual private projects" which Planning Agencies did not include single county plan- could result in new communities developed around ning agencies unless they had the status of metropoli- the centers. The planning responsibilities of the Joint tan area agencies. However, a sampling of county gen- Program have now been assumed by the newly estab- eral plans received in the course of the survey serves lished metropolitan council of the twin cities area to illustrate the varying approaches to planning for which will adopt a Metropolitan Development Guide. the location of new communities which have been The Northeastern Illinois Planning Commission's taken by counties. alternatives suggest three different approaches em- The Guilford County, North Carolina land-use plan phasizing transportation and utilities, regional-level which is part of the county comprehensive develop- service centers, open space, and residential commu- ment plan proposes that the county adopt a policy of nities to produce desired patterns.42 In two of the promoting a small series of satellites, principally dor- alternatives, itis proposed that development take mitory communities, in selected prime locations.47 The place in new cities incorporating centers for com- plan recommends for special attention three locations merce and public institutions and providing employ- felt to be suitable for such development. ment opportunities within their borders or nearby. The Fresno County, California, general plan briefly The third alternative, on the other hand, proposes mentions the possibility of new community develop- new communities that would be primarily residential. ment both in a statement of principles to guide devel- The Connecticut, New Jersey, New York Tri-State opment and in a statement of land-use elements for Transportation Commission, an interstate planning the plan. It does not attempt, however, to map or agency, in presenting alternatives for the region des- identify locations.48 cribes two which incorporate new community devel- When the proposal for Columbia, Maryland, was opments.43 One proposes a number of new identifiable centers surrounded by urban development and sepa- presented to Howard County, the county general plan rated by open space to give order and focus to a did not include any reference to new communities in "spread" pattern. The other proposes concentrating either its text presentation or the map general plan. seven large new cities on undeveloped land that could Immediately after the formal presentation of the Co- be built free of many constraints with wide opportu- lumbia proposal in November 1964, preparation of a nities for modern design and efficiency. text supplement was initiated, and in May 1965 it was The Richmond, Virginia, Regional Planning Com- adopted." It establishes standards for three levels of mission, among other alternatives, suggests channeling planned new communities ranging from large-scale most of the region's future growth into a series of neighborhoods of at least 400 acres to new towns of six to ten new communities." Both the Southeastern at least 10,000 acres. Criteria are provided for locating Connecticut Regional Planning Agency and the Cap- the planned communities in accordance with a 1960 itol Region Planning Agency suggest the development general plan. Planning for Columbia has proceeded of new communities as part of regional develop- with the developer's planners working closely with ment.45 Within the area of jurisdiction of the Regional the county planning staff to relate the plan for Co- Planning Commission of Los Angeles County, both lumbia to the county's General Plan of Parks and the General Plan for the North County and the Mal- Open Space and General Plan of Highways. The pre- ibu Area General Plan identify unincorporated ter- liminary development plan for Columbia was adopted ritory where concentrated urban-type communities in August 1965 and a major overhaul of the 1960 are expected to be developed and contain proposals county general plan text and map has been under- for selected balanced communities." taken so that the Columbia development can be re-

86 lated to the rest of the 'general plan in an updated and FINANCING THE DEVELOPMENT OF revised version. NEW COMMUNITIES A generally similar procedure is followed in Orange County, California, when the community general plan Land purchase is a major cost for new community developersexcept, of course, for the developers who for a new self-contained community is prepared by a are already landholders. Accurate information regard- consultant or stair employed by the developer. The plan ing land costs is difficult to obtain. Available figures is reviewed by the county planning staff and, follow- show a wide range of cost per acre. One development ing necessary revisions and modification, is adopted as (Lake Havusu City, Arizona), developed on former an amendment to the County General Plan. Similarly State lands cost only $73 per acre. For other devel- in Ventura County, California, the planning for several opments for which information is available costs range new communities proceeded concurrentlywith the from a low of $64,1 per acre to a high of $5000 per preparation of the county general plan for the plan- acre. The following illustrative table, based on Senate ning area in which they were located. It was thus pos- hearings and newspaper and periodical information sible to coordinate the elements of the master plan supplemented by other sources, provides an idea of with those of the county general plan. the range of land costs involved.

Table 43Active New Community DevelopmentsPredevelopment Land Costs [Land cost period: 1962-641

Reported Approximate Site or community name Developer or purchaser price per number acres Approximate acre original total price purchase New Orleans East (La.) Murchison Bros $865 32, 000 $27, 680, 000 El Dorado Hills (Calif.) Sierra Pacific Properties. 1, 000 10, 000 10, 000, 000 Columbia (Md.) The Rouse Co 1, 450 11,640 16,900, 000 Camarillo Ranch (Calif.) Great Lakes Properties 3, 800 4, 700 18, 000, 000 Foster City (Calif.) T. Jack Foster 5, 000 2, 600 13, 000, 000 Laguna Niguel (Calif.) Laguna Niguel Corp 641 1 7, 075 4, 500, 000 Reston (Va.) Reston Corp 1, 900 7,180 13,600, 000 Westlake Village (Calif.) American Hawaiian Land Co 2,600 11, 500 29, 000, 000

Average price per acre of eight tracts: $1,540

Does not include another 26 acres purchased at a higher price (undisclosed). Source: Unpublished data compiled by the Land and Facilities Development Administration of the U.S. Department of Housing and Urban Development. The cost of buying the land and the annual interest nities have faced heavy preliminary planning invest- charges on the land purchase money, while a major ments. Yet, since most of the new communities are element, is only part of the special costs associated located in rural counties that lack an experienced with new community development. These costs, in public planning staff, the type of cooperative public fact, begin prior to the land purchase investment and planning assistance normally available to developers continue well after it. Because of the necessary size of of smaller projects within urban jurisdictions does the tract and the unique features which must be pres- not exist. Both the Irvine Company and the Janss ent, site location itself is a more time consuming and Company, builders of new communities in California, costly process than in most other types of large-scale in addition to the site plans normally prepared by a development. More and more developers are finding developer, provided comprehensive area-wide plans, it necessary to hire specialized professional talent to which customarily are the responsibility of a public undertake physical, economic, and market analysis. planning agency. All of these preliminary activities Furthermore, the varied geological nature of a large entail a disproportionately large initial investment by tract of land usually requires the technical services of the developer. soil engineers, geologists, and others to survey the site. Still other additional expenditures are necessary In addition, developers are increasingly making heavy prior to sales. Sites must be cleared and graded; streets use of human resource and relations experts during and roads laid out and paved; curbs and sidewalks the early phases of project development. Witness the provided; collector and distributor sewer and water case of Columbia, Maryland, in which a team of consultants combiningsocial and physicalplanning, lines installed; and frequently, phone and power lines worked for over four months to provide insights into buried. In some areas, contributions may be required the social needs of the new community. for main trunk water and sewer lines based on the While the preliminary social and physical planning added capacity required for the new community. and design activities were more extensive at Colum- While all of these facilities must be provided in greater bia than perhaps at any other of the new communi- number and over larger areas than would be required ties, all of the responsible developers of new commu- in small, compact tract subdivision developments, they

87 must also be "in the ground" much further in advance $1 million a year. After an extensive search, a loan of of anticipated sales. Finally, shoppingcenters, indus- $15 million was arranged in March 1964 with Gulf trial sites, community centers, county clubs, lakes and Oil Corporation.51 waterways, swim clubs, dock facilities, internal trans- Additional financing then was obtained from John portation lines, and other features must be provided Hancock Life Insurance Company ($20 million), the in advance of actual use by the resident population. State Planters Bank of Commerce in Richmond, Vir- These investments are necessary to attractcommer- ginia ($5.4 million), and the Empire Trust Company cial and industrial firms as well as residents to the in New York ($2.4 million). By the end of 1964, it community. An indication of the scope of such invest- has been reported that land development costs alone ments can be gained from the experience in Westlake had reached a total of over $5 million: $2.5 million Village, a 12,000 acre community northwest of Los for the installation of sewers and water lines; more Angeles, where the developer followedan initial $32 than $1 million for building of the first road, walk- million investment with an additional $10 million to ways and pedestrian underpasses; nearly $1 million create an artificial lake. for recreation areas; and over $1 million for land The experience in financing threenew communi- planning. In addition, architectural fees for construc- tiestwo that have had financial difficulties andone tion amounted to about $300,000, while the cost of that has nothigh-lights a number of these difficulties. financing the first high-rise apartment building and A series of extremely intricate transactions made it townhouse units was $2.4 million and $5.4 million possible to assemble sufficient land for the Columbia respectively.52 By the time of the dedication of Lake (Maryland) project at an average priceper acre Anne Village (the first village complex) in December which met the major investors' evaluation ofan ac- 1965, it was reported that land purchase, comprehen- ceptable ceiling. The land purchase effort took place sive planning, and initial construction costs had to- over an 18-month period and consisted of 175 land taled $30 million. At the same time, it was reported transactions with 328 individualowners. A number of that the estimated eventual total cost for the project separate corporations were established to avoid inflat- development-7,400 acres to accommodate a planned ing land prices. population of 75,000would be over $1 billion.53 The original purchase of two tracts totaled 1500 Annual sales were slow though steady. About 300 acres and was made in September 1962 by the Com- dwelling units were sold in 1966, and it was estimated munity Research and Development Corporation for that about 360 would be sold in 1967. By late 1967, $300,000 in cash and an additional $700,000 in bor- 800 units had been occupied and the population had rowed funds. By October 1963, the purchase of the reached 2,700. By this time, the total borrowing to entire tract of 15,000 acres had been completed with finance Reston had reached $45 million and the an- $23,500,000 loaned by Connecticut General Life In- nual debt service was $2.5 million. To realize an insurance Company. Connecticut General stipulated come adequate to meet this charge, it has been esti- that the average cost per acre should not exceed mated that annual sales or rentals of a minimum of $1500almost exactly the final figure paid by the 500 to 1000 dwelling units are necessary. Early in developer. In 1965, another $25 millionwas borrowed October 1967 Gulf Oil Corporation assumed control for development costs with funds advanced by Chase of Reston through a new company, Gulf-Reston, Inc., Manhattan Bank and Teachers Insurance and An- installed a new President, and made an additional $12 nunity Association of America. This brought the total million in financing available. borrowed funds for land assembly and improvement The experience of financing Joppatowne, Mary- and related development costs to $48,500,000. Not land, provides the final case study of the large fi- until September 1967, five years after the original nancialinvestments necessaryto develop a new land purchase, were the first 100 houses in Columbia community. Joppatowne, judged in terms of sales, sold and the first 262 apartment units available for had been considerea one of the more successful rent.5° new communities. In five years, the developer had The original land purchase in March 1961 of built more than 1000 houses and 600 apartment units 6,750 acres for R eston, Virginia,was also financed by on a 1400-acre site northeast of Baltimore. The com- a real estate firm--the Simon family companywith munity's population of 7000 exceeded that of most $800,000 in cash and $12 million in mortgages. Sub- of the recently built new communities. The developer sequently, additional acreage was bought bringing the started with $2 million in capital$700,000 of which total to 7,400 acres. Adequate arrangementswere not was used for site acquisition. Funds amounting to $7.4 made to secure additional funds for future landpay- million were borrowed to build the first 710 houses ments or utilities even though by late 1963, in addi- and to start construction of a private water and sewer tion to the increasingly heavy outflow of funds for system. By April 1967 the developers had only $5,000 current operations, debt payments had reached about cash, with $6.1 million outstanding in short-term loans

88 at extraordinary interest rates of 11 and 12 percent. features and notable site innovations which do consti- Although assets of $22 million were claimed, more tute a positive alternative to "sprawl", but few, if any, than $5 million in excess of liabilities, they were to date have provided any meaningful answers to the mostly in asserted land value. When one major lender problems stemming from the migration patterns of foreclosed, the developer had to file for bankruptcy. low-income groups. What happened? The basic problem was striking a balance between GOVERNMENT AND NEW COMMUNITIES heavy debt costs and cash flow.54 In order to create Because of their scale and objectives, new cornmu- the appeal feltnecessary for sales, improvements nities present special governmental problems. First, (streets, water and sewer lines) were installed at one adequate public authority for planning, guiding, and time for a large area of the development. Some un- regulating urban growth must be provided. Second, expectedly high engineering and development costs a level of public services adequate to meet the needs also were incurred. Nevertheless, an extensive adver- of a concentrated urban community must be devel- tising campaign Was waged. When anticipated sales oped and maintained. Third, a governmental frame- did not materialize and the market tightened, the de- work must be established within which the new com- veloper's cash flov was not sufficient to meet obliga- munity's pattern and objectives as formulated by the tions. As soon as sales momentum slowed, and just developer will not be thwarted. Finally, an opportu- when additional money was needed, corporate inves- nity must be afforded for participation in public deci- tors willing to put in working capital were impossible sion-making both by its residents and by larger af- to find.53 fected jurisdictions. Normally, meeting these needs To sum up briefly, from the point of view of the will call for a changing set of relationships and a shift private developers it can be stated that they must be in official status as the community is planned, devel- able to justify their large initial investment and carry- oped, occupied, and expanded. ing charges by the improved marketability of the land and the long range prospects for return on investment. GOVERNMENTAL FRAMEWORK There is, of course, also the additional nonmonetary in the great majority of cases, new community de- return implicit in offering a better product to the pub- velopment has started under county jurisdictions usu- lic. Ikwever, even the more optimistic prospects for ally in predominantly rural counties. Single-purpose new community profits, as expressed by James Rouse, special districts frequently have been used to provide indicate that "you won't get rich as fast." Recent cash such urban services as water supply and sewage dis- flow studies analyzing total investments, interest pay- posal, and in a few instances, multi-purpose special ments, sales prices, and rate of sales for land projected districts having broad governing powers over the area over a reasonable total sales period, netted out at rates encompassing a projected new community have been of return in the vicinity of 6 to 11 percent on equity established. Special homeowners' or developers' orga- invested. Even Nvhen a 10 percent increase in "nor- nizations, in other instances, have sometimes been mal" assumed sales price was projected, the return used to provide services on a special fee or assessment was only 16 percent. When the overall risk factor is basis. There also are a limited number of examples of considered, and when a return on speculative land a large new community area being annexed to an undertakings of 20 to 30 percent and more is possible existing municipality prior to or at an early stage in in other land development projects, these are excep- its development. Conversely, in a number ofcases, tionally modest profits.'" new communities have absorbed existing small incor- From the vantage point of the nation and its urban- porated or unincorporated municipalities. ization problemsrather than of the private devel- While the normal course taken byan unincorpo- operthe record shows that fiscal pressures have rated community is to seek incorporation after reach- made it difficult, if not almost impossible, to adhere ing a certain population size, this rigorously to imaginative and innovative plans for course of action is not necessarily followed by new communities. Due to physical design and a range of amenities. Moreover, these pressures for all practical purposes have barred varying circumstances, including State practices and any realization of the broader economic and social customs and an evaluation of services available and goals of providing low-income housing in addition to costs involved, new communities have frequently re- middle-income and luxury housing or a range of em- mained unincorporated within a county. In Virginia ployment opportunities. Consequently, they have been and Maryland, where a number of new communities unable to accommodate, to any significant extent, a are being developed, incorporations are limited, with balanced "mix" of residents, representing diverse so- urban counties providing the government for a num- cial, economic and ethnic backgrounds. In short, some ber of unincorporated communities. In California, the new communities have developed significant design decision to incorporate appears to hinge on whether

89 satisfactory service arrangements, including the forma- Orange County, California, supervision of the Irvine tion of special districts, can be accomplished under Company planning for its new community has been the county government. On the other hand, if the identified as superior to what would have been avail- area of the new community lies in several competing able within an incorporated city. incorporated places, detachments and a new incor- The experience with Columbia in rural Howard poration may be the preferred approach. County, Maryland, and with Conejo in Ventura The development of most of the large new com- County, California, was more typical. The Howard munities in the unincorporated territory of rural coun- County Commissioners had been elected on a plat- ties presents perhaps the greatest governmental diffi- form promising to encourage large-lot zoning and thus culties because basic decisions concerning planning, to discourage growth. The county general plan made financing, and providing services and facilities must no provision for a development such as Columbia and be made immediately upon the initiation of the proj- the Columbia development plan was drawn up by the ect. Yet, the county involved is usually ill-prepared to developer. Steps subsequently were taken to incor- assist in or to assume these functions. Such problems porate Ind integrate the Columbia development plan usually will not be as acute in the unincorporated out- into the county general plan. Ventura County at the lying areas of larger urban counties, since necessary time of the initial proposal for Conejo was a largely governmental structure, powers, and financing are rural county having hale experience with large-scale more likely to be present. Relatively fewer problems community development. The county was in the posi- are posed by the rarely used approach of annexing tion of reacting to the plans and proposals of the de- the area encompassed in a new community to an exist- veloper's highly qualified and technically competent ing municipality. staff and consultants. A cooperative relationship between developers and PLANNING public planning jurisdictions facilitates the evolution of an effective planning process when the capabilities In perhaps a majority of the counties where the of the public agencies are adequate to assure inde- current new communities were started, county plan- pendent initiative and evaluation. Fortunately, the ning was either nonexistent or of such a limited scope necessity of coping with such new development has as to prove of little assistance. Even in those counties served in a number of counties as the impetus for having a planning staff, their capability to cope with establishing a strong effective planning staff capable of the impact of a development covering 5,000 to 30,000 acres, with a projected population of 40,000 to dealing with developers on equal terms. 1,000,000, was severely tested. Furthermore,as indi- LAND-USE AND DEVELOPMENT REGULATION cated in the ACIR/AIP questionnaire, areawide planning agencies have given little thought to the location Similar problems have been faced in providing ade- of new communities and their relationship to existing quate land-use and development regulation provisions and projected urban growth patterns. Thus the major and suitable administrative organization. Large-scale planning initiative has usually fallen to the developers new communities have need of the positive guidance and their planning and design consultants. for sound urban growth and the traditional emphasis In a few cases, the county planning staff haspar- on protection against abuses and unsound develop- ticipated and given guidance and direction from the ment that public agencies can provide. Yet, many of initiation of a new community proposal. For example, the counties involved initially lacked planning, zoning, the Alameda County, California, planningagency, in and subdivision control authority. Rural counties fre- conjunction with Contra Costa County and the de- quently have depended on part-time boards andreg- veloper and property owners, prepareda preliminary ulatory agencies to administer land-use development plan for a new community named San Ramon Vil- controls. Furthermore, those counties that did have lage. A system of streets related to the general county such authority frequently were limited to themore land use plan, an integrated network of community conventional zoning approaches whichare designed primarily to cope with small subdivision development. facilities, and a full range of landuses were provided To fill the void left by ineffective public agencies, for. Increasingly, counties with prior experience in private associations and privately adopted but public- new community development are acquiring this type ly enforceable regulatorymeasures have been employ- of capability. Ventura County, California, forexam- ed in a number of communities. Several develop- ple, after its initial role of responding to proposals for ments, particularly those making wide use of cluster the new community of Conejo has now strengthened site design with common openspace, have relied its planning function so that it can do advanced plan- heavily on homeowners' and residents' associations ning for newly urbanized areas rather than merely and on covenants. The homeowners associationsare responding to a completed developer's plan. The both areawidefor the supervision and management

90 of common open space in a particular cluster, and the three district directors are elected by property communitywidefor the provision of recreational owners on the basis of the assessed value of their hold- services. They are a method for enforcing certain ings. Expensive land fill operations to reclaim low regulatory measures whichyerc either adopted by swamplands \ v ere the major initial activity of the the association and incorporated into its articks and Estero district. Plans call for a 2,600 acre development by-laws, or incorporated in deed covenants for the Nvor th $650 millionv1iei i developed to accommodate property. A more detailed discussion of present prac- 35,000 residents. tices and new approaches to large-scale development Although special districts can facilitate the financ- guidance and control is provided in Chapter V. ing of a higher level of facilities and services fora new community, they can create a number of problems. PUBLIC FACILITIES AND SERVICES They form a special levd of government, in effect, -ticular diffkul ries are faced in providing public and may not adequately relate representation of the faeiL des and services for new communities in areas interests of the developer and those of the residents which are usually equipped to furnish only rural serv- as the area grows. They may not sufficiently relate ices. In these instances, public jurisdictions face rela- their financing, IA-arming, facilities, and functionsto tively the same problems as the developer. Such fa- the efforts of general and areawidegovernments. cilities must be provided for anticipated demand at Moreover, in a time of readily available investment a time when property values and economic activity do funds, they can become overextended by borrowing not produce sufficient revenue to support such ex- beyond their capacity. penditures. A variety of approaches have been used A number of measures have been inaugurated in both by developers and by government to cope with California to avoid the abuses that developed insome this problem. of the special districts. Stricter special district incorpo- Perhaps the most extensively used technique is the ration requirements were adopted; thepowers of the establishment of new special districts or the annexa- District Securities Commission to review the economic tion of the new community to existing special districts. feasibility of proposed special districtswere expanded; The formation of special districts facilitates the pro- and, perhaps most significantly, localagency boundary vision of public facilities and improvements which commissions were established to supervise the forma- would otherwise have to be provided by the county, tion, consolidation, and dissolution of localgovern- another general unit of government, or by the de- ments. The local agency formation commissions, func- veloper. Because of its legal provisions for the forma- tioning on a county-wide basis, represent the county, tion of special districts and local government custom cities within the county, and the public. Theyexer- and practice, California has had considerable experi- cise review and approval powers in connection with ence in using them to provide facilities for new communities. Developer-formed special districts have been changes in status and in the area of all types of local able to issue revenue bonds, and in some cases, when governments, including special districts. Recently, in- given taxing powers, to issue general obligation bonds. creased emphasis has been placed upon their positive Funds were then available for construction of water role in guiding the development of appropriate gov- supply and sewerage disposal systems, streets and ernmental organization for urban areas. As stated in roads, and parks and recreational facilities. The pow- the law : "Among the purposes of a local agency for- ers and structure of these districts varied considerably. mation commission are the discouragement of urban Some were limited to single purposes and could issue sprawl and the encouragement of the orderly forma- only revenue bonds, while others had broad powers tion and development of local governmental agencies and constituted almost a limited-purpose local govern- based upon local conditions and circumstances." ment with authori ty both to charge fees and to levy Intergovernmental contracts and agreements pro- taxes. vide a method for a special district or a municipality

. The best known use of the special district ap- to furnish services and facilities which might other- proach to providing public services and facilitiesis wise be beyond the capacity of their own staff, ad- the Estero municipal improvement district, a multi- ministrative organization, and financial capacity. They purpose special district authorized by special act of serve as a means of realizing economies of scale by the California legislature in September 1960. It pro- participating in cooperative undertakings. They clear- vides a number of services for the Foster City new ly have particular relevance for new communities community. It can perform a wide range of functions which are just developing their own governmental and its governmental organization is in many respects structure. The advantages of more specialized pro- typical of the California developer-formed districts of grams and a higher level of services that might other- the late 50's. The developer is in control, since two of wise be available can be realized through this device.

91 Moreover, expertise can be provided through con- subsequent purchase by the school district over a pe- tracts with established municipalities or with a coun- riod of time. The company also drilled the original ty. wells and built the water plant for later purchase by One of the difficulties in using this method in a the community. new community may be the lack of an adequate tax Some developers have viewed the establishment of base to provide necessary revenue. Furthermore, the a private water supply or sewage disposal company as availability of services through contract or agreement a sound investment. Rather than seeking the extension may encourage governmental fragmentation by facili- of public facilities or the formation of a special dis- tating small incorporations of municipalities and of trict, they have incorporated a subsidiary or independ- special districts. ent company and have constructed their own facili- Another approach to providing the necessary level ties. After a community services district planwas de- of facilities and services for new communities is the feated at the polls, the Janss Corporation, developer creation of a county subordinate service or taxing of Conejo in Ventura County, California, joined with area. With this device, the levying of special taxes five smaller developers and a nearby college to estab- or charges is authorized in specific areas for the pro- lish the Conejo Valley Sanitary Company to provide vision of a higher level of facilities or services. The trunk line and disposal facilities. The company oper- distinguishing feature of the approach is that the area ates as a privately owned public utility and the devel- does not attain an independent status but remains oper may actually realize a net profit on the enter- completely under the county government. This meth- prise. However, this approach does createsome prob- od makes it possible to relate more directly the public lems, particularly if there is not adequate publicregu- services and facilities provided to the revenue neces- lation similar to the public controlsover regular pri- sary to pay for them. The major difficulty in its appli- vately owned public utilities. Furthermore, itmay cation to new communities is the necessity to provide not prove financially feasible for development compa- financing for facilities in advance of the economic niesalreadingundertaking expensiveborrowing. base necessary to produce revenues. Also, urban counties increasingly are seeking control An adaptation of this approach to municipal gov- of existing private utilities andare discouraging the ernment was developed to facilitate the annexation of formation of new ones. Redwood Shores, a new community development, to Through the formation of nonprofit community- the neighboring incorporated community of Redwood wide corporations and clusterarea homeowners' as- City, California. To gain the advantages of an existing sociations, additional services and amenitiescan be municipal government for the new community with- provided on a fee or share basis. Membership and out burdening the taxpayers of an established commu- participation may be voluntary, but frequently theso- nity with the costs of major capital projects, such as called automatic homeowners' associationis used, marshland reclamation and necessary public works, a especially for cluster developments. Aperson buying special fiscal mechanism was created under Redwood property or renting apartments or townhousesauto- City's basic grant of power over "municipal affairs." matically becomes a member of the association and is The Redwood City General Improvement District was subject to annual duesor assessments. Some of the established as an arm of city government with the communitywide,nonprofitorganizationscombine city council serving as the governing board. The Dis- automatic membership features with voluntarypar- trict can levy property taxes and issue bonds to obtain ticipation by corporations, businesses, and interested capital financing for projects within its borders. The individuals. existing developed city is thereby insulated from the When it did not prove possibleto use a special dis- liability of financing such projects and the responsibil- trict approach for the provision ofa number of the ity of repayment falls on the property directly bene- facilities and amenities that fitted. were desired by the Co- lumbia, Maryland, developers, New community developers have used two other a nonprofit corpora- approaches which do not depend upon the formation tion, the Columbia Park and Recreation Association of public agencies or special districts to provide serv- was formed for this purpose. All residents of Colum- ices and facilities. Some developers have themselves bia normally become membersupon moving into a undertaken the construction of facilities. In some in- house or apartment. Membership is also available for stances this has been done with the understanding businesses and industry. The association is responsible that the facilities subsequently would be purchased for financing, constructing, and maintaining various by an appropriate public entity when development types of community buildings and service facilities, provided an adequate tax base. In the early develop- swimming pools, parks and associationopen space, ment of Park Forest (Illinois),the developer made lakes, pathways, and some roads. It supervises the sites available and built the first school buildings for operation of the bus system, the child and daycare 92 programs, tennis and golf courses, arts and crafts i)olicy and areawide plans would be needed to provide classes, and boating on the lakes. Its properties and the framework within which such a function could be maintenance activities are supported by an assessment exercised. not to exceed 73 cents per $100 of evaluation on real .1nother alternative is to permit annexation with estate. Apartment assessments are included in the adequate safeguards. The provision of broad legis- rent. At the outset, the association has nine board lative guicklines and review by boundary commissions members, seven representing the developer and two or other appropriate agencies has been urged in con- ex officio. As development proceeds, additional mem- nection with this approach. There can be early an- bers will be elected to represent the growing number nexation of areas large enough for a new community of residents and in time residents will gain control. by existing cities equipped to provide the necessary development guidance and regulation, needed serv- PERMANENT STATUS OF NEW COMMUNITIES ices, and public facilities. In effect, this is what hap- Because of its areawide impact, and the need to pened prior to the development of the proposed new facilitate the realization of development plan objec- community of Jonathan in Carver County, Minne- tives, the final status of new community development sota. As a result of a proceeding before the Minnesota presents particular problems. In most States, the ulti- Municipal Commission (the State's boundary com- mate goal would be either independent incorporation mission), the entire territory of the proposed develop- or annexation to an existing city. However, past ex- ment was annexed to the city of Chaska. The responsi- perienceespecially with the Greenbelt communities bility for sustaining a new community's development has documented the difficulties in independent in- objective can be undertaken by an existing munici- corporation without adequate preparation. The prob- pality having adequate organization and facilities. A tem of balancing the basic objectives of the develop- number of new communities have been annexed in ment plan with the traditionally accepted powers of this fashion, at a single time and some on a staged local governments raises difficult questions. Premature basis. The use of a municipal service district to facili- incorporation or hasty annexation under existing pro- tate the annexation of the total territory of Redwood visions in many States could result in the virtual Shores to Redwood City, California, has already been abandonment of the overall plan. In most States, in- cited. A different approach is being followed with corporation can occur when a required population Westlake Village, California. That portion which lies is reached. Furthermore, with the agreement of an in Ventura County is being prezoned for annexation annexing municipality and the area to be annexed, to the city of Thousand Oaks as development takes annexation would also be possible at an early stage. place. Public services and facilities will be provided by Continued development under the county govern- annexation to existing special districts. Similarly, there ment which originally approved the new community has been a commitment to annex the Conejo develop- project, however, would provide protection. Equip- ment to Thousand Oaks in orderly fashion over a ping the county to deal with concentrated urban period of years as development takes place. To finance growth can reduce pressures for premature incorpora- the added services for annexed areas, it is the intention or annexation and the resulting fragmentation of tion of the city to depend as muchas possible on the urban areas. The latter is one of the possible dangers sales and gasoline tax distributions to which it would arising from an overemphasis on self-sufficiency and become entitled. self-containment for new communities. Furthermore, a strengthening of county governments and the au- FEDERAL AND STATE PROGRAMS AVAIL- thorization of special subordinate service areas to pro- ABLE FOR NEW COMMUNITY FACILITIES vide the necessary level of services and facilities can While only one programthe Title X Federal limit or avoid the proliferation of single- or limited- purpose special districts as a method of financing Land Acquisition and Development Mortgage Insur- services and facilities. ance Programhas been established specifically for Some form of special status for new community de- new communities, there are a number of Federal and velopments also has been suggested as an approach to State grant programs that potentially could be useful this problem. Areawide and State involvement is par- to encourage and foster this type of development. ticularly important to represent the broader interests They have not, however, been widely used for this which are affected. The use of a local agency forma- purpose. tion commission, State boundary review commission, or other appropriate agency to provide an interim FEDERAL trusteeship or overseeing function would be a logical Table 44 lists selected Federalprograms in the extension of their present responsibility in a number areas of housing, planning, water and sewers, trans- of States. The development of a State urbanization portation, open space, education, and health facilities.

93 Table 44Selected Federal Programs of Possible Assistance for New Community Housing and PublicFacilities, 1967

Kind of assistance

Program Administering Eligible recipient Loan Tech- Description agency Loans guar- Grants nical a ntees assistance

New Community Mortgage In-HUD Private developers Large-scale development and new community land develop- surance for Land Acquisition mentcosts including financing of public facilities; mortgage and DevelopmentTitle X. insurance extended to 30 years. Planning assistance grants: (a) Urban planning mist- do Cities (less than 50,000); x Grants for comprehensive urban development planning ance. counties; State, re- programs. gional, and metropolitan planning agencies. (b) Advances for public do Any non-Federal public x Interest free advances to plan public works and community works planning. agency. facilities. Water and sewer facilities: (a) Basic water and sewer do Local public body or x 50 percent of the cost of land and construction of new water facilities program. agency, nonprofit and sewer facilities. private corporation serving community under 10,000. (b) Waste treatment works Federal Water Pollu-Any State, municipal, x 30 percent of the cost of waste treatment works, including construction. Administration, or other public body. intercepting or outfall sewers; 40 percent if State con- Department of tributes at least 30 percent, 50 percent if State contributes Interior. 25 percent, and project conforms with water quality standards. Grant increased by 10 percent,ifproject conforms with comprehensive metropolitan plan. (c) Rural water and sewer Department of Public and nonprofit x x Loans (10 percent) and grants for development and con- systems. Agriculture, agencies in rural struction costs of water or waste disposal systems. areas. Advance acquisition of land-- HUD Local public bodies or x Grants for interest charges on funds borrowed to purchase agencies. land up to 5 years in advance of construction of public works and facilities. Housing assistance: (a) Rent supplements do Individuals and families Rent supplement payments to help make certain privately eligible for low-rent owned housing available to low-income individuals and public housing; hous- families. ing owners who provide housing financed under section 221(d)

(b) Low-income housing do Public bodies or agen- Grants to demonstrate new or improved means of providing demonstration grants. cies, nonprofit groups. housing for low-Income families, including constrr.tion design, land acquisition, land use, and financing. (c) Home association resi- do Private residential Technical assistance and planning assistance in establishing dential subdivision. developers. a "planned unit development" with a homes association to provide an alternative to municipal ownership ofsome, or all, public facilities. (d) Experimental housing do Private developers Mortgage insurance to back existing FHA experimental program. housing program to insure homeowner or renter from loss due to building materials or construction defects. (e) Rental housing for Low do Private nonprofit co- Based on below-market interest rates to permit low rentals. or Moderate Income operative, limited Families (sec. 221 dividend, public (dX3)). sponsors. (f) Basic Home Ownership do Residential property Mortgage financing for single family homes. Mortgage Insurance. buyers and owners. (g) Insured and Direct HomeDepartment of do Do. Loan Program. Agriculture. (h) Veterans Home Loan Veterans Admin- do Do. Guaranty and Direct istration. Home Loan Program. (i) Cooperative Housing HUD Nonprofit cooperative Mortgage insurance on long-term loans to finance projects ownership housing owned and operated nonprofit by cooperativecorpora- corporation or trust. tions. (j) Condominium Housing . do Residential property Mortgage insurance for purchase of an individual family buyers and owners. unit in a condominium project. (k) Multifamily Rental do I nvestors, builders, Mortgage insurance to finance recipients for construction of Housing. developers and other multifamily rental housing projects. mortgagors. (I) Rental Housing for the do Nonprofit or profit- Mortgage insurance for new projects designed for occupancy Elderly. motivated sponsors. of the elderly (62 years or older) or the handicapped. Public Facility Loans do Any local agency in a Long-term construction loans (up to 40 years) for all types municipality under of public facilities where such credit is not otherwise 50,000; designated available on reasonable terms. development areas up to 150,000. Urban Mass Trnasportation do State, interstate, Grants (% of cost) to test and demonstrate new ideas and Demonstration Grants. regional, or local methods for improving mass transportation systems and public bodies. service. Outdoor Recreation Assistance__Department of the States and through 50 percent matching grants for land acquisition Interior. their local govern- or purchase muts. of easements for outdoor recreation areas and facilities. Airport Development Federal Aviation State and local public 50 percent grants for planning acquisition, and development Administration. bodies. of public airports. Neighborhood Facilities HUD Public bodies or Grants to establish multipurpose neighborhood centers for agencies. health, recreational, and social services. Grants cover % of development cost% of cost in redevelopment areas under sec. 401, Public Works and Economic Act, 1965. Educational Facilities Con- do Public and private Grants and loans to assist recipients in financing thecon- struction. colleges and univer- struction of facilities needed to expand their enrollment sities. including extension programs. Adult Basic Education do State educational Grants for support of instruction programs below college agencies. level to persons 18 years or more who have not achieved a high school education. See footnote at end of table.

94 Table 44Selected Federal Programs of Possible Assistance for New Community Housing and PublicFacilities, 1967Continued

Kind of assistance

Program I Administering Eligible recipient Loan Tech- Description agency Loans guar- Grants nical antees assistance

Areawide Health Facility HUD State Hill-Burton 50 percent grants of project costs to support areawide Planning. agencies or other health facility planning and 75 percent grants in develop- public or nonprofit ing comprehensive plansforcoordinationofhealth agencies through services. such State agencies. Community Mental Health do State, local public 1/3 to 2/3 grants to finance construction and staffingof Centers. agencies and nonprofit mental health centers. organizations. Federal Surplus Real General Services State and local public Surplus property conveyed to State and local governments Property. Adm inistration. agencies. forpark,recreation,airport,healthoreducationa I purposes. Small Business Financial Small Business Small independently Loans for construction, purchase of equipment, and for Assistance. Administration. owned and operated working capital for business conversion or expansion. business. Federal Regional Programs (a) Supplemental Grants Department of Appalachian commu- Supplementary grants up to 80 percent of project costs of for Appalachia. Commerce. nities. allFederal grant-in-aid programs,including airports, vocationaleducation,schools, hospitals, recreation, sewer and water systems and facilities, etc. (b) Public Works and do State and local agencies, x Grants up to 50 percent project costs and loans up to 100 Economic Develop- private nonprofit percent of land acquisition and improvements for public ment. agencies. works and service facilities to encourage industrial or commercialexpansion.Onlyprojectsindesignated "redevelopment areas" eligible.

I Programs included could be useful in the physical development of a new community. Several, however, require amendment to be fully effective. See AppendixIV-1 for more complete analysis.

Allcould be significant to the physical development Water and Sewer Facilities. Several States have of the new communitysome require amendment to established financial assistance for local water and be fully effective. A more complete analysis of these sewer facilities. Illinois has many technical assistance Federal programs, including a brief legislative history programs for water resources development and con- of the Title X program, is provided in Appendix IVA. tributes to the local share of the federally supported planning grants for watershed projects. In New York, the State pays 100 percent of the expenses for prepara- STATE tion of comprehensive studies to determine present and While Federal program evaluation is not an easy future water supply system needs. New York also reim- task, evaluation of the multitude of programs of the burses localities for up to half the acquisition cost of 50 States is even a more difficult one. Nevertheless, a land, land easements, or rights-of-way in connection number of existing State programs suggest several with watershed protection, flood prevention, and water possible roles for State participation in the develop- conservation and development. Pennsylvania has a ment of new communities. similar program, while Texas and California lend Urban Planning. Probably the most extensive Fed- funds to political subdivisions which cannot otherwise eral-State program that could affect new communities finance their local water projects. is the urban planning assistance program. The 701 New York also has a comprehensive grant program urban planning assistance program to small communi- addressed to the problems of sewage systems. The ties (under 50,000) is administered by the States and State pays 100 percent of planning costs for sewage now involves every State in the Union.Furthermore, systems studies for counties, municipalities,cities, forty-four States participate in the statewide compre- towns, and other local government units, and one- hensive planning assistance program. Almost half of third the cost of operating an,1 maintaining treatment the States aid localities in planning, either through works. In addition, the State furnishes cities, coun- financial aid (matching the local share of the Federal ties, towns, and other units of local government with grant) or providing professional technical assistance. their share of the non-Federal matching costs for sew- The States appear to have a reasonably strong poten- age treatment facilities construction. Five other States tial to provide planning assistance for new community Connecticut, Washington, Pennsylvania, Texas, and development. They could undertake statewide studies Californiaall have programs providing grants or for the development of new community location pol- loans to municipalities or other political subdivisions icies and supplement the planning for new communi- to aid in the planning and establishment of sewage ties in rural areas lacking technical expertise. systems.

95 Housing. State housing assistance programs suggest nomically unattractive. As a limited-profit corpora- a number of arrangements for State participation in tion,it appears Oigible to participate in Section new community development. For example,Califor- 221 (d) (3) below-market-rate housing. nia's Department of Housing and Community Devel- The Michigan State Housing Development Author- opment aids local communities and private developers ity, created in 1966, provides assistance in the devel- in providing housing for farm laborers, the elderly, opment of housing for low- or moderate-income fami- racial minorities, displacees, and low-income persons. lies. The new law establishes a revolving fund under Public agencies and private developers (with the con- the control of the Authority to be used to make non- sent of the local jurisdiction) are eligible for such interest bearing advances to nonprofit housing corpo- assistance. rations and consumer housing cooperatives. No ad- Arkansas's Office of Economic Opportunity Hous- vances may be made unless it is reasonably anticipated ing Division provides aid to private housing develop- that the corporation or cooperative will be able to ment for low-income persons and may enter into local secure Federal or State mortgage assistance for the planning for municipal development. Connecticut has permanent financing of the project. The State ad- recently enacted its new Community Development vances are to be used for the initial development costs Act, under which the State will pay two-thirds of the that may be incurred prior to the commitment of cost of developing sites for the construction of low- federally-aided mortgage financing for a project. If and moderate-income housing on open or predominantly open land. The State reimburses municipalities the proposed housing project does not receive Federal for a 20-year period for the full amount of lost tax or State mortgage assistance and the advance cannot revenue on this housing. Connecticut also provides be repaid, the advance then is considered as a grant. grants-in-aid to municipally-approved nonprofit hous- Finally, the act establishes the foundation for a State ing corporations to cover the cost of developing such rent supplement program. houSing, providing associatedsocialservices, and Mass Transportation and Roads. About one- staffing and operating the corporations. fourth of all the States participate or "buy in" the local New York's well-established housing assistance program includes loans to cities, towns, and villages for share of federally aided urban mass transportation the provision of low-rent housing and subsidies to projects. New Jersey, Pennsylvania, Rhode Island, and cover the full amount of the annual interest payment, Washington all give capital grants to localities. In in addition to one percent of the project cost. The addition to Pennsylvania and New Jersey, five other municipality must match the State subsidy. The State States award demonstration grants to their localities. Division of Housing and Community Renewal may Technical studies are provided by five States: Cali- lease up to 50 percent of the units in a limited-profit fornia; Georgia; Maryland; Missouri; and New Jersey. project for sublease to low-income families, or it may All except seven States provide grants-in-aid to mu- purchase up to 20 percent of the units in a limited- nicipalities for municipal streets and roads and half profit cooperative for the same use. New Jersey's of the States me direct capital outlay expenditures Housing Finance Agency, patterned after the New on municipal streets including expenditures on some York agency, may float low-interest bonds and lend Federal aid to secondary and urban projects which capital, secured by the middle-income housing, to are not part of the State system. Furthermore, all both private and public agencies. States, of course, make capital outlay expenditures for Hawaii's recently established low-income housing municipal extensions of the State system. program is patterned after Federal legislation, and provides rent supplements for nonprofit groups spon- Open Space Land. Several State programs have soring low- and moderate-income housing. The same been initiated for the acquisition of open space land. act provides for a Community Home Mortgage pro- For example, in the last three years, California, Ohio, gram and establishes a State sales housing program Rhode Island, Washington, Kentucky, Alaska, and to enable public housing tenants to buy their units. New York have all approved major bond issues for this It also allows a dollar-a-year lease of public lands for purpose. However, none of the States appear to have developers of low- and nicderate-income housing. used their programs in conjunction with a new com- An interesting but unused 1933 Illinois law au- munity project. thorizes private housing corporations to construct and operate low-rent housing under the supervision of the Hospital, Medical, and Educational Facilities. State Housing Board. The corporation has the power Several States now have, or have had in the past, of eminent domain, but it is limited to a 6 percent grant-in-aid programs for the construction of hospital return. The device has not been used in recent years and medical facilities. In 1964, 12 States had active because the high cost of urban land has made it eco- programsAlabama,Alaska,California,Georgia,

96 Hawaii, Kentucky, Maryland, Mississippi, Missouri, Table 45State Aid to Localities Supplementing the Local ContributionUnder SelectedFederalGrantPrograms, Nevada, New York, and North Carolina. Seven ad- December 1967 ditional States had active programs between 1945 and 1964. In addition to direct grants, four StatesAla- Waste Airport Hospital Urban Water and Urban State treat-construcconstruc- plan- sewer mass bama, California, Georgia, and North Carolina ment tion tion ning I facilities trans- offer State aid to localities to supplement the local works portation

contribution to Federal grant programs for hospital Alabama x* x x Alaska x2 construction. Arizona x Arkansas x Over half of the States provide grants to local gov- California x* x x ernment specifically designated for public school capi- Colorado x Connecticut x7 x3 x4 x tal construction programs. In a number of States, Delaware x x 4 Florida community and junior colleges are included in the Georgia x x x Hawaii x3 general public school grants for capital construction. Idaho x* Illinois x x In addition, of course, States provide direct funds for Indiana x x5 Iowa x construction of State college and university buildings Kansas Kentucky x x and campuses. Louisiana Maine x x6 Maryland x x6 x5 State Supplements. For most of the preceding pro- Massachusetts x x x Michigan x3 gram areas, in at least some States, State aid is made Minnesota X* Mississippi x* available specifically designated to supplement the Missouri x x x Montana x* local contribution under applicable Federal grant pro- Nebraska x* Nevada grams. Table 45 summarizes the extent of such Fed- New Hampshire x x* eral-State-local cooperative financing. New Jersey x x7 x New Mexico New York x xe X X x North Carolina x x x Economic Development Assistance. State eco- North Dakota x6 nomic and urban development assistance programs Ohio x Oklahoma x could make a significant contribution to a national Oregon x x* x Pennsylvania x7 X43 X x program of balanced urbanization and new commu- Rhode Island x7 x2 x x South Carolina x nity development.57 Since 1950, 33 States have estab- South Dakota x* Tennessee x x x lished an industrial development agency. At the pres- Texas x x Uetarh x* ent time, California is the only State without such an x x x 5 Virginia x* agency. Washington x x West Virginia State financial incentives to aid industrial develop- Wisconsin x x* x x g ment include :( 1) statewide development credit cor- Wyoming x porations; (2) a State industrial finance authority; *Some or all aid from aviation-related taxes and revenue. I Except for New York, consists of the provision of staff services which are credited (3) State and local tax incentives to industry; and toward the local contribution. 2 owns all or most of the airports. (4) authorization for the issuance of local govern- 5 Owns and operates some of the airports. 4 Sewer only. ment bonds to finance industrial development. Only 5 Loans only. 6 Bond issue. three States currently do not use or authorize at least 7 Hardship only. 8 Only in cases of proven hardship. one of these four financial inducements. Many States 9 Limited application. use two or more of them. Full implementation of these programs involves The State industrial finance authority is a device cooperation between several State and local govern- for making public funds available for industrial de- ment agencies. In some cases, Federal agencies, pri- velopment. Funds are either appropriated by the legis- vate development groups, and business and industry lature or raised through the sale of bonds. Twenty are also involved. States now have such a program. Twelve of these Development credit corporations are privately or- States offer aid directly to local development agencies ganized, financed, and managed, but are usually char- in the form of low-interest loans. tered by the State. Their primary function is to pro- Two other types of State economic development aid vide funds to assist high risk industries to locate or are the loan guarantee and the building authority. expand within the State. Long-term loans are pro- These programs raise money in the same manner as vided to these industries when financing is not avail- the direct loan program, but in the case of a loan able through regular commercial channels. Thirty-two guarantee the money is used to insure loans made by States now have such corporations, but only 18 of commercial authorities. This approach is used by six these are on an active basis. States. The building authorityutilized actively only

310-335 0-68-8 97 in New Hampshireallows the State to develop in- Technical Services and Assistance. Financialas- dustrial sites and construct plants for lease or sale. sistance is not the only method States have of aiding State and local tax incentives to aid industry have economic and urban development. Almostevery State been offered for several years. If "free-port" legisla- agency offers services or performs functions that affect tion (which exempts from State taxation goods stored local communities. Thirty-one States offer land-use within the State for shipment out of State)is in- services to localities while 28 havea zoning service that cluded, 41 States now practice this form of aid. The is used by local units of governments. Twenty-eight number is reduced by 30 percent if "free-port" laws States perform water andsewer services while 26 aid are not included. This type of aid takes the form of localities with housing and health services. Table 46 long- or short-term exemptions from State and local indicates selected planning and technical services that income and excise taxes, rapid write-off of industrial are performed by State agencies for local communities. capital investment, reduced tax rates, or a tax stabilization plan. NEW COMMUNITY DEVELOPMENT Local government industrial development bond OPPORTUNITIES financing which finances plants for lease to industry with tax exempt municipal securities is increasingly As the problems resulting from the urbanization of coming under fire as being self-defeating. The Com- the Nation's expanding population becomemore mission dealt with the subject extensively in an earlier serious, the planning.and construction of new com- report." In early 1968, initial steps were taken first munities may be viewedas an unparalleled opportuni- by the U. S. Treasury Department and then in Con- ty to combine private enterprise and business objec- gress to constrict the tax exempt status of income tives with the broader social, economic, and political from such securities. The Commission modified its goals of American society. It is apparent from the earlier position and urged Federal action to end the previous discussion in this section of the report that tax exempt status of municipal industrial develop- the achievement of such goals depends largelyon the ment bonds. nature of the development group and the extent of

Table 46State Services to Local Communities (1966)

Planning and technical services

State Assess- Transport Housing Offers Sponsors Makes Land use Zoning ment and and Power Water and Legal Engineer- special confer- special taxationcommuni-and fueland waste health ing courses ences studies cations

Alabama x x x x Arizona x x Arkansas x x x x x x x x California x x Colorado x x x x x x x x x x Connecticut x x x x x x x x Florida x x x x x x x x x x x Georgia x x x x x x x x x Hawaii x x Idaho Illinois_ x x x x x Iowa x x x x x x x x x x Kansas x Kentucky x x x x x x x x Maryland x x x x x x x x x x Michigan x x x x Minnesota x x x x x x x x x Mississippi x x x x x x Montana x Nebraska x x x x x x x x x x x Nevada x New Jersey x x x x x x x x x x New York x x x x x x x x North Carolina x x x x x x x x North Dakota x x x x x x x x x Ohio x x x x x x x x x x Oklahoma x x x x x x x x x Oregon x x Pennsylvania x x x x x x x x x x Rhode Island x x x x x x x x x x South Dakota x x Tennessee x x x x x Texas x x x x x x x Utah x x Vermont x x x x x x x x x x x x Virginia x x x x x x x x x Washington x x x x x x x x West Virginia x x x x Wisconsin x x x x x x x x x x Puerto Rico x x x x x x x x

Source: The Council of State Governments, "Economic Development in the States" (Chicago, Illinois, 1967), p. 25.

98 governmental participation. Some of the recurring rounding single- and multi-family residential growth. themes in this examination of past and present experi- To incorporate these elements, it is necessary for the ence are relevant in terms of the opportunities pre- public jurisdiction (usually a county) within which sented by new community development. the development is located to exercise vigorous plan- Planned new communities in the United States ning and land use control authority and supervision. have been developed by private industry, the Federal Although there are probably no existing examples in Government, real estate firms, and philanthropic and the United States of the complete implementation of other special groups. Their specific objectives then this approach, such locations as the Oakbrook shop- clearly have varied. ping center west of Chicago and the Southdale center The developers of company towns have been pri- outside of Minneapolis-St. Paul serve as partial ex- marily interested in an available labor supply. Hence, amples. such towns have been built near or surrounding a While it is evident that a wide range of purposes manufacturing plant or close to a source of natural have motivated those who have embarked on the resources. Some communities similarto company hazardous project of new community planning and towns have been constructed by Federal agencies, but construction, the common characteristics of suchun- in this instance to accommodate a labor supply for dertakings have been the development of large tracts such public projects as power and reclamation dams, under one ownership following a fairly precise, in- atomic energy installations, and shipyards. clusive plan for all of the ultimate geographicarea Other Federal developments have been demonstra- and incorporating some of the facilities and amenities tion projects with social objectives. A number of plan- for the whole community which normally would not ned communities have been built by philanthropic be available until a considerably later period. Within agencies for such demonstration purposes as housing the framework of a well-planned environmentrespon- and community planned improvements. sive to social and economic needs and goals, there has Most new community developments today are be- usually been a desire to providea quality of housing, ing undertaken b; private real estate developers in- public facilities and services, and amenities unavail- terested primarily in profit from the sale of land, or able in conventional tract subdivisions. Although it houses, or both. Real estate developers of the type has been recognized that certain of these objectives identified as community builders are concentrating could be achieved through the extensive planning and primarily on communities within commuting distance supervision of any large-scale urban development, it of large metropolitan centers. These communities gen- has been contended by some that the building ofnew erally have shopping facilities, and may provide such communities offers greater opportunities for the reali- amenities as golf courses, swimming pools, artificial zation of the full potential of large-scale urban devel- lakes, club houses, and community centers. Most of opment. the larger developers include industrial and commercial sites, and some have been very successful in BETTER PLANNED AND MORE EFFICIENT attracting manufacturing, warehousing, research, and URBAN ENVIRONMENT similar enterprises. Designing and building anew community from the A number of developers are focusing upon more ground up provides a unique opportunity to plan for specialized types of communities which have some or orderly growth with the most desirable location, tim- most of the traits of new communities but which lack ing, and sequence. It is possible to relate thenew a balance among such characteristics. Some develop- community development to areawide, regional, and ments are primarily residential communities having national urban development plans and objectives. The only limited shopping facilities of a strictly neighbor- continuous planning process required permits adjust- hood nature, and lacking extensive industrial, retail, ments between the actual rate of growth of a new or commercial areas. Other residential developments community and job opportunities within are even more specialized as retirement villages which or near the do not require public schools. Some are restricted to community and the need for public facilities,trans- vacation and recreation facilities which initially make portation, public services, and commercial and retail no provision for year-round residence, although as establishments. Public investmentscan be related both time goes on their character may change. to a projected and an actual rate of growth andan- A final approach is the "planned centers and com- ticipated need and capacity can be incorporated into munities" or "multi-purpose centers" type of large- current construction, thereby avoiding the necessity scale urban development. This envisages the construc- for later costly replacement or upgrading. tion of a multi-purpose center comprising retail, com- Planning and design ina new community can be mercial, hotel, cultural, educational, and multi-family on a large enough scale to incorporate features which facilities as the generator and focal point for sur- are difficult to obtain on a piecemeal det,ign basis. For

99 example, an improved relationship between work and locations outside of rapidly growing metropolitan residential locations can be established through bal- areas. Housing and development costs can thereby be anced development and distribution of economic ac- reduced. tivity. Greater ease of internal movement can be The assembly of adequate blocks of land for satel- planned by separating types of motor vehicle traffic lite new community developmentas part of a total and in turn isolating them from pedestrians. More- regional urban development plancan help to avoid over, the size and location of commercial and public artificial shortages of land created when bypassedpar- buildings and other facilities can be more easily re- cels are held for speculative purposes. Such specula- lated to traffic patterns in order to minimize congestion is frequently encouraged by prevailing assessment tion. and taxation policies, which undertax land in relation The large-scale planning required for a new com- to building on the land and which further may afford munity can also produce an improved esthetic en- preferential assessment treatment tosome types of vironment and provide amenities not otherwise avail- land such as farm land, without adequate require- able. It can furnish a variety of types and range of ments. The cost of land for urban development with- costs of houses and lots including single family and in metropolitan areas can also be minimized ifa pub- townhouses, garden apartments and highrises. Such lic development agency is established having eminent planning can also provide a range of cultural and domain powers to assemble land fornew community recreational opportunities. development. Moreover, if public acquisition of land precedes construction of public facilities, the initial IMPROVED PATTERNS OF LAND USE price of land can be held down and part of the sub- As a component of overall economic development, sequent increase in value can be recaptured for pub- land use, and urbanization policy for the country, lic purposes. new communities afford the opportunity for accom- Staged development based onan overall community plishing a more efficient use of land for urban pur- plan can serve to reduce the pressures for rezoning poses. For example, given new technologies and mod- and irrational land development, since opportunities em communications-transportation systems, urban de- for intensive commercial and industrial development velopment no longer need be restricted by the rigid, will be clearly identified, and overall financial values outdated emphasis on physical proximity of natural attributable to the new community development will resources. With this greater freedom, land can be ac- be spread more evenly and predictablyamong devel- quired at a lower price with a resultant reduction in opment sites. the cost of housing and other urban facilities. In ad- Open Space and Recreation LP"nds. Newcom- dition, the random pattern of discontinuous, low den- munity development can facilitaterelating neigh- sity development can be avoided, and the concept of borhood park and recreational opportunities, munic- urban land as a public asset and a natural resource ipal open space and parks, and regionalfacili- can be fostered. ties to needs reflected in population location and den- Curtailing Sprawl. The problems involved in the sities. An element of flexibilitycan be introduced if a curtailment of urban sprawl have been discussed in governmental jurisdiction has authority to acquire chapters one and three of this report. At this point, it land for future urban development. It would then be is sufficient to note the importance of the use of plan- possible to assemble land in a sector in which develop- ning and the staged development of a whole commu- ment was anticipated and to keep it available foruse nity as a means of overcoming the costs and burdens as open space, public facilities, and recreation. of scattered, unrelated population growth, while still EXPERIMENTATION A ND INNOVATION retaining many of the desirable features reflecting the personal preferences which urban sprawl is said to A unique potential of planning and buildinga new represent. community from the ground up is the chanceto break away from conventional thinking and to attempt new The Economics of Urban Land Use. Construc- arrangements without the constraints of existing pat- tion of large-scale, planned new communitiesas part terns and established interests and rights. Thiscan be of a total economic development and landuse policy viewed as analogous to andan extension of one of can minimize or overcome some of the economic the advantages of a Federal form ofgovernment as problems of the present patterns of urban develop- distinguished from a unitary form. The States have ment. The costof landfor urban development frequently been described as ideal laboratories for can be kept down in a number of ways. Prior to the trying innovations which subsequentlycan be adapted extension of public utilities, enough lower priced land for broader use. New communities offera similar ad- can be assembled for self-contained new community vantage. While opportunities are presented with any 100 type of new community building, it is argued by some The wisdom of contemporary zoning in the United that they would be multiplied if a new public or States, as it is used to control the bulk, use, intensity, mixed public-private entity were created and given location, and density of development, is increasingly responsibility for the development, including the exer- challenged. While impeding new and innovative de- cise of regulatory authority over land use and building sign approaches to urban development, it also fre- construction. quently fails to accomplish itspurpose of protecting A Market For Technological Advance. It has existing patterns and of providing meaningfulsepara- been suggested that a combination of three major tion of types, since rigid zoning invites variances and elements are needed to produce the advanced city conditional uses. One authority on zoning hasques- building technology of which the nation's econo- tioned the desirability of zoning as it is usuallyprac- my and scientific and technical establishment are ticed today: capable : theoretical and applied research must be un- ...zoning is a police power measure enacted by units of dertaken, constraints and limitations on the applica- local government under permissive State legislation. Zoning regulations establish in advance of applications for develop- tion of new discoveries must be removed or eased, and ment, groups of permitted uses that vary from district to a market for the new products and techniques must district. These regulations are not necessarily related to other be created. New communities provide an opportunity regulatory devices or to any community plan. Theyare ad- to experiment with new types of building codes, par- ministered by officials having only limiteddiscretionary powers. Ultimate review of the regulations and the actions of ticularly those oriented to performance standards, to administrative officials under them is by appeal only and is test land-use control techniques other than conven- a judicial function.°' tional zoning, and to negotiate new agreements with In a new community, the weight of pre-existing building trade unions including, for example, removal patterns of building code regulations, zoning, and of some of the restraints on introducing new mate- other land-use controls would either be absentor rials and labor techniques in return for broadened op- minimized. Hence, a major deterrentto testing new portunities for year-round employment. Fully as im- approaches would not exist. Insome cases, this would portant to a more rapid introduction of new technolo- require exempting thenew community area from gy is the assurance of a market that will allow pro- State or countywide minimum building codes and ducers to recapture the costs of research, experimen- from county zoning provisions. A major advantage tation, and innovation. The result then could be that of new community development would be the absence "the projects themselves establish a marketplace for of existing vested interests ina particular' type of the evolution of the methods and the technologies building code regulation or zoning pattern. Theop- needed to get them done. The very existence of a portunity would be presented for takinga more flexi- continuing series of projects creates a market for the ble and adaptable approachsuchas relating land- corresponding continuing evolution of the technolo- use controls more directly to tax policy, comprehensive gies that are likely to be needed to support them and plans, and other land developmentmeasures. to support the creation of new and as-yet-impossible projects." 59 Program Innovation. One of the major characteristics of providing services innew communities is Flexibility in Regulation. Unduly restrictive, the need to render an adequate level of serviceto a archaic, and misdirected building codes, zoning regu- population which initially will be too small formany lations, and land-use controls are commonly cited as specialized programs, yet will rapidly increasethus contributing to the failure to realize the full potential providing an opportunity for imaginative experimenta- of technological advances and industrial capability. tion. For example, anew community could review the In its study of building codes, this Commission iden- rAbility of a total environmental healthprogram tified the nced for changes which would promote uni- ..ticipating future growth. The community couldbe formity and improve performance standards.6° At designed to make sites availabM for multi-purpose present, the multiplicity of varying requirements in building codes administered by a host of local jurisdic- neighborhood and areawide healthcenters, possibly tions, along with the preponderance of rigid specifica- in conjunction with civic and commercialtown centers. tion codes, serve to limit technological innovation. These locations could be coordinated withtransporta- The cost of gaining certification in the face of varying tion plans, location of jobs, andother community specifications for materials and building techniques activity with relativeease. further limits innovation. Moreover, the specification The opportunity also will exist for developingan approach itself, under which particular materials and educational system encompassing thecommunity acti- systems are authorized, rather than performance char- vities of all age groups. The elementaryschool could acteristics required, places further handicapsupon serve as a neighborhood center; the high schoolas innovation. an integral element of the community center, with its

101 rr

facilities extended to fulfill civic as well as educational over, if economic, commercial, and industrial devel- needs; and the university as an urban campus woven opment and employment opportunities were available, into the structure of the city, reflecting the close rela- along with job training and education for contem- tionship between the university and private research porary urban living, the provision of a range of hous- institutions and industry, as yell as the broad cultural ing opportunities would be undergirded by the sup- influence that the college can exert on the entire com- port required to make it viable. munity.6 2 Some have suggested that one approach to the problem of the ghetto is to encourage the dispersal of Administrative Organization. New communities its residents out of the central cities. One feature of can contribute to the improvement of governmental such an approach could be the provision of low-and organization in two ways. First, if they are properly moderate-income houses in new communities with a planned and located, their potential size and the pro- mixed residential pattern. vision of land for future growth can eliminate the multiplication of small local government units which ECONOMIC DEVELOPMENT AND THE LOCATION frequently are incorporated without due regard to the OF URBANIZATION overall pattern of urban development. Secod, the development of a new community pro- Programs for new communities, for facilitating the vides an opportunity for devising new governmental sound growth of existing municipalities, and forre- structures and patterns unhampered by the constraints habilitating and strengthening large metropolitancen- of existing jurisdictional boundaries. A new commu- ters are among the possibilities available to further a nity can be provided with a form of government positive national urbanization policy. Governmental which will facilitate a unified growth pattern and be decisions already exert a profound influenceupon related to areawide urban development. Some func- both areas. The impact of these decisions is frequently tions will be provided on an arcawide basis. Others unrelated to overall national, regional, or State goals will be provided locally by the new community, per- and, in fact, may run contrary to such objectives. De- haps initially through agreement or contract arrange- sirable options may be hampered or foreclosed by the ments until a sufficient size is achieved to support indirect effects of some programs. The development of their independent provision. The possibility of using a new community program in conjunction with an ec- the county or a multi-county unit, supplemented by onomic development policy could focus government local representation and participation, for the provi- programs on desirable objectives and assist in directing sion of local services might also be attempted. The them so that they would re-enforce one another. For basic point is that experimentation is possible inre- example, if a goal of encouraging new centers of ec- lating local governmental needs to areawide demands onomic and urban growth is adopted, new communi- and to State and national development goals, while ties can provide a means for accomplishing this ob- retaining the essentials of our democratic system. jective. By marshalling and concentrating public programs and private enterprise initiative in particular BROAD HOUSING AND EMPLOYMENT areas, the opportunity for diversity and greater bal- OPPORTUNITIES ance in urban developmental patterns can be better Through effective planning, land-use control regu- achieved. lations, zoning, and development controls, as well as available public programs, it would be possible to fur- INVESTMENT OPPORTUNITIES nish a wide range of housing types at varying costs, New communities also can be viewed as a method including low-income housing provided either directly of providing an investment opportunity on a large- or through rent supplement arrangements. This ob- scale basis. From this perspective, investment in land jective could be accomplished directly if an urban de- for a new community furnishes the opportunity of a velopment authority were established having jurisdic- long-term, large-scale real estate venture. While expe- tion over the disposition and use of land. It could be rience has shown that the speculative "windfall" type facilitated indirectly by incorporating in Federal and of return cannot be expected from new community State urban programs a requirement for low-income land development, such investment is an opportunity housing. to cash in on returns from a booming real estate A new community could transcend some of the pat- market with fairly rapid appreciation. Whereas a pri- terns of social stratification which have emerged in marily speculative return involves holding land until older communities. Realistic ratios of lower, moderate, development catches up with and envelopes it, new and upper income residents of varying social, ethnic, community investment offers an opportunity for the and racial backgrounds could be encouraged. More- exercise of entrepreneurial efforts to influence the rate

102 and timing of return. The community plan for devel- PUBLIC AWARENESS AND ATTENTION TO opment, and government acceptance of such a plan, URBAN DEVELOPMENT PROBLEMS provide a degree of predictability and a commitment to a specific type and rate of development. It also fur- Quite clearly, a number of the goals of new community development can also be achieved by different nishes a limited opportunity to large corporations for means, particularly through other types of large-scale diversification of investments and for the realization development. Yet, the enterprise of planning, organiz- of certain tax advantages through the treatment of ing, and building an entire new community focuses capital gains and depreciation. Furthermore, the crit- public attention in a way that a series of separate and ical need for large initial cash outlays may provide an often unrelated development decisions cannot. Rela- opportunity for some investors to deduct initial ex- tionships among local goals and aspirations and penses from other income, thus increasing their ulti- broader regional, State, and national goalsare more mate return when a profitable position is attained. A readily apparent. The attention of majorgovern- recent analysis of these tax advantages, however, indi- mental institutions and of the pallic-at-largecan be cates that such opportunities are somewhat limited." more easily gained. Public agencies can concentrate their attention and resources ona project the size of LAND MARKETING TECHNIQUE a new community and make more effective use of The development of new communities may be their limited staff resources. viewed primarily as a method of putting land on the market for urban, commercial, and industrial uses. In PROBLEMS FACING NEW COMMUNITY these terms two special advantages are offered by the DEVELOPMENT land marketing technique. First, if improvements and Deeply ingrained in the collecfive experience of the amenities are provided, it can give the land holder a American people is a belief in the idea ofprogress competitive advantage over others selling land in the and in the capacity of man to improve himself and same market. Second, for a land holder already own- his environment. These basic tenetsamt,ng other ing the land, particularly if it has been held for a long thingshave prompted repeatedeffortsto build while, it provides an orderly way of developing a mar- planned new communities gearedto achieving the ket and disposing of land over a period of time, there- ideal of a gracious and liveable physical environment by assuring a steady return. A less advantageous situa- and to implementing certain social and economic tion prevails when a developer must acquire a large goals. enough land tract for new community development While new community development holdsreal prior to its marketing. In this case, the competitive promise as an improved pattern of urbandevelop- - advantage of the new community assumes major sig- ment, as a curb on sprawl, andas one means of nificance. promoting a national urbanization policy, their record to date indicates that they facea number of problems. STANDARD SETTING MODELS The most critical difficultiescan be summarized as New communities are viewed by some as presenting follows: an important opportunity to demonstrate varying If the potential ofnew communities which distin- kinds of urban environments which in turn can serve guishes them from tract subdivision developmentis as models. In this light, new communities, even in to be realized, exceedingly large initial investments rather limited number, can be significant on an exper- in land, land development, and suchamenities as imental or demonstration basis. They could provide, a neighborhood recreationcenters must be made, en- yardstick against which communities developed on tailing exceptionally heavy annual carryingcosts in different bases could be judged. A leading urban plan- anticipation of future sales and theaccompanying ner recently observed: "We particularly need planned growth in tax base which will produceultimate new cities to set design standards for a population profits and public revenues. which has come to accept scattered, unorganized Governmental decisions regarding planning,land use control, and program development which will growth as the norm. We have few distinguished exam- protect both the public and the developers' interest ples of how beautiful an urban area can be. Thus, we in the project must be made initiallyin anticipa- urgently need 50 to 100 standard-setting models. With tion of a local constituency and politicaland com- even a dozen demonstration new cities in the next de- munity leadership which is not yetpresent. cade we might logically expect the merit of those per- Because of these fiscal and other factors,new com- formances to attract the national support required to munities thus far have been unableto provide a create a national policy.64 range of housing and of job opportunities, hence

103 no balanced "mix" of residents; efforts to achieve encouragementofadiversifiedeconomicbase. these social and economic goals in a new commu- Achievement of these public goals, in effect, comprise nity context seemingly would require the combined the third basic problem area. If they are ignored, new effort and cooperation of the developer, govern- communitydevelopments mayoffermeaningful ment, private industry, and the residents themselves. planned physical alternatives to the present pattern to Probably the single most difficult problem encoun- sprawl. Yet, they will hardly provide any significant answers to the problems we face as a consequence of tered by a new community developer is the assembly and development of adequate land at a cost which present and projected migration patterns of low income families. will average out at a competitive level for various projected purposes and produce enough total return to Public decisions then must be made which antici- provide a reasonable profit. Directly related is the pate a growing constituency and which involve goals question of financing the extremely heavy carrying and preferences only generally predictable. The tim- costs during the extended period before land sales are ing of these decisions is critically significant. If incor- adequate to eliminate the indebtedness incurred. This poration as a home rule municipality occurs too soon problem is not as acute where the new community ap- without an adequate understanding and acceptance proach is used as a marketing device by a large land- of the broader goals of the new community, the very holder. However, the number of tracts of land still purpose which justified its special investments and in private hands, which are of sufficient size and of procedures may well be lost. On the other hand, if appropriate location for new community development, incorporation or other permanent arrangements are is extremely limited. Most of these holdings are situ- too long postponed, a dependent area without the ated in the West, primarily in California. As public requisite community identification and political lead- lands are reclassified, some strategically located new ership may develop. tracts may become available for development, but A related problem is that if incorporation is sought, present indications are that most reclassifications for the efforts of new communities to become financially urban purposes will be of a size and location more self-sufficient, coupled with the basic concept of a suitable for the expansion of existing cities by annexa- community planned as a single self-contained unit, tion rather than for the creation of new cities. It can can serve to foster fragmentation in an urbanized be anticipated that the land assembly and develop- area. In order to provide a tax base sufficient to pro- ment problem will continue to be a major limiting duce revenues for public services, new community factor in new community development. builders strive for a higher assessed valuation in non- The second major problem faced in the develop- residential land uses. This action also can assure a ment of new communities is the need to provide an wide variety of jobs for residents. However, it encour- appropriate governmental structure to guide, direct, ages competition for revenue producing industries and and serve a community which starts freah and en- commercial activities as a means of keeping taxes low compasses the total projected area of its ultimate frequently at the expense of the surrounding area. growth. The public jurisdiction must make decisions Unless there is strong areawide planning and effective regarding plans for the direction of development, State tax equalization programs or area-wide taxes, must exert appropriate controls to guide the develop- new communities may become asource of further ment, must adopt policies regarding public facilities, governmental fragmentation. A fourth basic difficulty is the inherent need for and must provide public services foi an area havinga population too small at the outset to meet minimum flexibility in the face of a fairly rigid and wellen- standards for incorporation. To complicate matters, trenched land use regulation pattern. This rigidity is buttressed by a traditional concern for the protection the development frequently will take place withina of private property rights. While increasing urbani- rural county which is not equipped toassume juris- zation and the accompanying greater diction over an area destined to become urban inna- use of higher ture. In contrast, cenventional large-scale subdivision density housing has promptedsome reassessment of land use patterns, the single-family house situated development normally occurs either in areas annexed on a third or a quarter of an acre in a suburban setting to existing municipalities with established governmen- is still a strong aspiration on the part ofmany, and in tal structures or within the confines or urban counties an age of prosperity an increasing number can pay that can cope with land development problems. the price. This difficulty must be resolved, because if the goals Finally, public attitudes and preferences represent of the new community are to be realized, a govern- one of the major imponderables in assessing the pros- mental structure is necessary to protect the develop- pects of new communities. Experience to datepro- er's plan and to realize such public objectives as the vides only scant indication of the public reactionto provision of a range of housing opportunities and the independent,diversified new communities. Those

104 areas with which people have been most familiar are features and it must be related to job opportunities primarily attractive suburban developments located and commercial and industrial development. Plan- in metropolitan areas. Response to innovative archi- ning for more economic and efficient landuse pat- tecture has been mixed. There is still a strong attrac- terns in new communities and large-scale develop- tion to single family quarter-acre lot houses, but clus- ments, including increased use of higher density town- ter townhouses at reasonable prices have also been house and high-rise housing, must be reconciled with popular. The residents of these developments have personal preferences and market demands which still been mainly of middle-income, white collar back- emphasize single-family lower density tract housing ground, although certain older communities,par- especially on the metropolitan area fringe where land ticularly those located near industrial sites, also have for satellite new communities or large-scale develop- some lower-middle income blue collar workers living ments is most likely to be available. in them. The question of public attitudes towarda However, perhaps the greatest requirement for the location away from existing urban concentrations and development of new communities is public recogni- a diversified population is more difficult to assess. The tion and acceptance. The public, in general, and pri- growth of many medium-sized cities out of metropoli- vate developers and government, in particular, must tan areas and the movement of industry to them become aware of the distinctive advantages ofnew would seem to indicate a willingness to seeknew loca- community development as one of a variety of types tions. The acceptance of a mixed population is harder of large-scale urban development. More important, to evaluate. Some opinion survey results and consider- they must recognize the opportunities presented by able practical experience indicate that vigorous efforts new communities in combatting such attendant prob- will have to be mounted if new communitiesare to lems of increasing urbanization as sprawl, blight, and overcome their tendency toward homogenized, eco- congestion; moreover, they must be willing to seek the nomically and socially segregated environments. realization of these objectives. Private andgovernmen- tal action clearly is required to provide the physical, THE CHALLENGE OF NEW COMMUNITIES economic, and social framework ofnew communities. For new communities to fulfill their greatest poten- Yet, if new community development isto be effective- tial as an element in national, regional, and State ly sustained and promoted, it must become meaning- urbanization plans, it is necessary to reconcile broad ful and relevant in human terms. The goals ofnew social goals with the economic objectives of develop- community development representone means to pro- ers. This will require a variety of urban design, insti- mote planned, orderly large-scale urban development and to achieve a balanced urbanization policy. Yet, tutional, and financial measures which can be imagi- as perhaps best exemplified in the attempt to provide natively related and effectively administered. Yet, a racial and an income mix in developments, these the sources of potential conflict arenumerous. For objectives are social as wellas physical. If the urban example, private developers cannot be expected to environment is to be humanized,as well as rational- bear the cost of generalized social benefits which may ized, it will require an expanded partnershipwhich flow from certain new community programs. The pro- goes beyond private and governmental action to in- vision of low-income housing will require creative clude and ultimately to dependupon public recogni- planning, public education, and special urban design tion, acceptance, and support.

1 Footnotes 1 Edward P. Eichler and Marshall Kaplan, The Com- 'Lewis Mumford, The City in History (NewYork: Har- munityBuilders(Berkeley,California: Universityof court, Brace and World, Inc., 1961),p. 518. California: University of California Press, 1967), pp. 1-10. Osborn and Whittick, op. cit., p. 48. Sir Frederic J. Osborn and Arnold Whittick, The New Lloyd Rodwin, Economic Problems in DevelopingNew Towns; The Answer to Megalopolis (London: McGraw-Hill Towns and Expanded Towns (New York: UnitedNations, Book Company, 1963), p. 7. 1964), p. 3. (Round Table Conferenceon the Planning and 3 Background study on "New Towns and Land-Use Con- Development of New Towns, Moscow, 1964). trols" prepared for the Advisory Commission and the National " The New Towns of Britain (London: BritishInformation Commission on Urban Problems by the American Society Services, 1964), p. 5. of Planning Officials, July 31, 1967, p. 12. Rodwin, op. cit., p. 24. 'Eichler and Kaplan, op. cit., p. 38. " "Stockholm, Tapiola, Cumbernauld," AIAJournal (July, Anthony Bailey, Through the Great City (New York: 1967). Macmillan Company, 1967), p. 31. " Urban Planning and Land Policies, Vol.II of the ° Lewis Mumford, "The Garden City Idea and Modern Supplementary Report of the Urbanism Committeeto the Planning," in Ebenezer Howard, Garden Cities of Tomorrow National Resources Committee (Washington, D.C.,1939), (Cambridge, Massachusets: The M.I.T. Press, 1965), p. 29. pp. 3-161.

105 n John W. Reps, The Making of Urban America (Princeton, " On Wedges and CorridorsA General Plan for the N.J.: Princeton University Press, 1965 ), p. 438. Maryland-Washington Regional District, October 1962 and " Roy Lubove, Community Planning in the 1920's: The "The Northern Virginia Regional Plan, Year 2000," 1965. ContributionoftheRegional PlanningAssociationof "Selecting Policies for Metropolitan Growth, January America (Pittsburgh : University of Pittsburgh Press, 1963), 1967. pp. 71 and 74. Diversity with Order, March 1967. " T. S. Simey, "Dynamic Cities," Town Planning Review, "Regional Development Alternative, March 1967. Vol. XXII, No. 4 (January, 1952), p. 208. "Policies for Planning the Richmond Region, 1965. " Report of the U. S. Housing Corporation, Vol. 1 (1920 ), "Recommended Regional Development Plan, 1967 and p. 40. Proposed Plan for the Capitol Region, February 1964. "Urban Planning and Land Policies, Vol.IIof the "Planning for People in North Los Angeles County: Part Supplementary Report of the Urbanism Committee to the ThreeThe General Plan, July 1961 and "The General National Resources Committee (Washington, D.C., 1937). PlanMalibu Area," March 17, 1964. " Roy Lubove, "Homes and 'A Few Well-Placed Fruit 17 Land Use Plan; Guilford County, North Carolina, 1966. Trees': An Objective Lesson in Federal Housing," Social General Plan; Fresno County, October 1965. Research, Vol. 28, No. 4 (Winter, 1965), p. 476. 49 Howard County General Plan, 1960, and "A Supplement OPaul K. Conkin, Tomorrow A New World: The New to the text of the Howard County General Plan to Guide the Deal Community Program (Ithaca, N.Y.: Cornell University Construction of New Towns, New Communities, and Large Press, 1959), pp. 307-309. Scale Neighborhoods," May 17, 1965. " See Albert Mayer, "Greenbelt Towns Revisited",a series " This account draws from Eichler and Kaplan, op. cit., pp. of three articles in The Journal of Housing, Vol. 24, No. 1 57-61 and Morton Hoppenfeld, "A Sketch of the Planning- (Jan. 1967), pp. 12-26; No. 2 (Feb.-March 1967), pp. 80 Building Process for Columbia, Maryland," Journal of the 85;.and No. 3 (Apr. 1967), pp. 151-160. American Institute of Planners, November 1967 (Volume 33, " D. Denit, "Boulder CityGovernment Town Problem," No. 5), pp. 298-409. Public Administration Review, Vol. XII (1952), pp. 97-105. " This account draws from Eichler and Kaplan, op. cit.,p. 23 At Los Alamos, the Federal Housing Administration 81. developed the master plan, drafted zoning ordinances and " Reston, Virginia; Analysis of a New Community (Wash- building codes, and surveyed and platted the entire area. ington, D.C.: Graduate Program in Urban and Regional " Eichler and Kaplan, op. cit., p. 21. Planning, The George Washington University, January 1967), Jack Meltzer, "Administrative Problems of New Towns," p. 33. Planning 1952(Chicago: American Society of Planning Ada Louise Huxtable, "Fully Planned Town Opens in Officials, 1953), pp. 77-78. Virginia," New York Times, December 5, 1965. " William H. Whyte, Jr., The Organization Man (New 5' "The Story of a Market Successand A Financial Fail- York: Simon and Schuster, Inc., 1956). ure," House and Home, August 1967 (Vol. 32, No. 2), p. 52. 27 Herbert Gans, The Levittowners: How People Live and " Ibid., pp.52-57. Politic in Suburbia (New York: Random House, 1967), Eichler and Kaplan, op. cit., pp. 151-154 and pp. 187 pp. 4-5. 196. Craig S. Noren, "New Towns in the United States" " See Council of State Governments, Economic Develop- (Washington, D.C.: National Association of Home Builders ment in the States (Chicago, 1967), for an excellent survey Land Use and Development Department, 1967), p. 5. of State programs for economic development. 29 In describing the investors in new communities this " See Advisory Commission on Intergovernmental Rela- account draws heavily on The Planned Community and the tions, Industrial Development Bond Financing, Report A-18 New Investors: Economic and Political Factors in Corporate (Washington, June, 1963). Real Estate Investment, by David Lee Peterson (Berkeley, " John H. Rubel, "Defining the Role of the Private Sector California: The Center for Real Estate and Urban Economics, in Overcoming Barriers to Urban Betterment," Troubled En- the University of California, 1967). vironment: Business Examines Social and Economic Barriers 30Ibid. pp. 12-14. to Improving Our Cities, Advanced Papers, A Symposium in p. 34. the Public Interest, December 8-10, 1965 (Washington: The Action Council for Better Cities), p. 11. "Change/Challenge/Resionse; A Development Policy for " Advisory Commission on Intergovernmental Relations, New York State. Building Codes: A Program for Intergovernmental Reform, "Connecticut: Choices for Action, 1967 and Urban Devel- Report No. A-28 (Washington, January, 1966). opment, 1966. " John W. Reps, "Pomeroy Memorial Lecture: Requiem 34 New Jersey's Future: Goals and Plans, 1967. for Zoning," Planning 1964, Selected Papers from the ASPO The Third Annual Report of the Statewide Comprehen- National Planning Conference, Boston, Massachusetts, April sive Transportation and Land Use Planning Program, April 5-9, 1964 (Chicago: American Society Planning Officials), 1967. p. 58. "Preparing for the Future of Missouri, May 1967. Edgardo Contini, "New Perspective for Urban America," " Metro-Towns for the Baltimore RegionA Pattern Urban America: Goals and Problems, The Subcommitteeon Emerges, January 1962 and Metro-Towns for the Baltimore Urban Affairs of the Joint Economic Committee of Con- RegionStages and Measures, February 1963. gress (Washington, D.C.), p. 268. 'Regional Plan Alternatives, September 1965. Eichler and Kaplan, op. cit., pp. 130-139. A Policies Plan for the Year 2000the Nation's Capitol, William L. C. Wheaton, "Form and Structure of the Metropolitan Areas," Enoilonment for Man: The Next 50 1961 and The Regional Development Guide, 1966-2000, Years, Edited by William R. Ewald, Jr. (Bloomington, In- 1966. diana: Indiana University Press, 1967), p. 174.

106 Chapter V Guidance and Controls for Large-Scale Urban Development and New Communities

THE ENORMOUS SPREAD of urbanization since the inducements to encourage better design and landuse. war and the prospect of even greater spread in the All may be present in a single instrument. Thus,a future has alerted the Federal, State, and local gov- zoning ordinance may set a minimum lot size standard ernments to seek ways and means of checking its of 10,000 square feet, which restrains the developer abuses and accentuating its constructive creative possi- from creating a lot smaller than that size. But at the bilities. While independent and satellite new com- same time, to induce the developer to set aside more munities give a chance to start fresh without the public open space, the ordinancemay allow him to handicaps of a pre-existing city pattern, even their cluster houses on 4,500 square foot lots if he consoli- most enthusiastic advocates recognize that they can- dates in a common green area a matching 5,500 not completely replace the more conventional type of square foot area for each house. Whilc land-use regu- urban expansion. This chapter then deals with land- latory devices often performmore than one function, use controls that would foster more effective large- it is useful to discuss separately their application to scale urban development generally, includingnew large-scale development and urban growth. communities specificallyand all with a view toward improving our urban environment. Existing land-use GUIDES AND STANDARDS controls and practices are summarized at the outset. Possible new approaches then will be explored. At In theory, a comprehensive plan is a statement, in times, the analysis will be suggestive and speculative words and graphics, of a government's determination and this is only proper, given the limited practicalex- as to how its jurisdictional area should be developed perience in the United States with general planning and appear at some future date. It is,or should be, and control of large-scale development. a guide to the large-scale developer in preparing the detailed plans for his property. LAND-USE CONTROLS, PRACTICES AND Under present law and practice, however,compre- PROBLEMSAN OVERVIEW hensive planning is likely to havemany weaknesses. For one thing, a government usually hasno clear au- Possible government action relative to large-scale thority to enforce compliance witha comprehensive urban development would have two purposes: one plan as such. Some enforcement ofa land-use plan essentially positive in character, and the othermore may be obtained through zoning in built-up areas, negative. First, if it is assumed th2.t large-scale urban but in undeveloped areas,especiallyagricultural and new community development is in the public in- zones within the urbanizing frontier, legal as well as terest, governmental jurisdictions could encourage political and economic pressures often -ombineto urban development on this scale and assist private make a comprehensive plan meaningless. Moreover, enterprise to operate at this level. Secondly, large- many jurisdictions appear to have no particular de- scale development imposes heavy burdens on the pub- sire to maintain the integrity ofa comprehensive plan. lic and can work against the public good when not This situation is especially true of attemptsto carry properly timed, located, financed, or designed. Gov- out county or regional plans, which almost withoutex- ernment, therefore, may need to develop and invoke ception, are the type of plans toencompass new com- certain controls to protect the commonweal. munity or other large-scale development. Moreover, Land use regulations may perform three functions. there are still relatively few plans for sparsely settled They provide development guides and standards,es- areas, partkularly for those in which large-scale de- tablish certain restraints on development, and offer velopments might be located.

107 Finally, comprehensive plans often fall short of be- excludes lower income families that are not considered ing comprehensive. In the first place, the same aspect "desirable"an improper objective. of development is often planned with less-than-per- Numerical zoning standards (such as, lot size, side- fect coordination by different governments, such as yard, building heights, and number of dwelling units the land-use plans of adjacent cities, or of a city and per acre) are expressed in terms of either a maximum a county. In other instances, different elements of the or a minimum, rather than of both upper and lower plan are prepared by different government entities, limits. Thus an area designated for high-density resi- such as a thoroughfare plan by the State highway dences will set a maximum of 40 dwelling units per commission, a land-use plan by the county or regional acre. There will be no assurance, however, that the planning agency, and a medical facility plan by a hos- zoning district will be used for apartments since the pital planning council. In addition, important ele- owner, if he chooses, may develop his property at only ments of developmem arc omitted from the compre- one unit to the acre or less. Most ordinances should hensive plan and, most significant for a new com- contain provisions establishing limits such as: "no less munity development, specific plans for housing based than 30 units and no more than 40 units per acre." on the income level of the population are rarely found This will assure a proper spread of housing types built in comprehensive plans for undeveloped areas. by private developers. Zoning is the most common and most powerful Many requirements to assure a complete and bal- land-use regulation employed by an overwhelming anced community cannot legally be demanded by a majority of local governments. Zoning acts as a guide municipality under the guise of zoning. For example, for development when it designates specific areas for a specific lot cannot be zoned exclusively for a church, specific uses, such as low-density residential, high- or a service station, or for a playground. Nor is it density residential, commercial, and industrial uses. possible under zoning to insist on a minimum or a In its application to large-scale development, how- maximum cost of the housing built in a certain area ever, conventional zoning practices have many weak- a necessity if a new community is to provide the nesses. In open, undeveloped or rural areas, zoning's requisite economic range for a diverse population. usefulness as a guide to urban development is limited In general, then, reliance on zoning for a precise because the districting is so general as to be meaning- detailed allocation of land uses prior to the prepara- less or the area is zoned exclusively for agriculture or tion of a detailed plan for a new community, is im- low-density residence thereby ruling out the range of practical, and unnecessarily inhibiting to the devel- uses necessary in a new community. As was pointed oper. After the project is built, of couese, zoning is out before, legal, political, and economic pressures on a useful tool to maintain the integrity of the project. zoning in these undeveloped areas make it difficult, Most of the comments on the inadequacy of zoning if not impossible, to hold to a zoning plan, no matter also apply to conventional subdivision regulations. how appropriate it might be. Local subdivision regulations do not serve as a guide Another problem with conventional zoning is that to the precise design of new communities. They are it was originally designed for building on a lot-by-lot, primarily collections of standards that the developer piece-by-piece basis. Its purpose primarily was to pro- must meet. Subdivision regulations generally give de- tect the individual property owner from an incom- velopers greater discretion than zoning provisions. In patible or harmful use next door or in the neighbor- addition, many of the standards used in subdivision hood. While such protection is still essential in built- regulations, especially street and utility standards, up areas, the many detailed standards required for must be retained in any system of land-use regulation established neighborhoods are unnecessary when an that might be established for large-scale development entire neighborhood or community is designed as a or new communities. unit and built according to an original comprehensive Yet evidence exists of discrimination in some com- plan. Such detailed standards tend to inhibit creative munities where improvement standardsare set unduly design and can cause diseconomies for large-scale development. high thereby making it impossible to build low- and In many jurisdictions zoning is used not as a guide moderate-cost housing. There also isreason to believe for development, but, inadvertently or otherwise, as a that some communities specify excessive improvement means to prevent urban development. It is in these requirements to discourage development, just as they municipalities that the administration of zoning is use excessive zoning requirements for the same pur- most likely to be strong and unwaivering. In some poses. cases the objective is to control the timing of develop- Some local jurisdictions have adopted a planned ment and prevent leapfrogginga proper objective, unit development (PUD) ordinance to handle large- but zoning is an improper means to achieve it. In scale, single ownership projects. These ordinances other cases restrictive or large-lot zoning effectively could be and are, in many instances, the model for

108 much of the land-use regulation needed fornew on public facilities and finances, even though develop- towns and new communities. ment of the proposal at some future date is entirely The distinguishing characteristics of the PliD de- proper. velopment technique are that it combines zoning and Permanent prohibition by local governments ofun- subdivision control procedures ina way to permit wanted development under their policepowers is greater flexibility in design. While the rigid numerical, difficult. While communities have hadsome success zoning district standards are replaced with broad in prohibiting development in flood plains, localoffi- flexibility in land-use allocations, there is detailed ad- cials are finding that for optimum prevention of flood ministrative review and approval of specific plans. De- damage, police power ordinancesmay violate due sign review, however, isordinarily specified very process and compensation to property owners may be broadly;thusthe PUD techniqueestablishes necessary. standards, but does not designatea specific design The zoning power generally has proved unsatisfac- scheme for the developer. tory for land conservation. Preservation of land for The use of PUD ordinances has increased rapidly agricultural uses is extremely difficult to maintain in during the past four or fiveyears; yet legally its use the face of the onslaught of urban expansion. Some- has not been clearly established inmany States. Only times temporary restraintscan be enforced on con- five StatesArkansas, Connecticut, Hawaii, Indiana, servation lands that should remain permanentlyun- and New Jersey have adopted enabling legislation developed. Development of wetlands, for example, authorizing the PUD development techinque for local might be prevented so long as theowner is unable or jurisdictions. A sixth StateNew Yorkhas also unwilling to meet stringent drainage requirements. acted, but there appears to besome question whether But if he is willing to incur theexpense of installing its authorizing statute is adequate. Inany event, until adequate drainage facilities, a prohibitionon develop- specific State enabling legislation is provided in the ment would probably lead to a violation of dueproc- remaining nine-tenths of the States, the potential ess. PUD will not be fully realized for large-scale andnew Courts universally have held that zoning private community development. land for public purposes, suchas recreation, amounts Another major limitationon the potential use of to confiscation. One alternative device used to prevent PUD by local governments is thatproper administra- development on land desired for publicpurposes is tion of the ordinance requiresa great deal more ex- the "official map." Employedmore often for high- pertise than conventional zoningor subdivision regu- ways than for parks, the official map designates those lation. Relatively few small local jurisdictions with land parcels needed for future publicuse. Once it is potential as new growth centers presently haveaccess adopted by the local legislative body, the landowner to properly qualified planners for PUD administra- may not initiate development of any land earmarked tion. for highways or parks. The landownermay appeal the Finally, most PUD ordinances permit the developer official map designation in whichcase the community the option of requesting approval of his projectas a must purchase the parcel or remove the restriction. planned unit developmentor electing to operate un- Usually the community has 12 months afternotifica- der conventional land-use regulations. Even though tion by the landowner in which to complete thetrans- the public could expect substantial advantages under action. the PUD technique, the developermay choose the The official map can be effective forpreventing other route. Under present laws, the PUD review large-scale development of technique is not mandatory for the developer. areas needed for public purposes only where the community has statutoryau- RESTRAINTS thority to use the technique and the fundsto purchase the land if the designation is challenged. Land-use regulations Au- may be designed to restrain thority to adopt an official large-scale or new community development and this map has to be specifically usually occurs in either of two types of situations. granted to local governments by the State enabling First, permanent prohibition of development might acts. Presently, 26 States give their communitiespower be desirable when a project is proposed fora location to reserve streets by adoption of an officialmap and not suitable to development because of topographicor 13 permit the reservation of park and playground other natural conditions, or when it is contrary toa areas.1 Yet, even within those States authorizing the future land-use plan and the site is proposed foran- official map, relatively few communitiesusethe other use. Second, temporary prohibition of develop- power. The official map technique is generally lack- ment might be desirable when the timing of the ap- ing in predominantly ruralareas in which large-scale plication for construction approval is not appropriate urban developmentor new communities might be because of location or because of a substantial burden proposed.

109 Communities have had unusual difficulty in hold- requiring developers to pay for mains large enough to ing land which is zoned for industrial use in undevel- later serve all the intervening undeveloped area. In oped areas. Prime industrial land is usually flat, has such cases, the developer will be reimbursed for the good access to highway and railroad transportation excess cost as the landowners in the gap subdivide (and sometimes to watcr transportation), is subdi- and pay the municipality for tying into water and vided into small parcels, and contains a minimum of sewer mains. Heavy utility charges then may slow existing nonindustrial development. These character- down leap-frogging and when the developer is willing istics, unfortunately, also make the site desirable for to pay these charges, the providing community is re- large-scale residential and commercial development. imbursed for some of the public costs of this kind of Because of the relative scarcity of good industrial development. sites in most communities, land should be set aside Many municipalities wrongly use zoning to post- five to ten years in advance of need for this purpose. pone development. A common practice is to zone out- Local policy, however, is vulnerable if demand for lying land exclusively for agriculture use, or more of- residential or commercial land occurs earlier. Local ten and more effectively, to zone for very low-density, officials would be under considerable pressure to per- single family residential usetwo to five acre mini- mit a different kind of development. Furthermore, mum lot size. However, if the purpose of large-lot the courts have not ruled favorably on the retention zoning is to postpone more intensive development of of exclusive industrial zoning in cases where there is outlying sections until some more auspicious future an immediate demand for residential and commercial time, the community should not allow any develop- development. ment of the area (making it a holding zone). Even The most effective method to retain land for in- low-density development will fix the pattern of future dustry appears to be public ownership by establish- development and eventually require provision of pub- ment of a land bank, with the land to be sold or lic facilities and services. The initiative for better land leased later for private industrial development. This use allocation will be lost then. Finally, as was pointed technique, however, faces many hurdles.2 First of all, out earlier, large-lot zoning is used by some com- local governments rarely have money to buy substan- munities not to postpone development, but to prevent tial amounts of land on the open market. Secondly, the type of small-lot development that imight bring there is a strong tradition in many communities of "unwanted" economic and racial groups alto the com- opposing public purchase of undeveloped land to be munity. sold for private use. Finally, if the land is purchased Two real estate taxation techniques alOo have been to delay or prevent immediate development, questions suggested to assist in preservation of open space and of fairness arise that otherwise would not be raised if in the staging of development. These techniques--- the land was acquired for public use. preferential assessment and deferred taxationare de- If the outlying development requires central city signed to provide a measure of tax relief to farm land water and sewerage, the central city is in a good posi- owners on the fringes of growing cities. Under prefer- tion to control the location of fringe development and ential assessment, the assessment of farm lands and prevent leap-frogging. It need only to refuse to extend open space lands is based solely on their actual use the facilities. In parts of the country where water is value rather than on their fair market value which scarce, this is particularly effective. In those few com- would reflect urban market values. Deferred taxation munities having municipal power plants, denial of is designed also to lighten the tax burden on owners electric power can also be used to guide growth more of open space lands, but it provides a means of re- efficiently. couping lost tax revenues when the lands are devel- Compete denial of public facilities to a would-be oped for urban purposes. developer, however, is actually infrequent. Most pub- In terms of furthering their ostensible goals, both lic officials are hesitant to use such drastic measures approaches appear to have some basic deficiences. and, in many instances, State laws or the State utility Both are primarily tax relief measures and appear to commissions forbid denial of services to outlying new be an ineffective means to preserve open space and development. stage urban development.3 Recent studies suggest that Several techniques short of denial may be used, real estate taxation based on assessment of fair market however. Before extending utilitks, the municipality value probably does not "force" owners of open space might require annexation or annexation with a fixed land to sell out to speculators to any greater extent fee per lot. On the other hand, a municipality might than fair market assessment forces owners of devel- make an unusually high charge for water and sewer oped urban land to sell their properties. Moreover, in serviceas much as double the in-town rate. Requir- most States, assessments measures must apply equally ing developers to pay all costs of main extensions is to all property owners who are similarly situated in fairly common, and increasingly municipalities are the urban fringe area. Therefore under preferential

110 assessment, a speculator ownin6 undeveloped or farm bulk, anc1 ground coverage contained in the zoning land within the path of development thus is givea a ordinance. In building under a land-use intensity great incentive to hold his land out of devel:ipment in reviation, the developer is allowed much more free- anticipation that annual increases in value will exceed cl jm for economical and attractive design. But land- low taxes. The effect would be to further push devel- use intensity regulation offers advantagesprimarily opment out into the fringe area and compound the on the scale of large, multi-family housingprojects problem of leap-frogging. and tract development, rather than as a major induce- Nevertheless, few would deny that public tax poli- ment for the establishment of new communities. cies do have an impact on urban development. This Rezoning, of course, is not a new device. However, subjectgiven its scopedeserves a:. extensive, in- a stated public policy on rezoning limited only to depth study with consider,.titm given to both real large-scale development can be a very powerful in- estate and income taxation techniques for dealing cl' icement. For exampk, a county might zone an area with prr,!blems of urban fringe area development. fc r half-acre single fa:nily lots as the safest designation to discourage piecer.neal, small parcel development at PDUCEMENTS the same time. A rezoning policy might include per- A number of new planning and land-use control mitting a mixture of commercial and higher density techniques can serve as inducements when they are residential use for large preplanned projects of 1,000 offered for large-scale development and are withheld acres or more. This would give more freedom to de- for small-scale development. Because of the nature of velopers to allocate land uses within their projects and zoning and subdivision controls, inducement can only would er :.ourage new large-scale development. take the form of relaxation or removal of the rigid The !Armed unit development techinque, in effect, requirements of these ordinances. This can be done discar is the rigid dimensional standards and use regu- in several ways. The following cover the most com- lations of conventional land-use controls and thus monly used techniques. serves as an important inducement to large-scale and Conventional zoning and subdivision regulations r ew community development. It substitutes a single control residential density by specifying minimum lot review process for the customary three :(1) platting sizes. In density zoning, this is translated into the num- approval under subdivision regulations; (2) land-use ber of dwelling units per acre. For example, the re- reclassification under zoning; and (3) building site quirement for a 10,000 square foot minimum lot area layout review under the building and zoning codes. becomes 4.36 dwelling units per net acre. Density A planned unit dcvekTment ordinance also generally zoning allows the developer to design the site for more will include the advantages of density zoning, bonuses, economic construction(clustersubdivision)and, and rezoning for diversified use. when combined with "general" residential use, allows The cost of improvementsstorm and sanitary the builder to use every type of residential building sewerage, water supply, streetsin new subdivisions (single family, row house, apartment) so long as the is greater than the cost of the raw land, often by a overall density for the area is maintained. factor of two or more. In many local jurisdictions the Bonuses are commonly used in central business dis- standards for improvementsminimum pipe sizes, trict zoning, where a developer may exceed the maxi- pipe material, width, thickness, and materials of street mum allowable floor area if he leaves open space on surfacingare, in the opinion of developers, unneces- the ground level, rather than cover 100 percent of sarily high. The justification given for these high the lot with his building. Bonuses can also be used in standards is that with small, piecemeal development, outlying development. For example, in a district zoned the local government must add an unusual factor of for four units per acre, the community might permit safety, because it cannot precisely foresee the intensity an increase to five units per acre if 15 percent of the of future development in the area surrounding the land were dedicated for a public park. Under straight proposed subdivision. The developer, in effect, must density zoning, the developer could erect 400 units share in the improvement costs of areas outside his on 100 acres of buildable land. Under the bonus pro- project. In a large-scale development, on the other vision, if he dedicates 15 acres for a park, he would hand, it is possible to predict more accurately the be permitted to build 425 units on the remaining 85 amount and kind of street traffic, water consumption, acres. waste generation, run-off and drainage pattern, and Land-use intensity regulation involves a rather com- other changes that affect improvement design. The plex formula based on floor area ratio, usable open required improvements serve only the area encom- space, off-syreet parking and several other factors. passed by the project and because of this, improve- Under it, a developer is permitted to ignore the usual ments need not be overbuilt and no extraordinary fac- rigid dimensional limits on yards, building heights, tor of safety is necessary.

111 LAND-USE CONTROLS IN THE LARGE-SCALE A governmental agency will have primary responsi- DEVELOPMENT AND NEW COMMUNITY bility for the administration of large-scale development. There is no single, patently obvious way to regulate Some form of management group (whether it be a land use in large-scale developments. Their size and private developer, a quasi-public organization, or a the time required for completion will necessitate a governmental agency) will propose and implement variety of land-use regulatory measures, some coming large-scale development. into use immediately, others after the new community The site, which may range in size and complexity is well under way. A 100 acre tract of land within a from a full-scale large development or new com- large-scale development, for example, might well pass munity, to a tract development, will be under single through a succession of regulatory stages. Because of ownership or management control. its distance from the first stages of construction, such an area may be placed initially in a holding zone. As Given these assumptions, the following tools and development moves toward it, the reserved area may techniques represent some of the means by which be reclassified as a development sector, where any of large-scale developments and new communities may a number of higher-intensity uses may be permitted. be regulated. Once development is imminent, planned unit district PRE-DEVELOPMENT TECHNIQUES regulations may come into playimprovement standards would be set, land-use allocations determined, Regulatory techniques for the pre-development and design review standards applied. When construc- phase should be thought of as a bundle of legal tools tion begins, deed covenants may be placed on those to implement policies embodied in the approved plans structures built. Over a period of years, conventional for the large-scale development and on a broader zoning standards would be needed as re-use of the scale, as devices to guide its development from site land or changes in the intensity of land use are pro- selection through construction. The plans per se are posed in the area. In 30 or 40 years, the area may be not regulatory devices, yet they can become the basis ripe for improvement, with renewal powers applied, for land-use controlnot just in theory, but in fact. in which land may be acquired through eminent do- The large-scale development's comprehensive plan main for some other re-use. should be the starting point for determining which The following discussion will examine a number types of regulations should apply for given areas with- of land-use regulatory techniquessome tried, some in the townsite. Ideally, the plan should indicate the experimentalthat may warrant consideration in anticipated timing and intensity of large-scale devel- guiding large-scale urban developments and new opment. It might show these areas to be developed communities.4 No attempt is made to devise an ideal intensively or at lower density; those areas where a regulatory mix to guide such developments in every mixture of compatible uses will be permitted; and locale and under all circumstances. areas where development should be permanently or At the initial stage of building a large-scale devel- temporarily prohibited by creating land reserves. The opment, land-use regulations should permit flexibility kind of land-use controls needed for a specific area of development, since its plan cannot be precise. then would partly depend on the plan's designation Changes in the plan probably will be made as sec- for that area. tions of the development are built, experience is Traditionally, most comprehensive plans have failed gained, and conditions change. After development has occurred, other land-use controls should come into because the means to implement their proposals have play, allowing for some change, but providing greater been lacking. But the single ownership or manage- protection for existing uses and structures. These ment and coordinated development possible in a large- would be more akin to present-day zoning, permitting scale development or a new community makes it certain changes without destroying the town's stability easier for the entire site to be developed according to or the balance attained through the compatibility of an approved comprehensive plan. uses achieved in the initial stages of development. Clarence Stein has called for rejection of "planning To reflect this shift from the construction to the by negation" in discussing the design and realization functioning-town phase, land-use controls may be of new communities. Restrictive limitations on height, divided into two categories: pre-development and bulk, density and use, which have been the planner. post-development. In discussing both types, several zoner's characteristic stock-in-trade cannot help much assumptions have been made: in shaping new communities; in fact, if too much re- Specific development policies affecting the location, liance is placed on rigid regulations at the outset of character, and timing of large-scale development development, difficulties will surely arise. Goals and will have to be enunciated. policies, refmed by principles of aesthetics and con-

112 struction engineering are much more legitimatecon- ies.8 These approaches might be consolidated into a ditioning factors: 5 single procedure for fulfilling pre-plan data require- In creating New Towns, planning and building go hand ments, including both the general study of factors re- in hand. They must be united as two inseparable parts ofone lating to the townsite's urbanization potential(i.e., process As city architect or civic designer...[the the checklist method), and a rationale for the specific new town planner] must mold form and mass as well as predetermined city plan or outline. blend of land-use designations embodied in a proposed plan. Where more public encouragement is The record indicates that developers usually assume needed to start large-scale development, the Stateor the major initiative in developing large-scale develop- Federal Government might providesome of this infor- ments. This is due, at least in part, to local govern- mation, presenting a partially-completed comprehen- ments' lack or foresightsymbolized by their general sive plan to interested developers. failure to provide guidance--even by negation, for More detailed plans should be preparedas areas such projects. Yet. the developer should know what become ready for construction. The developmentarea the affected local governments want before he goes plan, which should be based on the general policies too far. The local planning agency could eliminate established in the comprehensive plan, should provide much of the guesswork on the developer's part by in- a more precise blueprint for development. Ideally, it dicating, before any plan is proposed, what policies should be the key to the type of pre-development are considered essential for a large-scale development regulations selected for a specific area and eliminate or a new community that falls within its jurisdiction. friction that might otherwise arise between the build- The government agency could help the developer ers and regulators. by giving him guidance in two areas of policy, around A good deal of latitude within broad limits should which the large-scale development's comprehensive be given the developer toencourage creative area plan should be built. The first would spell out its planning for large-scale development andnew com- goals in light of applicable policies developed by the munity construction. Predetermined upper and lower State or region.6 State and regional plans, forex- limits for densities and, perhaps, percentage alloca- ample, may call for the creation ofmore diversified tions of the total area for particular uses, (e.g.;no job opportunities for residents of the region, and the less than 2 percent and no more than 10 percent of local policy might be refined to specifya need for ex- the particular development areamay be devoted to pandable industrial sites which makeuse of natural commercial uses) would encourage the developerto resources,transportation advantages, and employ- find more imaginative as wellas economical means of ment potentials available in the development site. developing a subdivision. The developermay also pro- The second type of policy consideration would in- pose using construction materials and methods that dicate local preferences. A particular architectural otherwise might not be permitted undera standard- style may be considered highly desirable in the local ized, inflexible building code. Similarly, by taking ad- context or plans for a new junior college desired by vantage of density transfer options or bonus incen- area residents might be looked upon with favor. Be- tives, the developer mightpropose site layouts that cause State, regional, and local policies will vary will provide for more effectiveopen space, parking, greatly, any atempt to constructa model for compre- access, and other facilities and amenities. hensive planning policies with nationwide applicabili- Development areas of the same classification (i.e., ty would be fruitless. planned unit development, development intensitysec- The developer should also receive guidance from tor, reserved lands discussed below), need not neces- the public agency concerning criteriaupon which the sarily have identical development standards. Sincea comprehensive plan should be based. The Baltimore single developer is involved, there isno reason why County Office of Planning and Zoning, forexample, all areas destined for planned unit development, for has established an "interim developmentmodel" with example, must conform to thesame development which to measure proposals for large-scaledevelop- standards. An effort should be madeto encourage ment. The developer then knows what information distinctiveness, with standards geared to achievingan the planning agency needs for itto make a sound individual neighborhood character. Byway of illustra- judgment on anew community proposal. tion, Figure 5 depicts a schematic relationship be- Two approachesare presently used for review of tween development area policy and land-use controls large-scale development: (1) the checklistmethod, for a new community. requiring data ona number of planning elements Since a large-scale developmentgrows in stages, the ranging from water availabilityto population projec- timing of an area's development isa key factor in de- tion; 7 and (2) the ordinance approach,specifying termining which regulations (or incentives) should numerical standards forstructures and percentage apply to that area. The types of land-use controls ceilings for land devotedto certain land-use categor- needed to carry out a particular developmentarea

310-335 0-68-9 113 F/GURE 5. SCHEMATIC CLUSTER OF LARGE-SCALE AND NEW COMMUNITY DEVELOPMENT AREAS RELATING Controls:Policy:FIRST industry,DLVELOPMENT industrial homes performance for workers.AREA standards, den- POLICY AND LAND-USE CONTROLS Policy:SECOND additional DEVELOPMENT residential, AREAmajor park. ResultingBonuses: density development:density, andschools,sity price and industrial low-cost churches,pricetransfers. regulations. park,homes shopping. medium with Site neighborhood review. ResultingBonuses:Controls: additional liberaldevelopment: densityintensityreserve;Site density review, andmedium sector. allowance price land and reserve. forhigh in- pedestrian walks to future regulations. high-park Bonuses:Controls:Policy: CBD,use overlay credits high-risecivic tions,parking, for center. higheretc. office height, towers; and bulk credits regula- HIGH-INTENSITY SECTOR apartment, services.futureandcome, houses, single-family high-rise detached, luxury medium income high-intensity; large apartments near park; school Controls:Policy:THIRD junior DEVELOPMENT land college reserveindustry, campus, buffers, regional AREA residential, moderate shopping resi-light center. Resulting development:residentialdowninterchangefor pedestrian boulevard towering areas, with plazas, etc. broadand covered pedestrian plazas parking, permitting walkways view to core around etc. Policy:FOURTH apartments DEVELOPMENTwhite-collar AREA workers, RDU for for small families, mid-high single Bonuses: density transfers;campusmercialperformancedential density expansionimprovements,amenity standards, regulations creditssites, Siteshopping forindustrial with review. RDU, center's and industrial cov- com- ResultingBonuses:Controls: development: usc RDU, holdinghomestion,income garden inofficezone, .i(DU. detached apartments, park.site plan homes. review. few Commercial credits for large lot, expensive recrea- Resulting development:R.DU,services.industrialmiddle-incomeered campusregionalwalks parkand surroundedshopping sculpture. buffered center, by by neighborhood wide belts of homes, town houses, small complex.ingGolfhigh-rise zone. course, Small with swimming studio office units, club park withinlarge-lot near apartmentlarge RDU hold- held. plan should be based on what has been taking place device can be used to combine subdivision controls and in areas already built-up as well as on what will take zoning district regulations, eliminating extra steps by place on lands still undeveloped. considering all aspects of proposed development, from Suppose, for example, that the intention is to build street widths to side yards, in a single site planreview." homes for employees of manufacturing plants locating While there have been some outstanding planning in the new community in the first development area successes under PUD, financial success seems not to (see Figure 5),Land-use regulations covering this have kept pace. The developer's problems and some area then should be tailored toimplement the policies of the weaknesses of PUD already have been noted. applicable at this stage of the community's develop- Since PUD regulations may serve as the primary reg- ment and to particular circumstances,such as the ulatory basis for initial large-scale development, their area's location or its priority of construction. Policy restrictiveness or permissiveness clearly have a great may dictate that low-cost housingbe provided, so the bearing on the success of the development in terms type of structure, perhaps even the price of thedwell- of the economic realities with which the developer ing units, might be closely regulated. Since it is the must deal. Controls then could be designed and ad- initial area to be developed, it may be quite accessible ministered to relieve conflicts that occur in the var- to a major highway; relatively high densitiesthen ious problem areas. Withholding some of the more may be required to make best useof well-located res- attractive planned development options from small, idential land. Buffers will be needed to separate in- multiple-owner tracts, and making them available only dustry from residences. These and other considerations to the large-scale development PUD, for example, will determine the controls needed for the first de- mayencourage voluntary land assembly. Explicit velopment area. PUD guidelines, including both upper and lower The next area to be developed (see Figure 5) may permissible limits, would simplify marketing analyses. also be intended for housing, but a broader range of Moreover, financial inducements, such as cash flow housing types, densities, and prices may be offered to guarantees to achieve a public policy concerning low- compensate for the more limited choices in the earlier income housing, could greatly assist the developer development area. Fewer, less-directive controls will with what, to date, has been the most critical prob- be needed here. For example, no special regulations lem in new community financinglong delays before are needed to make industry compatiblewith housing purchase money begins flowing back into developers' and more leeway can be given to the developer with accounts.12 regard to build-design and lot size. If the area abuts PUD regulations which encourage open spaces, to- land where a high-rise office complex is proposed, the gether with performance criteria, would assure greater developer may be entitled to bonuses if he provides compatibility among uses than rigid districting." Lit- pedestrian walkways from homes to nearby work tle, however, has been done to date even through the places. planned unit development approach to permit differ- Since each designated area is developed as a unit, ent uses in proximity to one another. But, on a large regulations should be adopted to best fulfill its intend- scale, there is great potential for mixing uses within ed function as a part of the completed large-scale development areas, thus eliminating the need for development.9 Although controls are packaged for separate use districts." Special "planned community" each individual area, specific provisions or bonus in- district ordinances such as those in Fairfax County, centives could be employed to assure compatibility Virginia; Howard County, Maryland; and Orange County, California, look toward this goal. when adjacent construction takes place. Later, when If the developer has been given sufficient guidance, reserved lands are considered for development, they he will have a general idea of what uses can be ac- can be "annexed" to a built-up area by being de- commodated in each development area. He also will veloped to conform to the latter's character. On the know what is expected of him in terms of explanatory other hand, a new development area, with functions data to substantiate his proposal for PUD and will of its own, may be carved out of the reserve. be aware of the densities, performance standards, and Planned Unit Development. Planned unit devel- other requirements, that must be met. opment isthe prototype for land-use regulations With reference to procedure, the developer first needed at the pre-development stage of a large-scale must prepare and submit his PUD proposal for redevelopment or new community. Many counties and view. Before accepting it, the public agency may sug- municipalities have enacted planned unit development gest certain modifications or additional conditions that ordinances and most new communities in the United must be incorporated in the proposal. Before construc- States have been built under this type of regulation. tion begins, individual sites (i.e., lots) should be iden- Few jurisdictions, however, have actually coordinated tified and platted, by legal description, on the devel- zoning and subdivision regulations under PUD.1° This opment area plan. 115 A deed should be prepared and filed for each lot. guarantee low-cost housing opportunities." Density The conditions which have been accepted for the con- transfer which allows credits to apply for both higher struction and use of developed sites should be for- and lower residential densities, together with a sixni- malized in the deed so it may serve as a continuing lar credit system on dewelling unit pricing, might in- control on the subject property. The requirements sure a wider range of housing opportunities. The pub- should cover such things as accessory uses, parking and lic agency could further encourage ample low-cost loading requirements, auxiliary structures, and sec- housing with subsidies in the form of cash flow guar- ondary uses compatible with the primary use. Inas- antees to tide the developer over these early, low- much as development areas and individual structures pro fit construction projects. within them are subject to site review, district regula- These various regulations which allow the devel- tions are not necessary. By including covenants in the oper to obtain credits toward what may be more prof- deed to the property, a legal basis for these conditions itable construction in the future, probably would be and any performance standards can be assured. It confined to large-scale developments having sufficient would be necessary, of course, to assure that the pub- land to allow phased development. Site plan review lic agency or its successor in interest (e.g., a future and other aspects of the planned unit development new community municipal corporation) hasstanding approach, however, would be applicable to urban to enforce the deed restrictions. It may also be advis- growth centers and to smaller tract developments. able to allow similar standing to the developer when They have already been applied on a smaller scale in the deed is conveyed, or when the developer retains existing communities, sometimes for two to ten acres an interest (i.e., a managerial function) in the large- and in some cases, for even less. In fact, most conunu- scale development. nities could use this technique to their advantage." In formulating guidelines for planned unit develop- High-Intensity Sector. Certain areas of the large- ment, the positive role that can be played by bonus scale development, such as those near proposed high- incentives should not be overlooked. Heretofore, way interchanges, may be best suited for high-intensity bonus arrangements have applied primarily in high- development. Once this is established such lands should density districts where a developer is allowed to in- be designed as high-intensity development sectors. crease building height in exchange for providing more Within these sectors, PUD-type regulations would open space. There is no reason, however, why a devel- apply when the local authority received an application oper who provides pedestrian walks or covered park- for development. ing spaces in a large-scale development PUD should Even though single family lots may be more mar- not be entitled to creditse.g., relaxation of stand- ketable near a highway interchange, especially during ards covering less-intense development (i.e., in a pri- the first stages of development, the public agency marily residential area). should prevent misuse of this prime land. Short of Other bonus incentives could be used to implement outright prohibition of low-density development at public policies as well as to solve some of the more such locations, the local government might redirect difficult problems the developer faces. Density trans- such development elsewhere through subsidies and fers would let the developer, who complies with den- other positive encouragements. sities that tend to fulfill new community goals (e.g., While transportation foci are probably the most ob- townhouse clusters to provide homes near employment vious locations for intense development, other possibil- centers),have greater flexibility in choosing how ities include sites accessible to several neighborhood- many units per acre he builds in later development type planned unit developments in need of a central areas. Here the developer, in effect, would have place for specialized shop and office facilities; sites greater discretion in responding to future housing particularly suitable for heavy industry; or even sites demand if he complied with the public agency's wishes where high-rise buildings could command spectacular during the early stages of construction. views. Pricing transfers could also benefit the developer. The "development sector" concept *as suggested By providing needed low-cost housing early, he might for application in Anne Arundel County, Maryland," be able to build more lurury apartments and expen- for maximum development of areas of prime land sive homes for the upper-income market later on. Ed- centered on proposed freeway interchanges. Five high- ward P. Eichler and Marshall Kaplan have described intensity land uses were recommended for location an arrangement worked out between Janss Corpora- in these sectorsranging from medium-density resi- tion, the developer, and Ventura County for density dential to planned industrial districts. A mixture of transfer.15 This procedure allowed Janss to build to uses was presumed. higher densities in later construction stages, but it As discussed in chapter IV, self-containment is a neither assured mixed densitybecause the developer prime requisite of new communities, and highly de- might never take advantage of his creditsnor did it sirable even for tract developments. Therefore, it 116 would be well to relate the timing of intense develop- Several techniquesall variations on the reserved- ment directly to the growth of neighborhoods for the lands thememight be employed to accomplish these town residents who will shop and work in the non- purposes. In a given development, one technique, or residential development sector. Many employers, for a combination of them all, might be employed to in- example, will demand good housing for their employ- sure opportunities for the future balancing of land ees before they build their plants or commercial facil- uses within the developed area. These techniques in- ities in the new community. clude: reserved development unit (RUD); expansion Regulationspertaining tohigh-intensitysectors sites; 1Ading zones; and land bank withdrawals. would conform to the same site plan review proce- The reserved development unit (RDU) is simply dure that applies to planned unit developments. The a planned unit development which has tentatively major distinction between PUD controls and those been approved, without detailed plans, fora certain for high-intensity sectors is that the latter would pro- use or uses. However, the existing development control hibit low-density uses and, accordingly, would incor- legislation adopted by Orange County, California,and porate additional standards, such as sector overlay Howard County, Maryland, provides that thecounty requirements for view protection, parking, and archi- may require that future use designations and major tectural uniformity. These controls would probably arterial routes be identified in the reservedarea plan. not be necessary in less-intensely developed areas. Generally, the RDU designation should beaccom- In regulatory terms then, high-intensity sectors are panied by a guideline figure specifyingwhat density hybrid development areas. They would be proposed the reserved area might accommodate in thefuture. and constructed under PUD-type procedures but not Construction of other parts of thenew community until there was a need for the intensive uses. Through would take place beforea reserved area was de- the use of sector-wide overlay regulations, however, veloped. The filling-in of this designatedreserve they would adopt some of the districting features of would occur when market demand and availabilityof traditional zoning. Because proper timing is essential capital dictated its development. for the successful development of these sectors, they The RDU ordinarily would be used for residential can be looked upon as a bridge between true planned development and should be thought ofas a device to supplement a planned unit development. For unit developments and reserved lands. Although each example, the industrial or commercialarea may provide sector should be designated in the comprehensive more jobs than residents of existing planned residen- plan, construction should be deferred until surround- tial neighborhoodscan fill. The RDU would allow for ing devebpment brings in the population baseneces- new or expanded residential neighborhoods to house sary to sustain its offices, shops, and other central- the needed additional workers. place facilities. The RDU approach is amenableto all types of A final observation concerning development sectors large-scale urban development discussedhere. Because stems from the earlier one that large-scale developers it is primarily concerned with thereservation of land need not be bound to a single, standardized approach for later residential development, it is applicableto for all developments of thesame type. The mixed tract development as well as to self-sufficientnew high-density uses inferred from the Anne Arundel communities. County recommendations might well be employed in A holding zone, usually located at thenew commu- the majority of cases; but special-purposesectors nity's outer edge, can be employed fortwo related might also be desirable in some instances. Civiccen- purposes: to provide room for expanding certain uses, ters, centralized convention facilities (including both and at the same time, to prevent premature develop- exhibition halls and hotels), office parks, and regional ment of areas where town services are not yet avail- shopping centers are among the single-purpose devel- able.18 In the context of anew urban growth center opments that would lend themselves to construction especially, preventing leapfrog development isa vital within a development intensity sector. consideration. Unlike the RDU, the holding zone is Reserved Lands. Reserved landsserve three basic not immediately available at the developer's option. A purposes in the new community context. Some would waiting period is expected and should be enforced. cater to the recreational and psychic needs of the resi- When the large-scale or new community develop- dents for large open space. Others would provide flexi- ment is otherwise complete, a decision should be made bility, allowing adjustments to be madeto satisfy the as to whether a holding zone area should continue to community's requirements for additional land forpar- be held in reserve ; whether some of it should be de- ticular uses. Still othersmay become greenbelts and veloped; or whether development is not needed. In serve as the perimeters of the townsite and as a means the last case, the holding zone could easily be incor- of achieving a sense of self-containment. porated into the greenbelt or other low-intensity uses.

117 :- Expansion sites are oversized parcels needed to ac- to accommodate large-scaleadjustments in signifi- commodate the projected expansion of individual en- cantly large areas of the townsite. Otherdevices, such terprises. A shopping center, manufacturing plant, or "Is the density transfer system,also provide the devel- civic center might need additional land forexpansion oper with an opportunity toalter his development certain con- as the new community'spopulation increases. Expan- plans. All these techniques could forestall sion sites can avoid costs of relocatinghemmed-in flicts between the developer and public agency.Yet, uses by providing growing room(and thus avoid a some administrativeprocedure is required to handle duplication of facilities on scattered sites). Those other changes and conflictsduring development, uses which are likely toneed expansion room might which vary in significance from minute architectural also be required to have oversize improvementsin- alterations to major locational decisions.Several pos- stalled when they are initially developed.19 Precaution, sible methods for handling certain probable adjust- however, should be taken to avoid gross overestima- ments are suggested below. tion of future need in order to prevent inbred leap- Changes might be dealt with as a matter of percent- frogging. age adjustment. Generalstandards for such adjust- Temporary use should be made of reserved expan- ments to cover all broadclassifications of sites and sion sites whenever possible. For example, during early structures, or specific ones directedtoward individual stages of new community construction, anexpansion buildings, might be established from the outset. For site could be used for temporary parking facilities. An example, the height of a building might bevaried by expansion site could also be temporarily used in its 2 percent of the total height, or buildingbulk may natural state as a playing field and later be used for a be varied by 5 percent, without requiring a meetingof large public recreation area. the minds between the public agency anddeveloper. Land bank reserves would not be under the control Such minor deviations from the approvedspecifi- of the developer.20 Sizeable amounts of land acquired cations could be allowed and ratified, by covenant,in by the public today should be kept separate from the the deed for specific properties. lands under development.Logically,thisreserve Another way to handle changes during development would include bufferage and greenbelts outside of the could be by a trade-off. The developer requesting a area of actual, physical development.This, then is a change would, in effect, be asked by the public agency, "public policy" reserve and serves as a hedge against "What is it worth to you?" The developer would offer inflation in land value at the townsite's periphery. It somethingadditional open space, extra parking fa- will also keep the planned community at a manage- cilitiesin return for what he wants. The public able size and discourage sprawl. The public agency agency would then determinewhether the exchange might, if the public interest demanded, relinquish offered is adequate. some of this "banked" land to accommodatedesirable Because there is bound to be some arbitrarinessin latecomers for whom no other developable land re- such a non-competitive situation, the developer should mains. have recourse to a higher, disinterested arbiter, who Administrative Adjustments and Review would hear his appeal in the event of an impasse or Boards. To a large extent, the success of a large-scale of allegations of duress. If a developer was not satis- development will depend upon the ability of developer fied by the decision of the public agency, heshould and the public agency to negotiate and compromise be able to get a ruling by an officer of the reviewing their differences. It is unrealistic, however, to assume body to determine the appropriate security that should be given by the developer, pending a full hearingof that they will always resolve their differences. Ad- the dispute. The official could exact a money bond or ministrative machinery, therefore, will be needed to even security in the formof undeveloped acreage. Any affix responsibilities and to arbitrate disputes between resulting imbalance of equities caused by the devel- the two parties. oper's changes would be compensated for in the plans Mechanisms must be available for the developer for developing the "hostage" acreage prior to his be- and the public agency to resolve their differences gining construction on it. when changes in the plan are needed and the two The adjustment system, on the other hand, might . sides cannot reach a compromise. Public policy, gen- work on the basis of credits earnedsimilar to den- erally speaking, should be paramount to the develop- sity transfer. In this case, the developer would commit er's economically-based motives; but there must be an himself to increased amenities above and beyond those equitable means for breaking stalemates that might called for in approved plans, establishing an account arise. from which to draw when later plan changes are re- Reserved lands, density transfers, and the like, pro- quested that would diminish public benefits. Again, vide the developer with some leeway, if market con- review board personnel could act as arbiter forthe ditions change. Reserved lands provide an opportunity accounting system.

118 Finally, and most familiar,isthe case-by-case opment programs.25 Like other administrative agen- method where each requested change would be con- cies found on the State and Federal levels, these sidered on its merits as in conventional zoning admin- boards could exercise broad powers of policy formula- .istrative procedure. Before the large-scale develop- tion, assessment, and rule-making in addition to their ment is occupied and while it is still in the hands of adjudicative function. a single developer, no precise guidelines would be needed, such as those now in existence for zoning POST-DEVELOPMENT TECHNIQUES variances. No third party would be directly affected, Once a section of the townsite is developed, stabi- since the residents had not yet arrived. The developer lizing regulations are needed. Although creativity and the public agency then could argue their respec- should still be encouraged in developing the remain- tive positions before the arbiter with very little limi- ing vacant parcels or in makingsome changes in ex- tation on the scope of variations sought. Although isting structures and uses, the emphasis in land-use this administrative technique puts neither side in the controls should shift from developingnew uses to pro- other's debt, it has the disadvantage of permitting tecting established uses. The transition from flexible multiple, probably continuous hearings on adjust- development regulations in the early stages of the ments, many of which may be quite minor. townsite to protective regulations when it is built-up The foregoing has made a case for a higher-level should not be overly abrupt. Thismeans that the review body to arbitrate between conflicts of the de- conditions which have been imposedon individual veloper and the public development authority. It is uses and structures through site plan approval should doubtful that State courts would wish to be burdened be capable of translation into post-development stand- with the many minor administrative determinations ards which are applicable to an entire projectarea or, that can be expected to arise during new community possibly, to the entire community. To simplify enforce- development. For this reason, a State or regional re- ment, post-development regulations might tend to- view body would be appropriate. Major controver- ward the districting approach characteristic ofcon- sies, however, particularly those involving Federalor ventional zoning ordinances. State policies, could be assigned to existing State trial The deed restrictions set on property when itwas courts. It has been suggested, however, that land-use initially developed should eventually be replaced by decisions should be made not by the trial courts, but other controls after a substantial amount of develop- by a panel of experts in the development control ment has occurred and time lapsed. Deed restrictions field.21 running 10 to 20 years on properties (instead of 40 The jurisdiction of a panel of experts with inter- years which is usually attached to urban renewal proj- mediate review authority(i.e., hearing appeals on ects, for example) should allow enough time for the local controversies with further appeal to the State large-scale development to reacha state of comple- Supreme Court) may be drawn to cover a singlecoun- tion, and also assure that land-use controls willnot ty,22 a larger region,23 or an entire State." Whatever be static for the entire life ofa structure. the jurisdiction of these review agencies, it would be When deed restrictions come to an end, either by desirable to improve the sophistication and expertise the landowner's option 26 or by termination of their with which development controls and land-useregu- effective time limit, new controls should be available lations are tested. A State review board is considered to take their place. Ordinances of community-wide by many to be a progressive step in administrative or areawide application or on the basis of the func- practicewhether or not a particular State wanted tional planned unit could then be adopted to apply to encourage large-scale development and new com- a single set of regulations to all uses and structures. munities. General performance standards may well remain sub- Review boards could be established eitheras a sin- stantially similar to the general guideline performance gle, statewide panel or if caseloads warranted,as regional boards. In the interest of of decentralization standards that covered the pre-development period, and encouraging familiarity with local conditions, it unless there has been substantial technological changes can be argued that regionally-based hearing exam- in the intervening years that provide better measur- iners are desirable. The hearing examiners mighteven ing devices. But development standards should be be given authority to render decisionson minor mat- made more stringent, reflecting the increasing scarcity ters( just as a zoning administrator is empowered in of vacant land. Because reserved land will probably be some communities today), with appeal to the full needed to meet new demands for certain uses, devel- board. The State should also consider the possibility opment regulations should become more restrictive, al- of extending the board's authority to include, in addi- lowing only those uses and structures for which there tion to determining specific controversies, an assess- is an evident need. Similarly, accessory regulations, ment of new community policies, plans, and redevel- such as those covering parking and open space, may

119 have to be more rigorous to compensate for any over- munity purposes, as parks, or schools, instead of addi- burdening of facilities which has resulted. tional residential, commercial, or industrial develop- At this late stage of development, undeveloped ment. A sinking fund, consisting of annual assessments land will become increasingly scarce and valuable. against the properties to be benefitted, could be es- Echoing Marion Clawson's question "Why not sell tablished to fund the acquisition of common land and zoning and rezoning?",27 the custodians of develop- its maintenance.28 The developer of course, will have ment controls might ask, "Why not take bids on re- made sites available for schools and parks in each served land?" neighborhood. The benefit district, however, would Some areas may have been reserved specifically for allow affected property owners an option to purchase the developer's future use such as RDU, or expansion reserved land for their common use. The ability to sites. These areas may have been earmarked for cer- establish a distinctive neighborhood character through tain uses at certain densities, or the developer may qualitative differences in public facilities may be of have acquired credits entitling him more flexibility in considerable psychological value in one-developer, land-use allocations. But for other reserves, such as one-plan, large-scale developments. holding zones or land banks, use and intensity deci- Finally, when the stabilizing ordinances of local sions would have been deferred until construction of government come into being, attention should shift the new community is substantially complete. to the necessity for creating standards for redevelop- When a reserved area becomes ripe for development. As the cycle begins again, renewal, if it has been ment, cost-benefit analysis may indicate several alter- effectively planned for, can be accomplished with a native uses for a site within the area. For example, the minimum of expense and inconvenience to the resi- analysis may show that the site has a higher value as dents and their local government. Perhaps a built-in a shopping center than as an industrial plant, but an amortization would be wise requiring funds to be set industrial use may bring more jobs into the town. Ad- aside over the years, such as a portion of tax or lease ding to the problem, some residents might want the payments. Such funds would be earmarked expressly land for additional recreational facilities. How then for the purposes of redeveloping industrial and com- should the reserved land be used? mercial facilities which may be more likely to require Community officials might be empowered to take early modernization than would residential properties. competitive bids for the right to develop the reserve Over time, changes may be necessary in the regu- to any use that would be compatible with the sur- lation of development area land use. Changes which rounding development. Using cost-benefit analysis as occur in the community's economic and social struc- an index (a bid for use as open yace may be more ture would necessitate some amendments to its pattern beneficial to the town, even though the dollar bid is of land use. Control devices should be receptive to ap- lower), the governing body would award development propriate re-designation of uses and to variations in rights to whomever submitted the most advantageous certain requirements, including parking, open space, bid. and lot coverage. As an alternative, a formula could be established Even before specific changes are proposed, how- for valuing real estate and then development rights ever, policies for rezoning should be weighed and could be auctioned. The base on which the value adopted by the local government. In the large-scale might be initially determined could be the actual pur- development context, for example, a policy may be chase price of the tract in question. The owner adopted that any unused industrial expansion site probably the developer or, in the case of banked land, may be redesignated for residential developmentif the Statewould receive original value plus a propor- employment and, accordingly, the need for nearby tion of the excess profits. An additional percentage housing has increased. could be required as payment to defray the costs of Another kind of policy should specify the manner governmental subsidies extended to the developer dur- of evidence required to sustain a proposed change in ing early construction stages. Any remaining profit the land-use control. For example, an undeveloped would go into the town's coffers. In the event that a RDU might be proposed for a new shopping center. low bid is accepted in return for an amenity (e.g., a Before making a decision, a market analysis might be neighborhood group's bid to devote the land to park required to aid the community's governing body in uses),the town might still be required to reimburse rendering a decision on the economic feasibility of the developer or the state for the fair profit to which the proposal. they are entitled. The paramount principle for amendment should Benefit district financing could be a valuable tool be the necessity for the proposed change in view of for permitting large-scale development residents to the present character and needs of the entire new bid on reserved land in their neighborhood. Residents community than of the neighborhood. Compatibility may prefer to see the undeveloped land used for com- with existing uses would be next in priority affecting

120 decisions on changes. The capacities of municipal Most States have eaacted permissive planning and water and sewer services should also be considered. land-use control legislation for ,:nost of their local These criteria are no different from the accepted jurisdict'ons; but few have provided their localities bases for rezoning now being carried out in most mu- with the more advanced type of land-use convols nicipalities. required for guiding large-scale urban development. Each of the elements in the amendment decision Adoption by municipalities of such innovative con- should be weighed in view of the policies expressed by trols would provide much of the kind of regulatory the governing body as well as of those embodied origi- system needed to guide large-scale urban and new nally in the development area plan if they are still ap- community development; however,thegreater plicable. Consistency in the amending procedure can flexibility involved in such controls requires expert give_the new community or other large-scale urban administrationa capability not generally found in development a chance to draw upon experience in small local jurisdictions. improving its land-use pattern. Few local governments have adopted policies delib- erately aimed at encouraging developers to build CONCLUDING OBSERVATIONS large-scale development, such as: using regulatory techniques to allow the developer to mix housing One justification for encouraging large-scale development is to halt wasteful urban sprawl, to concen- types while insuring that the overall population trate and plan urban expansion for the conservation density is maintained; allowing more dwelling units of land, air and water. Another is to provide for effi- if land is dedicated for public open space; permit- cient use of public facilities and public funds. To ting flexibility in the usual dimensional limits on achieve these objectives, government must be able to yards, building heights and ground coverage to plan the future use of land and to see that the plan achieve more freedom for economical and attractive is carried out. Such a plan must inevitably restrict, design; and relaxing improvement standards adopt- provide for, and guide development where it is appro- ed for piecemeal development to meet the special- priate. Under present law and practice, however, such ized requirements of the large-scale development. planning and land-use controls have many weakness- Finally, it seems clear that while the States should es, particularly as applied to large-scale urban devel- equip communities with broader development pow- opment. ers including establishment of land banks, holding While convenfional land use regulations are still zones, and policies to require oversize impro,,e- adequate for regulating most developments in built- ments, they should place some safeguards on the up communities, they are totally inadequate and local decision-making process to ensure that such often misused in guiding development in a rapidly authority is not abused by inadequate administra- urbanizing frontier. tion.

Footnotes 1 Robert M. Anderson and Bruce B. Roswig, Planning, ° See American Society of Planning Officials, New Direc- Zoning, and Subdivision: A Summary of Statutory Law in tions in Connecticut Planning Legislation (Chicago: ASPO, the 50 States (New York: New York Federation of Official 1967), pp. 36-45, for a brief discussion of major community Planning Organizations, January 1966), pp. 224-26. policies which might be part of new town comprehensive 2 American Society of Planning Officials, New Directions plans. in Connecticut Planning Legislation : A Study of Connecticut William A. Doebele, "Improved State Enabling Legisla- Planning, Zoning and Related Statutes (Chicago, Illinois: tion for the 1960's: New Proposals for the Stail of New 1967), pp. 65-67. Mexico," 2 Natural Resources J. 321 (August, 1962). a See Peter House, "Farm Land Assessment in Rural-Urban E.g.,Howard County,Maryland; Orange County, Fringe," 29 Appraisal Journal, 57, 60 (January, 1961). California. Based on an ACIR survey conducted in the summer of ° Although the concept of subjurisdictional, "neighbor- 1967, most counties in which new communities are being built hood" land-use controls is in its infancy, it seems a particularly have reacted to such projects by using planned unit develop- promising solution for a problem long suffered under tradi- ment regulations that are generally intended for smaller tracts. tional land-use controls: the lack of correspondence between Thus far few novel techniques to regulate new communities land-use patterns and the boundaries of political jurisdictions. have been developed by these counties although several coun- This approach can be adopted with little difficulty in new ties including Orange in California, Howard in Maryland, towns which have 'been developed as clustersof func- and Fairfax in Virginia have adopted "planned community" tional phnnii, g units.Cf. Revised Code of Washington, district ordinances. CIL 73 (H.B. No. 115, Sections 1-6, Laws of 1967), providing 5 Clarence S. Stein, Toward New Towns for America, 3rd continued, independent exercise of zoning, subdivision, and edition, (Cambridge: MIT Press, 1966), p. 222. comprehensiveplanningpowersbysmallcommunities

121 annexed into larger municipalities; Richard F. Babcock and Ibid., pp. 65-7. Fred Bosse lman, "Citizen Pak ticipation: A Suburban Sugges- 21 Richard F. Babcock, "The Unhappy State of Zoning tion for the Central City," 32 Law and Contemporary Prob- Administration in Illinois," 26 U. Chi. L. Rev. 509 (1959) ; lems (Spring, 1967), also recognizing land-use control dis- CharlesHaar,"Regionalism and Realism inLand-Use tinctions among subjurisdictional units. Planning," 105 U. Pa. L. Rev. 515 (1957) ; ASPO, op cit., " Daniel R. Mandelker, Controlling Planned Residential pp. 174-77. Developments (Chicago: ASPO, 1966), pp. 13-15. 22 E.g., Westchester County, New York; Marion County, " Ibid., pp. 18-24. Indiana. " See "The Story of a Market SuccessAnd a Financial "New York State Statutes, Ch. 296, Laws of 1967, Sec. Failure," House and Home (August, 1967), pp. 52-7. 239-m. " Frederick H. Bair, Jr., "Is Zoning a Mistake?," 14 Zon- " Also see, ASPO, op. cit., pp. 174-77. ing Digest 249, pp. 252-53. Ibid., pp. 169-72. viMandelker, op. cit.,p. 8. 2° The holders of property interests in a given subarea (e.g., " Edward P. Eichler and Marshall Kaplan, The Commu- a planned neighborhood or industrial park) could be given nity Builders (Berkeley: University of California Press, 1967), the opportunity to petition for district regulations to supercede pp. 72-3. deed covenants. " ASPO, op. cit., pp. 55-7. "Marion Clawson, "Why Not Sell Zoning and Rezoning? " Jack Noble, A Proposed System for Regulating Land Use (legally,thatis),"CryCalifornia(Winter,1966-67). in Urbanizing Counties (Chicago: ASPO, 1967), pp. 2-3. Reprinted in Land-Use Controls: A Quarterly Review, Vol. 1, Note p. 23, which makes a distinction between a high-intensity No. 2 (Chicago: ASPO, 1967). and low-intensity development sector. " Dennis O'Harrow, New Techniques for Shaping Urban " ASPO, op. cit., pp. 62-5. Expansion,Planning AdvisoryServiceReport No.160 " Ibid., pp. 68-70. (Chicago: ASPO, July 1962), p. 12. Appendix L. Chapter VI Conclusions and Recommendations

INTRODUCTION Central cities enjoyed only minor rates of increase IN THIS REPORT, the Commission has examined re- or decline in medium and large metropolitan areas. cent patterns of urbanization and economic develop- Contrary to many recent published statements, ment in the United States and the linkage between urban places outside of metropolitan areas grew at the two. The influencesboth private and publicon slower rates than metropolitan suburbs and remain- the geographic distribution of population andeco- ders, although not slower than central cities. The nomic activity have been analyzed. The majorconse- remainders of nonmetropolitan areas ( towns below quences of the increasing concentration of population 10,000 in population, rural villages, and farms) had in metropolitan areas and the concomitant loss of the lowest growth rate. population and industrie5 in many nonmetropolitan The giant urban areas (one million plus) account- portions of the country have been assessed. Some of ed for over half the increase in total urban popula- the limitations inherent in traditional patterns ofur- tion, and those in the 250,000-1,000,000 bracket ban development have been explored. Special atten- for nearly one-fourth. tion has been directed to the potential ofsome of the Urban areas of up to 1,000,000 experiencing the newer types of large-scale developmentparticularly highest growth rate generally were located in a geo- the "new community"for injectinga &eater degree graphic crescent running from Virginia through the of order into the future growth of the nation's urban old South and the Southwest to the Pacific Coast. areas. Urban areas of this size showing below average Now the Commission presents its conclusions and growth rates formed another arc, moving from recommendations as to the roles of local, State, and Maine, through southern New England, the Middle national governments in the processes of future urban- Atlantic, Great Lakes, and Plains States to North ization. The basic recommendations urge the develop- Dakota. ment of national and State policies dealing with urban growth. Certain intergovernmental actions designed MIGRATION AND NATURAL GROWTH-1960-65 to influence the location and character of future ur- In-migration accounted for 22 percent of the 1960- ban growth are submitted for considerationas possible 65 growth in metropolitan area population as a components of national and State urban growth poli- whole. The remainder-78 percentwas due to cies. To provide a backdrop for what follows, it is de- natural growth. The latter rate is likely to increase, sirable to summarize the findings of fact with regard suggesting that metropolitan areas contain within to recent and future trends of population growth and them the seeds of their increasing population domi- distribution and of economic development in this nation of the nation. country. Eighty percent of the net migration into metropoli- SUMMARY OF MAJOR FINDINGS tan areas was attributable to only nine such areas: Los Angeles-Orange County; New York-Northeast- THE LOCATION OF RECENT POPULATION GROWTH Metropolitan areas as a group have experienced the ern New Jersey; San Francisco-Oakland-San Jose; nation's largest growth. Washington, D.C.; Philadelphia; Houston; Miami- This has been due to the dramatic population in- Fort Lauderdale; San Bernardino-Riverside; and creases in non-central city jurisdictions, especially Dallas. in metropolitan areas of over one-half millionpopu- Migration provided the least population increase to lation. The greatest proportionate increase occurred metropolitan areas in the Northeast and Great in "metropolitan remainders"suburbanareas out- Lakes, and most to the areas in the South, South- side incorporated places of 10,000or more. west, Mountain and Far West regions.

123 Improved economic opportunities prompt migra- Central cities are in a less favorable position in tion but mainly among the better educated and competing for new business than their suburbs with skilled. Blue collar workers, less skilled, many Ne- respect to land availability, ease of access to markets groes, and the aged for personal and various non- and supply sources, parking, and social and physical economic reasons tend to resist the attraction of job environment. opportunitieselsewhere. The result :migration Larger cities (over 250,000) in selected States tend from depressed areas tends to deplete the most pro- to experience diseconomies of scale, spending more ductive sector of its work force. per capita as population size increases. Within the private sector, the process of urbaniza- NEGRO POPULATION tion generally seems to lead to higher consumption The ratio of Negroes to the total population of cen- expenditures. tral cities rose from 12 percent in 1950 to 20 percent in 1965. Moreover, the larger the central city, CONSEQUENCES OF CONTINUATION OF RECENT the faster was the rate of Negro population growth GROWTH TRENDS and the larger the Negro proportion of the total Analysis of the above findings leads to the conclu- population. sion that a continuation of recent urbanization and

RURAL POPULATION economic growth trends would be likely to produce consequences of critical importance for the well-being America's rural population has declined only slight- ofthe nation, and of individual States and communi ly since 1950 but the farming sector alone dropped 4 million between 1960 and 1966. Urban-rural comparisons of population growth, ties.-Increasing concentration of people in large urban educational and health facilities, housing, and in- centers will make public and private consumption come levels suggest major dispar:ties for every index, more costly as a result of diseconomies of scale. While the evidence is not conclusive, it may well be with rural America consistently in the disadvantaged that increased size and congestion will also take a position. METROPOLITAN DISPARITIES net social and psychological toll in urban living conditions. Within metropolitan areas another set of disparities The advantages of suburban and metropolitan re- emerges with central cities confronting much greater mainders in attracting new industry will continue public finance-puLlic service problems than suburbs to widen the gap between the economies of central and metropolitan remainders. cities and their surrounding neighbors, deepening FUTURE POPULATION PROJECTIONS the problems of many central cities. A most serious Future estimates indicate a national population in- aspect of these problems will be the growing inability crease of about 73 percent by the year 2000, prac- of the central cities to provide jobs for their residents. tically all of it urban. Continued migration of the Negro population to The lion's share of the increase will come in the central cities will add fuel to already incendiary largest, fastest growing urban areas, and the South conditions in central city ghettos. and West will continue to experience the greatest At the same time, the nation's smaller urban places percentage gains. outside of metropolitan areas will be increasingly bypassed by the economic mainstream and will also ECONOMIC GROWTH: LOCAL, STATE, REGIONAL find it difficult to offer enough jobs for all their The 1950-66 period of overall national economic residents and those of surrounding rural areas. growth was marked by considerable diversity in Many rural areas will suffer from a further siphon- rates of growth among individual States and multi- ing off of the young and able work force with a State regions. resultant greater concentration of older and un- Findings in Chapter II demonstrate that economic skilled among those remaining, and a continuing growth of municipalities was most frequently re- decline in the capacity of rural communities to sup- lated directly to rates of increase in total popula- port basic public services. tion and inversely to rates of increase in the non- Finally, if present practices prevail, the continued white proportion. concentration of urban growth in suburban and Governmental policies such as highway and air outlying areas foreshadows a prolongation of devel- transportation facilities, housing and community fa- opment practices creating "urban sprawl"the cilities, industrial "climate," and tax level can in- disorderly and wasteful use of land at the growing fluence industrial location decisions. edge of urban areas.

124 THE QUESTION OF A NATIONAL URBAN nation. Similarly there has been no overall policy to GROWTH POLICY guide the character and nature of growth. Lacking a policy framework, specific program decisions concen- The urbanization trends examined in this study are trating on particular objectives have sometimes pro- complex and varied. They are the result of the inter- duced inadvertent results in terms of urbanization play of countless decisions by individual citizens and trends, altering or partially cancelling out basic pro- private enterprises, many of which are conditioned by gram goals. governmental policies and programs at the national, Considering the already substantial effect of gov- State, and local levels. At the Federal level these governmental action on urbanization, and the likely con- ernmental influences are exerted through many pro- sequences of a continuation of present patterns of grams, such as the rural development program of the urbanization and economic growth, the question Department of Agriculture; the urban and rural anti- arises: Should government undertake to develop and poverty activities of the Office of Economic Oppor- implement a national policy to deal with urban tunity; the various programs of the Department of growth? Important considerations on both sides of this Housing and Urban Development; the Economic De- question should be assessed. velopment Administration's program for assisting depressed areas; the location and scheduling of high- ARGUMENTS IN FAVOR OF A NATIONAL POLICY TO DEAL WITH way construction; and the distribution of Federal con- URBAN GROWTH tracts and purchases throughout the country. Governmental programs already have a significant State and local actions are key determinants of effect on the location of population and economic communities' physical, economic, and social climate growth and the character of urban development. a factor of increasingly critical importance in business Establishing an overall policy would give articulated location decisions. The major instrument of State and direction to the effects of these programs, make local policy affecting the direction of urbanization them consistent, and avoid having different pro- is land use and development controls. Among other grams working at cross-purposes and subsidizing critical effects, these serve to influence, either directly undesirable and costly patterns of urban develop- or through economic forces, the opportunities of racial ment. minorities to move to places of their choice. Also, At the Federal level, for example, the FHA mort- through fiscal and organizational measures, State and gage insurance program makes it easier for people to local governments affect the balance of financialre- buy new houses, thereby inducing them to move to sources and services as between central cities and their the suburbs and outlying areas frequently resulting suburban environs. in increased sprawl; the highway program constructs The interplay of private and governmental policies express highways, which make it simpler for com- and decisions has taken place in the context of gov- muters to move back and forth from suburb to cen- ernmental institutions which grew and developed in tralcity, and to commute between their homes, a nation primarily agricultural in character. Only re- shopping centers and other residences in the suburbs; cently have some of these institutions been reorgan- the urban renewal and model cities programs are de- ized to reflect the urban character of the nation. The signed to redevelop and revitalize older central cities; Federal Department of Housing and Urban Develop- Federal purchases particularly for defense and space ment and State departments of community develop- exploration, finance the location or relocation of en- ment and local affairs provide an administrative focus tire industrial complexes; the Economic Development for dealing with urban problems. Legislative organi- Administration assists areas which have had persistent zation at national and State levels is only beginning unemployment and have lost population because of to reflect this concern. In a few States, legislative it. So far as the location of population and economic committees on urban and metropolitan affairs have activity is concerned, the effects of these and other been established. The Joint Economic Committee of programs are random and uncoordinated. Congress has recently established a Subcommittee on At the State level, States may pay a large portion Urban Affairs. of public assistance costs and at the same time make it Governmental policies thus have just recently begun difficult for welfare recipients to get accessible jobs by to assume an urban focus. Moreover, the focus has permitting or encouraging discriminatory zoning or generally been sporadic, and while significant, it has housing practices; by failing to assist in estaUishment been limited in scope. Regarding the location of urban of effective nous transportation; or by ineffective ad- growth, there has been no overall policy by which to ministration of public employment services. guide public policies and programs affecting the geo- The Federal Government has also made significant graphic location of such development throughout the deliberate efforts to influence the forces affecting

125 urbanization and economic growth, but each of areas are migrating generally tolarge central cities, these is directed at only a segment of the overall adding to the problems of the ghettos; suburban and problem; the location and character of urbanization exurban parts of metropolitan areas are increasingly is frequently ignored or slighted; and there is no succumbing to sprawl; the social and political insti- comprehensive linkage of the kind that a national tutions in many impoverished rural areas continue go- urbanization policy would supply. ing downhill as the most competent sector of their labor force and leadership move out. The policy of The Employment Act of 1946 was aimed at creat- drift has direct budgetary consequences, too. Broadly ing conditions under which there will exist jobs for speaking, to the extent it continues to interfere with all those able, willing and seeking work, and at pro- maximum employment of human and other resources moting maximum employment, production, and pur- it is depriving us of optimum economic growth. In chasing power. The goal of the National Housing :1ct the immediate year-to-year budgetary sense, it means of 1949 is to provide a decent home and suitable liv- the out-of-pocket costs of higher-than-necessary pub- ing environment for every American family. The Pub- lic assistance and unemployment compensation rolls lic Works and Economic Development Act of 1963 is directed at helping areas and regions of substantial and of the increased public service expenses resulting and persistent unemployment and underemployment from sprawl. to plan and finance public works and economicdevel- A national urbanization policy would provide a opment essentially for the purpose of creating new em- basis and opportunity for avoiding or redirecting ployment opportunities. The goal of the Economic present trends that tend to reinforce the problems Opportunity Act of 1964 is "to eliminate the paradox or racial segregation, and thus in the long run of poverty in the midst of plenty in this nation by would help to promote achievement of equality of opening to everyone the opportunity for education opportunity regardless of race. and training, the opportunity to work, and the opportunity to live in Aecency and dignity." The purpose of Such a policy would make it easier to develop and the Appalachian Regional Development Act of 1965 use measures to divert the present flow of Negro poor is to assist this particular region "in meeting its special to the central city ghettos; could help to attract more problems, to promote its economic development, and jobs to central cities; and perhaps at the same time to establish a framework for joint Federal and State work to break down barriers to suburban residence efforts toward providing the basic facilities essential and encourage Negro migrants from rural areas to to its growth and attacking its common needs on a movetogrowthcentersoutsidemetropolitan coordinated and concerted regional basis. Finally, areas. The whole effect could be to relieve tensions in Title I of the Demonstration Cities and Metropolitan ghettos, help Negroes to achieve upward mobility, Development Act of 1966 is aimed at enabling cities and in time foster the dispersion of Negro population to improve living conditions for their residents; includ- which is so necessary to attainment of meaningful ing rebuilding slum areas, expanding job, housing, equality of opportunity. Present undirected trends of- and income opportunities, establishing better access ten are running in the opposite direction. between homes and jobs, and reducing dependence Continuation of the present migration and natural on welfare payments. growth trends may lead to a greater disparity A national urbanization policy would provide the among States astopopulation and economic framework for harmonizing these separate programs growth. so that they support consistent objectives of population location instead of running at cross-purposes. Such a trend would tend to weaken the 50 States The serious consequences of allowing urbanization as a group, and thus erodetheir pivotal role in our and economic growth trends to continue their pres- federal system. In somewhat like manner, urbanization ent haphazard course is itself a strong argument for trends, aggravated by racial considerations, may tend a concerted national policy to provide more con- to aggravate disparities among centralcities and sub- scious overall direction. urbs in metropolitan areas and between metropolitan Despite, or perhaps in part because of the many and rural areas causing continuing decline of the eco- cities separate national efforts to intervene in the social and nomic and social health of many of our large economic order to overcome unemployment and the and rural areas. A deliberate national urbanization effects of untrammelled urbanization, we arc drifting policy thus could be a potent instrument formaintain- toward larger concentrations of population with re- ing a more even distribution of strength amongStates sultant diseconomies of scale and possible increasingly and among local units of government, therebyhelping damaging noneconomic effects on urban residents; to sustain and strengthen our systemof decentralized the poor nonwhites from rural and smaller urban power and responsibilities.

126 Considering the mounting interest in and out of centers, new-towns-in-town, and other patterns of Congress in the problems of poverty and unemploy- urban growth. ment associated with urbanization, the chances are Finally, of paramount importance is the absolute that eff orts will snowball to launch additional piece- necessity of meeting the immediate, pressing needs meal efforts to assist particular areas or particular in our existing, troubled cities and metropolitan groups in the country. areas and our disadvantaged rural areas, while still Such past efforts are already visible in programs of directing attention and efforts to the longer range the Appalachian Regional Commission, the Depart- objectiveoffostering and encouraging urban ments of Commerce, Agriculture, and Housing and growth patterns which will provide a wide range of Urban Development, and activities funded by the alternatives and help assure the wise use of national Economic Opportunity Act. A piecemeal approach resources for the economic and social health of the encourages"pork-barreling,"withaccompanying whole nation. waste, and inefficiency. The surest way to combat that The present urgency of the "crisis of the cities" de- tendency is to elevate the basic situation to a matter mands immediate action. However, it is vital that the of overall concern and to tackle the problems of the immediate measures to cope with the problem should goegraphic direction of urbanization on an informed, not divert all efforts and attention from the longer well-considered basis, making it subject to review and range objective of developing a viable nationwide redirection as an overall program rather than subject pattern of urban growth in a healthy economyboth to piecemeal hauling and pulling. rural and urban. The only effective basis for redirect- There must be an adequate planning process to ing our patterns of urbanization, so as to deal with the assure that alternative policies for improving pat- underlying causes of our present dissatisfaction, frus- terns of urban growth are weighed and that once tration, and unrest, is a comprehensive, long-term decisions are made, all available resources are co- policy for urban growth. ordinated to reinforce their effectiveness. ARGUMENTS AGAINST A NATIONAL POLICY TO DEAL WITH URBAN A national policy for urban growth must be con- GROWTH cerned not only with the location of urbanization but Urbanization is inevitable and inexorable, and to also with its character and quality. New approaches expend public funds in an effort to stem or divert to urban development must be evaluated and related this process is to squander them. to one another and to overall national objectives. In- Since the dawn of civilization man has tended to creasing attention is being directed to the potential of congregate; as he has developed, he has assembled new land-use planning and development techniques with his fellows in ever larger towns and cities. From and procedures for improving our towns, cities, and ancient Greece to the present, the migration from the metropolitan areas. Many of the more promising ap- countryside to the city has been a source of concern proaches are especially applicable to large-scale urban and periodic hand-wringing. development: planned unit development of various types; multi-purpose town centers; use of planning Even if there were a good theoretical case for a areas including developed areas, der-loping zones, national urbanization policy, we lack adequate data and holding zones; and new communities. on which to base a policy, and analytical techniques While the application of these approaches is pri- by which to develop it. marily within State and local jurisdictions, many Too little is known about the motivational factors Federal programs have a direct impact on them. influencing industry and business in locational deci- Such programs can serve either to encourage and sions and about where and how individuals decide facilitate their use or to neutralize and weaken their upon their place of residence. Moreover, expert testi- impact and effectiveness. National programs aiding mony indicates great uncertainty as to the social and new community development should reflect and be psychological effects of various sizes and densities of part of a total urban development policy for the nation. New communities can then be part of a coordi- urban population, and the existence of serious prob- nated effort to encourage the most desirable patterns lems in balancing those effects against the factors of of urban growth in the central city as well as in the economies or diseconomies of scale. The required suburbs. They can serve te pitivide dispersal within cost-benefit analysis is still in a rudimentary stage of metropolitan areas and decentralization outside of development so far as application to social and other them. They can afford alternative urban centers for noneconomic factors is concerned. The Economic De- location or those displaced from rural agricultural, velopment Administration has spent much time and mining, and forestry areas. They can be placed in staff resources in trying to identify "growth centers" their proper perspective along with expanded growth which might be the focus of its development policies,

127 ranking second only but has reached no firm definitions.Unless defensible ties, with the Southeastern States in economic growth forthe definitions of this kind can be formulated,how is a to the Far Western States possible? More- period. Similarly, urban areasunder 1,000,000 show- workable national urbanization policy in the period what kinds of governmental ing the highest population growth rates over, data are scarce as to Old South. Meas- policy tools would be effective in directing orredirect- 1960-66 included the States of the if the ured by both economic growthand urbanization, the ing urbanization and economic growth, even of the country. proper directions wereestablished. South had long lagged behind the rest be only as A good share of the alarm about"unbalanced" ur- A national urbanization policy would from con- good as its execution. banization and economic growth stems cern over the lot ofimpoverished Negroes, but this Carrying out such a policy effectively would mean is a problem to be attackedfrontally rather than action by the Federal Government toinduce industry it would not, if left to its tangentially. to locate where generally and unem- own decisions.Similarly, inducements would be re- Negroes bear the major brunt of under- unemployed persons to ployment in central cities and alarge portion of it in quired to get underemployed or and they will probably move to places ofjob opportunities. This course is ob- rural poverty-stricken areas, with freedom continue to do so under anextension of existing con- jectionable on two grounds: interference discrimination continues of choice for business andindividuals, and a further ditions. But so long as racial strengthening of the national government atthe ex- in housing, employment andother phases of American pense of State and localgovernments. The latter life, trying to "solve" this problemby more govern- would follow from the fact that, for purposesof uni- mental direction of industrial andpopulation move- form, nationwide application of inducementsand di- ment is a case ofprescribing for a kidney ailment probably would have to be when the patient has tuberculosis.Overcoming racial rect controls, programs long way administered directly by the national government, or, barriers in metropolitan areas would go a central cities that are if administered through the States,under such a heavy toward easing the pressures in hand of regulations and supervision as toconstitute intensified by continued in-migrationof disadvantaged direct central administration in fact, if notin name. Negroes. Since the Negro poorin rural areas often It is altogether possible, moreover, that acentrally- hesitate to move to where jobs areavailable because directed administration of this kind wouldcollapse of fears of racial discrimination,their economic prob- action. of its own weight. lems would also be eased by such raises the risk A meaningful national urbanization policy,involv- Interference with market forces also ing governmental selectivity as amongregions and of shoring up, at great expense,enterprises and types of communities that are tobe nourished by units of government that mightbetter be left to assistance, in contrast to others left to die, is not wither and die. feasible politically. Implementing anationalurbanizationpolicy other forms of If the national urbanization policy is to beeffective through use of payments, incentives or effect, with a net it must involve a special treatment forparticular re- subsidy inevitably would have this Specifically, it could lead gions or types of communities. Senators andCongress- overall loss to the economy. business to move into or re- men naturally would pressfor continual broadening to subsidizing people and of criteria for assistance, to the point thatbenefits main in rural backwaters or cityslums when a more either would have to be scaled back to thepoint of in- economical policy for all in thelong run would be to effectiveness or the costs of incentives covering alarge encourage them to move out, orat least not to encour- proportion of personal and business movementwould age them to movein or stay. become prohibitive. A national urbanizationpolicy raises the danger of The present system has admittedly producedpock- providing the pretext for allkinds of big-spending of achieving a desirable geo- ets of rural and urban poverty andperhaps an over- programs in the name concentration of population in certain urban cen- graphical redistribution of industryand population. ters. Y et in recent history this systemhas demon- One can envision a multitudeof ad hoc attacks on strated that population movement andeconomic the economic problems ofparticular areas or clientele forces, without overall outside direction, work to- groups, somewhatequivalent to the ineffectiveexperi- ward a healthier distribution of both people and ence under theArea Redevelopment Act.This danger economic activity throughout the country. seems particularlyreal in light of the difficultyof de- In the period 1950 to 1966, for instance, there was veloping objective indices ofwhere special incentives incentives to use, and a general tendency toward areduction of inequalities should be aimed and the kind of in economic growth among regions, States, and locali- also the great politicalproblem of getting Congress

128 to follow these indices and not treat the policy as a anything is done. We are mindful of the inadequacy convenient cloak for a new exercise in porkbarreling. of data and analytical techniques essential for developing the specifics of an urbanization policy dealing FOR A NATIONAL POLICY TO DEAL WITH with the extremely complicated processes of popula- URBAN GROWTH tion growth, migration, and settlement. We have Weighing all the foregoing arguments pro and con, recognized in earlier reports the general need for the Commission concludes on balance that a national more comprehensive social and economic data for i)olicy to deal with urban growth would be desirable. private and public decisions in an increasingly dynam- While agreeing that urbanization in varying degrees ic society. We note, moreover, that data and tech- is, of course, inevitable and a natural concomitant of niques are often not fully adequate for the launching an increasing technological age, the Commission also of a new program, and that, indeed, a prime justifica- believes that a combination of public and private action of a new program may be that, by focusing tions can mitigate certain adverse effects of present enough attention and resources on the task, in time urbanization trends. Specifically, we note the disecon- it will generate the required data, procedures and omies of scale involved in continued urban concentra- know-how to accomplish the desired public objectives. tion, the locational mismatch of jobs and people, the In discussing one of the following recommendations connection between urban and rural poverty prob- we propose steps to deal with the problem of data and lems, and urban sprawl. In addition to these nation- analytical techinques. wide effects, such conditions are exacerbating the Finally, and most central to the statutory responsi- country's major social and political crisis, i.e., the de- bilities of this Commission, we believe that a national clining health and vitality of many of our largest policy dealing with urban growth is necessary and de- cities. sirable in preserving and strengthening the American Governmental programs already constitute signifi- federal system. The problems arising from and sur- cant influences on the direction of urbanization and rounding the drift of urbanization and economic economic growth, whether or not we have a national growth are among the most critical and difficult do- policy. A national urbanization policy would have the mestic problems of our time. If the federal system desirable effect of providing a framework for regular- does not move to meet them, its very usefulness is izing these influences and some assurance that their ef- brought into question. State and local governments fects were understood and desired. have most of the direct responsibility for influencing Obviously, a national policy to deal with urban location of industry and people through their control growth and the steps taken to implement it will need over land use and their effect on community environ- to be approached carefully and with considerable ment, which increasingly concerns business location flexibility so that the effect of measures can be evalu- decisions. Yet, in the final analysis, the policies and ated promptly and redirected, expanded, or dropped programs of all levels are inextricably intertwined as according to the dictates of experience. Until the they interact with the process of urbanization. A na- 1930's many facets of domestic affairs in the United tional policy of deciding the direction in which urban- States were not legislated upon by the national Con- ization should be encouraged or discourageddevel- gress. Since that time, however, the national govern- oped by cooperation among the three levels of gov- ment has begun many programs designed to strength- ernmentcan be a major device whereby interrelated en the economy and to widen and enrich theeconomic intergovernmental activities could be Letter coordi- ;' and social development of the American people. nated to make a more salutary and successful impact Suburban development has been subsidized, central on the social, economic, and political life of the nation. city rebuilding has been directly and indirectly sup- On balance, therefore, the Commission concludes ported, the farm economy has been under varying taking particular account of its findings as to disecon- degrees of governmental regulation, and so-called omies of urban congestion, the locational mismatch of "depressed areas" are given various forms of assist- jobs and people, the linkage of urban and rural prob- ance. So that today, in an increasinglyinterdependent lems, and urban sprawlthat there is a specific need society, few private actions can be taken without re- for immediate establishment of a national policy for gard to their public consequences and few govern- guiding the location and character of future urbaniza- mental actions are taken without concern for their impact upon the private enterprise system. Indeed, tion, involving Federal, State, and local governments political discussion and debate seldom deals with the in collaboration with the private sector of the national question of whether or not government should become economy. The Commission's findingsfurther suggest involved in domestic problems but rather treats upon that such a policy would call for influencing the move- the desirable extent and nature of such involvement. ment of population and economic growth amongdif- Counsels of inaction always urge more study before ferent types of communities in various ways so as to 129 310-335 0 - 68 - 10 achieve generally a greater degree of population de- structural framework for helping out the financial and centralization throughout the country and a greater public service plight of central cities. Of additional degree of population dispersion within metropolitan assistance to central cities in many cases would be the areas. It could also call forpolicies designed to en- use of areawide approaches fordealing with areawide courage the wider availability oflow and moderate problems. The Commission has already made several cost housing, the adoption of land-use and develop- recommendations geared to these objectives. These ment measures which would help to produce the most are summarized later in the introduction tothe rec- desirable patterns and types of future growth, and ommendations on "Other Intergovernmental Meas- the strengthening of government at all levels to equip ures for More Orderly Urban Development."* them to deal with the challenges of population growth In short, the difficulties of the central cities are in and increasing urbanization. part a result of the overall trends in population and industrial location and movement. Yet they constitute THE CRITICAL PROBLEMS OF CENTRAL abroaderproblemthanthatcoveredby an CITIES overall policy dealing with urban grow th. As such, Some might question the framework of an urbani- they also require intergovernmental measures of the zation policy which proposes to provide help for the variety and number which the Commission has al- unemployment and shrinking tax base problem of the ready proposed and continues to press for adoption central cities but only in conjunction with similar aid by Federal, State, and local governments. aimed at other parts of the country, such as small NEW COMMUNITIES AND LARGE-SCALE URBAN the "crisis towns and farm communities. Considering DEVELOPMENT of the cities," they would say that this is getting pri- orities out of line. The answer to these objections is Regardless of what is done to alter the course of twofold : urbanization, massive population growth is going to First, as many have contended and the Commis- take place, and practically all of it will be urban. sion's findings confirm, there is a definite relationship President Johnson has indicated that to accommodate between migration patterns in the rural area and the this growth in the final third of this century in a man- employment and other problems of the central cities. ner befitting our aspirations, we will need to build as Likewise, there is a relationship between the inability much housing, commercial and industrial facilities, of central cities to attract industry and the surge of highways and related development as we have since industry to the suburbs and beyond. the Pilgrims landed. Chances are that much of this Second, and more important, the amelioration of growth, if uncontrolled, will continue to occur in the crisis of the cities goes much deeper than read- many places under conditions of sprawl, with allof justing the flow of population or the location of inits baneful effects with respect to order, natural re- dustry. To a significant extent it is a problem caused source conservation, economy, and aesthetics. by long-standing economic and social discrimination This report has given extensive attention to one by well-to-do suburban communities and the fact that major method of coping with future urban growth the low income people have been virtually imprisoned in an orderly mannerthe use of large-scale urban within the boundaries of the central city. As the prob- development and specifically, new communities. Many lem deepens, still more middle- and upper-income are of the opinion thatlarge-scale development and families move to the suburbs. The problem of the cen- new communities offerunique opportunities to com- tral cities is also one of the obsolescence of physical bine private enterprise and business objectiveswith plant, and consequent deterioriation of the city into a broader social,economic, and politicalgoalsof haven of the aged, public assistance recipients, and American society. These opportunities include: other "high cost" citizens. of Solution of these problems requires a multi-pronged Providing alternatives to continued channeling attack along a broad front, by articulated programs urban development into existing, highly concen- of the Federal, State, and local governments involv- trated major metropolitan complexes,through es- ing major fiscal and organizational reforms. The Com- tablishment of satellite new communities onthe edge mission has proposed many steps to carry out such a of a metropolitan area or an independent new com- strategy in its reports, and particularly in its recent munity outside the orbit of existingmetropolitan volume, Fiscal Balance in the American Federal Sys- concentrations. tem, and the 1965 report, Metropolitan Social and Supplying an imaginative "new-town-in-town" ap- Economic Disparities: Implications for Intergovern- proach to rebuilding blighted areasand to build- mental Relations in Central Cities and Suburbs. Gen- ing up vacant areas in large centralcities. erally speaking, these recommendations call for State and Federal governments to provide the fiscal and *See pp. 163-166.

130 Planning for orderly growth from the ground up, development are essential to success, but are diffi- with the most desirable location, timing, and se- cult to achieve. They require an active, informed, quence of development and close relationship to and continuing participation by residents in com- areawide, regional and national urban development munity institutions and effective spokesmen at the plans and objectives. State and Federal levels. Accomplishing a less wasteful and more efficient On the basis of the foregoing findings and conclu- ; use of land for urban purposes, avoiding many of sions on urbanization and new community develop- the problems associated with sprawl, and facili- ment, in the following pages the Commission presents tating a better use of land for public services. recommendations for intergovernmental action de- Providing a chance to break away from convention- signed to establish an institutional framework for al thinking and try new arrangements in such fields evolving national, interstate regional, and State poli- as building codes, land use controls, zoning regula- cies to deal with urban growth. It also presents for tions, public programs and governmental structures consideration some specific components for such poli- and intergovernmental relations. cies. These components would: Making available a wide range of housing types at varying costs including low-income housing. encourage migration into alternative centersfor Offering investment opportunities on a large-scale. urbanization; Presenting a means of demonstrating varying kinds establish the organizational and financial frame- of urban environments which in turn can serve as work to encourage the most desirable patterns of models or "yardsticks." urbanization in growth centers, large-scale urban Providing a more dramatic means of focusing the development and new communities; and attention of public officials and the public-at-large provide other intergovernmental measures for more on the problems of urban development. orderly urban development, including particularly new planning and land use regulations. Yet large-scale development and new communities face some major practical hurdles with significant POLICIES DEALING WITH URBAN GROWTH public policy implications: One of these is the exceedingly large initial invest- In the three recommendations immediately follow- ments in land, land development, and amenities, ing, the Commission urges: (1) development of a na- such as neighborhood recreation centers, which tional policy to deal with urban growth; (2) a re- must be made, entailing exceptionally heavy annual examination of multi-State regional planning areas and agencies; and (3) a new and expanding role for carrying costs in anticipation of future sales and of the accompanying growth in tax base which will State governments through the development of State produce ultimate profits and public revenues. urban development plans. Another hurdle is the need for early governmental Recommendation One. A National Policy Dealing decisions regarding planning, land use control, and With Patterns of Urban Growth development of public facilities and services to protect both the public and the developers' interest in To help assure the full and wise application of all the project in anticipation of a local constituency governmental resources consonant with the economic and political and community leadership not yet and social health of both rural and urban areas and present. of the Nation as a whole, the Commission recom- To complicate matters, new community develop- mends the development of a national policy incor- ment frequently takes place within a rural county porating social, economic, and other considerations which does not have governmental institutions nec- to guide specific decisions at the national levelwhich essary for an area destined to become urban in na- affect the patterns of urban growth. ture. Such institutions are necessary to protect the The Commission recommends that the President developer's plan and concept, to realize public ob- and the Congress assign executive responsibility for jectives such as provision of housing within reach of this task to an appropriate executive agency. The the pocketbooks of low-income families, and to Commission also recommends that the Congress pro- encourage a diversified economic base. vide within its standing committee structure a means As a practical matter, little, if any, success has been to assure continuing systematic review and studyof registered in new communities thus far in providing the progress toward such a national policy. housing for people with a wide range of income The Commission further recommends that the levels and diverse racial backgrounds. executive and legislative branches, in the formulation Sustained governmental involvement and commit- of the national policy, consult with and take into ment to the objectives of planned new community account the views of State and local governments.

131 In setting forth this recommendation the Comrnis- To cite a specific example :if it is decided that new sion is not suggesting a leap unto the unknown. Actu- community development should be encouraged to pro- ally many elements of a national policy to deal with vide a new pattern or urbanization, a number of dif- urban growth already exist but have not been brought ferent factors, sometimes complementary sometimes into consistent relationship with one another. The competing, must be considered. Changing technology, first major national actions embodying elements of a transportation and communication; personal geo- national economic and urban growth policy were the graphic preferences; realistic market analysis; cost adoption of the Employment Act in 1946 and the benefit relationships; and social costs are just some of Housing Act in 1949. The Employment Act's decla- the factors that would have to be weighed. Final ration of policy stated that it was the responsibility of policy choices, of course, must be made by the legisla- the Federal government with the assistance and co- tive bodies and elected executive officials of the coun- operation of private enterprise and State and local try. governments "to coordinate and utilize all its plans, No single agency in the national government has a functions, and resources for the purpose of creating clear assignment to develop national economic devel- and maintaining, in a manner calculated to foster opment and urbanization policy and goals. The cur- and promote free competitive enterprise and the gen- rent public debate about what is variously called eral welfare, conditions under which there will be "urban-rural balance," "balanced economic develop- afforded useful employment opportunities, including ment," or "balanced urbanization" highlights the need self-employment, for those able, willing and seeking for the establishment of a national planning process to work and to promote maximum employment, pro- which can provide the framework within which rele- duction, and purchasing power." vant policy issues can be decided. At the present time, Three years later, the declaration of National Hous- many national decisions, including location of Federal ing Policy stated that "the general welfare and securi- installation and projects, the geographic location of ty of the nation and the health and living standards recipients of Federal contracts, the granting of tax of its people require housing produCtion and related and other incentives, and the approval of grant-in-aid community development sufficient to remedy the seri- assistance for a host of projects, affect directly or in- ous housing shortage, the elimination of substandard directly the geographic distribution and pattern of and other inadequate housing through the clearance economic development and urbanization. In many of slums and blighted areas, and the realization as cases the impact has been inadvertent; in other cases soon as feasible of the goal of a decent home and a a desired objective of one program has been cancelel suitable living environment for every American fami- out by decisions in another program area. ly, thus contributing to the development and redevel- The activities of virtually all of the major Federal opment of communities and to the advancement of departments and agencies directly influence national the growth, welfare, and security of the nation." economic development and urbanization: Yet, the policy and the process are at present frag- mented and uncoordinated. As a result, Congress in Those of the Department of Housing and Urban considering new legislation is not provided with a Development are almost exclusively concerned with long-range urbanization strategy to assist it in assess- urbanization. ing the impact of specific decisions on broader prob- Transportation facilities are one of the key determi- lems and issues. Moreover, States and local govern- nants of economic activity and urban growth,and ments do not have an articulated national framework the Department of Tra:isportation's programs and of policy within which their own policies can be devel- policies have a major impact on where growth takes oped. place and on the economic stability of regions. If the nation is to embark on a policy of encourag- The Economic Development Administration in the ing a more balanced urbanization and of taking steps Department of Commerce, operating under the toward achieving this goal, a national policy frame- Public Works and Economic Development Actof work with appropriate roles for State and local gov- 1963, is directly concerned with economically de- ernment is absolutely necessary. Choices must be made among various measures designed to encourage the pressed regions. The Department of Agriculture is increasingly con- development of alternative locations of economic ac- rural tivity and urbanization, so that a wider range of geo- cerned with the economic status of depressed graphic choices are available to those seeking jobs and areas. business sites. A more balanced geographic pattern of The utilization of public lands underthe jurisdic- urban growth and economic development must be fos- tion of the Department of Interior caralso have tered, and selectivity must be exercised. Hence, a con- significant impact on urbanization patternsboth by text within which to evaluate choices is needed. the release of reclassified surplus land forurban de-

132 velopment and by providing recreational and open nomic accounts have tended to be nationwide in their space facilities for urban concentrations. scope, neglecting smaller areas andregions. However, The avail? bility of a host of services assisted under only tentative exploratory steps have been taken to the programs of the Department of Healfa, Edu- develop the statistical systems necessary for critically cation and Welfare can also fundamentally affect assessing social changes and developments on a State where urban growth takes place. and regional basis. In its lecent report, Fiscal Pal( nce in the American The list obviously could be extended. Congressional Federal System, the Commiss_ua recommended the committee structure to a significant extent parallels establishment of a national system for the collection, this distribution of responsibilities among executive analysis and dissemination of social statistics with agencies and produces a similar concentration of spe- full participation by Federal, State, and local govern- cific program areas. ments, emphasizing the development of such data for The Commission believes it obvious that if a co- sub-State geographic areas as well as State and na- herent and consistent national urban growth policy tional aggregates. Much of the information needed for is to be formulated and carried out, extensive institu- a system of social accounts is now being collectedby tional arrangements will have to be made in both the the Bureau of the Census, the Department of Labor, executive and legislative branches of the Federal Gov- the Justice Department, the Department of Health, ernment. Whether executive responsibility would need Education, and Welfare and other Federal agencies. to be centralized within an existing unit of the Presi- dent's Executive Office or whether select or special However, at present there is no centralized responsi- committees should be established by the Congress, bility for extracting the significant data and develop- the Commission does not presume to say. Naturally, ing systems of social indicators, social accounts, region- the alternatives would have to be considered carefully al accounts, and other appropriate analytical devices.1 in arriving at final decisions regarding the organiza- Although much more advanced systems of economic tion required for an effective discharge of the new accounts have been developed, series are only now be- and rather awesome responsibilities involved. ginning to be available for smaller areas. For example, In evolving the organization and procedures for personal income series are now being developed by formulating and carrying out national urban growth the Office of Business Economics on a county and policies, particular attention must be directed to as- metropolitan area basis. In another earlier recom- suring adequate opportunities for consultation with mencLzion, the Commission urged preparation of State and local governments. Such consultation should timely and geographically detailed data on industrial be formalized and occur at all stages of policy devel- activity in general and plant location trends in par- opment and execution. The urban growth policies of ticular to help fill this informational gap.2 State and local governments should be taken into ac- Detailed and social and economic indicators such count in developing national policy. For this to be as those previously recommended by the Commission accomplished meaningful representation of State and would constitute basic points of departure for the kind local views is essential. Furthermore, there must be as- of analysis that would be necessary in the develop- surances that consultatior and cooperation will con- ment of national, regional, State and local urbaniza- tinue as policies are executed. States and local gov- tion policies. For example, a price index to compare ernments whose plans and policies are affected by prices of a common market basket of goods and serv- Federal projects and programs must be kept informed ices among cities of various sizeswhich would obvi- of evolving federal plans and the development and ously facilitate analysis of the economies or disecono- program decisions made pursuant to them. Only mies of scale in the private sectoris presently not through such close and continuing coordination and available. This is paradoxical for two reasons: first, consultation can meaningful nationwide planning for because comparable information is available for the public sector which is the smaller part of our economy urban growth take place. and second, because related indicessuch as cost of As mentioned earlier any significant effort to pro- living and historical price data for selected cities vide for the evolution of urbanization policy will call ,ither exist or are in preparation. A price index for a for substantial improvement in the development, col- given point in time covering cities of various sizes lection, and analyzing of social and economic data to would be closely related to work already in existence allow the measurement of existing urbanization and and further elucidate one aspect of the urban growth economic activity, to test the potential impact of al- problem. ternative policies and programs, and to evaluate the Another acute problem facing the country in es- effectiveness of adopted programs. Considerable prog- tablishing rational policies concerning population set- ress is being made in the measurement and analysis tlement and urbanization is the shortage of adequately of economic growth and development, although eco- trained and qualified professional personnel. A major

133 reassessment of existing educational and training pro- natural resource oriented. Beginning with the TVA, grams is essential. they have progressed through river basin interagency Educational programs for urban administrators as commissions and the Federal-interstate Delaware well as for a host of specialists in the various facets of River Basin Commission to the river basin planning urban and urban-rural affairs must be developed. commissions established under the Water Resources Economists, sociologists, political scientists, planners, Planning Act of 1965. Efforts under the Area Rede- statisticians, and other professionals n,!ed to be trained velopment Act of 1961 and its successor, the Eco- to provide the capability for assembling, evaluating, nomic Development Act of 1965 have been directed analyzing, and applying the information which is es- toward establishing multi-State regional districts to sential to the development of urbanization policies at help depressed areas with relatively high levels of un- national, State, and local levels and for rural as well employment and underemployment. Prior to passage as existing urban areas. of the Economic Development Act Congress had Several Federal grant programs are already avail- separately authorized the establishment of the Appa- able to provide assistance in establishing pre-entry lachian Regional Commission. Although similar to professional,in-service, and citizen public service the regional bodies authorized under the Economic training programs. The Intergovernmental Personnel Development Act, the functions and fiscal powers of Act of 1967, which has passed the Senate, would as- the Appalachian Regional Commission are broader. sist in establishing expanded in-service training pro- The initiation of a national policy naturally would grams by providing additional grant-in-aid funds for involve a reassessment of the role of multi-State eco- this purpose. The Advisory Commission has supported nomic development commissions. Such an evaluation the general objectives of this bill. In addition, the pro- would include such issues as:(1) greater or lesser posed Education for the Public Services Act would autonomy for the commissions; (2) whether or not provide Federal support for pre-entry training for the such regional commissions should be limited to "de- public service without restrictions to specific function- pressed areas"; and (3) the criteria and methods for al categories. identifyingregions andfor establishingregional boundaries. Recommendation Two. Redirection co/ Multi- The recently issued Executive Order (December State Economic Planning and Development 29, 1967) "prescribing arrangements for coordination Agencies of the activities of regional commissions and activities To facilitate the development and implementation of the Federal Government relating to regional eco- of a national policy dealing with urban growth, the nomic development and establishing the Federal Commission recommends that the President and Advisory Council on Regional Economic Develop- Congress reassess the policies and structures of the ment" establishes a framework for closer coordination existing and proposed multi-State economic plan- of Federal participation in regional programs and for ning and development agencies as they affect the geo- evaluation of programs within the framework of the graphic distribution of economic and population existing statutory authorization. Although reported in growth. The Commission further recommends that the press as markedly changing the relative roles of such agencies be charged with taking national policies Federal and State governments in the establishment into account in the formulation of their regional pro- and operation of regional commissions, the Commis- grams and with developing regional components for sion finds no significant intergovernmental implica- the formulation of national policies and programs tions in the change. dealing with urban growth. Recommendation Three. State Policy Dealing The current interest in regions for economic devel- With Urban Growth opment and urbanization is but the latest manifesta- tion of a continuing preoccupation in a Federal na- To assure full and wise application of State gov- tion geographically as large as the United States. The ernmental resources consonant with the economic and regional analysis in Chapters I and II highlights the social health of both rural and urban areas in the diversities among regions in population growth and State, the Commission recommends the development in the growth of income on total and per capita basis. of State policy incorporating social, economic, and Any kind of urban growth planning on a national other considerations to guide specific decisions at the State level which affect the patterns of urban growth. level obviously must be tailored to meet the differing The implementing legislation should provide for growth patterns of the various regions of the country. (1)coordination by an appropriate State agency of To facilitate this process both existing and revised State, multi-county, metropolitan, and local plan- regional institutional arrangements would be needed. ning, and relating such planning to regional and na- The earliest efforts in this area were frequently tional considerations; (2) conformity of programs 134 and projects of State agencies to the State urbaniza- system may be further eroded. The States need to act, tion plan; and (3) formal review by an appropriate rather than merely to react in this field. State agency for conformance with the State plan of For States to fulfill their key role in the develop- metropolitan area and multi-county plans and of ment of urbanization policy, they must have a plan- those local comprehensive plans, implementing ordi- ning process that will develop the urbanization poli- nances, and projects having an impact outside the cies needed to channel their growth. The States, jurisdiction's borders. through constitutional and statutory provisions deter- The Commission further recommends that multi- mine the general outline and many of the details for county planning agencies be assigned responsibility to the specific structure, form, and direction of urban review applications for Federal or State physical de- growth. They must supply the guidance for specific velopment project grants in nonmetropolitan as well local government, metropolitan, and multi-county as metropolitan areas. planning and development programs. They must es- The Commission also recommends that the State tablish the link between urban land-use and develop- legislatures provide within their standing committee ment oriented local planning efforts on the one hand, structure a means to assure continuing, systematic and broader regional and national objectives on the review and study of the progress toward a State other. Where this linkage is missing, participation in policy dealing with urban growth. regional efforts is limited and the realization of national Finally, the Commission recommends that the policies becomes much more difficult. States give consideration both to the national policy Every State has some type of State planning capa- and to the views of local governments in the formula- bility. Yet, support for State planning varies widely, tion of State plans and policies dealing with urban as does the form of organization and authority given growth. to the agency or agencies involved. Although the evo- Since its inception, this Commission has issued more lution of effective State planning can be seen in a few than a dozen reports dealing with various aspects of States, it is safe to say that in no State government is urban development and the government of urban planning sufficiently advanced to assume its role in and metropolitan areas. On each occasion, we have the development of State land-use and urbanization emphasized the key role of State government in urban policy recommended above. Thus far no State has affairsa role often ignored during the past two prepared a true State urban development plan. The decades by the State themselves, by congressional Hawaii State Zoning Plan, however, points the direc- committees, by Federal agencies and by many seg- tion. ments of the academic community, the housing in- In its recent report on Fiscal Balance in the Ameri- dustry and the public-at-large. This role stems from can Federal System, the Advisory Commission stressed the farts that (1) urbanization must be accompanied the importance of a strong well-staffed, State plan- by local government of some kind and (2) the struc- ning program directly under the Governor. The re- ture powers and other ground rules for local govern- port recommends that each State develop a strong ment are provided by State constitutions and statutes. planning capability inits Executive Branch. The The State not only has a responsibility for coping Commission concluded that the planning function with urbanization after it has taken place; but hasan should include formulation for consideration by the equal, though less apparent, responsibility for plan- Governor and legislature of comprehensive policies ning for the urbanization to come. Inmany States the and long-range plans for the effective and orderly de- prevailing attitude toward economic development and velopment of human and material resources of the urbanization has been "the more the better," with State; that it should develop a framework for func- little if any regard for where and under what conditional, departmental and regional plans; and that it tions fiese processes should be discouraged. The pb- should provide assistance to the Governor in his litical attractions of a laissez faire and expedient poli- budget-making and program evaluation roles.3 cy are obvious. Yet, the economic, social and political The Commission further recommended that Con- consequences of such a policy are beginning to appear gress enact legislation to provide an overall revision and a number of States are beginning to formulate of section 701 of the Housing Act of 1954. It was policies and plans designed to assure more balanced urged that Federal planning assistance be employed and orderly urban development throughout the State. to strengthen comprehensive planning as an arm of There is an additional reason for State action. elected chief executives at the State, areawide, and Urban growth is another one of those emerging areas local levels; that a closer relationship between plan- of public policy where inaction by the States may lead ning, programming, and coordination be required; to such a degree of national dominance that the posi- and that all federally aided functional planning be tion of State government in the American federal related to comprehensive planning. Finally, it was

135 recommended that provision be made for State plan- opment regulationsbut only in those areassuitable ning agencies, especially those with federally aided for urban development and with improved ap- comprehensive State planning programs, to review proaches. and comment upon all local and areawide applica- Most States are large enough and contain enough tions for urban planning and assistance.4 In its sur- diverse economic, physical, and social elements within vey of State planning programsand efforts, the re- their borders to necessitate some kind of regional or- port provides a general picture of the presentsitua- ganization tofacilitatelocal planning. For some tion. States with limited geographic area or sparse popula- A State urban development plan should be suffi- tion this may not be necessary. In others, it may prove ciently specific and not merely classify land as "suit- necessary only in metropolitan areas. Yet, theStates able" or "unsuitable" for urban development. Poten- increasingly are finding it expedient to establish re- tial new urban growth centers should be identified gional organizations for planning and development and designated and possible new community sites purposes. could be selected. In time, such a plan could become In at least 36 States, planning areas have been es- sufficiently detailed to indicate, for example, substan- tablished, sometimes primarily as administrative re- tially developed urban areas that were suitable for gions of the State planning agency, other times as filling in, including urban renewal and increases in locally initiated planning regions, and in still other density. In areas classified as unsuitable for urbani- cases as State designated planning orplanning and zation, there could be further differentiation into development regions. To implement a State urban de- areas for agriculture, recreation,greenbelt treatment, velopment program such as that recommended, States nature conservancy, water conservation, andflood may wish to consider decentralization tocombined control. planning and administrative regions. The statewide program, then, should go beyond The multiplication of differing regions for varying land classification and the negative controls of zoning. State and Federal planning and program purposes It should include appropriate positive measures as within States has introduced an element of confusion, well, such as land banks, urban development authori- complexity, and lack of coordination which can fre- ties and corporations, land and development rights quently thwart the whole concept of decentralized purchase, new community building programs, urban government. A number of different approaches to renewal, and housing. State programs for highway correcting this condition are possible, but the basic construction, State parks, air and water pollution goal should be maximum conformance to State-desig- abatement,waterconservation,healthfacilities, nated regional borders and a minimum number of should be coordinated with the State urban develop- differing organizational structures. ment program. In a recent report on the administration of the A system of checks and balances including consul- poverty program in the United States, the Advisory tation and review would be necessary to prevent arbi- Commission discussed the problem of the prolifera- trariness in the administration of a State urban de- tion of districts with varying borders and administra- velopment plan. There should be an adequate hear- tive organization. It recommended the establishment ing procedure to provide an opportunity for interested of multi-purpose, areawide public agencies in nonmet- parties to express their views. Local and State agen- ropolitan areas to undertake physical, economic and cies should have the right to petition for changes in human resource planning and development programs the State plan. Private property owners should be over multi-county areas.5 Subsequently,in a Septem- able to seek changes in the plan through their local ber 2, 1966, memorandum on "Coordination for De- governments. The private property owner who con- velopment Planning," the President requested Federal vinces his local government of the need for an amend- departments and agencies to encourage State and ment to the plan would have his petition heard local development planning agencies to work together through appeal by the local jurisdiction. in using common or consistent planning bases and in- The State urban development plan would not show dicated that boundaries "for planning and develop- future land use in the detail necessary for specific ment districts assisted by the Federal Government land use and development controls and regulation. should be the same and should be consistent with es- It would establish standards, but the standards would tablished State planning districts and regions." still be generalized. The final specific regulation of The Commission has previously recommended that development within State urban development plan States authorize and encourage the establishment of classifications would generally remain with the coun- metropolitan area planning agencies 6 and councils of ties and cities having jurisdiction. In effect, this would governments.7 In over two-thirds of the States, met- be leaving with local government most of its present ropolitan and other areawide planning agencies have responsibility for zoning, subdivision, and other devel- been established and, in over half the States, there

136 are councils of governments operating in metropoli- studied and considered as possible components of na- tan areas. A number of the councils of governments tional, State, and local urban growth policies. Some serve as areawide planning agencies. Whether or not of these measures are particularly suited for consider- the planning function is combined with other func- ation at the national level, some may be proper for tions in a service districtor functional authority, it action at either the national or State level while is particularly important that district borders for the others are appropriate only for State and local con- various Federal and Stateprograms be as congruent sideration. For instance, the Federal Government has as possible. Whatever specific administrative arrange- the primary role in tax incentives for industrial loca- ment is used, representation should be afforded for tion and policies influencing population mobility. both State and local governments in the planning Loan programs to influence location may be under- process. taken by both Federal and State governments. Sug- For the State urbanization plan to become fully gestions are included for Federal and State roles in effective, a link must be established with multi-coun- land acquisition and improvementforlarge-scale ty and metropolitan area plans and with those local urban and new community development. These ap- plans and developmentmeasures having an impact proaches include both institutional arrangements and outside the borders of the local government.here financial support. Finally, the States are urged to are a number of approaches possible for implement- consider measures to strengthen local government ing State policies. A review and comment approach capability to deal with urban growth. to local actions could be authorized. State aid could Possible approaches to implementing a national be withheld from local projects which do notcon- urban growth policy are included in Recommendation form. The most direct approach is to require conform- Four and approaches suggested for consideration by ance with the State urbanization plan. For local gov- State governments are made in Recommendation ernments, this requirement should apply not only to Five. Recommendations of the Commission made in plans but also to land-use development control and previous reports that are relevant to urban growth regulation ordinances and to specific projects which policy are summarized at appropriate points in the have an impact beyond the borders of the localgov- following discussion. ernments. There should be a similar requirement for conformance of programs and projects of Stateagen- Recommendation Four. Possible Components of cies to the State urbanization plan. With thesepro- a National Policy Dealing With Urban visions, State policies could provide the guidance and Growth directionnecessaryfortherealizationof urban The Commission is of the opinion that national growth objectives. governmental policy has a role to play in influencing Conversely, there is equal necessity for adequate the location of people and industry and the resulting and timely consultation by the State government with patterns of urban growth. Some of these ways are of local officials. The State planning process must pro- proven capability; others are untried. The following vide ample opportunity for continuous and institu- should be considered as useful approaches to the im- tionalized representation of local government views. plementation of a national policy regarding urban At the points where State and local urban develop- growth: ment plans impinge upon one another an exchange of views and information is essential. There is already Federal financial incentives, such as tax, loan, or considerable experience in the States with bringing direct payment arrangements for business and in- local governments into the State planning process. dustrial location in certain areas; Interagency State planning programs in several States placement of Federal procurement contracts and include representation of local governments. Many construction projects to foster urban growth in States have developed planningregionsthrough certain areas; which much closer contact with local governments is Federal policies and programs to influence the mobility of people, to neutralize factors producing possible. It is particularly important that close coordi- continued excessive population concentrations, and nation continue into the actual development stages to encourage alternative location choices; such pol- in order that the planning process may be fully effec- ides and programs might include, among others, tive. resettlementallowances,augmented on-the-job POSSIBLE COMPONENTS OF URBAN .training allowances, interarea job placement and GROWTH POLICIES information on a computerized basis, and the elimination or reduction in the "migrational pull" of In the following two recommendations, the Com- interstate variations in public assistance eligibility mission suggests a number of measures that should be and benefit standards;

137 strengthening the existing voluntary Federal-State Labor surplus city neighborhoods in large urban programs of family planning information for low- areas are characterized by considerable underemploy- income persons; ment and unemployment, recent out-migration of Federal involvement and assistance under certain "blue collar" industry and difficulty of resident job conditions (such as assurances of an adequate seekers in traveling to blue collar jobs in suburbs, but range of housing) for large-scale urban and new ample public investment in facilities vital to in- community development. dustry. These factors suggest a policy of attracting new business and industry to such areas and of pro- A. INFLUENCING INDUSTRIAL LOCATION viding assistance in helping firms employ and train Earlier in this report, the mechanisms of communi- unskilled workers; and simultaneously, of launch- ty economic growth were examined; it was noted that ing a program of relocation assistance for residents actual growth depends on a community's success in to specific job surplus areas either in the suburbs or attracting additional spending withinitsconfines outside the metropolitan area. which in turn leads to a multiplier effect.It was Small rural growth centers generally are "urban pointed out that this multiplier effect can be gener- places" located in essentially rural counties not part ated by any additions to spending, but that business of any metropolitan area. They have experienced investment decisions and governmental outlays con- a steady population and job growth in recent years; stitutethe two potentiallyif not actuallymost serve as major trade, transportation, service, and dynamic sources of new spending. Moreover, we also social centers for their surrounding areas; and are found that both of these categories of decisions signifi- relatively free of major socio-economic problems. cantly affect population movement and the location These traits prompt a policy of attracting more of economic growth. business and industry, assisting industry to train Currently, neither business investment decisions nor more workers, and inducing both rural and urban governmental spending are weighed in terms of mu- people of low-income to move in, through reloca- tual consistency or their impact on the national ur- tion assistance. banization process. The present pattern and projected Medium size cities with job opportunities generally future trends of urban development portend, as we have substantial physical plant in place, steadily have seen, growing urban congestion, intensified ur- growing population and economic activity, socio- ban and rural poverty, and an economic mainstream economic problems still open to solution, and strong with large backwash areas. To achieve a better geo- linkages to sizeable surrounding areas through good graphic distribution of economic and population transportation and communication. These factors growthto implement a national urbanization policy indicate a policy of attracting low-income people the Commission in this section suggests several ap- from rural and large metropolitan centers through proaches to influencing industrial location that should relocation assistance to fill the expanding job op- be considered by the Federal government. In the fol- portunities. lowing section, several measures to influence popula- Labor shortage suburbs in large urban areas are tion movement are presented. major growth points, characterized by high level In administering locational incentives, care must economic activity, and an expanding demand for be taken to assure that they are used selectively to many kinds of labor, including blue collar. This accomplish urban growth policy objectives. Such ob- suggests a policy of enabling low-income workers jectives would involve encouraging industrial loca- to live near suburban employment and assisting tion in and population movement to certain clearly low-income in-migrants from other parts of the identified areas. The following is an example of the metropolitan area to relocate near suburban jobs. kinds of communities and areas that might be so New communities ideally are characterized by identified: initiation and growth of communities of diversified Labor surplus rural counties generally are areas of population and economic activity. Policy indica- in- underemployment, characterized by an older, un- tion:relocationassistancefor low-income derskilled, and undereducated population, resistant migran ts from labor surplus areas and, where a to moving. Absence of transportation and compro rata share of low-income housingis ensured, munication linkages as well as natural resources governmental assistance for the developer in ac- make economic growth unpromising. These factors quiring and developing land. combine to suggest an area policy of job training Of the above types of communities, one warrants for residents and assistance in relocating to job further comment at this point: "small rural growth ,surplus areas other than major metropolitan cen- centers"towns and smaller cities, not in metropoli- tem tan areas, with "growth potential." Growthpotential

138 in our opinion, would be indicated by the presence off point" from which it can reachnew economic of certain favorable conditions identified in recent heights. studies of the Economic Development Administration Governments, then, obviously have in theirgrasp a and Appalachian Regional Commission studies. These number of levers capable of influencinga shift in the include: location of economic activity. The series of possible steady recent growth in population and economic actions described below show howuse might be made activi ties ; of the vast fiscal resources of the Federal Government strong linkages to a sizeable surrounding area for in furtherance of national and State urban growth which the community acts as a major trade, serv- policies. Possible State actionsare set forth under ice, and social center; Recommendation Five. transportation and communication ties to the area; 1. Enactment of legislation by the Congressto pro- and vide Federal incentives for businessor industrial availability of land for development, and other de- location in furtherance of national urban growth sirable topographic features. policy While the presence of such features would be fa- The National Governmentcan use itsfiscal re- vorable indicators of growth potential, the small size sources to influence the location of economic activity of the communities suggests that such growth cannot in order to achievea more balanced distribution of be considered a sure thing. In other words, the like- population and economic growth. This would involve lihood of sustained balanced growth in a small com- legislation to encourage business and industryto lo- munity is much more fragile and problematic than cate in small rural growth centers and in those neigh- in larger communities. For one thing, these communi- borhoods of large urbanareas chronically classified ties must contend with the inexorable "pull" of large as sections of concentrated unemployment or under- urban centers upon rural people. Outside (govern- employment by the Secretary of Labor. An incentive mental) help then is probably needed to increase the program for firms locating in areas targeted forpopu- chances of turning potential into actual growth. lation and economic growth might well include: (a) Aggregate business investment in new plant and preferential tax treatment in the form of equipment now approximates $60 billion annually. a Federal income tax credita subtraction from computedtax While much of this replaces outmoded facilities and liabilitygranted by the Secretary of the Treasury machinery, a vast amount represents the opportunities upon certification of the Secretary of the Commerce; private enterprise sees in new products andnew (b) preferential financing arrangements in the form markets. The diversion of an incremental fraction of of below market rate loans granted by the Secretary this amount by the use of fiscal incentives to small of Commerce; or (c) locationcost offsets in the form rural growth centers and to labor surplus neighbor- of direct payments by the Secretary of hoods in large metropolitan areas could well change Commerce based on capital outlayor operating cost differentials the disturbing trends and future economic prospects between the costs that would be incurred for vast areas of the nation. by a firm locating at the targeted site andat a more economi- Through its own direct action and throughpur- cally advantageous site elsewhere, but in chases from the private sector, government has vast no case should the payment exceeda specified dollar amount. potential for influencing the locus of economic activi- If measures such as theseare adopted, the dollar ty. An obvious example is the decision respecting the amount of any tax credits or preferential financing location of public facilities and associated publicem- ployment. Accordingly, whetheror not government arrangements, estimated by the Secretary of the Treas- chooses to influence private business locations through ury, should be included each year for informational the exercise of tax incentivesor other fiscal devices, purposes in the President's budget. Also, the enabling it can use its own authority to spend, purchase, and legislation should bear an expiration date ofa few locate public buildings toencourage population shifts (e.g., 5-7) years in the future so that the Congress and economic growth in selected places. and the Executive Branch might assess costs and bene- Encouragement of economic growth is alreadya fits of the subsidy approach. part of Federal, State, and local governmental poli- The facts and trends disclosed in this report indi- cies. For urbanization policypurposes, however, such cate that more jobs will be needed in small rural cen- measures need to be deliberate and selective. Their ters with growth potential if they are to attract the purposeafter allis to channel private investment jobless from both rural and urban areas, and in large to those locations where economic growth will have central cities to help reduce underemployment and its maximum impact on urbanization policy goals unemployment. The Federal Government should con- where a policy will movea community to the "take- sider seriously the merits of direct, positive action

139 with regard to the greatest single determinant of fu- in-city traffic and parking congestion; ture population distribution in the United States development of circumferential highways or belt . namely, the geographic location of new business and ways bringing markets and supply sources closer to industrial enterprises. Jobs could be created in rural suburban locations; and growth centers and central city neighborhoods if busi- the lack of adequate mass transit between central ness and industry were given an incentive (in the city and suburbs, making home-to-job travel costs form of a Federal income tax credit) to locate there. prohibitive for the city blue collar worker; while This would be of great assistance in (1) setting in at the same time economic or racial barriers bar motion a braking force on future population concen- him from moving his residence near a suburban job. trations, and (2) coping with existing urban prob- In time, it is hoped, that some of these barriers will lems. be lowered or removed with improved mass transpor- Rural growth centers outside metropolitan areas tation, the provision areawide of housing for low- provide a near-at-hand destination for poor out- and moderate-income families, and the diminution of migrant jobseekers from rural poverty areas who racial discrimination in the suburbs. Efforts also will would otherwise head for big urban centers, thereby have to be made to retrain and relocate some of the aggravating an existing labor surplus situation. Prox- city's jobless. Meanwhile, however, attempts might imity is also likely to enable these communities to at- well be made to bring jobs into large central cities. tract those rural jobless who are reluctant to leave This means bringing into their neighborhoods busi- their home communitythose constituting the hard- ness and industries which can offer blue collar oppor- core rural poor. Finally, such small places may also tunities needed by the semiskilled and unskilled attract out-migrants from the central cities in search workers constituting the labor surplus. of jobs. The factors which could assist the Federal Existing Federal programs in urban communities administrator distinguish small communities that have emphasize individual services and rehabilitation; they "growth potential" from those that do not, have pre- are not directed toward influencing private industrial viously been suggested. and business location decisions to locate plants near The foregoing alternatives, as they relate to rural available people in city neighborhoods. The Economic areas, are parallel to legislation pending in Congress Development Administration is prevented, by a re- S. 2134, the proposed Rural Job Corporation Devel- strictive statutory definition of redevelopment areas opment Act of 1967. This bill would provide a series from entering most urban communities. The Depart- of tax incentives to encourage private investment ment of Labor has programs to provide training for "with the aim of utilizing more fully and effectively employees, but does little to stimulate creation of new the human and natural resources of rural America, jobs. The Office of Economic Opportunity had a slowing the migration from the rural areas, which is tangential responsibility for helping create urban jobs principally the result of a lack of economic opportuni- through its funding of Small Business Administration ty, and reducing the population pressures on our met- Development Centers, but this program has been ropolitan areas."Incentives include increased tax terminated. A Federal incentive program for indus- credit against investment in plant and machinery, try and business locating in central city labor surplus accelerated depreciation schedules for such invest- neighborhoods would be an important step toward ment, extra deductions for wages paid to low-income filling this gap in Federal program for stimulating persons, and assistance in worker training. job creation in central city neighborhoods. It also In addition to upgrading the economy of rural would serve to increase a city's tax base, thus allow- America to reduce the urban pull, steps can be taken ing provision of more and better public services. to alleviate the immediate problem of unemployment Governmental incentive techniques toinfluence in central cities. The latter, after all, is caused in part business and industrial location may take the form by the long-sustained in-migration of rural poor. Posi- of preferential treatment, preferential loans, or direct tive Federal action could attract business and indus- payments. Each technique has its advantages and try to central city neighborhoods of labor surplus. disadvantages relative to the others and each must be The unemployed in these neighborhoods consist considered in the light of how well it effects a net mostly of semiskilled and unskilled workers. Their job- social benefit. For example, should incentives be of- lessness is the product of a number of social and eco- fered to all firms making a location decision in a nomic forces including: designated area? The market orientation of many re- the flight of industry to the suburbs, caused by such tail and personal service businesses suggests that a lo- economic factors as a general shift to production cational incentive to these firms may not be very use- techniques which require extensive land and single- ful in providing additional social benefit. Should in- story production lines; centives be designed to increase, up to a limit, de-

140 pending upon the amount of capital investment or showing to the satisfaction of the Congress that tax should they vary with the labor force characteristics credits were achieving their desired objective. of the firm? The net social benefit ofa business loca- The tax incentive would represent Federal benefits tion decision is more likely to be greater if the firm to its recipients, just as a direct grant or subsidy. To islabor intensive rather than capital equipment make this clear, the Secretary of the Treasury should oriented. Finally, should incentives be made available estimate the amount of the credit used annually and to firms locating with short-term leases in an ap- state it as an expenditure in the budget. This would proved area? Some provision probably should be identify the credit properly, and would permit the made for the firm's length of stay in a designated Bureau of the Budget and Congress to scrutinize it in area. relation to the tangible benefits obtained in terms of Tax Incentives. A Federal income tax credit might the geographic dispersion of industry and of jobs be a percentage of various bases:(1) investment added in labor surplus areas. in plant and equipment; (2) amount of payroll; The tax incentive approach is not without its critics. and (3) value added to produce. Each method has its They point out that tax incentives are erratic in opera- virtues. The first would tend to encourage investment tion because the amount of the benefit to any indi- in the nonlabor factors of production, thus emphasiz- vidual depends upon number of unrelated circum- ing automation and technological improvement. The stances connected with his own tax computation: second would emphasize the use of labor and thus whether he has any tax liability at all, what his effec- would more immediately further the objectives of an tive rate is, and so forth. urbanization policy seeking to attract people by jobs. Another criticism leveledat thetax incentive But it might tend to discourage technological im- approach is that it may involve "tax people" in deci- provemenis.Thevalue-added-baserelatingthe sions which they have no special competence to make. amount of the tax credit to the amount of value If the Federal government wants to reward people added by the business or industry's own activities for making certain business location decisions, the would steer a course between the other two. Under administration of these incentives ought to be handled any of these three approaches, the Secretary of the by personnel familiar with location problems. Treasury would be required to grant the tax credit Where two Federal agencies are involved in deter- upon certification of eligibility by the Secretary of mining what firms are entitled to tax benefits, a com- Commerce. plex administrative process may result, with the self- The tax credit approach has several virtues when administering feature of the program, and the func- compared to the alternative subsidy arrangements. tional specialization of governmental agencies (e.g. Business could count on the tax credit more than it tax administration) lost. Subsidy payments might just could on the availability of low-interest loans or di- as easily be made under the supervision of trained rect subsidy payments. Tax policy changes are less personnel and on a more timely basis than that likely to occur than changes m policy respecting the associated with annual tax filing deadlines, according other forms of subsidy, depending as the latter do on to these critics. the overall Federal financial condition. With a tax incentive, itis usually impossible to Tax credits interfere least with business decisions. distinguish between results that relate to the incentive Although the tax credit would be conditioned on a spe- and results that would have occurred without it. This cific business location decision that accords withgen- means that some part, frequently a large part, of the eral policies adopted by Congress, it would not sub- government's revenue loss may go as a windfall to ject business to the detailed scrutiny normally associ- those who were perpared to take such action without ated with Congressional appropriations or Federal regard to the incentives. lending activity. Tax credits have greater appeal to Critics also note that because the tax writing legis- hminess simply because they permit greater flexibility lative committees will have difficulty in evaluating in managerial decisions. data relating to whether or not particular location Because tax credit incentives would represent a cost to all taxpayers not benefitting directly from them, decisions were made in response to the tax incentive. they should not and need not be of indefinite dura- Congress might find it expedient, even after enacting tion. Within a few years after tax credits are initiated temporary tax incentive provisions, to extend the they will either have had an impact on urbanizationor incentive more or less automatically. This, the critics have proved ineffectuaL By incorporating a termina- contend, is a likely outcome, because the govern- tion date in the legislation, review of the program mental costs covered by tax incentives are less obvious after a trial period would be assured. This would also to the public than direct expenditures. forestall, without further legislation, any continuing Critics further belabor the tax incentive approach draw down on Federal resources in the absence of a because it must rely exclusively on the profit motive

141 which requires that business concerns focus on increas- without threatening the equity or control of the ing the productivity of the trained worker rather than entrepreneur. Yet the soundness and securityof the on the need of the unskilled andunemployed. More- public's investment can be adequately protected by over, they argue, it is of uncertain value to promote the Federal agency administering the loan. new and independent firms which lack the opportu- Opposition to this approach could be expected nity to write off their losses in a risky location against from those who question the use of Federal credit for profits earned at well-established sites. private gain regardless of the basic merits of fostering Below Market Rate Loans. Loanable funds may be a better poulation distribution in the country orof in short supply or the risks normally associated with alleviating the immediate problem of unemployment a business venture may result inrelatively high inter- in centralcities. Others would contend that this est rates and therefore effectively deter businessand approach would result in unfair competition to com- industrial firms from locating in areas where economic peting business and industry also seeking to expand growth would be desirable. The Federal Government but not in areas designated for favorable Federal should reduce the financial obstacles for business and loans. A more pertinent criticism is that the loan industrial location in small rural growth centers and technique may make the size of the benefit dependent in areas of chronic labor surplus to facilitate job upon the amount of capital investedrather than upon creation in areas specifically identified for future eco- the volume of payrolls. nomic growth, pursuant to a national urbanization The below-market interest rate loans would repre- policy. To accomplish this objective, the Secretary of sent a Federal subsidy to their recipients akin to a Commerce could be empowered to offer lower-than- direct grant. It would be appropriate therefore that market-rate loans to influence geographic location. the Secretary of the Treasury estimate and report the Below-market-rate loans for business ventures have dollar cost of such Federal loans for budgetary pur- been used in a variety of Federal programs: to assist poses in order to give Congress andthe Executive small businesses unable to obtain needed financing Branch an opportunity to evaluate the cost effective- elsewhere on reasonable terms; to help victims of flood ness of this incentive designed tobroaden the loca- or natural disasters; to help veteransbuy a business or tional choice for industry and to create new jobs in otherwise enable them to undertake or expand a legi- chronic labor surplus areas. To give the public iron timate business venture; and to assist various kinds clad assurance that it will not be asked to bearin of private and public organizations in supplying elec- perpetuity the cost of an unsuccessful program, trical services to rural areas (rural electrification). authorizing legislation for low-interest Federal loans The Public Works and Economic Development Act should contain a termination date beyond which the of 1965 authorizes the Secretary of Commerce to make program would automatically ceasein the absence of loans to aid in financing any project within a rede- affirmative Congressional action to continue it. velopment area for the purchase or development of Direct Payments. The most straightforward method land and facilities (including machinery and equip- of encouraging the wider geographic dispersalof ment) for industrial or commercial usage if financial business and the creation of new jobs in urban cc n- assistance is not reasonably available from private ters of chronic labor surplus is to make directsubsidy lenders or from other Federal agencies. EDA made 63 payments to entrepreneurs who locate in thedesig- project loans in 1967 in 26 States and Puerto Rico. nated areas. The economic development purposes to They amounted to $50.6 million out of total project be served may be of such transcendant importance costs of $88.7 million. that this approach would be warranted. Incentives for business and industrial location in To establish an effective direct subsidy program the form of below-market interest rate loans have that would channel job creating economic activity to several advantages. While some business firms can specific sites, a payment that would offset either obtain a substantial pool of funds from a variety of higher capital outlay or operating costs could be made. sources such as bank loans, company equity, orlocal A direct subsidy based on cost differentials would put development companies this accumulation may never- areas of desired economicgrowth on a par with other theless fall short of meeting the minimum neels for areas as far as direct business costs areconcerned; the developing a new site or enlarging an existing opera- payment should not, however, loom largeenough to tion. By making additional funds available at favor- enable subsidy areas to capture all economic developable interest rates the Federal Government can fill the ment. This could be assured byputting a dollar limit margin between resources and fund requirements on the amount of thedirect subsidy payment. needed to allow an otherwise sound business venture The direct subsidy approach has much to rec- to proceed. ommend it from both a business and governmental The Federal loan approach has substantial business viewpoint. Without minimizing thedifficultiesof appeal because it makes additional funds available administrationmany of which areencountered

142 whenever government seeks to promote its objectives No one is able to say for sure how much they cost or by offering incentivesthe cost to the public ofa what return the public is getting on its investment. direct subsidy payment program can be determined These critics note that many tax students argue that more readily and with greater precision than can tax history has demonstrated that once a tax gimmick incentives or below-market-rate loan incentives. Direct gets into the Internal Revenue Code it figuratively subsidy payments require detailed planning by the takes the legislative equivalent of a nuclear blast to business applicant, but this prerequisite increases the get it out. Moreover, tax incentives assign a higher prospect that the subsidy will fulfill its purpose. For priority, in effect, to economic activity freed of liabil- the businessman, the subsidy approach representsa ity than to any other activities or programs, including "no strings" financial contribution to the firm to be national defense, that are supported by annual ap- used as management sees best fit. propriations. The very openness of this approach may constitute Finally, the critics warn that low-interest loans from its principal weakness. Both the businessman and the the government to private business are a sinister type administrator of the subsidy could expect criticism of incentive. They represent a dual-type of unfair from those who are prone to second guess their competitionunfair to businesses financed in con- decisions. ventional ways and unfair to banks and the investment In opposition to the use of any special incentives to community whose major source of income is arrang- influence industrial location, it can be argued that, ing to finance business ventures. Direct subsidies to regardless of the importance of national policies private firms, so the argument runs, are completely designed to direct economic growth and job creation alien to the American enterprise system except for to areas of urgent need, no program to provide activities essential to the national defense. Federal incentives for business and industrial loca- All of these arguments, of course, warrant careful tion is warranted. Sound economic development,so consideration in the formulation of Federal incentives the argument runs, rests on the natural selectionpro- to influence the location of new business and in- cess that weeds out the marginal undertaking and dustrial establishments as one of the possible compon- nurtures the productive enterprise. ents of a national urban growth policy. Many of the costs entailed in providing public incentives for private effort are intangible. Thesame 2. Enactment of Federal legislation to provide a may be said of the alleged benefits. As a practical percentage preference on the award of public con- matter, the task of evaluating the costs of and benefits tracts to labor surplus and other areas in further- 1 from incentive programs exceeds the validity ofmea- ance of national urban growth policy surements at hand. It also can be argued that an in- In order to generate new employment in small rural centive program might tend to become open-ended growth centers and in those neighborhoods of large with far-reaching consequences. Regardless of the urban areas chronically classified as sections of con- limited objectives an incentive program might be de- centrated unemployment or underemployment by the signed to achieve, proponents of the approach would Secretary of Labor, legislation could be enacted pro- constantly argue that the objectives could beaccom- viding that, (1) in evaluating competitive bids for plished more quickly and more universally by expand- public contracts, a percentage deduction be allowed ing the size and scope of the incentives. By becoming on the price offered for goods produced or services less selective, the incentives would lose their intended performed in such areas, and (2) in negotiated pro- effect. As Benjamin Franklin once observed: "A bene- curement, preference be given to bids from such areas. fit to all becomes a benefit to none." Federal procurement practices provide a significant By continuing to rely solely on the profit motive to stimulus to the growth and development of particular determine where and whether business and industry areas. Yet, recent studies have documented the ex- will locate, critics believe that the public will beas- tremely uneven geographic distribution of Federal sured of protection from bootless adventures in the contracts, which amount to over $85 billion a year. keld of economic planning. The Federal Govern- The statistics on the location of contract awards in- ment's resources would be husbanded for legitimate dicate a concentration of both defense and research public purposes, rather than squanderedon a Federal and development contracts in the wealthier and more incentive program designed to have business act ina highly urbanized States. The potential significance of fashion that it would often act anyway from itsown defense contracts is acknowledged in the present pol- self-interest and in the absence ofany incentive. icy of encouraging the placement of defense contracts Critics also contend that every program of public with firms in labor surplus areas designated by the incentives for private effort hassevere drawbacks. Department of Labor. This policy was recently They feel that tax incentives, for example,are by and amended to give first preference to firms operating in large Congressionally licensed raids on the Treasury. sections of cities or States with high concentrations

143 of unemployment and underemployment,providing As with other industrial location incentives,it is they agree to employ disadvantaged workers.The pol- critically important that any new public contracts policy directs that preference be given to such areasin icy be implemented selectively. If it is not admin- negotiated contracts. It further stipulates that a por- istered' specifically to promote balanced economic de- tion of contracts let under competitive biddingbe set velopment and urbanization, it can become so widely aside for negotiated placement with firms insuch available as to give a publicly subsidized private ad- areas if they match theprice established on the com- vantage, without any accompanying publicbenefits. petitively bid portion of the procurement. It is the Nevertheless, heavy concentration of public contracts policy of the General Services Administration to en- in certain geographic areas can distort patterns of courage firms in labor surplusand redevelopment economic development and urbanization and make areas to submit bids forsupplies and equipment. How- the achievement of a balance more difficult. The re- ever, strict applicationof competitive bidding require- ceipt of a contract in a rural growth area, or a labor ments severely restricts the flexibilityavailable in surplus city neighborhood, on the other hand, could pursuing a policy of encouraging economicdevelop- generate employment where it is needed andhave a ment and urbanization in specific areas.Present pol- multiplier effect, as supporting activitiesare de- icies then have been of only limited significance. veloped. of- , The allowance of a credit in evaluating bids or 3. Promulgation by the President of criteria for loca- fers for public contracts could provide a more effec- tion of Federal buildings and facilities in further- of gov- tive method of stimulating an additional flow ance of national urban growthpolicy ernment procurement to small ruralgrowth centers and surplus labor city neighborhoods. A percentage Decisions regarding the location of public facilities deduction might be allowed for that proportion of and projects can have a signficant effect on the eco- the goods which would be produced or the services nomic development of an area. Major government which would be provided in such areas. Thus, if a installations such as State universities, government of- bid were received from a manufacturer whose plant fice centers, research complexes, military installations, producing the goods was located in such an area, the and public works projects can provide a major im- deduction would be allowed whether the plant was petus for growth and can affect the form andcharact- the main headquarters or a branch. Further, a prime er that it takes. Everyeffort should be made to capi- contractor would be allowed a similar deduction on talize on the potential of these major public invest- that portion of a price bid which represented goods ments and to realize their multiplier effect.Their to be produced or services to be provided by asub- proper location and development canconstitute a contractor ir such an area. To be eligible for the significant element in realizing the aims of national deductions, a contractor would be required to specify urbanization policies. in his bid tip; ocation of the plant that would be Wise location policies, for example, can provide the producing the goods or the office that would be per- base for renewed growth and development of asmall forming the services. rural growth center, serve as the basis for a new-town- Pending Congressional legislation provides a case in-town project, or help to give impetus to the de- study of this approach. In the first session of the 90th velopment of a new community. Unless the location decisions conform to overall urbanization policy and Congress H. R. 12802 was introduced "to develop sound land-use development programs, they can serve business and employment in smaller cities and areas merely to generate new problems or aggravate old of underemployment and unemployment, ib assist in ones as they have done inconnection with the location bringing excess farm labor and other unemployed and of some of the large space exploration installations, underemployed labor into a new productive relation military bases, and office building complexes. Location to society and yet to enable such people to remainin decisions then can precipitate new problems of con- less densely populated areas, and not be forced to gestion and sprawl, or contribute to a more orderly, migrate to our already overcrowded cities." * The bill meaningful, and satisfying pattern of urbangrowth provides that in awarding contracts, the Federal Gov- and development. ernment would give credit on bids received from cities Examples of public buildings and facilities serving under 250,000 population,proportionately greater as one of a number of componentsdetermining the credits for smaller cities, and a separate credit of two location of urban development are numerous.The percent for any area where unemployment or under- consolidation of Federal agency field offices in a num- employment exceeds the national average or for areas ber of instances have served to stimulate the economy of serious emigration. of regional growth centers. Federal installations have frequently been the focus of urban redevelopment pro- *Congressional Record, October 9, 1967, p. H 13097. jects and are presently being actively proposed as a

144 major element in the development of new-towns-in- element, and serve to generate and focus surrounding town on undeveloped land. The decision to place the urban development. United States Geological Survey headquarters office in Reston, Virginia, has served to strengthen the latter's B. INFLUENCING POPULATION MOVEMENT economic base. Planned new community development The analysis of migration in the first chapter re- in the Germantown, Maryland, area is being influenced vealed the extremes of mobility and immobility--with by the presence of an increasing number of Federal certain, comparatively few, large, congested metropol- office buildings, including the headquarters of the Na- itan areas experiencing massive influxes and with tional Aeronautics and Space Administration and the numerous poor residents of ghettos and rural areas Atomic Energy Commission. A branch of the Univer- unable or unwilling to move to job surplus locations. sity of California will serve as the major focus of one This somewhat "patchwork quilt" of moves, non- of the communities in the Irvine new community moves, moves to places with no jobs, and moves to development. densely settled areas with good employment oppor- Major public installations can, of course, serve as tunities certainly suggests that economic self-interest the major employment base and growth generator for is not the only motivational thread in the pattern. A whole communities. For example, the location of the program of location incentives to industry can bebal- new Atomic Energy Commission accelerator west of anced and complemented by a program geared to in- Chicago probably will serve to revive Weston, Illinois, fluencing the location decisions of people. Unlike the an earlier attempt at a new community which failed. former, the latter would facilitate moves from labor Some have suggested that one method of initiating surplus rural counties and large urban neighborhoods programs of coordinated, large-scale urban develop- to clearly identified employment opportunities insmall ment is to combine the availability of public lands rural growth centers, in job surplus medium-size mu- with construction of government installations, centers, nicipalities, in labor-shortage suburbs in large metro- and facilities. Such an approach could be taken either politan areas, and in new communities. to establish new-towns-in-town as recently proposed in While an effective and successful program of indus- the President's directive to Federal departments to trial location incentives and economic development identify sites elsewhere similar to the National Train- would provide a natural magnet for many, other facing School site in Washington, D. C., or to establish tors contribute to the lack of mobility among large seg- experimental, independent new communities on sur- ments of the population including inadequate information, the absence of necessary skills, lack of funds, plus public lands. The latter approach, while present- and the risksalong with the fearsinvolved in a ing a significant opportunity, has more limited poten- move. Hence, a combined program wouldinclude in- tial, because of the overriding necessity for having eco- dustrial location incentives and measures influencing nomic and urban growth potential and the limited population movement. instances of large enough blocks of public lands avail- Resettlement allowances including both relocation able at such locations. However, where they are pres- and resettlement and readjustment payments can be ent, important contributions can be made. Significant provided for low-income families. To assist workers in public resources of land and buildings could be fo- adjusting to job opportunities and to encourage em- cused on the development of a new community pro- ployers to hire them, on-the-job training programs can viding an unparalleled opportunity to realize both the be expanded and the Federal-State employment serv- social and physical development objectives of this type ice program modified and redirected with greatly in- of urban development. creased emphasis on interarea job placement counsel- Civic centers, hospitals, public institutions, office ing and information. In order to neutralize any migra- buildings, and universities and colleges can also serve tional pull of interstate variations in public assistance as a type of public aid and assistance for new commu- programs, the national government could assume com- nity development and can influence its location. When plete financial responsibility for all public assistance sites are developed cooperatively with the private or establish mandatory minimumstandards for Fed- builders, they can become an important element in eral-State categorical public assistance. Finally, as an element of a national urbanization policy, there could total design. If some of the modified new community be a strengthening of voluntary programs of family or alternative large-scale development approaches are planning for low-income persons. used, the public building component can be of major Some critics of such measures for influencing popu- significance. In a multi-purpose center approach, for lation movements argue that their basic purpose is example, combining schools with apartments or office inimical to the precepts of an open society and more buildings, the building of education campuses, and suitable for an authoritarian systemthat, in fact, the construction of civic centers can providea major they woud not work without the coercive direction of

145 310-335 0 - 68 - 11 such a system. Others claim that the essential disrup- istered by the Department of Labor under the Man- tor of a fairly rational migration pattern is the irra- power Development and Training Act providing as- tional whiplash of racism and any package of location sistance in relocating employees of defense contractors proposals that skirts this issue is irrelevant. who are displaced as a result of contract cancellation, renegotiation or other changes. 4. Establishment of Federal-State matching program Related, but not central, to the problem of geo- of resettlement allowances for low-income persons graphic resettlement for new job opportunities is a migrating from labor surplus areas number of Federal and State relocation programs for This approach envisages a Federal-State matching persons displaced by public projects. For projects program of resettlement allowances. These allowances aided under programs administered by the Depart- would be provided to low-income persons migrating ment of Housing and Urban Development, Federal from labor surplus rural counties and neighborhoods reimbursement of moving costs is available. Under in large urban areas with chronic unemployment to federally-aided highway projects, States that choose small and medium-sized communities with definite may include relocation payments as part of the project employment opportunities. costs. Both TVA and the Corps of Engineers provide Although moving expenses alone do not appear to resettlement payments to those displaced by water be a major deterrent to low-h.come families seeking supply and flood control projects. to relocate, the combination of moving expenses, ini- It is here suggested that the principles embodied in tial resettlement costs, and the risks involved in mak- the experimental relocation assistance programs and ing such a move do constitute a deterrent. A combined other related programs be applied as a positive meas- moving and resettlement payment support would help ure specifically designed to assist low-income workers overcome this impediment to mobility. seeking employment in areas identified for urban Regardless of the Federal agency assigned respon- growth. sibility for administration of a resettlement allowance 5. Provision of additional Federal funds for on-theprogram, the program should be closely related to job job training allowances for employers in labor training and placement services so that those seeking surplus areas to relocate in any of the defined areas anywhere in the country could be informed of job opportunities and To further a goal of balanced urbanization through couldbe provided necessary jobtrainingeither improved job opportunities for unskilled, poorly ed- through existing programs or through an expanded ucated, and low-income people, consideration should on-the-job training program such as that described be given to the need of providing alternative loca- below. tional choices both to those from depressed and dis- A limited experimental relocation assistance allow- advantaged rural labor surplus areas and to the un- ance program is authorized by an amendment to the derskilled and undereducated in the ghettos and other Manpower and Development and Training Act of labor surplus neighborhoods in the big cities. 1962. The program provides grants and loans to in- The provision of on-the-job training and the ac- voluntarily unemployed workers who have elected to ceptance of trainees by employers in rural growth participate in an experimental project involving relo- centers can be encouraged. The most rapidly expand- cation from areas with no job opportunities to areas of ing industries tend to be those making use of advanced labor demand. technology. Specialized training and retraining is usu- To date, there have been approximately a dozen ally essential to employment in these industries. Many diflerent types of projects for varied kinds of workers job applicants from either rural labor surplus areas ranging from unskilled, rural Southern Negroes to or the ghettos no doubt would benefit from basic skilled aircraft workers in a major metropolitan area. training. Even the more experienced applicants from Some of the projects have been conducted through urban areas would probably need retraining. the State employment services and others by organi- Surveys indicate that the underskilled and undered- zations under contract. Funds for financial assistance ucated are less likely to migrate. If true alternatives are administered by the Unemployment Insurance are to be offered, efforts must be made to encourage Service. The relocation payments have averaged $300 people in these categories to accept job opportunities to $400 per family and the cost of supportive services, elsewhere. By coupling training with a specific job $400 to $500 per family. offer an added inducement is given. This, however, The Federal Government also administers a pro- does place a burden on the private employer and ad- gram providing limited travel and moving expense re- ditional reimbursement would appear justified. imbursement to Federal employees who are displaced This type of inducement would also be particularly by defense shifts, including those transferred to new significant to employers in labor surplus city neigh- posts. There is also an experimental program admin- borhoods where there is a tendency for the less skilled

146 and less well educated to remain. Total training costs this relationship in metropolitan areas. The Commis- would no doubt be significant in this type of situa- sion recommended that the Governors and the Secre- tion and employers would need additional assistance. tary of Labor take steps to assure that public employ- At present, the Manpower Administration of the ment services are provided to all job applicants and Department of Labor through its on-the-job training employees within metropolitan area labor markets program contracts with employers to provide on-the- regardless of State lines, and that the steps should job training. Allowances consist of weekly reimburse- include interstate agreements and action by the Secre- ments for a portion of the cost of establishing the tary to make sure that effective arrangements were training program. In order to encourage employers being carried out as a condition of Federal grants for in rural growth centers to provide job opportunities employment security administration.° This approach for persons primarily from labor surplus rural areas, should be extended nationwide with particular empha- and from labor surplus neighborhoods in big cities sis on rural growth centers, medium-size cities with such employers could be offered additional training job opportunities, and nonlabor surplus suburbs in program allowances and also wage supplements. A large SMSA's. Interarea arrangements should be comparable program might be undertaken in labor developed to provide a flow of job information to job surplus urban neighborhoods for trainees residing in applicants without regard to State lines. the area. The training program allowances would en- Potential employers must have information regard- courage employers to expand and improve their training immediate labor supply and possible job applicants ing programs and facilities. The wage supplements and also be provided with long-range analysis and would help to reimburse them for the difference be- assessments of labor and manpower trends. This type tween wages paid and actual work accomplished dur- of information is being developed in a variety of dif- ing the training period. No new authorization in the ferent agencies and would certainly be among the basic Manpower Development and Training Act leg- types of information to emerge from a national plan- islation is needed to allow such a program to be estab- ning process for balanced urbanization. lished. However, for it to have any appreciable im- A nationwide computerized information system pro- pact, additional funding would be necessary. viding job information would be a particularly significant element of an expanded program. Such a 6. Expansion of the Federal-State eniployment serv- system would provide specific information regarding ice program and establishment of nationwide com- job availabilities including skills required, location of puterized job information system providing data openings and other relevant information. This type on job vacancies, skills, and availabilities of information could be instrumental in alleviating A significant redirection and expansion of the in- situations which frequently arise when the job va- terarea job placement, counseling, and information cancies available in an area are not matched with the services of Federal-State Employment Service pro- job skills of those in the area, looking for work. This grams is needed to assist job-seekers from labor sur- gives rise to the claim that jobs go begging in the plus rural counties and city neighbcrhoods. Full and very areas where there is a labor surplus. Actually, a accurate information about job opportunities in other number of the vacancies may be of a type for which parts of the country must be a critical feature of this there are not enough qualified applicants. But all this expanded effort. Such a program should provide a will be of little practical value if the data is not as- focal point for counseling, information, placement, sembled, analyzed, and made readily available to em- and training. In an earlier report on Intergovernmen- ployers in a timely fashion and in a form that will be tal Relations in the Poverty Program, the Commis- of maximum use. This should be another important sion recommended the coordination of job creation responsibility of the type of expanded employment and job training programs.° A number of efforts in service program recommended here. this direction are being made, but as the March 1966 report on the President's Committee on Manpower 7. Enactment of Federal legislation to eliminate or noted: reduce migrational influence of interstate variations in public assistance standards and benefits There is no agreement at the present time regarding appropriate relationships among the...(manpower) programs. In order to neutralize any "migrational pull" of Clear lines of demarcation between all the programs have not interstate variations in public assistance benefits and been drawn either in terms of the clientele to be served or in terms of the services and training or work experience to be eligibility requirements and for a variety of other rea- provided. Fuzthermore the job creation and job training pro- sons, Congress could either enact legislation providing grams must be related to job information, placement and for assumption by the National Government of com- counseling activities of the employment services. plete financial responsibility for categorical and gen- In its earlier report on Metropolitan Social and eral public assistance throughout the United States Economic Disparities, the Commission dealt with or enact mandatory minimum standards for eligibility

147 and benefits under Federal-State categorical public cause nationalization would result in a greater outlay assistance programs. than that currently made by States so that a realistic One of the major objectives of a national policy annual price tag of at least $5 billion must be attached dealing with urban growth should be the provision of to this proposal which would mean an additional an- as wide a range as possible of alternative locations and nual Federal outlay of $1.5 billion. types of jobs for all income levels. If such a goal were Some State leaders are opposed to relinquishing the adopted, strong arguments could be made for Federal determination of welfare standards to Congress. Some assumption of public assistance costs as part of such contend that it is impractical to set national dollar a policy. Different eligibility requirements and dif- standards for relief of poverty and argue that poverty ferent levels of public assistance support payments can only be defined within a statewide context. Anin- after all can be among the factors influencing the di- come that means bare subsistence in Harlem means rection of migration and urbanization. relative comfort in a small Iowa town. Others argue Communities which provide a wide range of hous- that nationalization of welfare would deal a crippling ing and job opportunities within their borders, thereby blow to the notion that the States should play a key furthering a national urbanization policy, should not role in the determination of domestic policy. be penalized by being asked to assume additional wel- A policy that calls for Congressional enactment of fare burdens. The burden could be particularly acute minimum standards for public welfare eligibility and in an area which has a potential for economic devel- benefit schedules stands midway between the present opment and growth but is presently underdeveloped arrangement with each State determining its own or, as in the case of a new community, just starting to standards and the other alternative described above develop. The tax base and revenue sources necessary complete nationalization of the welfare responsibility. to support public programs are severely restricted It is essentially a compromise proposal; it seeks to during early growth as compared with the resources leave a large share of policy determination above the of established, mature communities. minimum floor in the hands of State policymakers, Furthermore, a national policy which attempts to yet at the same time removing the harshest elements encourage individuals to accept alternative residen- of the present systemunconscionably low levels of tial locations should not penalize them by asking that welfare assistance in certain States. they accept lower public assistance support if for one Any action on the part of the Congress to raise the reason or another they find themselves in need. Nor welfare benefit "floor" automatically reduces the dis- should welfare payments themselves serve as an at- parities between States and hence the influence of traction to migrants. The present pattern of support public welfare benfits on locational decisions of fam- payments tends to concentrate additional persons in ilies in need of public assistance. Welfare recipients the already densely populated major metropolitan would not be the only beneficiaries of minimum na- complexes. tional standards for eligibility and benefits schedules. Existing studies indicate that job opportunities and It would act as a "helpful lever" in upgrading the the presence of friends and relatives are more impor- economic level of the entire population in those States tant factors than welfare levels in influencing where where the standards are now unusually low. Addition- people go. These findings, however, are based on ally, it would reduce the vulnerability of high stand- limited samplings and some evidence exists for a con- ard States to the argument that their generous pay- trary conclusion. In any case, the level of welfare payments encourage an influx of needy families into their ments should be removed as an influence so that a jurisdictions. Moreover, a nationwide minimum stand- national policy of urban-rural population balance ard seems to be extremely timely in view of recent based on other considerations can be pursued. This court cases challenging residence requirements for becomes particularly important in view of the recent welfare as an unconstitutional denial of equal pro- court cases supporting the view that residence require- tection of laws. ments for welfare are an unconstitutional denial of The minimum standard approach has been recent- equal protection of laws. Federal cases so far have ly endorsed by the Advisory Council on Public Wel- been decided in the District of Columbia, Conecticut, fare and was embodied in recent Administration pro- Delaware, and Pennsylvania and are all under appeal posals calling for strengthening the joint Federal-State to the Supreme Court. public assistance program. At the present time, several However, the case of nationalization of the welfare States are providing AFDC payments that fall far function is not without its drawbacks. First, it would short of their own determinations of cost standards for force the National Government to assume the State basic needs. In fact, in one State AFDC payments fell and local share of financial responsibility for public as low as 20 percent of its needs standard andin 10 assistancenow running approximately $3.5 billion. States AFDC payments fell below the 50 percent Actually, this would be only the first installment be- level.

148 There are substantial obstacles to the achievement agencies have inaugurated new policies, and bills for of even this limited degree of welfare uniformity. family planning programs have been introduced in While the price tag would be far less than in the Congress. Progress in implementing the program and case of complete nationalization, Federal intervention in adopting legislation has been slow. A major effort would be stoutly resisted by many State leaders as an by Federal, State and local governments would be unwarranted intrusion into the State policy field. They necessary to make sure that these services are easily would contend that the so-called minimum standard available to low-income persons in all parts of the approach would constitute a significant beachhead country. and thereby facilitate the complete nationalization of all welfare programs. As in the case against complete C. LARGE-SCALE URBAN AND NEW COMMU- nationalization, the difficulty in imposing national NITY DEVELOPMENT* standards even on a minimum basis is underscored. i. Large-Scale Urban Development. While the The difference in needs in the rural South and in geographic location and distribution of the country's Northern urban centers is difficult to accomodate on future urban population is a major feature of any a nationwide basis. national urbanization policy, the form and quality of 8. Expansion and adequate funding of voluntary urban growth obviously is another vital component. programs of family planning for low-income per- We know there will be massive building and rebuild- sons ing during the final third of this century to accommodate the 115 milliOn Americans .that will be added This report has focused on the geographic distribu- to our population. Approaches that would serve to tion of economic and urban growth in the United influence the location of much of this building in less States and some of the consequences arising from the congested areas have been presented. At this point, increasing concentration of such growth in limited attention is directed to measures designed to facilitate areas of the country. The problem arises from a com- and promote a more desirable future form and pattern bination of the rate of population growth and its con- of urban growth responsive to national, State and centration in limited areas. Demographers see no real local policies and goals. danger in the foreseeable future of being unable to In developing small rural growth centers and inde- feed adequately a growing population or even of be- pendent new communities, in improving suburban and ing unable to increase the level of living as measured metropolitan fringe development, in launching within by per capita income. such areas new communities that are balanced and Yet, while the birth rate for the nation as a whole diversified, and in filling in undeveloped or cleared has been declining, no significant decline has occurred areas in large central cities, the relationshipbetween among low-income families. The birth rate remains the quantitative and qualitativefacets of urban high among the very families who suffer most from the growth is underscored and the potentialities for large- consequences of the heavy concentration of popula- scale urban development are highlighted. tion in limited areas and who continue to provide An essential trait of new large-scale urban develop- through natural increase and migration, one of the ment should be its reliance on effective land use plan- major components of such concentration. It also re- ning and development guidance and regulation. In a mains high among families who suffer the most from technical sense, the conventional tract subdivision is a rural poverty and who have a high immobility rate. large-scale urban development; but such a project is As an element of an overall urbanization policy, the not usually subject to adequate planning and regu- present voluntary programs of family planning for lation. It usually lacks attractive design features and low-income persons could be strengthened. Assistance relatesineffectivelytosurrounding developments. to States and local governments in establishing family Large-scale urban development, then, begins to offer planing programs is available through grants from promise when accompanied by strong and effective Office of Economic Opportunity and Children's land-use planning and regulation. Moreover, it en- Bureau. Yet more is needed. Family planning services courages the use of more flexibledevelopment controls are routinely and easily available as an integral part and confers the benefits that flow fromlarge-scale of adequate medical care to the well-to-do through private physicians. At the same time, current public land assembly. and private family planning programs, it is estimated, *While the following discussion provides a generalintro- are serving no more than 10 to 12 percent of the more duction to measures designed to facilitate large-scaleurban than 5 million medically dependent women who are and new community development, only those specific com- patientsforsubsidizedfamily planning ponents for consideration by the Federal Government are pre- potential sented here. The specific components for considerationby services. States are presented on pp. 160-172 as part of thediscussion This is the current situation even though Federal of Recommendation Number Five. 149 These advantages, however, are contingent upon calling for both Federal and State action on measures development of effective land use planning and con- relevant to large-scale urban development are discussed trol mechanisms and procedures. Without them, large- below: scale urban development can leave much to be de- In a study of metropolitan social and economic dis- sired. In its simplest form, the large-scale urban de- parities, the Commission recommended that diversi- velopment may be primarily residentialsingle fam- fication and geographic dispersal of housing for low- ily units, townhouses, and apartment complexes. It income groups be encouraged by amending Federal, may also include a multi-purpose town center or a and where necessary State, housing legislation to combination of commercial, industrial and cultural increase the flexibility of the low-income housing facilities as a focus for surrounding urban growth. program and otherwise improve the lot of those Finally, it can and has entailed the development of qualifying for and using public housing. It was sug- entire new communities. gested that methods of supplementing the tradition- These varying alternatives, in turn, depend on dif- al public housing construction program should be fering combinations of planning, regulatory, and land encouraged to diversify the means of assisting low- acquisition resources. The multi-purpose town center, income families to attain sound dwellings. Measures for example, involves land acquisition concentrated to facilitate purchase, rehabilitation, and lease of on the community center along with planning and existing private housing and to authorize subsidiz- regulatory controls geared to encouraging and facili- ing of rents of low-income families in private hous- tating development around the center. A new coming were suggested. Additional financial assistance munity development, on the other hand, requires pub- to private nonprofit organizations to enable them lic or private acquisition of the entire area projected to provide subsidized housing for low-income fam- for development with more flexible planning and ilies was also encouraged.11 land-use regulations which will more fully implement All of these measures would be particularly help- thecommunity's potential.Finally,new-towns-in- ful in achieving balanced and diversified develop- towns, while of a smaller size, would combine some ment in small cities and in suburban communities of the planning features of new communities with where resistance to public housing projects is strong. elements of more conventional urban renewal proj- Moreover, they are more easily implemented through ects. the various new large-scale urban development tech- Critics of the types of possibilities just described niques. The Commission also urged appropriate claim that they call for too great an involvement of Federal and State agencies to accelerate adoption of government in planning and land-use efforts and that cooperative agreements for enforcing Federal and too much of the development initiative is left to gov- State laws and regulations forbidding discrimina- ernmentand far too littleto the private sector. tion in housing. Such steps would also make signif- Some restate the above argument in terms of en- icant contributions toward the development of the croachment on the unfettered operation of free balanced community growth which is essential to the market forces. Still others, on the other hand, doubt realization of a sound national urbanization policy.12 the feasibility of these types of urban development on In another report, dealing with building codes, the the grounds that few State and local governments Commissionrecommendedmeasuresdesigned, would or could develop the land-use planning and among other objectives, to reduce housing cost due control mechanisms required for its effective imple- to excessive and diverse code requirements, to stim- mentation. ulate building research, and to expedite the accept- More effective guidance and regulation of urban ance of new building products. These objectives development is no doubt necessary in any case. The are basic to any nationwide urban development next question is the extent, if any, of governmental program. Building large-scale urban developments subsidy for certain types of large-scale urban develop- and large new communities on undeveloped land ment. The answer to this question hangs essentially provides a major opportunity for the development on whether the new development will further such and introduction of new materials and building broad public objectives as accommodating its pro rata methods. The potential of this opportunity, how- share of low-income housing. ever, cannot be realized as long as archaic methods, The Advisory Commission in the past has devoted restrictive practices, diverse and rigid building code continuing attention to the problems of improving the requirements, and lack of adequate research into social, economic, and governmental structure of urban new materials and technologies hinder thebuilding areas. A number of previous Commission recommen- construction industry and add to the cost of hous- dations for strengthening local government and their ing. The Commission's recommendations in the powers to deal with urban growth are summarized in building codesreport dealdirectly withthese the discussion of Recommendation Five.") Several impediments.

150 To achieve the uniformity necessary to assure a urban development through the acquisition and national market for building products, the Commis- improvement of land have been made. sion recommended that Congress authorize and fi- Some have urged that special institutions be estab- nance a cooperative program designed to develop lished solely to achieve these purposes. Opinions dif- national building construction performance criteria, fer, however, regarding the assignment of responsibil- standards, and testing procedures which could be ity between levels of government and between the used as elements of model building codes. It was public and private sector. There have been suggestions recommended that a national drafting commission for an "urban space agency" analogous to the Nation- be established representing all levels of government al Aeronautics and Space Administration; mixed pub- to develop a model code with the participation of lic-private corporations using COMSAT as a prece- the model code groups and other interested public dent; and various types of new and specialized public and private groups, using the standards developed authorities. Some propose a national urban develop- under the cooperative program. ment effort similar to the earlier Greenbelt projects Since State and local governments occupy a key or a national land development agency. Others sug- position in efforts to modernize building codes and gest State land development authorities. Finally, some to achieve uniformity, it was recommended that each recommend that existing governments should take the State develop a model building code for permissive major initiative. They have proposed strengthening adoption by local political subdivisions. The Com- or adding to the powers of existing general purpose mission urged the States to establish a building con- governments so that they could participate more struction review agency at the State level to consider actively in planning, fostering, and overseeing urban appeals from the decisions of local government on and new community development. Some of the ap- matters concerning interpretation of standards gov- proaches clearly are mutually exclusive, but others erning building construction. The Commission also could be used in varying combinations as discussed recommended a national and State program for re- below and in Recommendation Number Five. search in building construction to accompany the recommended program for the development of the 9. Federal assistance for new large-scale urban de- performance concept in building standards.13 The velopmentlow interest loans and capital grants Commission, then, calls particular attention to the for land acquisition relevance of its report on building codes, since its To assist State and local governments in land acqui- recommendations constitute an integral part of na- sition necessary to accommodate future urban growth, tional urbanization policy. the expansion of two existing Federal assistance pro- The approaches which are presented in the remain- grams suggests itself. Section 704 of the Housingand der of this section and in the discussion of large-scale Urban Development Act of 1965 (the Federal pro- urban and new community development following gram for advance acquisition) could be amended to Recommendation Number Five are geared topro- include capital grants for the acquisition of land for viding solutions to the problems of governmental public facilities and large-scale urban and new com- organization, land-use and development regulation, munity development. In addition, Title X of the and the accomplishment of desirable social objectives National Housing Act(theland purchase and in large scale urban development generally andnew development loan guarantee program)could be communities specifically. They include governmental expanded to include low interest loans to State land subsidization of new community development subject development agencies for land purchase and site to some strict conditions, assistance for assembly qnd development. improvementoflandforurbandevelopment, In either case, additional standards and guidelines strengthening local government's capacity to deal with for the planning and development of eligible large- urban growth, and some new approaches to planning scale urban and new community projects would be needed to assure conformance to and furtherance of and development. a national urbanization policy and of Stateurbaniza- The large amounts of capital and the massive com- tionplans. Such standards and guidelines could bined efforts necessary to initiate and give direction to require eligible projects to provide low-income hous- large-scale urban development projects such as new ing in the same proportion to total projected housing communities, multi-purpose town centers, and new- in the new development as the proportion that low- towns-in-town, dramatize the need to marshal all income families bear to total State or metropolitan available public and private resources to provide a population. more desirable, liveable, and economical pattern of If the loan approach were adopted, the Secretary urban growth. A number of proposals for new institu- of Treasury could estimate the net cost of the program tional arrangements designed to fosterlarge-scale to the Federal Government for informational purposes

151 as an exhibit in thePresident's Annual Budget. the requirement that the land be usedwithin five Finally, if the enabling legislation bore an expiration years with a requirementfor use within a reasonable date of a few (e.g., 5-7) years, Congress andthe time. They would also clarify theauthority of State to Executive Branch could assess the costs and benefits participate and would permitdiversion of land of the low interest loans. acquired to nonpublic purposes if the grant were Only by advance acquisition will it be possible for repaid or land of equivalent value weresubstituted States and local governments to purchase before for it. The authorization under presentSection 704 development in an area takes place and before the could be further expanded to includecapital grants resulting rapid increase in cost. The largeinitial to assist in advance acquisitionof land for public investment and extended holding periodnecessary in facilities, and large-scale urban and newcommunity include a successful andon-going program of advance acqui- development. Expansion of the program to sition has proven to be a major deterrentfor States capital grants for land acquisition forthe latter objec- and localities already hard pressed to support current tives could provide substantial additionalassistance operating and construction programs. ManyStates to State land developmentagencies and enable them have already strained available State financial resour- to inaugurate significant programs. acquisition cesto undertake capital investment programsfor Federal grants to States for advanced immediate needs such as State institutions,universi- of land for public facilities and large-scaleurban and ties and colleges, public works and the like.Many new communitydevelopment stand out as the means localities have comparable fiscal headaches. They thus of giving powerful impetus to Stateurbanization State plans are unable to financeadequately the buying and hold- policies. With this financial assistance, ing of land for future needed development, even for future facilities could be broughtinto being at the though such inaction may result in later purchaseof right time and in the right place. A programof finan- less desirable land at higher cost. Further,they cer- cial aid to States for large-scale urbanand new com- tainly would be unable to embark on a programof munity development holds promise ofestablishing an assembling and acquiring strategically located landfor urban environment most conducive tohuman resource future urban development by private builders. development which now absorbs alarge share of While loan or loan guarantee programsparticu- Federal and State resources. larly with deferred repayment provisionswould pro. Turning to the second approach, it seemsclear that vide substantial assistance, itis unlikely that they for State land development agencies toaccomplish would suffice to permit inauguration of asignificant their objective of carefully plannedacquisition of land land bank or land reserve program. Yet such a pro- for future urban use, they must be in aposition to gram representsa foundationfor implementing acquire land considerably in advanceof development. urbanization plans. By purchasing strategically located The ready availability of Federal loans, atthe time land, States and large local jurisdictions cangive when they are needed, and at low interest rateswould direction and form to future urban growth. They can help provide States with the resources to enteractively encourage large-scale urbandevelopment by assem- into a land acquisition program.In making financial bling smaller parcels of land which might not other- assistance available, the Federal Governmentwould wise be available and without which costlybypassing be acknowledging the broad nationalinterest in the would be required. Furthermore, substantialsavings wise use of landone of our majornational resources. in the cost of land acquisition for public projectsand It would also be acknowledgingthat the States are facilities could be realized through advanceacquisi- well suited to provide the leadership necessaryfor the tion in conformance with development plans.Because development of imaginative new urbanland-use and of the sizeable investment involved and because of the development programs working throughState institu- broad national interest in the wise use of land, a cap- tions, local governments, and privateenterprise. ital grant program for advance acquisition of landby Presently, Title X of the National HousingAct, the State and local governmentsincluding State land land purchase and development loan guarantee pro- development agencies should be considered. gram, is limited to loan guaranteesfor private devel- Section 704 of the Housing and Urban Develop- opers. Amendment ofthis title might be considered ment Act of 1965 presently authorizes grantsequal to in order to provide direct, low interestloans to State the interest payments for up to five years on money land development agencies whichcould be either borrowed by State and local governments and agen- newly established authorities orappropriate existing cies for advance acquisition of land for publicfacili- State agencies. Because the purposeof the loan is to ties. Amendments to Section 704 included in the bill acquire land destined to become morevaluable, the for the Housing and Urban Development Act of 1968 rate of interest should be lowenough to provide tan- would broaden these provisions to allow advance gible assistance to the States and itshould be appre- acquisition for any public purpose and would replace ciably below the market rate for otherState borrow-

152 ing. The loan's duration should be long enough to rights could be provided, but with majority control allow a reasonable holding period until development remaining with the Federal Goverment. Such a cor- is started. In the special case of large-scale urban and poration could acquire land by purchase, transfer, or new community development, the need to hold land donation for large-scale urban and new community for an initial period prior to sale and development development. It could be empowered to undertake might be recognized and provision for the postpone- site preparation and improvement and to sell or lease ment of interest and principal for a specified number land to public agencies and private developers. of years or until a specified proportion of the land Another approach would involve creation by Con- was sold might be included. Such action would gress of a national urban development agency or acknowledge that a land acquisition program for authorizing the Department of Housing and Urban urban development in the long run could become Development to acquire, hold, improve, and dispose self-supporting, but to be fully effective it would of land for urban development. Suchan agency or require large initial investments. HUD could also be authorized to undertake large- The lack of previous experience with a loan pro- scale urban and new community projects in confor- gram of the type described indicates that the enabling mance with a national urbanization policy. Land legislation should bear an expiration date of five to would be acquired for urban development bypur- seven years so that Congress and the Executive Branch chase, transfer of federally owned lands,or by dona- will have an opportunity to assess its effectiveness. It tion. The land, improved or unimproved,or rights to is further suggested that to assist in such an assessment it, would be sold or leased to State land development the Secretary of Treasury annually estimate the net agencies and to private developers. Theagency or outlay for the program by calculating the difference HUD might also be empowered to constructor con- between the cost of borrowing by the Federal Govern- tract for the construction of public facilities; retail, ment and the low interest rate charged State agencies commercial and industrial buildings; and apartments, to whom loans are made. Such information should townhouses, and other multi-family and individual appear as an exhibit in the President's Annual Budget. family houses. The provision of standards adequate to assure that Under the first approach, a publicly chartered, pri- the Federal grants or loans would result in improved vateparticipationland developmentcorporation land use is of particular significance. Certainly the would provide an institutional arrangement for com- land acquisitionshould be consistentwith State bining public and private financial resources, initia- urbanization plans. Additional standards for the proj- tive, and talents in major urban andnew community ects to be developed on the land, however, would also land development projects. The combined govern- be needed. It is suggested that such guidelines should ment and private corporate structure has been sug- require eligible projects to provide low-income hous- gested because of the large initial investments required ing in proportion to the number of low-income fami- to assemble and improve land and the overriding pub- lies in the State or metropolitan area where the proj- lic interest in the future course of urban develop- ect is located. Other standards might include the ment in America. It is assumed that the continued requirement of adequate open space; effective local rate of urbanization and the appreciation in value planning and associated land-use controls inthe of land developed for urban growth hold promise of areas affected; and adequate land suitable for bal- a return on investment sufficiently attractive to inter- anced development. est large investors. This opportunity should be par- The earmarking of public funds for investment in ticularly appealing to certain large corporate inves- land to be developed in conformance with national tors who now are entering the urban development and State urbanization policies would help to assure the creation of a physical environment in which field, but who are not large enough to finance an existingpublic commitments to human resource entire project on their own. development have the greatest chance of success. Because of the broad public interestin urban development and land use and because of the public 10. Direct Federal involvement in large-scale urban investment, majority control in the proposed mixed development corporation would remain with the Federal govern- Direct Federal involvement in large-scale urban ment. This could be accomplished by a number of development could be achieved in a number of ways. means. Government share owneahip and its con- One would be to create a mixed, public-private land comitant voting strength might be kept at more than development corporation chartered by Congress with 50 percent. The method of choosing the chairman of capitalization in the form of capital stock carrying vot- the board of directors might also be influential. The ing rights and eligibility for dividends. Substantial pri- chairman of the board could be a public official vate stock participation with accompanying voting designated ex officio in the chartering legislation, or

153 he could be selected by the board but with the stipu- for new development. The Federal agency could sell lation that he a government representative. improved or unimproved land directly to private While the corporation must be in a positionto developers. But, to the extent possible, it would make offer a reasonable prospect of dividendson stock land available to State land developmentor other investment, it might be desirable to provide that land appropriate agencies. for public purposes could be purchased from thecor- Since the urban development agency would be poration by an appropriate public agency at costor acquiring land which would subsequently be devel- at a stipulated markup. Land for private development oped and at least part of which would be sold to pri- could be sold at auction, at a calculated market vate developers, a portion of the operating costs of price, at a negotiated price, or on the basis ofa the agency would be self-liquidating througha revolv- design competition. ing fund. However, there might well bea net loss Itis assumed that the corporation would work involved in the land used for publicpurposes, so closely with appropriate public agencies through the periodic appropriations might benecessary. entire site identification, planning, and land acquisi- Development on land assembled and improved by tion and development stages. For example, it might the Federal agency would be undertaken by private cooperate with a State urban land development enterprise. The usual sequence of public and private agency or with local governments in providing cer- efforts would be reversed, howeverpublic landuses, tain types of water, sewer and other public facilities. public facilities, sewers, roads, public buildings, and It might work closely with the appropriate local juris- mass transportation stations and facilities could pre- diction both in specific site identification to conform cede and accompany private development, rather than with the latter's planning objectives and also on the follow it. Public initiative in planning and directing community design, master plan, and individual sub- the course and components of urban growth would division and site plans. The accomplishment of the thereby be increased and wasteful uses ofour most corporation's planning and design objectives foran valuable land resources could be discouraged. Ade- urban development project obviously would depend quate provision and opportunities for a wide variety of upon close coordination and a continuing working social, occupational, and income groups could also be relationship between the corporation and the local fostered. jurisdiction, since planning and land-use and develop- The Federal agency additionally could be empow- ment controls would be exercised by the latter. Judi- ered to undertake on its own large-scale urban and cious use of covenants by the corporation could be new community development projects. It might sup- used to preserve open space densities and architectural plement private efforts with a limited number of its design features that are incorporated in the develop- own projects. It could acquire land by negotiated ment plans. purchase or by transfer or purchase of Federal surplus A corporation could undertake land assembly and lands. It could initially develop several newcommu- improvement for a new community. It could also nity sites on strategically located Federal surplus lands undertake land assembly and improvement fora including, for example, some of the Bureau of Land multi-purpose town center or industrial park project. Management holdings now beingreclassifiedfor Finally, and in a like fashion, it would be able topar- urban use. It also could undertake large-scale urban ticipate in large-scale urban development within in- developments on purchased open land, on land corporated municipalities (new-towns-in-town)or on adjoining cities, or on a combination of open and the periphery of cities thatare expanding. cleared land within the borders of existing cities The other approach would entail a more direct establishing new-towns-in-town. Finally, the agency Federal involvement in urban land development and inauguration of a national effort' tc extend the urban might develop surplus Federal lands within cities renewal principle to new urban development. An lands which are being inventoried pursuant to an appropriate new or existing Federalagency would executive order of the President. The availability of be authorized to purchase and assemble land for urban such lands would reduce substantially the total cost development. The agency coulduse Federal financial of preparing them for urban uses, making it possible resources to acquire strategically located land and to give more emphasis to recreational, park, and other assure its availability for sound urban development. public open space. It would be able to buy land for expansion of exist- The agency could contract for water, sewers, streets, ing cities, for development ofnew communities, and site development and other land development meas- for rebuilding within cities. This approach then would ures for public facilities and low-income housing. Ini- be a Federal counterpart to, but extension of, the tial planning, building and housing codes, zoning, existing local urban renewal programs for 'redevelop- subdivision control, and other land-use controls could ing blighted areasincluding, however, vacant land either be exercised directly by the agency or existing

154 controls within the local jurisdiction could be certified tate an approach reflecting our needs,this foreign as meeting adequate standards. experience with new towns does illustrate what can ii. Financial Assistance and Incentives for New be accomplished. Community Development. An opportunity to com- A number of major problems associated with new bine more completely the advantages of large-scale community development, however, must be overcome urban development with other objectives of urbani- if they are to succeed. The large initial investment in zation policy is provided by balanced, diversified new land, land improvement, and the necessary amenities communities. If such new communities consist of rel- are so large and involve such heavy andextended car- atively large areas (at least 1,000 to 1,500 acres) ; un- rying charges that the developer's freedom to engage der a single or unified ownership, and management; in design and social innovation, in effect, is circum- with a projected population of at least 15,000 to scribed. Another hurdle is the need for early govern- 20,000 people of varying social, economic, and ethnic mental decisions regarding planning, land-use control, backgrounds; and if they are designed to provide em- and development of public facilities and services to ployment, social, cultural, and recreational features protect the public's and the developer's interest in the either within their borders or easily accessible to them; project. Furthermore, the effort to realize the advan- they provide an unparalleled opportunity to influence tages of relatively self-contained, large-scale develop- the patterns of urban development. By combining ment cannot be allowed to result in a separatism large enough areas under single management or which thwarts areawide government and goals pro- ownership, they greatly facilitate the realization of ducing a "hothouse" haven from broader areawide many of the planning and design goals of all large- program and finance demands. Finally, the endprod- scale development. uct must be attractive enough to draw varied and New communities provide a striking opportunity to diverse residents and industries to it. counteract the ill-effects of sprawl. They afford a The potential of balanced, diversified new commu- chance to break away from conventional develop- nities in the United States can provide the means for mental thinking and to try new arrangements. They demonstrating preferable kinds of urban environment, encourage new and greater flexibility in building confor demonstrating that such environments can be pro- struction, and land-use regulations. They hold prom- duced throughout the Nationnot solely in the con- ise of a market large enough to permit technological centrated metropolitan areas, and for demonstrating innovations which, in turn, encourages investment by that sprawl is not an inevitable by-product of our industry. They clearly facilitate the introduction of urban society. community-wide education, health, transportation and A number of objections to a broad policy of prefer- other public service functions. They permit the devel- ential governmental assistance for new community opment of governmental arrangements that can fos- developers can be raised, however, including: ter a sound growth patterna pattern that relates New community developers should be placed on harmoniously to surrounding developments. They give the same footing as any other large-scale developer, the chance of providing a wide and balanced range given the fuzzy attempts to differentiate between of housing for a diversified population. Finally, they them. can provide varying employment opportunities in The aesthetic and innovative design claims made service industries, manufacturing, and research and for new communities may or may not be desirable; development firms. but the real issue here is that no government should New communities present a dramatic opportunity engage directly or indirectlyin subsidizing prefer- to demonstrate contrasting kinds of urban environ- entially the personal developmental predilections of ment which can serve as models of what can be done private builders. to upgrade the life and living styles of urban residents. New community development, if given vigorous In this role, they can be significant, even if : ey are governmental support, could well lead to further few in number. Moreover, the enterprise of developing fragmentation of local government. an entire new community focuses public attention in The record to date with regard to new community a way that a series of separate and often unrelated development raises serious doubts concerning the development decisions cannot. quasi-authoritarian role that the developer and his Experience in Great Britain and other European consultants inevitably must assume during the initial countries illustrates what can be achieved with a ma- stages of the project; governmental policy should jor commitment to a new towns policy. Employment do nothing then to enhance this role. opportunities along with housing, recreational, cul- What few attitudinal surveys there are on the sub- tural, and commercial facilities have been provided ject indicate that new community residentslike within the borders of independent new towns. While most conventional subdivision residentsprefer an our institutions, traditions, and preferences will dic- homogeneous socio-economic community.

155 The basic issue before us is more homes for more prices and of heavy carrying costs. Local jurisdictions Americans, and the record to date indicates that or a State urban land development agency orauthor- the conventional builders and the conventional sub- ity would be in a position to install water and sewer division development are what most Americans lines and roads. prefer. Local public agencies, of course, would be eligible On the basis of experience to date and assuming an for various urban development grant programs from economic environment not drastically different from both the Federal and State governments to aid in fi- that prevailing in the past two decades, the Commis- nancing the facilities. State and local governments can locate public facilities, such as hospitals, airports, edu- sion concludes that the establishment of large new cational institutions, and public office buildings in planned communities with a balanced composition 14 State grant and is not economically feasible without significant gov- new communities and Federal and ernmental subsidy. This infeasibility stems from the other assistance is available to aid in their construc- investment costs resulting from the long period re- tion. Using the planning and land use and develop- quired for land assembly and improvement, and con- ment controls described elsewhere in this report local struction of utilities before revenue from the sale of jurisdictions could work closely with developers in applying innovative and efficient design approaches sites or structures is sufficient to provide a net profit. allowing mixed housing types and mixed uses while .1 governmental subsidy for new communities is justi- maintaining desirable density, open space, and other fied only in those instances where proposed projects will accommodate their pro rata share of low income featuresand all without the rigid constraints of existing zoning and subdivision control procedures. Such housing. A number of institutional arrangements which aids and assistance represent a substantial range of approaches and techniques to facilitate the implemen- could serve to foster and facilitate new community development by assembling and improving land for tation of an intergovernmental urbanization policy for urban uses have already been presented. Methods expanding existing cities and creating new communi- were also advanced for removing some of the land ties through combined public and private efforts. use and development regulation strictures and imped- For effective implementation of major urban devel- addi- iments to large-scale development and for facilitating opment and new community policy, however, their use as a positive encouragement not merely a tional financial assistance and incentives would be the acqui- regulatory device. Incentives to encourage individuals necessary, particularly in connection with and industries to locate in new communities when sition and development of large tracts of land. Private they meet the criteria of a rural growth center have new community builders, as we haveemphasized, been discussed. have found that the high initial land acquisition and Chapter IV identified a large number of existing development costs and the resulting carrying costs urban development grant, loan, and other assistance constitute one of the major factors constraining their programs that have direct application for new com- implementation of a total concept for a balanced and munities. If a decision is made by a State or locality diversified new community. Usually high site selec- to pursue a new community development program tion, market analysis, and long-range planning and vigorously, a combination of programs and procedures design costs are also associated with developing a already at hand, coupled with those discussed in this whole new community. One major effect of such re- report, would allow significant encouragement and straints has been to confine new community develop- housing assistance to private developers and investors seeking ment almost exclusively to middle income to enter this field. and above, increasingly undertaken by large corpora- State urban development plans related to a national tions with broad financial resources. However, it can urbanization policy, for example, could identify ap- be strongly argued that private developers should be propriate general sites for new 6ommunity develop- in a position to undertake major responsibilityfor which ment through use of planning techniques and applica- initiation and development of new communities tion of market analysis approaches. The background incorporate a complete range of housing types with analysis and. statistics would be available for a devel- price levels for residents with varying incomes. oper contemplating a new community. More detailed 11. Federal assistance for new community develop- site identification and additional analysis would be mentFederal low interest loans and tax incen- incorporated into local areawide plans. The State tivesunder certain conditions land development agency or other appropriate authority could acquire land and make it available either by The present Title X, Land Purchase andDevelop- competitive bid or negotiated purchase at reasonable ment Program, of the National HousingAct could be market rates as it was needed for development, thus expanded to: (a) permit direct low interest loans to relieving the developer of the risk of inflated land private developers of new communities; (b) increase

156 the total mortgage guarantee for any one project from portation, and other facilities FHA deems adequate $25 million; and (c) provide additional standards and and necessary. To qualify as a new community, the guidelines for the planning and development of eli- project also must provide substantial economies made gible new community projects to assure conformance possible through large-scale development and have to and furtherance of a national urbanization policy. adequate housing for those who would be employed A second approach to encouraging private develop- in the community or the surrounding area. Finally, ers to participate in new community projects meet- it must provide maximum accessibility to employment ing required standards and guidelines would involve centers; to commercial, recreational, and cultural fa- amendment of the Internal Revenue Code to provide cilities; and to any major central city in the area. the developer with the option of a more generous To realize its full potential in assisting large-scale, depreciation allowance, or a longer period (more urban and new community development, this pro- than the present five years) in which his losses may gram might be expanded to provide direct loans to be carried over, or both. private developers. New communities are risky ven- The standards and guidelines under either ap- tures at best. For this reason it is difficult to obtain proach must include the requirement that eligible conventional financing to get them started. A mort- projects provide low-income housing in the same pro- gage guarantee program, while helpful, might well be portion to total project housing in the new commu- inadequate to attract sufficient funds at an interest nity development as the proportion that low-income rate the developer could afford to pay. There are, in families bear to total State or metropolitan popula- addition, problems of keeping the administrative tion. Without such requirements, any governmental mechanism of a loan guarantee program abreast of subsidy to new community developmentsother than the developments in a volatile money market. For all mortgage insuranceis completely unjustified. these reasons a direct Federal low interest loan pro- The Secretary of Treasury should estimate the net gram could be more adaptable to the needs of the cost to the Government of the low-interest loans and new community developer. Based on experience in tax benefits and this amount should be included for several of the larger new communities, the $25 mil- informational purposes in the President's budget. lion upper limit for a single project is unrealistically Finally, the enabling legislation should bear an expira- low. For example, the total initial land and develop- tion date of a few (e.g., 3-7) years in the future so ment cost for Westlake Village, a 12,000 acre new that the Congress and the Executive Branch could community in California, was $42,000,000 and the assess costs and benefits of the subsidized loan and tax comparable cost for Columbia, Maryland, was $48,- benefit approach. 500,000 and for Laguna Niguel, California, it was Title X of the National Housing Act is the only $29,000,000. Federal legislation dealing directly with new commu- The bill for the Housing and Urban Development nities as such. It authorizes the insurance of mortgages Act of 1968 in Title IV, referred to as the New Com- to finance the purchase of raw land and its develop- munities Act of 1963, introduces a new type of credit ment as improved building sites by private developers. guarantee for private developersthe cash flow de- The maximum mortgage amount for any one land benture. In guaranteeing the bonds, debentures, notes undertaking is $25 million. The loan can constitute and other obligations issued by new community de- either 73 percent of the FHA estimated value of the velopers, the Secretary of Housing and Urban Devel- developed land or 50 percent of the estimated land opment could take into account the large initial capi- value before development and 90 percent of estimated tal investment required, the extended period before development costs, whichever is less. The maximum initial returns can be expected, and the irregular pat- repayment period is seven years or in the case of pri- tern of such cash returns, and administer the program vately owned water and sewage systems such longer to reflect these particular characteristics. The upper period as FHA deems reasonable. If the development limit for outstanding principal obligations guaranteed qualifies as a new community on the basis of a spe- for a single new community development would be cific finding by the Secretary of Housing and Urban $50 million. Requirements which must be met by a Development to the effect that it will contribute substantially to the surrounding economic growth of its project to be eligible include a plan and time schedule area, the period of the guaranteed mortgage can run for financing the land acquisition and development longer than seven years. costs and a comprehensive internal development plan In any case, the development must be character- that provides a proper balance of housing for families ized by sound land use patterns and be consistent with of low- and moderate-income and provides satisfactory a comprehensive plan or planning for the area in supporting facilities for future residents. which the land is situated. It must include or be The second approacha tax incentive that allows served by such shopping, school, recreational, trans- the new community developer a longer loss carry-over

157 periodcan also bea significant inducement to em- revenue effect must be available. For this reason, the barking on the enterprise. Currently,the developer Secretary of the Treasury should estimate annually can use the five year operating losscarry-over provi- the dollar amount of tax benefits. sion of the Internal Revenue Codeto wipe out the The question of standards adequate toassure that red ink during the lean earlyyears against the black public loan guarantees and tax incentives would be ink of later years. Thismay not be long enough, how- justified is a difficult one. Certainly the projects should ever, for this type of slow maturing business. be consistent with comprehensive plans forthe area The period between initial investment and there- in which they are located, be characterized by sound turn of profits from a completenew community devel- land-use patterns and include adequate retail, school, opment frequently extends over severalyears. Any un- recreational, transportation and other facilitiesas foreseeable lengthening of this unprofitablestage can presently required by the act. result in failure of the projector a serious compro- Additional standards should include the provision mising of its original design concepts. Frequently,only of housing to meet the needs of familieswith vary- the largest corporations withaccess to large financial ing income levels on a non-discriminatory basis.Other reserves can weather this stormy perioda circum- standards might include adequateopen space, pro- stance that restricts participation innew community vision for effective planning and land-use anddevelop- development projects. An extension of theloss carry- ment controls, and site selection reflecting availability over period in the specific case of new community of sufficient land suitable for developmentfor pro- development would acknowledge thatan averaging jected population trends and for the economiccompo- mechanism applicable to business generallymust be nents required to sustain the community. adapted to meet the exigencies ofa slowly maturing The public should have ampleassurance that the venture imbued with somewhatmore than the nor- tax incentives and loan program would not becomea mal content of public interest. continuing drain on the publicpurse unless they prove Large and medium-size corporations couldbe inter- effective. Accordingly, under either approach ested in participation in such development the leg- if the In- islation should provide that aftera five to seven year ternal Revenue Codewere amended to allow them more generous capital recovery allowances (depreci- test period, Congress and the Administrationassess the program's effectiveness and determine whetheror ation charges).While corporations engaged in diver- not it should be renewed. sified activities have the opportunitytc., offset unprofitable operations in one line againstprofits in another, 12. Enactment by Congress of legislation providing they may be reluctant to jeopardizetheir market position and the value of their stock for experimental new community buildingon by absorbing the federally-owned lands initial business losses thatcan be expected while the investment innew community development matures. As an alternative to amore broad-gauge Federal More generous capitalrecovery allowances could tip involvement in large-scale urban development,the the balance in favor of thenew community investment Department of Housing and Urban Development decision. could be authorized to undertakean experimental Tax incentives fornew community development to new community building program on federally owned be effective then must consistof both a lengthened lands. Such authorization could includethe power to loss carry-over period andmore generous depreciation construct or contract for the construction of public allowances, either of which couldbe exercised at the works and facilities; retail, commercial, andindustrial option of thenew community developer in accord- buildings; and apartments, townhouses, and other ance with his managerial judgment. Yet,care must multi-family and individual family houses. be taken to assure that publicobjectives are actually If the broader approaches outlined in itemten accomPlished and that the incentivesare used in such above prove unfeasible, amore modest proposal may a way that they do not cancelone another out. They well merit consideration. The building of experimen- must be made available selectively andonly to pro- tal new communities by the Department of Housing mote a national urbanization policy. and Urban Development on available public lands Under the losscarry-over option, the Federal Gov- would provide a good opportunity to produce signifi- ernment would forgorevenue it would otherwise cant standard setting models. They could serve to at- collect. Moregenerous depreciation allowances, how- tract the national attention and support required to ever, mean less revenue in thenear term but no loss sustain the development of a national urbanization in revenueover the long run. In order for Congress policy. By using available Federal lands for such a and the Presidentto evaluate the efficacy of thepro- national purpose, one of the major problems of new posed options a reasonablyaccurate estimate of their community development,thatof landassembly, 158 would be overcome. Moreover, maximum innovation their feasibility for new-town-in-town developments. would be available in the application of building, The components of a national policy dealingwith housing, land-use and other development controls. urban growth should be complementary to and guide The development of new technological and design State policies and programs. The Commission sug- approaches also could be encouraged. In short, this gests a number of measures for State consideration to proposal would provide an excellent opportunity to encourage and implement urbangrowth patterns con- develop true new towns, and in some cases new-towns- sistent with national and State plans and policies. in-town. Recommendation Five. Implementing State Pol- Earlier experience with Federal building of new icies Dealing With Urban Growth touns could be drawn on and their lessonsprofited from. The Greenbelt community experience, in par- The Commission believes that State governments ticular, should be reassessed and the government's have a role to play in influencing orderly urban failure to provide an adequate economic base and a growth. The following should be considered as useful carefully planned transfer of governmental jurisdic- approaches to the implementation of State policy tion to appropriate local authorities should be noted. regarding urban growth. Two current programs make this recommendation State assistance in making credit more readily particularly timely. The studies of the Public Land available for business and industrial location in Law Review Commission and the related Classifica- certain areas by establishing State and regional tion and Multiple Use Act provide the instruments industrial credit agencies; for identifying potential Federal lands for this pur- placement of State and local procurement con- pose and making them available. The recentPresi- tracts and construction projects to foster urban dential directive to identify Federal surplus land avail- growth in certain areas; able for urban development within cities will result assistance and guidance for urban growth through in the identification of other possible locations. the establishment of State and State-chartered While possible sites for an experimental new com- local land development agencies and State property munity development would obviously not be limited to tax deferral for new community development; public lands administered by the Bureau of Land State regulation of development along highways Management, the provisions of the Classification and and at interchanges where no effective local control Multiple Use Act (P.L. 88-607) coupled with the exists; studies of the Public Land Law Review Commission giving local governments the powers necessary to no doubt will serve to stimulate interest in landsavail- deal with urban growth by providing urban counties with appropriate governmental authority and able for urban development. The act authorizes the organization, by encouraging county consolidation, Secretary of the Interior to determine which of the and by granting municipalities authority to annex public lands administered by the Bureau of Land territory for new community development under Management are required for orderly growth and certain conditions; development of a community or are chiefly valuable authorizing localities to adopt new and strengthened for residential, commercial, agricultural, industrial, or land use and development ordinances and regula- public uses or development. At present, priority is be- tions such as official map, planned unit developing given to the identification of lands that are con- ment, and unmapped or floating zone ordinances tiguous to, or near, existing urban areas for possible and dedication or cash payment-in-lieu require- development or annexation. Nonetheless, tracts not ments for parks and school sites. contiguous to existing centers and therefore suitable for independent new community development; are A. INFLUENCING INDUSTRIAL LOCATION also being identified. The Public Land Law Review A number of Federal incentives to encourage indus- Commission has undertaken several studies which in- tries and businesses to locate in areas identified for ur- clude among their objectives the review of laws and ban development pursuant to national urbanization policies relating to Federal highway, airport, and policy have already been discussed. The focus at this demonstration cities programs and public lands, par- point shifts to the States, and rightfully so, since they ticularly in their implications for fostering new com- traditionally have been most active in general indus- munities. trial development programs. Yet, to be effective in In a recent memorandum, the President instructed furthering State and local urban development plans a Cabinet level task force to identify Federal surplus and policies, such programs must begin to be more land sites in other cities similar to the National Train- selectively applied. Few, if any, States are now admin- ing School site in the District of Columbia and study istering their programs in such a fashion.

159

1 1. Enactment of State legislation authorizing estab- stances to combine State industrial financingcapabili- lishment of State and regional industrial credit ties through appropriate pooling arrangementswithin facilities as means of providing additional sources the structure of an interstate compact or other type of credit for desired urban development of interstate agreement. The shortage of available funds for loans combined 2. Enactment of State legislation to authorize prefer- with an inability to carry the going interest rates in ence under specified conditions,in the award of certain areas may effectively deter business and in- public contracts dustrial firms from locating there. State industrial To further their urbanization policies, States can finance authorities, using appropriated and borrowed adopt legislation allowing a credit or other appropri- funds, have been used in a number of States to pro- ate preference in bids received for public contracts vide a source of borrowing to businesses and indus- from areas to which, according to legislatively speci- tries locating within the States. By offering loans at fied criteria, it is desirable to attract economic activity. lower rates, they could provide an additional and less States can use their public purchasing as an incen- costly source of credit for businesses locating in areas tive in achieving a pattern of urbanization within whose development would further State urbanization their borders conforming to their State urbanization plan objectives. The availability of loans from a State policies. If a State decides to follow such a policy, agency can serve to complement Federal loan guaran- then legislative criteria for determining eligible areas tee programs and can focus more directly on State would need to be consistent with the State urban de- urbanization policies. velopment plan, since they would have to be based State industrial finance authorities are of two types. on the kind of da ta and studies that go intomaking They may either guarantee industrial loans made by such a plan. The purchasing policy thus would be- private lenders or make direct loans of State funds to come a tool for implementing the State plan. industry. State authorities generally have been es- A specific legislative standard also would be needed tablished to provide types of credit which private in order to avoid possible challenge on the grounds lenders avoid. They make loans directly to borrowers of unconstitutional delegation of powers. The legisla- for special purposes or to support industrial develop- tive criteria, in essence, should indicate in which areas ment generally. They are generally financed either by population in-migration and economic growth are to full faith and credit borrowing or appropriations. The be encouraged. The criteria, for example, might be first program was established in 1955 in New Hamp- those embodied in urban growth policy adopted by shire. By 1967 there were 15 active State industrial the legislature. finance authorities and four more authorized. Maine Successful implementation of a preferential pur- and Rhode Island, however, account for about 90 chasing policy would require aggressive administra- percent of the dollar volume of loans guaranteed. tion, not only by State purchasing officials but also by The initial New Hampshire legislation also author- the State industrial or economic development agency, ized a direct loan program and by the end of 1963 if one exists. The purchasing agents would have to there were nine additional active State programs and pursue a positive policy of solicitingbids from the de- 14 authorized. Some of the direct loan programs are sirable growth areas. The development agency's role limited to joint lending with the Economic Develop- would be to seek out and encourage potential bidders ment Administration, while the others are not so re- in such areas to take advantage of their preferential stricted. Most of the direct loans go to manufactur- position. ing firms. Public guarantee and direct loan programs utilize 3. Establishment of State policies for locating public the financing authority of State governments to pro- buildings, activities, and facilities in furtherance vide credit at lower interest rates than industry ordi- of States urbanization plans narily can obtain from private sources. Since the This approach is the State counterpart of one al- State's credit stands behind such financing, the risk ready presented for consideration at the Federal level. to investors is minimized. As part of an overall program of commitment to a This type of financing could facilitate the location State urban development plan, the placement of pub- of industry in surplus labor urban neighborhoods and lic projects can be instrumental in fostering develop- in rural growth areas, where private capital is hesi- ment in conformance with the plan. tant to invest. It is particularly attractive to smaller Urban renewal and new-town-in-town projects can enterprises which are the most likely candidates for be developed around a nucleus of a government cen- the surplus labor areas. ter, civic buildings, educational parks, universities, Since surplus labor areas often encompass inter- hospitals, public housing, public transit facilities, and state areas, it would be advantageous in some in- other public projects. Such projects can be joint ef-

160 forts of Federal, State, and local governmentshence anticipation of future growth. Such efforts would be large enough to affect significantly the course and na- undertaken in accordance with and to implement a ture of urban growth in the State. State's urbanization plan. Sufficient administrative discretionin addition to B. LARGE-SCALE URBAN AND NEW the powers citedshould be assigned to the proposed COMMUNITY DEVELOPMENT State land development agency, so that specific ar- i. Large-Scale Urban Development. The States rangements can reflect the varying needs and objec- have a significant role to play in planning for and as- tives of different areas over extended periods of time. sisting in new large-scale urban and new community By providing adequate sources of financing coupled development. Possible actions are presented below for with authority to acquire land, and hold, improve, the consideration of Governors and State legislative and sell it for public or private purposes, the agency bodies as policies are formulated for implementing could become the basic instrument for marshalling the States urbanization plan. available public resources from all levels of government and relating them to one another and to private 4. Enactment of State legislation to provide for development efforts. The ultimate powers of such chartering State and localland development agencies then should be clearly defined and limited, agencies but they should allow some flexibility in choosing The establishment of State land development agen- among various alternatives so that the widest possible cies empowered to undertake large-scale urban and range of local government and private participation new community land purchase, assembly, and im- can be encouraged. The land development agencies provement would provide a major method of imple- should be empowered, for example, toassume re- menting State and local urban growth policies. Spe- sponsibility for project planning and design; landas- cifically, such agencies could:(1) acquire land by sembly and improvement; provision of public im- negotiation and through the exercise of eminent do- provements such as sewer and water lines and roads; main; (2) arrange for site development and construct preservation of parks, recreation areas, andopen or contract for the construction of utilities, streets, spaces; disposition of land to appropriate public agen- and other related improvements; (3) hold land for cies; and lease or sale of landor development rights later use ; (4) sell, lease, or otherwise dispose of land to private developers for residential housing, shopping or rights thereto to private developers or public agen- centers, commercial buildings and industrial parks. cies; and (3) charter local or regional land develop- They could also negotiate and cooperate in various ment agencies. All such powers should be exercised forms of participation by chartered local land devel- in accordance with, and in furtherance of, the State's opment agencies, regional agencies and other local urbanization plan. governments, and private developers. Where desirable, The establishment of State land development agen- they should be able to negotiate directly with large cies would provide a sound method of acquiring land developers or combinations of developers, atan early for future public and urban development usesthus stage, for purchase of unimproved as well as improved promoting a more orderly, efficient, and well-planned land and to cooperate with local governments which pattern of growth. It would help preserve for the pub- can assume responsibility for some of the land im- lic good some of the appreciation in value of one of provement and development. the nation's primary resources. The present pattern of Differing arrangements obviously would be appro- planning and land-use development controls, widely priate at different times and in differentareas. Where, dispersed as they are among numerous jurisdictions and for example, a strong urban county governmentex- private developers, has been inadequate to cope with ists, primary authority for planning and developing pressures placed on land in rapidly urbanizing areas. a project might well be exercised by the county in an Moreover these existing controls are basically designed overseeing role. Such a county also could exercise a to deal with problems in already built-up areas or range of planning, zoning, and land-use controls and problems created by gradual growth and accretion. provide appropriate facilities and services using the They have not produced satisfactory results under the financial resources available from Federal grant and extreme pressures of recent rapid urbanization. loan programs, the State urban land development The Commission in this report has discussed a corporation, and the county itself. number of ways to equip governments and private en- Alternatively, an areawide planning and develop- terprise for the monumental task of accommodating ment agency with sufficient powers could assume pri- future urban growth. One approach receiving increas- mary local responsibility. In still another situation, ing attention is State acquisition, development, "hold- where a rural area lacked a strong county government ing", and disposition of land around the fringes of or an areawide agency prepared to provide urban urban growth areas and at more remote key points in services, the State land development agency might

161 310-335 0 - 6 8 - 12 assume more direct tesponsibility for land acquisition East permitting the erection of a mill dam and the and for the other planning, improvement, and land consequent flooding of another's land, the construc- development functions. tion of private logging roads, altering watercourses to In its holding role, the State agency, in effect, could assist in private development of natural resources, and acquire strategically located land and retain it in a even the direct delegation of eminent domain powers "land bank" for future public or private development to some public utilities for the locations of lines and in accordance with the State's urbanization policy. facilities. In still another role, the State agency might work Several State courts have already accepted the with existing municipalities in developing areas des- broader view that the type of public use necessary tined for ultimate annexation or in new-town-in-town to justify the exercise of eminent domain powers ex- developments within the borders of municipalities. In tends not only to "use by the public" but also to "use order to avoid eroding the local property tax base for the public advantage" or "public benefit." Ac- during the holding period, States should provide for cording to this dictum, anything that "leads to the appropriate in-lieu payments to reimburse localities ..rowth of towns and the creation of new resources for for lost revenue. the employment of capital and labor, manifestly con- The agencies' operations could be financed, as ap- tributes to the general welfare and prosperity of the propriate, through direct appropriations, charges and whole community" and is encompassed by the con- rents, grants, sales of land, and borrowing, if author- cept of public use.15 ized. Borrowing authority could be granted on a reve- Particular care should be taken in drafting State nue basis in anticipation of land sales and rents. Reve- legislation authorizing the exercise of eminent domain nue from land sales and rent could provide a major powers by land development agencies to include a source of income and a significant part of the opera- clear and definite finding by the legislature that the tions of State land development agencies could beon acquisition of land for future development to assure a revolving fund basis after an initial appropriation the best possible use of a natural resource is a public of working capital, supplemented only as needed by purpose. Courts increasingly defer to legislative find- subsequent direct appropriations or borrowing. ings of public purpose. Such a finding, of course, The exercise of land purchase and eminent domain would be substantially buttressed by the presence of powers could face legal barriers in some States. Yet, State urbanization policy identifying certain patterns it is already clearly accepted in virtually all of the of development as being in the public interest. States that, where land acquisition through purchase ii. New Community Development. Many State or eminent domain involves clearing of blighted land i)rograms of assistance to local governments are or for subsequent sale to private developers, it isa pub- could be made available for new community develop- lic use and a permissible exercise of public authority. ment. A number of examples of such programs were Moreover, itis also accepted in nearly all of the discussed in a previous chapter. In addition, States States and in Federal urban renewal legislation that should consider removing from their constitutions and public acquisition may also include "...land which statutes those impediments which foreclose or limit is predominantly open and which because of obsolete the availability of local assistance programs to such planning, diversity of ownership, deterioration of new communities. structures, or site improvements, or otherwise, substantially impairs or arrests the sound growth of the 5. Provision of State property tax deferral for new community." These legal precedents in urban renewal community development provide a basis for a policy which asserts that planned The adoption of State legislation to temporarily re- urban development of vacant land to avoid subse- imburse developers for local taxes they pay on proper- quent blight and deterioration is as justified a public ty in a new community would ease the financial strain objective as the removal of blight and deterioration on private developers during the early stages of new after it has occurred. community development without undermining the Historically, there are a number of acceptedprece- local tax base. dents for the taking of open land for subsequent pri- Such reimbursement should be conditioned on certi- vate uses which appear to be no more compelling than fication by the State agency administering the State the objective of attaining a desirable pattern of urban urbanization plan to the appropriate State fiscal de- growth which incorporates the best possible current partment that the new community meets the standards design and practices and which seeks to avoid future of the plan. Among such standards, there should be deterioration. Earlier examples involvea number of the requirement that eligible developers provide low- instances that were justified by a showing ofa com- income housing in the same proportion to total pro- pelling economic need. These included condemnation jected housing in the new community development as for irrigation canals in the West, the mill acts in the the proportion that low-income families bear to total

162 State or metropolitan population. Further, the reim- has a character akin to earnest money to carry out a bursement should constitutea deferred liability of the contract between the State, the private developer, taxpayer to the State recoverable from him without local government, and even the Federal government interest when the property is sold, butno later than where it offers incentives for a new community devel- the expiration of the deferment period prescribed by opment. the legislature. One of the larger, unavoidable, out-of-pocket costs C. OTHER INTERGOVERNMENTAL MEAS- to new community developers is the local property URES FOR MORE ORDERLY URBAN DE- tax. Yet, outright exemption of such property from VELOPMENT local levies could severely strain local budgetsat a For national and State urban growth policies to time when local government is experiencing thegreat- succeed, local governmental institutions must be capa- est pressure to expand services and capital outlays. ble of guiding, supervising and directing urban growth States with their larger fiscalcapability can and and providing adequate services and facilities, both should assume a role here pursuant to their balanced in existing built-up areas and in emerging new urban urbanization policies. growth centers. Large metropolitan areas must devel- State reimbursement of local property taxes during op institutional arrangements which can govern and the initial development would alleviatea significant revitalize the densely populated central cities and sub- and often critical financial burden on thenew com- urbs, yet control the inevitable new growth in the re- munity developer and encourage completion of the maining unoccupied and cleared land as well as in project in accordance with originally scheduled high areas around the periphery. The smaller urban cen- standards. As the developer's investment begins to ters, small towns, and rural counties must prepare pay off through sales of property and appreciation in themselves to deal with an intensity and pace of urban values, the State can recoup its reimbursement. This growth which many have not faced before. tax deferral benefit obviously should be made avail- In terms of their role in guiding urban growth, able selectively and only to promote the State urbani- local governments must be equipped with new and zation plan. With this focus, tax deferral could be sharper toolsto exercise more initiative in urban made an effective yet inexpensive lever to promote land-use planning and regulation. Steps must also be the public interest while aiding private initiative. In takento develop effective operating relationships an effort to preserve open space and facilitate assem- among the various elements of the planning and land- bly of large tracts of land for development, a number use control process as well as among the units and of States accord farmland special treatment for assess- levels of government involved. Too frequently, sepa- ment purposes. This policy provides developers and rate elements are independently administered and en- those engaged in farming for livelihood equal privi- forced. leges. Compared to this approach, tax deferral as pro- The Advisory Commission has made numerous posed here is much to be preferred. recommendations in earlier reports to make local gov- It should be emphasized that there is no inconsist- ernment more capable of providing services, control- ency between giving a new community developer an ling urban growth, achieving effective and better co- extension of his loss carry-over period as discussed ordinated planning and land-use control as well as earlier in connection with Recommendation Number regulation.16 The new approaches described in this Four and deferring his property tax payments as here section should be considered against the background described. There is no "double-dip" in the accounting of these earlier Commission proposals, a description of sensethe developer accounts for his property tax which follows. liabilities on a cash or accrual basis just as he normal- Strengthening Local Government. The most overly would. Tax deferral simply changes the timing of riding fact for local governments today is that the the actual cash outlay to conform better with the de- forces of urbanization do not respect municipal, town, velopers cash flow position. or county boundaries. The consequences for local gov- In its previous reports, this Commission has noted ernments in urban and urbanizing areas are plain: repeatedly the lack of State involvement in urban af- municipalities acting alone cannot provide adequate fairs and the tendency of States to react rather than services and guide effectively the economic and social act on the vital public issues in urban development. forces of urban growth. The evidence is everywhere: The Commission here points to a specific instance air and water contaminants produced in one com- where States can channel urban development to spe- munity befoul neighboring jurisdictions; traffic gen- cific locations identified for growth in accordance erated in the suburbs is dumped into the central city; with a State plan. Short of a real investment, States location of a new highway in the suburbs draws busi- can hardly expect more than grudging compliance ness and industry away from the older, congested cen- with their urbanization program. This approach then tral city; housing and employment policies in one

163 part of the area complicate thesocial problems in areas, to stop the useof interlocal contracts that fos- others; and so on. In short, urban growth generates a ter fragmentation, and to reduceState aid to local standards of eco- greater interdependence whichgovernmental juris- governments not meeting statutory dictionsacting in isolationcannot effectivelydeal nomic, geographic, and political viability. primarily to with. The foregoing measures are designed The Commission has concluded from its previous enable government at the local level to copewith studies that States should make available, and public areawide problems and make it generally more capable officials and citizens at the local level should use, one of meeting growing public needs. Another dimension the or more institutional arrangementsthat permit deal- of government in metropolitan areas and, indeed, ing with areawide forces on an areawide scale.It has other side of the coin, is the need to allow meaning- recommended State authorization for: ful participation of citizens in the large cities and urban counties where the local government and adminis- areawide planning bodies, to enable establishment tration often appears remote and impersonal. Inits of a framework to guide public decisions that in- recent report on Fiscal Balance in theAmerican Fed- evitably overleap municipal boundaries; eral System, the Commission has recommended the es- metropolitan functional authorities, administering tablishment of subunits of government, representing such functions of an areawide nature as are ap- neighborhood residents, at the discretion of general proved by the voters (which could include urban units of government. These neighborhood units could development and new community projects) ; perform certain local governmental services, articulate transfers of functions between cities and counties the residents' viewpoints on broader programs, and when approved by the governing bodies of both; exercise limited fiscal powers. multi-purpose regional planning and development The Commission has proposed other steps to in- agencies in nonmetropolitan areas to undertake crease local governments'general capability, includ- physical, economic, and human resource programs ing: over multi-county areas; cooperation among local units through interlocal constitutional provision of residual powers, author- contracts and joint agreements; izing designated local units to exercise all powers not liberalization of State annexation legislation to al- expressly denied by State legislation; low cities to initiate annexation proceedings and legislative authorization of optional forms of mu- take away from residents of outside areas the pow- nicipal and county government; er of absolute veto of thoseproceedings; and authorization for counties to establish special sub- exercise of extraterritorialcontrol of planning, ordinate service districts within their borders to zoning, and subdivision regulation by municipali- provide different levels and kinds of service to areas ties where such county controls do not exist. having varying needs; State action to strengthen property tax administra- Recognizing the need for a continuing institutional tion; framework within which local officials can come to- State action to provide greater flexibility in local gether, discuss common problems, and cooperate in property taxing and borrowing powers; attempting to solve them, the Commission has en- State financial and technical assistance; dorsed the use of voluntary metropolitan councils of recognition of the State's responsibility for assist- governments. In the belief that residents of metropoli- ance to localities by establishmentof State offices tan areas may benefit from a formal mechanismand of local affairs or community development. procedure for examination of their intergovernmental problems, it has recommended legislation authorizing The Commission's previous proposals, in short, are creation of metropolitan study commissions with pow- rooted in the assumption that the forces of urbaniza- er to propose measures to thelegislature or the voters tion can be constructively channeled only by govern- for reorganizing existing institutional arrangements. mental structures and powers that are equal to the The Commission has also urged adoption of meas- task. They recognize that new institutional arrange- decision-making proliferation of governments ments are needed for planning and ures to forestall further which involve areawide issues and problems and that in urban areas. It has proposed stricter State stand- the citizens and officials of urban areas should develop ards for new incorporations within these areas, and and use such arrangements, tailored to their own has recommended local review agencies to supervise needs and desires. These Commission proposals offer the formation, consolidation and dissolution of spe- a range of approachesfrom which individual corn- cial purpose districts. Further, the Commission has munities can forge their own particular solutions, proposed that a State agency be authorized, subject ith the aid and encouragement of their State gov- to public hearing and court review, to consolidate or ernments. While many are directedprimarily to met- dissolve local governmental units within metropolitan ropolitan areas, they are applicable to smaller and

164 newer centers of urban grow th which are also suffer- special financial needs, while avoiding the prolifer- ing the strain of "spillovers" of costs and benefits be- ation of limited purpose special districts.18 tween and among individual local governments. New community development also stands to reap Some of the above alternatives for structural and particular benefits from easing rigid and often un- functional changes have particular significance for realistic tax and debt limits prescribed by State the control of large-scale urban and new community constitutions or statutes. Such limits are generally development and they warrant further elaboration : expressed as a percentage of the property tax base State or local agencies that are charged with re- or of current revenues or expenditures, neither of viewing the proposed formation of new municipal which is very large during the early stages of devel- corporations and special districts; 17 with assessing opment when capital outlay needs for new com- proposals for changes in local boundaries or juris- munity development are high. Relating long-term borrowing to the net interest cost of prospective dictional status; or with ordering such changes have particular potential for dealing with the govern- bond issues," and removing constitutional and mental problems of new communities. They can statutory property tax limits or restricting them to operating levies would give local governments the develop a body of precedents incorporating criteria for governmental organization. These criteria, de- greater fiscal flexibility they need to finance unusu- veloped from specific cases, could be supplemented ally large initial public investments in large-scale by special studies and research done on the agen- development." cies' own initiative. Together, the criteria and The Commission's endorsement of interlocal con- studies could provide a sense of direction for gov- tracts and agreements as a workable method of ernmental organization in urban areas. A recent meeting particular areawide problems also has par- report on California Local Agency Formation ticular relevance for an emerging new community.21 Commissions encourages them to develop county Using this approach, a State land development au- governmental plans in much the same way that thority could contract with county governments or county planning departments now prepare physical existing special district governments for the provi- development plans for these jurisdictions. sion of utilities. In new communities bordering or accessible to established cities, contracts for serv- Equally important, these State or local review agen- ices such as water and sewerage are also possible. cies could assume an interim "trusteeship" or "over- Where available, they might well influence a new seer" function during the development and transi- community's decision on whether or not to incorpo- tional stages of new communities. Such agencies rate. could also help to develop and approve the final status at the appropriate time. The interim guidance Mechanisms for Guiding and Regulating Urban and control could be initiated by provision for new Growth. If a national urbanization policy is to be community development in the agencies' govern- implemented at the State and local levels, efforts must mental plans referred to above. Continuing surveil- be made to bring planning efforts and development lance by the annexation and incorporation agency controls into closer harmony. As recently practiced, could help to assure the best arrangement for confor example, zoning has balkanized our cities into tinued growth under county jurisdiction or for the districts with precise and sometimes arbitrary bound- best timing of incorporation or annexation. It would ary lines. Zoning often is not related to any communi- help avoid premature incorporation or annexation ty plan, nor to other regulatory devices such as those undertaken on the initiative of a small number of mentioned above. Neither is it necessarily related to initial residents. Either of these can thwart the property tax assessment, which in turn, is not linked realization of the best of community plans. It has with any community plan. Moreover, community been suggested that in selected cases, immunity from plans, zoning, and land-use regulations are not neces- incorporation or annexation might be officially sarily related to regional or areawide plans; yet the acknowledgedfortheperiodofdevelopment implementation of many elements of regional plans through certification by the review agencyafter depends on local land-use regulation, controls, deci- presentation of the development plan, a public hear- sions, and enforcement. ing, and an airing of objections Land-use and development controls then must be viewed not only as negative regulatory instruments The proposal for authorizing counties to form spe. for accomplishing public objectives, but as a positive cial subordinate service districts within their bor- component of public participation in influencing and ders would be particularly useful whena large-scale giving direction to the urban growth of our nation. urban or new community development is slated to The major governmental determinants of urban de- occupy a portion of a county. Forming special areas velopment must also be planned and administered for such a development is oneway of meeting their with this positive goal in mindthe location and the

165 timing of public facilities, recreation and open space for development of areawide water supply and land, extension of water and sewer lines and facilities, sewage disposal plans (which could, and perhaps and highway building. should, be part of the general comprehensive area- The Advisory Commission has previously made wide plans where they exist).It also makes provi- several specific recommendations with these objectives sion for delineating areas where only community- in mind : wide systems could be used; areas where individual An important earlier recommendation dealt with systems could be installed on an interim basis; and local planning and zoning actions having an area- areas where such systems could be installed and used for an indefinite period. The community plans would wide influence. The Commission's suggested legislation implementing the proposal provides for county be required to provide for the orderly expansion and or regional areawide review of the following actions extension of community water supply and sewage taken by existing communities under a specified systems in a manner consistent with the area's needs. They would also stipulate "with all practical preci- population level :local planning, zoning, subdivision control, and official map regulations which sion" the portions of the area within which community systems might reasonably be expected within have an areawide impact. It also establishes direct five, ten, and more than ten years. With approval of exercise by counties or regional agencies of planning an areawide plan by the appropriate State agency, and land-use controls within newly created com- water and sewage systems not in conformance with munities until they reach a certain population size.22 it would be prohibited. Because of its emphasis on These provisions would have obvious relevance for timing of urban development and on relating the large-scale urban development, such as that in- provision of water and sewage facilities to urban de- volved in building new communities or major urban velopment plans, this proposal provides a major ele- expansions. ment in the "planning areas" procedure described In addition to highways, water and sewer lines in- in the ptevious chapter. volve decisions concerning location and timing of Against this background of previous recommenda- construction that provide a strategic lever to local tions, the Commission now submits further possible governments for influencing urban development. steps that States might consider in strengthening local Clearly, decisions regarding construction of these government's capacity to achieve more orderly urban improvements should be directly related to overall development, and in upgrading land-use and devel- urban development policy. opment planning and regulation. In a previous report, the Commission recommended that public officials in urban areas make greater ef- 6. Enactment of State legislation to strengthen county forts to increase public investment in urban water government by broadening powers and facilitating utilities, particularly for sewage treatment.23 It fur- consolidation ther recommended that comprehensive metropoli- In many areas counties constitute an existing unit tan-wide, watershed, and drainage basin water utility of government with appropriate geographic jurisdic- planning be undertaken in each metropolitan area; that this planning integrate the provision of water tion to serve urban growth areas. In such places, States and sewer services with other metropolitan functions can facilitate and encourage counties to fulfill their to insure economies of scale and to promote sound potential as areawide urban governments. To perform overall patterns of metropolitan development ; and as effective urban governments, however, many county that full use be made of water and sewage planning governments need improved structure and added pow- and development as a basic tool for directing overall ers. To this end, the Commission has already made urban development along desirable and orderly a number of recommendations, as noted earlier, in- lines.24 Finally, the Commission proposed legislation cluding voluntary transfer of functions between mu- to endow the appropriate State and local agencies nicipalities and counties and optional forms of county with regulatory authority over individual wells and government.26 Yet counties also need additional pow- septic tank installations with the objective of limiting ers that have particular relevance to regulating and their use to exceptional situations consistent with assisting large scale urban and new community devel- comprehensive land-use goals.25 opment. Such powers are especially critical for county To assist in implementing chese recommendations, governments, since they usually exercise sole govern- a suggested St', te act was developed in cooperation mental responsibility below the State level for the with the U.S. Public Health Service. The legislation, unincorporated territories where such development although basically designed to deal with public generally takes place. health and pollution control matters and more Coun les need the personnel and the organizational specifically the control of individual wells and septic structure capable of dealing with public development tanks, has much broader implications. It provides authorities, private developers, and other corporations

166 and agencies which may undertake new community thorization, but to a lack of motivation and resistance development. They should be in a position to exercise to change. Opposition is formidable from political planning, zoning, building code, land-use, subdivision forces, fearing losses in public office and influence, and regulation, and other powers associated with control often from commercial interests afraid of losing long- of urban growth, particularly in those areas outside established place-name identification. Yet, for those existing metropolitan centers which are experiencing areasparticularly ruralthat are beginning or about rapid urbanization. to begin to experience rapid urbanization, county con- A modified approach to new community develop- solidation might well provide the most workable area- ment depends upon the planning and development of wide approach to providing urban services, since it multi-purpose town centers incorporating retail,com- builds on an existing governmental structure. States mercial, cultural, educational and multi-family facili- through the use of incentives can take positive steps ties as generators of and a focal point for surrounding to encourage counties to merge. Such incentives might urban development. Such an approach, which is be- include payment to merged counties of a larger State's ing considered in several metropolitan areas of the share of the cost of State-county financed services, country, requires active and incisive participation by such as highways, education, or welfare, at least for local governmentgenerally the county--which has a certain minimum period of time. This kind of bonus land-use development regulatory authority. Success was authorized in Georgia to induce two or more local depends on the quality and effectivenes of planning, governments to undertake consolidation or joint ad- land-use development, and timing controls exercised ministration of particular functional programs. Addi- over the residential areas surrounding a town center. tional encouragement might come from State offices In addition, the acquisition of openspace can be of local affairs or community development, where used to identify the confines ofa logical area of growth they exist, offering to assist counties with the technical surrounding a town center, thus in effect outlininga and administrative problems involved in achieving potential new community.27 consolidation. Such assistance might be helpful, for As a first step toward coordinating land-use plan- example, in working out provisions for protecting the ning, capital improvements programming, and land- rights of employees, which is frequently an important use regulations, counties may wish to consider estab- step to avoid the opposition of employee groups to lishing planning areas which differentiateamong: any merger. (1) the built-up areas, (2) the developingareas that are in process of development or appropriate for de- 7. Enactment of State legislation to authorize munici- velopment in the near future, and (3) the ruralareas palities to annex territory for new community de- that are not appropriate for development in thenear velopment under certain conditions future. Other new and more flexible zoning and land- Under this concept, municipalities would be given use control techniques may also be used. One such de- the authority, subject to the approval of a State or vice is the designation of "unmapped"or "floating" localboundary commission or other appropriate zones, which provide for varying types of uses within agency, to annex contiguous or noncontiguous unin- the planning jurisdictionnot tied to specificgeo- corporated areas of sufficient size to be developed as graphic locations. Another involves planned unit and new communities. In connection with such authority planned community development ordinances which they could be authorized: (1) to establish subordinate introduce an element of flexibility fora whole devel- general improvement districts in order to relate the opment or community design, so long as overall den- costs and benefits of providing public improvements sities and ratios of residential to commercial and in- to the area annexed and (2) to give residents of such dustrial uses are maintained. Finally, counties could areas special representation in proceedings relating to acquire open space land for public purposes andur- land-use control and development of the area. This ban development and exercise development controls approach is not suitable in those States or metropoli- along highway interchanges, access roads, and rights- tan areas where the urban county has become the of-way. These devices are discussed inmore detail "chosen instrument" of local government. below. As long as undeveloped land still exists on or near Where the economic, social, and natural patterns the borders of cities and other incorporated units, of urban growth extend beyond a single county,con- there is a great potential for orderly growth by natural solidating counties may offer a feasible alternative to accretion through the traditional exercise of munici- superimposing an addition areawide level ofgovern- pal annexation powers. Yet, the laws of many States ment. The Commission realizes that in the past there have created several major impediments to the smooth has been little inclination and even less action leading functioning of municipal growth by annexation. One to county consolidations. Lack of progress generally impediment is the requirement that residents of the is not due to lack of constitutional and legislative au- area to be annexed approve the annexation. Another

167 is the reservation to such residents of the sole right to purely fiscal measure, municipalities should be author- initiate annexations. As a result, cities in many States ized to establish subordinate general improvement have been frustrated in their efforts to expand their districts within their borders to levy property taxes on boundaries and thereby achieve a degree of order in specific areas in order to service bond issues for pub- thegrowing edge ofurbanization beyondtheir lic works within such areas. This arrangement would borders. make it possible to insulate the existing developed city In response to this situation, seven States (Alaska, from liability for such financing and to assure that California,Colorado,Minnesota, New Mexico, the area benefited would bear the burden of repay- Washington and Wisconsin)in recent years have ment for benefits directly attributable to it. taken a variety of statutory approaches to liberalize At the same time, the annexed areas should be the annexing powers of municipalities and provide authorized to establish local councils representative more effectively for extending boundaries in accord- of the residents within the area, in order to give them ance with fringe growth, while at the same time a voice in land use and development decisions affect- protecting outlying residents against inequitable or ing them. Major land use measures applicable to the arbitrary action. These statutes involve modification area, such as comprehensive plans, zoning ordinances, of the exclusive power of unincorporated areas to subdivision ordinances and plats, and planned unit initiate annexation actions and then power to veto development proposals could be made subject to proposed annexations, but at the same time prescribe review and endorsement or rejection by the local rational standards that must be met to assure that council. Rejection could be absolute, subject to over- annexation is desirable and that the annexed area will riding by an extraordinary majority of the city coun- receive the benefits which absorption by a municipal- cil, or merely suspensive prompting reconsideration ity are presumed to bestow. and time for further review. In its 1961 report, Governmental Structure, Orga- Special area provisions such as these would be a nization and Planning in Metropolitan Areas, this way of meeting legislative criteria for assuring the Commission urged States to allow municipalities to area residents that service and financial arrangements initiate annexation proceedings, and to follow, where would be equitable. They would serve to facilitate appropriate to individual needs and circumstances, the transition and remove resistance to annexation. the example of States that have adopted legislation Some of the objections of the annexed area to being facilitating municipal annexations.28 absorbed into the large jurisdiction could be met by In addition States could give their municipalities the representative character of the local council. On authority to annex territory of a size large enough to the other hand, possible objections from the residents be developed as a new community, subject only to the of the city to assuming the burden of new public approval of a State or local agency established pur- works for the annexed area also could be met by the suant to statute. Residents in the territory to be improvement district approach. annexed would have no right to veto the municipally- While annexation is adaptable to any type of initiated action, but their interests would be safe- expansion of an existing municipality, it has particular guarded by the State or local agency. For this pur- relevance for building a new community. Such an pose, the statute should pmcribe criteria to be fol- approach provides the authority and institutional lowed by the agency to asst..% e that, for example, the arrangements through which existing cities can par- area is large enough to enns,itute a new community, ticipate in new community development in areas cur- and that the annexing municipality provides within rently outside of their borders, It offers an oppor- a specific time a reasonable level of municipal services tunity for cities to develop a coordinated plan for at a fair cost to the property owners resident in the renewal and rehabilitation within their borders cou- area at the time of annexation. pled with relocation and provision of additional hous- To minimize the difficulties of all parties concerned, ing in yet unoccupied areas. it would be desirable to establish cooperative proce- This annexation approach to new community dures whereby logical areas for new community development would be well adapted to the recently development would be identified by the cities, the proposed new concept of "skip annexation," which review agency, and local and areawide planning agen- serves as a method of allowing for planned expansion cies. To make further provision for an orderly transi- of a city completely enclosed by incorporated places. tion and integration of the new area into the existing Under this method a city could acquire noncontiguous municipality, the municipality should be authorized unimproved land. to establish subordinate general improvement districts "This new land area could then be used as a 'bank' and a for fiscal purposes and "local councils" to provide wide variety of attractive and well-planned residential and recreational facilities could be provided for current and future special representation for the annexed area on certain city residents in all economic and social classes as well as for matters regarding its physical development. As a commercial and industrial enterprises which seek more space

168 or new location. Construction and land ownership would be a problem arises from the fact that once established, matter for private enterprise except, of course, for public facilities. The older properties of thi inner city which would many of the uses are protected as nonconforming uses be vacated by individuals and firms moving into thenew land even when controls finally are inaugurated. area could be demolished and replaced by open space or by A national policy to deal with urban growth might more desirable structures according to an orderly plan.° well include policies designed to encourage industries to locate in certain areas. However, any such action 8. Enactment of State legislation authorizingan might intensify the problems described if adequate appropriate State agency to exercise development controls over highway interchanges and rights- controls are not provided in potential urban growth of-way areas along interstate and other main highways. As a means to assure such regulation where municipali- Highways, along with water andsewer lines and ties or counties do not exercise effective land use and facilities, are among the major determinants of the development controls at access points and along major locationof urban development.Publicdecisions highway rights-of-way, an appropriate State agency regarding the provision of these facilitiescan be a can be authorized to do so, pursuant to criteria and major method of channeling and influencing the standards set forth in the authorizing legislation. The timing of urban development. New communities agency might be the highway department or depart- have almost exclusively been locatednear major ment of community affairs, for example. interchanges on expressways. Those located elsewhere Decision as to whether local controls are effecti% e have experienced slower growth and frequently suf- probably would have to be left to an administrative fered financial difficulties. By a judicioususe of devel- agency, perhaps a local agency formation commission opment controls along highways coupled with an or the State planning body, but also pursuant to access policy related to areawide development plans, legislatively-prescribed criteria. Pre.vision should also public jurisdictions can exert a significant influence be made for counties and municipalities to appeal to upon development patterns. the courts on decisions declaring their controls not Highway planning clearly should be an integral qualified. If the decision were made by a local agency part of overall physical planning. The areawide plan- formation commission, appeal might be first made to ning requirement in the Highway Act of 1962 and a State agency, such as the State planning body, then the 701 program have been major stimulators of to the courts, Finally, the legislation should provide significant growth in State and local planning. Yet, for establishing or reestablishing local controls at highway planning should not become the tail that such time as the county or municipality showed readi- wags the dog. It must be a part of general areawide ness to exercise such controls at a level of effectiveness development planning, as is the case ina number of meeting statutory criteria. Whoever exercises control areas. When integrated with other physical planning over land-use and development at these highway and related to local land use and developmentpro- points should do so consistent with a State's urbaniza- grams, the total process of urban development can tion plan. be greatly strengthened. Special problems are created by the extension of 9. Enactment of State legislation to authorize new major limited access highways through therural types of development ordinances and regulations countryside. In suchareas,counties and smaller To make a number of new urban development tools municipalities normally do not have adequate land- available to local governments, States should consider use development, subdivision, and other controls to enacting enabling legislation authorizing local govern- regulate the increased commercial, industrial and ments to adopt the following kinds of ordinances and home-building activities generated by the highways. regulations to guide future urban growth: .11though the rights-of-way of Federal interstate highways are rigidly regulated, the areas immediately an "official map" reserving designated lands for beyond and particularly along the access road are specified periods of thne for a range of public uses, becoming dreary, unsightly, honky-tonk strip develop- includingstreets,publicfacilities,parks,and ments of the worst sort. The very rigidity of the high- schools; way controls generates clustering of motel, restaurant, a requirement for dedication of land by developers drive-in and other type of activities along the rights- for park and school sites or, at the local govern- of-way at access points and at interchanges. Further- ment's option, a cash payment in lieu of such dedi- more, highways also generate isolated, small, indus- cation; trial, warehouse and similar installations and subdi- "planned unit development" regulations to replace visions. The ten-story high filling station sign looming certain rigid conventional zoning standards with up above all the natural features of the countryside broad general standards, but with detailed admin- has become the symbol of such development. The real istrative review and approval of site plans;

169 "unmapped" or "floating"zones, which are defined reserve land for streets and in only 13 to reserve land in the text of a zoning ordinance butnot specifically for park and playground areas. In the other instances, located on the accompanying zoningmap. an official map is merely a specific indication of where These new techniquesare available to assist in fully the public uses are intended andserves no other legal realizing the potential of local land-use and develop- purpose. Since an official map authorization without ment programs emphasizing large-scale development, reservation provisions does not endow localities with such as planned neighborhoods andnew communities. substantially more authority than they have undera Several States have laws authorizingan official map general provision authorizing the adoption of physical which identifies and mayreserve in advance of actual development plans, States should consider adopting need (for a specified period of time), land forstreets, enforceable official map authorization applicable to all parks and other public facilities. major public uses. The three other techniques have been much less The absolute reservation should not extend foran widely adopted. About halfa dozen States specifically indefinite period. One approach, for example, isto authorize the adoption of the planned unit develop- require the institution of purchase proceedings by the ment (PUD) approach or one of its variants. Ina public jurisdiction within a stated period of time fol- number of other States existing zoning, subdivisioncon- lowing the filing of a preliminary plat, site plan,or trol, and other land-use and development regulations building permit request. Unless the reserved property appear to permit use of the PUD on the initiative of at is purchased or condemnation proceedings instituted least some of the local governments. PUD coordinates within a stated period, the property would then be zoning and subdivision regulationsat the predevelop- free of the official map reservation. ment stage, eliminating extra steps by considering all Mandatory Dedication of Public Facility Sites. Sub- aspects of development, from street widths to side- division control enabling legislation in most Statesau- yards, in a single site plan review. Theuse of un- thorizes local governments to adopt reasonable regula- mapped or floating zones permits identificationof tions and measures toassure that there will be ade- certain types of zones and the adoption ofapplicable quate provision for drainage, flood control, streets, standards without specifically locating theirmetes sanitary sewers, and other utilities. In most States, de- and bounds on a map. This providesa planning juris- velopers can be required to provide streets, curbs, gut- diction with greater flexibility in meetingspecific ters, sidewalks, sewer lines, water lines, and storm needs and adapting to current development whilestill drainage facilities to service theirown subdivision. providing predictability and guidance to potentialde- This is a proCedure which is analogous to the special velopers. Finally, requiring developers to dedicate land benefit assessments which are generally acceptedas a for neighborhood open space-park-recreation-school method of paying for facilities in buP &Alpareas whose sites as well as to provide facilities forstreets, curbs, benefits can be directly attributed to the immediate sidewalks, gutters, sewer and water lines, would help area. These provisions have been much less frequently to assure a sound pattern of facilities for urban devel- applied to land or open space, park and recreation facilities, and school sites. However, it isnow gener- opment. The potentialities of these fourare as fol- ally recognized that this type of public lows: open space is a vital feature of sound subdivision design and is as Official Maps. The adoption ofan official map necessary for the public welfare as the provision of specifically identifies andmaps future locations for physical facilities, such as streets andsewers. streets, public facilities, parks, playgrounds, and other A number of States have amended subdivisioncon- public uses and officiallyreserves the sites for future trol and enabling legislation to include authorization public acquisition. It is a major tool to assistgovern- for local governments to make reasonable provisions ments in directing urban development and providing for open space, recreation and school site land and to require dedication by the developers. One of the adequate services at a reasonable cost. Used incoor- dination with other appropriatemeasures as part of diffiiculties in adminiszcring such a provision is that small developments frequently will not include either an overall urban development program, it provides for enough total land or enough desirably located land the identification of areas slated for development in to dedicate to one of these purposes. To make thepro- the near future. By prohibiting or restricting develop- visions workable, therefore, it isnecessary that there ment within the areas needed for public uses it assures be included a provision for payment-in-lieu of dedica- that where negotiated settlementsare not possible, tion at the local jurisdiction's option. condemnation proceedings will avoid costly taking of Not only is this type of mandatory provision desir- structures and development. While over 40 States able on general principle, but putting iton this basis have some type of official map legislationon their will also eliminate one type of abuse that has crept books, in only 26 does it include the power to actually into subdivision regulation in a number of areas. Local

170 jurisdictions have frequently soughtand obtained of specific plans. It is particularly appropriate forap- "voluntary" dedication ofopen space, parks, and plication in developing areas. Lot-by-lot regulation school sites from developers in exchangefor approval under existing zoning proceduresmay be adequate of a rezoning and subdivision planrequest. This leads for controling development in built-upareas. It is to a number of inequities and discriminatoryprac- designed primarily to prevent theuse of one lot from tices. On occasion, higher densityuses are allowed injuring the presentor future use of an adjoining lot. in exchange for dedication of land bythe developer. Such regulation is probably inappropriate and unduly As part of a cluster developmentapproach this is a restrictive, however, forareas where development of widely accepted practice. When done independentof all lots occurs at approximately thesame time and the protections ina cluster development ordinance, is done by a single party. The planned unit develop- however, it is subject to abuse. ment approach allows the use of innovative, efficient, Compulsory dedicationor payment-in-lieu should and topographically-suited site and buildingpatterns generally extend only to theamount of land needed including mixed housing types and mixeduses where for neighborhood, park, recreation,and school use by these can be accomplished ina healthy, wholesome, the residents of anew urban development or commu- and attractive manner. nity. Under certain circumstancesa portion of the de- There are a number of variants to this approach. dication or payment-in-lieu might beincorporated They range from the broad generaluses as planned into a regional parkor facility as part of the overall apartment development (PAD) and planned housing administration of a dedicationprogram. In any case, development (PHD) to the much broader residential the standards to be used in determiningthe amount planned community (RPC)or planned community necessary to meet the general requirements should be development (PCD) approaches. While the specific based on the number and type of dwellings ina devel- scope of measures adopted may vary, the principle opment. The coanty should have the authorityto se- and elements remain the same. This approach allows, lect a particular tractor tracts for park and recrea- for example, a clustering technique in buildingtown- tion, open space, or schoolpurposes. Where an official houses or single-family houses by applyingan "average map exists and identifies sites for thesepurposes, the density" approach. The most topographicallyappro- dedication would, ofcourse, consist of the designated priate arrangement of units with maximum accessi- sites to the extent ofa developer's obligation. The lo- bility from streets and trunkwater and sewer lines is cal jurisdiction should also have the optionof decid- permitted if sufficientopen space is provided to pro- ing whether to require dedicationor payment-in-lieu. duce no more than theaverage required density. Fur- Since the purpose is to acquire appropriatelylocated thermore,appropriateneighborhood,commercial, land for neighborhood publicpurposes, a developer retail, and institutionaluses can be related to multi- should not be able to "buy out" of this obligation.The and single-family housinguses without adherence to payment-in-lieu approach should be used onlywhen rigid zoning district lines frequently establishedwell in a development is not large enough or when there is advance of_ actual development andnot necessarily no satisfactory site within the development. related to plans for a specific development. Planned Unit Development. The Commission's The reserved development unit (RDU) haspar- sampling of the land-use and developmentregulatory ticular relevance tonew communities, especially those provisions under which existingnew community devel- designed on a neighborhood, village, andtown center opments have been undertaken revealed that the sin- approach. The RDU is simplya planned unit devel- gle major technique most usedwas the planned unit opment which has tentatively been approved (without development approach. In onlya few cases were the der "2c1 plans) for a certainuse or uses. Generally provisions specifically designed for whole communities thi lesignation should be accompanied bya guideline or even specifically adopted with new communities in mind. However, this approach is particularly figure specifying what density the reservedarea might well accommodate in the future. Construction of other adapted for large-scale, planned developmentand is probably one of the most significantsteps dealing parts of the new community would take place before with land use and development controlsthat could the reserved area was developed. The filling in ofa be taken to encouragenew community development. designated reserve would occur when market demand The majordistinguishingcharacteristicsofthe and availability of capital dictated its development. planned unit development techniqueare that it com- The RDU would usually be for residential develop- bines zoning, subdivision control, and otherland-use ment. As in existing development control legislation, procedures to allow a developermore design flexibility intended use designation and major arterial routes while replacing the traditional, rigid, limited-usezon- might be required to be shown in the reservedarea ing districting standards with broad generalstandards plan. It should be thought of as a device to allow de- and with detailed administrative review and approval velopment following the building of other planned

171 unit developments and, subsequently, additionalcon- munity development. Theareawide or regional devel- struction within a planningarea sector. For example, opment plan would identifya number of possible construction in a high-intensity land-use area may multi-purpose centers andsurrounding community de- provide more jobs than residents of existing planned velopment. Underthe "planning areas" approach residential neighborhoodscan fill. The RDU would these potential siteswould be generally identifiedon a allow for newer, expanded residential neighborhoods comprehensive plan. The to house the additional residents. planning jurisdiction, however, would not on itsown initiative undertake to The RDU approach is applicable re- to all types of zone comprehensively all of the possiblemulti-purpose large-scale urban development. Because it is primar- center locations. Rather it wouldwait until a specific ily concerned with the reservation of landfor filling-in project was proposedat a specific location and then residential development it is applicabeto more con- effect an appropriaterezoning of that location. ventional large-scale developmentas well as new communities. CONCLUDING OBSERVATIONS Unmapped or Floating Zones. An unmappedzone is a zoning district set forth in thetext of a zoning Repeatedly throughout thisreport the Commission ordinance but not locatedon the accompanying map. has emphasized theintergovernmental dimensionsof This relatively new technique is well suitedto large- urban growth. The foregoingrecommendations for scale projects that could be located inany one of a developing and using coordinatednational, State, and number of locations.Itis particularly appropriate local policies call for developmentof a national policy for neighborhood, community, and regionalshopping and a reexamination of therole of multi-State region- centers where there will be onlyone of this type of al planning agencies. Anew and expanding role for use within a more or less well defined overallarea. It State government throughdevelopment of State urban may be known, for example, that a number of suitable development plans in consultationwith local govern- locations for large shoppingcenters can be identified. ment is recommended. The Conimissionalso suggests It would be unwise tozone all of these places for a number of measures that should beconsidered as such a use, however, sincesome may be too close to possible elements of national,State, and local urban one another for proper traffic patterns. Also, there- growth policies, includinglocational incentives,as- sult would be a scattering of commercialuses that sistance for large-scaleurban and new community de- could leave related commercially zonedland and other velopment, improving landuse and development surrounding lands undesirable forany use. Undertak- planning and regulation, andstrengthening local gov- ing a project atone of the possible locations, in other ernments to deal with urban growth.Collaboration words, could well eliminate several ofthe alternative with the private sector ofthe national economy ises- sites. sential to these governmentalefforts. This approach acknowledgesthe broad principal While the Commission believesthat the immediate underlying case-by-case rezoning: that zoninga spe- needs of our troubled citiesand metropolitanareas cific tract does notoccur until a developer or owner and poverty-Stricken ruralareas is pressing, attention takes the initiative to seek rezoning.Yet, it eliminates must also be given to the longerrange objective of two major weaknesses of the case-by-case approach. encouraging urban growthTatternsthat will, on the First, the floatingzone approach applies only to ap- other hand,conserve our national resources, while propriate types of zoning categories,that is, those providing maximum social andeconomic opportunity that contemplate onlyone such category in a rela- to all the citizens. With theestablishment ofa natively large area. There isno reason to have ordinary tional policy for guiding thelocation and character residential zones onan unmapped basis. Second, it of future urban growth involvingthe three levels of applies specific locational standardsin advance so government and the private sector, creativeoppor- that possible locationscan be clearly identified. tunities exist to provide alternativesto continued con- This technique would have particularusefulness in centration of people in existingdensely populated an area taking the multi-purpose center and surround- areas and to break away from the conventional thinking community developmentapproach to newcorn- ing and approaches to urban development.

Footnotes ' Fiscal Balance in the AmericanFederal System, Report No. A-31, October 1967, Volume Ibid., Recommendation No. 17. 2, Recommendation No. 11. 5 Intergovernmental Relations in the Poverty Program,Re- State-Local Taxation and Industrial Location,Report No. A-30, April 1967, Recommendation port No. A-29, Recommendation No. 5,pp. 169-170. No. 1, p. 80. " Governmental Structure, Organization and Planningin Fiscal Balance in the AmericanFederal System, op. cit., Volume 1, Recommendation No. Metropolitan Areas, Report No. A-5, July 1961,pp. 32-35. 21. Suggested legislation to implement this recommendationap- 172 pears in the 1968 State Legislative Program, September, 1967, Metropolitan Areas, op. cit., "Metropolitan Area Planning Commissions," pp. 39-40 and The Problem of pp. 412-421 Special Districts in American Government,Report No. A-22, A ltern a ti ve Approaches to GovernmentalReorganization May 1964, Recommendation No.1, pp. 75-77. in Metropolitan Areas, Report No. A-11,June 1962, pp. 34 38. "The Problem of Special Districtsin American Govern- ment, op. cit., Recommendation No. 8,pp. 82-84. Intergovernmental Relations in the Poverty Program,oP. 19 State Constitutional and Statutory cit., Recommendation No. 7,pp. 174-177. Restrictions on Local Government Debt, Report No. A-10,Recommendations No. Metropolitan Social and Economic Disparities:Implica- 3 and 4, pp. 75-82, tions for Intergovernmental Relations in Central Cities and ' State Constitutional and StatutoryRestrictions on Local Suburbs, Report No. A-25, January 1965,Recommendation Taxing Powers, op. cit.,pp. 6-8. No. 7, pp. 109-112. In December 1966, theSecretary of Labor " Governmental Structure, Organization, issued a revised regulation requiring State and Planning in employment se- Metropolitan Areas, op. cit., RecommendationNo. 3, pp. 24 curity agencies with jurisdiction withininterstate metropoli- 26. tan areas to establish procedures assuring that workersand " Metropolitan, Social and Economic employers within such Disparities: Implica- areas would have full access to job tions for Intergovernmental Relationsin Central Cities and openings and labor supply without regardto State lines. Suburbs, op. cit., Recommendation No. 10 See pp. 163-166. 2, pp. 94-97 and 1968 State Legislative Program, September, 1967,pp. 541-549. " Metropolitan Social and EconomicDisparities: Implica- " Intergovernmental Responsibilities tions for Intergovernmental Relations in for Water Supply and Central Cities and Sewage Disposal in Metropolitan Areas,Report No. A-13, Suburbs, op. cit., Recommendation No. 4,p. 99-104. October 1962, Recommendation No. " Ibid., pp. 104-107. 1, pp. 103-104. 's Ibid., Recommendation No. 3,pp. 108-111. " Building Codes: A Programfor Intergovernmental Re- Ibid., Recommendation No. 5,pp. 114-117. form, Report No. A-28, January1966, Recommendation 2" For the transfer of function Nos. 1-7, p. 83-97. recommendation see, Gov- ernmental Structure, Organization, andPlanning in Metro- " Providing for industrial, commercialand residential uses politan Areas, op. cit.,pp. 30-31. The Optional Charter including a range of housing pricesadequately broad to en- Recommendation appears in State Constitutional compass a pro rata share of low income housing in relation and Statu- tory Restrictions Upon the Structural,Functional, and Per- to the general metropolitanareas near which the new com- sonal Powers of Local Government, munities are located. Report No. A-12, p. 71. ' See Governmental Structure,Organization, and Planning 15 Nichols, The Law of EminentDomain, Section 7.2, p. 63. in Metropolitan Areas,op. cit., pp. 40-41. " For a list of Commissionrecommendations and references " Advisory Commission to source reports, see the brochure, The Advisory on Intergovernmental Relations, Commission Governmental Structure, Organization andPlanning in Met- on Intergovernmental Relations, May 1,1967.For draft State ropolitan Areas, op. cit.,pp. 21-24. legislation implementingmany of these recommendations, see '9 Kent Matthewson, "A Challenging 1968 State Legislative Program, New Concept: Skip September 1967. Annexation," The Nation's Cities, Vol.V, No. 10 (October, " Governmental Structure,Organization, and Planning in 1967), pp. 41-44.

173 Appendices*

APPENDIX IA CLASSIFICATION OF PEOPLE BY RESIDENCEDATA DEFINITIONSAND LIMITATIONS

The concept of "urban" has changedover the dec- (4)Unincorporated territory with a population ades. The Bureau of the Census has used varying density of 1,000 inhabitants ormore per square mile. bases at different times to define which part of the In 1950 and 1960, urban population also included population of the United States it deems urban and unincorporated places of urban density outside of which rural. The first distinction between urban and urbanized areas, if they contained 2,500or more inrural territories for classification of national popula- habitants. tion was made in 1874. "Urban" applied to cities of Census designates as "rural" all areas that are not 8,000 or more population until 1910 when the urban urban. A rural place then is not necessarilya farm; definition was lowered to include incorporated places in fact, most of today's rural population includesper- with a population of 2,500 or more. sons living in rural areas but working in non-agricul- After 1920, urban population expanded greatly in tural occupations. The "rural" grouping is divided the fringes surrounding larger cities into unincorpo- into two categories: "rural farm" and "ruralnon- farm," according to the character of the residence. rated territory, causing the urban population to be The concept of the Standard Metropolitan Statisti- understated under the traditional definition. For this cal Area (SMSA) is a further outgrowth of the general reason, in 1950, the Census Bureau introduced a new effort to define a city and its environs in an economic definition, "urbanized area", to provide a bettersepa- and social sense. Tht SMSA was established in 1950 ration of urban and rural population in the vicinity and has been used since then. Briefly, an SMSA is com- of larger cities. prised of one city with 50,000 inhabitants or more,or An urbanized area contains at leastone city of two contiguous cities with a combined population of 50,000 inhabitants or more in 1960,1as well as the 50,000, plus those adjacent counties which are "inte- surrounding closely settled incorporated places and grated" with the central, city.(In New England, unincorporated areas that meet the criteria listed be- towns are used instead of counties).In an economic low. All persons residing inan urbanized area are in- and social sense the basic determinant of whether an cluded in the urban population. outlying county is to be included is the percentage of In addition to its central cityor cities, an urbanized county residents who work in or around the central area contains the following types of contiguous areas, city or the percentage of city dwellers who work in which together constitute its urban fringe: the county. (1) Incorporated places with 2,500 inhabitantsor The SMSA's often include a great deal of land more which by any reasonable standard is not in urban (2) Incorporated places with less than 2,500 inhabi- "use." Their bcundaries adhere to county lines and tants, provided each has a closely settled area of 100 this usually instn es inclusion of considerable nonurban dwelling units or more land. The Duluth-Superior SMSA, for example, ex- (3) Towns in New England States, townships in tends to the Canadian border, encompassing much New Jersey and Pennsylvania, and counties elsewhere of the iron ranges of Minnesota, including a dozen or which are classified as urban so small mining cities and towns located 60 to 100 miles north of Duluth. The SMSA as a statistical tool *Apendices are keyed to the relevant chapters as follows: for measuring metropolitan character is clearly inac- IA, IB; IIA, IIB; etc. curate in these instances. 'There are a few urbanized areas where there are "twin central cities" that have a combined population of at least Cities are incorporated units of local government 50,000. whose boundaries are political. Cities do not neces-

174 sarily include all of the zontiguous areas of urban de- In addition to cities, municipalities may be char- velopment though they may at the same time include tered as towns, villages, or boroughs. Thereare some undeveloped terrizory. Since they have determined "city-county" units and "independent cities"(the boundaries they can grow by two means: by in- latter in Virginia) where the city does not belong to creased density within a fixed geographic boundary, or the county and, in effect, constitutesa separate coun- by annexation of adjoining areas that may be built-up tyunit. Finally, unincorporated urban-type places or mideveloped, or composed of both types of area. with a population of 2,500 ormore are classified as Much of the population growth If cities has been by urban. On the other hand, cities, boroughs, villages, amiexation-in fact, the population growth of some and towns with fewer than 2,500 inhabitantsare cities has resulted wholly from annexation in recent classified as rural, unless they happen to be included decades. within an urbanized area.

APPENDIX Urban Population as a Percentage of Total Population, by Regions,1870, 1910, 1950, and 1960

Region 1 1870 percent 1910 percent1950 (old defini 1950 (Current 1960 (old defini 1960 (Current tion) percent definition) 2 tion) percent definition) 2

UNITED STATES 25. 2 45. 7 59. 6 (64. 0) 63. 0 (69. 9)

New England 44.4 73.3 74. 8 (76.2) 75.1 76.4 Middle Atlantic 44 1 70. 2 74. 0 80. 0) 71. 0 80.9 Great Lakes 21. 6 52. 7 65. 7 69. 7) 67. 3 73. 0 Southeast_ 9. 5 19.4 42. 5 /42.5) 46. 3 52.1 Plains 18. 9 33.2 49. 9 52. 0) 56. 0 Southwest 6. 9 22. 5 55. 5 59. 2) 69. 8 72.4 Mountain 13.9 40. 7 51.8 (55. 6) 56. 0 65.0 Far West 31. 2 56. 0 62. 7 (74. 8) 68. 2 81.5

1 Regions as used here consist of the following groupings: Far West: Washington, Oregon, California, Nevada (Alaska and Hawaii excluded). New England: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Con- 2 The former definintion of "urban" included only persons living in incorporated necticut places of 2,500 or more. The current definition also includes unincorporated suburban Middle Atlantic: New York, New Jersey, Pennsylvania, Delaware, Maryland, District fringe territory and incorporated areas of less than 2,500 adjacent to larger cities of of Columbia. 50,000 or more population as well as outlying unincorporated, built-up areas of 2,500 Great Lakes: Ohio, Indiana, Illinois, Michigan, Wisconsin. or more. See Appendix I-A for a more detailed assessment of census definitions. Southeast: Virginia, West Virginia, Kentucky, Tennessee, North Carolina, South Caro- lina, Georgia, Florida, Alabama, Mississippi, Arkansas, Louisiana. Source: Harvey S. Perloff, Edgar S. Dunn, Jr., Eric E. Lampard, and Richard F. Muth, Plains: Minnesota, Iowa. Missouri, North Dakota, South Dakota, Nebraska, Kansas. "Regions, Resources and Economic Growth" (Baltimore, Md.: The Johns Hopkins Southwest: Oklahoma, "i'exas, Arizona, New Mexico. Press, 1960), p. 19. Table updated by ACIR. Mountain: Montana, Idaho, Wyoming, Utah, Colorado.

APPENDIX I-C The Distribution and Growth of SMSA Population inCeremiiCities and Outside Central Cities, 1900-1975

Total SMSA population ro.t.ent of SMSA popula- Central city population Percent of SMSA popula Outside central city gains Year (thowLnds) tion within central cities gains during previous tion outside central cities during previous decade decade (thousands) (thousands)

1900 31, 836 62. 1 37.8 1910 42, 012 64. 6 7, 357 35.4 3, 839 1920 52, 508 66. 0 7, 519 34.0 2,977 1930 66, 712 64.6 8,428 35.4 5, 776 1940 72, 576 62. 7 2, 403 37.3 3, 461 1950 88, 964 58. 7 6, 664 41.3 9,723 1960 112, 385 51. 4 5, 573 48.6 17, 848 1965 123,813 48.1 1 1, 882 51.9 1 9,653 1975 (estimated) 154, 286 41. 8 2 4, 779 59.2 227,136

1 Five year growth. Reports: Standard Metropolitan Statistical Areas," Final Report PC (3)ID. National 2 Not strictly comparable with figures for prior periods because 1975 covers 224 SMSA's Planning Association, "Economic and Demographic Projections for Two Hundred and prior years only 212 SMSA's. Twenty-Four Metropolitan Areas," Vol. III. Metropolitan Studies Center, Syracuse University. Source: U.S. Bureau of the Census, "U.S. Census of population: 1960 Selected Area

175 APPENDIX I-D

Population and Change for Territorial Aggregates, 1960-65 (Population in thousands(

Change, 1960-65 Percent of Population, Aggregate 1965 U.S. total U.S. total Number Percent population, population 1965 change, 1960-6

Total places of 10,000 or more 104, 218. 7 8, 242. 7 8.6 54. 0 60. 3 less 2,026.9 annexed (6, 215. 8) (6.5) (45. 5) Metropolitan central cities 58, 662. 6 2, 828. 9 5.1 30. 4 20. 7 less 901.6 annexed (1, 927. 3) (3.5) (14. 1) Suburbs of 10,000 or more 27, 719. 7 3, 929. 5 16.5 14. 4 28. 8 less 623.0 annexed (3, 306. 5) (13.9) (24. 2) Nonmetropolitan places of 10,000 or more_ 17,836.4 1,484.3 9.1 9. 2 10. 9 less 502.3 annexed (982. 0) (6.0) (7. 2) Total places u nder 10,000 _ 88, 981. 3 5, 434. 1 6.5 46. 0 39. 7 plus 2026.9 annexed (7, 461. 0) (8.9) (54. 5) Metropolitan remainders 33, 038. 4 4, 150. 2 14.4 17. 1 30. 3 plus 1,524.6 annexed (5, 674. 8) (19.6) (41. 4) Nonmetropolitan remainders 55, 942. 9 1, 283. 9 2.3 29. 0 9. 4 plus 502.3 annexed (1, 786. 2) (3.3) (13. 1) UNITED STATES TOTAL 193, 200. 0 13, 676. 8 7.6 100. 0 100. 0

Total central cities and suburbs over 10,000 86, 382. 3 6, 758. 4 10.8 44. 7 49. 5 less 1,524.6 annexed (5, 233. 8) (6.6) (28. 4) Total Rand McNally metropolitan areas 119, 420. 7 10, 908. 7 10.1 61. 8 79. 8 Total outside metropolitan areas 73, 779. 3 2, 768. 1 3.9 38. 2 20. 2

Source: Richard L. Forstall, "Population Change in American Cities, 1960-65," "Municipal Year Book, 1966" (Chicago, Ill.: International City Managers' Association, 1966) p. 32. APPENDIX I-E

Physician Visits per Year, by Sex, Age, Residence, and Family Income of Patients, 1963-64 1

Residence Family income

Sex and age of patients Total Outside SMSA's visits I nside Under $2,000 to $4,000 to $7,000 and SMSA's Nonfarm Farm $2,000 $3,999 $6,999 over

Total per 1 million population 844. 3 568. 3 237. 0 39. 0 92. 8 130. 6 263. 1 316. 9 By sex: Male per 1 million 356. 1 237. 7 100. 2 18. 3 31. 2 53. 9 112. 9 142. 0 Female per 1 million 488. 3 330. 7 136. 9 20. 7 61. 6 76. 6 150. 2 174. 9

VISITS PER PERSON Total 4. 5 4. 8 4. 3 3. 3 4. 3 4. 3 4. 5 4. 9 By age: 0-4 years 5. 5 6. 0 4. 7 3.6 3. 1 4. 6 5. 6 6. 8 5-14 years 2. 8 3. 1 2. 5 1. 8 1. 2 2. 0 2. 7 3. 5 15-24 years 4. 3 4. 5 4. 2 2. 7 4. 2 4. 6 4. 2 4. 4 25-44 years 4. 5 4. 8 4. 2 2. 8 3. 8 3. 8 4.6 4. 9 45-64 years 5. 0 5. 2 4. 8 4. 7 5. 2 4. 9 5. 1 5. 2 65 years and over 6. 7 6. 8 6. 7 5. 4 6. 1 6. 7 7. 0 7. 3 By sex: Male 4. 0 4. 2 3. 7 3. 0 3. 4 3. 8 3. 9 4. 3 Female 5. 1 5. 4 4. 8 3. 7 5. 0 4.8 5. 1 5. 4

1 Includes Alaska and Hawaii. Data are annual averages based on household interviews from July 1963-June 1964 and refer to the civilian noninstitutional population. Source: Vital and Health Statistics, Public Health Serv., Ser. 10, No. 19, U.S. Dept. Health, Education, and Welfare. APPENDIX I-F

Dental Visits per Year, by Sex, Age, Residence, and Family Income of Patients, 1963-64 1

Residence Family income Total Sex and age of patients visits Inside Outside SMSA's Under $2,000 to $4,000 to $7,000 and SMSA's $2,000 $3,999 $6,999 over Nonfarm Farm

Total per 1 million population. 293.7 216.1 66. 6 11. 0 16. 6 26. 1 85.2 151. 5 By sex: Male per 1 million 129. 0 95. 6 27. 9 5. 5 6. 7 9. 6 36. 6 70. 6 , Female per 1 million 164. 8 120. 5 38. 7 5. 5 9. 8 16. 5 48. 6 80. 9

4-,t VISITS PER PERSON It Total 1.6 1. 8 1.2 . 9 . 8 . 9 1. 4 2.3 By age: 0-4 years . 3 . 4 . 3 .1 .1 .1 . 3 . 5 5-14 years 1.9 2.2 1.4 1.0 . 9 . 8 1.7 2.7 15-24 years 2.0 2.3 1.6 1.1 1.3 1.1 1.9 2 8 25-44 years 1.9 2.1 1.4 1.5 1.0 1.1 1.7 2.4 45-64 years 1.7 1.9 1.4 1.0 .8 1.1 1.5 2.4 65 years and over . 8 . 9 . 7 . 3 . 5 . 7 1.0 1.5 By sex: Male 1.4 1.7 1.0 . 9 . 7 . 7 1.3 2.2 Female 1.7 2.0 1.4 1.0 .8 1.0 1.6 2.5

I Table includes Alaska and Hawaii. Data are annual averages based on household interviews f rom July 1963-June 1964 and refer to the civilian noninstitutionalpopulation. Source: Vital and Health Statistics, Public Health Serv. Ser. 10, No. 13, and unpublished data, U.S. Dept. Health, Education, and Welfare.

APPENDIX I-G

Average Family Expenditures for Medical Care, Value of Free Care, and Percentage of Families Reporting Expenditures and Free Care by Residence, 19611

Rural Total Urban Item Nonfarm Farm

Amount Percentage Amount Percentage Amount Percentage Amount Percentage reporting reporting reporting reporting

Total expenditure $345 98 $362 98 $297 98 $310 98

Prepaid care 91 72 94 75 83 66 83 63 Total direct expenditure 254 97 268 97 215 96 226 97 Hospitalized illness 49 24 50 24 43 25 57 28 Physicians' services outside hospitals 55 75 58 75 47 76 48 78 Dental services 47 57 53 58 32 52 31 55 Eye care 2 16 37 17 38 15 34 16 37 Other practitioners 3 5 3 5 2 5 4 8 Medicines and drugs 68 91 69 91 66 91 59 91 Medical appliances 4 34 4 35 3 33 4 32 Other medical care 3 8 20 9 21 5 16 7 14 Free care 34 24 36 25 30 22 22 13

Number of families reporting (in thousands) 55,306 40,131 11,663 3,512

2 Preliminary data. Detail may not adl: tu total because of rounding. Source: Jean L. Pennock, "Family Expenditures for Medical Care", paper presented 2 Includes glasses. at 43rd Agricultural Outlook Conference November 17, 1965, Washington, D.C. (Mimeo- 3 Includes nursing care in the home. graphed).

APPENDIX I-H

Number and Percent of Families With 1959 Income Under $3,000, by Place of Residence

Families with income under Families with income under $3,000 $3,000 Place of residence Placeof residence Number Percent of all Number Percent of all (thousands) families in (thousands) families in residence type residence type

In Standard Metropolitan Statistical Areas Outside Standard Metropolitan Statistical Areas

Total 4, 336 15. 1 Total 5, 314 32. 2

Central city 2, 602 17. 6 Urban 1, 513 23.1 Other urban 1, 112 10. 5 Rural nonfarm 2, 364 33.5 Rural nonfarm 489 17. 4 Rural farm 1, 437 49.2 Rural farm 133 33. 2

Source: U.S. Bureau of the Census. U.S. Census of Population, 1960. Selected Area Reports, Type of Place. Final Report PC(3)-IE,

177

310-335 0 - 68 - 13 APPENDIX II-A Statistical Results for Per Capita Expenditures and Various Explanatory Factorsin Ohio

Population, Population Population Population, Expenditure category Median Median 1960 density growth, 65 and over school years income II* 1950-60 completed

Total general (noncapital) - - O. 191 Highways (noncapital) _ - _ - - Police 0. 000-4 - - - -2. 11Z 0. 001-5 . 508 (2. 9252) (3. 4433) Fire (4. 6214) - - -0. 0226 - -1. 7091 . 0012 . 530 (2. 3390) (3. 6711) (5. 0793) Sanitation and sewerage _ -. 0495 - - . 0014 . 381 (2. 7275) (3. 1826) Parks and recreation -. 0502 - - -O. 5473 - . 0009 . 486 (4. 6430) (3. 1363) (3. 4303) General control -. 0001 -. 0142 - - - . 0004 . 189 (1. 7177) (2. 2453) (2. 5776)

The IP measures the percent of variation in city per capita expenditures explained factor is statistically significant. by the several explanatory factors taken together. - Indicates the relationship was not statistically signficant. Figures in parenthesis represent "t" values. A value greater than two, means the

APPENDIX II-B

Statistical Results for Public Employment and Various ExplanatoryFactors in Ohio

Population, Population Population Population, Median Median Employment category 1960 density growth, 65 and over school years income R2* 1950-60 completed

Full-time equivalent employment Full-time, common functions - - - 0.070 - - -0. 000-2 - -0. 00-74 0. 0000-04 .425 (2. 6967) Highways (1. 9816) (2. 2973) - - -. 00001 .232 Police (2. 1986) - . 0003 . 00001 .295 (1. 9646) - Fire (2. 3580) - - -.0004 _ -. 0201 . 00002 . 490 (2.7837) Sanitation and sewerage (2. 6136) (3. 8746) - - - _ . 0230 . 00002 . 070 (1. 8704) (2. 5188) Parks and recreation 0 0000003 - - - . 026 General control (2.2013) -0. 000005 - - (2. 0422) - - --

The W2 measures the percent of variation in city per capita expenditures explained Figures in parenthesis represent "t" values. A value greater than two,means the by the several explanatory factors taken together. factor is statistically significant. - Indicates the relationship was not statistically signficant.

APPENDIX

Statistical Results for Per Cgpita Expenditures and Various ExplanaioryFactors in Texas

Population, Population Population Population, Median Median Expenditure category 1960 density growth, 65 and over school years income 112* 1950-60 completed

Total general (noncapital) _ - - - 0. 027 Highways (noncapital) - _ _ - - Police - - - -0. 0016 - - - .299 (2. 0014) Fire 0. 00002 _ _ _ _ . 020 (2. 3138) - Sanitation and sewerage _ _ - - _ 0. 0017 . 004 Parks and recreation _ _ (1. 7328) General control - - . 079 _ _ _ .114

4' The Ii2 measures the percent of variation in city per capita expenditures explained Figures in parenthesis represent "t" values. A value greater than two, means the by the several exnlanatory factors taken together. factor is statistically significant. - Indicates the relationship was not statistically signficant.

178 APPENDIX II-D Statistical Results for Public Employment and Various Explanatory Factors in Texas

Population, Population Population Population, Median Median Employment category 1960 density growth, 65 and over school years income R2* 1950-60 completed

Full-time equivalent employment 0. 134 Full-time, common functions 0. 000000-2 . 288 (3. 5154) Highways - - - -0. 0170 - . 186 (2. 6622) Police 0000002 - - - - . 242 (2. 1262) Fire 0000004 - - - - . 047 (2. 3349) Sanitation and sewerage Parks and recreation - . 0000002 - - - .0-55 -.0000i . 149 (2. 1132) (1. 8586) (2. 4541) General control - - - -. 0067 - . 108 (1. 7457)

*The lirmeasures the percent of variation in city employment explained by the several factor is statistically significant. explanatory factors taken together. - Indicates the relationship was not statistically significant. Figures in parenthesis represent "t" values. A value greater than two means the

APPENDIX II-E Statistical Results for Per Capita Expenditures and Various Explanatory Factors in New Jersey

Population, Population Population Population, Median Median Expenditure category 1960 density growth, 65 and over school years income R2 * 1953-60 completed

Total general (noncapital) - - - 10. 2407 - - O. 350 (2. 7423) Highways (noncapital) - - +O. 0170 - - -O. 0011 . 211 (2. 2004) (1. 7477) Police _ - -. 0332 - . 251 (3. 1325) - - Fire - - -. 0309 - - - . 061 (1. 8176) Sanitation and sewerage - - -. 0379 - - - . 077 (2. 5286) Parks and recreation - -0. 0002 - 1. 5705 - - . 329 (1. 8199) (3. 5761) - General control ------

* The TV measures the percent of variation in city per capita expenditures explained factor is statistically significant. by the several explanatory factors taken together. - Indicates the relationship was not statistically signficant. Figures in parentheses represent "t" values. A value greater then two, means the

APPENDIX II-F Statistical Results for Public Employment and Various Explanatory Factors in New Jersey

Population, Population Population Population, Median Median Employment category 1960 density growth, 65 and over school years income R-2* 1950-60 completed

Full-time equivalent employment - - - 0. 0106 - -0. 00002 0. 393 (2. 2616) (1. 7769) Full-time, common functions - - 0. 0072 - . 283 (2. 5595) Highways _ _ - - . 046 Police - - -0. 0004 - - - .264 (2. 1444) Fire - - - - . 096 Sanitation and sewerage - - . 086 Parks and recreation - - - 0. 0138 - - .173 (2. 5063) General control - - _ -

*The2 measures the percent of variation in city employment explained by the several factor is statistically significant. explanatory factors taken together. - Indicates the relationship was not statistically significant. Figures in parenthesis represent "t" values. A value greater than two means the

179 APPENDIX IVA FEDERAL AID AVAILABLE FOR NEW COMMUNITY DEVELOPMENT

MORTGAGE INSURANCE FOR LAND subcommittee and was passed by the Senate. Title VI ACQUISITION AND DEVELOPMENT of the bill provided for establishing an Open Space and Urban Development grant program to v tate and This legislation had its inception in a 1961 Presi- local public bodies. Cr ants would be up to 25 percent dential Alessage, when President Kennedy called for of acquisition costs of land, but only for open space urban renewal loans to help local agencies finance use. Conversion to other use depended upon approval the acquisition of open space for future public or pri- of the HHFA Administrator and the substitution of vate development. He proposed that effective compre- other open land. hensive planning for metropolitanor regional devel- The Conference committee basically approved the opment be a prerequisite for such loans. Senate version. The land development insurance part Chairman Rains of the Housing Subcommittee of of the House bill was dropped. Chairman Rains the House of Representatives introduced the Admini- noted: "... wecarefully wrote in provisions to avoid stration bill to carry out the objectives of the Presi- speculation under this program. However, the Ad- dential Message. It provided for loans to State and ministration urged us to hold off on this section until local bodies for the advance acquisition of land for they had time to study it and come up with their own either public or private development. Loans would proposal." 1 usually not exceed ten years and carry the current It was not until 1964 that the President used the Federal interest rate. Land acquired. under the bill term "new communities" in calling for: (1) grants and was to be used in accord with comprehensive area- loans to State and local governments for construction wide plans. of public facilities in such communities; and (2) loan PriOr to the introduction of this bill (H.R. 6423), insurance for private developers constructing such fa- the proposed Housing Act of 1961 (H.R. 6028) had cilities. The Administration bill in the House (H.R. been introduced. It contained no provisions applicable 9731) proposed a new program of F.H.A. loan in- to new towns. However, the subcommittee prepared surance for private devel6pers of new communities to Amendment No. 7 "FHA. Insurance for Site Prepa- provide up to 75 percent of the value of the developed ration and Development," in time for the hearingson land. Specific plans would have to be approved by the H.R. 69,0. The amendment provided insurance for Administrator, and a range of housing assured. The private developers in a new Title Xto the Housing bill covered both land acquisition and land develop- Act. A revolving Land Development Insurance Fund ment. would provide funds to insure mortgages for land ac- The bill was suppor ted by the National Association quisition and development by private developers. of Housing and Redevelopment Officials, the Ameri- The Banking and Currency Committee reported can Institute of Planners, the American Institute of out H.R. 6028 with Title VII providing for land ac- Architects, the AFL-CIO, the National Housing Con- quisition by the public, bodies within their own urban ference, and others. Some opposition was voiced by area for open space. with possible future conversion the Mayors of Boston and Philadelphia, who feared to other than open space as generally provided by the proposal would make the rebuilding of downtown II.R. 6423; and with thenew Title X providing for areas more difficult. Strong opposition came from land development insuranceas generally set forth in the National Association of Real Estate Boards, the the earlier amendment to H.R. 6028. National Association of Home Builders, the Ameri- Subsequently, both provisions passed theI louse can Bankers Association, the Mortgage Bankers As- with opposition registered only to the provisioncon- sociation, and the U.S. Chamber of Commerce. cerning public agency participation. In the Senateno The Committee reported out a bill that contained action was taken on the Administration bill (S. 1478) no provisions for new communities and which merely by the Banking and Currency Committee.But, an- extended the Housing .'.ct for one year. The Housing other bill, (S. 1922), was reported out by the Housing Subcommittee feltthat "the complexity and far- 180 reaching nature" of the proposals required further an independent newtown." He felt that the mortgage study. The situation was much the same in the Sen- builder provisions would increase the numberof ate, except that a provision for loans to communities building sites, and that fair proportion of them for advance acquisition of land to construct public would be made available tc the small builder through works and facilities survived until Conference com- other provisions in the bill. He called for requirements mittee action. to be adopted by the FHA Commissioner to encour- In the first session of the 89th. Congress, 1965, the age broad participation bybuilders, and provision of Administration's bills in both Houses contained three the proper balance of housing for moderate or low- main provisions which could be applicable to new com- income families.3 munity development :(1) mortgage insurance for The second session of the 89th Congress, in 1966, private developers to cover land acquisition and im- added to Title X a new section applicable specifically provements; (2 ) loans to State land development agen- to new communities. Title X, as amended,authorizes cies for acquisition of open land for development as the FHA to insure mortgages for land development, neighborhoods, subdivisions, and communities ; and and encourage private developers to 'Guild large-scale (3 ) grants to local public bodies and agencies for ad- development and new communities. Mcrtgage terms vance acquisition of land for public works and facilities. were extended to thirty years for newcommunities. The House bill (H.R. 7984) was reported out of Improvements which may be financed with the pro- committee with the last two items omitted. In the ceeds of such mortgages include water lines and water Senate hearings, strong opposition to the loan pro- supply installations, sewer lines and sewage disposal vision to State land development agencies and grants installations, steam, gas and electrical line installations, to local public bodies for land acquisition and devel- roads, streets, curbs, gutters, sidewalks, storm drainage opment was registered by the Mortgage Bankers, lum- facilities, and other installations or work, whether on ber dealers, the Life Insurance Association of Ameri- or off the site of the mortgaged property. Tobe eligible ca, and the NAREB. The arguments of these organi- for Title X mortgaging, the FHA Commissioner must zations apparently were persuasive, as the Committee deem such improvements necessary or desirable to pre- report stated :"After very careful consideration and pare land primarily for residential and related uses or deliberation, the Committee did not approve the spe- to provide facilities for public or common use.4 cial aids for the development of new towns.... The new section 1004 permits mortgage insurance While the Committee believes that the provisions of backed by FNMA to be issued to private mortgagors the bill will be helpful in the development of eco- for the creation d "new communities," as defined by nomic and marketable subdivisions, it does not want certain statutory criteria. A development is eligible this program used for land development which would, as a new community if, in light of its size and scope, in fact create independent new towns.2 The Senate it will make a substantial contribution to the sound then adopted a bill similar to the House version adding and economic growth of the area in which it is lo- Title XMortgage Insurance for Land Development, cated. Thc "substantial contribution" criteria include: to the National Housing Act. 1. Substantial economies made possible through In summary, the groups opposing Federal legisla- large-scale development, and the provision of tion for new communities have seen various dangers improved residential sites. resulting from intrusion of the Federal Government 2. Adequate housing to be provided for those who into an area that they felt should be left to private would be employed in the community or the enterprise. Their arguments included the threats of surrounding area. price overstimulation, land speculation, and Federal 3. Maximum accessibility from the new residential land control; "federalization" of the Nation's com- sites to industrial or other employment centers, munities ; and the driving out of small builders. On commercial, recreational, and cultural facilities the other hand, the large city mayors have contended in or near the community. that such programs would divert money and attention 4. Maximum accessibility to any major central city from central city problems, and would further tighten in the area. the white suburban noose around their jurisdictions. Supporters of new community legislation feel that A new community proposal must actually contrib- the proposals represent ideas whose time has come ute to sound and economic urban growth and it must for realization. Senator Tydings, in the floor debate be shown that it will help create a more balanced during the first session of the 89th Congress, stated community and promote areawide development. The that in spite of the committee's edict, there a, "no project must be undertaken pursuant to .a develop- clear point at which a neighbbrhood is of such magni- ment plan and in accordance with a comprehensive tude as to be a subdivision and there is likewise no areawide plan, with participation by small builders obvious distinction in size between a subdivision and encouraged. Such a new community proposal also

181 must be approved by the local governing body of the payment out of user-revenue, as the various areas of area in which it will be located, and by the Governor the new community are completed. of the State. The total amount of outstanding mortgages to be WATER AND SEWER FACILITIES* provided for all new towns is limited to $250 million, with the program termination date set for October 1, The legal and financial difficulties in providing sew- 1972. In addition, no one project may be insured for age treatment and water supply for large blocks of more than $25 million. The loan is not to exceed 75 land not immediately adjacent to existing facilities percent of the FHA estimated value of the developed are seen by many entrepreneurs as being one of the land or 50 percent of the estimated land value before major problems in the development of new communi- development plus 90 percent of the cost of develop- ties. Several Federal and State grant and loan pro- mentwhichever is less. grams should prove helpful in resolving these limita- Finally, a project receiving Title X assistance may tions. utilize a host of other Federal housing and public fa- There are more Federal grant programs for sewer cility grants and loans. A number of these programs, and water facilities than for any other single activity used either in combination or separately, are presently except housing. Three agenciesthe Farmers Home available to assist new community objectives. Others Federal Water Pollution Control Administration (De- will require legislative amendment to be fully useful. partment of the Interior), and the Department of The program under Title X has been slow in Housing and Urban Developmentmake grants for getting underway. During the first 18 months of its sewer and water facilities. The FHA and FWPCA existence, only four loans, totaling $2,130,000, have issue grants to public bodies for sewage treatment been insured. All of the projects were too small (total- plants, HUD makes grants for water and facilities ing 634 acrei) to be called new communities. other than those covered by FWPCA, while EDA furnishes grants for all types of water and sewer fa- PLANNING ASSISTANCE GRANTS cilities within its development districts. The Basic Water and Sewer Facilities Program The Federal Planning Assistance Program wasau- (Section 702) of HUD provides grants to public thorized by Section 701 of the Housing Act of 1954. bodies to cover one-half of the cost for construction Revised most recently in 1966, this program provides of water treatment and distribution systems and sew- financial assistance to small communities, counties, age collection systems (sewage treatment plants are metropolitan areas, regional and statewide planning excluded). However,onlymunicipalitieswithin agencies for preparation of comprehensive develop- SMSA's are eligible for this assistance. ment plans. This program includes planning for land The FWPCA program provides grants to public use, transportation, community facilities, zoning and bodies for 30 percent of the cost of waste treatment subdivision regulations, long-range projections,pro- plants (including interceptors and outfall sewers), gramming and scheduling of capital improvements, with a 10 percent bonus provided if a local compre- and surveys of structures and sites whichare of histori- hensive planning program is underway. Appalachian cal or architectural value. communities are eligible for an additional 20 percent, While several of the local plans fornew communi- if proposed projects are approved by the Regional ties have been funded in part by the 701program, the Commisison. The Farmers Home Administration pro- 89th Congress specifically extended theprogram to gram provides a maximum of a 50 percent grant to local planning agencies in cases wherenew communi- any jurisdiction of 5,000 or less not adjacent to an ties are to be built on land approved for Title Xmort- urbanized area for the construction of water and gage insurance. Another 1966 amendment extended sewer facilities. Nonprofit corporations are also eligible Section 701b grant assistance to include research and for such grants. studies needed for revisions in State enabling legisla- Other Federal loan programs relating to sewer and tiona program that may be significant for States in water facilities should also be noted. The Farmers developing new community legislation or creation of Home Administration may, in addition to grants, State or local public development agencies. issue 10 percent loans for water and sewage treatment Finally, under Section 702 of the Housing Act, in- *The bill for the Housing and Urban Development Act of terest free loans can be made to public bodies for engi- 1968 includes as part of the provisions of Title IV, referred to as the "New Communities Act of 1968," authorization for neering and design of water and sewer facilities and supplementary grants to States and local governments carry- other public works. The advance is repaid by thegov- ing out new community assistance projects. Projects assisted ernmental jurisdiction when construction begins. For under the water, sewer and waste disposal facilities programs of HUD and FHA could be allotted additional grants of up new community purposes, the program might be to 20 percent of the cost of projects but in no case could amended to permit a staged or gradual repayment,or the total Federal grants exceed 80 percent of the cost.

182 plant construction to those communities eligiblefor cates of eligibility" for low-income people displaced the grant program. The loansmay be made for up by public projects who then have a priority for to a 40-year period, with 5 percent interestrates. New 221(d) (3) housing. However, these families cannot communities might be considered eligible recipients use these certificates in another communitya feature for program benefits. The PublicFacility Loans of of the program that could be amended to include HUD for public bodies within SMSA'scover all transferability to new communities regardless of loca- water and sewer facilities includingsewage treatment tion. plant construction. Private nonprofitcorporations are Recent amendments to the Public Housing Act of eligible, andcoverage has been extended to privately 1937 also contain provisions that could be usedto en- developed new community projects. TheAdvance courage low-income housing in new communities. The Acquisition of Land Program ofHUD provides rent supplement program permits subsidization of grants consisting of intereston loans incurred by pub- rents of selected low-income persons by payments to lic bodies which acquire land forpublic facilities. owners of dwelling units (real estate brokers, non- Such aid is limited to fiveyears. However, little use profit organizations, foundations) from whom housing has been made of thisprogram. is leased. The program is voluntary, and the local housing agency is not given condemnationor eminent HOUSING ASSISTANCE domain powers. For any new townor new community or any new The potential for new communities to demonstrate residential development which ispublicly or privately advanced housing styles and construction techniques built, the two most importantprograms of housing appears unlimited. Section 207 Demonstration pro- support are the widely used FHA Section203(b) grams make grants available to public and non-profit Basic Homeownership MortgageInsurance for single private bodies for development and demonstration of families, and the FHA Section207 Rental Mortgage new or improved techniques for providing housing Insurance for multi-family housing.Basically both for low-income families. While these grantsare for programs support middle-income housing. research and development rather than for construc- A key problem in financingnew communities is to tion, they could be combined with a low-income hous- find suitable methods of providinglow- and moderate- ing construction grant program. For example, thenew income rental and ownershiphousing in the early community of Reston, through its Foundation for stages of development to assurea good mix of housing Community Programs, Inc., received a Section 207 types. Usually, it is at this stage, beforerevenues for grant to develop a research program for low-income residential, commercial, and industrial landsales have housing. Part of the grant provides that 200 housing been received, that working capital issorely needed units be built under Sections 233 and 221 (d) (3). by the new community developerto meet his other The Experimental Housing Program (Section 233) large financial obligations. As thereturn on the sale provides mortgage insurance to back any existing FHA of land for low-income housing is minimal(assuming mortgage insurance program where innovative hous- that there is a relationship between landand improve- ing techniques or experimental property standards are ment costs), developers feel compelled to first build employed. It is often used with Section 221(d) (3) middle- and high-income housing. projects, and insures the homeowner or renter from There is general agreement that constructionof loss due to defects in the new building materials or low-income housing during the initialstages of the construction techniques used in the building. development program of thenew community will not In addition to FHA's 207 rental mortgage insur- occur unless special incentives or subsidiesare pro- ance and 203 single-family residence mortgage in- vided. Following is a description of severalFederal surance, there are other programs of Federal housing mortgage insurance and experimental housinggrants assistance for higher income groups. The Cooperative that might stimulate low-income housing innew com- Housing (Section 213) program may be initially spon- munities. The programsare selective and, in most in- sored by a private agency. For example, all the "Lei- stances, would require some amendment in orderto sure World" communities were financed under this be applicable to new community development. program. The mortgage insurance program for condo- Section 221 (d) (3) provides insuranceon housing minium housing (Section 234) is the same as for co- loans for both new construction and rehabilitated operative housing. Another possible new community housing at market and below-market interestrates input is the Section 231 program of mortgage insur- for low and moderate income families, with priority ance for the elderly, and the Section 202 program to for families displaced by urban renewal projectsor provide 50-year, 3 percent below-market interest rate other government programs. The FHA issues "certifi- loans to lower-middle-incomt elderly persons.

183 Finally, single-family programs in addition to the program might be used in its present legislative form Section 203(b) Basic Home Ownership Mortgage In- to assist States and municipalities in planning and surance include: the FHA Section 203(i) Mortgage building new commt 'ties. Grants may be employed Insurance for Moderately Priced Housing in Outlying for the outright acquisition of land or for purchase of Areas; the Farmers Home Administration (USDA) easements, both within and outside of the new com- Insured and Direct Home Loan Programs; and the munity tract. Hilly areas, marshes and low lands, Veterans Administration (VA) Home Loan Guaranty stream valleys, and other areas not suited to intensive and Direct Home Loan Program. All of these pro- development may be acquired for recreation purposes. grams favor higher income housing. FEDERAL REGIONAL PROGRAMS TRANSPORTATION ASSISTANCE A number of Federal programs available for new Title X requires that proposals include an efficient community development may be coordinated and transportation system within the new community, and supplemented by areawide regional agencies. The Ap- that the project be located near transportation facili- palachian Regional Development Act of 1965 au- ties linking the development to major central city and thorized a partnership program joining the Federal other regional employment centers. This underscores Government with 12 Appalachian State governments the importance of transportation in new community (Mississippi became the 13th State under the 1967 development. With few exceptions, communities now amendments).Some of the purposes for which Ap- in existence have located near major State or inter- palachian funds may be used include the construction state highways. of hospitals, educational facilities, libraries, airports, The Federal Government's long-standing regular sewage treatment plants, public recreationfacilities, and interstate highway programs, administered by the highways, and flood control projects. These federally- Department of Transportation contribute 50 percent aided projects are eligible for Appalachian supple- and 90 percent respectively to State construction costs. mentary grants of up to 80 percent of the total proj- In addition, every State has a complementary local ect cost. The Regional Commission is currently pro- aid program for roads and highways. However, mass viding planning funds for the development of a new transit only recently has received Federal attention town in Eastern Kentucky. with the establishment of the HUD grant-in-aid pro- The Public Works and Development Facilities Act grams of 1964. The research, demonstration, and de- of 1965, administered by the Economic Development velopment program for urban mass transportation Administration of the Department of Commerce, pro- pays 100 percent of the costs to State and local gov- vides for the eventual establishment of eight or nine ernment agencies. Columbia, Maryland, is receiving a multi-State regional bodies. Grants of up to 50 percent grant under this program for development of a mini- of project costs and loans of up to 100 percent of the bus system that would ease intracity commuting prob- cost of acquiring land and improvements forpublic lems and provide a model for possible adoption by works or public service facilities may be made to new communities elsewhere. States and localities to encourage industrial or com- Under the High-Speed Ground Transportation Act mercial expansion. Private and public nonprofit agen- of 1965 ( P.L. 89-220), the Department of Transpor- cies are also eligible for EDA assistance. Only projects tation may award contracts to public or private agen- in designated "redevelopment area" may receive Fed- cies, corporations, and other groups, for research and eral funds. New community developments in such demonstration projects in high-speed ground transpor- areas would be eligible for grantassistance under the tation. Certain types of new community designssuch Act. as the linear closed circuit concept of Alcoa of Can- adarequire the type of transportation system this OTHER FEDERAL PROGRAMS program would support. Airports. The Federal Airport Act of 1946, as OPEN SPACE ASSISTANCE amended, provides 50 percent cost grants for land acquisition, site preparation, construction, facilities, At the Federal level, the Land and Water Conser- and installations to public agencies for the planning, vation Fund Act of 1965 authorizes the Department acquisition, and development of public airport and of Interior to make grants-in-aid to States and locali- heliport bites as part of a nationwide system of public ties for planning, acquiring, and developing outdoor airports. Normally, State, county, municipal, and recreation areas and facilities. A statewide outdoor other public agencies are eligible if their airport re- recreation plan is a prerequisite for assistance. This quirements are included in the National Airport Plan.

184 Outlying large new community developments, whether declining basis of grants for staffing the facilities is under private or public sponsorship, should be eligible especially appropriate, as assistance could be programfor such assistance. For example, the growth of the med to phase out as the new community increases in new community of Lake Havasu City, Arizona, was size sufficient to fully support the facility. greatly facilitated by early acquisition ofa surplus The HUD Public Works and Facilities loanpro- military airport which had been improved toaccom- gram may be used for land acquisition, thereby sup- modate commercial aircraft. plementing Hill-Burton program, which does notpro- Educational Facilities. Under the Higher Educa- vide assistance for land acquisition. At the present tion Facilities .z1ct of 1963, public and private colleges time, only public agencies are eligible for this joint and universities are eligible for grants of HUD-HEW program. For full use in new communi- up to 40 ties, amendment to the HUD program might be de- percent of project cost for public community colleges sirable to extend eligibility to qualifiednew communi- and public technical institutes, and up to 33-1/3per- ty private corporations for purchasing land for hos- cent for two-year private institutions and four-year pitals. public and private institutions. Grants and loansmay The Housing and Urban Development Act of 1965 be used to finance the construction of the academic authorized a Neighborhood Facilities Grant Program facilities of institutions that need to expand theiren- to provide financial and technical assistance for the rollment capacity. The program could apply to the development of centers for health, recreational, social, establishment of extension colleges in new communi- and other community services and activities toserve ties. low and moderate income persons. Eligibility is lim- The Adult Education Act of 1966 (Elementary and ited to public bodies or agencies, but nonprofit groups Secondary Education .1mendment, Title III) pro- may contract with public agencies to own or operate vides grants to State educational agencies for support facilities. Facilities may be created by new construe- of State programs that furnish instruction below the tion or by the acquisition, expansion, or adaptation college level to persons 18 years old andover who of existing structures. While the program is now have not attained a high school education. This pro- focused on existing cities, amendment might be de- gram has relevance to the rural outlying new com- sirable to permit new community eligibility where munity because it helps local educational agencies to substantial low and moderate income housing is being establish programs and pilot projects. Such projects built. could be coordinated with the adult education com- Federal Surplus Property. Another Federalpro- munity systems that now are being planned for the gram of significance to new community development privately developed new communities of Maumelle, in certain areas is Ithe Federal Property and Adminis- Arkansas, and Litchfield Park, Arizona. trative Services Act of 1949, authorizing disposal of Medical and Neighborhood Facilities. The Hill- real property no longer required for Federaluse. Burton program, as revised and extended by the Hill- Transfers can be made to States and localgovern- Harris Amendments of 1964, allows project grants of ments for a variety of public purposes, including new 50 percent to hell) develop comprehensive, regional, communities, before such lands are placed on sale in metropolitan, and local area plans for health and re- the open market. The new community of Maumelle, lated facilities. The State agency may conduct the Arkansas, is being developed on a 5,500 acre tract planning studies, or they may be made by local public formerly occupied by a World War II shell loading or nonprofit agencies recommended by the State plant. agency and approved by the Public Health Service. Federal Business Loan Assistance. The Small Busi- Under the latter arrangement, States could commit ness Investment Act of 1958, as amended, provides planning funds to assist in the development of hospital loans under the small business financial assistancepro- or nursing home facilities for a new community. gram to businesses to assist in planned construction, The Mental Retardation Facilities and Community conversion, or expansion. Nonprofit enterprises, specu- Nkntal Health Centers Construction Act of 1963 lative property firms, and financial lending institu- provides construction grants to States, other public tions are excluded. Loans may also be used for the agencies, and private nonprofit organizations for con- purchase of equipment,facilities,machinery, and struction and initial staffing of community health cen- supplies. This program might be used to assist manu- ters. Closely cooidinatecl with the Hill-Burton pro- facturers and businessmen to rdocate into new com- gram, this program is designed to serve local needs, munities that have an excellent natural site potential and apiwars well adapted for inclusion in new com- but insufficient market potential initially to lure busi- munity plans or State plans for new communities. The nesses and manufacturers to the site.

185 Footnotes U.S. Congress, Congressional Record, 87th Congress, 1st 3 U.S., Congress, CongressionalRecord, 89th Cong., 1st Session, Vol. 107, Part 9, p. 11528. Sess., Vol. III, Part 12, pp. 16955-56. U.S., Congress, Senate, Committee on Banking and Cur- U.S., Department of Housingand Urban Development, rency, Housing and Urban Development Act of 1965 ; Report Land Development HandbookforTitle .X Mortgage ...To Accompany S. 2213 together with Minority Views. Insurance.

186

U.S. GOVERNMENT PRINTING OFFICE:1968 0-310-335 PUBLISHED REPORTS OF THE ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS 1

Coordination of State and Federal Inheritance, Estate and Gift Taxes. Report A-1, January 1961. 134pages, printed. Investment of Idle Cash Balances by State and Local Governments. Report A-3, January 1961. 61pages (out of print; summary available). Investment of Idle Cash Balances by State and Local GovernmentsA Supplement to Report A-3. January 1965.16 pages, offset. Governmental Structure, Organization, and Planning in Metropolitan Areas. Report A-5, July 1961. 83pages; U.S. House of Repre- sentatives, Committee on Government Operations, Committee Print, 87th Cong. 1st Sess. State and Local Taxation of Privately Owned Property Located on Federal Areas. Report A-6, June 1961. 34pages, offset (out of print; summary available). Intergovernmental Cooperation in Tax Administration. Report A-7, June 1961. 20 pages, offset. Periodic Congressional Reassessment of Federal Grants-in-Aid to State and Local Governments. Report A-8, June 1961. 67pages, offset (reproduced in Appendix of Hearings on S. 2114 Before the U.S. Senate, Subcommitteeon Intergovernmental Relations of the Committee on Government Operations. January 14, 15 and 16, 1964. 88th Cong. 2d Sess.). Local Nonproperty Taxes and the Coordinating Role of the State. Report A-9, September 1961. 68 pages, offset. Alternative Approaches to Governmental Reorganization in Metropolitan Areas. Report A-11, June 1962. 88pages, offset. Intergovernmental Responsibilities for Water Supply and Sewage Disposal in Metropolitan Areas. Report A-13, October 1962. 135 pages, offset. Transferability of Public Employee Retirement Credits Among Units of Government. Report A-16, March 1963. 92pages, offset. *The Role of the States in Strengthening the Property Tax. Report A-17, June 1963. Vol. I (187 pages) and Vol. II (182 pages), printed. ($1.25 ea.) Industrial Development Bond Financing. Report A-18, June 1963. 96 pages, offset. The Role of Equalization in Federal Grants. Report A-19, January 1964. 258 pages, offset.

Impact of Federal Urban Development Programs on Local Government Organization and Planning. Report A-20, January 1964.198 Pages; U.S. Senate, Committee on Government Operations, Committee Print, 88th Cong., 2nd Sess. Statutory and Administrative Controls Associated with Federal Grants for Public Assistance. Report A-21, May 1964. 108pages, printed. The Problem of Special Districts in American Government. Report A-22, May 1964. 112 pages, printed.

The Intergovernmental Aspects of Documentary Taxes. Report A-23, September 196. 29 pages, offset. State-Federal Overlapping in Cigarette Taxes. Report A-24, September 1964.' 62 pa6es, offset. *Metropolitan Social and Economic Disparities: Implications for Intergovernmental Relations in Central Cities and Suburbs. Report A-25. January 1965, 253 pages, offset. -Relocation:Unequal Treatment of People and Businesses Displaced by Governments. Report A-26, January 1965. 141 pages, offset. Federal-State Coordination of Personal Income Taxes. Report A-27, October 1965. 203 pages, offset. Building Codes: A Program for Intergovernmental Reform. Report A-28, January 1966. 103 pages, offset. *Intergovernmental Relations in the Poverty Program. Report A-29, April 1966. 278 pages, offset. ($1.50) *State-Local Taxation and Industrial Location. Report A-30, April 1967.114 pages, offset. (600) *Fiscal Balance in the American Federal System. Report A-31, October 1967. Vol. 1, 385pages offset; Vol. 2, Metropolitan Fiscal Disparities, 410 pages offset. *Urban and Rural America: Policies for Future Growth. Report A-32, April 1968. Factors Affecting the Voter Reactions to Governmental Reorganization in Metropolitan Areas. Report M-15, May 1962. 80 pages, offset. *Measures of State and Local Fiscal Capacity and Tax Effort. Report M-16, October 1962.150 pages, printed. ($1.00) *Performance of Urban Functions: Local and Areawide. Report M-21, September 1963. 281 pages, offset. ($1.50) State Technical Assistance to Local Debt Management. Report M-26, January 1965. 80 pages, offset. *A Handbook for Interlocal Agreements and Contracts. Report M-29, March 1967.197 pages, offset.($1.00) Metropolitan America: Challenge to Federalism. Report M-31, August 1966.176 pages, offset. Metropolitan Councils of Governments. Report M-32, August 1966. 69 pages, offset. 1968 State Legislative Program of the Advisory Commission on Intergovernmental Relations. Report M-35, September 1967. 629 pages, offset. Annual Report, Ninth. Report M-36, January 1968. 43 pages, offset. *State and Local Taxes, Significant Features, 1968. Report M-37, January 1968. 212 pages, offset. ($1.00) State Legislative and Constitutional Action on Urban Problems in 1967. Report M-38, May 1968. 29 pp. mimeographed. New Proposals for 1969: ACIR State Legislative Program. Report M-39, June 1968.

1Single copies of reports may be obtained without charge from the Advisory Commission on Intergovernmental Relations, Washington, D.C. 20575 *Multiple copies of items may be purchased from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402. G P 0 860.530